Document:

exv10w1

 

EXHIBIT 10.1

EXECUTION COPY

Goldman Sachs International | Peterborough Court | 133 Fleet Street |
London EC4A 2BB | Tel: 020-7774-1000 | Telex: 887902 | Cable: GOLDSACHS LONDON
| Registered in England No. 2263951 | Registered Office As Above | Authorised
and regulated by the Financial Services Authority

Opening Transaction

	 	 	 
	To:

	 	Del Monte Foods Company
	 

	 	One Market @ The Landmark
	 

	 	San Francisco, CA 94105
	 
	 	 
	From:

	 	Goldman Sachs International
	 
	 	 
	Subject:

	 	Collared Accelerated Share Repurchase Transaction – Execution Pricing
	 
	 	 
	Ref. No:

	 	EN50V8000000000
	 
	 	 
	Date:

	 	June 29, 2005

 

     This master confirmation (“Master Confirmation”) dated as of June 29, 2005, is intended to
supplement the terms and provisions of certain Transactions (each, a “Transaction”) entered into
from time to time between Goldman Sachs International (“GSI”) and Del Monte Foods Company
(“Counterparty”). This Master Confirmation, taken alone, is neither a commitment by either party
to enter into any Transaction nor evidence of a Transaction. The terms of any particular
Transaction shall be set forth in a Supplemental Confirmation in the form of Annex A hereto and
which references this Master Confirmation, in which event the terms and provisions of this Master
Confirmation shall be deemed to be incorporated into and made a part of each such Supplemental
Confirmation. This Master Confirmation and each Supplemental Confirmation together shall
constitute a “Confirmation” as referred to in the Agreement specified below. GSI is acting as
principal in each Transaction and Goldman, Sachs & Co. (“GS&Co.”), its affiliate, is acting as
agent for GSI and Counterparty in each Transaction. GSI is not a member of the Securities Investor
Protection Corporation.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.,
are incorporated into this Master Confirmation. This Master Confirmation and each Supplemental
Confirmation evidences a complete binding agreement between the Counterparty and GSI as to the
terms of each Transaction to which this Master Confirmation and the related Supplemental
Confirmation relates.

     All provisions contained in or incorporated by reference in the form of the 1992 ISDA Master
Agreement (Multicurrency-Cross Border) (the “ISDA Form” or the “Agreement”), will govern this
Master Confirmation and each Supplemental Confirmation except as expressly modified below. This
Master Confirmation and each Supplemental Confirmation, together with all other documents referring
to the Agreement confirming Transactions entered into between GSI and Counterparty shall
supplement, form a part of, and be subject to the ISDA Form as if GSI and Counterparty had executed
the Agreement (but without any Schedule except for (i) the election of Loss and Second Method, New
York law (without regard to the conflicts of law principles) as the governing law and US Dollars
(“USD”) as the Termination Currency, (ii) the election that subparagraph (ii) of Section 2(c) will
not apply to Transactions, (iii) the replacement of the word “third” in the last line of Section
5(a)(i) with the word “first” and (iv) the election that the “Cross Default” provisions of Section
5(a)(vi) shall apply to Counterparty, with a “Threshold Amount” of USD 50 million).

     All provisions contained in the Agreement shall govern this Master Confirmation and the
related Supplemental Confirmation relating to a Transaction except as expressly modified below or
in the related Supplemental Confirmation. With respect to any relevant Transaction, the Agreement,
this Master Confirmation and the related Supplemental Confirmation shall represent the entire
agreement and understanding of the parties

 

 

with respect to the subject matter and terms of such Transaction and shall supersede all prior
or contemporaneous written or oral communications with respect thereto.

     If, in relation to any Transaction to which this Master Confirmation and related Supplemental
Confirmation relate, there is any inconsistency between the Agreement, this Master Confirmation,
any Supplemental Confirmation and the Equity Definitions that are incorporated into any
Supplemental Confirmation, the following will prevail for purposes of such Transaction in the order
of precedence indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation; (iii)
the Agreement; and (iv) the Equity Definitions.

     1. Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity
Definitions. Set forth below are the terms and conditions which, together with the terms and
conditions set forth in each Supplemental Confirmation (in respect of each relevant Transaction),
shall govern each such Transaction.

General Terms:

	 	 	 	 	 
	 

	 	Trade Date:
	 	For each Transaction, as set forth in the Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Seller:
	 	Counterparty
	 
	 	 	 	 
	 

	 	Buyer:
	 	GSI
	 
	 	 	 	 
	 

	 	Shares:
	 	The common stock, par value USD 0.01 per share, of Counterparty (Ticker: DLM)
	 
	 	 	 	 
	 

	 	Number of Shares:
	 	For each Transaction, as set forth in the Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Forward Price:
	 	For each Transaction, as set forth in the Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Capped Settlement Amount:
	 	For each Transaction, as set forth in the Supplemental
Confirmation.
	 
	 	 	 	 
	 

	 	Floor Settlement Amount:
	 	For each Transaction, as set forth in the Supplemental
Confirmation.
	 
	 	 	 	 
	 

	 	Hedge Forward Differential:
	 	For each Transaction, as set forth in the Supplemental
Confirmation.
	 
	 	 	 	 
	 

	 	Hedge Forward	 	 
	 

	 	Cash Settlement Amount:
	 	For each Transaction, as set forth in the Supplemental
Confirmation.
	 
	 	 	 	 
	 

	 	Prepayment:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	Variable Obligation:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	Exchange:
	 	New York Stock Exchange
	 
	 	 	 	 
	 

	 	Related Exchange(s):
	 	All Exchanges
	 
	 	 	 	 
	 

	 	Market Disruption Event:
	 	The definition of “Market Disruption Event” in Section 6.3(a) of
the Equity Definitions is hereby amended by inserting the words “at any time on any
Scheduled Trading Day during the Valuation Period or” after the word “material,” in the
third line thereof.

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	 	Counterparty Additional	 	 
	 

	 	Payment Amount:
	 	For each Transaction, as set forth in the Supplemental Confirmation.
Counterparty shall pay the Counterparty Additional Payment Amount to GSI on the Cash
Settlement Payment Date.

Valuation:

	 	 	 	 	 
	 

	 	Valuation Period:
	 	Each Scheduled Trading Day during the period commencing on and including
the first succeeding Scheduled Trading Day following the Hedge Completion Date (as
defined in the Supplemental Confirmation), to and including the Valuation Date (but
excluding any day(s) on which the Valuation Period is suspended in accordance with
Section 5 herein and including any day(s) by which the Valuation Period is extended
pursuant to the provision below).
	 
	 	 	 	 
	 

	 	 	 	Notwithstanding anything to the contrary in the
Equity Definitions, to the extent that any Scheduled
Trading Day in the Valuation Period is a Disrupted
Day, the Calculation Agent will at any time on or
prior to the Valuation Date have the right in its
good faith sole discretion to extend the Valuation
Period, provide Counterparty of an explanation of
such extension and postpone the Valuation Date for a
number of Scheduled Trading Days as it deems
necessary, based upon the occurrence of any Disrupted
Day(s) in the Valuation Period, provided that if
there are 9 consecutive Disrupted Days during the
Valuation Period, then notwithstanding the occurrence
of a Disrupted Day, the Calculation Agent shall have
the option in its commercially reasonable discretion
to either determine the Settlement Price using its
good faith estimate of the value for the Share on
such 9th consecutive day or elect to
further extend the Valuation Period as it deems
necessary.
	 
	 	 	 	 
	 

	 	Valuation Date:
	 	For each Transaction, as set forth in the Supplemental Confirmation (as the
same may be postponed in accordance with the provisions of “Valuation Period” and
Section 5 herein). The Calculation Agent will have the right on any Scheduled Trading
Day to accelerate the Valuation Date based on the completion of the unwind of its Hedge
Positions for the related Transaction. If the Calculation Agent elects to exercise
this right to accelerate the Valuation Date, then the Scheduled Trading Day immediately
following the Scheduled Trading Day on which the Calculation Agent gives notice to
Counterparty of its intention to accelerate the Valuation Date shall be the Valuation
Date for the purposes of determining amounts payable by either party in respect of the
related Transaction.

Settlement Terms:

	 	 	 	 	 
	 

	 	Settlement Currency:
	 	USD
	 
	 	 	 	 
	 

	 	Settlement Method Election:
	 	Applicable; provided that (a) Section 7.1 of the Equity
Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof
and replacing it with the

-3-

 

	 	 	 	 	 
	 

	 	 	 	words “Net Share” and deleting the word “Physical” in
the last line thereof and replacing it with word
“Cash” and (b) in the event that GSI would deliver to
Counterparty an amount of Shares under Net Share
Settlement, Cash Settlement shall be applicable in
lieu of Net Share Settlement.
	 
	 	 	 	 
	 

	 	Electing Party:
	 	Counterparty
	 
	 	 	 	 
	 

	 	Settlement Method Election Date:
	 	10 Scheduled Trading Days prior to the originally scheduled
Valuation Date.
	 
	 	 	 	 
	 

	 	Default Settlement Method:
	 	Cash Settlement
	 
	 	 	 	 
	 

	 	Additional Cash Settlement	 	 
	 

	 	Procedures:
	 	Notwithstanding anything to the contrary in Section 8.4(a) of the Equity
Definitions, the following additional amounts will be payable on the Cash Settlement
Payment Date:
	 
	 	 	 	 
	 

	 	 	 	(a) if the Collared Forward Cash Settlement Amount is
a positive number, then Seller shall pay to Buyer the
Collared Forward Cash Settlement Amount (such amount,
the “Net Cash Amount”); or
	 
	 	 	 	 
	 

	 	 	 	(b) if the Collared Forward Cash Settlement Amount is
a negative number, then Buyer shall pay to Seller the
absolute value of the Collared Forward Cash
Settlement Amount.
	 
	 	 	 	 
	 

	 	Collared Forward	 	 
	 

	 	Cash Settlement Amount:
	 	An amount in the Settlement Currency equal to the sum of the
Hedge Forward Differential and:
	 
	 	 	 	 
	 

	 	 	 	(a) if the Hedge Forward Cash Settlement Amount is a
positive number, the lesser of the Hedge Forward Cash
Settlement Amount and the Capped Settlement Amount;
or
	 
	 	 	 	 
	 

	 	 	 	(b) if the Hedge Forward Cash Settlement Amount is a
negative number, the lesser of the absolute value of
the Hedge Forward Cash Settlement Amount and the
Floor Settlement Amount.
	 
	 	 	 	 
	 

	 	Forward Cash Settlement Amount:
	 	An amount in the Settlement Currency equal to the product of
(a) the Number of Shares multiplied by one minus the Applicable Percentage, multiplied
by (b) an amount equal to (i) the Settlement Price minus (ii) the Forward Price.
	 
	 	 	 	 
	 

	 	Applicable Percentage:
	 	For each Transaction, as set forth in the Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Settlement Price:
	 	The arithmetic mean of the per Share prices at which GSI purchases the
Number of Shares during the Valuation Period.
	 
	 	 	 	 
	 

	 	Cash Settlement Payment Date:
	 	3 Currency Business Days after the Valuation Date.
	 
	 	 	 	 
	 

	 	Counterparty’s Contact Details	 	 
	 

	 	for Purpose of Giving Notice:
	 	To be provided by Counterparty
	 
	 	 	 	 
	 

	 	GS&Co.’s Contact Details for	 	 

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	 	Purpose of Giving Notice:
	 	Telephone No.: (212) 902-8996
	 

	 	 	 	Facsimile No.: (212) 902-0112
	 

	 	 	 	Attention: Equity Operations: Options and
Derivatives
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 

	 	 	 	Kelly Coffey
	 

	 	 	 	Equity Capital Markets
	 

	 	 	 	One New York Plaza
	 

	 	 	 	New York, NY 10004
	 

	 	 	 	Telephone No.: (212) 902-1037
	 

	 	 	 	Facsimile No.: (212) 346-2126

Net Share Settlement:

	 	 	 	 	 
	 

	 	Net Share Settlement Procedures:
	 	Net Share Settlement shall be made in accordance
with the procedures attached hereto as Annex B.
	 
	 	 	 	 
	 

	 	Net Share Settlement Price:
	 	(a) in respect of any Share for which the Exchange is
an auction or “open outcry” exchange that has a price as of the Valuation Time at which
any trade can be submitted for execution, the Net Share Settlement Price shall be the
price per Share as of the Valuation Time on the Net Share Valuation Date as reported in
the official real-time price dissemination mechanism for such Exchange and (b) in
respect of any Share for which the Exchange is a dealer exchange or dealer quotation
system, the Net Share Settlement Price shall be the mid-point of the highest bid and
lowest ask prices quoted as of the Valuation Time on the Net Share Valuation Date (or
the last such prices quoted immediately before the Valuation Time) without regard to
quotations that “lock” or “cross” the dealer exchange or dealer quotation system. In
all cases the Net Share Settlement Price shall be reduced by the per Share amount of
the underwriting discount and/or commissions that are consistent with market discounts
and commissions charged by comparable underwriters at such time and agreed to between
GSI and Counterparty as contemplated by the Net Share Settlement Procedures.
	 
	 	 	 	 
	 

	 	Valuation Time:
	 	As provided in Section 6.1 of the Equity Definitions; provided that Section
6.1 of the Equity Definitions is hereby amended by inserting the words “Net Share
Valuation Date,” before the words “Valuation Date” in the first and third lines
thereof.
	 
	 	 	 	 
	 

	 	Net Share Valuation Date:
	 	The Exchange Business Day immediately following the
Valuation Date.
	 
	 	 	 	 
	 

	 	Net Share Settlement Date:
	 	The third Exchange Business Day immediately following
the Valuation Date.
	 
	 	 	 	 
	 

	 	Reserved Shares:
	 	For each Transaction, as set forth in the Supplemental Confirmation.

Share Adjustments:

	 	 	 	 	 
	 

	 	Method of Adjustment:
	 	Calculation Agent Adjustment

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Extraordinary Events:

Consequences of Merger Events:

	 	 	 	 	 
	 

	 	(a) Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	(b) Share-for-Other:
	 	Cancellation and Payment on that portion of the Other
Consideration that consists of cash; Modified Calculation Agent Adjustment on the
remainder of the Other Consideration.
	 
	 	 	 	 
	 

	 	(c) Share-for-Combined:
	 	Component Adjustment
	 
	 	 	 	 
	 

	 	Determining Party:
	 	GSI

	 	 	 
	Tender Offer:

	 	Applicable

Consequences of Tender Offers:

	 	 	 	 	 
	 

	 	(a) Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	(b) Share-for-Other:
	 	Cancellation and Payment on that portion of the Other
Consideration that consists of cash; Modified Calculation Agent Adjustment on the
remainder of the Other Consideration.
	 
	 	 	 	 
	 

	 	(c) Share-for-Combined:
	 	Component Adjustment
	 
	 	 	 	 
	 

	 	Determining Party:
	 	GSI

Additional Disruption Events:

	 	 	 	 	 
	 

	 	(a) Change in Law:
	 	Applicable
	 
	 	 	 	 
	 

	 	(b) Failure to Deliver:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	(c) Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	(d) Loss of Stock Borrow:
	 	Applicable; furthermore Sections 12.9(a)(vii) and
12.9(b)(iv) of the Equity Definitions are amended by deleting the words “at a rate
equal to or less than the Maximum Stock Loan Rate” and replacing them with “at a rate
of return equal to or greater than zero”.
	 
	 	 	 	 
	 

	 	  Hedging Party:

	 	GSI
	 
	 	 	 	 
	 

	 	Determining Party:
	 	GSI

	 	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgements
	 	 
	Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgements:

	 	Applicable
	 
	 	 
	Net Share Settlement following Extraordinary

Event:

	 	Counterparty shall have the right, in its sole discretion, to make any payment
required to be made by it pursuant to

-6-

 

	 	 	 
	 

	 	Sections 12.7 or 12.9 of the Equity Definitions (except with respect to any portion of the consideration for the Shares consisting
of cash in the event of a Merger Event or Tender Offer) following the occurrence of an Extraordinary Event by electing to Net Share
Settle the Transactions under this Master Confirmation in accordance with the terms, and subject to the conditions, for Net Share
Settlement herein by giving written notice to GSI of such election on the day that the notice fixing the date that the Transactions
are terminated or cancelled, as the case may be, (the “Cancellation Date”) pursuant to the applicable provisions of Section 12 of
the Equity Definitions is effective. If Counterparty elects Net Share Settlement: (a) the Net Share Valuation Date shall be the
date specified in the notice fixing the date that the Transactions are terminated or cancelled, as the case may be; provided that
the Net Share Valuation Date shall be either the Exchange Business Day that such notice is effective or the first Exchange Business
Day immediately following the Exchange Business Day that such notice is effective, (b) the Net Share Settlement Date shall be deemed
to be the Exchange Business Day immediately following the Cancellation Date and (c) all references to the Forward Cash Settlement
Amount or the Net Cash Amount, as the case may be, in Annex B hereto shall be deemed to be references to the Cancellation Amount.
	 
	 	 
	Net Share Settlement Upon
	 	 
	Early Termination:

	 	Counterparty shall have the right, in its sole discretion, to make any payment
required to be made by it (the “Early Termination Amount”) pursuant to Sections
6(d) and 6(e) of the Agreement following the occurrence of an Early Termination
Date in respect of the Agreement by electing to Net Share Settle all the
Transactions under this Master Confirmation in accordance with the terms, and
subject to the conditions, for Net Share Settlement herein by giving written
notice to GSI of such election on the day that the notice fixing an Early
Termination Date is effective. If Counterparty elects Net Share Settlement: (a)
the Net Share Valuation Date shall be the date specified in the notice fixing an
Early Termination Date; provided that the Net Share Valuation Date shall be
either the Exchange Business Day that such notice is effective or the first
Exchange Business Day immediately following the Exchange Business Day that such
notice is effective, (b) the Net Share Settlement Date shall be deemed to be the
Exchange Business Day immediately following the Early Termination Date and (c)
all references to the Forward Cash Settlement Amount or the Net Cash Amount, as
the case may be, in Annex B hereto shall be deemed references to the Early
Termination Amount.
	 
	 	 
	Transfer:

	 	Notwithstanding anything to the contrary in the Agreement, GSI may assign,
transfer and set over all rights, title and interest, powers, privileges and
remedies of GSI under any Transaction, in whole or in part, to an affiliate of
GSI whose obligations with respect to such Transaction are guaranteed by The
Goldman Sachs Group, Inc. in form and substance

-7-

 

	 	 	 
	 

	 	reasonably satisfactory to Counterparty, but without requiring the consent of Counterparty.
	 
	 	 
	GSI Payment Instructions:

	 	Chase Manhattan Bank New York
	 

	 	For A/C Goldman, Sachs & Co.
	 

	 	A/C # 930-1-011483
	 

	 	ABA: 021-000021
	 
	 	 
	Counterparty Payment Instructions:

	 	To be provided by Counterparty

     2. Calculation Agent: GSI

     3. Additional Provisions.

     (a) Each party represents and warrants that it (i) is an “eligible contract participant”, as
defined in the U.S. Commodity Exchange Act, as amended and (ii) is entering into each Transaction
hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not
for the benefit of any third party.

     (b) Each party acknowledges that the offer and sale of each Transaction to it is intended to
be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by
virtue of Section 4(2) thereof and the provisions of Regulation D promulgated thereunder
(“Regulation D”). Accordingly, each party represents and warrants to the other that (i) it has the
financial ability to bear the economic risk of its investment in each Transaction and is able to
bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined
under Regulation D, (iii) it will purchase each Transaction for investment and not with a view to
the distribution or resale thereof, and (iv) the disposition of each Transaction is restricted
under this Master Confirmation and each Supplemental Confirmation, the Securities Act and state
securities laws.

     (c) As a broker-dealer registered with the U.S. Securities and Exchange Commission, GS&Co., as
agent of GSI and Counterparty, will be responsible for (i) effecting each Transaction entered into
by GSI and Counterparty hereunder, (ii) issuing all required confirmations and statements to GSI
and Counterparty, (iii) maintaining books and records relating to the Transaction entered into
hereunder as required by SEC regulations, and (iv) receiving, delivering and safeguarding
Counterparty’s funds and any securities in connection with each Transaction entered into hereunder,
in compliance with SEC regulations.

     Counterparty understands and agrees that GS&Co. will act as agent for both parties with
respect to each Transaction. GS&Co. is so acting solely in its capacity as agent for Counterparty
and GSI pursuant to instructions from Counterparty and GSI. GS&Co. shall have no responsibility or
personal liability to either party arising from any failure by either party to pay or perform any
obligation under any Transaction. Each party agrees to proceed solely against the other to collect
or recover any amount owing to it or enforce any of its rights in connection with or as a result of
any Transaction.

     Notwithstanding the above, for purposes of applicable rules of The Financial Services
Authority (“FSA”), GSI shall treat GS&Co. alone as its customer. As a consequence, most of the
customer protections available under FSA rules will not be available to Counterparty.

     Notwithstanding any provisions of the Agreement, all communications relating to each
Transaction or the Agreement shall be transmitted exclusively through GS&Co. at One New York Plaza,
New York, New York 10004, Telephone No. (212) 902-1981, Facsimile No. (212) 428-1980/1983.

     (d) GSI hereby represents, warrants and covenants to Counterparty that during all relevant
times beginning the date hereof through and including the Hedge Completion Date it will comply with
the provisions of Rule 10b-18(b)(1)(2),(3) and (4) of the Exchange Act to the extent that it
purchases any Shares in connection with its Hedge Positions, subject to any delays between the
execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond its
reasonable control.

-8-

 

     (e) For the avoidance of doubt, GSI and GS&Co. each have implemented reasonable policies and
procedures, taking into consideration the nature of its business, to ensure that individuals making
investment decisions would not violate laws prohibiting trading on the basis of material nonpublic
information. Such individuals shall not be in possession of material nonpublic information during
all relevant times beginning the date hereof through and including the Hedge Completion Date.

     (f) For the avoidance of doubt, no collateral is required to be posted by Counterparty with
respect to any Transaction.

     4. Additional Representations, Warranties and Covenants of Counterparty.

     As of (i) the date hereof and (ii) the period of time from and including the time at which
Counterparty places an order with GSI for a Transaction (the “Time of the Order”) to and including
the Hedge Completion Date, Counterparty represents, warrants and covenants to GSI that:

     (a) Notwithstanding clause (ii) above, solely on the date hereof, it is not aware of any third
party tender offer for its Shares and it is not entering into this Transaction as part of a self
tender offer for its Shares;

     (b) it is not entering into any Transaction on the basis of, and is not aware of, any material
non-public information with respect to the Shares or in anticipation of, in connection with, or to
facilitate, a distribution of its securities, a self tender offer or a third-party tender offer;

     (c) it is not entering into any Transaction to create, and will not engage in any other
securities or derivative transaction to create, a false or misleading appearance of active trading
or market activity in the Shares (or any security convertible into or exchangeable for the Shares),
or which would otherwise violate the Exchange Act;

     (d) Counterparty is in compliance with its reporting obligations under the Exchange Act and
its most recent Annual Report on Form 10-K, together with all reports subsequently filed by it
pursuant to the Exchange Act, taken together and as amended and supplemented to the date of this
representation, do not ,as of their respective filing dates, contain any untrue statement of a
material fact or omit any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances in which they were made, not misleading;

     (e) each Transaction is being entered into pursuant to a publicly disclosed Share buy-back
program and its Board of Directors has approved the use of derivatives to effect the Share buy-back
program;

     (f) notwithstanding the generality of Section 13.1 of the Equity Definitions, GSI is not
making any representations or warranties with respect to the treatment of any Transaction under
FASB Statements 149 or 150, EITF 00-19 (or any successor issue statements) or under FASB’s
Liabilities & Equity Project;

     (g) it has not, and during any Valuation Period (as extended pursuant to the provisions of
Section 5 and “Valuation Period” herein) or Hedge Period will not, enter into agreements similar
to the Transactions described herein where the valuation period in such other transaction will
overlap at any time (including as a result of extensions in such valuation period as provided in
the relevant agreements) with any Valuation Period (as extended pursuant to the provisions of
Section 5 and “Valuation Period” herein) or Hedge Period under this Master Confirmation, provided
that Counterparty shall have the right to enter into other similar transactions, including 10b5-1
trading plans with GSI or its affiliates on mutually agreeable terms. In the event that the
valuation period in any other similar transaction overlaps with any Valuation Period or any Hedge
Period under this Master Confirmation as a result of any extension made pursuant to the provisions
of Section 5 and “Valuation Period” herein, Counterparty shall promptly amend such transaction to
avoid any such overlap;

     (h) subject to the process and procedures outlined in Section 5(a) below, during the Valuation
Period and the Hedge Period (as extended or suspended pursuant to the provisions of Section 5 and
“Valuation Period” herein) the Shares or securities that are convertible into, or exchangeable or
exercisable for

-9-

 

Shares are not subject to a “restricted period” as such term is defined in Regulation M
promulgated under the Exchange Act (“Regulation M”);

     (i) upon entering into each Transaction the Counterparty covenants that it will immediately
retire or hold in treasury the Number of Shares purchased by it in connection with the relevant
Transaction from an entity affiliated with GSI; and

     (j) it shall report each Transaction as required under Regulation S-K of the Exchange Act.

     5. Suspension of Valuation Period and/or Hedge Period.

     (a) If Counterparty concludes that it will be engaged in a distribution of the Shares for
purposes of Regulation M, Counterparty agrees that it will direct GSI on no less than one Scheduled
Trading Day’s written notice, direct GSI not to purchase Shares in connection with hedging any
Transaction during the “restricted period” (as defined in Regulation M). If on any Scheduled
Trading Day Counterparty delivers written notice (and confirms by telephone) by 8:30 a.m. New York
Time (the “Notification Time”) then such notice shall be effective to suspend the Valuation Period
or the Hedge Period, as the case may be, as of such Notification Time. In the event that
Counterparty delivers notice and/or confirms by telephone after the Notification Time, then the
Valuation Period or the Hedge Period, as the case may be, shall be suspended effective as of 8:30
a.m. New York Time on the following Scheduled Trading Day or as otherwise required by law or agreed
between Counterparty and GSI. The Valuation Period shall be suspended and the Valuation Date
extended for each Scheduled Trading Day in such restricted period and GSI agrees that, upon receipt
of notice from Counterparty, GSI will not effect any transactions in Shares that would give rise to
a violation of Regulation M.

     (b) In the event that GSI concludes, in its sole discretion, that it is appropriate with
respect to any legal, regulatory or self-regulatory requirements or related policies and procedures
(whether or not such requirements, policies or procedures are imposed by law or have been
voluntarily adopted by GSI), for it to refrain from purchasing Shares on any Scheduled Trading Day
during the Valuation Period or the Hedge Period, GSI may by written notice to Counterparty elect to
suspend the Valuation Period or the Hedge Period, as the case may be, for such number of Scheduled
Trading Days as is specified in the notice. The notice shall not specify, and GSI shall not
otherwise communicate to Counterparty, the reason for GSI’s election to suspend the Valuation
Period or Hedge Period. The Valuation Period shall be suspended and the Valuation Date extended
for each Scheduled Trading Day occurring during any such suspension.

     (c) In the event that the Valuation Period is suspended pursuant to Sections 5(a) or (b)
above, then the Calculation Agent will at any time on or prior to the Valuation Date have the right
to extend the Valuation Period and postpone the Valuation Date for a number of Scheduled Trading
Days equal to (i) the number of Scheduled Trading Days for which the Valuation Period was suspended
to the extent that such suspension was for full trading days or (ii) as it deems necessary in its
commercially reasonable discretion based on the occurrence of such suspension(s) to the extent that
such suspension was for partial trading days.

     6. Counterparty Purchases. Counterparty represents, warrants and covenants to GSI
that for each Transaction:

     (a) Counterparty (or any “affiliated purchaser” as defined in Rule 10b-18 under the Exchange
Act (“Rule 10b-18”)) shall not, without the prior written consent of GSI, purchase any Shares,
listed contracts on the Shares or securities that are convertible into, or exchangeable or
exercisable for Shares (including, without limitation, any Rule 10b-18 purchases of blocks (as
defined in Rule 10b-18)) during any Valuation Period or Hedge Period (as extended pursuant to the
provisions of Section 5 and “Valuation Period” herein). During this time, any such purchases by
Counterparty shall be made through GSI, or if not through GSI, with the prior written consent of
GSI, and in compliance with Rule 10b-18 or otherwise in a manner that Counterparty and GSI believe
is in compliance with applicable requirements. Any such purchase by Counterparty shall be
disregarded for purposes of determining the Forward Cash Settlement Amount. To the extent that
Counterparty makes any such purchase other than through GSI, or other than in connection with any
Transaction, Counterparty hereby represents and warrants to GSI that (a) it will not take other
action that would or could cause GSI’s purchases of the Shares during the Valuation Period and the
Hedge Period not to comply with Rule 10b-18 and (b) any such purchases will not

-10-

 

otherwise constitute a violation of Section 9(a) or Rule 10(b) of the Exchange Act. This
subparagraph (a) shall not restrict any purchases by Counterparty of Shares effected during any
suspension of any Valuation Period or Hedge Period in accordance with Section 5 herein and any
purchases during such suspension shall be disregarded in calculating the Forward Cash Settlement
Amount; and

     (b) Counterparty is entering into this Master Confirmation and each Transaction hereunder in
good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1. It is the
intent of the parties that each Transaction entered into under this Master Confirmation comply with
the requirements of Rule 10b5-1(c)(1) and (2) and each Transaction entered into under this Master
Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c). Counterparty
agrees that it will not seek to control or influence GSI to make “purchases or sales” (within the
meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction entered into under this Master
Confirmation, including, without limitation, GS&Co.’s decision to enter into any hedging
transactions. Counterparty represents and warrants that it has consulted with its own advisors as
to the legal aspects of its adoption and implementation of this Master Confirmation and each
Supplemental Confirmation under Rule 10b5-1.

     7. Additional Termination Events. Additional Termination Event will apply. The
following will constitute Additional Termination Events, in each case with Counterparty as the sole
Affected Party:

     (a) The Corporate Credit Rating or Senior Implied Rating of the Counterparty is rated either
below B- by Standard & Poor’s Rating Services or below B2 by Moody’s Investors Services, Inc. (or
their successors), respectively;

     (b) Notwithstanding anything to the contrary in the Equity Definitions, the occurrence of a
Nationalization, Insolvency or a Delisting (in each case effective on the Announcement Date as
determined by the Calculation Agent);

     (c) Notwithstanding anything to the contrary in the Equity Definitions, the occurrence of a
Merger Event (effective on the Merger Date) or a Tender Offer (effective on the Tender Offer Date)
in respect of which any Other Consideration received for the Shares does not consist of cash. For
the avoidance of doubt, in the event that any portion of the consideration received for the Shares
consists of cash or New Shares, this Additional Termination Event shall only apply with respect to
all or any Transaction(s) (or portions thereof) remaining after giving effect to the provisions in
“Consequences of Merger Events” or “Consequences of Tender Offers”, as the case may be, above; or

     (d) Notwithstanding anything to the contrary in the Equity Definitions, an Extraordinary
Dividend is declared by the Counterparty.

     8. Automatic Termination Provisions. Notwithstanding anything to the contrary in
Section 6 of the Agreement:

     (a) An Additional Termination Event with Counterparty as the sole Affected Party will
automatically occur without any notice or action by GSI or Counterparty if the price of the Shares
on the Exchange at any time falls below the Termination Price (as specified in the related
Supplemental Confirmation) provided that (for the avoidance of doubt only) such Additional
Termination Event shall be an Additional Termination Event only with respect to the Transaction
documented in such related Supplemental Confirmation. The Exchange Business Day that the price of
the Shares on the Exchange at any time falls below the Termination Price will be the “Early
Termination Date” for purposes of the Agreement.

     (b) Notwithstanding anything to the contrary in Section 6(d) of the Agreement, following the
occurrence of such an Additional Termination Event, GSI will notify Counterparty of the amount
owing under Section 6(e) of the Agreement within a commercially reasonable time period (with such
period based upon the amount of time, determined by GSI (or any of its Affiliates) in its good
faith and commercially reasonable discretion, that it would take to unwind any of its Hedge
Position(s) related to the Transaction in a commercially reasonable manner based on relevant market
indicia). For purposes of the “Net Share Settlement Upon Early Termination” provisions herein, (i)
the date that such notice is effective (the “Notice Date”) shall constitute the “Net

-11-

 

Share Valuation Date”, (ii) the Exchange Business Day immediately following the Notice Date
shall be the Net Share Settlement Date and (iii) all references to the Forward Cash Settlement
Amount and the Net Cash Amount, as the case may be, in Annex B hereto shall be deemed to be the
Early Termination Amount.

     9. Special Provisions for Merger Events. Notwithstanding anything to the contrary
herein or in the Equity Definitions, to the extent that an Announcement Date for a potential Merger
Transaction occurs during any Valuation Period:

     (a) Promptly after request from GSI, Counterparty shall provide GSI with written notice
specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18)
during the three full calendar months immediately preceding the Announcement Date that were not
effected through GSI or its affiliates and (ii) the number of Shares purchased pursuant to the
proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding
the Announcement Date excluding any purchase transactions effected by GSI or its affiliated
entities. Such written notice shall be deemed to be a certification by Counterparty to GSI that
such information is true and correct. Counterparty understands that GSI will use this information
in calculating the trading volume for purposes of Rule 10b-18; and

     (b) GSI in its good faith and commercially reasonable discretion may (i) make adjustments to
the terms of any Transaction, including, without limitation, the Valuation Date, the Counterparty
Additional Payment Amount and the Number of Shares to account for the number of Shares that could
be purchased on each day during the Valuation Period in compliance with Rule 10b-18 following the
Announcement Date or (ii) treat the occurrence of the Announcement Date as an Additional
Termination Event with Counterparty as the sole Affected Party.

     “Merger Transaction” means any merger, acquisition or similar transaction involving a
recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

     10. Special Calculation and Settlement Following Early Termination and Extraordinary
Events. Notwithstanding anything to the contrary in this Master Confirmation or any
Supplemental Confirmation hereunder, in the event that an Extraordinary Event under Article 12 of
the Equity Definitions occurs or an Early Termination Date occurs or is designated with respect to
any Transaction (each an “Affected Transaction”), then GSI may elect, in its sole discretion, by
notice to Counterparty, to have Counterparty deliver the Number of Early Settlement Shares to GSI
on the date that such notice is effective and either GSI shall pay to Counterparty the Special
Termination Amount, if positive, or Counterparty shall pay to GSI the absolute value of the Special
Termination Amount, if negative. To the extent that Counterparty elects to deliver Shares to GSI
accompanied by an effective Registration Statement (satisfactory to GSI in its sole discretion)
covering such Shares, Counterparty must be in compliance with the conditions specified in (iii)
though (viii) in Annex B hereto at the time of such delivery. If Counterparty elects to deliver
Unregistered Shares (as defined in Annex B) to GSI, Counterparty and GSI will negotiate in good
faith on acceptable procedures and documentation relating to the sale of such Unregistered Shares.
Counterparty and GSI agree that the payment of the Special Termination Amount and the delivery of
the Number of Early Settlement Shares satisfies in full any obligation of a party to make any
payments pursuant to Section 6(e) of the Agreement or Article 12 of the Equity Definitions, as the
case may be.

     “Number of Early Settlement Shares” means a number of Shares as determined by GSI in a good
faith and commercially reasonable manner based on its or any of its Affiliates’ Hedge Positions
with respect to each Affected Transaction under this Master Confirmation.

     “Special Termination Amount” means the sum of (a) the product of (i) the Number of Early
Settlement Shares multiplied by (ii) a per Share price (the “Early Termination Price”) determined
by GSI in a good faith and commercially reasonable manner based on relevant market indicia,
including costs incurred or estimated to be incurred by GSI in connection with the purchase and
sale of Shares in order to close out GSI’s or any of its Affiliates’ Hedge Positions with respect
to each Affected Transaction and, in the event that Counterparty delivers Unregistered Shares to
GSI, whether GSI and Counterparty have agreed on acceptable procedures and documentation relating
to such Unregistered Shares as described above and (b) any amount owing under Section 6(e) of the
Agreement or pursuant to Article 12 of the Equity Definitions, as the case may be, by GSI to
Counterparty (expressed as a positive number) or by Counterparty to GSI (expressed as a negative
number).

-12-

 

     11. Acknowledgments. The parties hereto intend for:

     (a) Each Transaction to be a “securities contract” as defined in Section 741(7) of the U.S.
Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), a “swap agreement” as
defined in Section 101(53B) of the Bankruptcy Code, or a “forward contract” as defined in Section
101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded
by, among other Sections, Sections 362(b)(6), 362(b)(17), 555, 556, and 560 of the Bankruptcy Code;

     (b) A party’s right to liquidate or terminate any Transaction, net out or offset termination
values of payment amounts, and to exercise any other remedies upon the occurrence of any Event of
Default under the Agreement with respect to the other party to constitute a “contractual right” (as
defined in the Bankruptcy Code);

     (c) Any cash, securities or other property transferred as performance assurance, credit
support or collateral with respect to each Transaction to constitute “margin payments” (as defined
in the Bankruptcy Code); and

     (d) All payments for, under or in connection with each Transaction, all payments for the
Shares and the transfer of such Shares to constitute “settlement payments” and “transfers” (as
defined in the Bankruptcy Code).

     12. Calculations on Early Termination and Set-Off.

     (a) Notwithstanding anything to the contrary in the Agreement or the Equity Definitions, the
calculation of any Settlement Amounts, Unpaid Amounts and amounts owed in respect of cancelled
Transactions under Article 12 of the Equity Definitions shall be calculated separately for (A) all
Terminated Transactions (it being understood that such term for the purposes of this paragraph
includes cancelled Transactions under Article 12 of the Equity Definitions) in the Shares of the
Issuer that qualify as equity under applicable accounting rules (collectively, the “Equity Shares”)
as determined by the Calculation Agent and (B) all other Terminated Transactions under the
Agreement including, without limitation, Transactions in Shares other than those of the Issuer
(collectively, the “Other Shares”) and the netting and set-off provisions of the Agreement shall
only operate to provide netting and set-off (i) among Terminated Transactions in the Equity Shares
and (ii) among Terminated Transactions in the Other Shares. In no event shall the netting and
set-off provisions of the Agreement operate to permit netting and set-off between Terminated
Transactions in the Equity Shares and Terminated Transactions in the Other Shares.

     (b) The parties agree to amend Section 6 of the Agreement by adding a new Section 6(f) thereto
as follows:

“(f) Upon the occurrence of an Event of Default or Termination
Event with respect to a party who is the Defaulting Party or the
Affected Party (“X”), the other party (“Y”) will have the right (but
not be obliged) without prior notice to X or any other person to
set-off or apply any obligation of X owed to Y (or any Affiliate of
Y) (whether or not matured or contingent and whether or not arising
under the Agreement, and regardless of the currency, place of
payment or booking office of the obligation) against any obligation
of Y (or any Affiliate of Y) owed to X (whether or not matured or
contingent and whether or not arising under the Agreement, and
regardless of the currency, place of payment or booking office of
the obligation). Y will give notice to the other party of any
set-off effected under this Section 6(f).

Amounts (or the relevant portion of such amounts) subject to set-off
may be converted by Y into the Termination Currency at the rate of
exchange at which such party would be able, acting in a reasonable
manner and in good faith, to purchase the relevant amount of such
currency. If any obligation is unascertained, Y may in good faith
estimate that obligation and set-off in respect

-13-

 

of the estimate, subject to the relevant party accounting to the
other when the obligation is ascertained. Nothing in this Section
6(f) shall be effective to create a charge or other security
interest. This Section 6(f) shall be without prejudice and in
addition to any right of set-off, combination of accounts, lien or
other right to which any party is at any time otherwise entitled
(whether by operation of law, contract or otherwise).”

     13. Payment Date Upon Early Termination. Notwithstanding anything to the contrary in
Section 6(d)(ii) of the Agreement, all amounts calculated as being due in respect of an Early
Termination Date under Section 6(e) of the Agreement will be payable on the day that notice of the
amount payable is effective.

     14. Governing Law. The Agreement, this Master Confirmation and each Supplemental
Confirmation and all matters arising in connection with the Agreement, this Master Confirmation and
each Supplemental Confirmation shall be governed by, and construed and enforced in accordance with
the law of the State of New York (without reference to its choice of law doctrine).

     15. Offices.

     (a) The Office of GSI for each Transaction is: Peterborough Court, 133 Fleet Street, London
EC4A 2BB.

     (b) The Office of Counterparty for each Transaction is: One Market @ The Landmark, San
Francisco, CA 94105.

     16. Arbitration.

     (a) All parties to this Master Confirmation are giving up the right to sue each other in
court, including the right to a trial by jury, except as provided by the rules of the arbitration
forum in which a claim is filed.

     (b) Arbitration awards are generally final and binding; a party’s ability to have a court
reverse or modify an arbitration award is very limited.

     (c) The ability of the parties to obtain documents, witness statements and other discovery is
generally more limited in arbitration than in court proceedings.

     (d) The arbitrators do not have to explain the reason(s) for their award.

     (e) The panel of arbitrators will typically include a minority of arbitrators who were or are
affiliated with the securities industry, unless Counterparty is a member of the organization
sponsoring the arbitration facility, in which case all arbitrators may be affiliated with the
securities industry.

     (f) The rules of some arbitration forums may impose time limits for bringing a claim in
arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.

     (g) The rules of the arbitration forum in which the claim is filed, and any amendments
thereto, shall be incorporated into this Master Confirmation.

     Counterparty agrees that any and all controversies that may arise between Counterparty and
GSI, including, but not limited to, those arising out of or relating to the Agreement or any
Transaction hereunder, shall be determined by arbitration conducted before The New York Stock
Exchange, Inc. (“NYSE”) or NASD Dispute Resolution (“NASD-DR”), or, if the NYSE and NASD-DR decline
to hear the matter, before the American Arbitration Association, in accordance with their
arbitration rules then in force. The award of the arbitrator shall be final, and judgment upon the
award rendered may be entered in any court, state or federal, having jurisdiction.

-14-

 

     No person shall bring a putative or certified class action to arbitration, nor seek to enforce
any pre-dispute arbitration agreement against any person who has initiated in court a putative
class action or who is a member of a putative class who has not opted out of the class with respect
to any claims encompassed by the putative class action until: (i) the class certification is
denied; (ii) the class is decertified; or (iii) Counterparty is excluded from the class by the
court.

     Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any
rights under this Master Confirmation or any supplemental Confirmation except to the extent stated
herein.

-15-

 

     17. Counterparty hereby agrees (a) to check this Master Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to
confirm that the foregoing (in the exact form provided by GSI) correctly sets forth the terms of
the agreement between GSI and Counterparty with respect to any Transaction, by manually signing
this Master Confirmation or this page hereof as evidence of agreement to such terms and providing
the other information requested herein and immediately returning an executed copy to Equity
Derivatives Documentation Department, facsimile No. 212-428-1980/83.

	 	 	 	 	 
	 	Yours sincerely,

GOLDMAN SACHS INTERNATIONAL

 	 
	 	By:  	/s/   Sharon Seibold
 	 
	 	 	Authorized Signatory 	 

Agreed and Accepted By:

DEL MONTE FOODS COMPANY

	 	 	 	 	 
	 	 	 
	By:  	/s/ Thomas E. Gibbons
 	 	 
	 	Name:  	Thomas E. Gibbons 	 	 
	 	Title:  	Senior Vice President and Treasurerexv10w2

 

EXHIBIT 10.2

ANNEX A

SUPPLEMENTAL CONFIRMATION

	 	 	 
	To:

	 	Del Monte Foods Company
	 

	 	One Market @ The Landmark
	 

	 	San Francisco, CA 94105
	 
	 	 
	From:

	 	Goldman Sachs International
	 
	 	 
	Subject:

	 	Collared Accelerated Share Repurchase Transaction –

Execution Pricing
	 
	 	 
	Ref. No:

	 	EN50V8000000000
	 
	 	 
	Date:

	 	June 29, 2005

 

          The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the
Transaction entered into between Goldman Sachs International. (“GSI”) and Del Monte Foods Company
(“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This
Supplemental Confirmation is a binding contract between GSI and Counterparty as of the relevant
Trade Date for the Transaction referenced below. GSI is acting as principal in this Transaction
and Goldman, Sachs & Co., its affiliate, is acting as agent for GSI and Counterparty in this
Transaction. GSI is not a member of the Securities Investor Protection Corporation. The final
terms of the Transaction shall be sent to Counterparty by GSI substantially in the form of a Trade
Notification attached hereto as Schedule A.

          The definitions and provisions contained in the Master Confirmation specified below are
incorporated into this Supplemental Confirmation. In the event of any inconsistency between those
definitions and provisions and this Supplemental Confirmation, this Supplemental Confirmation will
govern.

1.     This Supplemental Confirmation supplements, forms part of, and is subject to the Master
Confirmation dated as of June 29, 2005 (the “Master Confirmation”) between the Contracting Parties,
as amended and supplemented from time to time. All provisions contained in the Master Confirmation
govern this Supplemental Confirmation except as expressly modified below.

2.     The terms of the Transaction to which this Supplemental Confirmation relates are as follows:

	 	 	 
	Trade Date:

	 	As specified in the Trade
Notification. In a related
transaction Counterparty agreed to
purchase a number of Shares equal to
the Number of Shares from GSI on the
Trade Date at the Forward Price per
Share.
	 
	 	 
	Capped Settlement Amount:

	 	The product of (a) 11% of the Hedge
Period Market Price multiplied by (b)
the Number of Shares multiplied by (c)
the Applicable Percentage.
	 
	 	 
	Floor Settlement Amount:

	 	The product of (a) 1% of
the Hedge Period Market Price
multiplied by (b) the Number of Shares
multiplied by (c) the Applicable
Percentage.
	 
	 	 
	Hedge Completion Date:

	 	The Scheduled Trading Day on which GSI
finishes establishing its Hedge
Positions, as determined by GSI in its
sole discretion.
	 
	 	 
	Forward Price:

	 	USD $10.42 per Share

A-1

 

	 	 	 	
	Hedge Period Market Price:

	 	The New York 10b-18 Volume Weighted
Average Price per share of the Shares
over the Hedge Period (without regard
to pre-open or after hours trading
outside of regular trading sessions),
as published by Bloomberg.
	 
	 	 	
	Hedge Forward Differential:

	 	The product of (a) the difference
between the Hedge Period Market Price
minus the Forward Price multiplied by
the product of (b) the Number of
Shares multiplied by (c) the
Applicable Percentage.
	 
	 	 	
	Hedge Forward Cash Settlement Amount:

	 	The product of (a) the difference
between the Settlement Price minus the
Hedge Period Market Price multiplied
by (b) the Number of Shares.
	 
	 	 	
	Hedge Period:

	 	The number of Scheduled Trading Days
from and including the Time of the
Order to and including the Scheduled
Trading Day upon which GSI fully
establishes its Hedge Positions.
	 
	 	 	
	Initial Payment Amount:

	 	An amount in USD equal to the product
of (a) 0% of the Hedge Period Market
Price multiplied by (b) the Number of
Shares multiplied by (c) the
Applicable Percentage, payable by
Counterparty to GSI by 10:00 a.m. New
York time on the Scheduled Trading Day
immediately following the Hedge
Completion Date.
	 
	 	 	
	Valuation Date:

	 	As specified in the Trade Notification.
	 
	 	 	
	Number of Shares:

	 	11,996,161 Shares	
	 
	 	 	
	Applicable Percentage:

	 	(50% x [Number of Shares x Forward Price])	
	 

	 	 	
	 

	 	              Hedge Period Market Price	
	 

	 	 	
	 

	 	                      Number of Shares	
	 
	 	 	
	Reserved Shares:

	 	25,000,000 Shares	
	 
	 	 	
	Termination Price:

	 	$7.00 per Share	
	 
	 	 	
	Counterparty Additional Payment Amount:

	 	As specified in the Trade Notification	

          3.     Counterparty represents and warrants to GSI that it has disclosed to GSI any and all
purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act made during
the four full calendar weeks immediately preceding the Trade Date by Counterparty or any
“affiliated purchaser” as defined in Rule 10b-18 under the Exchange Act.

A-2

 

          Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and
immediately upon receipt so that errors or discrepancies can be promptly identified and rectified
and (b) to confirm that the foregoing (in the exact form provided by GSI) correctly sets forth the
terms of the agreement between GSI and Counterparty with respect to this Transaction, by manually
signing this Supplemental Confirmation or this page hereof as evidence of agreement to such terms
and providing the other information requested herein and immediately returning an executed copy to
Equity Derivatives Documentation Department, facsimile No. 212-428-1980/83.

	 	 	 	 	 
	 	Yours sincerely,

GOLDMAN SACHS INTERNATIONAL

 	 
	 	By:  	/s/   Sharon Seibold
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 	 
	Agreed and Accepted	 
	By:  DEL MONTE FOODS COMPANY 	 
	 	 	 
	By:  	 	/s/ Thomas E. Gibbons 	 
	 	 	Name:	 	Thomas E. Gibbons 	 
	 	 	Title:	 	Senior Vice President and Treasurer 	 

A-1

 

	 	 	 	 	 

SCHEDULE A

TRADE NOTIFICATION

	 	 	 
	To:

	 	Del Monte Foods Company

One Market @ The Landmark

San Francisco, CA 94105
	 
	 	 
	From:

	 	Goldman Sachs International
	 
	 	 
	Subject:

	 	Collared Accelerated Share Repurchase Transaction-Execution

Pricing
	 
	 	 
	Ref. No:

	 	[Insert Reference No.]
	 
	 	 
	Date:

	 	[Insert Date]

 

     The purpose of this Trade Notification is to notify you of certain terms in the Transaction
entered into between Goldman Sachs International (“GSI”) and Del Monte Foods Company
(“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. GSI is
acting as principal in this Transaction and Goldman, Sachs & Co., its affiliate, is acting as agent
for GSI and Counterparty in this Transaction. GSI is not a member of the Securities Investor
Protection Corporation.

     The definitions and provisions contained in the Supplemental Confirmation specified below are
incorporated into this Trade Notification. In the event of any inconsistency between those
definitions and provisions and this Trade Notification, this Trade Notification will govern.

     This Trade Notification supplements, forms part of, and is subject to the Supplemental
Confirmation dated as of June 29, 2005 (the “Supplemental Confirmation”) between the Contracting
Parties, as amended and supplemented from time to time. All provisions contained in the
Supplemental Confirmation govern this Trade Notification.

     The Supplemental Confirmation specified a method or formula for determining the amounts, dates
or numbers below. The actual amounts, dates or numbers are as follows:

	 	 	 
	Trade Date:

	 	[          ]
	 
	 	 
	Hedge Completion Date:

	 	[          ]
	 
	 	 
	Capped Settlement Amount:

	 	USD $[          ]
	 
	 	 
	Floor Settlement Amount:

	 	USD $[          ]
	 
	 	 
	Hedge Forward Differential:

	 	USD $[          ]
	 
	 	 
	Hedge Forward Cash Settlement Amount:

	 	USD $[          ]
	 
	 	 
	Initial Payment Amount:

	 	USD $[          ]
	 
	 	 
	Counterparty Additional Payment Amount:

	 	USD $[          ]
	 
	 	 
	Valuation Date:

	 	[              ]
	 
	 	 
	Applicable Percentage:

	 	[     ]%

A-2

 

	 	 	 	 	 
	 	Yours sincerely,

GOLDMAN SACHS INTERNATIONAL

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

A-3

 

	 	 	 	 	 

ANNEX B

NET SHARE SETTLEMENT PROCEDURES

          The following Net Share Settlement Procedures shall apply to the extent that Counterparty
elects Net Share Settlement in accordance with the Master Confirmation:

          Net Share Settlement shall be made by delivery of the number of Shares equal in value to the
Forward Cash Settlement Amount plus any Net Cash Amount, if applicable (the “Settlement Shares”),
with such Shares’ value based on the Net Share Settlement Price. Delivery of such Settlement
Shares shall be made free of any contractual or other restrictions in good transferable form on the
Net Share Settlement Date with Counterparty (i) representing and warranting to GSI at the time of
such delivery that it has good, valid and marketable title or right to sell and transfer all such
Shares to GSI under the terms of the related Transaction free of any lien charge, claim or other
encumbrance and (ii) making the representations and agreements contained in Section 9.11(ii)
through (iv) of the Equity Definitions to GSI with respect to the Settlement Shares. GSI or any
affiliate of GSI designated by GSI (GSI or such affiliate, “GS”) shall resell the Settlement Shares
during a period (the “Resale Period”) commencing no earlier than the Net Share Valuation Date. The
Resale Period shall end on the Exchange Business Day on which GS completes the sale of all
Settlement Shares or a sufficient number of Settlement Shares so that the realized net proceeds of
such sales exceed the Forward Cash Settlement Amount plus the Net Cash Amount, if applicable.
Notwithstanding the foregoing, if resale by GS of the Settlement Shares, as determined by GS in its
sole discretion (i) occurs during a distribution for purposes of Regulation M, and if GS would be
subject to the restrictions of Rule 101 of Regulation M in connection with such distribution, the
Resale Period will be postponed or tolled, as the case may be, until the Exchange Business Day
immediately following the end of any “restricted period” as such term is defined in Regulation M
with respect to such distribution under Regulation M or (ii) conflicts with any legal, regulatory
or self-regulatory requirements or related policies and procedures applicable to GS (whether or not
such requirements, policies or procedures are imposed by law or have been voluntarily adopted by
GS), the Resale Period will be postponed or tolled, as the case may be, until such conflict is no
longer applicable. During the Resale Period, if the realized net proceeds from the resale of the
Settlement Shares exceed the Forward Cash Settlement Amount plus the Net Cash Amount, if
applicable, GS shall refund such excess in cash to Counterparty by the close of business on the
third Exchange Business Day immediately following the last day of the Resale Period. If the
Forward Cash Settlement Amount plus the Net Cash Amount, if applicable, exceeds the realized net
proceeds from such resale, Counterparty shall transfer to GS by the open of the regular trading
session on the Exchange on the third Scheduled Trading Day immediately following the last day of
the Resale Period the amount of such excess (the “Additional Amount”) in cash or in the number of
Shares (“Make-whole Shares”) in an amount that, based on the Net Share Settlement Price on the last
day of the Resale Period (as if such day was the “Net Share Valuation Date” for purposes of
computing such Net Share Settlement Price), has a dollar value equal to the Additional Amount. The
Resale Period shall continue to enable the sale of the Make-whole Shares. If Counterparty elects
to pay the Additional Amount in Shares, the requirements and provisions set forth below shall
apply. This provision shall be applied successively until the Additional Amount is equal to zero.

Net Share Settlement of a Transaction is subject to the following conditions:

Counterparty at its sole expense shall:

    (i)     as promptly as practicable (but in no event more than five (5) Exchange Business
Days immediately following the Settlement Method Election Date or, in the case of an
election of Net Share Settlement upon the occurrence of an Extraordinary Event or an Early
Termination Date, no more than one Exchange Business Day immediately following either the
Cancellation Date or the Early Termination Date, as the case may be) file under the
Securities Act and use its best efforts to make effective, as promptly as practicable, a
registration statement or supplement or amend an outstanding registration statement, in any
such case, in form and substance reasonably satisfactory to GS (the “Registration
Statement”) covering the offering and sale by GS of not less than 150% of the Shares
necessary to fulfill the Net Share Settlement delivery obligation by Counterparty
(determining the number of such Shares to be registered on the basis of the average of the
Settlement Prices on the five (5) Exchange Business Days prior to the date of such filing,
amendment or supplement, as the case may be);

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    (ii)     maintain the effectiveness of the Registration Statement until GS has sold all shares to be delivered by Counterparty in satisfaction of its Net Share Settlement
obligations;

    (iii) have afforded GS and its counsel and other advisers a reasonable opportunity to
conduct a due diligence investigation of Counterparty customary in scope for transactions in
which GS acts as underwriter of equity securities, and GS shall have been satisfied (with
the approval of its Commitments Committee in accordance with its customary review process)
with the results of such investigation;

    (iv) have negotiated and entered into an agreement with GS providing for such
covenants, conditions, representations and warranties, underwriting discounts, commissions,
indemnities and contribution rights as are customary for GS equity underwriting agreements,
together with customary certificates and opinions of counsel and letters of independent
auditors of Counterparty to be delivered to GS covering the shares to be delivered by
Counterparty in satisfaction of its Net Share Settlement obligations;

    (v) have delivered to GS such number of prospectuses relating thereto as GS shall have
reasonably requested and shall promptly update and provide GS with replacement prospectuses
as necessary to ensure the prospectus does not contain any untrue statement of a material
fact or any omission of a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances in which they were made, not
misleading;

    (vi) reimburse GS for the reasonable fees and actual documented out-of-pocket
disbursements of an underwriting counsel selected by GS (in its sole discretion);

    (vii) have taken all steps necessary for the shares sold by GS to be listed or quoted
on the primary exchange or quotation system that the Shares are listed or quoted on; and

    (viii) have paid all reasonable and actual documented out-of-pocket costs and expenses
of GS and all reasonable and actual fees and expenses of GS’s outside counsel and other
independent experts in connection with the foregoing.

          In the event that the Registration Statement is not declared effective by the Securities
Exchange Commission (the “SEC”) or any of the conditions specified in (ii) through (viii) above are
not satisfied on or prior to the Valuation Date (or, in the case of an election of Net Share
Settlement upon the occurrence of an Extraordinary Event or an Early Termination Date, on or prior
to the first Exchange Business Day following either the Cancellation Date or the Early Termination
Date, as the case may be), then Counterparty may deliver Unregistered Shares (as defined below) to
GS in accordance with the following conditions. If GS and Counterparty can agree on acceptable
pricing, procedures and documentation relating to the sale of such Unregistered Shares (including,
without limitation, applicable requirements in (iii) through (viii) above and insofar as pertaining
to private offerings), then such Unregistered Shares shall be deemed to be the “Settlement Shares”
for the purposes of the related Transaction and the settlement procedure specified in this Annex B
shall be followed except that in the event that the Forward Cash Settlement Amount, plus the Net
Cash Amount, if applicable, exceeds the proceeds from the sale of such Unregistered Shares then for
the purpose of calculating the number of “Make-whole Shares” to be delivered by Counterparty, GS
shall determine the discount to the Net Share Settlement Price at which it can sell the
Unregistered Shares. Notwithstanding the delivery of the Unregistered Shares, Counterparty shall
endeavor in good faith to have a registration statement declared effective by the SEC as soon as
practical. In the event that GS has not sold sufficient Unregistered Shares to satisfy
Counterparty’s obligations to GS contained herein at the time that a Registration Statement
covering the offering and sale by GS of a number of Shares equal in value to not less than 150% of
the amount then owed to GS is declared effective (based on the Net Share Settlement Price on the
Exchange Business Day (as if such Exchange Business Day were the “Net Share Valuation Date” for
purposes of computing such Net Share Settlement Price) that the Registration Statement was declared
effective), GS shall return all unsold Unregistered Shares to Counterparty and Counterparty shall
deliver such number of Shares covered by the effective Registration Statement equal to 100% of the
amount then owed to GS based on such Net Share Settlement Price. Such delivered shares shall be
deemed to be the “Settlement Shares” for the purposes of the related Transaction and the settlement
procedure specified in this Master Confirmation (including the obligation to deliver any Make-whole
Shares, if applicable) shall be followed. In all cases GS shall be entitled to take any and all

B-2

 

required actions in the course of its sales of the Settlement Shares, including without
limitation making sales of the Unregistered Shares only to “Qualified Institutional Buyers” (as
such term is defined under the Securities Act), to ensure that the sales of the Unregistered Shares
and the Settlement Shares covered by the Registration Statement are not integrated resulting in a
violation of the securities laws and Counterparty agrees to take all actions requested by GS in
furtherance thereof.

          If GS and Counterparty cannot agree on acceptable pricing, procedures and documentation
relating to the sales of such Unregistered Shares then the number of Unregistered Shares to be
delivered to GS pursuant to the provisions above shall not be based on the Net Share Settlement
Price but rather GS shall determine the value attributed to each Unregistered Share in a
commercially reasonable manner and based on such value Counterparty shall deliver a number of
Shares equal in value to the Forward Cash Settlement Amount. For the purposes hereof “Unregistered
Shares” means Shares that have not been registered pursuant to an effective registration statement
under the Securities Act or any state securities laws (“Blue Sky Laws”) and that cannot be sold,
transferred, pledged or otherwise disposed of without registration under the Securities Act or
under applicable Blue Sky Laws unless such sale, transfer, pledge or other disposition is made in a
transaction exempt from registration thereunder.

          In the event that Counterparty delivers Shares pursuant to an election of Net Share Settlement
then Counterparty agrees to indemnify and hold harmless GS, its affiliates and its assignees and
their respective directors, officers, employees, agents and controlling persons (GS and each such
person being an “Indemnified Party”) from and against any and all losses, claims, damages and
liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may
become subject, under the Securities Act or otherwise, (i) relating to or arising out of any of the
Transactions contemplated by this Master Confirmation concerning the Shares or (ii) arising out of
or based upon any untrue statement or alleged untrue statement of a material fact contained in any
preliminary prospectus, prospectus, Registration Statement or other written material relating to
the Shares delivered to prospective purchasers, including in each case any amendments or
supplements thereto and including but not limited to any documents deemed to be incorporated in any
such document by reference (the “Offering Materials”), or arising out of or based upon any omission
or alleged omission to state in the Offering Materials a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that, in the case of this clause (ii), Counterparty will not be
liable to the extent that any loss, claim, damage or liability arises out of or is based upon any
untrue statement or omission or alleged untrue statement or omission in the Offering Materials made
in reliance upon and in conformity with written information furnished to Counterparty by GS
expressly for use in the Offering Materials, as expressly identified in a letter to be delivered at
the closing of the delivery of Shares by Counterparty to GS. The foregoing indemnity shall exclude
losses that GS incurs solely by reason of the proceeds from the sale of the Capped Number of Shares
being less than the Forward Cash Settlement Amount. Counterparty will not be liable under the
foregoing indemnification provision to the extent that any loss, claim, damage, liability or
expense is found in a nonappealable judgment by a court of competent jurisdiction to have resulted
from GS’s willful misconduct, gross negligence or bad faith in performing the services that are
subject of this Master Confirmation. If for any reason the foregoing indemnification is
unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then
Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or
payable by the Indemnified Party as a result of such loss, claim, damage or liability. In
addition, Counterparty will reimburse any Indemnified Party for all expenses (including reasonable
counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with
the investigation of, preparation for or defense or settlement of any pending or threatened claim
or any action, suit or proceeding arising therefrom, and whether or not such claim, action, suit or
proceeding is initiated or brought by or on behalf of Counterparty. Counterparty also agrees that
no Indemnified Party shall have any liability to Counterparty or any person asserting claims on
behalf of or in right of Counterparty in connection with or as a result of any matter referred to
in the Agreement or this Master Confirmation except to the extent that any losses, claims, damages,
liabilities or expenses incurred by Counterparty result from the gross negligence, willful
misconduct or bad faith of the Indemnified Party. This indemnity shall survive the completion of
any Transaction contemplated by this Master Confirmation and any assignment and delegation of a
Transaction made pursuant to this Master Confirmation or the Agreement shall inure to the benefit
of any permitted assignee of GSI.

          In no event shall the number of Settlement Shares (including, without duplication, any
Unregistered Shares) and any Make-whole Shares, be greater than the Reserved Shares minus the
amount of any Shares actually delivered under any other Transaction(s) under this Master
Confirmation (the result of such

B-3

 

calculation, the “Capped Number”). Counterparty represents and warrants (which shall be
deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is
equal to or less than the number of Shares determined according to the following formula:

A – B

	 	 	 
	Where

	 	A = the number of authorized but unissued shares of the Issuer
that are not reserved for future issuance on the date of the determination of
the Capped Number; and
	 
	 	 
	 

	 	B = the maximum number of Shares required to be delivered to third parties
if Counterparty elected Net Share Settlement of all transactions in the
Shares (other than Transactions in the Shares under this Master
Confirmation) with all third parties that are then currently outstanding and
unexercised.

B-4

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