Document:

exv10w1

 

Exhibit 10.1

CONNETICS CORPORATION

NON-QUALIFIED STOCK OPTION AGREEMENT

          Connetics Corporation, a Delaware corporation (“Connetics” or the “Corporation”), hereby
grants to Claudette MacMillan (the “Optionee”) an option to purchase 20,000 shares of Common Stock
(the “Option”) subject to the following terms and conditions of this Non-Qualified Stock Option
Agreement (the “Option Agreement”):

	 	 	 	 	 
	I.

	 	NOTICE OF STOCK OPTION GRANT

	 	 
	 

	 	Claudette MacMillan	 	 
	 

	 	3160 Porter Drive	 	 
	 

	 	Palo Alto, California 94034

	 	 
	 

	 	Date of Grant
	 	September 30, 2005

	 

	 	Vesting Commencement Date
	 	September 30, 2005

	 

	 	Exercise Price per Share
	 	$16.91

	 

	 	Total Number of Shares of Common	 	 
	 

	 	Stock Subject to the Option (the “Shares”)
	 	20,000 Shares

	 

	 	Total Exercise Price
	 	$338,200.00

	 

	 	Type of Option:
	 	Nonstatutory Stock Option

	 

	 	Term/Expiration Date:
	 	September 30, 2015

     Vesting Schedule:

          This Option may be exercised, in whole or in part, in accordance with the following schedule:

          1/8 of the Shares subject to the Option shall vest six months after the Vesting Commencement
Date, and 1/48 of the Shares subject to the Option shall vest each month thereafter, subject to the
Optionee continuing to be a Service Provider on such dates.

     Termination Period:

          This Option may be exercised for (3) three months after the Optionee ceases to be a Service
Provider for any reason other than death or Disability. In the event the Optionee ceases to be a
Service Provider as the result of death or Disability, this Option may be exercised for (12) twelve
months after the Optionee ceases to be a Service Provider. In no event shall this Option be
exercised later than the Term/Expiration Date as provided above.

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	II.

	 	AGREEMENT

     1. Grant of Option. The Corporation hereby grants to the Optionee named in the Notice
of Stock Option Grant (the “Notice”) attached as Part I of this Option Agreement an option (the
“Option”) to purchase the number of Shares, as set forth in the Notice, at the exercise price per
share set forth in the Notice (the “Exercise Price”), subject to the terms and conditions of the
Notice and this Option Agreement.

          This Option is subject to and conditioned upon Optionee’s acceptance of the Option by
returning to the Corporation an executed original of this Option Agreement. This Option shall be
null and void and of no force and effect, unless the Optionee executes and returns to the
Corporation this Option Agreement.

          This Option is granted as an inducement material to the Optionee’s entering into service with
the Corporation as an Employee. The Grantee has not previously been a Service Provider of the
Company or any Parent or Subsidiary of the Company.

          This Option is not intended to be an incentive stock option under Section 422 of the Code.

     2. Exercise of Option.

          (a) Right to Exercise. This Option is exercisable during its term in accordance with
the Vesting Schedule set out in the Notice and the applicable provisions of this Option Agreement.

          (b) Method of Exercise. This Option is exercisable by delivery of an exercise notice
or by such other procedure as specified from time to time by the Board, which shall state the
election to exercise the Option and the number of Shares in respect of which the Option is being
exercised (the “Exercised Shares”). The exercise notice shall be completed by the Optionee and
delivered to Connetics in person, by certified mail, or by such other method (including electronic
transmission) as determined from time to time by the Board. The exercise notice shall be
accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. This Option
shall be deemed to be exercised upon receipt by Connetics of such fully executed exercise notice
accompanied by such aggregate Exercise Price.

          No Shares shall be issued pursuant to the exercise of this Option unless such issuance and
exercise complies with Applicable Laws. Assuming such compliance, for income tax purposes the
Exercised Shares shall be considered transferred to the Optionee on the date the Option is
exercised with respect to such Exercised Shares.

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     3. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

          (c) cash; or

          (d) check; or

          (e) consideration received by Connetics under a cashless exercise program implemented by
Connetics in connection with this Option Agreement; or

          (f) surrender of other Shares which (i) in the case of Shares acquired upon exercise of an
option, have been owned by the Optionee for more than six (6) months on the date of surrender, and
(ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the
Exercised Shares.

     4. Non-Transferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by the Optionee. The terms of this Option Agreement shall be binding
upon the executors, administrators, heirs, successors and assigns of the Optionee.

     5. No Obligation to Exercise Option. The grant and acceptance of this Option imposes
no obligation on the Optionee to exercise it.

     6. No Obligation to Continue Business Relationship. The Corporation and any its’
subsidiaries are not by this Option obligated to continue to maintain a business relationship with
the Optionee.

     7. Term of Option. This Option may be exercised only within the term set out in the
Notice, and may be exercised during such term only in accordance with the terms of this Option
Agreement.

     8. Tax Consequences. Some of the federal tax consequences relating to this Option, as
of the date of this Option, are set forth below. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE
TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE
EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          (g) Exercising the Option. The Optionee may incur regular federal income tax
liability upon exercise of the Option. The Optionee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair
Market Value of the Exercised Shares on the date of exercise over their aggregate Exercise Price.
If the Optionee is an Employee or a former Employee, Connetics will be required to withhold from
his or her compensation or collect from Optionee and pay to the applicable taxing authorities an
amount in cash equal to a percentage of this compensation income at the time of exercise, and may
refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

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          (h) Disposition of Shares. The Optionee holds the Shares acquired upon exercise of
the Option for at least one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

     9. No Rights as Stockholder until Exercise. The Optionee shall have no rights as a
stockholder with respect to the Shares until a stock certificate has been issued to the Optionee
and is fully paid for in accordance with paragraph 3. With respect to certain changes in the
capitalization of the Corporation, no adjustment shall be made for dividends or similar rights for
which the record date is prior to the date such stock certificate is issued.

     10. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

          (a) Changes in Capitalization. Subject to any required action by the stockholders of
Connetics, the number of shares of Common Stock covered by the Option as well as the Exercise Price
shall be proportionately adjusted for any increase or decrease in the number of issued shares of
Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by Connetics; provided, however,
that conversion of any convertible securities of Connetics shall not be deemed to have been
“effected without receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided
in this Option Agreement, no issuance by Connetics of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock subject to an Option.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of Connetics, the Board shall notify the Optionee prior to the effective date of such
proposed transaction. The Board in its discretion may permit the Optionee to exercise the Option
prior to such transaction as to all of the Shares, including Shares as to which the Option would
not otherwise be vested and exercisable. To the extent it has not been previously exercised, an
Option will terminate immediately prior to the consummation of such proposed action.

          (i) Merger or Asset Sale. In the event of a merger of Connetics with or into another
corporation, or the sale of substantially all of the assets of Connetics, the Option shall be
assumed or an equivalent option or right substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation. In the event that the successor corporation refuses to
assume or substitute for the Option, the Optionee shall fully vest in and have the right to
exercise the Option as to all of the Shares, including Shares as to which it would not otherwise be
vested and exercisable. If an Option becomes fully vested and exercisable in lieu of assumption or
substitution in the event of a merger or sale of assets, the Board shall notify the Optionee in
writing or electronically that the Option shall be fully vested and exercisable for a period of
time as determined by the Board, and the Option shall terminate upon the expiration of such period.
For the purposes of this paragraph, the Option shall be considered assumed if, following the
merger or sale of assets, the option confers the right to purchase or receive, for each Share

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subject to the Option immediately prior to the merger or sale of assets, the consideration
(whether stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each share held on the effective date of the transaction (and
if holders were offered a choice of consideration, the type of consideration chosen by the holders
of a majority of the outstanding shares of Common Stock); provided, however, that if such
consideration received in the merger or sale of assets is not solely common stock of the successor
corporation or its Parent, the Board may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of the Option, for each Share subject to the
Option, to be solely common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the merger or sale of
assets.

     11. Entire Agreement; Governing Law. This Option Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof and supersedes in its entirety
all prior undertakings and agreements of Connetics and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing
signed by Connetics and Optionee. This agreement is governed by the internal substantive laws, but
not the choice of law rules, of California.

     12. NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE OF THIS AGREEMENT IS EARNED ONLY BY CONTINUING
AS A SERVICE PROVIDER AT THE WILL OF CONNETICS (AND NOT THROUGH THE ACT OF BEING HIRED, BEING
GRANTED AN OPTION OR PURCHASING SHARES UNDER THIS AGREEMENT). OPTIONEE FURTHER ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED UNDER THIS AGREEMENT AND THE VESTING
SCHEDULE SET FORTH IN THIS AGREEMENT DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED
ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE WITH OPTIONEE’S RIGHT OR CONNETICS’ RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A
SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

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	III.

	 	DEFINITIONS

     A. “Applicable Laws” means the requirements relating to the administration of stock
options under U. S. state corporate laws, U.S. federal and state securities laws, the Code, any
stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable
laws of any foreign country or jurisdiction where the Optionee may be resident.

     B. “Board” means the Board of Directors of Connetics.

     C. “Code” means the Internal Revenue Code of 1986, as amended.

     D. “Common Stock” means the common stock of Connetics.

     E. “Corporation” means Connetics Corporation, a Delaware corporation.

     F. “Consultant” means any person, including an advisor, engaged by Connetics or a
Parent or Subsidiary to render services to such entity.

     G. “Director” means a member of the Board.

     H. “Disability” means total and permanent disability as defined in Section 22(e)(3) of
the Code.

     I. “Employee” means any person, including Officers and Directors, employed by
Connetics or any Parent or Subsidiary of Connetics. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by Connetics or (ii) transfers between
locations of Connetics or between Connetics, its Parent, any Subsidiary, or any successor. Neither
service as a Director nor payment of a director’s fee by Connetics shall be sufficient to
constitute “employment” by Connetics.

     J. “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     K. “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

	 	(i)	 	If the Common Stock is listed on any established stock exchange or a national
market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were reported)
as quoted on such exchange or system on the date of determination, as reported in
The Wall Street Journal or such other source as the Board deems reliable;
	 
	 	(ii)	 	If the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, the Fair Market Value of a Share of Common Stock
shall be the mean between the high bid and low asked prices for the
Common Stock on the date of determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable; or
	 
	 	(iii)	 	In the absence of an established market for the Common Stock, the Fair Market
Value shall be determined in good faith by the Board.

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     L. “Officer” means a person who is an officer of Connetics within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated under the Exchange Act.

     M. “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

     N. “Service Provider” means an Employee, Director or Consultant.

     O. “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code.

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     By your signature and the signature of Connetics’ representative below, you and Connetics
agree that this Option is granted under and governed by the terms and conditions of the this Option
Agreement. Optionee has reviewed this Option Agreement in its’ entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option Agreement and fully understands all
provisions of this Option Agreement. Optionee hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Board upon any questions relating to this Option
Agreement. Optionee further agrees to notify Connetics upon any change in the residence address
indicated below.

	 	 	 
	OPTIONEE:

	 	CONNETICS CORPORATION

	/s/ Claudette MacMillan

	 	/s/ Thomas G. Wiggans
	 

	 	 
	     Signature

	 	     By: Thomas G. Wiggans

	     Claudette MacMillan

	 	     Chief Executive Officer
	 

	 	 
	     Print Name

	 	     Title

	 

Residence Address

	 	  

	 

	 	 

8exv10w1

 

Exhibit
10.1

DEL MONTE FOODS

COMPANY

2002 STOCK INCENTIVE PLAN

Amended and Restated Effective August 15, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1.	 	Purpose of the Plan
	 	 	1	 
	2.	 	Definitions
	 	 	1	 
	3.	 	Stock Subject to the Plan
	 	 	5	 
	4.	 	Administration of the Plan
	 	 	6	 
	5.	 	Eligibility
	 	 	7	 
	6.	 	Options
	 	 	7	 
	7.	 	Tandem Stock Appreciation Rights
	 	 	10	 
	8.	 	Stand-Alone Stock Appreciation Rights
	 	 	11	 
	9.	 	Stock Bonuses and Other Incentive Awards
	 	 	13	 
	10.	 	Adjustment Upon Changes in Common Stock and Certain Transactions
	 	 	14	 
	11.	 	Rights as a Stockholder
	 	 	15	 
	12.	 	No Special Employment Rights; No Right to Incentive Award
	 	 	15	 
	13.	 	Securities Matters
	 	 	16	 
	14.	 	Withholding Taxes
	 	 	17	 
	15.	 	Amendment of the Plan
	 	 	17	 
	16.	 	No Obligation to Exercise
	 	 	18	 
	17.	 	Transfers Upon Death
	 	 	18	 
	18.	 	Expenses and Receipts
	 	 	18	 
	19.	 	Failure to Comply
	 	 	18	 
	20.	 	Compliance with Rule 16b-3
	 	 	18	 
	21.	 	Repricing
	 	 	19	 
	22.	 	Applicable Law
	 	 	19	 
	23.	 	Effective Date; Restatement Date
	 	 	19	 

(i)

 

DEL MONTE FOODS COMPANY

2002 STOCK INCENTIVE PLAN

1. Purpose of the Plan

     This Del Monte Foods Company 2002 Stock Incentive Plan, originally adopted effective December
20, 2002 (the “Effective Date”), is hereby amended and restated effective August 15, 2005 (the
“Restatement Date”). It is intended to promote the interests of the Company by encouraging the
Company’s Employees, non-employee Directors and Consultants of the Company to continue in the
service of the Company, and to provide such persons with incentives and rewards for superior
management, growth and protection of the business of the Company.

2. Definitions

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

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

     (b) “Cash Performance Unit” shall have the meaning set forth in Section 9(a) hereof.

     (c) “Cause,” when used in connection with the termination of a Participant’s employment
with the Company, shall mean (i) a material breach by Participant of the terms of his or her
employment agreement, if any; (ii) any act of theft, misappropriation, embezzlement,
intentional fraud or similar conduct by Participant involving the Company or any affiliate;
(iii) 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 Participant; (iv) any
damage of a material nature to the business or property of the Company or any affiliate
caused by Participant’s willful or grossly negligent conduct; or (v) Participant’s failure
to act in accordance with any specific lawful instructions given to Participant in
connection with the performance of his duties for the Company or any affiliate.
Notwithstanding the foregoing provisions of this Section 2(c), “Cause,” when used in
connection with the termination of the employment with the Company of a Participant who at
the time of such termination is a party to a written employment or retention agreement with
the Company or participates in the Company’s executive severance policy, shall have the
meaning assigned to such term in such agreement or policy.

     (d) “Change of Control” shall mean the occurrence of one or more of the following
events:

          (1) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the Company to any
individual, partnership, corporation, limited liability company, unincorporated

 1.

 

organization, trust or joint venture, or a governmental agency or political subdivision
thereof (a “Person”) or group of related Persons for purposes of Section 13(d) of the
Securities Exchange Act of 1934, as amended (a “Group”), together with any Affiliates (as
defined below) thereof.

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

          (3) any Person or Group shall become the owner, directly or indirectly,
beneficially or of record, of shares representing more than 40% of the aggregate
ordinary voting power represented by the issued and outstanding Capital Stock (the
“Voting Stock”) of the Company;

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

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

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

     (e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 2.

 

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

     (g) “Common Stock” shall mean Del Monte’s common stock, $0.01 par value per share.

     (h) “Company” shall mean Del Monte and each of its Subsidiaries.

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

     (j) “Del Monte” shall mean Del Monte Foods Company, a Delaware corporation, and its
successors.

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

     (l) “Disability” shall mean physical or mental disability as a result of which the
Participant is unable to perform the essential functions of his position, even with
reasonable accommodation, for six (6) consecutive months. Any dispute as to whether or not
the Participant is so disabled shall be resolved by a physician reasonably acceptable to the
Participant and the Company whose determination shall be final and binding upon both the
Participant and the Company. Notwithstanding the foregoing provisions of this Section 2(l),
“Disability,” when used in connection with the termination of the employment with the
Company of a Participant who at the time of such termination is a party to a written
employment or retention agreement with the Company, shall have the meaning assigned to such
term in such agreement.

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

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

     (o) “Incentive Award” shall mean an Option, Tandem SAR, Stand-Alone SAR or Stock Bonus
granted pursuant to the terms of the Plan, or any type of arrangement with a Participant
that is not inconsistent with the provisions of this Plan

 3.

 

(including, without limitation, restricted stock, stock purchase warrants, performance
units, performance shares and Cash Performance Units pursuant to Section 9(a) hereof).

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

     (q) “Non-Qualified Stock Option” shall mean an Option which is not an Incentive Stock
Option.

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

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

     (t) “Plan” shall mean this Del Monte Foods Company 2002 Stock Incentive Plan, as it may
be amended from time to time.

     (u) “Retirement” shall mean the termination of a Participant’s employment with the
Company at or after attainment of age fifty-five (55) and completion of ten (10) or more
years of continuous employment with the Company.

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

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

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

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

     (z) “Subsidiary” shall mean any “subsidiary corporation” within the meaning of Section
424(f) of the Code, but only for so long as the requisite ownership relationship exists.

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

 4.

 

3. Stock Subject to the Plan

     (a) Maximum Shares Available for Delivery. Subject to 10 hereof, the maximum number of shares of Common Stock that may be delivered to Participants and their beneficiaries under
the Plan (whether as Incentive Stock Options or as other Incentive Awards) shall be equal to
26,165,813.* The number of shares of Common Stock available for delivery under
the Plan shall be reduced (i) by one (1) share for each share of Common Stock issued
pursuant to an Option, a Stand-Alone SAR with an exercise price of at least the Fair Market
Value of a share of Common Stock on the grant date (“FMV Exercise Price”) or a Tandem SAR
with a FMV Exercise Price; and (ii) by one and ninety four hundredths (1.94) shares for each
share of Common Stock issued pursuant to Incentive Awards other than those set forth in the
preceding clause (i); provided, however, that for Incentive Awards granted prior to May 2,
2005, the reduction was one (1) share of Common Stock for each share of Common Stock issued
pursuant to any such Incentive Awards. If an outstanding Incentive Award for any reason
expires or is terminated or canceled without having been exercised or settled in full, or
if shares of Common Stock acquired pursuant to an Incentive Award subject to forfeiture or
repurchase are forfeited or repurchased by Del Monte at the Participant’s purchase price to
effect a forfeiture of unvested shares upon a termination of employment, the shares
allocable to the terminated portion of such Incentive Award or such forfeited or repurchased shares shall result in an increase in the number of shares of Common Stock available for
delivery under the Plan corresponding to the reduction originally made in respect of such
Incentive Award and shall again be available for issuance under the Plan. Shares of Common
Stock shall not be considered to have been issued under the Plan with respect to any portion
of an Incentive Award (other than a Stand-Alone SAR or a Tandem SAR that may be settled in shares of Common Stock or cash) that is settled in cash. Shares withheld in satisfaction of
tax withholding obligations shall not again become available for issuance under the Plan.
Upon payment in shares of Common Stock pursuant to the exercise of a Stand-Alone SAR or a
Tandem SAR, the number of shares available for issuance under the Plan shall be reduced by
the gross number of shares for which such Incentive Award is exercised. If the exercise
price of an Option is paid by tender to Del Monte, or attestation of ownership, of shares of
Common Stock owned by the Participant, the number of shares available for issuance under the
Plan shall be reduced by the gross number of shares for which the Option is exercised.
Shares of Common Stock issued under the Plan may be either newly issued shares or treasury shares, as determined by the Committee.

     (b) Mergers and Acquisitions Exception. Shares of Common Stock may be issued pursuant
to Incentive Awards in connection with corporate acquisitions and mergers under Rule 303A.08
of the New York Stock Exchange Listed Company Manual, and any such issuance shall not reduce
the number of shares of Common Stock available for issuance under the Plan.

 

			
	*	 	As of May 1, 2005, of this number, 431,689
shares had been issued under the Plan, and 10,734,124 shares were subject to
outstanding Incentive Awards. Accordingly, based on such May 1, 2005 numbers,
as of the Restatement Date, 15,000,000 shares are available for future
Incentive Awards.

 5.

 

     (c) Payment Shares. Subject to the overall limitation in Section 3(a) on the number of shares of Common Stock that may be delivered under the Plan, the Committee may, in addition
to granting Incentive Awards under Sections 6 through 9, use available shares of Common
Stock as the form of payment for compensation, grants or rights earned or due under any
other compensation plans or arrangements of the Company, including those of any entity
acquired by the Company.

     (d) Maximum Shares Per Participant. Subject to adjustment from time to time as
provided in Section 10, not more than 1,500,000 shares of Common Stock may be made subject
to Incentive Awards under the Plan to any individual in the aggregate in any one fiscal year
of the Company, such limitation to be applied in a manner consistent with the requirements
of, and only to the extent required for compliance with, the exclusion from the limitation
on deductibility of compensation under Section 162(m) of the Code.

4. Administration of the Plan

     The Plan shall be administered by a Committee of the Board of Directors consisting of two or
more persons, each of whom shall be a “non-employee director” within the meaning of Rule 16b-3 and
an “outside director” within the meaning of Section 162(m) of the Code, unless otherwise determined
by the Board of Directors

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

     The Committee may, in its absolute discretion, accelerate the date on which any Option or
Stand-Alone SAR granted under the Plan vests and becomes exercisable or, subject to Sections
6(c)(1) and 8(c)(1) hereof, extend the term of any Option or Stand-Alone SAR granted under the
Plan.

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

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

 6.

 

5. Eligibility

     The persons who shall be eligible to receive Incentive Awards pursuant to the Plan shall be
such Employees, Directors and Consultants as the Committee shall select from time to time. The
Committee shall also specify the type and amount of such awards each such person is to be granted.

6. Options

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

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

     (b) Exercise Price. The exercise price of any Non-Qualified Stock Option granted under
the Plan shall be such price as the Committee shall determine on the date on which such
Non-Qualified Stock Option is granted and shall not be less than 100% of the Fair Market
Value of a share of Common Stock on the date on which such Non-Qualified Stock Option is
granted.

     (c) Term and Exercise of Options.

          (1) Each Option shall be exercisable on such date or dates, during such period and for
such number of shares of Common Stock as shall be determined by the Committee on the day on
which such Option is granted and set forth in the Option agreement with respect to such
Option; provided, however, (i) that if a Participant’s employment is terminated by the
Participant on account of Retirement or if the Participant is a Vice President or above at
the time of termination of employment by the Company without Cause or by the Participant for
“Good Reason” (as such term is defined in the Participant’s employment contract or the
applicable executive severance policy), then the Option shall vest on a pro rata basis in
accordance with the Company’s policy in effect at the time of such termination; (ii) that if
a Participant’s employment is terminated on account of death or Disability, then all of the shares subject to the Option shall vest and become exercisable as of the time of such
termination; (iii) that no Option will be exercisable after the expiration of ten years from
the date the Option is granted; and (iv) that each Option shall be subject to earlier
expiration, termination, cancellation or exercisability as provided in this Plan.

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

          (3) An Option shall be exercised by delivering written notice to Del Monte’s principal
office, to the attention of the office specified by Del Monte. Such

 7.

 

notice shall specify the number of shares of Common Stock with respect to which the
Option is being exercised and the effective date of the proposed exercise and shall be
signed by the Participant. Payment for shares of Common Stock purchased upon the exercise
of an Option shall be made on the effective date of such exercise in full in cash or its
equivalent. The Committee, in its sole discretion, also may permit exercise (i) by
tendering previously acquired shares of Common Stock having an aggregate Fair Market Value
at the time of exercise equal to the total exercise price, or (ii) by any other means which
the Committee, in its sole discretion, determines to both provide legal consideration for
the Common Stock, and to be consistent with the purposes of the Plan.

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

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

          (6) Transferability. Unless the Option document (or an amendment thereto authorized by
the Committee) expressly states that the Option is transferable as provided hereunder, no
Option granted under this Plan, nor any interest in such Option, may be sold, assigned,
conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner prior to the
vesting or lapse of any and all restrictions applicable thereto, other then pursuant to the
beneficiary designation form described in Section 17 hereof or by will or the laws of
descent and distribution. With respect to an Option that is not intended to qualify an
Incentive Stock Option, the Committee may grant such Option or amend an outstanding Option
to provide that the Option is transferable or assignable to a member or members of the
Participant’s “immediate family,” as such term is defined in Rule 16a-1(e) under the
Exchange Act, or to a trust for the benefit solely of a member or members of the
Participant’s immediate family, or to a partnership or other entity whose only owners are
members of the Participant’s immediate family, provided the instrument of transfer is
approved by the Committee, Options so transferred are not again transferable other than by
will or by the laws of descent and distribution, and that following any such transfer or
assignment the Option will remain subject to substantially the same terms applicable to the
Option while held by the Participant, as modified as the Committee shall determine
appropriate, and the transferee shall execute an agreement agreeing to be bound by such
terms.

 8.

 

          (7) Subject to earlier termination pursuant to Sections 7(b)(2) and 10(d), and except
as the Committee may otherwise provide in an Option Agreement, exercise of an Option shall
be subject to the following:

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

               (ii) In the event that the employment of a Participant with the Company shall be
terminated by the Company without Cause or by the Participant for a reason other than death,
Disability or Retirement (A) Options granted to such Participant, to the extent that they
were exercisable at the time of such termination in accordance with Section 6(c)(1) above,
shall remain exercisable until the expiration of ninety (90) days after such termination, on
which date they shall expire, and (B) Options granted to such Participant, to the extent
that they were not exercisable at the time of such termination in accordance with Section
6(c)(1) above, shall expire at the close of business on the date of such termination;
provided, however, that no Option shall be exercisable after the expiration of its term.

               (iii) In the event that the employment of a Participant with the Company shall
terminate as the result of Retirement, Options granted to such Participant, to the extent
such Options were exercisable at the time of such termination in accordance with Section
6(c)(1) above, shall remain exercisable until the expiration of their original terms.
Options not exercisable at the time of termination in accordance with Section 6(c)(1) above
shall expire at the close of business on the date of such termination.

               (iv) In the event that the employment of a Participant with the Company shall terminate
as the result of Disability or death of the Participant, Options granted to such
Participant, to the extent such Options were exercisable at the time of such termination in
accordance with Section 6(c)(1) above, shall remain exercisable until the expiration of
their original terms.

               (v) If the Participant dies within three (3) months following an involuntary
termination of employment by the Company without Cause, then Options granted to such
Participant, to the extent such Options were exercisable at the time of such termination in
accordance with Section 6(c)(1) above, may be exercised until the expiration of the original
terms of such Options or, if sooner, one (1) year from the Participant’s death. Options not
exercisable at death shall expire at the close of business on the date of such employment
termination.

     (d) Limitations on Grant of Incentive Stock Options

          (1) the exercise price of any Incentive Stock Option shall be at 100% of Fair Market
Value on the date such option is granted, provided that, in the case of an individual, who
at the time of the proposed grant owns stock possessing more than 10% of the total combined
voting power of all classes of stock of Del Monte or any of its

 9.

 

Subsidiaries, the exercise price shall not be less than 110% of the Fair Market Value
of a share of Common Stock on the date on which such Incentive Stock Option is granted.

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

          (3) No Incentive Stock Option may be granted to an individual if, at the time of the
proposed grant, such individual owns stock possessing more than 10% of the total combined
voting power of all classes of stock of Del Monte or any of its Subsidiaries, unless (i) the
exercise price of such Incentive Stock Option is at least 110% of the Fair Market Value of a
share of Common Stock at the time such Incentive Stock Option is granted and (ii) such
Incentive Stock Option is not exercisable after the expiration of five years from the date
such Incentive Stock Option is granted.

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

7. Tandem Stock Appreciation Rights

     The Committee may grant in connection with any Option granted hereunder one or more Tandem
SARs relating to a number of shares of Common Stock less than or equal to the number of shares of
Common Stock subject to the related Option. A Tandem SAR may be granted at the same time as, or
subsequent to the time that, its related Option is granted. Each Tandem SAR shall be evidenced by
an agreement in such form as the Committee shall from time to time approve. Tandem SARs shall
comply with and be subject to the following terms and conditions:

     (a) Benefit Upon Exercise. The exercise of a Tandem SAR with respect to any number of shares of Common Stock shall entitle a Participant to (i) a cash payment, for each such
share, equal to the excess of (A) the Fair Market Value of a share of Common Stock on the
effective date of such exercise over (B) the exercise price of the related Option (which may
not be less than 100% of the Fair Market Value of a share of

 10.

 

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

     (b) Term and Exercise of Tandem SAR.

          (1) A Tandem SAR shall vest and become exercisable at the same time and to the same
extent as its related Option.

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

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

          (4) Each Tandem SAR shall be exercised during the Participant’s lifetime by the
Participant unless the related Option has been transferred as described in Section 6(c)(6),
above. Further, unless the related Option is transferable as described in Section 6(c)(6),
no Tandem SAR shall be assignable or transferable other than by will, the laws of descent
and distribution, or as provided in Section 17 hereof and otherwise than together with its
related Option.

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

8. Stand-Alone Stock Appreciation Rights

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

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

 11.

 

Alone SAR but shall not be less than 100% of the Fair Market Value of a share of Common
Stock on the date on which such Stand-Alone SAR is granted.

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

     (c) Term and Exercise of Stand-Alone SARs.

          (1) Each Stand-Alone SAR shall be exercisable on such date or dates, during such period
and for such number of shares of Common Stock as shall be determined by the Committee and
set forth in the Stand-Alone SAR agreement with respect to such Stand-Alone SAR and shall be
subject to such termination, expiration or cancellation provisions as provided in the
agreement evidencing such Stand-Alone SAR; provided, however, (i) that if a Participant’s
employment is terminated by the Participant on account of Retirement or if the Participant
is a Vice President or above at the time of termination of employment by the Company without
Cause or by the Participant for “Good Reason” (as such term is defined in the Participant’s
employment contract or the applicable executive severance policy), then the Stand-Alone SAR
shall vest on a pro rata basis in accordance with the Company’s policy in effect at the time
of such termination; (ii) that if a Participant’s employment is terminated on account of
death or Disability, then all of the shares subject to the Stand-Alone SAR shall vest and
become exercisable as of the time of such termination; (iii) that no Stand-Alone SAR will be
exercisable after the expiration of ten years from the date the Stand-Alone SAR is granted;
and (iv) that each Stand-Alone SAR shall be subject to earlier expiration, termination,
cancellation or exercisability as provided in this Plan.

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

          (3) Each Stand-Alone SAR shall be exercised during the Participant’s lifetime by the
Participant unless it is transferred in the manner described in Section 6(c)(6), above.
Further, unless the Stand-Alone SAR is transferable as described in Section 6(c)(6), no such
SAR shall be assignable or transferable otherwise than by will, the laws of descent and
distribution, or to the limited extent provided in Section 17 hereof.

 12.

 

          (4) Subject to earlier termination pursuant to Section 10(d), and except as the
Committee may otherwise provide in the applicable the Stand-Alone SAR agreement, exercise of
a Stand-Alone SAR shall be subject to the following:

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

               (ii) In the event that the employment of a Participant with the Company shall be
terminated by the Company without Cause or by the Participant for a reason other than death,
Disability or Retirement (A) Stand-Alone SARs granted to such Participant, to the extent
that they were exercisable at the time of such termination in accordance with Section
8(c)(1) above, shall remain exercisable until the expiration of ninety (90) days after such
termination, on which date they shall expire, and (B) Stand-Alone SARs granted to such
Participant, to the extent that they were not exercisable at the time of such termination in
accordance with Section 8(c)(1) above, shall expire at the close of business on the date of
such termination; provided, however, that no Stand-Alone SAR shall be exercisable after the
expiration of its term.

               (iii) In the event that the employment of a Participant with the Company shall
terminate as the result of Retirement, Stand-Alone SARs granted to such Participant, to the
extent such Stand-Alone SARs were exercisable at the time of such termination in accordance
with Section 8(c)(1) above, shall remain exercisable until the expiration of their original
terms. Stand-Alone SARs not exercisable at the time of termination in accordance with
Section 8(c)(1) above shall expire at the close of business on the date of such termination.

               (iv) In the event that the employment of a Participant with the Company shall terminate
as the result of Disability or death of the Participant, Stand-Alone SARs granted to such
Participant, to the extent such Stand-Alone SARs were exercisable at the time of such
termination in accordance with Section 8(c)(1) above, shall remain exercisable until the
expiration of their original terms.

               (v) If the Participant dies within three (3) months following an involuntary
termination of employment by the Company without Cause, then Stand-Alone SARs granted to
such Participant, to the extent such Stand-Alone SARs were exercisable at the time of such
termination in accordance with Section 8(c)(1) above, may be exercised until the expiration
of the original terms of such Stand-Alone SARs or, if sooner, one (1) year from the
Participant’s death. Stand-Alone SARs not exercisable at death shall expire at the close of
business on the date of such employment termination.

9. Stock Bonuses and Other Incentive Awards.

     (a) Grants of Awards. The Committee may grant Stock Bonuses in such amounts as it
shall determine from time to time. A Stock Bonus shall be paid at such time and subject to
such conditions as the Committee shall determine at the time of the grant of such Stock
Bonus. Certificates for shares of Common Stock granted as a Stock

 13.

 

Bonus shall be issued in the name of the Participant to whom such grant was made and
delivered to such Participant as soon as practicable after the date on which such Stock
Bonus is required to be paid. The Committee may also or in the alternative grant other
Incentive Awards which are not restricted to any specified form or structure and may
include, without limitation, restricted stock, stock purchase warrants, performance units or
performance shares. Performance units payable in cash that do not involve the issuance of
Common Stock and whose value is not measured by Common Stock also are permitted under the
Plan (“Cash Performance Units”).

     (b) Performance Awards. It is intended that Incentive Awards based on performance
shall qualify as performance-based compensation under Code Section 162(m). Hence, such
awards shall be based on a target amount and the degree to which relevant selected
performance criteria are satisfied. For purposes of Section 162(m) of the Code, Incentive
Awards, other than Cash Performance Units, shall be subject to the limitation set forth in
Section 3(d), and the maximum value of Cash Performance Units payable for any one fiscal
year of the Company to any Participant shall be $2,000,000. For each performance period in
respect of which such compensation is to be paid, the Committee shall select target amounts,
the relevant performance criteria and the weight to be afforded each criterion. The
relevant performance criteria shall include, either individually or in combination, applied
to the Company as a whole or individual units thereof, and measured either absolutely or
relative to a designated group of comparable companies: (i) cash flow, (ii) earnings per
share, (iii) return on equity, (iv) total stockholder return, (v) return on capital, (vi)
return on assets or net assets, (vii) revenue, (viii) income or net income, (ix) operating
income or net operating income, (x) operating profit or net operating profit, (xi) operating
margin, (xii) return on operating revenue, (xiii) market share, (xiv) earnings before
interest, taxes, depreciation, and amortization (EBITDA); (xv) return on invested capital
(ROIC); and (xvi) any other objective and measurable criterion tied to the Company’s
performance. The Committee shall designate in writing not later than ninety (90) days
following the beginning of a performance period the target bonus, performance criteria and
factors (reflecting targets for such criteria and relative weighting). The Committee may,
in its discretion, direct that any performance award be reduced on account of individual
performance below the amount calculated on the basis of one or more of the foregoing
performance criteria and related factors.

10. Adjustment Upon Changes in Common Stock and Certain Transactions

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

 14.

 

     (b) Outstanding Incentive Awards — Increase or Decrease in Issued Shares Without
Consideration. Subject to any required action by the stockholders of Del Monte, in the
event of any increase or decrease in the number of issued shares of Common Stock resulting
from a subdivision or consolidation of shares of Common Stock or the payment of a stock
dividend (but only on the shares of Common Stock), or any other increase or decrease in the
number of such shares effected without receipt or payment of consideration by Del Monte, or
change in the capitalization of Del Monte, the Committee shall proportionally adjust the
number of shares of Common Stock subject to each outstanding Incentive Award, and the
applicable exercise price per share of Common Stock of each such award to prevent dilution
or the enlargement of rights.

     (c)
Outstanding Incentive Awards — Changes of Control and Other Transactions. Upon the
occurrence of a Change of Control, all outstanding Incentive Awards shall vest and become
immediately exercisable. The Committee, in its discretion, shall determine whether
outstanding Incentive Awards shall vest and become automatically exercisable in the event of
a transaction other than a Change of Control. Further, the Committee, in its discretion,
shall determine whether any outstanding Incentive Awards will, in the context of a Change of
Control or any other transaction, be converted into comparable awards of a successor entity
or redeemed for payment in cash or kind or both.

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

11. Rights as a Stockholder

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

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

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

 15.

 

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

13. Securities Matters.

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

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

     (c) In the event that the Committee defers the effectiveness of the exercise of a
Participant of an Option granted hereunder in order to allow the issuance of shares of
Common Stock pursuant thereto to be made pursuant to registration or an exemption from
registration or other methods for compliance available under federal or state securities
laws, such Participant may elect, by delivery of written notice by the Participant to the
Company not later than thirty (30) days following his receipt of notice of such deferral or
the expiration of such deferral, to surrender the exercisable portion of such Option (or any
portion thereof) to the Company in consideration for a lump sum payment in cash in an amount
equal to the product of (A) the excess of (i) the value of a share of Common Stock as
determined by the Board of Directors as of the date of surrender over (ii) the per share
exercise price of the Option and (B) the number of shares

 16.

 

with respect to which such Participant desires and is entitled to exercise such Option.
Notice shall be delivered in person or by certified mail, return receipt requested and
shall be deemed to have been given when personally delivered or three (3) days after
mailing.

14. Withholding Taxes

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

     (b) Stock Remittance. At the election of the Participant, subject to the approval of
the Committee, when shares of Common Stock are to be issued upon the exercise or settlement
of an Incentive Award, the Participant may tender to Del Monte a number of shares of Common
Stock determined by such Participant, the Fair Market Value of which at the tender date the
Committee determines to be sufficient to satisfy the federal, state and local withholding
tax requirements, if any, attributable to such exercise or settlement and not greater than
the Participant’s estimated total federal, state and local tax obligations associated with
such exercise or settlement. Such election shall satisfy the Participant’s obligations
under Section 14(a) hereof.

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

15. Amendment of the Plan

     The Board of Directors may at any time suspend or discontinue the Plan or revise or amend it
in any respect whatsoever; provided, however, (i) that without approval of the stockholders, no
revision or amendment shall, except as provided in Section 10 hereof, increase the number of shares
of Common Stock that may be issued under the Plan; and (ii) no such action shall impair rights and
obligations under any Incentive Award granted prior to such action, except with the written consent
of the affected Participant.

 17.

 

16. No Obligation to Exercise

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

17. Transfers Upon Death

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

18. Expenses and Receipts

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

19. Failure to Comply

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

20. Compliance with Rule 16b-3

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

 18.

 

21. Repricing

     Without the approval of stockholders, no options granted hereunder shall be repriced. For
purposes of this Plan, the term “reprice” shall mean lowering the exercise price of previously
awarded Options within the meaning of Item 402(i) under Securities and Exchange Commission
Regulation S-K (including canceling previously awarded Options and regrinding them with a lower
exercise price).

22. Applicable Law

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

23. Effective Date; Restatement Date.

     The Plan commenced on the Effective Date, was approved by the stockholders of Del Monte within
twelve (12) months thereafter, and subsequently was amended and restated on the Restatement Date,
subject to approval by the stockholders of Del Monte within twelve (12) months thereafter. Subject
to Section 15 (regarding the Board’s right to amend or terminate the Plan), the Plan shall remain
in effect following the Restatement Date; provided, however, that without further stockholder
approval, no Incentive Stock Option may be granted under the Plan after the tenth anniversary of
the Restatement Date.

 19.

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