Document:

exv10w1

 

Exhibit 10.1

FIRST AMENDMENT

TO

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     THIS FIRST AMENDMENT to Second Amended and Restated Loan and Security Agreement (this
“Amendment”) is entered into this 16th day of December, 2005, by and between Silicon Valley Bank
(“Bank”) and Harmonic, Inc. a Delaware corporation (“Borrower”) whose address is 549 Baltic Way,
Sunnyvale, California 94089.

RECITALS

     A. Bank and Borrower have entered into that certain Second Amended and Restated Loan and
Security Agreement dated as of December 17, 2004 (as the same may from time to time be further
amended, modified, supplemented or restated, the “Loan Agreement”).

     B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

     C. Borrower has requested that Bank amend the Loan Agreement to (i) increase the amount
available to be borrowed under the Committed Revolving Line, (ii) extend the maturity date, and
(iii) make certain other revisions to the Loan Agreement as more fully set forth herein.

     D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be
legally bound, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used but not defined in this Amendment shall have
the meanings given to them in the Loan Agreement.

     2. Amendments to Loan Agreement.

          2.1 Section 2.1.2 (Letters of Credit). Section 2.1.2(a) is amended and restated in
its entirety and replaced with the following:

          (a) Bank will issue or have issued standby Letters of Credit for Borrower’s account in an
amount not to exceed $10,000,000 (each, a “Letter of Credit”). Each Letter of Credit will have an
expiry date of no later than 180 days after the Maturity Date, but Borrower’s reimbursement
obligation will be secured by cash in an amount equal to 105% of the face amount of all such
Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith
on terms acceptable to Bank at any time after the Maturity Date if such Maturity Date is not
extended by Bank or if an Event of Default occurs and continues. Borrower agrees to execute any
further documentation in connection with the Letters of Credit as Bank may reasonably request.

          2.2 Section 2.2 (Equipment Advances) is amended and restated in its entirety and
replaced with the following:

          (a) Through December 15, 2006 (the “Equipment Availability End Date”), Bank will make advances
(each, an “Equipment Advance” and, collectively, “Equipment Advances”) not

 

 

exceeding the Committed Equipment Line. The Equipment Advances may only be used to purchase or
refinance Equipment within 90 days of the invoice date, or, in the case of the initial advance,
purchased on or after September 1, 2004.

          2.3 Section 2.5 (Fees). Section 2.5(a) is amended and restated in its entirety and
replaced with the following:

          (a) Loan Fee. Fully earned, non-refundable loan fees in the amount of
$30,000 for the Committed Revolving Line and in the amount of $2,507.40 for the Committed
Equipment Line are due on or before the December 16, 2005. If, at any time, Borrower
fails to maintain a minimum aggregate amount of $20,000,000 of unrestricted funds on
deposit for 10 consecutive Business Days with SVB Asset Management and/or SVB Securities,
Borrower shall pay an additional $40,000 fee for the Committed Revolving Line and an
additional $3,343.20 fee for the Committed Equipment Line.

          2.4 Section 5.3 (Collateral). The first sentence of Section 5.3(a) is amended and
restated in its entirety and replaced with the following:

          Borrower has rights in the Collateral sufficient to grant a security interest therein, free of
Liens except Permitted Liens.

          2.5 Section 6.2 (Financial Statement, Reports, Certificates). Section 6.2(c) is
amended and restated in its entirety and replaced with the following:

          (c) Borrower shall allow Bank to audit Borrower’s Collateral at Borrower’s expense at
such times and with such frequency as may reasonably be requested by Bank, provided,
however, such audits will be conducted no more often than annually unless an Event of
Default has occurred and is continuing.

          2.6 Section 6.7 (Financial Covenant) is amended and restated in its entirety and
replaced with the following:

          At all times, Borrower shall have unrestricted cash and cash equivalents (net of Credit
Extensions) of no less than $30,000,000.

          2.7 Section 6.8 (Registration of Intellectual Property Rights) is amended and
restated in its entirety and replaced with the following:

          6.8 Protection of Intellectual Property Rights.

          Protect, defend and maintain the validity and enforceability of the Intellectual Property;
promptly advise Bank in writing of material infringements of the Intellectual Property; and not
allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or
dedicated to the public without Bank’s written consent.

          2.8 Section 7.3 (Mergers and Acquisitions) is amended and restated in its entirety
and replaced with the following:

          Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any
other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of
the capital stock or property of another Person, except where (a) no Event of Default has occurred
and is continuing or would result from such action during the term of this Agreement, and (b)
Borrower is the sole surviving entity.

 

 

          2.9 Section 13 (Definitions). The following terms and their respective definitions
set forth in Section 13.1 are amended in their entirety and replaced with the following:

     “Committed Revolving Line” is an Advance or Advances in an aggregate amount of up to
$20,000,000.

     “General Intangibles” means all present and future “general intangibles” as defined in
the California Uniform Commercial Code in effect on the date hereof with such additions to
such term as may hereafter be made, and includes, without limitation, payment intangibles,
royalties, contract rights, goodwill, franchise agreements, purchase orders, customer
lists, route lists, telephone numbers, domain names, claims, income tax refunds, security
and other deposits, options to purchase or sell real or personal property, rights in all
litigation presently or hereafter pending (whether in contract, tort, or otherwise),
insurance policies (including, without limitation, key man, property damage, and business
interruption insurance), payments of insurance and rights to payment of any kind.

          “Maturity Date” is December 15, 2006.

          2.10 Exhibit A to the Loan Agreement is replaced in its entirety by Exhibit A
hereto.

          2.11 Exhibit C to the Loan Agreement is replaced in its entirety by Exhibit B
hereto.

     3. Limitation of Amendments.

          3.1 The amendments set forth in Section 2, above, are effective for the purposes set
forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent
to any amendment, waiver or modification of any other term or condition of any Loan Document, or
(b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under
or in connection with any Loan Document.

          3.2 This Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and agreements set
forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall
remain in full force and effect.

     4. Representations and Warranties. To induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank as follows:

          4.1 Immediately after giving effect to this Amendment (a) the representations and
warranties contained in the Loan Documents are true, accurate and complete in all material respects
as of the date hereof (except to the extent such representations and warranties relate to an
earlier date, in which case they are true and correct as of such date), and (b) no Event of Default
has occurred and is continuing;

          4.2 Borrower has the power and authority to execute and deliver this Amendment and
to perform its obligations under the Loan Agreement, as amended by this Amendment;

          4.3 The organizational documents of Borrower delivered to Bank on the December 17,
2004 remain true, accurate and complete and have not been amended, supplemented or restated and are
and continue to be in full force and effect;

          4.4 The execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly
authorized;

 

 

          4.5 The execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will
not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d)
the organizational documents of Borrower;

           4.6 The execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require
any order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on either Borrower, except as already has been obtained or made; and

          4.7 This Amendment has been duly executed and delivered by Borrower and is the
binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except
as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and equitable principles relating to or
affecting creditors’ rights.

     5. Counterparts. This Amendment may be executed in any number of counterparts and
all of such counterparts taken together shall be deemed to constitute one and the same instrument.

     6. Effectiveness. This Amendment shall be deemed effective upon (a) the due
execution and delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment of
Loan Fees set forth in Section 2.2 hereof, and (c) execution and delivery to Bank the corporate
borrowing certificate.

[Signature page follows.]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered as of the date first written above.

	 	 	 	 	 	 	 	 	 
	BANK	 	 	 	 	 	BORROWER
	 
	 	 	 	 	 	 	 	 
	Silicon Valley Bank	 	 	 	Harmonic, Inc.
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	Name:

	 	/s/Anthony Ley
	 	 	 	Name:
	 	/s/Nick Tsiagkas
	 

	 	 
	 	 	 	 	 	 
	Title:

	 	Chairman, President & CEO
	 	 	 	Title:
	 	 Relationship Manager
	 

	 	 
	 	 	 	 	 	 

 

 

EXHIBIT A

The Collateral consists of all of Borrower’s right, title and interest in and to the following,
whether now owned or hereafter existing:

all Accounts;

all Inventory;

all Equipment;

all Deposit Accounts;

all General Intangibles;

all Investment Property;

all Other Property;

and any and all claims, rights, and interests in any of the above, and all guaranties and security
for any of the above, and all substitutions and replacements for, additions, accessions,
attachments, accessories, and improvements to and proceeds (including proceeds of any insurance
policies, proceeds of proceeds and claims against third parties) of, any and all of the above; and
all Borrower’s Books relating to the foregoing.

Notwithstanding the foregoing, the security interest granted herein shall not extend to and the
term “Collateral” shall not include (a) any license or contract rights to the extent (i) the
granting of a security interest in it would be contrary to applicable law, or (ii) that such rights
are nonassignable by their terms (but only to the extent such prohibition is enforceable under
applicable law) without the consent of the licensor or other party (but only to the extent such
consent has not been obtained); (b) that portion (if any) of the capital stock (or other equity
interests) of such Foreign Subsidiary owned by Borrower that is in excess of 65% of the aggregate
issued and outstanding capital stock (or other equity interests) of such Foreign Subsidiary; (c)
and any property that is subject to a Lien that is otherwise permitted pursuant to clause (c) of
the definition of “Permitted Liens”; and (d) Borrower’s Intellectual Property, and Bank agrees to
execute any instruments or documents necessary to release its interest in such property and to
effect the foregoing.

EXHIBIT B

COMPLIANCE CERTIFICATE

			
	TO:	 	SILICON VALLEY BANK

3003 Tasman Drive

Santa Clara, CA 95054

			
	FROM:	 	HARMONIC INC.

549 Baltic Way

Sunnyvale, CA 94089

The undersigned authorized officer of HARMONIC INC. (“Borrower”) certifies that under the terms and
conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (i)
Borrower is in complete compliance for the period ending ___with all required
covenants, except as noted below, and (ii) all representations and warranties in the Agreement are
true and correct in all material respects on this date. Attached are the required documents
supporting the certification. The undersigned officer certifies that such documents were prepared
in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one
period to the next, except as explained in an accompanying letter or footnotes. The undersigned
officer acknowledges that no borrowings may be requested at any time or date of determination that
Borrower is not in compliance with any of the terms of the Agreement, and that compliance is
determined not just at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 	 	 
	Reporting Covenant

	 	Required
	 	 	 	Complies
	Quarterly financial statements + CC

	 	Quarterly within 45 days
	 	 	 	Yes     No
	Annual financial statements (Audited)

	 	FYE within 120 days
	 	 	 	Yes     No
	Financial Covenant

	 	Required
	 	Actual
	 	Complies
	Maintain at all times:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Unrestricted cash and
	 	 	 	 	 	 
	cash equivalents

	 	$30,000,000
	 	 	 	Yes No

 

 

	 
	Comments Regarding Exceptions: See Attached.

	Sincerely,

	HARMONIC INC.

	 

	 

SIGNATURE

	 

	 

TITLE

	 

	 

DATE

	BANK USE ONLY

	Received by:                                          

	AUTHORIZED SIGNER

	 

	Date:                                                       

	 

	Verified:                                                  

	AUTHORIZED SIGNER

	 

	Date:                                                       

	 

	Compliance Status:               Yes   Noexv10w1

 

Exhibit 10.1

SEVERANCE AGREEMENT

AND RELEASE OF ALL CLAIMS

          This Severance Agreement and Release of All Claims (“Agreement”) is made and entered into by
and between Donald J. Binotto (“Executive”) and Del Monte Corporation (the “Company”) (together,
the “Parties”).

R E C I T A L S

          WHEREAS, Executive is employed by the Company as its Senior Vice President, Operations and
Supply Chain, pursuant to the terms of an Employment Agreement between Executive and the Company
dated September 1, 2004 (“Employment Agreement,” capitalized terms used herein and not otherwise
defined shall have the respective meanings assigned in the Employment Agreement);

          WHEREAS, Executive agreed to voluntarily withdraw from participation in the benefits set forth
in Paragraph 4 (inclusive of all sub-paragraphs therein) of the Employment Agreement and concedes
to the Company’s termination of Executive’s rights thereunder in consideration of the benefits,
terms and conditions set forth herein;

          WHEREAS, the Company is terminating Executive’s employment without cause; and

          WHEREAS, Executive and the Company desire to terminate their employment relationship amicably
and to resolve, fully and finally, all matters relating to such termination and employment
relationship prior to Executive’s departure from the Company.

          NOW, THEREFORE, in consideration of the foregoing recitals and the covenants, agreements and
promises set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties intending to be legally bound, hereby
agree as follows:

A G R E E M E N T

     1.    TERMINATION OF PARAGRAPH 4 OF EXECUTIVE’S EMPLOYMENT AGREEMENT. Executive agrees to
voluntarily withdraw from participation in the benefits set forth in Paragraph 4 (inclusive of all
sub-paragraphs therein) of the Employment Agreement and thereby concedes to the Company’s
termination of Executives’ rights thereunder effective November 17, 2005.

     2.    EXECUTIVE’S TERMINATION. Pursuant to this Agreement, Executive shall be terminated from
each and every position Executive holds as an officer and employee of the

                                   

Executive’s Initials

 

 

Company and its affiliates effective December 22, 2005 (“the Termination Date”). As of the
Termination Date, the Company shall pay Executive any earned, but unpaid Base Salary, accrued but
unused vacation and floating holiday time, and unreimbursed expenses described in Section 2(f) of
the Employment Agreement, and benefits, if any Executive is entitled to receive under the benefit
plans of the Company in which Executive was an eligible participant, less all applicable federal,
state or local taxes and other normal payroll deductions.

     3.    SEVERANCE BENEFITS. In consideration of Executive’s release of claims and Executive’s
other covenants and agreements contained herein, after the later to occur of (i) the Termination
Date or (ii) the date Executive signs this Agreement and delivers it to the Company,
provided that Executive has not exercised any revocation rights as set forth in
Paragraph 7(b) below, the Company shall pay Executive the following as severance benefits
(collectively, the “Severance Benefits”):

          a.     Base Salary and Target Bonus Lump Sum Payment. On or before December 31, 2005, the
Company shall pay Executive an amount equal to one and one-half (1-1/2) times Executive’s Base
Salary and target Bonus for fiscal 2006 ($816,562.50), less all applicable federal, state or local
taxes and other normal payroll deductions, including the health and welfare premiums described in
Paragraph 3(d) below.

          b.     FY 2006 Pro-rated Bonus Lump Sum Payment. On or before December 31, 2005, the
Company shall pay Executive a pro-rata portion of his Fiscal Year 2006 target Bonus based on
Executive’s Termination Date in a lump sum, less all applicable federal, state or local taxes and
other normal payroll deductions.

          c.     Executive Perquisite Plan Lump Sum Payment. On or before December 31, 2005, the
Company shall pay Executive an amount equal to 18 months’ participation in the Company’s Executive
Perquisite Plan at the level Executive participated in as of the Termination Date, less all
applicable federal, state or local taxes and other normal payroll deductions.

          d.     Health and Welfare Benefit Continuation. The Company shall continue Executive’s
participation in the Company’s health and welfare benefit plans (except for disability plans), at
an equivalent level of participation as Executive had during the twelve (12) month-period prior to
Executive’s Termination Date, until the earlier of (i) eighteen (18) months after the Executive’s
Termination date, or (ii) such time as Executive is covered by comparable benefit plans or programs
of a subsequent employer. Executive shall immediately notify the Company of his benefit coverage
by a subsequent employer within sixty (60) days after the initiation of such coverage. After the
expiration of Executive’s benefit coverage with the Company, Executive will be provided information
and forms to elect COBRA (Consolidated

                                   

Executive’s Initials

2

 

Omnibus Budget Reconciliation Act of 1985) continuation coverage under the Company medical,
vision and dental plans in which Executive participates. The entire cost to continue Executive’s
health and welfare coverage for the 18 months following the Termination Date shall be deducted from
Executive’s Base Salary and Target Bonus Lump Sum Payment described in Paragraph 3(a) above. In
the event Executive is covered by the health and welfare benefit plans or programs of a subsequent
employer prior to the expiration of the 18 month period, the Company shall reimburse Executive for
any premium overpayment.

          e.     Pro-rated Vesting of Stock and Stock Option Awards. Executive shall vest in any
stock or stock option grants awarded by the Company to Executive pursuant to the Del Monte Foods
Company 2002 Stock Incentive Plan, on a pro-rated basis, as calculated by the Company and
illustrated in Exhibit A, as of Executive’s Termination Date. Upon vesting of Executive’s
pro-rated stock option award(s), Executive shall have ninety (90) days from those vesting dates,
also illustrated in Exhibit A, to exercise such stock options. The value of any pro-rated stock
option award shall be based on the exercise price and the fair market value at the time of
exercise.

          f.     Outplacement. The Company shall provide Executive with not less than eighteen (18)
months of executive-level outplacement services at the Company’s expense; provided
however, the expense for such outplacement services in any calendar year shall not exceed
eighteen percent (18%) of the amount equal to Executive’s highest Base Salary during the twelve
(12) month period prior to the Termination Date and the target Bonus for the year in which
termination occurs.

     4.     STOCK OPTIONS / RESTRICTED STOCK. Except as set forth in Paragraph 3(e) above, any
vested or unvested stock options or restricted stock grants awarded to Executive pursuant to the
Company stock incentive plan shall be subject to the terms and conditions of the applicable stock
option plans and stock or stock option agreements.

     5.     RETIREMENT, SAVINGS, DEFERRED COMPENSATION. Effective as of Executive’s Termination
Date, Executive shall cease to participate in any Company sponsored retirement plans. Any
distribution of benefits to Executive pursuant to his participation in any retirement, pension,
savings, or deferred compensation plan sponsored by the Company shall be subject to the terms and
conditions of the applicable plans.

     6.     RELEASE AND WAIVER.

          a.     In consideration of the Severance Benefits paid to Executive pursuant to Paragraph 3 above,
Executive hereby forever releases and discharges the Company and its predecessors, affiliates,
subsidiaries, successors and assigns, as well as each of their respective

                                   

Executive’s Initials

3

 

past and present officers, directors, employees, agents, insurance companies, attorneys and
stockholders (collectively, the “Released Parties”), from any and all claims, charges, complaints,
liens, demands, causes of action, obligations, damages and liabilities, known or
unknown, suspected or unsuspected, that Executive had, now has or
may hereafter claim to have against the Released Parties arising out of or relating in any way to
Executive’s hiring by, employment with or separation from the Company or otherwise relating to any
of the Released Parties from the beginning of time to the later to occur of (i) the Termination
Date, and (ii) the date Executive signs this Agreement.

          b.     This Release specifically extends to, without limitation, claims or causes of action for
wrongful termination, impairment of ability to compete in an open market, breach of an express or
implied contract, breach of any collective bargaining agreement, breach of the covenant of good
faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander,
infliction of emotional distress, disability, loss of future earnings, and any claims under the
California state constitution, the United States Constitution, and applicable state and federal
fair employment laws, federal equal employment opportunity laws, and federal and state labor
statues and regulations, including, the Civil Rights Act of 1964, as amended, the Fair Labor
Standards Act, as amended, the National Labor Relations Act, as amended, the Labor-Management
Relations Act, as amended, the Worker Adjustment and Retraining Notification Act of 1988, as
amended, the Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973,
as amended, the Employee Retirement Income Security Act of 1974, as amended, the Age Discrimination
in Employment Act of 1967, as amended (“ADEA”), the Family and Medical Leave Act and the
Pennsylvania Human Relations Act, as amended, and any related attorney’s fees, costs and expenses.

     7.     REVIEW AND REVOCATION PERIOD.

          a.     Executive acknowledges and agrees that he is waiving his rights under the ADEA and,
accordingly, he has at least twenty-one (21) calendar days after receipt of this Agreement to
consider whether to sign it, and the Company has advised Executive that he may consult with an
attorney of his choosing prior to signing and returning this Agreement. Executive further
acknowledges and agrees that he will not sign this Agreement until the later to occur of (i) the
expiration of the twenty-one (21) day period or (ii) the Termination Date.

          b.     Executive further acknowledges that he may change his mind and revoke this Agreement at any
time during the seven (7) calendar days after he signs the Agreement, in which case none of the
provisions of this Agreement will have any effect. Executive acknowledges and agrees that if he
wishes to revoke this Agreement, he must do so in writing, and that such revocation must be signed
by Executive and received by the Company at its

                                   

Executive’s Initials

4

 

headquarters located at One Market @ The Landmark, San Francisco, California 94105 to the
attention of Mark Buxton, Vice President, Human Resources, no later than 5:00 P.M. Pacific Time on
the seventh (7th) day after Executive has signed the Agreement. Executive acknowledges
and agrees that, in the event Executive revokes this Agreement, he shall have no right to receive
any of the Severance Benefits described under Paragraph 3.

     8.     CONTINUING OBLIGATIONS. Executive hereby acknowledges and affirms his continuing
obligations to the Company pursuant to Sections 6, 7 and 8 of the Employment Agreement.

     9.     NON-DISPARAGEMENT. Executive agrees that he shall not, at any time, make, directly or
indirectly, any oral or written, public or private statements that are disparaging of the Company
or any of its subsidiaries, affiliates, successors, assigns, including any of their present or
former officers, directors, agents, or employees. Nor shall Executive make any oral or written,
public or private statements that disparage or otherwise constitute trade libel of the Company’s or
its subsidiaries’, affiliates’, successors’ or assigns’ products or services. The Company agrees
to communicate to its executives the Company’s policy that such executives not make any public or
private statements that are disparaging of Executive or his performance at the Company.

     10.     REPRESENTATIONS. Executive makes the following representations, each of which is an
important consideration to the Company’s willingness to enter into this Agreement with Executive:

          a.     Executive acknowledges and represents that the Company is not entering into this Agreement
because it believes that Executive has any cognizable legal claim against the Released Parties.
Executive agrees that the purpose of this Agreement is to provide him with further assistance in
the transition of his employment status, while at the same time protecting the Released Parties
from the expense and disruption which are often incurred in defending against even a groundless
lawsuit. If Executive elects not to sign this Agreement or revokes this Agreement pursuant to
Paragraph 7(b) above, the fact that this Agreement was offered in the first place will not be
understood as an indication that the Released Parties believed Executive was discriminated against
or treated unlawfully in any respect.

          b.     Executive represents that he has not filed any claim, charge, grievance, complaint, or
action in or with any federal, state, or local court or administrative agency or before any other
tribunal against the Released Parties.

          c.     Executive acknowledges and agrees that the Severance Benefits provided under Paragraph 3
above constitute consideration beyond that which, but for the release and

                                   

Executive’s Initials

5

 

covenants set forth in this Agreement, the Company otherwise would not be obligated to
provide, nor would Executive otherwise be entitled to receive.

          d.     Executive acknowledges and agrees that except as provided above, Executive shall not be
entitled to receive any other compensation or benefits of any sort from the Company including,
salary, bonuses, stock (except as provided in Paragraph 4 above), vacation pay, holiday pay, sick
leave, short-term or long-term disability benefits, health care continuation coverage (except as
provided under federal or state law), retirement (except as provided in Paragraph 5 above),
insurance, tax reimbursement, reimbursement for taxes or penalties imposed by the American Jobs
Creation Act of 2004, benefits otherwise payable under any of the Company’s severance plans,
programs or policies, or any other form of compensation or benefits from the Released Parties at
any time.

          e.     Executive represents and warrants that he has returned to the Company all documents, data,
records, keys, credit cards, identification badges, proprietary or confidential information and
other physical property that came into Executive’s possession during his employment, whether
acquired from the Company or from any other source.

          f.     Executive acknowledges that, prior to signing this Agreement, he read and understood each
and every provision in this Agreement and that he had the opportunity to consult with an attorney
regarding the effect of each and every provision of this Agreement. Executive further acknowledges
that he knowingly and voluntarily entered into this Agreement with complete understanding of all
relevant facts, and that he was neither fraudulently induced nor coerced to enter into this
Agreement.

     11.    [Paragraph intentionally deleted.]

     12.     SEVERABILITY. Should any provision of this Agreement be declared or determined by any
court of competent jurisdiction to be wholly or partially illegal, invalid, or unenforceable, it is
specifically hereby agreed that the legality, validity, and enforceability of the remaining parts,
terms, or provisions of this Agreement shall not in any way be affected thereby; rather, said
illegal, invalid, or unenforceable part, term, or provision shall be deemed not to be a

                                   

Executive’s Initials

6

 

part of this Agreement. Nor shall any such determination of illegality, invalidity, or
unenforceability of any part, term or provision of this Agreement by a particular court affect the
legality, validity or enforceability of any of the terms or provisions of this Agreement in any
other jurisdictions, it being intended that all rights and obligations of the Parties hereunder
shall be enforceable to the fullest extent permitted by law.

     13.     THIRD-PARTY BENEFICIARIES. This Agreement is solely for the benefit of Executive and
the Released Parties and shall not inure to the benefit of any other third parties.

     14.     NO WAIVERS; AMENDMENTS. The failure of either party to this Agreement to enforce any
of its terms, provisions or covenants shall not be construed as a waiver of the same or of the
right of such party to enforce the same except for Executive’s failure to revoke this Agreement
within seven (7) days of its execution as set forth in Paragraph 7(b) above. Waiver by the Company
of any breach or default by Executive of any term, provision or covenant of this Agreement shall
not operate as a waiver of any other breach or default by Executive. This Agreement may not be
amended or modified other than by a written instrument signed by the Company and Executive.

     15.     DESCRIPTIVE HEADINGS. The Paragraph headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

     16.     COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument.

     17.     GOVERNING LAW. This Agreement and all rights, duties and remedies hereunder shall be
governed by and construed and enforced in accordance with the laws of the Commonwealth of
Pennsylvania, without reference to its choice of law rules.

     18.     ENTIRE AGREEMENT. This Agreement sets forth the entire agreement and understanding of
the Parties relating to the subject matter hereof and merges and supersedes all prior discussions,
agreements and understandings of every kind and nature between the Parties hereto and neither party
shall be bound by any term or condition other than as expressly set forth or provided for in this
Agreement; provided that, Sections 5 (Indemnification), 6 (Proprietary
Information), 7 (Non-competition), 8 (Noninterference), 9 (Injunctive Relief) and 11
(Miscellaneous) of Executive’s Employment Agreement shall survive the termination of Executive’s
employment, and remain in full force and effect as provided by the terms therein.

                                   

Executive’s Initials

7

 

          IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date set forth below:

EXECUTIVE

	 	 	 
	 
	 	 
	By: /s/ Donald J. Binotto                                   

        Donald J. Binotto

	 	Dated: December 22, 2005                                   
	 
	 	 
	 
	 	 
	DEL MONTE CORPORATION
	 	 
	 
	 	 
	 
	 	 
	By: /s/ David L. Meyers                                   

        David L. Meyers

        Executive Vice President

        Administration & Chief Financial Officer

	 	Dated: December 22, 2005                                   

                                   

Executive’s Initials

8

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