Document:

exv10w2

 

 Exhibit 10.2

EMPLOYMENT AGREEMENT

          This Employment Agreement (the “Agreement”) is entered into as of
September 1, 2004, by and between DEL MONTE CORPORATION, a Delaware
corporation, with its principal place of business in San Francisco, California
(the “Corporation”) and DAVID L. MEYERS, an individual residing in the State of
California (“Executive”).

RECITALS

          WHEREAS, the Corporation desires to employ Executive on the terms and
conditions set forth herein, and Executive desires to be employed by the
Corporation on such terms and conditions.

          NOW, THEREFORE, in consideration of the foregoing recital, the promises,
covenants and agreements of the parties, and the mutual benefits they will gain
by the performance of the promises herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties do hereby agree as follows:

AGREEMENT

     1. Term of Employment; Duties.

          (a) Term of Employment. The Corporation agrees to employ Executive as its
Executive Vice President, Administration and Chief Financial Officer (“CFO”)
and Executive hereby accepts such employment, subject to the terms and
conditions set forth herein. The term of employment of Executive under this
Agreement shall begin as of the date hereof and continue until terminated
pursuant to Section 4 hereof. Notwithstanding the foregoing, the provisions of
Sections 4(i) (Ongoing Obligations), 5 (Indemnification), 6 (Proprietary
Information Obligations), 7 (Noninterference), 9 (Injunctive Relief), and 11
(Miscellaneous) shall survive the termination of this Agreement.

          (b) Duties. Executive shall serve in an executive capacity and shall
perform such duties as are consistent with Executive’s position as CFO and as
may be reasonably required by the Del Monte Corporation Board of Directors (the
“Board”). In such position, Executive shall (i) plan, direct and control the
organization’s overall financial plans and policies, accounting practices, and
relationships with leading institutions, shareholders and the financial
community; (ii) direct treasury, budgeting, tax accounting, information
systems, real estate and insurance activities; (iii) provide direction and
decisions relating to strategic planning of the company; (iv) direct legal
activities; (v) plan, direct and control various administration functions as it
relates to Human Resources, labor relations and corporate affairs; and (vi)
report to the Chief Executive Officer (“CEO”).

 

 

          (c) Exclusive Performance of Duties. While employed by the Corporation,
Executive agrees that Executive shall devote substantially all of Executive’s
business time and best efforts solely and exclusively to the performance of
Executive’s duties hereunder and to the business and affairs of the
Corporation, whether such business is operated directly by the Corporation or
through any affiliate of the Corporation. Executive further agrees that while
employed by the Corporation, Executive will not, directly or indirectly,
provide services on behalf of any competing corporation, company, limited
liability company, partnership, joint venture, consortium, or other competing
entity or person, whether as an employee, consultant, independent contractor,
agent, sole proprietor, partner, joint venturer, creditor, corporate officer or
director; nor shall Executive acquire by reason of purchase during the term of
Executive’s employment with the Corporation the ownership of more than one
percent (1%) of the outstanding equity interest in any such competing entity.
For purposes of this Agreement, a “competing” entity is one engaged in any of
the businesses in which the Corporation is engaged during Executive’s
employment with the Corporation, which includes without limitation: (i) dry and
canned pet food and pet snacks business in the United States and Canada, (ii)
specialty pet food business conducted worldwide, (iii) ambient tuna business in
North America, (iv) other ambient seafood business involving products marketed
in North America, (v) retail private label soup and retail private label gravy
businesses in the United States, (vi) broth business in the United States,
(vii) infant feeding business in the United States, and (viii) the manufacture
and sale of processed fruits and vegetables, pineapple products and tomato
products in the United States and South America (the “Businesses”). Subject to
the foregoing, Executive may serve on boards of directors of non-competing
unaffiliated corporations, subject to advance approval by the CEO, and may
serve on the boards of charitable organizations.

          (d) Corporation Policies. The employment relationship between the parties
shall be governed by the general employment policies and practices of the
Corporation, including, without limitation, the Del Monte Foods Standards of
Business Conduct; provided, however, that when the terms of this Agreement
differ from or are in conflict with the Corporation’s general employment
policies or practices, this Agreement shall control.

     2. Compensation and Benefits.

          (a) Salary. Executive shall receive for Executive’s services rendered
hereunder an annual base salary of Four Hundred Fifty Thousand Dollars
($450,000), as adjusted from time to time by the Compensation Committee of the
Board (the “Base Salary”), payable on a semi-monthly basis in twenty-four (24)
equal installments, less all applicable federal, state or local taxes and other
normal payroll deductions.

          (b) Annual Bonus. While a full-time employee of the Corporation,
Executive shall be entitled to participate in the Del Monte Foods Company’s
Annual Incentive Plan or any applicable successor plan (the “AIP”) pursuant to
the terms and conditions set forth therein. Executive shall be eligible to
receive an annual AIP bonus (the “Bonus”) targeted at 70% of Executive’s Base
Salary, as adjusted from time to time

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in accordance with the AIP. AIP awards are not guaranteed and actual
payment of the Bonus is subject to the performance of the Corporation and Del
Monte Foods Company and Executive’s individual achievements.

          (c) Employee Welfare Benefits. During Executive’s employment with the
Corporation, Executive shall be entitled to participate in any group insurance
for hospitalization, medical, dental, vision, prescription drug, accident,
disability, life or similar plan or program of the Corporation now existing or
established hereafter to the extent that Executive is eligible under the
general provisions thereof. The Corporation may, in its sole discretion and
from time to time, establish additional senior management benefit programs as
it deems appropriate. Executive understands that any such plans may be
modified or eliminated in the discretion of the Corporation in accordance with
applicable law.

          (d) Pension and Retirement Benefits. During Executive’s employment with
the Corporation, Executive shall be entitled to participate in any pension,
401(k) and retirement plans of the Corporation now existing or established
hereafter to the extent that Executive is eligible under the general provisions
thereof. The Corporation may, in its sole discretion and from time to time,
establish additional senior management benefit programs as it deems
appropriate. Executive understands that any such plans may be modified or
eliminated in the discretion of the Corporation in accordance with applicable
law.

          (e) Vacation. Executive shall be entitled to a period of annual paid
vacation time equal to not less than six (6) weeks per year as adjusted from
time to time in accordance with the Corporation’s vacation policy. The days
selected for Executive’s vacation shall be mutually agreeable to the
Corporation and Executive. Executive’s eligibility to carryover or to be paid
for any portion of Executive’s accrued, but unused vacation shall be subject to
the Corporation policy applicable to employees at a similar level in effect
during the term of this Agreement.

          (f) Expenses. Subject to compliance with the Corporation’s normal and
customary policies regarding substantiation and verification of business
expenses, the Corporation shall directly pay or shall fully reimburse Executive
for all customary and reasonable expenses incurred by Executive for promoting,
pursuing or otherwise furthering the business of the Corporation and its
affiliates.

          (g) Perquisites and Supplemental Benefits. During Executive’s employment
with the Corporation, Executive shall be entitled to participate in the
Corporation’s Executive Perquisite Plan, subject to the terms and conditions
thereof, and such other perquisites and supplemental benefits, if any, as may
be approved from time to time by the Compensation Committee of the Board.
Executive understands that any such plans may be modified or eliminated in the
discretion of the Corporation in accordance with applicable law.

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     3. Stock Options.

          (a) During Executive’s employment with the Corporation, Executive shall be
eligible to participate in the applicable stock and stock option plans of Del
Monte Foods Company. The terms and conditions of any stock or stock option
agreement entered into by Executive and Del Monte Foods Company from time to
time are hereby incorporated into this Agreement.

          (b) From time to time during Executive’s employment with the Corporation,
the Board (or a committee thereof) shall evaluate the performance of management
of the Corporation and determine whether it is appropriate to grant any
additional stock and/or stock options to management, including without
limitation, Executive. The Board (or such committee) shall be under no
obligation to grant any such stock or stock options to Executive (or any other
member of management), but will take into consideration industry standards for
stock and stock option issuances to CFOs in similar circumstances.

     4. Termination of Employment.

          (a) Termination Upon Death. If Executive dies during Executive’s
employment with the Corporation, the Corporation shall pay to Executive’s
estate, or other designated beneficiary(ies) as shown in the records of the
Corporation, any earned and unpaid Base Salary as of Executive’s employment
termination date (which, for purposes of this Section 4(a), shall be the date
of Executive’s death); accrued but unused vacation time as of the end of the
month in which Executive dies; the amount of any unreimbursed expenses
described in Section 2(f), which were incurred by Executive before the date of
Executive’s death; and benefits, if any, that Executive’s estate, or other
designated beneficiary(ies), is then entitled to receive under the benefit
plans of the Corporation in which Executive was an eligible participant.
Additionally, the Corporation shall pay to Executive’s estate, or other
designated beneficiary(ies), at the end of the fiscal year in which Executive’s
termination of employment occurs, a pro rata portion of Executive’s target
Bonus for the year in which Executive’s termination of employment occurs,
prorated for Executive’s actual employment period during such year and adjusted
for performance. All of the foregoing payments and benefits shall be paid less
all applicable federal, state or local taxes and other normal payroll
deductions, if any. Except as expressly provided in this Section 4(a), the
Corporation shall have no obligation to make any other payment, including
severance or other compensation of any kind or payment in lieu of notice, and
all other benefits provided by the Corporation to Executive under this
Agreement or otherwise shall cease as of Executive’s termination date.

          (b) Termination Upon Disability. The Corporation may terminate
Executive’s employment in the event Executive suffers a disability that renders
Executive unable, as determined in good faith by the Board, to perform the
essential functions of Executive’s position, even with reasonable
accommodation, for six (6) consecutive months; provided that, any dispute as to
whether or not Executive is so disabled shall be resolved by a physician
reasonably acceptable to Executive and the

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Corporation, whose determination shall be final and binding upon both
Executive and the Corporation. In the event that Executive’s employment is
terminated pursuant to this Section 4(b), Executive shall receive payment for
any earned and unpaid Base Salary as of Executive’s employment termination date
(which, for purposes of this Section 4(b), shall be the date specified by the
Board); accrued but unused vacation time as of the end of the month in which
the termination of employment for disability occurs; the amount of any
unreimbursed expenses described in Section 2(f), which were incurred by
Executive before Executive’s termination date; and benefits, if any, that
Executive is then entitled to receive under the benefit plans of the
Corporation in which Executive was an eligible participant. In addition, after
Executive’s termination date, Executive shall receive long term disability
benefits under the applicable benefit plans of the Corporation to the extent
Executive qualifies for such benefits. In the event that Executive’s
employment is terminated as a result of a determination pursuant to this
Section 4(b), and provided that Executive has executed a general release in a
form and substance satisfactory to the Corporation, the Corporation also shall
provide to Executive as severance the payment of an 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 such termination
occurs, payable in equal installments on the Corporation’s regular pay schedule
over a period of twelve (12) months. All of the foregoing payments and
benefits shall be paid less all applicable federal, state or local taxes and
other normal payroll deductions, if any. Except as expressly provided in this

Section 4(b), the Corporation shall have no obligation to make any other
payment, including severance or other compensation of any kind or payment in
lieu of notice, and all other benefits provided by the Corporation to Executive
under this Agreement or otherwise shall cease as of Executive’s termination
date.

          (c) Voluntary Termination. Executive may voluntarily terminate
Executive’s employment with the Corporation at any time. In the event that
Executive’s employment is terminated under this Section 4(c), Executive shall
receive payment for any earned and unpaid Base Salary as of Executive’s
voluntary employment termination date (which, for purposes of this Section
4(c), shall be the date Executive ceases to perform Executive’s duties
hereunder as stated in Executive’s letter of resignation or as specified by the
Board); accrued but unused vacation time as of Executive’s voluntary employment
termination date; the amount of any unreimbursed expenses described in Section
2(f), which were incurred by Executive before Executive’s voluntary employment
termination date; and benefits, if any, Executive is then entitled to receive
under the benefit plans of the Corporation in which Executive was an eligible
participant. All of the foregoing payments and benefits shall be paid less all
applicable federal, state or local taxes and other normal payroll deductions,
if any. Except as expressly provided in this Section 4(c), the Corporation
shall have no obligation to make any other payment, including severance or
other compensation of any kind or payment in lieu of notice, and all other
benefits provided by the Corporation to Executive under this Agreement or
otherwise shall cease as of Executive’s termination date.

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          (d) Termination for Cause.

               (i) Termination; Payment of Accrued Benefits. The Board may terminate
Executive’s employment with the Corporation at any time for “Cause” (as defined
below). In the event that Executive’s employment is terminated for Cause under
this Section 4(d), Executive shall receive payment for all earned but unpaid
Base Salary as of Executive’s employment termination date (which, for purposes
of this Section 4(d), shall be the date specified by the Board); accrued but
unused vacation time as of Executive’s termination date; the amount of any
unreimbursed expenses described in Section 2(f), which were incurred by
Executive before Executive’s termination date; and benefits, if any, Executive
is then entitled to receive under the benefit plans of the Corporation in which
Executive was an eligible participant. All of the foregoing payments and
benefits shall be paid less all applicable federal, state or local taxes and
other normal payroll deductions. Except as expressly provided in this Section
4(d), the Corporation shall have no obligation to make any other payment,
including severance or other compensation of any kind or payment in lieu of
notice, and all other benefits provided by the Corporation to Executive under
this Agreement or otherwise shall cease as of Executive’s termination date.

               (ii) Definition of Cause. For purposes of this Agreement, the Corporation
shall have “Cause” to terminate Executive’s employment upon the occurrence of
any of the following: (A) criminal dishonesty, (B) deliberate and continual
refusal to perform employment duties on substantially a full-time basis or to
act in accordance with any specific lawful instructions given to the Executive
in connection with the performance of his duties for the Corporation or any of
its subsidiaries or affiliates, unless, in either case, (1) the Executive
became aware less than ninety (90) days prior thereto of an event constituting
Good Reason or (2) the Executive is disabled, or (C) deliberate misconduct
which is reasonably likely to be materially damaging to the Corporation without
a reasonable good faith belief by the Executive that such conduct was in the
best interests of the Corporation.

          (e) Termination Without Cause.

               (i) Termination; Payment of Accrued Benefits. The Corporation at any time
without prior written notice may terminate Executive’s employment without
cause. In the event Executive’s employment is terminated without cause,
Executive shall receive payment for all earned but unpaid Base Salary as of
Executive’s termination date (which, for purposes of this Section 4(e), shall
be the date specified by the Board); accrued but unused vacation time as of
Executive’s termination date; the amount of any unreimbursed expenses described
in Section 2(f), which were incurred by Executive before Executive’s
termination date; and benefits, if any, Executive is then entitled to receive
under the benefit plans of the Corporation in which Executive was an eligible
participant.

               (ii) Payment of Severance Benefits. In the event Executive’s employment
is terminated without cause under this Section 4(e), and provided that

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Executive has executed a general release in a form and substance
satisfactory to the Corporation, the Corporation also shall provide to
Executive as severance:

                    (A) the payment of an amount equal to two (2) times Executive’s Base
Salary and target Bonus for the year in which such termination of employment
occurs (or, if greater, the amount of the Bonus for next preceding year of
full-time employment), payable in equal installments on the Corporation’s
regular pay schedule over a period of eighteen (18) months (“Salary
Continuation”), provided that, in the event of Executive’s death subsequent to
the commencement of payments pursuant to this sub-paragraph 4(e)(ii)(A), the
balance of the Salary Continuation amount will be paid to Executive’s estate,
or other designated beneficiary(ies) as shown in the records of the
Corporation;

                    (B) the payment to Executive, at the end of the fiscal year in which
Executive’s termination of employment occurs, of a pro rata portion of
Executive’s target Bonus for the year in which Executive’s termination occurs,
prorated for Executive’s actual employment period during such year and adjusted
for performance and paid within thirty (30) days of Executive’s termination
date;

                    (C) continuation of Executive’s participation in the Corporation’s health
and welfare benefits (other than disability benefits) and retirement benefits
until thirty-six (36) months following Executive’s termination; provided that,
if during such time Executive is precluded from participating in a plan by its
terms or applicable law, or if the Corporation for any reason ceases to
maintain such plan, the Corporation shall provide Executive with benefits which
are no less favorable in the aggregate to those which Executive would have
received under such plan had Executive been eligible to participate therein or
had such plan continued to be maintained by the Corporation; provided further
that, following the termination of any health coverage provided to Executive
under this Section 4(e)(ii)(C), the Corporation shall use its best efforts to
provide a method for Executive to participate in the Corporation’s medical
plans at Executive’s own expense until the respective dates that Executive and
Executive’s spouse are eligible for Medicare benefits, so long as the
Corporation’s medical plans remain self-insured and/or the Corporation’s
medical insurer agrees to provide for Executive’s continued participation in
the Corporation’s medical plans.

                    (D) continuation of Executive’s participation in any executive perquisites
applicable to Executive until twelve (12) months following Executive’s
termination date;

                    (E) during the first six (6) months following Executive’s termination
date, Executive will, at his option, be provided with an office and secretarial
services during regular business hours at a location selected by Executive
subject to the consent of the Corporation, which shall not be unreasonably
withheld. Except as may be specifically approved by the Board, Executive will
not be provided with the use of any other Corporation facility or services
during this six (6)-month period or at any time thereafter;

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                    (F) Executive shall vest in any stock or stock option grants awarded to
Executive pursuant to the Del Monte Foods Company 2002 Stock Incentive Plan, or
any successor plan, on a pro-rated basis as of Executive’s termination date;
provided, however, Executive shall not be entitled to take ownership or
otherwise receive settlement of such pro-rated stock award(s) until the end of
the performance period associated with that stock award; provided, further,
that, Executive shall not be entitled to exercise, take ownership or otherwise
receive settlement of such pro-rated stock option award(s) until the scheduled
vest date associated with that tranche of the stock option award(s); provided,
further, that, upon vesting of Executive’s pro-rated stock option award(s),
Executive shall have ninety (90) days from that vesting date 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; and

                    (G) the provision of not less than eighteen (18) months of executive-level
outplacement services at the Corporation’s expense; provided, however, the
expense for such 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 such termination occurs.

All of the foregoing payments and benefits in this Section 4(e) shall be paid
less all applicable federal, state or local taxes and other normal payroll
deductions, if any. Except as expressly provided in this Section 4(e), the
Corporation shall have no obligation to make any other payment, including
severance or other compensation of any kind or payment in lieu of notice, and
all other benefits provided by the Corporation to Executive under this
Agreement or otherwise shall cease as of Executive’s termination date.

          (f) Termination for Good Reason.

               (i) Termination; Payment of Accrued Benefits and Severance.
Notwithstanding anything in this Section 4 to the contrary, Executive may
voluntarily terminate Executive’s employment with the Corporation for “Good
Reason” (as defined below). In the event Executive’s employment is terminated
for Good Reason under this Section 4(f), Executive shall receive the benefits
set forth in Section 4(e), subject to the terms and conditions set forth
therein, including, without limitation, Executive ‘s execution of a general
release in a form and substance satisfactory to the Corporation, upon or within
ninety (90) days following the occurrence of an event constituting “Good
Reason.” All of the foregoing payments and benefits shall be paid less all
applicable federal, state or local taxes and other normal payroll deductions,
if any. Except as expressly provided in this Section 4(f), the Corporation
shall have no obligation to make any other payment, including severance or
other compensation of any kind or payment in lieu of notice, and all other
benefits provided by the Corporation to Executive under this Agreement or
otherwise shall cease as of Executive’s termination date.

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               (ii) Definition of Good Reason. For purposes of this Agreement, Executive
shall have “Good Reason” to terminate Executive’s employment upon the
occurrence of any of the following: (A) a material adverse change in
Executive’s position causing it to be of materially less stature,
responsibility, or authority without Executive’s written consent, and such a
materially adverse change shall in all events be deemed to occur if Executive
no longer serves as CFO, unless Executive consents in writing to such change;
(B) a reduction, without Executive’s written consent, in Executive’s Base
Salary or the Bonus Executive is eligible to earn under the AIP (or successor
plan thereto), or Executive’s incentive or equity opportunity under any
material incentive or equity program of the Corporation, provided, however,
that nothing herein shall be construed to guarantee Executive’s Bonus for any
year if the applicable performance targets are not met; and provided further
that it shall not constitute Good Reason hereunder if the Corporation makes an
appropriate pro rata adjustment to the applicable Bonus and targets under the
AIP or any successor plan in the event of a change in the Corporation’s fiscal
year; (C) a material reduction without Executive’s consent in the aggregate
health and welfare benefits provided to Executive pursuant to the health and
welfare plans, programs and arrangements in which Executive is eligible to
participate; or (D) the failure of the Corporation to obtain a satisfactory
agreement from any successor to assume and agree to perform this Agreement.
Unless Executive provides written notification of an event described in
sub-clauses (A) through (D) above within ninety (90) days after Executive knows
or has reason to know of the occurrence of any such event, Executive shall be
deemed to have consented thereto and such event shall no longer constitute Good
Reason for purposes of this Agreement. If Executive provides such written
notice to the Corporation, the Corporation shall have ten (10) business days
from the date of receipt of such notice to affect a cure of the event described
therein and, upon cure thereof by the Corporation to the reasonable
satisfaction of Executive, such event shall no longer constitute Good Reason
for purposes of this Agreement.

          (g) Termination Upon Change of Control.

               (i) Termination; Payment of Severance. In the event of Executive’s
“Termination Upon Change of Control” (as defined below), Executive shall
receive the benefits set forth in Section 4(e), subject to the terms and
conditions set forth therein, including without limitation Executive’s
execution of a release in a form and substance satisfactory to the Corporation;
provided, however, that the payment set forth in Section 4(e)(ii)(A) shall be
an amount equal to two (2) times Executive’s Base Salary and target Bonus and
made in a lump sum paid within thirty (30) days of Executive’s termination
date, and not in installments over an eighteen (18) month period as provided in
Section 4(e)(ii)(A); provided, further, that all of Executive’s outstanding
stock and stock option awards shall vest and become immediately exercisable as
provided in the Del Monte Foods Company 2002 Stock Incentive Plan, or any
successor plan.

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               (ii) Gross-Up Payment. In the event the lump sum payment set forth in
Section 4(g)(i) above (the “Payment”) is an “excess parachute payment” within
the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”), and would be subject to the excise tax imposed by Section 4999 of
the Code (the “Excise Tax”), then the Company shall pay Executive an additional
cash payment (the “Gross-Up Payment”) in an amount such that after payment by
Executive of all taxes, including, without limitation, any income taxes and
Excise Tax imposed upon the Gross-Up Payment, Executive shall retain an amount
equal to the Excise Tax imposed upon the Payment and the Gross-Up Payment. The
Gross-Up Payment shall be subject to and paid net of any applicable
withholding. The amount of any Gross-Up Payment or Excise Tax shall be
reasonably determined by the Company after consultation with its legal and tax
advisors.

               (iii) Definition of Termination Upon Change of Control. For purposes of
this Section 4(g) “Termination Upon Change of Control” means (A) the
termination of Executive’s employment by the Corporation without cause during
the period commencing on the date the “Change of Control” (as defined in the
Del Monte Foods Company 2002 Stock Incentive Plan, or any successor stock
incentive plan) occurs and ending on the date which is two (2) years after the
Change of Control; or (B) any resignation by Executive for Good Reason within
two (2) years after the occurrence of a Change of Control; but (C) “Termination
Upon Change of Control” shall not include any termination of Executive’s
employment by the Corporation for Cause, as a result of the death or disability
of Executive, or as a result of the voluntary termination of Executive’s
employment for reasons other than Good Reason.

               (iv) Except as expressly provided in this Section 4(g), the Corporation
shall have no obligation to make any other payment, including severance or
other compensation of any kind or payment in lieu of notice, and all other
benefits provided by the Corporation to Executive under this Agreement or
otherwise shall cease as of Executive’s termination date. Any amounts due
Executive under this Section 4(g) are in the nature of severance payments or
liquidated damages, which contemplate both direct damages and consequential
damages that may be suffered as a result of Executive’s termination of
employment, and are not in the nature of a penalty.

          (h) At-Will Employment. Executive understands and agrees that Executive’s
employment with the Corporation is at-will, which means that either Executive
or the Corporation may, subject to the terms of this Agreement, terminate this
Agreement at any time with or without cause and with or without notice. Any
modification of the at-will nature of this Agreement must be in writing and
executed by Executive and the Corporation.

          (i) Ongoing Obligations. Executive acknowledges that the Corporation and
Executive have ongoing rights and obligations relating to intellectual property
and confidential information of the Corporation, together with fiduciary rights
and obligations, which will survive the termination of Executive’s employment.

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     5. Indemnification. In the event Executive is made, or threatened to be
made, a party to any legal action or proceeding, whether civil or criminal,
including any governmental or regulatory proceedings or investigations, by
reason of the fact that Executive is or was a director or officer of the
Corporation or Del Monte Foods Company or serves or served any other
corporation fifty percent (50%) or more owned or controlled by the Corporation
in any capacity at the Corporation’s request, Executive shall be indemnified by
the Corporation, and the Corporation shall pay Executive’s related expenses
when and as incurred, all to the fullest extent permitted by the laws of the
State of Delaware, and the Corporation’s Certificate of Incorporation and
Bylaws.

     6. Proprietary
Information Obligations. During Executive’s employment by
the Corporation, Executive will have access to and become acquainted with the
Corporation’s confidential and proprietary information, including but not
limited to information or plans regarding the Corporation’s customer
relationships; personnel; technology and intellectual property; sales,
marketing and financial operations and methods; and other compilations of
information, records and specifications (collectively “Proprietary
Information”). Executive shall not disclose any Proprietary Information of the
Corporation, or of any affiliate, directly or indirectly, to any person, firm,
company, corporation or other entity for any reason or purpose whatsoever, nor
shall Executive make use of any such Proprietary Information for Executive’s
own purposes or for the benefit of any person, firm, company, corporation or
other entity (except the Corporation and any affiliate) under any
circumstances, during or after the term of this Agreement, except as reasonably
necessary in the course of Executive’s employment for the Corporation or as
authorized in writing by the Corporation. All files, records, documents,
computer-recorded or electronic information and similar items relating to the
business of the Corporation or any affiliate, whether prepared by Executive or
otherwise coming into Executive’s possession, shall remain the exclusive
property of the Corporation or the affiliate, respectively, and Executive
agrees to return all property of the Corporation or the affiliate in
Executive’s possession and under Executive’s control immediately upon any
termination of Executive’s employment, and no copies thereof shall be kept by
Executive.

     7. Noninterference. In consideration of the terms hereof, Executive agrees
that while employed by the Corporation pursuant to this Agreement and for a
period of eighteen (18) months thereafter, Executive agrees not to: (i)
directly or indirectly, either on Executive’s own account or for any
corporation, company, limited liability company, partnership, joint venture or
other entity or person (including, without limitation, through any existing or
future affiliate), solicit any employee of the Corporation or any existing or
future affiliate to leave his or her employment or knowingly induce or
knowingly attempt to induce any such employee to terminate or breach his or her
employment agreement with the Corporation or any existing or future affiliate,
if any; or (ii) directly or indirectly (including, without limitation, through
any existing or future affiliate), solicit, cause in any part or knowingly
encourage any current or future customer of or supplier to the Corporation or
any existing or future affiliate to modify the business relationship, or cease
doing business in whole or in part, with the Corporation or any such affiliate.

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     8. Conditions
Applicable to Severance Benefits. Executive will at all
times refrain from taking any action or making any statements, written or oral,
which are intended to and do demonstrably and materially damage the
Corporation, its subsidiaries and affiliates and their respective directors,
officers or employees. In the event that Executive materially violates the
terms and conditions of this Section 8, the Corporation may, at its election,
upon ten (10) days’ notice, discontinue payments of the Salary Continuation
and/or cease providing the benefits described in Sections 4(b), 4(e), 4(f) or
4(g) above. The Corporation may also initiate any form of legal action it may
deem appropriate seeking damages or injunctive relief with respect to any
material violations of this Section 8.

     9. Injunctive
Relief. The parties hereto agree that damages would be an
inadequate remedy for the Corporation in the event of a breach or threatened
breach of Sections 6 or 7 of this Agreement by Executive, and in the event of
any such breach or threatened breach, the Corporation may, either with or
without pursuing any potential damage remedies, obtain and enforce an
injunction prohibiting Executive from violating this Agreement and requiring
Executive to comply with the terms of this Agreement.

     10. Warranties
and Representations. Executive hereby represents and
warrants to the Corporation that:

          (a) Executive acknowledges and agrees that Executive considers the
restrictions set forth in Sections 6 and 7 to be reasonable both individually
and in the aggregate, and that the duration, geographic scope, extent and
application of each of such restrictions are no greater than is necessary for
the protection of the Corporation’s legitimate interests. It is the desire and
intent of Executive and the Corporation that the provisions of Sections 6 and 7
shall be enforced to the fullest extent possible under the laws and public
policies applied in each jurisdiction in which enforcement is sought. The
Corporation and Executive further agree that if any particular provision or
portion of Sections 6 and 7 shall be adjudicated to be invalid or
unenforceable, such adjudication shall apply only with respect to the operation
of such provision in the particular jurisdiction in which such adjudication is
made. The Corporation and Executive further agree that in the event that any
restriction herein shall be found to be void or unenforceable but would be
valid or enforceable if some part or parts thereof were deleted or the period
or area of application reduced, such restriction shall apply with such
modification as may be necessary to make it valid, and Executive and the
Corporation empower a court of competent jurisdiction to modify, reduce or
otherwise reform such provision(s) in such fashion as to carry out the parties’
intent to grant the Corporation the maximum allowable protection consistent
with the applicable law and facts.

          (b) In the event a court of competent jurisdiction or other tribunal or
person(s) mutually selected by the parties to resolve any dispute (collectively
a “Court”) has determined that Executive has violated the provisions of this
Agreement, the running of the time period of such provisions so violated shall
be automatically suspended as of the date of such violation and shall be
extended for the period of time

12

 

from the date such violation commenced through the date that the Court
determines that such violation has permanently ceased.

          (c) Executive is not now under any obligation of a contractual or
quasi-contractual nature known to Executive that is inconsistent or in conflict
with this Agreement or that would prevent, limit or impair the performance by
Executive of Executive’s obligations hereunder; and

          (d) Executive has been or has had the opportunity to be represented by
legal counsel in the preparation, negotiation, execution and delivery of this
Agreement and understands fully the terms and provisions hereof.

     11. Miscellaneous.

          (a) Notices. Any notice or communication required or permitted by this
Agreement shall be deemed sufficiently given if in writing and, if delivered
personally, when it is delivered or, if delivered in another manner, including
without limitation, by facsimile (with confirmation of receipt and a
confirmation copy sent by U.S. Mail or overnight delivery), the earlier of when
it is actually received by the party to whom it is directed or when the period
set forth below expires (whether or not it is actually received): (i) if
deposited with the U.S. Postal Service, postage prepaid, and addressed to the
party to receive it as set forth below, forty-eight (48) hours after such
deposit as registered or certified mail; or (ii) if accepted by Federal Express
or a similar delivery service in general usage for delivery to the address of
the party to receive it as set forth next below, twenty-four (24) hours after
the delivery time promised by the delivery service.

To the Corporation:

Del Monte Corporation

One Market at The Landmark

P.O. Box 193575

San Francisco, California 94119-3575

Fax: 415/247-3263

Attention: Board of Directors and Secretary

To Executive:

The most recent home address for Executive as set forth in the
Corporation’s personnel records.

or to such other address or to the attention of such other person as the
recipient party will have specified by prior written notice to the sending
party.

          (b) Severability. If any term or provision (or any portion thereof) of
this Agreement is determined by a court to be invalid, illegal or incapable of
being enforced by any rule of law or public policy, all other terms and
provisions (or other portions thereof) of this Agreement shall nevertheless
remain in full force and effect. Upon such determination that any term or
provision (or any portion thereof) is invalid, illegal or

13

 

incapable of being enforced, this Agreement shall be deemed to be modified
so as to effect the original intent of the parties as closely as possible to
the end that the transactions contemplated hereby and the terms and provisions
hereof are fulfilled to the greatest extent possible.

          (c) Counterparts. This Agreement may be executed on separate
counterparts, any one of which need not contain signatures of more than one
party, but all of which taken together will constitute one and the same
agreement. Signatures may be exchanged by electronic facsimile with machine
evidence of transmission.

          (d) Successors and Assigns. This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive and the Corporation, and the
Corporation’s successors and assigns. Executive may not assign any of
Executive’s duties or rights under this Agreement without the prior written
consent of the Corporation, which consent will not unreasonably be withheld.
Except for Executive’s estate or designated beneficiary under Section 4(a),
nothing in this Agreement, express or implied, is intended to confer upon any
third person any rights or remedies under or by reason of this Agreement.

          (e) Attorneys’ Fees. If any legal proceeding is necessary to enforce or
interpret the terms of this Agreement, or to recover damages for breach
thereof, the prevailing party shall be entitled to reasonable attorneys’ fees,
as well as costs and disbursements, in addition to any other relief to which
Executive or the Corporation may be entitled; provided that, notwithstanding
the foregoing, Executive shall be entitled to reimbursement by the Corporation
of all reasonable legal fees incurred by Executive in connection with any
enforcement of Sections 4(g) and 5 of the Agreement.

          (f) Amendments. No amendments or other modifications to this Agreement
may be made except by a writing signed by both parties.

          (g) Choice of Law. All questions concerning the construction, validity
and interpretation of this Agreement will be governed by the internal law, and
not the law of conflicts, of the State of California except as otherwise
provided in Section 11(b) above.

          (h) Further Assurances. Each of the parties hereto agrees to use all
reasonable efforts to take or cause to be taken, all appropriate actions, and
to cause to take or to be taken, all things necessary, proper or advisable
under applicable laws to effect the transactions contemplated by this
Agreement, including without limitation, execution and delivery to the
Corporation of such representations in writing as may be requested by the
Corporation in order for it to comply with applicable federal and state
securities laws.

          (i) Fees and Expenses Relating to Agreement. Each of the parties hereto
shall bear his or its own fees and expenses incurred in connection with the
preparation of this Agreement and the transactions contemplated hereby.

14

 

     12. ENTIRE AGREEMENT. This Agreement, including any documents
incorporated by reference herein, contains the Corporation’s entire
understanding with Executive related to the subject matter hereof, and
supersedes and preempts any prior or contemporaneous understandings,
agreements, or representations by or between the parties, or by or between
Executive and Del Monte Foods Company, written or oral. Without limiting the
generality of the foregoing, except as provided in this Agreement, all
understandings and agreements, written or oral, relating to the employment of
Executive by the Corporation or Del Monte Foods Company, or the payment of any
compensation or the provision of any benefit in connection therewith or
otherwise are hereby terminated and shall be of no future force and effect.

[Remainder of page intentionally left blank.

Signatures on following page.]

15

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date set forth below.

EXECUTIVE:

	 	 	 
	     /s/ David L. Meyers

David L. Meyers

	 	November 11,
2004

Date

CORPORATION:

DEL MONTE CORPORATION

	 	 	 	 	 
	By:

	 	/s/ Richard G. Wolford

	 	November 11, 2004

Date
	Name:

	 	Richard G. Wolford	 	 
	Title:

	 	Chairman of the Board, President	 	 
	

	 	and Chief Executive Officer	 	 

COMPANY (For purposes of Section 11 only):

DEL MONTE FOODS COMPANY

	 	 	 	 	 
	By:

	 	/s/ Richard G. Wolford

	 	November 11, 2004

Date
	Name:

	 	Richard G. Wolford	 	 
	Title:

	 	Chairman of the Board, President	 	 
	

	 	and Chief Executive Officer	 	 

16exv10w3

 

 Exhibit 10.3

EMPLOYMENT AGREEMENT

          This Employment Agreement (the “Agreement”) is entered into as of
September 1, 2004, by and between DEL MONTE CORPORATION, a Delaware
corporation, with its principal place of business in San Francisco, California
(the “Corporation”) and NILS LOMMERIN, an individual residing in the State of
California (“Executive”).

RECITALS

          WHEREAS, the Corporation desires to employ Executive on the terms and
conditions set forth herein, and Executive desires to be employed by the
Corporation on such terms and conditions.

          NOW, THEREFORE, in consideration of the foregoing recital, the promises,
covenants and agreements of the parties, and the mutual benefits they will gain
by the performance of the promises herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties do hereby agree as follows:

AGREEMENT

     1. Term of Employment; Duties.

          (a) Term of Employment. The Corporation agrees to employ Executive as its
Executive Vice President, Operations, and Executive hereby accepts such
employment, subject to the terms and conditions set forth herein. The term of
employment of Executive under this Agreement shall begin as of the date hereof
and continue until terminated pursuant to Section 4 hereof. Notwithstanding
the foregoing, the provisions of Sections 4(i) (Ongoing Obligations), 5
(Indemnification), 6 (Proprietary Information Obligations), 7
(Noninterference), 8 (Injunctive Relief), and 10 (Miscellaneous) shall survive
the termination of this Agreement.

          (b) Duties. Executive shall serve in an executive capacity and shall
perform such duties as are consistent with Executive’s position as Executive
Vice President, Operations and as may be reasonably required by the Del Monte
Corporation Board of Directors (the “Board”). In such position, Executive
shall (i) oversee and direct the Corporation’s operating structure; (ii)
oversee the human resources department; (iii) provide support and work directly
with the Compensation Committee of the Del Monte Foods Company Board of
Directors on matters relating to executive compensation; and (iv) report to
Chief Executive Officer (“CEO”).

          (c) Exclusive Performance of Duties. While employed by the Corporation,
Executive agrees that Executive shall devote substantially all of Executive’s
business time and best efforts solely and exclusively to the performance of
Executive’s duties hereunder and to the business and affairs of the
Corporation,

 

 

whether such business is operated directly by the Corporation or through
any affiliate of the Corporation. Executive further agrees that while employed
by the Corporation, Executive will not, directly or indirectly, provide
services on behalf of any competing corporation, company, limited liability
company, partnership, joint venture, consortium, or other competing entity or
person, whether as an employee, consultant, independent contractor, agent, sole
proprietor, partner, joint venturer, creditor, corporate officer or director;
nor shall Executive acquire by reason of purchase during the term of
Executive’s employment with the Corporation the ownership of more than one
percent (1%) of the outstanding equity interest in any such competing entity.
For purposes of this Agreement, a “competing” entity is one engaged in any of
the businesses in which the Corporation is engaged during Executive’s
employment with the Corporation, which includes without limitation: (i) dry and
canned pet food and pet snacks business in the United States and Canada, (ii)
specialty pet food business conducted worldwide, (iii) ambient tuna business in
North America, (iv) other ambient seafood business involving products marketed
in North America, (v) retail private label soup and retail private label gravy
businesses in the United States, (vi) broth business in the United States,
(vii) infant feeding business in the United States, and (viii) the manufacture
and sale of processed fruits and vegetables, pineapple products and tomato
products in the United States and South America (the “Businesses”). Subject to
the foregoing, Executive may serve on boards of directors of non-competing
unaffiliated corporations, subject to advance approval by the CEO, and may
serve on the boards of charitable organizations.

          (d) Corporation Policies. The employment relationship between the parties
shall be governed by the general employment policies and practices of the
Corporation, including, without limitation, the Del Monte Foods Standards of
Business Conduct; provided, however, that when the terms of this Agreement
differ from or are in conflict with the Corporation’s general employment
policies or practices, this Agreement shall control.

     2. Compensation and Benefits.

          (a) Salary. Executive shall receive for Executive’s services rendered
hereunder an annual base salary of Four Hundred Twenty-Five Thousand Dollars
($425,000), as adjusted from time to time by the Compensation Committee of the
Board (the “Base Salary”), payable on a semi-monthly basis in twenty-four (24)
equal installments, less all applicable federal, state or local taxes and other
normal payroll deductions.

          (b) Annual Bonus. While a full-time employee of the Corporation,
Executive shall be entitled to participate in the Del Monte Foods Company’s
Annual Incentive Plan or any applicable successor plan (the “AIP”) pursuant to
the terms and conditions set forth therein. Executive shall be eligible to
receive an annual AIP bonus (the “Bonus”) targeted at 70% of Executive’s Base
Salary, as adjusted from time to time in accordance with the AIP. AIP awards
are not guaranteed and actual payment of the Bonus is subject to the
performance of the Corporation and Del Monte Foods Company and Executive’s
individual achievements.

2

 

          (c) Employee Welfare Benefits. During Executive’s employment with the
Corporation, Executive shall be entitled to participate in any group insurance
for hospitalization, medical, dental, vision, prescription drug, accident,
disability, life or similar plan or program of the Corporation now existing or
established hereafter to the extent that Executive is eligible under the
general provisions thereof. The Corporation may, in its sole discretion and
from time to time, establish additional senior management benefit programs as
it deems appropriate. Executive understands that any such plans may be
modified or eliminated in the discretion of the Corporation in accordance with
applicable law.

          (d) Pension and Retirement Benefits. During Executive’s employment with
the Corporation, Executive shall be entitled to participate in any pension,
401(k) and retirement plans of the Corporation now existing or established
hereafter to the extent that Executive is eligible under the general provisions
thereof. The Corporation may, in its sole discretion and from time to time,
establish additional senior management benefit programs as it deems
appropriate. Executive understands that any such plans may be modified or
eliminated in the discretion of the Corporation in accordance with applicable
law.

          (e) Vacation. Executive shall be entitled to a period of annual paid
vacation time equal to not less than four (4) weeks per year as adjusted from
time to time in accordance with the Corporation’s vacation policy. The days
selected for Executive’s vacation shall be mutually agreeable to the
Corporation and Executive. Executive’s eligibility to carryover or to be paid
for any portion of Executive’s accrued, but unused vacation shall be subject to
the Corporation policy applicable to employees at a similar level in effect
during the term of this Agreement.

          (f) Expenses. Subject to compliance with the Corporation’s normal and
customary policies regarding substantiation and verification of business
expenses, the Corporation shall directly pay or shall fully reimburse Executive
for all customary and reasonable expenses incurred by Executive for promoting,
pursuing or otherwise furthering the business of the Corporation and its
affiliates.

          (g) Perquisites and Supplemental Benefits. During Executive’s employment
with the Corporation, Executive shall be entitled to participate in the
Corporation’s Executive Perquisite Plan, subject to the terms and conditions
thereof, and such other perquisites and supplemental benefits, if any, as may
be approved from time to time by the Compensation Committee of the Board.
Executive understands that any such plans may be modified or eliminated in the
discretion of the Corporation in accordance with applicable law.

     3. Stock Options.

          (a) During Executive’s employment with the Corporation, Executive shall be
eligible to participate in the applicable stock and stock option plans of Del
Monte Foods Company. The terms and conditions of any stock or stock option

3

 

agreement entered into by Executive and Del Monte Foods Company from time
to time are hereby incorporated into this Agreement.

          (b) From time to time during Executive’s employment with the Corporation,
the Board (or a committee thereof) shall evaluate the performance of management
of the Corporation and determine whether it is appropriate to grant any
additional stock and/or stock options to management, including without
limitation, Executive. The Board (or such committee) shall be under no
obligation to grant any such stock or stock options to Executive (or any other
member of management), but will take into consideration industry standards for
stock and stock option issuances to Executive Vice President, Operations in
similar circumstances.

     4. Termination of Employment.

          (a) Termination Upon Death. If Executive dies during Executive’s
employment with the Corporation, the Corporation shall pay to Executive’s
estate, or other designated beneficiary(ies) as shown in the records of the
Corporation, any earned and unpaid Base Salary as of Executive’s employment
termination date (which, for purposes of this Section 4(a), shall be the date
of Executive’s death); accrued but unused vacation time as of the end of the
month in which Executive dies; the amount of any unreimbursed expenses
described in Section 2(f), which were incurred by Executive before the date of
Executive’s death; and benefits, if any, that Executive’s estate, or other
designated beneficiary(ies), is then entitled to receive under the benefit
plans of the Corporation in which Executive was an eligible participant.
Additionally, the Corporation shall pay to Executive’s estate, or other
designated beneficiary(ies), at the end of the fiscal year in which Executive’s
termination of employment occurs, a pro rata portion of Executive’s target
Bonus for the year in which Executive’s termination of employment occurs,
prorated for Executive’s actual employment period during such year and adjusted
for performance. All of the foregoing payments and benefits shall be paid less
all applicable federal, state or local taxes and other normal payroll
deductions, if any. Except as expressly provided in this Section 4(a), the
Corporation shall have no obligation to make any other payment, including
severance or other compensation of any kind or payment in lieu of notice, and
all other benefits provided by the Corporation to Executive under this
Agreement or otherwise shall cease as of Executive’s termination date.

          (b) Termination Upon Disability. The Corporation may terminate
Executive’s employment in the event Executive suffers a disability that renders
Executive unable, as determined in good faith by the Board, to perform the
essential functions of Executive’s position, even with reasonable
accommodation, for six (6) consecutive months. In the event that Executive’s
employment is terminated pursuant to this Section 4(b), Executive shall receive
payment for any earned and unpaid Base Salary as of Executive’s employment
termination date (which, for purposes of this Section 4(b), shall be the date
specified by the Board); accrued but unused vacation time as of the end of the
month in which the termination of employment for disability occurs; the amount
of any unreimbursed expenses described in Section 2(f), which were incurred by
Executive before Executive’s termination date; and benefits, if any,

4

 

that Executive is then entitled to receive under the benefit plans of the
Corporation in which Executive was an eligible participant. In addition, after
Executive’s termination date, Executive shall receive long term disability
benefits under the applicable benefit plans of the Corporation to the extent
Executive qualifies for such benefits. In the event that Executive’s
employment is terminated as a result of a determination pursuant to this
Section 4(b), and provided that Executive has executed a general release in a
form and substance satisfactory to the Corporation, the Corporation also shall
provide to Executive as severance the payment of an 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 such termination
occurs, payable in equal installments on the Corporation’s regular pay schedule
over a period of twelve (12) months. All of the foregoing payments and
benefits shall be paid less all applicable federal, state or local taxes and
other normal payroll deductions, if any. Except as expressly provided in this
Section 4(b), the Corporation shall have no obligation to make any other
payment, including severance or other compensation of any kind or payment in
lieu of notice, and all other benefits provided by the Corporation to Executive
under this Agreement or otherwise shall cease as of Executive’s termination
date.

          (c) Voluntary
Termination. Executive may voluntarily terminate
Executive’s employment with the Corporation at any time. In the event that
Executive’s employment is terminated under this Section 4(c), Executive shall
receive payment for any earned and unpaid Base Salary as of Executive’s
voluntary employment termination date (which, for purposes of this Section
4(c), shall be the date Executive ceases to perform Executive’s duties
hereunder as stated in Executive’s letter of resignation or as specified by the
Board); accrued but unused vacation time as of Executive’s voluntary employment
termination date; the amount of any unreimbursed expenses described in Section
2(f), which were incurred by Executive before Executive’s voluntary employment
termination date; and benefits, if any, Executive is then entitled to receive
under the benefit plans of the Corporation in which Executive was an eligible
participant. All of the foregoing payments and benefits shall be paid less all
applicable federal, state or local taxes and other normal payroll deductions,
if any. Except as expressly provided in this Section 4(c), the Corporation
shall have no obligation to make any other payment, including severance or
other compensation of any kind or payment in lieu of notice, and all other
benefits provided by the Corporation to Executive under this Agreement or
otherwise shall cease as of Executive’s termination date.

          (d) Termination for Cause.

               (i) Termination; Payment of Accrued Benefits. The Board may terminate
Executive’s employment with the Corporation at any time for “Cause” (as defined
below). In the event that Executive’s employment is terminated for Cause under
this Section 4(d), Executive shall receive payment for all earned but unpaid
Base Salary as of Executive’s employment termination date (which, for purposes
of this Section 4(d), shall be the date specified by the Board); accrued but
unused vacation time as of Executive’s termination date; the amount of any
unreimbursed expenses described in Section 2(f), which were incurred by
Executive before Executive’s

5

 

termination date; and benefits, if any, Executive is then entitled to
receive under the benefit plans of the Corporation in which Executive was an
eligible participant. All of the foregoing payments and benefits shall be paid
less all applicable federal, state or local taxes and other normal payroll
deductions. Except as expressly provided in this Section 4(d), the Corporation
shall have no obligation to make any other payment, including severance or
other compensation of any kind or payment in lieu of notice, and all other
benefits provided by the Corporation to Executive under this Agreement or
otherwise shall cease as of Executive’s termination date.

               (ii) Definition of Cause. For purposes of this Agreement, the Corporation
shall have “Cause” to terminate Executive’s employment upon the occurrence of
any of the following: (A) a material breach by Executive of the terms of this
Agreement; (B) any act of theft, misappropriation, embezzlement, intentional
fraud or similar conduct by Executive involving the Corporation or any
affiliate; (C) the conviction or the plea of nolo contendere or the equivalent
in respect of a felony involving an act of dishonesty, moral turpitude, deceit
or fraud by Executive; (D) any damage of a material nature to the business or
property of the Corporation or any affiliate caused by Executive’s willful or
grossly negligent conduct; or (E) Executive’s failure to act in accordance with
any specific lawful instructions given to Executive in connection with the
performance of Executive’s duties for the Corporation or any affiliate.

          (e) Termination Without Cause.

               (i) Termination; Payment of Accrued Benefits. The Corporation at any time
without prior written notice may terminate Executive’s employment without
cause. In the event Executive’s employment is terminated without cause,
Executive shall receive payment for all earned but unpaid Base Salary as of
Executive’s termination date (which, for purposes of this Section 4(e), shall
be the date specified by the Board); accrued but unused vacation time as of
Executive’s termination date; the amount of any unreimbursed expenses described
in Section 2(f), which were incurred by Executive before Executive’s
termination date; and benefits, if any, Executive is then entitled to receive
under the benefit plans of the Corporation in which Executive was an eligible
participant.

               (ii) Payment of Severance Benefits. In the event Executive’s employment
is terminated without cause under this Section 4(e), and provided that
Executive has executed a general release in a form and substance satisfactory
to the Corporation, the Corporation also shall provide to Executive as
severance:

                    (A) the payment of an amount equal to one and one-half (1 1/2) times
Executive’s Base Salary and target Bonus for the year in which such termination
of employment occurs, payable in equal installments on the Corporation’s
regular pay schedule over a period of eighteen (18) months (“Salary
Continuation”), provided that, in the event of Executive’s death subsequent to
the commencement of payments pursuant to this sub-paragraph 4(e)(ii)(A), the
balance of the Salary

6

 

Continuation amount will be paid to Executive’s estate, or other
designated beneficiary(ies) as shown in the records of the Corporation;

                    (B) the payment to Executive, at the end of the fiscal year in which
Executive’s termination of employment occurs, of a pro rata portion of
Executive’s target Bonus for the year in which Executive’s termination occurs,
prorated for Executive’s actual employment period during such year and adjusted
for performance;

                    (C) continuation of Executive’s participation in the Corporation’s health
and welfare benefits (other than disability benefits) until the earlier of (x)
eighteen (18) months following Executive’s termination or (y) such time as
Executive is covered by comparable programs of a subsequent employer;

                    (D) continuation of Executive’s participation in any executive perquisites
applicable to Executive until the earlier of (x) eighteen (18) months following
Executive’s termination or (y) such time as Executive is covered by comparable
perquisites of a subsequent employer;

                    (E) Executive shall vest in any stock or stock option grants awarded to
Executive pursuant to the Del Monte Foods Company 2002 Stock Incentive Plan, or
any successor plan, on a pro-rated basis as of Executive’s termination date;
provided, however, Executive shall not be entitled to take ownership or
otherwise receive settlement of such pro-rated stock award(s) until the end of
the performance period associated with that stock award; provided, further,
that, Executive shall not be entitled to exercise, take ownership or otherwise
receive settlement of such pro-rated stock option award(s) until the scheduled
vest date associated with that tranche of the stock option award(s); provided,
further, that, upon vesting of Executive’s pro-rated stock option award(s),
Executive shall have ninety (90) days from that vesting date 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; and

                    (F) the provision of not less than eighteen (18) months of executive-level
outplacement services at the Corporation’s expense; provided, however, the
expense for such 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 such termination occurs.

All of the foregoing payments and benefits in this Paragraph 4(e) shall be paid
less all applicable federal, state or local taxes and other normal payroll
deductions, if any. Except as expressly provided in this Section 4(e), the
Corporation shall have no obligation to make any other payment, including
severance or other compensation of any kind or payment in lieu of notice, and
all other benefits provided by the Corporation to Executive under this
Agreement or otherwise shall cease as of Executive’s termination date.

7

 

          (f) Termination for Good Reason.

               (i) Termination; Payment of Accrued Benefits and Severance.
Notwithstanding anything in this Section 4 to the contrary, Executive may
voluntarily terminate Executive’s employment with the Corporation for “Good
Reason” (as defined below). In the event Executive’s employment is terminated
for Good Reason under this Section 4(f), Executive shall receive the benefits
set forth in Section 4(e), subject to the terms and conditions set forth
therein, including, without limitation, Executive ‘s execution of a general
release in a form and substance satisfactory to the Corporation, upon or within
ninety (90) days following the occurrence of an event constituting “Good
Reason.” All of the foregoing payments and benefits shall be paid less all
applicable federal, state or local taxes and other normal payroll deductions,
if any. Except as expressly provided in this Section 4(f), the Corporation
shall have no obligation to make any other payment, including severance or
other compensation of any kind or payment in lieu of notice, and all other
benefits provided by the Corporation to Executive under this Agreement or
otherwise shall cease as of Executive’s termination date.

               (ii) Definition of Good Reason. For purposes of this Agreement, Executive
shall have “Good Reason” to terminate Executive’s employment upon the
occurrence of any of the following: (A) a material adverse change in
Executive’s position causing it to be of materially less stature,
responsibility, or authority without Executive’s written consent, and such a
materially adverse change shall in all events be deemed to occur if Executive
no longer serves as Executive Vice President, Operations, unless Executive
consents in writing to such change; (B) a reduction, without Executive’s
written consent, in Executive’s Base Salary or the Bonus Executive is eligible
to earn under the AIP (or successor plan thereto), or Executive’s incentive or
equity opportunity under any material incentive or equity program of the
Corporation, provided, however, that nothing herein shall be construed to
guarantee Executive’s Bonus for any year if the applicable performance targets
are not met; and provided further that it shall not constitute Good Reason
hereunder if the Corporation makes an appropriate pro rata adjustment to the
applicable Bonus and targets under the AIP or any successor plan in the event
of a change in the Corporation’s fiscal year; (C) a material reduction without
Executive’s consent in the aggregate health and welfare benefits provided to
Executive pursuant to the health and welfare plans, programs and arrangements
in which Executive is eligible to participate; or (D) the failure of the
Corporation to obtain a satisfactory agreement from any successor to assume and
agree to perform this Agreement. Unless Executive provides written
notification of an event described in sub-clauses (A) through (D) above within
ninety (90) days after Executive knows or has reason to know of the occurrence
of any such event, Executive shall be deemed to have consented thereto and such
event shall no longer constitute Good Reason for purposes of this Agreement.
If Executive provides such written notice to the Corporation, the Corporation
shall have ten (10) business days from the date of receipt of such notice to
affect a cure of the event described therein and, upon cure thereof by the
Corporation to the reasonable satisfaction of Executive, such event shall no
longer constitute Good Reason for purposes of this Agreement.

8

 

          (g) Termination Upon Change of Control.

               (i) Termination; Payment of Severance. In the event of Executive’s
“Termination Upon Change of Control” (as defined below), Executive shall
receive the benefits set forth in Section 4(e), subject to the terms and
conditions set forth therein, including without limitation Executive’s
execution of a release in a form and substance satisfactory to the Corporation;
provided, however, that the payment set forth in Section 4(e)(ii)(A) shall be
an amount equal to two (2) times Executive’s Base Salary and target Bonus and
made in a lump sum paid within thirty (30) days of Executive’s termination
date, and not in installments over an eighteen (18) month period as provided in
Section 4(e)(ii)(A); provided, further, that all of Executive’s outstanding
stock and stock option awards shall vest and become immediately exercisable as
provided in the Del Monte Foods Company 2002 Stock Incentive Plan, or any
successor plan.

               (ii) Gross-Up Payment. In the event the lump sum payment set forth in
Section 4(g)(i) above (the “Payment”) is an “excess parachute payment” within
the meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”), and would be subject to the excise tax imposed by Section 4999 of
the Code (the “Excise Tax”), then the Company shall pay Executive an additional
cash payment (the “Gross-Up Payment”) in an amount such that after payment by
Executive of all taxes, including, without limitation, any income taxes and
Excise Tax imposed upon the Gross-Up Payment, Executive shall retain an amount
equal to the Excise Tax imposed upon the Payment and the Gross-Up Payment;
provided that, such Gross-Up Payment shall only be paid if the original Payment
exceeds the Section 280G excess parachute payment criterion by five percent
(5%) or more. The Gross-Up Payment shall be subject to and paid net of any
applicable withholding. The amount of any Gross-Up Payment or Excise Tax shall
be reasonably determined by the Company after consultation with its legal and
tax advisors.

               (iii) Definition of Termination Upon Change of Control. For purposes of
this Section 4(g) “Termination Upon Change of Control” means (A) the
termination of Executive’s employment by the Corporation without cause during
the period commencing on the date the “Change of Control” (as defined in the
Del Monte Foods Company 2002 Stock Incentive Plan, or any successor stock
incentive plan) occurs and ending on the date which is two (2) years after the
Change of Control; or (B) any resignation by Executive for Good Reason within
two (2) years after the occurrence of a Change of Control; but (C) “Termination
Upon Change of Control” shall not include any termination of Executive’s
employment by the Corporation for Cause, as a result of the death or disability
of Executive, or as a result of the voluntary termination of Executive’s
employment for reasons other than Good Reason.

               (iv) Except as expressly provided in this Section 4(g), the Corporation
shall have no obligation to make any other payment, including severance or
other compensation of any kind or payment in lieu of notice, and all other
benefits provided by the Corporation to Executive under this Agreement or
otherwise shall

9

 

cease as of Executive’s termination date. Any amounts due Executive under
this Section 4(g) are in the nature of severance payments or liquidated
damages, which contemplate both direct damages and consequential damages that
may be suffered as a result of Executive’s termination of employment, and are
not in the nature of a penalty.

          (h) At-Will Employment. Executive understands and agrees that Executive’s
employment with the Corporation is at-will, which means that either Executive
or the Corporation may, subject to the terms of this Agreement, terminate this
Agreement at any time with or without cause and with or without notice. Any
modification of the at-will nature of this Agreement must be in writing and
executed by Executive and the Corporation.

          (i) Ongoing Obligations. Executive acknowledges that the Corporation and
Executive have ongoing rights and obligations relating to intellectual property
and confidential information of the Corporation, together with fiduciary rights
and obligations, which will survive the termination of Executive’s employment.

     5. Indemnification. In the event Executive is made, or threatened to be
made, a party to any legal action or proceeding, whether civil or criminal,
including any governmental or regulatory proceedings or investigations, by
reason of the fact that Executive is or was a director or officer of the
Corporation or Del Monte Foods Company or serves or served any other
corporation fifty percent (50%) or more owned or controlled by the Corporation
in any capacity at the Corporation’s request, Executive shall be indemnified by
the Corporation, and the Corporation shall pay Executive’s related expenses
when and as incurred, all to the fullest extent permitted by the laws of the
State of Delaware, and the Corporation’s Certificate of Incorporation and
Bylaws.

     6. Proprietary
Information Obligations. During Executive’s employment by
the Corporation, Executive will have access to and become acquainted with the
Corporation’s confidential and proprietary information, including but not
limited to information or plans regarding the Corporation’s customer
relationships; personnel; technology and intellectual property; sales,
marketing and financial operations and methods; and other compilations of
information, records and specifications (collectively “Proprietary
Information”). Executive shall not disclose any Proprietary Information of the
Corporation, or of any affiliate, directly or indirectly, to any person, firm,
company, corporation or other entity for any reason or purpose whatsoever, nor
shall Executive make use of any such Proprietary Information for Executive’s
own purposes or for the benefit of any person, firm, company, corporation or
other entity (except the Corporation and any affiliate) under any
circumstances, during or after the term of this Agreement, except as reasonably
necessary in the course of Executive’s employment for the Corporation or as
authorized in writing by the Corporation. All files, records, documents,
computer-recorded or electronic information and similar items relating to the
business of the Corporation or any affiliate, whether prepared by Executive or
otherwise coming into Executive’s possession, shall remain the exclusive
property of the Corporation or the affiliate, respectively, and Executive
agrees to return all property

10

 

of the Corporation or the affiliate in Executive’s possession and under
Executive’s control immediately upon any termination of Executive’s employment,
and no copies thereof shall be kept by Executive.

     7. Noninterference. In consideration of the terms hereof, Executive agrees
that while employed by the Corporation pursuant to this Agreement and for a
period of two (2) years thereafter, Executive agrees not to: (i) directly or
indirectly, either on Executive’s own account or for any corporation, company,
limited liability company, partnership, joint venture or other entity or person
(including, without limitation, through any existing or future affiliate),
solicit any employee of the Corporation or any existing or future affiliate to
leave his or her employment or knowingly induce or knowingly attempt to induce
any such employee to terminate or breach his or her employment agreement with
the Corporation or any existing or future affiliate, if any; or (ii) directly
or indirectly (including, without limitation, through any existing or future
affiliate), solicit, cause in any part or knowingly encourage any current or
future customer of or supplier to the Corporation or any existing or future
affiliate to modify the business relationship, or cease doing business in whole
or in part, with the Corporation or any such affiliate.

     8. Injunctive
Relief. The parties hereto agree that damages would be an
inadequate remedy for the Corporation in the event of a breach or threatened
breach of Sections 6 or 7 of this Agreement by Executive, and in the event of
any such breach or threatened breach, the Corporation may, either with or
without pursuing any potential damage remedies, obtain and enforce an
injunction prohibiting Executive from violating this Agreement and requiring
Executive to comply with the terms of this Agreement.

     9. Warranties
and Representations. Executive hereby represents and
warrants to the Corporation that:

          (a) Executive acknowledges and agrees that Executive considers the
restrictions set forth in Sections 6 and 7 to be reasonable both individually
and in the aggregate, and that the duration, geographic scope, extent and
application of each of such restrictions are no greater than is necessary for
the protection of the Corporation’s legitimate interests. It is the desire and
intent of Executive and the Corporation that the provisions of Sections 6 and 7
shall be enforced to the fullest extent possible under the laws and public
policies applied in each jurisdiction in which enforcement is sought. The
Corporation and Executive further agree that if any particular provision or
portion of Sections 6 and 7 shall be adjudicated to be invalid or
unenforceable, such adjudication shall apply only with respect to the operation
of such provision in the particular jurisdiction in which such adjudication is
made. The Corporation and Executive further agree that in the event that any
restriction herein shall be found to be void or unenforceable but would be
valid or enforceable if some part or parts thereof were deleted or the period
or area of application reduced, such restriction shall apply with such
modification as may be necessary to make it valid, and Executive and the
Corporation empower a court of competent jurisdiction to modify, reduce or
otherwise reform such provision(s) in such fashion as to carry out the parties’
intent to grant the

11

 

Corporation the maximum allowable protection consistent with the applicable law
and facts.

          (b) In the event a court of competent jurisdiction or other tribunal or
person(s) mutually selected by the parties to resolve any dispute (collectively
a “Court”) has determined that Executive has violated the provisions of this
Agreement, the running of the time period of such provisions so violated shall
be automatically suspended as of the date of such violation and shall be
extended for the period of time from the date such violation commenced through
the date that the Court determines that such violation has permanently ceased.

          (c) Executive is not now under any obligation of a contractual or
quasi-contractual nature known to Executive that is inconsistent or in conflict
with this Agreement or that would prevent, limit or impair the performance by
Executive of Executive’s obligations hereunder; and

          (d) Executive has been or has had the opportunity to be represented by
legal counsel in the preparation, negotiation, execution and delivery of this
Agreement and understands fully the terms and provisions hereof.

     10. Miscellaneous.

          (a) Notices. Any notice or communication required or permitted by this
Agreement shall be deemed sufficiently given if in writing and, if delivered
personally, when it is delivered or, if delivered in another manner, including
without limitation, by facsimile (with confirmation of receipt and a
confirmation copy sent by U.S. Mail or overnight delivery), the earlier of when
it is actually received by the party to whom it is directed or when the period
set forth below expires (whether or not it is actually received): (i) if
deposited with the U.S. Postal Service, postage prepaid, and addressed to the
party to receive it as set forth below, forty-eight (48) hours after such
deposit as registered or certified mail; or (ii) if accepted by Federal Express
or a similar delivery service in general usage for delivery to the address of
the party to receive it as set forth next below, twenty-four (24) hours after
the delivery time promised by the delivery service.

To the Corporation:

Del Monte Corporation

One Market at The Landmark

P.O. Box 193575

San Francisco, California 94119-3575

Fax: 415/247-3263

Attention: Board of Directors and Secretary

To Executive:

The most recent home address for Executive as set forth in the
Corporation’s personnel records.

12

 

or to such other address or to the attention of such other person as the
recipient party will have specified by prior written notice to the sending
party.

          (b) Severability. If any term or provision (or any portion thereof) of
this Agreement is determined by a court to be invalid, illegal or incapable of
being enforced by any rule of law or public policy, all other terms and
provisions (or other portions thereof) of this Agreement shall nevertheless
remain in full force and effect. Upon such determination that any term or
provision (or any portion thereof) is invalid, illegal or incapable of being
enforced, this Agreement shall be deemed to be modified so as to effect the
original intent of the parties as closely as possible to the end that the
transactions contemplated hereby and the terms and provisions hereof are
fulfilled to the greatest extent possible.

          (c) Counterparts. This Agreement may be executed on separate
counterparts, any one of which need not contain signatures of more than one
party, but all of which taken together will constitute one and the same
agreement. Signatures may be exchanged by electronic facsimile with machine
evidence of transmission.

          (d) Successors and Assigns. This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive and the Corporation, and the
Corporation’s successors and assigns. Executive may not assign any of
Executive’s duties or rights under this Agreement without the prior written
consent of the Corporation, which consent will not unreasonably be withheld.
Except for Executive’s estate or designated beneficiary under Section 4(a),
nothing in this Agreement, express or implied, is intended to confer upon any
third person any rights or remedies under or by reason of this Agreement.

          (e) Attorneys’ Fees. If any legal proceeding is necessary to enforce or
interpret the terms of this Agreement, or to recover damages for breach
thereof, the prevailing party shall be entitled to reasonable attorneys’ fees,
as well as costs and disbursements, in addition to any other relief to which
Executive or the Corporation may be entitled; provided that, notwithstanding
the foregoing, Executive shall be entitled to reimbursement by the Corporation
of all reasonable legal fees incurred by Executive in connection with any
enforcement of Sections 4(g) and 5 of the Agreement.

          (f) Amendments. No amendments or other modifications to this Agreement
may be made except by a writing signed by both parties.

          (g) Choice of Law. All questions concerning the construction, validity
and interpretation of this Agreement will be governed by the internal law, and
not the law of conflicts, of the State of California except as otherwise
provided in Section 10(b) above.

          (h) Further Assurances. Each of the parties hereto agrees to use all
reasonable efforts to take or cause to be taken, all appropriate actions, and
to cause to take or to be taken, all things necessary, proper or advisable
under applicable laws to effect the transactions contemplated by this
Agreement, including without limitation, execution and delivery to the
Corporation of such representations in writing as may be

13

 

requested by the Corporation in order for it to comply with applicable
federal and state securities laws.

          (i) Fees and Expenses Relating to Agreement. Each of the parties hereto
shall bear his or its own fees and expenses incurred in connection with the
preparation of this Agreement and the transactions contemplated hereby.

     11. ENTIRE AGREEMENT. This Agreement, including any documents
incorporated by reference herein, contains the Corporation’s entire
understanding with Executive related to the subject matter hereof, and
supersedes and preempts any prior or contemporaneous understandings,
agreements, or representations by or between the parties, or by or between
Executive and Del Monte Foods Company, written or oral. Without limiting the
generality of the foregoing, except as provided in this Agreement, all
understandings and agreements, written or oral, relating to the employment of
Executive by the Corporation or Del Monte Foods Company, or the payment of any
compensation or the provision of any benefit in connection therewith or
otherwise are hereby terminated and shall be of no future force and effect.

[Remainder of page intentionally left blank.

Signatures on following page.]

14

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date set forth below.

EXECUTIVE:

	 	 	 
	     /s/ Nils Lommerin

Nils Lommerin

	 	November 11, 2004

Date

CORPORATION:

DEL MONTE CORPORATION

	 	 	 	 	 
	By:

	 	/s/ Richard G. Wolford

	 	November 11, 2004

Date
	Name:

	 	Richard G. Wolford	 	 
	Title:

	 	Chairman of the Board, President	 	 
	

	 	and Chief Executive Officer	 	 

COMPANY (For purposes of Section 11 only):

DEL MONTE FOODS COMPANY

	 	 	 	 	 
	By:

	 	/s/ Richard G. Wolford

	 	November 11, 2004

Date
	Name:

	 	Richard G. Wolford	 	 
	Title:

	 	Chairman of the Board, President	 	 
	

	 	and Chief Executive Officer

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