Document:

exv10w10

Exhibit 10.10

GOLDMAN, SACHS & CO. | 85 BROAD STREET | NEW YORK, NEW YORK 10004 | TEL: 212-902-1000 

Opening Transaction

	 	 	 	 	 	 	 

	 

	 	To:
	 	Constellation Brands, Inc.

	 

	 	 	 	207 High Point Drive

	 

	 	 	 	Building 100

	 

	 	 	 	Victor, New York 14564

	 
	 	 	 	 	 	 
	 

	 	A/C:
	 	042168229	 	 
	 
	 	 	 	 	 	 
	 

	 	From:
	 	Goldman, Sachs & Co.

	 
	 	 	 	 	 	 
	 

	 	Re:
	 	Collared Accelerated Stock Buyback

	 
	 	 	 	 	 	 
	 

	 	Ref. No:
	 	As provided in the Supplemental Confirmation

	 
	 	 	 	 	 	 
	 

	 	Date:
	 	April 16, 2010

 

          This master confirmation (this “Master Confirmation”), dated as of April 16, 2010 is intended
to set forth certain terms and provisions of certain Transactions (each, a “Transaction”) entered
into from time to time between Goldman, Sachs & Co. (“GS&Co.”) and Constellation Brands, Inc.
(“Counterparty”). This Master Confirmation, taken alone, is neither a commitment by either party to
enter into any Transaction nor evidence of a Transaction. The additional terms of any particular
Transaction shall be set forth in (i) a Supplemental Confirmation in the form of Schedule A hereto
(a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement,
form a part of, and be subject to this Master Confirmation and (ii) a Trade Notification in the
form of Schedule B hereto (a “Trade Notification”), which shall reference the relevant Supplemental
Confirmation and supplement, form a part of, and be subject to such Supplemental Confirmation. This
Master Confirmation, each Supplemental Confirmation and the related Trade Notification together
shall constitute a “Confirmation” as referred to in the Agreement specified below.

          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, each Supplemental
Confirmation and the related Trade Notification evidence a complete binding agreement between
Counterparty and GS&Co. as to the subject matter and terms of each Transaction to which this Master
Confirmation, such Supplemental Confirmation and Trade Notification relate and shall supersede all
prior or contemporaneous written or oral communications with respect thereto.

          This Master Confirmation, each Supplemental Confirmation and each Trade Notification
supplement, form a part of, and are subject to an agreement in the form of the 1992 ISDA Master
Agreement (Multicurrency-Cross Border) (the “Agreement”) as if GS&Co. and Counterparty had executed
the Agreement on the date of this Master Confirmation (but without any Schedule except for (i) the
election of Loss and Second Method, New York law (without reference to its choice of laws doctrine
other than Title 14 of Article 5 of the New York General Obligations Law) 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 the Transactions, (iii) the replacement of the word “third” in the last line
of Section 5(a)(i) with the word “first”, (iv) the election that the “Cross Default” provisions of
Section 5(a)(vi) shall apply to Counterparty and GS&Co. with “Specified Indebtedness” as defined in
Section 14 of the Agreement and a “Threshold Amount” of USD 50 million (or its equivalent in
another currency), provided that the phrase “or becoming capable at such time of being declared”
shall be deleted from clause (1) of such Section 5(a)(vi), and (v) the election that no entity
shall be specified as a “Specified Entity” with regard to Counterparty with respect to Section 5).

 

 

          The Transactions shall be the sole Transactions under the Agreement. If there exists any ISDA
Master Agreement between GS&Co. and Counterparty or any confirmation or other agreement between
GS&Co. and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between
GS&Co. and Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which GS&Co. and Counterparty
are parties, the Transactions shall not be considered Transactions under, or otherwise governed by,
such existing or deemed ISDA Master Agreement.

          All provisions contained or incorporated by reference in the Agreement shall govern this
Master Confirmation, each Supplemental Confirmation and each Trade Notification except as expressly
modified herein or in the related Supplemental Confirmation.

          If, in relation to any Transaction to which this Master Confirmation, a Supplemental
Confirmation and a Trade Notification relate, there is any inconsistency between the Agreement,
this Master Confirmation, any Supplemental Confirmation, any Trade Notification and the Equity
Definitions, the following will prevail for purposes of such Transaction in the order of precedence
indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation; (iii) such Trade
Notification; (iv) the Agreement; and (v) 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 that, together with the terms and
conditions set forth in the Supplemental Confirmation and Trade Notification relating to any
Transaction, shall govern such Transaction.

General Terms:

	 	 	 	 	 

	 

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

	 	Buyer:
	 	Counterparty
	 
	 	 	 	 
	 

	 	Seller:
	 	GS&Co.
	 
	 	 	 	 
	 

	 	Shares:
	 	Class A Common stock, par value $.01 per share, of Counterparty (Ticker: STZ)
	 
	 	 	 	 
	 

	 	Exchange:
	 	New York Stock Exchange
	 
	 	 	 	 
	 

	 	Related Exchange(s):
	 	All Exchanges
	 
	 	 	 	 
	 

	 	Prepayment:
	 	Applicable
	 
	 	 	 	 
	 

	 	Prepayment Amount:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Prepayment Date:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	Valuation:	 	 
	 
	 	 	 	 
	 

	 	Hedge Period:
	 	The period from and including the Hedge Period Start Date to and including the 

Hedge Completion Date.
	 
	 	 	 	 
	 

	 	Hedge Period Start Date:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Hedge Completion Date:
	 	For each Transaction, as set forth in the related Trade Notification, to be the
Exchange Business Day on which GS&Co. finishes establishing its initial hedge
positions in respect of such Transaction, as determined by GS&Co. in its sole
discretion, but in no event later than the Hedge Period End Date.
	 
	 	 	 	 
	 

	 	Hedge Period End Date:
	 	For each Transaction, as set forth in the related Supplemental Confirmation,
subject to postponement as provided in “Valuation Disruption” below.

2

 

	 	 	 	 	 

	 

	 	Hedge Period Reference

Price:
	 	
For each Transaction, as set forth in the related Trade Notification, to be the
arithmetic mean of the VWAP Prices for the Exchange Business Days in the
Hedge Period, subject to “Valuation Disruption” below.
	 
	 	 	 	 
	 

	 	VWAP Price:
	 	For any Exchange Business Day that is not a Disrupted Day, the New York 10b-
18 Volume Weighted Average Price per Share for the regular trading session
(including any extensions thereof) of the Exchange on such Exchange Business
Day (without regard to pre-open or after hours trading outside of such regular
trading session for such Exchange Business Day), as published by Bloomberg at
4:15 p.m. New York time (or 15 minutes following the end of any extension of
the regular trading session) on such Exchange Business Day, on Bloomberg
page “STZ.N <Equity> AQR_SEC” (or any successor thereto), or if such price
is not so reported on such Exchange Business Day for any reason or is
manifestly erroneous, such VWAP Price shall be as reasonably determined by
the Calculation Agent. For any Exchange Business Day that is a Disrupted Day
in part, the VWAP Price shall be determined as provided in “Valuation
Disruption” below. For purposes of calculating the VWAP Price, the
Calculation Agent will include only those trades that are reported during the
period of time during which Counterparty could purchase its own shares under
Rule 10b-18(b)(2) and are effected pursuant to the conditions of Rule 10b-
18(b)(3), each under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (such trades, “Rule 10b-18 eligible transactions”).
	 
	 	 	 	 
	 

	 	Forward Price:
	 	The arithmetic mean of the VWAP Prices for the Exchange Business Days in
the Calculation Period, subject to “Valuation Disruption” below.
	 
	 	 	 	 
	 

	 	Forward Price

Adjustment Amount:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Calculation Period:
	 	The period from and including the Calculation Period Start Date to and
including the Termination Date.
	 
	 	 	 	 
	 

	 	Calculation Period Start Date:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Termination Date:
	 	The Scheduled Termination Date;
provided that GS&Co. shall have the right to
designate any Exchange Business Day on or after the First Acceleration Date to
be the Termination Date (the “Accelerated Termination Date”) by delivering
notice to Counterparty of any such designation prior to 11:59 p.m. New York
City time on the designated Accelerated Termination Date.
	 
	 	 	 	 
	 

	 	Scheduled Termination Date:
	 	For each Transaction, as set forth in the related Supplemental Confirmation,
subject to postponement as provided in “Valuation Disruption” below.
	 
	 	 	 	 
	 

	 	First Acceleration Date:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	 

	 	Valuation Disruption:
	 	The definition of “Market Disruption Event” in Section 6.3(a) of the Equity
Definitions is hereby amended by deleting the words “at any time during the
one-hour period that ends at the relevant Valuation Time, Latest Exercise Time,
Knock-in Valuation Time or Knock-out Valuation Time, as the case may be”
and inserting the words “at any time on any Scheduled Trading Day during the
Hedge Period, Calculation Period or Settlement Valuation Period” after the
word “material,” in the third line thereof.
	 
	 	 	 	 
	 

	 	 	 	Section 6.3(d) of the Equity Definitions is hereby amended by deleting the
remainder of the provision following the term “Scheduled Closing Time” in the
fourth line thereof.

3

 

	 	 	 	 	 

	 

	 	 	 	Notwithstanding anything to the contrary in the Equity Definitions, to the extent
that a Disrupted Day occurs (i) in the Calculation Period, the Calculation Agent
may, in its good faith and commercially reasonable discretion, postpone the
Scheduled Termination Date by one Exchange Business Day and/or, if the
Disrupted Day occurs during the Hedge Period, postpone the Hedge Period End
Date by one Exchange Business Day, or (ii) in the Settlement Valuation Period,
the Calculation Agent may, in its good faith and commercially reasonable
discretion, extend the Settlement Valuation Period by one Exchange Business
Day. If any such Disrupted Day is a Disrupted Day because of a Market
Disruption Event (or a deemed Market Disruption Event as provided herein), the
Calculation Agent shall determine whether (i) such Disrupted Day is a Disrupted
Day in full, in which case the VWAP Price for such Disrupted Day shall not be
included for purposes of determining the Hedge Period Reference Price, the
Forward Price or the Settlement Price, as the case may be, or (ii) such Disrupted
Day is a Disrupted Day only in part, in which case the VWAP Price for such
Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-
18 eligible transactions in the Shares on such Disrupted Day effected before the
relevant Market Disruption Event occurred and/or after the relevant Market
Disruption Event ended, and the weighting of the VWAP Price for the relevant
Exchange Business Days during the Hedge Period, the Calculation Period or the
Settlement Valuation Period, as the case may be, shall be adjusted in a
commercially reasonable manner by the Calculation Agent for purposes of
determining the Hedge Period Reference Price, the Forward Price or the
Settlement Price, as the case may be, with such adjustments based on, among
other factors, the duration of any Market Disruption Event and the volume,
historical trading patterns and price of the Shares. Any Scheduled Trading Day
on which, as of the date hereof, the Exchange is scheduled to close prior to its
normal close of trading shall be deemed not to be an Exchange Business Day;
provided that, if a closure of the Exchange prior to its normal close of trading on
any Scheduled Trading Day is scheduled following the date hereof, then such
Scheduled Trading Day shall be deemed to be a Disrupted Day in full.
	 
	 	 	 	 
	 

	 	 	 	If a Disrupted Day occurs during the Hedge Period, the Calculation Period or the
Settlement Valuation Period, as the case may be, and each of the nine
immediately following Scheduled Trading Days is a Disrupted Day as a result of
the same Market Disruption Event, then the Calculation Agent, in its good faith
and commercially reasonable discretion, may deem such ninth Scheduled
Trading Day (and each following Scheduled Trading Day that would be a
Disrupted Day as a result of the same Market Disruption Event) to be an
Exchange Business Day that is not a Disrupted Day and determine the VWAP
Price for such ninth Scheduled Trading Day (and each such following Scheduled
Trading Day) using its good faith estimate of the value of the Shares on such
ninth Scheduled Trading Day (or such following Scheduled Trading Day) based
on the volume, historical trading patterns and price of the Shares and such other
factors as it deems appropriate.
	 
	 	 	 	 
	Settlement Terms:	 	 
	 
	 	 	 	 
	 

	 	Physical Settlement:
	 	Applicable; provided that GS&Co. does not, and shall not, make the agreement
or the representations set forth in Section 9.11 of the Equity Definitions to the
extent that such representations relate to the restrictions imposed by applicable
securities laws with respect to any Shares delivered by GS&Co. to Counterparty
under any Transaction arising as a result of the fact that Counterparty is the
Issuer of the Shares.

4

 

	 	 	 	 	 

	 

	 	Number of Shares 

to be Delivered:
	 	
A number of Shares equal to
(a) the Prepayment Amount divided by (b)(i) the
Forward Price minus (ii) the Forward Price Adjustment
Amount; provided that
the Number of Shares to be Delivered shall not be less than the Minimum Shares
and not greater than the Maximum Shares. The Number of Shares to be
Delivered on the Settlement Date shall be reduced, but not below zero, by any
Shares delivered pursuant to the Initial Share Delivery and the Minimum Share
Delivery described below.
	 
	 	 	 	 
	 

	 	Excess Dividend Amount:
	 	For the avoidance of doubt, all references to the Excess Dividend Amount shall
be deleted from Section 9.2(a)(iii) of the Equity Definitions.
	 
	 	 	 	 
	 

	 	Settlement Date:
	 	The date that is one Settlement Cycle immediately following the Termination
Date.
	 
	 	 	 	 
	 

	 	Settlement Currency:
	 	USD
	 
	 	 	 	 
	 

	 	Initial Share Delivery:
	 	GS&Co. shall deliver a number of Shares equal to the Initial Shares to
Counterparty on the Initial Share Delivery Date in accordance with Section 9.4
of the Equity Definitions, with the Initial Share Delivery Date deemed to be a
“Settlement Date” for purposes of such Section 9.4.
	 
	 	 	 	 
	 

	 	Initial Share Delivery Date:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	 

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

	 	Minimum Share Delivery:
	 	GS&Co. shall deliver a number of Shares equal to the excess, if any, of the
Minimum Shares over the Initial Shares on the Minimum Share Delivery Date in
accordance with Section 9.4 of the Equity Definitions, with the Minimum Share
Delivery Date deemed to be a “Settlement Date” for purposes of such
Section 9.4.
	 
	 	 	 	 
	 

	 	Minimum Share Delivery

Date:
	 	The date one Settlement Cycle immediately following the Hedge Completion
Date.
	 
	 	 	 	 
	 

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

	 	Maximum Shares:
	 	For each Transaction, as set forth in the related Supplemental Confirmation.
	 
	 	 	 	 
	Share Adjustments:	 	 
	 
	 	 	 	 
	 

	 	Potential Adjustment Event:
	 	Notwithstanding anything to the contrary in Section 11.2(e) of the Equity
Definitions, an Extraordinary Dividend shall not constitute a Potential
Adjustment Event.
	 
	 	 	 	 
	 

	 	 	 	It shall constitute an additional Potential Adjustment Event if the Scheduled
Termination Date for any Transaction is postponed pursuant to “Valuation
Disruption” above, in which case the Calculation Agent shall, in its
commercially reasonable discretion and subject to Section 17 below, adjust any
relevant terms of any such Transaction as necessary to account for the economic
effect of such postponement on such Transaction.
	 
	 	 	 	 
	 

	 	Extraordinary Dividend:
	 	Any dividend or distribution on the Shares (other than any dividend or
distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A)
of the Equity Definitions).

5

 

	 	 	 	 	 

	 

	 	Method of Adjustment:
	 	Calculation Agent Adjustment
	 
	 	 	 	 
	Extraordinary Events:	 	 
	 
	 	 	 	 
	 

	 	Consequences of 

Merger Events:	 	 

	 	 	 	 	 

	 

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

	 	(b)    Share-for-Other:
	 	Cancellation and Payment
	 
	 	 	 	 
	 

	 	(c)    Share-for-Combined:
	 	Component Adjustment

	 	 	 	 	 

	 

	 	Tender Offer:
	 	Applicable; provided that (i) Section 12.1(d) of the Equity Definitions shall be
amended by replacing (a) the reference to 10% with a reference to 30% and
(b) the reference to “voting shares of the Issuer” with a reference to “Shares”,
(ii) Section 12.1(l) of the Equity Definitions shall be amended (x) by deleting
the parenthetical in the fifth line thereof, (y) by replacing “that” in the fifth line
thereof with “whether or not such announcement” and (z) by adding
immediately after the words “Tender Offer” in the fifth line thereof “, and any
publicly announced change or amendment to such an announcement (including
the announcement of an abandonment of such intention)” and
(iii) Sections 12.3(a) and 12.3(d) of the Equity Definitions shall each be
amended by replacing each occurrence of the words “Tender Offer Date” by
“Announcement Date.”
	 
	 	 	 	 
	 

	 	Consequences of 

Tender Offers:	 	 

	 	 	 	 	 

	 

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

	 	(b)    Share-for-Other:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	(c)    Share-for-Combined:
	 	Modified Calculation Agent Adjustment

	 	 	 	 	 

	 

	 	Nationalization,

Insolvency or Delisting:
	 	Cancellation and Payment; provided that in addition to the provisions of Section
12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the
Exchange is located in the United States and the Shares are not immediately re-
listed, re-traded or re-quoted on any of the New York Stock Exchange, the
American Stock Exchange, The NASDAQ Global Select Market or The
NASDAQ Global Market (or their respective successors); if the Shares are
immediately re-listed, re-traded or re-quoted on any such exchange or quotation
system, such exchange or quotation system shall be deemed to be the Exchange.
	 
	 	 	 	 
	Additional Disruption Events:	 	 

	 	 	 	 	 

	 

	 	(a)        Change in Law:
	 	Applicable
	 
	 	 	 	 
	 

	 	(b)        Failure to Deliver:
	 	Applicable
	 
	 	 	 	 
	 

	 	(c)        Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	(d)        Loss of Stock Borrow:
	 	Applicable; provided that Sections 12.9(a)(vii) and 12.9(b)(iv)
of the Equity Definitions shall be 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”.

6

 

	 	 	 	 	 

	 

	 	Hedging Party:
	 	GS&Co.
	 
	 	 	 	 
	 

	 	Determining Party: 	 	GS&Co.

	 	 	 	 	 

	 

	 	Additional Termination Event(s):
	 	Notwithstanding anything to the contrary in the Equity Definitions, if, as a result
of an Extraordinary Event, any Transaction would be cancelled or terminated
(whether in whole or in part) pursuant to Article 12 of the Equity Definitions, an
Additional Termination Event (with such terminated Transaction(s) (or portions
thereof) being the Affected Transaction(s) and Counterparty being the sole
Affected Party) shall be deemed to occur, and, in lieu of Sections 12.7, 12.8 and
12.9 of the Equity Definitions, Section 6 of the Agreement shall apply to such
Affected Transaction(s).
	 
	 	 	 	 
	 

	 	 	 	The declaration by the Issuer of any Extraordinary Dividend, the ex-dividend
date for which occurs or is scheduled to occur during the Relevant Dividend
Period, will constitute an Additional Termination Event, with Counterparty as
the sole Affected Party and all Transactions hereunder as the Affected
Transactions.
	 
	 	 	 	 
	 

	 	Relevant Dividend Period:
	 	The period from and including the first day of the Hedge Period to and including
the Relevant Dividend Period End Date.
	 
	 	 	 	 
	 

	 	Relevant Dividend Period

End Date:
	 	If Annex A applies, the last day of the Settlement Valuation Period; otherwise,
the Termination Date.
	 
	 	 	 	 
	 

	 	Non-Reliance/Agreements and
Acknowledgements Regarding
Hedging Activities/Additional
Acknowledgements:
	 	Applicable
	 
	 	 	 	 
	 

	 	Transfer:
	 	Notwithstanding anything to the contrary in the Agreement, GS&Co. may, upon
prior written consent of Counterparty, such consent not to be unreasonably
withheld or delayed, assign, transfer and set over all rights, title and interest,
powers, privileges and remedies of GS&Co. under any Transaction, in whole or
in part, to an affiliate of GS&Co. whose obligations are guaranteed by The
Goldman Sachs Group, Inc. under the GS Group Guarantee (as defined below).
	 
	 	 	 	 
	 

	 	GS&Co. Payment Instructions:
	 	Chase Manhattan Bank New York
	 

	 	 	 	For A/C Goldman, Sachs & Co.
	 

	 	 	 	A/C #930-1-011483
	 

	 	 	 	ABA: 021-000021
	 
	 	 	 	 
	 

	 	Counterparty’s Contact Details
for Purpose of Giving Notice:
	 	Constellation Brands, Inc.
	 

	 	 	 	207 High Point Drive
	 

	 	 	 	Building 100
	 

	 	 	 	Victor, New York 14564
	 

	 	 	 	Attention: David Klein, Sr. Vice President and Treasurer
	 

	 	 	 	Telephone: 585-678-7444
	 

	 	 	 	Facsimile: 585-678-7108
	 

	 	 	 	Email: David.Klein@cbrands.com

7

 

	 	 	 	 	 

	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Attention: David Sorce, Sr. Vice President, Corporate Counsel
	 

	 	 	 	Telephone: 585-678-7457
	 

	 	 	 	Facsimile: 585-678-7112
	 

	 	 	 	Email: David.Sorce@cbrands.com
	 
	 	 	 	 
	 

	 	GS&Co.’s Contact Details for
Purpose of Giving Notice:
	 	Goldman, Sachs & Co.
	 

	 	 	 	200 West Street
	 

	 	 	 	New York, NY 10282-2198
	 

	 	 	 	Attention: Serge Marquie, Equity Capital Markets
	 

	 	 	 	Telephone: 212-902-9779
	 

	 	 	 	Facsimile: 917-977-4253
	 

	 	 	 	Email: serge.marquie@gs.com
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Attention: Jason Lee, Equity Capital Markets
	 

	 	 	 	Equity Capital Markets
	 

	 	 	 	Telephone: +1-212-902-0923
	 

	 	 	 	Facsimile: +1-212-902-5305
	 

	 	 	 	Email: jason.lee@gs.com
	 
	 	 	 	 
	 

	 	 	 	And email notification to the following address:
	 

	 	 	 	Eq-derivs-notifications@am.ibd.gs.com

	2.	       	Calculation Agent: GS&Co. All determinations, judgments and calculations made by the
Calculation Agent shall be made in good faith and in a commercially reasonable manner.
Following any calculation by the Calculation Agent hereunder, upon a prior written request by
Counterparty, the Calculation Agent will provide to Counterparty by e-mail to the e-mail
address provided by Counterparty in such a prior written request a report (in a commonly used
file format for the storage and manipulation of financial data) displaying in reasonable
detail the basis for such calculation, but under no circumstances shall the Calculation Agent
be required to disclose its proprietary valuation models.

3.       Additional Mutual Representations, Warranties and Covenants of Each Party. In addition
to the representations, warranties and covenants in the Agreement, each party represents, warrants
and covenants to the other party that:

          (a)      Eligible Contract Participant. It is an “eligible contract participant”, as
defined in the U.S. Commodity Exchange Act (as amended), and 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)      Accredited Investor. 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. 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 under the Securities Act and (iii) the disposition of each Transaction is
restricted under this Master Confirmation, the Securities Act and state securities laws.

4.      Additional Representations, Warranties and Covenants of Counterparty. In addition to the
representations, warranties and covenants in the Agreement, Counterparty represents, warrants and
covenants to GS&Co. that:

8

 

          (a)      The purchase or writing of each Transaction and the transactions contemplated hereby will
not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

          (b)      It is not entering into any Transaction (i) on the basis of, and is not aware of, any
material non-public information with respect to the Shares (ii) in anticipation of, in connection
with, or to facilitate, a distribution of its securities, a self tender offer or a third-party
tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares).

          (c)      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.

          (d)      Without limiting the generality of Section 13.1 of the Equity Definitions, it acknowledges
that neither GS&Co. nor any of its affiliates is making any representations or warranties or taking
any position or expressing any view with respect to the treatment of any Transaction under any
accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and
Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and
Hedging – Contracts in Entity’s Own Equity (or any successor issue statements).

          (e)      As of (i) the date hereof and (ii) the Trade Date for each Transaction hereunder,
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 to state any material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading;

          (f)      Counterparty shall report each Transaction to the extent required under Regulation S-K
under the Exchange Act.

          (g)      The Shares are not, and Counterparty will not cause the Shares to be, subject to a
“restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time
during any Regulation M Period (as defined below) for any Transaction unless Counterparty has
provided written notice to GS&Co. of such restricted period not later than the Scheduled Trading
Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that
any such notice may cause a Disrupted Day to occur pursuant to Section 5 below; accordingly,
Counterparty acknowledges that its delivery of such notice must comply with the standards set forth
in Section 6 below; “Regulation M Period” means, for any Transaction, (i) the Relevant Period (as
defined below) and (ii) the Settlement Valuation Period, if any, for such Transaction. “Relevant
Period” means, for any Transaction, the period commencing on the first day of the Hedge Period for
such Transaction and ending on the earlier of (i) the Scheduled Termination Date and (ii) the last
Additional Relevant Day (as specified in the related Supplemental Confirmation) for such
Transaction, or such earlier day as elected by GS&Co. and communicated to Counterparty on such day
(or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to
“Special Provisions for Friendly Acquisition Transaction Announcements” below).

          (h)      As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date, the Minimum
Share Delivery Date and the Settlement Date for each Transaction, Counterparty is not “insolvent”
(as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United
States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase a number of Shares
with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of
Counterparty’s incorporation.

          (i)      Counterparty is not and, after giving effect to any Transaction, will not be, required to
register as an “investment company” as such term is defined in the Investment Company Act of 1940,
as amended.

          (j)      Counterparty has not and will not enter into agreements similar to the Transactions
described herein where any initial hedge period, calculation period, relevant period or settlement
valuation period (each

9

 

however defined) in such other transaction will overlap at any time (including as a result of
extensions in such initial hedge period, calculation period, relevant period or settlement
valuation period as provided in the relevant agreements) with any Relevant Period or, if
applicable, any Settlement Valuation Period under this Master Confirmation. In the event that the
initial hedge period, relevant period, calculation period or settlement valuation period in any
other similar transaction overlaps with any Relevant Period or, if applicable, Settlement Valuation
Period under this Master Confirmation as a result of any postponement of the Scheduled Termination
Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption” above,
Counterparty shall promptly amend such transaction to avoid any such overlap.

5.      Regulatory Disruption. In the event that GS&Co. concludes, in its reasonable discretion,
in good faith and upon the advice of outside legal counsel, 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 GS&Co.), for it to refrain from or decrease any market activity on any Scheduled Trading
Day or Days during the Hedge Period, the Calculation Period or, if applicable, the Settlement
Valuation Period, GS&Co. may by written notice to Counterparty elect to deem that a Market
Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days.

6.      10b5-1 Plan. Counterparty represents, warrants and covenants to GS&Co. that:

          (a)      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 under the
Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal
or applicable state securities laws and that it has not entered into or altered and will not enter
into or alter any corresponding or hedging transaction or position with respect to the Shares.
Counterparty acknowledges that it is the intent of the parties that each Transaction entered into
under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of
Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted
to comply with the requirements of Rule 10b5-1(c).

          (b)      Counterparty will not seek to control or influence GS&Co.’s decision to make any
“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, each Supplemental Confirmation and each Trade Notification under Rule 10b5-1.

          (c)      Any amendment, modification, waiver or termination of this Master Confirmation, the
relevant Supplemental Confirmation or Trade Notification must be effected in accordance with the
requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c). Without
limiting the generality of the foregoing, any such amendment, modification, waiver or termination
shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule
10b-5, and no such amendment, modification or waiver shall be made at any time at which
Counterparty or any officer, director, manager or similar person of Counterparty is aware of any
material non-public information regarding Counterparty or the Shares.

7.      Counterparty Purchases. 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 GS&Co., directly or indirectly purchase any Shares (including by means of a
derivative instrument), 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 Relevant Period or, if
applicable, Settlement Valuation Period, except through GS&Co; provided that nothing in this
Section 7 shall restrict the ability of (i) any affiliated purchasers from purchasing shares
from Counterparty upon the exercise of options granted to such affiliated purchasers, (ii) any
affiliated purchasers from purchasing shares from Counterparty pursuant to any equity-based
plan of Counterparty, or (iii) Counterparty’s
acceptance of any shares of Counterparty in satisfaction of any tax withholding or exercise
price obligation pursuant to any equity-based plan of Counterparty.

8.      Special Provisions for Merger Transactions. Notwithstanding anything to the contrary
herein or in the Equity Definitions:

10

 

(a)      Counterparty agrees that it:

          (i)      will not during the period commencing on the Trade Date through the end of the
Relevant Period or, if applicable, the Settlement Valuation Period for any Transaction
make, or, to the extent it is within its reasonable control, permit to be made, any public
announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction
or potential Merger Transaction unless such public announcement is made prior to the
opening or after the close of the regular trading session on the Exchange for the Shares;

          (ii)      shall promptly (but in any event prior to the next opening of the regular trading
session on the Exchange) notify GS&Co. following any such announcement that such
announcement has been made; and

          (iii)      shall promptly (but in any event prior to the next opening of the regular
trading session on the Exchange) provide GS&Co. 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 GS&Co. 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. Such written notice shall be deemed to be a
certification by Counterparty to GS&Co. that such information is true and correct. In
addition, Counterparty shall promptly notify GS&Co. of the earlier to occur of the
completion of such transaction and the completion of the vote by target shareholders.

(b)      Counterparty acknowledges that any such public announcement of a Merger Transaction or
potential Merger Transaction or delivery of a notice with respect thereto may cause a Regulatory
Disruption; accordingly, Counterparty acknowledges that its delivery of such notice must comply
with the standards set forth in Section 6 above.

(c)      GS&Co. in its good faith and commercially reasonable discretion may (i) if Section 5 of
the Master Confirmation applies, make good faith and commercially reasonable adjustments to the
terms of any Transaction in respect of such public announcement as provided under “Potential
Adjustment Event” in Section 1 of this Master Confirmation or (ii) treat the occurrence of such
public announcement as an Additional Termination Event with Counterparty as the sole Affected Party
and the Transactions hereunder as the Affected Transactions and with the amount under Section 6(e)
of the Agreement determined taking into account the fact that the Calculation Period or Settlement
Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.

          “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.

9.      Special Provisions for Friendly Acquisition Transaction Announcements.  (a) If a
Friendly Acquisition Transaction Announcement occurs on or prior to the Settlement Date for any
Transaction or any earlier date of termination or cancellation of the relevant Transaction pursuant
to Section 6 of the Agreement or Article 12 of the Equity Definitions (such date, the “Actual
Termination Date”), then the Number of Shares to be Delivered for such Transaction shall be
determined as if the words “less than the Minimum Shares and not” and “, but not below zero,” were
deleted from the definition thereof. If a Friendly Acquisition Transaction Announcement occurs
after the Trade Date, but prior to the First Acceleration Date of any Transaction, the First
Acceleration Date shall be the date of such Friendly Acquisition Transaction Announcement. If a
Friendly Acquisition Transaction Announcement occurs after the Actual Termination Date with respect
to a Transaction, then a second settlement of such Transaction (a “Second Settlement”) shall occur
(notwithstanding such earlier settlement, termination or cancellation) with a Number of Shares to
be Delivered at the Second Settlement equal to the lesser of (i) zero and (ii) (x) the Number of
Shares to be Delivered determined pursuant to the first sentence of this paragraph as if such
Friendly Acquisition Transaction Announcement occurred prior to such Actual Termination Date minus
(y) the Number of Shares to be Delivered determined pursuant to Section 1 of this Master
Confirmation
(provided that in the case of a Second Settlement occurring after such an early termination or
cancellation, a Number of Shares to be Delivered shall not be determined and instead a Forward Cash
Settlement Amount will be determined as provided in Annex A). If the

11

 

Number of Shares to be Delivered for any settlement of any Transaction is a negative number, then
the terms of the Counterparty Settlement Provisions in Annex A shall apply.

          (b)      “Friendly Acquisition Transaction Announcement” means (i) an Acquisition Transaction
Announcement by Counterparty, its board of directors or any Sands Owner prior to the Actual
Termination Date, (ii) (A) an announcement by Counterparty, its board of directors or any Sands
Owner prior to the date three months following the Scheduled Termination Date that an Acquisition
Transaction that was the subject of an Acquisition Transaction Announcement occurring prior to the
Actual Termination Date has been approved, agreed to, recommended by or otherwise consented to by
Counterparty or its board of directors, or negotiated by Counterparty or any authorized
representative of Counterparty or (B) consummation prior to the date three months following the
Scheduled Termination Date of an Acquisition Transaction that was the subject of an Acquisition
Transaction Announcement occurring prior to the Actual Termination Date, or (iii) where
Counterparty or its board of directors has a legal obligation to make a recommendation, prior to
the date three months following the Scheduled Termination Date, to the Counterparty’s shareholders
in respect of an Acquisition Transaction that was the subject of an Acquisition Transaction
Announcement occurring prior to the Actual Termination Date, the absence, by the end of the time
period during which such recommendation is required to be made, of a recommendation that its
shareholders reject such transaction. For purposes of this Master Confirmation, a “Sands Owner”
means Richard Sands, Robert Sands, any entity whose shares are beneficially owned by Richard Sands
or Robert Sands within the meaning of Rule 13d-3 under the Exchange Act, any successor in interest
to any stake in Counterparty currently held or controlled, directly or indirectly, by Richard
Sands, Robert Sands or such an entity, or any person acting, directly or indirectly, as agent or on
behalf of any of the foregoing.

          (c)      “Acquisition Transaction Announcement” means (i) the announcement of an Acquisition
Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an
agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction,
(iii) the announcement of the intention to solicit or enter into, or to explore strategic
alternatives or other similar undertaking that is reasonably likely to include, an Acquisition
Transaction, or (iv) any other similar announcement that in the reasonable judgment of the
Calculation Agent is reasonably likely to result in an Acquisition Transaction. For the avoidance
of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to
any public announcement whether made by the Issuer or a third party.

          (d)      “Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the
definition of Merger Event shall be read with the references therein to “100%” being replaced by
“30%” and to “50%” by “66 2/3%” and without reference to the clause beginning immediately following
the definition of Reverse Merger therein to the end of such definition) or Tender Offer (for
purposes of this definition the definition of Tender Offer shall be read with the reference therein
to “10%” being replaced by “30%” and the reference to “voting shares of the Issuer” with a
reference to “Shares”), (ii) the sale or transfer of all or substantially all of the assets of
Counterparty, (iii) any acquisition, lease, exchange, transfer, disposition (including by way of
spin-off or distribution) of assets (including any capital stock or other ownership interests in
subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate
consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 30% of
the market capitalization of Counterparty, and (iv) any transaction in which Counterparty or its
board of directors has a legal obligation to make a recommendation to its shareholders in respect
of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise) other than
a Tender Offer that is not captured by clause (i) of this Section 9(d).

10.      Acknowledgments. (a) The parties hereto intend for:

          (i)      each Transaction to be a “securities contract” as defined in Section 741(7) of the
Bankruptcy Code, a “swap agreement” as defined in Section 101(53B) of the Bankruptcy Code
and 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), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 555, 556, 560 and 561 of the
Bankruptcy Code;

          (ii)     the Agreement to be a “master netting agreement” as defined in Section 101(38A)
of the Bankruptcy Code;

12

 

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

          (iv)      all payments for, under or in connection with each Transaction, all payments for
the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and
the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined
in the Bankruptcy Code).

          (b)      Counterparty acknowledges that:

                    (i)      during the term of any Transaction, GS&Co. and its affiliates may buy or sell Shares or
other securities or buy or sell options or futures contracts or enter into swaps or other
derivative securities in order to establish, adjust or unwind its hedge position with respect to
such Transaction;

                    (ii)      GS&Co. and its affiliates may also be active in the market for the Shares other than in
connection with hedging activities in relation to any Transaction;

                    (iii)      GS&Co. shall make its own determination as to whether, when or in what manner any
hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a
manner that it deems appropriate to hedge its price and market risk with respect to the Forward
Price and the VWAP Price;

                    (iv)      any market activities of GS&Co. and its affiliates with respect to the Shares may affect
the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in
a manner that may be adverse to Counterparty; and

                    (v)      each Transaction is a derivatives transaction with embedded options; GS&Co. may purchase shares for its own account at an average price that may be greater than, or less than, the price
paid by Counterparty under the terms of the related Transaction.

11.      Credit Support Document. GS&Co. shall provide to Counterparty a copy of the General
Guarantee Agreement dated January 30, 2006 (the “GS Group Guarantee”) made by The Goldman Sachs
Group, Inc. (“GS Group”) in favor of each person to whom GS&Co. may owe any Obligations (as defined
in the General Guarantee Agreement) and filed as Exhibit 10.45 to GS Group’s Form 10-K for the
fiscal year ended November 25, 2005 and any successor guarantee by GS Group in favor of each person
to whom GS&Co. may owe any Obligations (as defined in the General Guarantee Agreement), which shall
constitute a Credit Support Document hereunder with respect to GS&Co. The parties hereto
acknowledge that no Transaction hereunder is secured by any collateral that would otherwise secure
the obligations of Counterparty herein or pursuant to the Agreement. As of the Trade Date, the
Prepayment Date, the Initial Share Delivery Date, the Minimum Share Delivery Date and the
Settlement Date for each Transaction, the GS Group Guarantee has not been revoked with respect to
the Transactions hereunder and is in full force and effect with respect to each Transaction
hereunder, and Counterparty is entitled to the benefit of the GS Group Guarantee with respect to
GS&Co.’s obligations with respect to each Transaction hereunder.

12.      Credit Support Provider. Credit Support Provider means, with respect to GS&Co., GS
Group, and Credit Support Provider is not applicable with respect to Counterparty.

13.      No Set-off. Each party waives any and all rights it may have to set-off delivery or
payment obligations it owes to the other party under any transaction against any delivery or
payment obligations owed to it by the other party arising under any agreement between the parties
hereto other than the Agreement, by operation of law or otherwise.

14.      Delivery of Shares. Notwithstanding anything to the contrary herein, GS&Co. may, by
prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on
any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such
securities, as the case may be, at more than one time on or

13

 

prior to such Original Delivery Date, so long as the aggregate number of Shares and other
securities so delivered on or prior to such Original Delivery Date is equal to the number required
to be delivered on such Original Delivery Date.

15.      Early Termination. In the event that an Early Termination Date (whether as a result of
an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction
(except as a result of a Merger Event in which the consideration or proceeds to be paid to holders
of Shares consists solely of cash), if either party would owe any amount to the other party
pursuant to Section 6(d)(ii) of the Agreement (any such amount, a “Payment Amount”), then, in lieu
of any payment of such Payment Amount, Counterparty may, no later than the Early Termination Date
or the date on which such Transaction is terminated, elect to deliver or for GS&Co. to deliver, as
the case may be, to the other party a number of Shares (or, in the case of a Merger Event, a number
of units, each comprising the number or amount of the securities or property that a hypothetical
holder of one Share would receive in such Merger Event (each such unit, an “Alternative Delivery
Unit” and, the securities or property comprising such unit, “Alternative Delivery Property”)) with
a value equal to the Payment Amount, as determined by the Calculation Agent (and the parties agree
that, in making such determination of value, the Calculation Agent may take into account a number
of factors, including the market price of the Shares or Alternative Delivery Property on the date
of early termination and, if such delivery is made by GS&Co., the prices at which GS&Co. purchases
Shares or Alternative Delivery Property to fulfill its delivery obligations under this Section 15);
provided that in determining the composition of any Alternative Delivery Unit, if the relevant
Merger Event involves a choice of consideration to be received by holders, such holder shall be
deemed to have elected to receive the maximum possible amount of cash. If such delivery is made by
Counterparty, paragraphs 2 through 7 of Annex A shall apply as if such delivery were a settlement
of the Transaction to which Net Share Settlement applied, the Cash Settlement Payment Date were the
Early Termination Date and the Forward Cash Settlement Amount were zero (0) minus the Payment
Amount owed by Counterparty.

16.      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; provided that if Counterparty elects to receive Shares or Alternative
Delivery Property in accordance with Section 15, such Shares or Alternative Delivery Property shall
be delivered on a date selected by GS&Co as promptly as practicable.

17.      Special Provisions for Counterparty Payments. The parties hereby agree that,
notwithstanding anything to the contrary herein or in the Agreement, in the event that an Early
Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is
designated with respect to any Transaction and, as a result, Counterparty owes to GS&Co. an amount
calculated under Section 6(e) of the Agreement, such amount shall be deemed to be zero; provided
that following a Friendly Acquisition Transaction Announcement, this Section 17 shall cease to
apply. For the avoidance of doubt, except to the extent that Section 9 of this Master Confirmation
applies, Counterparty shall not be required under any circumstances to make any additional cash
payments (other than the Prepayment Amount) or deliver (or return) any Initial Shares or Minimum
Shares in connection with any Transaction.

18.      Delivery of Cash. For the avoidance of doubt, nothing in this Master Confirmation shall
be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the
Transactions contemplated by this Master Confirmation following payment by Counterparty of the
relevant Prepayment Amount, except in circumstances where the required cash settlement thereof is
permitted for classification of the contract as equity by ASC 815-40 as in effect on the relevant
Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails
timely to elect to deliver Shares or Alternative Delivery Property in respect of the settlement of
such Transactions).

19.      Claim in Bankruptcy. GS&Co. acknowledges and agrees that this Confirmation is not
intended to convey to it rights with respect to the Transaction that are senior to the claims of
common stockholders in the event of Counterparty’s bankruptcy.

20.      General Obligations Law of New York. With respect to each Transaction, (i) this Master
Confirmation, together with the related Supplemental Confirmation, as supplemented by the related
Trade Notification, is a “qualified financial contract”, as such term is defined in Section
5-701(b)(2) of the General Obligations Law of New

14

 

York (the “General Obligations Law”); (ii) such Trade Notification constitutes a “confirmation in
writing sufficient to indicate that a contract has been made between the parties” hereto, as set
forth in Section 5-701(b)(3)(b) of the General Obligations Law; and (iii) this Master Confirmation,
together with the related Supplemental Confirmation, constitutes a prior “written contract” as set
forth in Section 5-701(b)(1)(b) of the General Obligations Law, and each party hereto intends and
agrees to be bound by this Master Confirmation and the related Supplemental Confirmation, as
supplemented by the Trade Notification.

21.      Governing Law. The Agreement, this Master Confirmation, each Supplemental Confirmation,
each Trade Notification and all matters arising in connection with the Agreement, this Master
Confirmation, each Supplemental Confirmation and each Trade Notification shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York (without reference to
its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations
Law).

22.     Offices.

          (a)      The Office of GS&Co. for each Transaction is: 200 West Street, New York, New York
10282-2198.

          (b)      The Office of Counterparty for each Transaction is: 207 High Point Drive, Building 100,
Victor, New York 14564.

23.     Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable
law, any right it may have to a trial by jury in respect of any suit, action or proceeding relating
to any Transaction. Each party (i) certifies that no representative, agent or attorney of the other
party has represented, expressly or otherwise, that such other party would not, in the event of
such a suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that
it and the other party have been induced to enter into any Transaction hereunder by, among other
things, the mutual waivers and certifications provided herein.

24.     Submission to Jurisdiction. Section 13(b) of the Agreement is deleted in its entirety
and replaced by the following:

“Each party hereby irrevocably and unconditionally submits for itself and its property in
any suit, legal action or proceeding relating to this Agreement and/or any Transaction, or
for recognition and enforcement of any judgment in respect thereof, (each, “Proceedings”)
to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in New
York County, the courts of the United States of America for the Southern District of New
York and appellate courts from any thereof. Nothing in this Master Confirmation, any
Supplemental Confirmation, any Trade Notification or this Agreement precludes either party
from bringing Proceedings in any other jurisdiction if (A) the courts of the State of New
York or the United States of America for the Southern District of New York lack
jurisdiction over the parties or the subject matter of the Proceedings or declines to
accept the Proceedings on the grounds of lacking such jurisdiction; (B) the Proceedings are
commenced by a party for the purpose of enforcing against the other party’s property,
assets or estate any decision or judgment rendered by any court in which Proceedings may be
brought as provided hereunder; (C) the Proceedings are commenced to appeal any such court’s
decision or judgment to any higher court with competent appellate jurisdiction over that
court’s decisions or judgments if that higher court is located outside the State of New
York or Borough of Manhattan, such as a federal court of appeals or the U.S. Supreme Court;
or (D) any suit, action or proceeding has been commenced in another jurisdiction by or
against the other party or against its property, assets or estate and, in order to exercise
or protect its rights, interests or remedies under the Agreement, this Master Confirmation,
any Supplemental Confirmation or any Trade Notification, the party (1) joins, files a
claim, or takes any other action, in any such suit, action or proceeding, or (2) otherwise
commences any Proceeding in that other jurisdiction as the result of that other suit,
action or proceeding having commenced in that other jurisdiction.”

25.     Counterparts; Facsimile Execution. This Master Confirmation and any Supplemental
Confirmation may be executed in any number of counterparts, all of which shall constitute one and
the same instrument, and any party

15

 

hereto may execute this Master Confirmation and any Supplemental Confirmation by signing and
delivering one or more counterparts. Delivery of this Master Confirmation, any Supplemental
Confirmation or any Trade Notification or a counterpart hereof or thereof by facsimile or other
electronic transmission evidencing a signature shall be legal, valid and binding for all purposes
and will have the same effect as delivery of this Master Confirmation, such Supplemental
Confirmation, such Trade Notification or a counterpart hereof or thereof bearing an original
signature.

16

 

          Please confirm your agreement to be bound by the terms stated in this Master Confirmation 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 faithfully,

GOLDMAN, SACHS & CO.

	 
	 	By:  	/s/ Jonathan S. Lipnick
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 

	Agreed and Accepted By:	 	 
	 
	 	 	 	 
	CONSTELLATION BRANDS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ David Klein	 	 
	 

	 	Name: David Klein	 	 
	 

	 	Title:        Senior Vice President and Treasurer	 	 

 

 

SCHEDULE A

SUPPLEMENTAL CONFIRMATION

	 	 	 

	To:

	 	Constellation Brands, Inc.
	 

	 	207 High Point Drive
	 

	 	Building 100
	 

	 	Victor, New York 14564
	 
	 	 
	From:

	 	Goldman, Sachs & Co.
	 
	 	 
	Subject:

	 	Collared Accelerated Stock Buyback
	 
	 	 
	Ref. No:

	 	[Insert Reference No.]
	 
	 	 
	Date:

	 	[Insert Date]

 

                    The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the
Transaction entered into between Goldman, Sachs & Co. (“GS&Co.”) and Constellation Brands, Inc.
(“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This
Supplemental
Confirmation is a binding contract between GS&Co. and Counterparty as of the relevant Trade Date
for the Transaction referenced below.

1.          This Supplemental Confirmation supplements, forms part of, and is subject to the Master
Confirmation dated as of April 16, 2010 (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:

	 	[               ]
	 
	 	 
	Forward Price Adjustment Amount:

	 	As specified in the Trade Notification, to be [               ]% of the
Hedge Period Reference Price.
	 
	 	 
	Hedge Period Start Date:

	 	[               ]
	 
	 	 
	Calculation Period Start Date:

	 	[               ]
	 
	 	 
	Hedge Period End Date:

	 	[               ]
	 
	 	 
	Scheduled Termination Date:

	 	[               ]
	 
	 	 
	First Acceleration Date:

	 	[               ]
	 
	 	 
	Prepayment Amount:

	 	USD [               ]
	 
	 	 
	Prepayment Date:

	 	[               ]

A-1

 

	 	 	 

	Initial Shares:

	 	[                    ]
Shares; [provided that if, in connection with the
Transaction, GS&Co. is unable to borrow or otherwise acquire a
number of Shares equal to the Initial Shares for delivery to
Counterparty on the Initial Share Delivery Date, the Initial Shares
delivered on the Initial Share Delivery Date shall be reduced to
such number of Shares that GS&Co. is able to so borrow or
otherwise acquire]1.
	 
	 	 
	Initial Share Delivery Date:

	 	[               ]
	 
	 	 
	Minimum Shares:

	 	As set forth in the Trade Notification, to be a number of Shares
equal to (a) the Prepayment Amount divided by (b) [     ]% of the
Hedge Period Reference Price.
	 
	 	 
	Maximum Shares:

	 	As set forth in the Trade Notification, to be a number of Shares
equal to (a) the Prepayment Amount divided by (b) [     ]% of the
Hedge Period Reference Price.
	 
	 	 
	Additional Relevant Days:

	 	The [___] Exchange Business Days immediately following the
Calculation Period.
	 
	 	 
	Loss of Stock Borrow:

	 	Not Applicable2

3.          Section 9(b) of the Master Confirmation is hereby amended by deleting each reference to the word
“three” therein and replacing it with the word “two”.

4.          Counterparty represents and warrants to GS&Co. that except for any purchase consented to by
GS&Co. neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act)
has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange
Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii)
during the calendar week in which the Trade Date occurs.

 

			
	 
	1 Will not apply to first trade under the Master Confirmation.
	 
	2 For the first trade under the Master Confirmation.

A-2

 

          Please confirm your agreement to be bound by the terms stated in this Supplemental
Confirmation 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 & CO.

 	 
	 	By:  	 
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 

	Agreed and Accepted By:
	 
	 	 	 	 
	CONSTELLATION BRANDS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

A-3

 

SCHEDULE B

TRADE NOTIFICATION

	 	 	 

	To:

	 	Constellation Brands, Inc.
	 

	 	207 High Point Drive
	 

	 	Building 100
	 

	 	Victor, New York 14564
	 
	 	 
	From:

	 	Goldman, Sachs & Co.
	 
	 	 
	Subject:

	 	Collared Accelerated Stock Buyback
	 
	 	 
	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 & Co. (“GS&Co.”) and Constellation Brands, Inc.
(“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below.

          This Trade Notification supplements, forms part of, and is subject to the Supplemental
Confirmation dated as of [Insert Date of Supplemental Confirmation] (the “Supplemental
Confirmation”) between the Contracting Parties, as amended and supplemented from time to time. The
Supplemental Confirmation is subject to the Master Confirmation dated as of April 16, 2010 (the
“Master Confirmation”) between the Contracting Parties, as amended and supplemented from time to
time.

	 	 	 

	Hedge Completion Date:

	 	[               ]
	 
	 	 
	Hedge Period Reference Price:

	 	USD [               ]
	 
	 	 
	Forward Price Adjustment Amount:

	 	USD [               ]
	 
	 	 
	Minimum Shares:

	 	[     ]
	 
	 	 
	Maximum Shares:

	 	[     ]

	 	 	 	 	 
	 	Yours sincerely,

GOLDMAN, SACHS & CO.

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

B-1

 

ANNEX A

COUNTERPARTY SETTLEMENT PROVISIONS

                    1.          The following Counterparty Settlement Provisions shall apply to the extent indicated under
the Master Confirmation:

	 	 	 	 	 

	 
	 	Settlement Currency:	 	USD
	 
	 	 	 	 
	 
	 	Settlement Method Election:	 	Applicable; provided that (i) 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
words “Net Share” and (ii) the Electing Party may make a
settlement method election only if the Electing Party
represents and warrants to GS&Co. in writing on the date it
notifies GS&Co. of its election that, as of such date, the
Electing Party is not aware of any material non-public
information concerning Counterparty or the Shares and is
electing the settlement method in good faith and not as part of
a plan or scheme to evade compliance with the federal
securities laws.
	 
	 	 	 	 
	 
	 	Electing Party:	 	Counterparty
	 
	 	 	 	 
	 
	 	Settlement Method

Election Date:	 	
The earlier of (i) the Scheduled Termination Date and (ii) the
Exchange Business Day immediately following the
Accelerated Termination Date (in which case the election
under Section 7.1 of the Equity Definitions shall be made no
later than 10 minutes prior to the open of trading on the
Exchange on such Exchange Business Day), as the case may
be; provided that if a Friendly Acquisition Transaction
Announcement occurs after the Actual Termination Date, the
Settlement Method Election Date for the Second Settlement
shall be the date of the Friendly Acquisition Transaction
Announcement.
	 
	 	 	 	 
	 
	 	Default Settlement Method:	 	Cash Settlement
	 
	 	 	 	 
	 
	 	Forward Cash Settlement

Amount:	 	
The Number of Shares to be Delivered multiplied by the
Settlement Price; provided that in the case of a Second
Settlement occurring after an early termination or cancellation
of the relevant Transaction pursuant to Section 6 of the
Agreement or Article 12 of the Equity Definitions, the
Forward Cash Settlement Amount shall equal the lesser of (i)
zero and (ii)(x) the Payment Amount that would have been
calculated for such early termination or cancellation if the
words “less than the Minimum Shares and not” and “, but not
below zero,” had been deleted from the definition of Number
of Shares to be Delivered and, for purposes of “Special
Provisions for Counterparty Payments” of the Master
Confirmation, the relevant Friendly Acquisition Transaction
Announcement had occurred prior to such calculation, as
determined by the Calculation Agent (with an amount that
would have been owed by Counterparty expressed as a

1

 

	 	 	 	 	 

	 

	 	 	 	negative number for purposes of this calculation) minus (y) the
actual Payment Amount calculated for such early termination
or cancellation.
	 
	 	 	 	 
	 

	 	Settlement Price:
	 	The average of the VWAP Prices (or, in the case of a Second
Settlement, the Relevant Prices) for the Exchange Business
Days in the Settlement Valuation Period, subject to Valuation
Disruption as specified in the Master Confirmation or, in the
case of a Second Settlement, subject to Section 6.6(a) of the
Equity Definitions as if such dates were Valuation Dates.
	 
	 	 	 	 
	 

	 	Settlement Valuation Period:
	 	A number of Scheduled Trading Days selected by the
Calculation Agent, beginning on the Scheduled Trading Day
immediately following the Termination Date or, in the case of
a Second Settlement, the date of the Friendly Acquisition
Transaction Announcement.
	 
	 	 	 	 
	 

	 	Cash Settlement:
	 	If Cash Settlement is applicable, then Buyer shall pay to Seller
the absolute value of the Forward Cash Settlement Amount on
the Cash Settlement Payment Date.
	 
	 	 	 	 
	 

	 	Cash Settlement

Payment Date:
	 	
The date one Settlement Cycle following the last day of the
Settlement Valuation Period.
	 
	 	 	 	 
	 

	 	Net Share Settlement

Procedures:
	 	
If Net Share Settlement is applicable, Net Share Settlement
shall be made in accordance with paragraphs 2 through 7
below.

                    2.          Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a
number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered
Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered
Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash
Settlement Amount, with such Shares’ value based on the value thereof to GS&Co. (which value shall,
in the case of Unregistered Settlement Shares, take into account a commercially reasonable
illiquidity discount), in each case as determined by the Calculation Agent.

                    3.          Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above
if:

                    (a)         a registration statement covering public resale of the Registered Settlement Shares by
GS&Co. (the “Registration Statement”) shall have been filed with the Securities and Exchange
Commission under the Securities Act and been declared or otherwise become effective on or prior to
the date of delivery, and no stop order shall be in effect with respect to the Registration
Statement; a printed prospectus relating to the Registered Settlement Shares (including any
prospectus supplement thereto, the “Prospectus”) shall have been delivered to GS&Co., in such
quantities as GS&Co. shall reasonably have requested, on or prior to the date of delivery;

                    (b)         the form and content of the Registration Statement and the Prospectus (including, without
limitation, any sections describing the plan of distribution) shall be reasonably satisfactory to
GS&Co. (provided, GS&Co. shall provide Counterparty any information reasonably required by
Counterparty for the preparation of the plan of distribution section of any Prospectus);

                    (c)         as of or prior to the date of delivery, GS&Co. and its agents shall have been afforded a
reasonable opportunity to conduct a due diligence investigation with respect to Counterparty
customary in scope for

2

 

underwritten offerings of equity securities and the results of such investigation are satisfactory
to GS&Co., in its discretion; and

                    (d)         as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been
entered into with GS&Co. in connection with the public resale of the Registered Settlement Shares
by GS&Co. substantially similar to underwriting agreements customary for underwritten offerings of
equity securities, in form and substance reasonably satisfactory to GS&Co., which Underwriting
Agreement shall include, without limitation, provisions substantially similar to those contained in
such underwriting agreements relating, without limitation, to the indemnification of, and
contribution in connection with the liability of, GS&Co. and its affiliates and the provision of
customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.

                    4.          If Counterparty delivers Unregistered Settlement Shares pursuant to
paragraph 2 above:

                    (a)         all Unregistered Settlement Shares shall be delivered to GS&Co. (or any affiliate of
GS&Co. designated by GS&Co.) pursuant to the exemption from the registration requirements of the
Securities Act provided by Section 4(2) thereof;

                    (b)         as of or prior to the date of delivery, GS&Co. and any potential purchaser of any such
shares from GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) identified by GS&Co. shall be
afforded a commercially reasonable opportunity to conduct a due diligence investigation with
respect to Counterparty customary in scope for private placements of equity securities (including,
without limitation, the right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested by them);

                    (c)         as of the date of delivery, Counterparty shall enter into an agreement (a “Private
Placement Agreement”) with GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) in connection
with the private placement of such shares by Counterparty to GS&Co. (or any such affiliate) and the
private resale of such shares by GS&Co. (or any such affiliate), substantially similar to private
placement purchase agreements customary for private placements of equity securities, in form and
substance commercially reasonably satisfactory to GS&Co., which Private Placement Agreement shall
include, without limitation, provisions substantially similar to those contained in such private
placement purchase agreements relating, without limitation, to the indemnification of, and
contribution in connection with the liability of, GS&Co. and its affiliates and the provision of
customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall
provide for the payment by Counterparty of all reasonable fees and expenses in connection with such
resale, including all reasonable fees and expenses of counsel for GS&Co., and shall contain
representations, warranties, covenants and agreements of Counterparty reasonably necessary or
advisable to establish and maintain the availability of an exemption from the registration
requirements of the Securities Act for such resales; and

                    (d)         in connection with the private placement of such shares by Counterparty to GS&Co. (or any
such affiliate) and the private resale of such shares by GS&Co. (or any such affiliate),
Counterparty shall, if so requested by GS&Co., prepare, in cooperation with GS&Co., a private
placement memorandum in form and substance reasonably satisfactory to GS&Co.

                    5.          GS&Co., itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will
sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares
or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the
“Settlement Shares”) delivered by Counterparty to GS&Co. pursuant to paragraph 6 below commencing
on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net
Proceeds (as such term is defined below) of such sales is equal to the absolute value of the
Forward Cash Settlement Amount (such date, the “Final Resale Date”). If the proceeds of any sale(s)
made by GS&Co., the Selling Agent or any underwriter(s), net of any fees and commissions
(including, without limitation, underwriting or placement fees) customary for similar transactions
under the circumstances at the time of the offering, together with carrying charges and expenses
incurred in connection with the offer and sale of the Shares (including, but without limitation to,
the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”)
exceed the absolute value of the Forward Cash Settlement Amount, GS&Co. will refund, in USD, such
excess to Counterparty on the date that is three (3) Currency Business

3

 

Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold,
GS&Co. shall return to Counterparty on that date such unsold Shares.

                    6.          If the Calculation Agent determines that the Net Proceeds received
from the sale of the
Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any,
pursuant to this paragraph 6 are less than the absolute value of the Forward Cash
Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of
the Forward Cash Settlement Amount being the “Shortfall” and the date on which such
determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange
Business Day next succeeding the later of the Deficiency Determination Date or the date on which
the Calculation Agent gives Counterparty notice of the Shortfall (as applicable, the “Makewhole
Notice Date”) deliver to GS&Co., through the Selling Agent, a notice of Counterparty’s election
that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is
one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.
If Counterparty elects to deliver to GS&Co. additional Shares, then Counterparty shall deliver
additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above,
as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is
also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation
Agent reasonably believes would have a market value on that Exchange Business Day equal to the
Shortfall. Such Makewhole Shares shall be sold by GS&Co. in accordance with the provisions above;
provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and
the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the
Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash
payment or deliver to GS&Co. further Makewhole Shares until such Shortfall has been reduced to
zero.

                    7.          Notwithstanding the foregoing, in no event shall the aggregate number
of Settlement
Shares and Makewhole Shares be greater than the Reserved Shares minus the amount of any Shares
actually delivered by Counterparty under any other Transaction(s) under this Master Confirmation
(the result of such 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 shares of the Counterparty that are not outstanding
or 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.

                    “Reserved Shares” means initially, 25,000,000 Shares. The Reserved Shares may be increased or
decreased in a Supplemental Confirmation.

4exv10w11

Exhibit 10.11

SUPPLEMENTAL CONFIRMATION

	 	 	 

	To:

	 	Constellation Brands, Inc.
	 

	 	207 High Point Drive
	 

	 	Building 100
	 

	 	Victor, New York 14564
	 
	 	 
	From:

	 	Goldman, Sachs & Co.
	 
	 	 
	Subject:

	 	Collared Accelerated Stock Buyback
	 
	 	 
	Ref. No:

	 	SDB1631459600
	 
	 	 
	Date:

	 	April 16, 2010

 

                    The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the
Transaction entered into between Goldman, Sachs & Co. (“GS&Co.”) and Constellation Brands, Inc.
(“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This
Supplemental
Confirmation is a binding contract between GS&Co. and Counterparty as of the relevant Trade Date
for the Transaction referenced below.

1.          This Supplemental Confirmation supplements, forms part of, and is subject to the Master
Confirmation dated as of April 16, 2010 (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:

	 	April 16, 2010
	 
	 	 
	Forward Price Adjustment Amount:

	 	As specified in the Trade Notification, to be 1.00% of the Hedge
Period Reference Price.
	 
	 	 
	Hedge Period Start Date:

	 	April 19, 2010
	 
	 	 
	Calculation Period Start Date:

	 	April 26, 2010
	 
	 	 
	Hedge Period End Date:

	 	May 17, 2010
	 
	 	 
	Scheduled Termination Date:

	 	November 24, 2010
	 
	 	 
	First Acceleration Date:

	 	June 28, 2010
	 
	 	 
	Prepayment Amount:

	 	USD 300,000,000
	 
	 	 
	Prepayment Date:

	 	April 21, 2010
	 
	 	 
	Initial Shares:

	 	11,016,451
	 
	 	 
	Initial Share Delivery Date:

	 	April 21, 2010
	 
	 	 
	Minimum Shares:

	 	As set forth in the Trade Notification, to be a number of Shares
equal to (a) the Prepayment Amount divided by (b) 120% of the
Hedge Period Reference Price.

A-1

 

	 	 	 

	Maximum Shares:

	 	As set forth in the Trade Notification, to be a number of Shares
equal to (a) the Prepayment Amount divided by (b) 90% of the
Hedge Period Reference Price.
	 
	 	 
	Additional Relevant Days:

	 	The 5 Exchange Business Days immediately following the
Calculation Period.
	 
	 	 
	Loss of Stock Borrow:

	 	Not Applicable

3.          Section 9(b) of the Master Confirmation is hereby amended by deleting each reference to the word
“three” therein and replacing it with the word “two”.

4.          Counterparty represents and warrants to GS&Co. that except for any purchase consented to by
GS&Co. neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act)
has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange
Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii)
during the calendar week in which the Trade Date occurs.

A-2

 

          Please confirm your agreement to be bound by the terms stated in this Supplemental
Confirmation 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 & CO.

 	 
	 	By:  	/s/ Jonathan S. Lipnick 
	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

	 	 	 	 	 

	Agreed and Accepted By:
	 
	 	 	 	 
	CONSTELLATION BRANDS, INC.
	 
	 	 	 	 
	By:

	 	/s/ David Klein	 	 
	 

	 	 	 	 
	Name: David Klein
	Title:   Senior Vice President and Treasurer

A-3

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