Document:

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                                                                    EXHIBIT 10.2

                             DEL MONTE FOODS COMPANY

                            1997 STOCK INCENTIVE PLAN

                          (AS AMENDED OCTOBER 21, 1999)

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1. Purpose of the Plan

         This Del Monte Foods Company 1997 Stock Incentive Plan is intended to
promote the interests of the Company by providing certain employees of the
Company, who are largely responsible for the management, growth and protection
of the business of the Company, with incentives and rewards to encourage them to
continue in the employ of the Company.

2. Definitions

         As used in the Plan, the following definitions apply to the terms
indicated below:

         (a) "Board of Directors" shall mean the Board of Directors of Del Monte
or such committee of the Board of Directors as may be designated by the Board of
Directors.

         (b) "Cause," when used in connection with the termination of a
Participant's employment with the Company, shall mean (i) dishonesty; (ii)
deliberate and continual refusal to perform employment duties on substantially a
full-time basis; (iii) failure to act in accordance with any specific lawful
instructions given to the Participant in connection with the performance of his
duties for the Company or any of its subsidiaries or affiliates, unless the
Participant has an existing Permanent Disability, or (iv) deliberate misconduct
which is reasonably likely to be materially damaging to the Company without a
reasonable good faith belief by the Participant that such conduct was in the
best interests of the Company. Notwithstanding the foregoing provisions of this
Section 2(b), "Cause," when used in connection with the termination of the
employment with the Company of a Participant who at the time of such termination
is a party to a written employment or retention agreement with the Company,
shall have the meaning assigned to such term in such agreement.

         (c) "Change of Control" shall mean the occurrence of one or more of the
following events:

             (1) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets
of the Company to any individual, partnership, corporation, limited liability
company, unincorporated organization, trust or joint venture, or a governmental
agency or political subdivision thereof (a "Person") or group of related Persons
for purposes of Section 13(d) of the Exchange Act (a "Group"), together with any
Affiliates (as defined below) thereof other than to TPG Partners, L.P. ("TPG")
or its Affiliates;

             (2) the approval by the holders of any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of common stock and preferred
stock, of the Company ("Capital Stock") of any plan or proposal for the
liquidation or dissolution of the Company;

             (3) (i) any Person or Group (other than TPG or its Affiliates)
shall become the owner, directly or indirectly, beneficially or of record, of
shares representing more than 40% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock (the "Voting Stock") of
the Company and (ii) TPG and its Affiliates shall beneficially own,
directly

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or indirectly, in the aggregate a lesser percentage of the Voting Stock of the
Company than such other Person or Group; or

             (4) the replacement of a majority of the Board of Directors over a
two-year period from the directors who constituted the Board of Directors at the
beginning of such period, and such replacement shall not have been approved by a
vote of at least a majority of the Board of Directors then still in office who
either were members of such Board of Directors at the beginning of such period
or whose election as a member of such Board of Directors was previously approved
or who were nominated by, or designees of TPG or its Affiliates (any such
individual who was a director at the beginning of such period or is so approved,
nominated or designated being referred to herein as an "Incumbent Director"):
provided, however, that no individual shall be considered an Incumbent Director
if the individual initially assumed office as a result of either an actual or
threatened "Election Contest" (as described in Rule 14a-11 promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board of Directors ( a "Proxy
Contest") including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or

             (5) a merger or consolidation involving the Company in which the
Company is not the surviving corporation, or a merger or consolidation involving
the Company in which the Company is the surviving corporation but the holders of
shares of Common Stock receive securities of another corporation but the holders
of shares of Common Stock receive securities of another corporation and/or other
property, including cash, or any other similar transaction.

         For purposes of this Section 2(c), "Affiliate" shall mean, with respect
to any specified Person, any other Person who directly or indirectly through one
or more intermediaries controls, or is controlled by, or is under common control
with, such specified Person. The term "control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" or "controlled" have meanings
correlative of the foregoing.

         (d) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

         (e) "Committee" shall mean the Compensation Committee of the Board of
Directors or such other committee as the Board of Directors shall appoint from
time to time to administer the Plan.

         (f) "Common Stock" shall mean common stock of Del Monte, $.01 par value
per share.

         (g) "Company" shall mean Del Monte and its subsidiaries.

         (h) "Del Monte" shall mean Del Monte Foods Company, a Maryland
corporation.

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         (i) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         (j) "Incentive Stock Option" shall mean an Option that is intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

         (k) "Option" shall mean an option to purchase shares of Common Stock
granted pursuant to Section 6 hereof.

         (l) "Participant" shall mean an employee of the Company who is eligible
to participate in the Plan and to whom an Option is granted pursuant to the
Plan, and upon his death, his successors, heirs, executors and administrators,
as the case may be.

         (m) "Permanent Disability" shall mean physical or mental disability as
a result of which the Participant is unable to perform his duties with the
Company on substantially a full-time basis for any period of six (6) consecutive
months. Any dispute as to whether or not the Participant is so disabled shall be
resolved by a physician reasonably acceptable to the Participant and the Company
whose determination shall be final and binding upon both the Participant and the
Company. Notwithstanding the foregoing provisions of this Section 2(m),
"Permanent Disability," when used in connection with the termination of the
employment with the Company of a Participant who at the time of such termination
is a party to a written employment or retention agreement with the Company,
shall have the meaning assigned to such term in such agreement.

         (n) "Plan" shall mean this Del Monte Foods Company 1997 Stock Incentive
Plan, as it may be amended from time to time.

         (o) A "Public Market" for the Common Stock shall be deemed to exist if
the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act,
or if trading regularly occurs in such Common Stock in, on or through the
facilities of securities exchanges and/or inter-dealer quotation systems in the
United States (within the meaning of Section 902(n) of the Securities Act) or
any designated offshore securities market (within the meaning of Rule 902(a) of
the Securities Act).

         (p) "Securities Act" shall mean the Securities Act of 1933, as amended.

3. Stock Subject to the Plan

         Subject to adjustment as provided in Section 7 hereof, the Committee
may grant Options to Participants with respect to 9,508 shares of Common Stock.
In the event that any outstanding Option expires, terminates or is cancelled for
any reason, the shares of Common Stock subject to the unexercised portion of
such Option shall again be available for grants under the Plan.

               Shares of Common Stock issued under the Plan may be either newly
issued shares or treasury shares, as determined by the Committee.

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4. Administration of the Plan

         The Plan shall be administered by the Committee. The Committee shall
from time to time designate the key employees of the Company who shall be
granted Options, the number of shares subject to each Option and the terms and
conditions on which each Option shall be granted.

         The Committee shall have full authority to administer the Plan,
including authority to interpret and construe any provision of the Plan and the
terms of any Option issued under it and to adopt such rules and regulations for
administering the Plan as it may deem necessary. Decisions of the Committee
shall be final and binding on all parties and all decisions, determinations,
selections and other actions permitted or required to be taken or made by the
Committee with respect to the Plan shall be subject to the absolute discretion
of the Committee. No member of the Committee shall be liable to any Participant
for any action, omission, or determination relating to the Plan.

         Whether an authorized leave of absence, or absence in military or
government service, shall constitute termination of employment shall be
determined by the Committee.

5. Eligibility

         The persons who shall be eligible to receive Options pursuant to the
Plan shall be such employees of the Company who are largely responsible for the
management, growth and protection of the business of the Company as the
Committee shall select from time to time.

6. Options

         Each Option granted pursuant to the Plan shall be evidenced by an
agreement in the form attached hereto as Exhibit A or B, as appropriate. Options
shall comply with and be subject to the following terms and conditions:

         (a) Identification of Options. All Options shall be clearly identified
in the agreement evidencing their grant as non-qualified stock options that are
not intended to qualify as "incentive stock options" within the meaning of
Section 422 of the Code or as Incentive Stock Options.

         (b) Exercise Price. The exercise price per share of each Option shall
be such price as the Committee shall determine at the time at which the Option
is granted; provided, that the exercise price per share of any Incentive Stock
Option granted under the Plan shall be not less than 100% of the fair market
value of a share of Common Stock on the date on which such Incentive Stock
Option is granted.

         (c) Term and Exercise of Options. Each Option shall be exercisable on
such date or dates, during such period and for such number of shares of Common
Stock as shall be determined by the Committee on the day on which such Option is
granted and set forth in the Option agreement with respect to such Option;
provided, however, that no Option shall be exercisable after the expiration of
ten (10) years from the date such Option is granted; and

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provided, further, that each Option shall be subject to earlier expiration,
termination, cancellation or exercisability as provided in this Plan.

         (d) Effect of Termination of Employment.

             (1) In the event of the termination of the employment of a
Participant with the Company for Cause, each Option then outstanding shall
expire and be cancelled upon such termination.

             (2) In the event that the employment of a Participant with the
Company shall be terminated other than by the Company for Cause or on account of
Permanent Disability or death of the Participant (i) Options granted to such
Participant, to the extent that they were exercisable at the time of such
termination, shall remain exercisable until the expiration of ninety (90) days
after such termination, on which date they shall expire, and (ii) Options
granted to such Participant, to the extent that they were not exercisable at the
time of such termination, shall expire at the close of business on the date of
such termination; provided, however, that no Option shall be exercisable after
the expiration of its term. In the event that the employment of a Participant
with the Company shall terminate on account of Permanent Disability or death of
the Participant, (x) Options granted to such Participant, to the extent that
they were exercisable at the time of such termination, shall remain exercisable
until the expiration of one (1) year after such termination, on which date they
shall expire, and (y) Options granted to such Participant, to the extent that
they were not exercisable at the time of such termination, shall expire at the
close of business on the date of such termination; provided, however, that no
Option shall be exercisable after the expiration of its term.

         (e) Certain Terms and Conditions

             (1) Each Option shall be exercisable in whole or in part with
respect to not less than one share of Common Stock. The partial exercise of an
Option shall not cause the expiration, termination or cancellation of the
remaining portion thereof.

             (2) An Option shall be exercised by delivering notice to Del
Monte's principal office in the form attached hereto as Exhibit C, to the
attention of its Chief Financial Officer with a copy to its General Counsel, no
less than three business days in advance of the effective date of the proposed
exercise. Such notice shall specify the number of shares of Common Stock with
respect to which the Option is being exercised and the effective date of the
proposed exercise and shall be signed by the Participant. The Participant may
withdraw such notice at any time prior to the close of business on the business
day immediately preceding the effective date of the proposed exercise. Payment
for shares of Common Stock purchased upon the exercise of an Option shall be
made on the effective date of such exercise in cash, by certified check, bank
cashier's check or wire transfer, or by tender to Del Monte of shares of Common
Stock already owned and held by the Participant for at least six (6) months,
which shares shall be valued as determined by the Board of Directors on the
effective date of the proposed exercise. In the event that, prior to the
existence of a Public Market for the Common Stock, a Participant elects to pay
the exercise price upon the exercise of an Option by the tender of
previously-owned shares, the delivery by Del Monte of certificates representing
the shares of Common Stock purchased upon

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such exercise shall be deferred pending a determination of the exact number of
the shares of Common Stock required to be tendered by the Participant.

             (3) Certificates for shares of Common Stock purchased upon the
exercise of an Option shall be issued in the name of the Participant and
delivered to the Participant as soon as practicable following the effective date
on which the Option is exercised.

             (4) During the lifetime of a Participant, each Option granted to
him shall be exercisable only by him. No Option shall be assignable or
transferable otherwise than by will or by the laws of descent and distribution.
Notwithstanding the preceding provisions of this Section 6(e)(4), a Participant
may assign his rights with respect to any Option other than any Incentive Stock
Option granted to him to a trust or custodianship the beneficiaries of which may
include only the Participant, the Participant's spouse, or the Participant's
lineal descendants (by blood or adoption). In the event of any such assignment,
such trust or custodianship shall be subject to all the restrictions,
obligations and responsibilities as apply to the Participant under the Plan and
shall be entitled to all the rights of the Participant under the Plan.

         (f) Certain Terms Applicable to Incentive Stock Options

             (1) The aggregate fair market value of shares of Common Stock with
respect to which Incentive Stock Options are exercisable for the first time by a
Participant during any calendar year under the Plan and any other stock option
plan of Del Monte or any "subsidiary corporation" within the meaning of Section
424(f) of the Code shall not exceed $100,000. Such fair market value shall be
determined as of the date on which each such Incentive Stock Option is granted.
In the event that such aggregate fair market value exceeds $100,000, then
Incentive Stock Options granted hereunder to such Participant shall, to the
extent of such excess and in the order in which they were granted, automatically
be deemed not to be Incentive Stock Options, but all other terms and provisions
of such Incentive Stock Options shall remain unchanged.

             (2) No Incentive Stock Option may be granted to an individual if,
at the time of the proposed grant, such individual owns stock possessing more
than ten percent of the total combined voting power of all classes of stock of
Del Monte or any of its "subsidiary corporations" within the meaning of Section
424(f) of the Code, unless (i) the exercise price of such Incentive Stock Option
is at least one hundred and ten percent of the fair market value of a share of
Common Stock at the time such Incentive Stock Option is granted and (ii) such
Incentive Stock Option is not exercisable after the expiration of five years
from the date such Incentive Stock Option is granted.

         (g) Consequences Upon Certain Transactions. Not more than ten (10) days
prior to a Change of Control, all outstanding Options shall vest and become
immediately exercisable.

7. Adjustment Upon Changes in Common Stock

         (a) Subject to any required action by the shareholders of Del Monte, in
the event of any increase or decrease in the number of issued shares of Common
Stock resulting from a subdivision or consolidation of shares of Common Stock or
the payment of a stock dividend (but

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only on the shares of Common Stock), or any other increase or decrease in the
number of such shares effected by Del Monte without receipt or payment of
consideration, the Committee shall proportionally adjust the number of shares of
Common Stock subject to each outstanding Option and the exercise price per share
of Common Stock of each such Option.

         (b) Subject to any required action by the shareholders of Del Monte, in
the event that Del Monte shall be the surviving corporation in any merger or
consolidation (except a merger or consolidation as a result of which the holders
of shares of Common Stock receive securities of another corporation), each
Option outstanding on the date of such merger or consolidation shall pertain to
and apply to the securities which a holder of the number of shares of Common
Stock subject to such Option would have received in such merger or
consolidation.

         (c) In the event of a dissolution or liquidation of Del Monte, or a
sale of all or a substantial portion of the Common Stock held by TPG, the
Committee shall have the power to:

             (i) cancel, effective immediately prior to the occurrence of such
event, each Option outstanding immediately prior to such event (whether or not
then exercisable), and, in full consideration of such cancellation, pay to the
Participant to whom such Option was granted an amount in cash, for each share of
Common Stock subject to such Option, equal to the excess of (A) the value, as
determined by the Committee in good faith, of the property (including cash)
received by the holder of a share of Common Stock as a result of such event over
(B) the exercise price of such Option; or

             (ii) permit Participants to exercise their Options and participate
in such transaction on a basis no less favorable than that afforded other owners
of Common Stock.

         (d) In the event of any change in the capitalization of Del Monte or
corporate change other than those specifically referred to herein, the Committee
will make such adjustments in the number and class of shares subject to Options
outstanding on the date on which such change occurs and in the per share
exercise price of each such Option as the Committee may consider necessary or
appropriate.

         (e) Except as expressly provided in the Plan, no Participant shall have
any rights by reason of any subdivision or consolidation of shares of stock of
any class, the payment of any dividend, any increase or decrease in the number
of shares of stock of any class or any dissolution, liquidation, merger or
consolidation of Del Monte or any other corporation. Except as expressly
provided in the Plan, no issuance by Del Monte of shares of stock of any class,
or securities convertible into shares of stock of any class, shall affect, and
no adjustment by reason thereof shall be made with respect to, the number of
shares of Common Stock subject to an Option or the exercise price of any Option.

8. Rights as a Stockholder

         (a) No person shall have any rights as a stockholder with respect to
any shares of Common Stock covered by or relating to any Option granted pursuant
to this Plan until the date of the issuance of a stock certificate with respect
to such shares.

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         (b) Notwithstanding anything herein to the contrary, prior to the
existence of a Public Market, Del Monte shall not be obligated to cause to be
issued or delivered to or for the benefit of any Participant any certificates
evidencing shares of Common Stock pursuant to the Plan unless and until such
Participant executes a Stockholders' Agreement in the form attached hereto as
Exhibit D.

9. No Special Employment Rights; No Right to Option

         (a) Nothing contained in the Plan or any Option shall confer upon any
Participant any right with respect to the continuation of his employment by the
Company or interfere in any way with the right of the Company at any time to
terminate such employment or to increase or decrease the compensation of the
Participant from the rate in effect at the time of the grant of an Option.

         (b) No person shall have any claim or right to receive an Option
hereunder. The Committee's granting of an Option to a Participant at any time
shall neither require the Committee to grant an Option to such Participant or
any other Participant or other person at any time nor preclude the Committee
from making subsequent grants to such Participant or any other Participant or
other person.

10. Securities Matters

         (a) Del Monte shall be under no obligation to effect the registration
pursuant to the Securities Act of any shares of Common Stock to be issued
hereunder or to effect similar compliance under any state laws. Notwithstanding
anything herein to the contrary, Del Monte shall not be obligated to cause to be
issued or delivered any certificates evidencing shares of Common Stock pursuant
to the Plan unless and until Del Monte is advised by its counsel that the
issuance and delivery of such certificates is in compliance with all applicable
laws, regulations of governmental authority and the requirements of any
securities exchange on which shares of Common Stock are traded. The Committee
may require, as a condition of the issuance and delivery of certificates
evidencing shares of Common Stock pursuant to the terms hereof, that the
recipient of such shares make such covenants, agreements and representations,
and that such certificates bear such legends, as the Committee deems necessary
or desirable.

         (b) The exercise of any Option granted hereunder shall only be
effective at such time as counsel to Del Monte shall have determined that the
issuance and delivery of shares of Common Stock pursuant to such exercise is in
compliance with all applicable laws, regulations of governmental authority and
the requirements of any securities exchange on which shares of Common Stock are
traded. Del Monte may, in its sole discretion, defer the effectiveness of any
exercise of an Option granted hereunder in order to allow the issuance of shares
of Common Stock pursuant thereto to be made pursuant to registration or an
exemption from registration or other methods for compliance available under
federal or state securities laws. Del Monte shall inform the Participant in
writing of its decision to defer the effectiveness of the exercise of an Option
granted hereunder. During the period that the effectiveness of the exercise of
an Option

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has been deferred, the Participant may, by written notice, withdraw such
exercise and obtain the refund of any amount paid with respect thereto.

         (c) In the event that the Committee defers the effectiveness of the
exercise by a Participant of an Option granted hereunder in order to allow the
issuance of shares of Common Stock pursuant thereto to be made pursuant to
registration or an exemption from registration or other methods for compliance
available under federal or state securities laws, such Participant may elect, by
delivery of written notice by the Participant to the Company not later than
thirty (30) days following his receipt of notice of such deferral or the
expiration of such deferral, to surrender the exercisable portion of such Option
(or any portion thereof) to the Company in consideration for a lump sum payment
in cash in an amount equal to the product of (A) the excess of (i) the value of
a share of Common Stock as determined by the Board of Directors as of the date
of surrender over (ii) the per share exercise price of the Option and (B) the
number of shares with respect to which such Participant desires and is entitled
to exercise such Option. Notice shall be delivered in person or by certified
mail, return receipt requested and shall be deemed to have been given when
personally delivered or three (3) days after mailing.

11. Withholding Taxes

         (a) Cash Remittance. Whenever shares of Common Stock are to be issued
upon the exercise of an Option, the Company shall have the right to require the
Participant to remit to the Company in cash an amount sufficient to satisfy
federal, state and local withholding tax requirements, if any, attributable to
such exercise prior to the delivery of any certificate or certificates for such
shares. In addition, upon the making of any cash payment pursuant to the Plan,
the Company shall have the right to withhold from such payment an amount
sufficient to satisfy the federal, state and local withholding tax requirements,
if any, attributable to such exercise.

         (b) Stock Remittance or Withholding. At the election of the
Participant, when shares of Common Stock are to be issued upon the exercise of
an Option, the Participant may tender to Del Monte a number of shares of Common
Stock previously owned by him, or direct the Company to withhold a number of
shares of Common Stock, the value of which as of the exercise date the Committee
determines to be sufficient to satisfy the federal, state and local withholding
tax requirements, if any, attributable to such exercise (based upon the value of
a share of Common Stock as determined by the Board of Directors as of the
exercise date) and not greater than the Participant's estimated total federal,
state and local tax obligations associated with such exercise. Such election
shall satisfy the Participant's obligations under Paragraph 11(a) hereof. In the
event that a Participant makes an election pursuant to this Section 11(b) prior
to the existence of a Public Market for the Common Stock, the delivery by Del
Monte of certificates representing the shares of Common Stock purchased upon
such exercise shall be deferred pending a determination of the exact number of
the shares of Common Stock required to be tendered or withheld.

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12. Termination and Amendment of the Plan

         The right to grant Options under the Plan will terminate on August 4,
2007. The Board of Directors may at any time suspend or terminate the Plan or
revise or amend it in any respect whatsoever.

13. Transfers Upon Death

         Upon the death of a Participant, outstanding Options granted to such
Participant may be exercised only by the executors or administrators of the
Participant's estate or by any person or persons who shall have acquired such
right to exercise by will or by the laws of descent and distribution. No
transfer by will or the laws of descent and distribution of any Option, or the
right to exercise any Option, shall be effective to bind the Company unless the
Committee shall have been furnished with (a) written notice thereof and with a
copy of the will and/or such evidence as the Committee may deem necessary to
establish the validity of the transfer and (b) an agreement by the transferee to
comply with all the terms and conditions of the Option that are or would have
been applicable to the Participant and to be bound by the acknowledgements made
by the Participant in connection with the grant of the Option.

14. No Obligation to Exercise

         The grant to a Participant of an Option shall impose no obligation upon
such Participant to exercise such Option.

15. Expenses and Receipts

         The expenses of the Plan shall be paid by the Company. Any proceeds
received by the Company in connection with any Option will be used for general
corporate purposes.

l6. Failure to Comply

         In addition to the remedies of the Company elsewhere provided for
herein, failure by a Participant to comply with any of the terms and conditions
of the Plan or the agreement executed by such Participant evidencing an Option,
unless such failure is remedied by such Participant within ten (10) days after
having been notified of such failure by the Committee, shall be grounds for the
cancellation and forfeiture of such Option, in whole or in part, as the
Committee, in its absolute discretion, may determine.

17. Applicable Law

         The Plan will be administered in accordance with the laws of the State
of California, without reference to its principles of conflicts of law.

                                       11<PAGE>   1
                                                                    EXHIBIT 10.3

                             DEL MONTE FOODS COMPANY

                            1998 STOCK INCENTIVE PLAN

                          (AS AMENDED OCTOBER 21, 1999)

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1. Purpose of the Plan

         This Del Monte Foods Company 1998 Stock Incentive Plan is intended to
promote the interests of the Company by encouraging the Company's employees,
nonemployee directors and consultants of the Company to continue in the service
of the Company, and to provide such persons with incentives and rewards for
superior management, growth and protection of the business of the Company.

2. Definitions

         As used in the Plan, the following definitions apply to the terms
indicated below:

         (a) "Board of Directors" shall mean the Board of Directors of Del
Monte.

         (b) "Cause," when used in connection with the termination of a
Participant's employment with the Company, shall mean (i) dishonesty; (ii)
deliberate and continual refusal to perform employment duties on substantially a
full-time basis; (iii) failure to act in accordance with any specific lawful
instructions given to the Participant in connection with the performance of his
duties for the Company or any of its Subsidiaries or affiliates, unless the
Participant has an existing Disability; or (iv) deliberate misconduct which is
reasonably likely to be materially damaging to the Company without a reasonable
good faith belief by the Participant that such conduct was in the best interests
of the Company. Notwithstanding the foregoing provisions of this Section 2(b),
"Cause," when used in connection with the termination of the employment with the
Company of a Participant who at the time of such termination is a party to a
written employment or retention agreement with the Company, shall have the
meaning assigned to such term in such agreement.

         (c) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

         (d) "Committee" shall mean the Compensation Subcommittee of the Board
of Directors or such other committee as the Board of Directors shall appoint
from time to time to administer the Plan.

         (e) "Common Stock" shall mean Del Monte's common stock, $0.01 par value
per share.

         (f) "Company" shall mean Del Monte and each of its Subsidiaries.

         (g) "Consultant" shall mean any consultant, independent contractor, or
other person who provides significant services to the Company, but who is
neither an Employee nor a Director.

         (h) "Director" shall mean a member of the Board of Directors, whether
or not such individual also is an Employee.

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         (i) "Disability" shall mean physical or mental disability as a result
of which the Participant is unable to perform his duties with the Company on
substantially a full-time basis for any period of six (6) consecutive months.
Any dispute as to whether or not the Participant is so disabled shall be
resolved by a physician reasonably acceptable to the Participant and the Company
whose determination shall be final and binding upon both the Participant and the
Company. Notwithstanding the foregoing provisions of this Section 2(i),
"Disability," when used in connection with the termination of the employment
with the Company of a Participant who at the time of such termination is a party
to a written employment or retention agreement with the Company, shall have the
meaning assigned to such term in such agreement.

         (j) "Employee" shall mean any employee of the Company, whether such
employee is so employed at the time the Plan is adopted or becomes so employed
subsequent to the adoption of the Plan.

         (k) the "Fair Market Value" of a share of Common Stock with respect to
any day shall be (i) the average of the high and low sales prices on such day of
a share of Common Stock as reported on the principal securities exchange on
which shares of Common Stock are then listed or admitted to trading or (ii) if
not so reported, the average of the closing bid and ask prices on such day as
reported on the National Association of Securities Dealers Automated Quotation
System or (iii) if not so reported, as furnished by any member of the National
Association of Securities Dealers, Inc. selected by the Committee. In the event
that the price of a share of Common Stock shall not be so reported, the Fair
Market Value of a share of Common Stock shall be determined by the Committee in
its absolute discretion.

         (l) "Incentive Award" shall mean an Option, Tandem SAR, Stand-Alone SAR
or Stock Bonus granted pursuant to the terms of the Plan.

         (m) "Incentive Stock Option" shall mean an Option which is an
"incentive stock option" within the meaning of Section 422 of the Code and which
is identified as an Incentive Stock Option in the agreement by which it is
evidenced.

         (n) "Non-Qualified Stock Option" shall mean an Option which is not an
Incentive Stock Option and which is identified as a Non-Qualified Stock Option
in the agreement by which it is evidenced.

         (o) "Del Monte" shall mean Del Monte Foods Company, a Delaware
corporation, and its successors.

         (p) "Option" shall mean an option to purchase shares of Common Stock of
Del Monte granted pursuant to Section 6 hereof. Each Option shall be identified
as either an Incentive Stock Option or a Non-Qualified Stock Option in the
agreement by which it is evidenced.

         (q) "Participant" shall mean an Employee, Director or Consultant to
whom an Incentive Award is granted pursuant to the Plan, and upon his death, his
successors, heirs, executors and administrators, as the case may be.

                                       3
<PAGE>   4

         (r) "Plan" shall mean this Del Monte Foods Company 1998 Stock Incentive
Plan, as it may be amended from time to time.

         (s) "Rule 16b-3" shall mean Rule 16b-3 promulgated under the Securities
Exchange Act of 1934, as amended, and any future regulation amending,
supplementing or superseding such regulation.

         (t) "Section 16 Person" shall mean a person who, with respect to the
Common Stock, is subject to Section 16 of the Securities Exchange Act of 1934,
as amended.

         (u) "Stand-Alone SAR" shall mean a stock appreciation right granted
pursuant to Section 8 hereof which is not related to any Option.

         (v) "Stock Bonus" shall mean a grant of a bonus payable in shares of
Common Stock pursuant to Section 9 hereof.

         (w) "Subsidiary" shall mean any "subsidiary corporation" within the
meaning of Section 424(f) of the Code.

         (x) "Tandem SAR" shall mean a stock appreciation right granted pursuant
to Section 7 hereof which is related to an Option. Each Tandem SAR shall be
exercisable only to the extent its related Option is exercisable and only in the
alternative to the exercise of its related Option.

         (y) "Change of Control" shall mean the occurrence of one or more of the
following events:

             (1) any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all or substantially all of the assets
of the Company to any individual, partnership, corporation, limited liability
company, unincorporated organization, trust or joint venture, or a governmental
agency or political subdivision thereof (a "Person") or group of related Persons
for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended
(a "Group"), together with any Affiliates (as defined below) thereof other than
to TPG Partners, L.P. ("TPG") or its Affiliates;

             (2) the approval by the holders of any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of common stock and preferred
stock, of the Company ("Capital Stock") of any plan or proposal for the
liquidation or dissolution of the Company;

             (3) (i) any Person or Group (other than TPG or its Affiliates)
shall become the owner, directly or indirectly, beneficially or of record, of
shares representing more than 40% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock (the "Voting Stock") of
the Company and (ii) TPG and its Affiliates shall beneficially own, directly or
indirectly, in the aggregate a lesser percentage of the Voting Stock of the
Company than such other Person or Group; or

                                       4
<PAGE>   5

             (4) the replacement of a majority of the Board of Directors over a
two-year period from the directors who constituted the Board of Directors at the
beginning of such period, and such replacement shall not have been approved by a
vote of at least a majority of the Board of Directors then still in office who
either were members of such Board of Directors at the beginning of such period
or whose election as a member of such Board of Directors was previously approved
or who were nominated by, or designees of TPG or its Affiliates (any such
individual who was a director at the beginning of such period or is so approved,
nominated or designated being referred to herein as an "Incumbent Director");
provided, however, that no individual shall be considered an Incumbent Director
if the individual initially assumed office as a result of either an actual or
threatened "Election Contest" (as described in Rule 14a-11 promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board of Directors (a "Proxy
Contest") including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or

             (5) a merger or consolidation involving the Company in which the
Company is not the surviving corporation, or a merger or consolidation involving
the Company in which the Company is the surviving corporation but the holders of
shares of Common Stock receive securities of another corporation and/or other
property, including cash, or any other similar transaction.

         For purposes of this Section 2(y), "Affiliate" shall mean, with respect
to any specified Person, any other Person who directly or indirectly through one
or more intermediaries controls, or is controlled by, or is under common control
with, such specified Person. The term "control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" or "controlled" have meanings
correlative of the foregoing.

         (z) A "Public Market" for the Common Stock shall be deemed to exist if
the Common Stock is registered under Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended, or if trading regularly occurs in such Common
Stock in, on or through the facilities of securities exchanges and/or
inter-dealer quotation systems in the United States (within the meaning of
Section 902(n) of the Securities Act of 1933, as amended) or any designated
offshore securities market (within the meaning of Rule 902(a) of the Securities
Act of 1933, as amended).

3. Stock Subject to the Plan

         (a) Maximum Shares Available for Delivery. Subject to 10 hereof, the
maximum number of shares of Common Stock that may be delivered to Participants
and their beneficiaries under the Plan shall be equal to the sum of (i)
3,195,687, and (ii) any shares of Common Stock that are represented by awards
granted under any prior plan of the Company, which are forfeited, expire or are
canceled without the delivery of shares of Common Stock or which result in the
forfeiture of shares of Common Stock back to the Company; provided, however,
that in no event

                                       5
<PAGE>   6

shall such maximum number of shares of Common Stock exceed a number of shares
which is equal to 30% of the then outstanding shares of Del Monte (any
convertible preferred or convertible senior common shares of Del Monte will be
counted as if on a converted basis). In addition, any shares of Common Stock
granted under the Plan which are forfeited back to the Company because of the
failure to meet an Incentive Award contingency or condition shall again be
available for delivery pursuant to new Incentive Awards granted under the Plan.
Any shares of Common Stock covered by an Incentive Award (or portion of an
Incentive Award) granted under the Plan, which is forfeited or canceled, expires
or is settled in cash, including the settlement of tax withholding obligations
using shares of Common Stock, shall be deemed not to have been delivered for
purposes of determining the maximum number of shares of Common Stock available
for delivery under the respective plan. Likewise, if any Option is exercised by
tendering shares of Common Stock, either actually or by attestation, to the
Company as full or partial payment for such exercise under this Plan or any
prior plan of the Company, only the number of shares of Common Stock issued net
of the shares of Common Stock tendered shall be deemed delivered for purposes of
determining the maximum number of shares of Common Stock available for delivery
under the Plan. Further, shares of Common Stock issued under the Plan through
the settlement, assumption or substitution of outstanding Incentive Awards or
obligations to grant future Incentive Awards as a condition of the Company
acquiring another entity shall not reduce the maximum number of shares of Common
Stock available for delivery under the Plan. Shares of Common Stock issued under
the Plan may be either newly issued shares or treasury shares, as determined by
the Committee.

         (b) Payment Shares. Subject to the overall limitation on the number of
shares of Common Stock that may be delivered under the Plan, the Committee may,
in addition to granting Incentive Awards under Section 4, use available shares
of Common Stock as the form of payment for compensation, grants or rights earned
or due under any other compensation plans or arrangements of the Company,
including those of any entity acquired by the Company.

4. Administration of the Plan

         The Plan shall be administered by a Committee of the Board of Directors
consisting of two or more persons, each of whom shall be a "nonemployee
director" within the meaning of Rule 16b-3, unless otherwise determined by the
Board of Directors. The Committee shall from time to time designate the key
employees of the Company who shall be granted Incentive Awards and the amount
and type of such Incentive Awards.

         The Committee shall have full discretionary authority to administer the
Plan, including authority to interpret and construe any provision of the Plan
and the terms of any Incentive Award issued under it and to adopt such rules and
regulations for administering the Plan as it may deem necessary. The Committee,
in its sole discretion and on such terms and conditions as it may provide, may
delegate all or any part of its authority and powers under the Plan to one or
more Directors. Decisions of the Committee shall be final and binding on all
parties, and shall be given the maximum deference permitted by law.

                                       6
<PAGE>   7

         The Committee may, in its absolute discretion, accelerate the date on
which any Option or Stand-Alone SAR granted under the Plan becomes exercisable
or, subject to Section 6(c)(1) hereof, extend the term of any Option or
Stand-Alone SAR granted under the Plan.

         Whether an authorized leave of absence, or absence in military or
government service, shall constitute termination of employment shall be
determined by the Committee.

         No member of the Committee shall be liable for any action, omission, or
determination relating to the Plan, and Del Monte shall indemnify and hold
harmless each member of the Committee and each other director or employee of the
Company to whom any duty or power relating to the administration or
interpretation of the Plan has been delegated against any cost or expense
(including counsel fees) or liability (including any sum paid in settlement of a
claim with the approval of the Committee) arising out of any action, omission or
determination relating to the Plan, unless, in either case, such action,
omission or determination was taken or made by such member, director or employee
in bad faith and without reasonable belief that it was in the best interests of
the Company.

5. Eligibility

         The persons who shall be eligible to receive Incentive Awards pursuant
to the Plan shall be such Employees, Directors and Consultants as the Committee
shall select from time to time.

6. Options

         The Committee may grant Options pursuant to the Plan to Participants,
which Options shall be evidenced by agreements in such form as the Committee
shall from time to time approve. Options shall comply with and be subject to the
following terms and conditions:

         (a) Identification of Options. All Options granted under the Plan shall
be clearly identified in the agreement evidencing such Options as either
Incentive Stock Options or as Non-Qualified Stock Options.

         (b) Exercise Price. The exercise price of any Non-Qualified Stock
Option granted under the Plan shall be such price as the Committee shall
determine on the date on which such Non-Qualified Stock Option is granted and
shall not be less than 85% of the Fair Market Value of a share of Common Stock
on the date on which such Non-Qualified Stock Option is granted; provided, that
the exercise price of any Non-Qualified Stock Option granted to an individual,
who at the time of the proposed grant owns stock possessing more than ten
percent of the total combined voting power of all classes of stock of Del Monte
or any of its Subsidiaries, shall not be less than 110% of the Fair Market Value
of a share of Common Stock on the date on which such Non-Qualified Stock Option
is granted.

         (c) Term and Exercise of Options.

             (1) Each Option shall be exercisable on such date or dates, during
such period and for such number of shares of Common Stock as shall be determined
by the Committee on the

                                       7
<PAGE>   8

day on which such Option is granted and set forth in the Option agreement with
respect to such Option; provided, however, that no Option will be exercisable
after the expiration of ten years from the date the Option is granted; and
provided, further, that each Option shall be subject to earlier expiration,
termination, cancellation or exercisability as provided in this Plan. Subject to
earlier termination of the Option as determined by the Committee, each
Participant who is not an officer, Director or Consultant of the Company or of a
Subsidiary shall have the right to exercise an Option at the rate of at least
twenty percent over five years from the date such Option is granted.

             (2) Each Option shall be exercisable in whole or in part, subject
to the provisions of the applicable Option agreement. The partial exercise of an
Option shall not cause the expiration, termination or cancellation of the
remaining portion thereof.

             (3) An Option shall be exercised by delivering written notice to
Del Monte's principal office, to the attention of the office specified by Del
Monte. Such notice shall specify the number of shares of Common Stock with
respect to which the Option is being exercised and the effective date of the
proposed exercise and shall be signed by the Participant. Payment for shares of
Common Stock purchased upon the exercise of an Option shall be made on the
effective date of such exercise in full in cash or its equivalent. The
Committee, in its sole discretion, also may permit exercise (i) by tendering
previously acquired shares of Common Stock having an aggregate Fair Market Value
at the time of exercise equal to the total exercise price, or (ii) by any other
means which the Committee, in its sole discretion, determines to both provide
legal consideration for the Common Stock, and to be consistent with the purposes
of the Plan. In the event that, prior to the existence of a Public Market for
the Common Stock, a Participant elects to pay the exercise price upon the
exercise of an Option by the tender of previously-owned shares, the delivery by
Del Monte of certificates representing the shares of Common Stock purchased upon
such exercise shall be deferred pending a determination of the exact number of
the shares of Common Stock required to be tendered by the Participant.

             (4) Any Option granted under the Plan may be exercised by a
broker-dealer acting on behalf of a Participant if (i) the broker-dealer has
received from the Participant or Del Monte a fully- and duly-endorsed agreement
evidencing such Option and instructions signed by the Participant requesting Del
Monte to deliver the shares of Common Stock subject to such Option to the
broker-dealer on behalf of the Participant and specifying the account into which
such shares should be deposited, (ii) adequate provision has been made with
respect to the payment of any withholding taxes due upon such exercise or, in
the case of an Incentive Stock Option, the disposition of such shares and (iii)
the broker-dealer and the Participant have otherwise complied with Section
220.3(e)(4) of Regulation T, 12 CFR Part 220.

             (5) Certificates for shares of Common Stock purchased upon the
exercise of an Option (which may be in book entry form) shall be issued in the
name of the Participant and delivered to the Participant as soon as practicable
following the effective date on which the Option is exercised.

                                       8
<PAGE>   9

             (6) During the lifetime of a Participant, each Option granted to
him shall be exercisable only by him. No Option shall be assignable or
transferable other than by will, the laws of descent and distribution, or to the
limited extent provided in Paragraph 17 hereof.

             (7) Subject to earlier termination pursuant to Section 7(b)(2) and
10(d), exercise of an Option shall always be subject to the following:

                 (i) In the event of the termination of the employment of a
Participant with the Company for Cause, each Option then outstanding shall
expire and be cancelled upon such termination.

                 (ii) In the event that the employment of a Participant with the
Company shall be terminated other than by the Company for Cause or on account of
Disability or death of the Participant (A) Options granted to such Participant,
to the extent that they were exercisable at the time of such termination, shall
remain exercisable until the expiration of ninety (90) days after such
termination, on which date they shall expire, and (B) Options granted to such
participant, to the extent that they were not exercisable at the time of such
termination, shall expire at the close of business on the date of such
termination; provided, however, that no Option shall be exercisable after the
expiration of its term.

                 (iii) In the event that the employment of a Participant with
the Company shall terminate on account of Disability or death of the
Participant, (A) Options granted to such Participant, to the extent that they
were exercisable at the time of such termination, shall remain exercisable until
the expiration of one (1) year after such termination, on which date they shall
expire, and (B) Options granted to such Participant, to the extent that they
were not exercisable at the time of such termination, shall expire at the close
of the business on the date of such termination; provided, however, that no
Option shall be exercisable after the expiration of its term.

         (d) Limitations on Grant of Incentive Stock Options

             (1) The aggregate Fair Market Value of shares of Common Stock with
respect to which "incentive stock options" (within the meaning of Section 422 of
the Code) are exercisable for the first time by a Participant during any
calendar year under the Plan and any other stock option plan of the Company (or
any "subsidiary" of Del Monte as such term is defined in Section 424 of the
Code) shall not exceed $100,000. Such Fair Market Value shall be determined as
of the date on which each such incentive stock option is granted. In the event
that the aggregate Fair Market Value of shares of Common Stock with respect to
such incentive stock options exceeds $100,000, then Incentive Stock Options
granted hereunder to such Participant shall, to the extent and in the order
required by regulations promulgated under the Code (or any other authority
having the force of regulations), automatically be deemed to be Non-Qualified
Stock Options, but all other terms and provisions of such Incentive Stock
Options shall remain unchanged. In the absence of such Regulations (and
authority), or in the event such Regulations (or authority) require or permit a
designation of the options which shall cease to constitute incentive stock
options, Incentive Stock Options shall, to the extent of such excess and in the

                                       9
<PAGE>   10

order in which they were granted, automatically be deemed to be Non-Qualified
Stock Options, but all other terms and provisions of such Incentive Stock
Options shall remain unchanged.

             (2) No Incentive Stock Option may be granted to an individual if,
at the time of the proposed grant, such individual owns stock possessing more
than ten percent of the total combined voting power of all classes of stock of
Del Monte or any of its "subsidiaries" (within the meaning of Section 424 of the
Code), unless (i) the exercise price of such Incentive Stock Option is at least
one hundred and ten percent of the Fair Market Value of a share of Common Stock
at the time such Incentive Stock Option is granted and (ii) such Incentive Stock
Option is not exercisable after the expiration of five years from the date such
Incentive Stock Option is granted.

             (3) Only Employees are eligible to be granted Incentive Stock
Options. Directors and Consultants are not eligible to be granted Incentive
Stock Options.

         (e) Cash Bonuses and Loans

             (1) The Committee may, in its absolute discretion, grant to any
Participant a cash bonus in an amount determined by the Committee to enable the
Participant to pay any federal, state or local income taxes arising out of the
exercise of an Option.

             (2) The Committee may, in its absolute discretion, provide a loan
to any Participant in an amount determined by the Committee to enable the
Participant to pay (i) any federal, state or local income taxes arising out of
the exercise of an Option or (ii) the exercise price with respect to any Option.
Any such loan (i) shall be for such term and at such rate of interest as the
Committee may determine, (ii) shall be evidenced by a promissory note in a form
determined by the Committee and executed by the Participant and (iii) shall be
subject to such other terms and conditions as the Committee may determine.

         (f) Consequences Upon Certain Transactions. Not more than ten (10) days
prior to a Change of Control, all outstanding Options and Stand-Alone SARs shall
vest and become immediately exercisable.

7. Tandem Stock Appreciation Rights

         The Committee may grant in connection with any Option granted hereunder
one or more Tandem SARs relating to a number of shares of Common Stock less than
or equal to the number of shares of Common Stock subject to the related Option.
Notwithstanding anything herein to the contrary, no Tandem SARs shall be granted
prior to the existence of a Public Market for the Common Stock. A Tandem SAR may
be granted at the same time as, or subsequent to the time that, its related
Option is granted. Each Tandem SAR shall be evidenced by an agreement in such
form as the Committee shall from time to time approve. Tandem SARs shall comply
with and be subject to the following terms and conditions:

         (a) Benefit Upon Exercise. The exercise of a Tandem SAR with respect to
any number of shares of Common Stock shall entitle a Participant to (i) a cash
payment, for each

                                       10
<PAGE>   11

such share, equal to the excess of (A) the Fair Market Value of a share of
Common Stock on the effective date of such exercise over (B) the exercise price
of the related Option, (ii) the issuance or transfer to the Participant of a
number of shares of Common Stock which on the date of the exercise of the Tandem
SAR have a Fair Market Value equal to such excess or (iii) a combination of cash
and shares of Common Stock in amounts equal to such excess, all as determined by
the Committee in its discretion.

         (b) Term and Exercise of Tandem SAR.

             (1) A Tandem SAR shall be exercisable at the same time and to the
same extent (on a proportional basis, with any fractional amount being rounded
down to the immediately preceding whole number) as its related Option.

             (2) The exercise of a Tandem SAR with respect to a number of shares
of Common Stock shall cause the immediate and automatic cancellation of its
related Option with respect to an equal number of shares. The exercise of an
Option, or the cancellation, termination or expiration of an Option (other than
pursuant to this Paragraph (2)), with respect to a number of shares of Common
Stock shall cause the automatic and immediate cancellation of its related Tandem
SARs to the extent that the number of shares of Common Stock subject to such
Option after such exercise, cancellation, termination or expiration is less than
the number of shares subject to such Tandem SARs. Such Tandem SARs shall be
cancelled in the order in which they became exercisable.

             (3) Each Tandem SAR shall be exercisable in whole or in part, as
provided in the applicable agreement. The partial exercise of a Tandem SAR shall
not cause the expiration, termination or cancellation of the remaining portion
thereof.

             (4) During the lifetime of a Participant, each Tandem SAR granted
to him shall be exercisable only by him. No Tandem SAR shall be assignable or
transferable other than by will, the laws of descent and distribution, or as
provided in Paragraph 17 hereof and otherwise than together with its related
Option.

             (5) A Tandem SAR shall be exercised by delivering written notice to
Del Monte's principal office, to the attention of the office specified by Del
Monte. Such notice shall specify the number of shares of Common Stock with
respect to which the Tandem SAR is being exercised and the effective date of the
proposed exercise and shall be signed by the Participant.

8. Stand-Alone Stock Appreciation Rights

         The Committee may grant Stand-Alone SARs pursuant to the Plan, which
Stand-Alone SARs shall be evidenced by agreements in such form as the Committee
shall from time to time approve. Notwithstanding anything herein to the
contrary, no Stand-Alone SARs shall be granted prior to the existence of a
Public Market for the Common Stock. Stand-Alone SARs shall comply with and be
subject to the following terms and conditions:

                                       11
<PAGE>   12

         (a) Exercise Price. The exercise price of any Stand-Alone SAR granted
under the Plan shall be determined by the Committee at the time of the grant of
such Stand-Alone SAR.

         (b) Benefit Upon Exercise. The exercise of a Stand-Alone SAR with
respect to any number of shares of Common Stock shall entitle a Participant to
(i) a cash payment, for each such share, equal to the excess of (A) the Fair
Market Value of a share of Common Stock on the effective date of such exercise
over (B) the exercise price of the Stand-Alone SAR, (ii) the issuance or
transfer to the Participant of a number of shares of Common Stock which on the
date of the exercise of the Stand-Alone SAR have a Fair Market Value equal to
such excess or (iii) a combination of cash and shares of Common Stock in amounts
equal to such excess, all as determined by the Committee in its absolute
discretion.

         (c) Term and Exercise of Stand-Alone SARs

             (1) Each Stand-Alone SAR shall be exercisable on such date or
dates, during such period and for such number of shares of Common Stock as shall
be determined by the Committee and set forth in the Stand-Alone SAR agreement
with respect to such Stand-Alone SAR. Each Stand-Alone SAR shall be subject to
such termination, expiration or cancellation provisions as provided in the
agreement evidencing such Stand-Alone SAR.

             (2) Each Stand-Alone SAR may be exercised in whole or in part, as
provided in the applicable agreement. The partial exercise of a Stand-Alone SAR
shall not cause the expiration, termination or cancellation of the remaining
portion thereof.

             (3) A Stand-Alone SAR shall be exercised by delivering written
notice to Del Monte's principal office, to the attention of the office
designated by Del Monte. Such notice shall specify the number of shares of
Common Stock with respect to which the Stand-Alone SAR is being exercised and
the effective date of the proposed exercise and shall be signed by the
Participant.

             (4) During the lifetime of a Participant, each Stand-Alone SAR
granted to him shall be exercisable only by him. No Stand-Alone SAR shall be
assignable or transferable otherwise than by will, the laws of descent and
distribution, or to the limited extent provided in Paragraph 17 hereof.

9. Stock Bonuses

         The Committee may grant Stock Bonuses in such amounts as it shall
determine from time to time. A Stock Bonus shall be paid at such time and
subject to such conditions as the Committee shall determine at the time of the
grant of such Stock Bonus. Notwithstanding anything herein to the contrary, no
Stock Bonus shall be granted prior to the existence of a Public Market for the
Common Stock. Certificates for shares of Common Stock granted as a Stock

         Bonus shall be issued in the name of the Participant to whom such grant
was made and delivered to such Participant as soon as practicable after the date
on which such Stock Bonus is required to be paid.

                                       12
<PAGE>   13

10. Adjustment Upon Changes in Common Stock

         (a) Shares Available for Grants. In the event of any change in the
number of shares of Common Stock outstanding by reason of any stock dividend or
split, recapitalization, merger, consolidation, combination or exchange of
shares or similar corporate change, the maximum aggregate number of shares of
Common Stock with respect to which the Committee may grant Options, Stand-Alone
SARs and Stock Bonuses shall be appropriately adjusted by the Committee. In the
event of any change in the number of shares of Common Stock outstanding by
reason of any other event or transaction, the Committee may, but need not, make
such adjustments in the number and class of shares of Common Stock with respect
to which Options, Stand-Alone SARs and Stock Bonuses may be granted as the
Committee may deem appropriate.

         (b) Outstanding Options, Tandem SARs and Stand-Alone SARs - Increase or
Decrease in Issued Shares Without Consideration. Subject to any required action
by the stockholders of Del Monte, in the event of any increase or decrease in
the number of issued shares of Common Stock resulting from a subdivision or
consolidation of shares of Common Stock or the payment of a stock dividend (but
only on the shares of Common Stock), or any other increase or decrease in the
number of such shares effected without receipt or payment of consideration by
Del Monte, the Committee shall proportionally adjust the number of shares of
Common Stock subject to each outstanding Option, Tandem SAR and Stand-Alone SAR
and the exercise price per share of Common Stock of each such Option, Tandem SAR
and Stand-Alone SAR.

         (c) Outstanding Options, Tandem SARs and Stand-Alone SARs - Certain
Mergers. Subject to any required action by the stockholders of Del Monte, in the
event that Del Monte shall be the surviving corporation in any merger or
consolidation (except a merger or consolidation as a result of which the holders
of shares of Common Stock receive securities of another corporation), each
Option, Tandem SAR and Stand-Alone SAR outstanding on the date of such merger or
consolidation shall pertain to and apply to the securities which a holder of the
number of shares of Common Stock subject to such Option, Tandem SAR or
Stand-Alone SAR would have received in such merger or consolidation.

         (d) Outstanding Options, Tandem SARs and Stand-Alone SARs - Certain
Other Transactions. In the event of a dissolution or liquidation of Del Monte,
or a sale of all or a substantial portion of the Common Stock held by TPG, the
Committee shall have the power to:

             (i) cancel, effective immediately prior to the occurrence of such
event, each Option (including each Tandem-SAR related thereto) and Stand-Alone
SAR outstanding immediately prior to such event (whether or not then
exercisable), and, in full consideration of such cancellation, pay to the
Participant to whom such Option or Stand-Alone SAR was granted an amount in
cash, for each share of Common Stock subject to such Option or Stand-Alone SAR,
respectively, equal to the excess of (A) the value, as determined by the
Committee in good faith, of the property (including cash) received by the holder
of a share of Common Stock as a result of such event over (B) the exercise price
of such Option or Stand-Alone SAR; or

                                       13
<PAGE>   14

             (ii) permit Participants to exercise their Options (or Tandem SARs
related thereto) and Stand-Alone SARs and participate in such transaction on a
basis no less favorable than that afforded other owners of Common Stock.

         (e) Outstanding Options, Tandem SARs and Stand-Alone SARs - Other
Changes. In the event of any change in the capitalization of Del Monte or
corporate change other than those specifically referred to in Sections 10(b),
(c) or (d) hereof, the Committee may, in its absolute discretion, make such
adjustments in the number and class of shares subject to Options, Tandem SARs
and Stand-Alone SARs outstanding on the date on which such change occurs and in
the per share exercise price of each such Option, Tandem SAR and Stand-Alone SAR
as the Committee may consider appropriate to prevent dilution or enlargement of
rights.

         (f) No Other Rights. Except as expressly provided in the Plan, no
Participant shall have any rights by reason of any subdivision or consolidation
of shares of stock of any class, the payment of any dividend, any increase or
decrease in the number of shares of stock of any class or any dissolution,
liquidation, merger or consolidation of Del Monte or any other corporation.
Except as expressly provided in the Plan, no issuance by Del Monte of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number of shares of Common Stock subject to an Incentive Award or the
exercise price of any Option, Tandem SAR or Stand-Alone SAR.

11. Rights as a Stockholder

         (a) No person shall have any rights as a stockholder with respect to
any shares of Common Stock covered by or relating to any Incentive Award granted
pursuant to this Plan until the date of the issuance of a stock certificate with
respect to such shares. Except as otherwise expressly provided in Section 10
hereof, no adjustment to any Incentive Award shall be made for dividends or
other rights for which the record date occurs prior to the date such stock
certificate is issued.

         (b) Notwithstanding anything herein to the contrary, prior to the
existence of a Public Market, Del Monte shall not be obligated to cause to be
issued or delivered to or for the benefit of any Participant any certificates
evidencing shares of Common Stock pursuant to the Plan unless and until such
Participant executes a Stockholders' Agreement in the form attached hereto as
Exhibit A. Del Monte shall comply with Section 260.140.1 of Title 10 of the
California Code of Regulations with respect to the voting rights of Common
Stock.

         (c) Del Monte will provide financial statements to each Participant
prior to such Participant's purchase of shares of Common Stock under the Plan,
and to each Participant annually during the period such Participant has Options
outstanding, or as otherwise required under Section 260.140.46 of Title 10 of
the California Code of Regulations. Notwithstanding the foregoing, Del Monte
will not be required to provide such financial statements to Participants when
issuance is limited to key employees whose services in connection with Del Monte
assure them access to equivalent information.

                                       14
<PAGE>   15

12. No Special Employment Rights; No Right to Incentive Award

         Nothing contained in the Plan or any Incentive Award shall confer upon
any Participant any right with respect to the continuation of his employment by
the Company or interfere in any way with the right of the Company, subject to
the terms of any separate employment agreement to the contrary, at any time to
terminate such employment or to increase or decrease the compensation of the
Participant from the rate in existence at the time of the grant of an Incentive
Award.

         No person shall have any claim or right to receive an Incentive Award
hereunder. The Committee's granting of an Incentive Award to a Participant at
any time shall neither require the Committee to grant an Incentive Award to such
Participant or any other Participant or other person at any time nor preclude
the Committee from making subsequent grants to such Participant or any other
Participant or other person.

13. Securities Matters

         (a) Del Monte shall be under no obligation to effect the registration
pursuant to the Securities Act of 1933 of any shares of Common Stock to be
issued hereunder or to effect similar compliance under any state laws.
Notwithstanding anything herein to the contrary, Del Monte shall not be
obligated to cause to be issued or delivered any certificates evidencing shares
of Common Stock pursuant to the Plan unless and until Del Monte is advised by
its counsel that the issuance and delivery of such certificates is in compliance
with all applicable laws, regulations of governmental authority and the
requirements of any securities exchange on which shares of Common Stock are
traded. The Committee may require, as a condition of the issuance and delivery
of certificates evidencing shares of Common Stock pursuant to the terms hereof,
that the recipient of such shares make such covenants, agreements and
representations, and that such certificates bear such legends, as the Committee,
in its sole discretion, deems necessary or desirable.

         (b) The exercise of any Option granted hereunder shall only be
effective at such time as counsel to Del Monte shall have determined that the
issuance and delivery of shares of Common Stock pursuant to such exercise is in
compliance with all applicable laws, regulations of governmental authority and
the requirements of any securities exchange on which shares of Common Stock are
traded. Del Monte may, in its sole discretion, defer the effectiveness of any
exercise of an Option granted hereunder in order to allow the issuance of shares
of Common Stock pursuant thereto to be made pursuant to registration or an
exemption from registration or other methods for compliance available under
federal or state securities laws. Del Monte shall inform the Participant in
writing of its decision to defer the effectiveness of the exercise of an Option
granted hereunder. During the period that the effectiveness of the exercise of
an Option has been deferred, the Participant may, by written notice, withdraw
such exercise and obtain the refund of any amount paid with respect thereto.

         (c) In the event that the Committee defers the effectiveness of the
exercise of a Participant of an Option granted hereunder in order to allow the
issuance of shares of Common Stock pursuant thereto to be made pursuant to
registration or an exemption from registration or

                                       15
<PAGE>   16

other methods for compliance available under federal or state securities laws,
such Participant may elect, by delivery of written notice by the Participant to
the Company not later than thirty (30) days following his receipt of notice of
such deferral or the expiration of such deferral, to surrender the exercisable
portion of such Option (or any portion thereof) to the Company in consideration
for a lump sum payment in cash in an amount equal to the product of (A) the
excess of (i) the value of a share of Common Stock as determined by the Board of
Directors as of the date of surrender over (ii) the per share exercise price of
the Option and (B) the number of shares with respect to which such Participant
desires and is entitled to exercise such Option. Notice shall be delivered in
person or by certified mail, return receipt requested and shall be deemed to
have been given when personally delivered or three (3) days after mailing.

14. Withholding Taxes

         (a) Cash Remittance. Whenever shares of Common Stock are to be issued
upon the exercise of an Option or the grant of a Stock Bonus, Del Monte shall
have the right to require the Participant to remit to Del Monte in cash an
amount sufficient to satisfy federal, state and local withholding tax
requirements, if any, attributable to such exercise prior to the delivery of any
certificate or certificates for such shares. In addition, upon the exercise of a
Tandem SAR or Stand-Alone SAR, Del Monte shall have the right to withhold from
any cash payment required to be made pursuant thereto an amount sufficient to
satisfy the federal, state and local withholding tax requirements, if any,
attributable to such exercise.

         (b) Stock Remittance. At the election of the Participant, subject to
the approval of the Committee, when shares of Common Stock are to be issued upon
the exercise of an Option or the grant of a Stock Bonus, the Participant may
tender to Del Monte a number of shares of Common Stock determined by such
Participant, the Fair Market Value of which at the tender date the Committee
determines to be sufficient to satisfy the federal, state and local withholding
tax requirements, if any, attributable to such exercise or grant and not greater
than the Participant's estimated total federal, state and local tax obligations
associated with such exercise or grant. Such election shall satisfy the
Participant's obligations under Paragraph 14(a) hereof. In the event that a
Participant makes an election pursuant to this Section 14(b) prior to the
existence of a Public Market for the Common Stock, the delivery by Del Monte of
certificates representing the shares of Common Stock purchased upon such
exercise shall be deferred pending a determination of the exact number of the
shares of Common Stock required to be tendered or withheld.

         (c) Stock Withholding. At the election of the Participant, subject to
the approval of the Committee, when shares of Common Stock are to be issued upon
the exercise of an Option or the grant of a Stock Bonus, Del Monte shall
withhold a number of such shares determined by such Participant, the Fair Market
Value of which at the exercise date the Committee determines to be sufficient to
satisfy the federal, state and local withholding tax requirements, if any,
attributable to such exercise or grant and is not greater than the Participant's
estimated total federal, state and local tax obligations associated with such
exercise or grant. Such election shall satisfy the Participant's obligations
under Paragraph 14(a) hereof.

                                       16
<PAGE>   17

15. Amendment of the Plan

         The Board of Directors may at any time suspend or discontinue the Plan
or revise or amend it in any respect whatsoever; provided, however, that without
approval of the stockholders no revision or amendment shall except as provided
in Section 10 hereof, increase the number of shares of Common Stock that may be
issued under the Plan.

16. No Obligation to Exercise

         The grant to a Participant of an Option, Tandem SAR or Stand-Alone SAR
shall impose no obligation upon such Participant to exercise such Option, Tandem
SAR or Stand-Alone SAR.

17. Transfers Upon Death

         If permitted by the Committee, a Participant may name a beneficiary or
beneficiaries to whom any vested but unpaid Incentive Award shall be paid in the
event of the Participant's death. Each such designation shall revoke all prior
designations by the Participant and shall be effective only if given in a form
and manner acceptable to the Committee. In the absence of any such designation,
any vested benefits remaining unpaid at the Participant's death shall be paid to
the Participant's estate and, subject to the terms of the Plan and of the
applicable Incentive Award agreement, any unexercised vested Incentive Award may
be exercised by the administrator or executor of the Participant's estate. No
such transfer or distribution of any Incentive Award, or the right to exercise
any Incentive Award, shall be effective to bind Del Monte unless the Committee
shall have been furnished with (a) written notice thereof and with a copy of the
will and/or such evidence as the Committee may deem necessary to establish the
validity of the transfer and (b) an agreement by the transferee to comply with
all the terms and conditions of the Incentive Award that are or would have been
applicable to the Participant and to be bound by the acknowledgements made by
the Participant in connection with the grant of the Incentive Award.

18. Expenses and Receipts

         The expenses of the Plan shall be paid by Del Monte. Any proceeds
received by Del Monte in connection with any Incentive Award will be used for
general corporate purposes.

19. Failure to Comply

         In addition to the remedies of Del Monte elsewhere provided for herein,
failure by a Participant to comply with any of the terms and conditions of the
Plan or the agreement executed by such Participant evidencing an Incentive
Award, unless such failure is remedied by such Participant within ten days after
having been notified of such failure by the Committee, shall be grounds for the
cancellation and forfeiture of such Incentive Award, in whole or in part, as the
Committee, in its absolute discretion, may determine.

                                       17
<PAGE>   18

20. Compliance with Rule 16b-3

         Transactions under this Plan with respect to Section 16 Persons are
intended to comply with all applicable conditions of Rule 16b-3 under the
Securities Exchange Act of 1934, as amended. To the extent any provision of the
Plan, Incentive Award agreement or action by the Committee fails to so comply,
it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee.

21. Applicable Law

         The Plan will be administered in accordance with the laws of the State
of California, without reference to its principles of conflicts of law.

22. Effective Date

         The Plan shall commence on May 29, 1998 (the date of adoption of the
Plan), and subject to Paragraph 15 (regarding the Board's right to amend or
terminate the Plan), shall remain in effect thereafter. The Plan shall be
approved by stockholders of Del Monte within twelve months before or after the
effective date of the Plan. However, without further stockholder approval, no
Incentive Stock Option may be granted under the Plan after May 29, 2006.

                                       18

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