Document:

exv10w47

 

EXHIBIT 10.47

Dreyer’s Grand Ice Cream,
Inc.

March 22, 2004

Bank of America, N.A., as Agent

231 S. LaSalle Street

Chicago, IL 60697

Attn: David L. Catherall

Re: Bank of America, N.A., as Agent for banks
party to the $240,000,000 Credit Agreement (“Credit
Agreement”) dated as of July 25, 2000,as amended,
between such banks, Dreyer’s Grand Ice Cream, Inc.
(“Company”) and Dreyer’s Grand Ice Cream
Holdings, Inc., (“New Dreyer’s”)

Dear Mr. Catherall:

Pursuant to the terms of Section 2.05
(a) Voluntary Termination or Reduction of
Commitments the Company and New Dreyer’s hereby give a
notice to reduce the Commitments by Two Hundred Twenty Million
($220,000,000) to Twenty Million ($20,000,000).

This reduction shall be effective as of the end
of business on Friday, March 26, 2004.

Dreyer’s Grand Ice Cream, Inc.

Dreyer’s Grand Ice Cream Holdings, Inc.

/s/ WILLIAM C. COLLETT

William C. Collett

Treasurerexv10w48

 

EXHIBIT 10.48

DREYER’S GRAND ICE CREAM
HOLDINGS, INC.

2004 LONG-TERM INCENTIVE PLAN

     
1.  ESTABLISHMENT, PURPOSE AND TERM
OF PLAN.

     
1.1     Establishment.
The Dreyer’s Grand Ice Cream Holdings, Inc. 2004
Long-Term Incentive Plan (the “Plan”) is hereby
established effective as
of April 1,
2004 (the “Effective Date”).

     
1.2     Purpose.
The purpose of the Plan is to advance the interests of the
Company by providing an incentive to attract, retain and reward
persons performing services for the Company or an Affiliate and
by motivating such persons to contribute to the growth and
profitability of the Company. The Plan is intended to accomplish
this purpose by providing for the award to its participants of
certain rights, subject to the terms and conditions of the Plan
and the participant’s award agreement, to receive a payment
determined by the increase in value of the Company’s
earnings.

     
1.3     Term of
Plan. The Plan shall continue in effect until terminated by
the Administrator.

     
2.  DEFINITIONS AND CONSTRUCTION.

     
2.1     Definitions.
Whenever used herein, the following terms shall have their
respective meanings set forth below:

		
	 	     
    (a)  “Adjusted EBITDAR”
    means, with respect to any Award and Fiscal Year, EBITDAR
    for such Fiscal Year, as determined, adjusted (if at all) for
    the purposes of such Award and certified by the Administrator in
    accordance with Section 3.5. If the Administrator
    determines that no adjustment to EBITDAR is advisable, then
    Adjusted EBITDAR shall equal EBITDAR.
    
	 
	 	     
    (b)  “Administrator”
    means the Board and, to the extent, if any, of the powers
    and authority expressly granted to it by the Board, the
    Committee.
    
	 
	 	     
    (c)  “Affiliate” means
    (i) a parent entity that directly, or indirectly through
    one or more intermediary entities, controls the Company or
    (ii) a subsidiary entity that is controlled by the Company
    directly or indirectly through one or more intermediary
    entities. For this purpose, the term “control”
    (including the term “controlled by”) means the
    possession, direct or indirect, of the power to direct or cause
    the direction of the management and policies of the relevant
    entity, whether through the ownership of voting securities, by
    contract or otherwise. Notwithstanding the foregoing, but only
    until the termination of the Governance Agreement among
    Nestlé Holdings, Inc., Nestlé S.A. and the
    Company, dated as of June 26, 2003, the term
    “Affiliate” shall not include Nestlé.
    
	 
	 	     
    (d)  “Annual Exercise
    Period” means, for each Fiscal Year in which one or
    more Awards remain outstanding, a period of sixty (60) days
    commencing on the first business day immediately following
    (i) the date on which the Company files with the United
    States Securities and Exchange Commission an annual report on
    Form 10-K (or other applicable form) containing audited
    financial statements for the Company’s most recently
    completed Fiscal Year, or (ii) if the Company is not
    required to file such annual report, the date of the report of
    the Company’s independent accountants on the financial
    statements of the Company delivered to the Board.
    
	 
	 	     
    (e)  “Award” means an
    award of LTIP Units pursuant to the terms and conditions of the
    Plan and the Participant’s Award Agreement.
    
	 
	 	     
    (f)  “Award Agreement”
    means a written agreement between the Company and a
    Participant setting forth the terms and conditions of an Award
    granted to the Participant. Unless otherwise provided by the
    Administrator at the time an Award is granted, such Award shall
    comply with and be subject to the terms and conditions set forth
    in the form of Long-Term Incentive Award Agreement adopted by
    the Administrator concurrently with its adoption of the Plan and
    as amended from time to time.
    
	 
	 	     
    (g)  “Board” means the
    Board of Directors of the Company.
    

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    (h)  “Code” means the
    Internal Revenue Code of 1986, as amended, and any applicable
    regulations promulgated thereunder.
    
	 
	 	     
    (i)  “Committee” means
    the Compensation Committee or other committee of the Board
    composed solely of two or more “outside directors”
    within the meaning of Section 162(m) duly appointed to
    administer the Plan within the scope of the powers and authority
    expressly granted to the Committee by the Board.
    
	 
	 	     
    (j)  “Company” means
    Dreyer’s Grand Ice Cream Holdings, Inc., a Delaware
    corporation, or any successor corporation thereto.
    
	 
	 	     
    (k)  “Disability”
    means the permanent and total disability of the Participant,
    within the meaning of Section 22(e)(3) of the Code.
    
	 
	 	     
    (l)  “EBITDAR” means,
    with respect to any Fiscal Year, an amount (expressed in United
    States Dollars) equal to the Company’s earnings before
    interest, taxes depreciation, amortization and royalties paid to
    Nestlé, as set forth in the Company’s audited
    financial statements for such Fiscal Year, including the notes
    thereto. For this purpose, amortization shall consist of
    (i) amortization for goodwill and other intangible assets
    and the impairment of such assets, (ii) accretion of the
    Company’s Class A callable puttable common stock,
    (iii) accretion of stock option liability and
    (iv) deferred compensation expense for unvested stock
    options, all of (ii), (iii) and (iv) herein
    representing expenses relating to the recognition of the
    “put” value of US$83 per share of the
    Company’s Class A callable puttable common stock, as
    such items are set forth in such financial statements. For
    purposes of clarification, “earnings” of the Company
    with respect to a Fiscal Year shall take into account
    compensation expense arising in connection with the Plan and
    drayage expense which are properly charged against the
    Company’s earnings for such Fiscal Year in accordance with
    generally accepted accounting principles and not subject to
    adjustments as set out in the provisions of Section 3.5(c).
    
	 
	 	     
    (m)     “EBITDAR
    Multiplier” means 0.0000001, which is the quotient
    determined by dividing 10 by 100,000,000.
    
	 
	 	     
    (n)     “Fiscal
    Year” means the fiscal year of the Company for purposes
    of the Company’s audited financial statements.
    
	 
	 	     
    (o)     “Employee”
    means any person treated as an employee (including an officer or
    a member of the Board who is also treated as an employee) in the
    records of a Participating Company; provided, however, that
    neither service as a member of the Board nor payment of a
    director’s fee shall be sufficient to constitute employment
    for purposes of the Plan.
    
	 
	 	     
    (p)     “Exercise
    Date” means the date of exercise or deemed exercise of
    an Award, as determined pursuant to the terms of the Plan.
    
	 
	 	     
    (q)     “Grant
    Date” means the effective date of the grant of an Award
    to a Participant, as specified by the Administrator.
    
	 
	 	     
    (r)     “LTIP
    Unit” means one bookkeeping unit subject to an Award
    granted to a Participant. An LTIP Unit represents an unfunded
    and unsecured promise by the Company to pay money; it does not
    represent an ownership interest in the capital stock of the
    Company. Each LTIP Unit represents a right to receive from the
    Company in accordance with the terms of the Plan and the
    Participant’s Award Agreement, an amount equal to the
    excess, if any, of the LTIP Unit Value applicable to such Award
    on the Exercise Date over the Strike Price applicable to such
    Award.
    
	 
	 	     
    (s)     “LTIP
    Unit Value” means, as of any given date, for each LTIP
    Unit subject to an Award, an amount (expressed in United States
    Dollars) equal to the product of the Adjusted EBITDAR applicable
    to such Award most recently determined and certified by the
    Administrator on or before such date and the EBITDAR Multiplier;
    subject, however, to any applicable LTIP Unit Value Cap.
    

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    (t)     “LTIP
    Unit Value Cap” means a limit on the LTIP Unit Value
    that will be taken into account for purposes of the settlement
    of Awards granted to Employees in the Fiscal Year ending in
    calendar year 2004, as provided in Section 5.5(b).
    
	 
	 	     
    (u)     “Nestlé”
    means Nestlé S.A. and each affiliate of
    Nestlé S.A.; excluding, however, the Company
    and each subsidiary Affiliate of the Company described in
    Section 2.1(c)(ii).
    
	 
	 	     
    (v)     “Participant”
    means an Employee who has been granted one or more Awards.
    
	 
	 	     
    (w)     “Participating
    Company” means the Company or any Affiliate.
    
	 
	 	     
    (x)     “Retirement”
    means a Participant’s voluntary resignation from Service
    upon conditions specified from time to time by the Administrator.
    
	 
	 	     
    (y)     “Section 162(m)”
    means Section 162(m) of the Code.
    
	 
	 	     
    (z)     “Service”
    means a Participant’s employment or service with a
    Participating Company. A Participant’s Service shall not be
    deemed to have terminated merely because of a change in the
    capacity in which the Participant renders Service or a change in
    the Participating Company for which the Participant renders such
    Service, provided that there is no interruption or termination
    of the Participant’s Service. Furthermore, a
    Participant’s Service shall not be deemed to have
    terminated if the Participant takes any military leave, sick
    leave, or other bona fide leave of absence approved by the
    Company; provided, however, that if any such leave exceeds
    ninety (90) days, on the ninety-first (91st) day of
    such leave the Participant’s Service shall be deemed to
    have terminated unless the Participant’s right to return to
    Service with a Participating Company is guaranteed by statute or
    contract. Notwithstanding the foregoing, unless otherwise
    designated by the Company or required by law, a leave of absence
    shall not be treated as Service for purposes of determining
    vesting under the Participant’s Award Agreement. The
    Participant’s Service shall be deemed to have terminated
    either upon an actual termination of Service or upon the entity
    for which the Participant performs Service ceasing to be a
    Participating Company. Subject to the foregoing, the Company, in
    its discretion, shall determine whether the Participant’s
    Service has terminated and the effective date of such
    termination.
    
	 
	 	     
    (aa)     “Strike
    Price” means, for each LTIP Unit subject to an Award,
    the LTIP Unit Value computed with respect to the Fiscal Year
    most recently ended prior to the Grant Date of such Award;
    subject, however, to the provisions of Section 4.2(e) and
    except as otherwise provided by the Plan.
    
	 
	 	     
    (bb)     “Vesting
    Commencement Date” means, with respect to any Award,
    January 1 of the Fiscal Year containing the Grant Date of
    such Award or another date specified by the Administrator and
    set forth in the Award Agreement evidencing such Award.
    

     
2.2     Construction.
Captions and titles contained herein are for convenience only
and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the
context, the singular shall include the plural and the plural
shall include the singular. Use of the term “or” is
not intended to be exclusive, unless the context clearly
requires otherwise.

     
3.     ADMINISTRATION.

     
3.1     Administration
by the Board and Committee. The Plan shall be administered
by the Board, and, to the extent of the powers and authority
expressly granted to it by the Board from time to time, by the
Committee. As long as the Company is a “publicly held
corporation” within the meaning of Section 162(m), the
Board may delegate to the Committee the power to make the
determinations and certifications described in Section 3.5
and to grant and take any and all other actions with respect to
any Award which might reasonably be anticipated to result in the
payment of employee remuneration that would otherwise exceed the
limit on employee remuneration deductible for income tax
purposes pursuant to Section 162(m); provided, however,
that, if at any time no such committee has been so appointed or
the composition of any such committee does not satisfy the
requirements of Section 162(m), the Board shall exercise
all of the powers granted to the Administrator herein. In any
event, subject to the provisions of this Section 3.1 and
Section 3.2, the Board may in its discretion exercise any
or all of such powers. All questions of interpretation of the
Plan or

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of any Award shall be determined by the Board,
and such determinations shall be final and binding upon all
persons having an interest in the Plan or such Award.

     
3.2     Procedure of
the Administrator.

     
(a)     Board.
For the purposes of Plan administration (including, without
limitation, amendment of the Plan and appointment of the
Committee), a majority of the members of the Board shall
constitute a quorum, and all decisions and determinations of the
Board shall be made at any meeting of the Board at which a
quorum is present by a vote or decision of a majority of all of
the members of the Board; provided, however, that any decision
or determination reduced to writing and signed by all members of
the Board shall be as fully effective as if it had been made by
a unanimous vote or decision at a meeting duly called and held.

     
(b)     Committee.
Each member of the Committee shall be appointed by and shall
serve at the pleasure of the Board. The Board shall have the
sole continuing authority to appoint members of the Committee.
The Committee shall elect one of its members as its chairman and
shall hold its meetings at such times and places as it may
determine. For the purposes of Plan administration, a quorum
shall require all of the members of the Committee. All decisions
and determinations of the Committee shall be made by the
unanimous vote or decision of its members present at a meeting
at which a quorum is present; provided, however, that any
decision or determination reduced to writing and signed by all
members of the Committee shall be as fully effective as if it
had been made by a unanimous vote or decision at a meeting duly
called and held. The Committee may appoint a secretary (who need
not be a member of the Committee) who shall keep minutes of its
meetings. The Committee may make any rules and regulations for
the conduct of its business that are not inconsistent with the
express provisions of the Plan, the bylaws or certificate of
incorporation of the Company or any resolutions of the Board.
The Board, in its discretion, may ratify any action taken by the
Committee.

     
3.3     Authority of
Officers. Any officer of the Company shall have the
authority to act on behalf of the Company with respect to any
matter, right, obligation, determination or election which is
the responsibility of or which is allocated to the Company
herein, provided the officer has apparent authority with respect
to such matter, right, obligation, determination or election.

     
3.4     Powers of the
Administrator. In addition to any other powers set forth in
the Plan and subject to the provisions of the Plan, the
Administrator shall have the full and final power and authority
(but in the case of the Committee, only to the extent of the
powers and authority expressly granted to the Committee by the
Board), in its discretion:

		
	 	     
    (a)     to determine the
    time or times when, and the Employees to whom, Awards are
    granted;
    
	 
	 	     
    (b)     to determine the
    number of LTIP Units to be subject to each Award;
    
	 
	 	     
    (c)     to determine the
    EBITDAR, Adjusted EBITDAR, LTIP Unit Value and Strike Price
    applicable to each Award;
    
	 
	 	     
    (d)     to determine the
    terms, conditions and restrictions applicable to each Award
    (which need not be identical), including, without limitation,
    (i) the timing, terms and conditions of vesting of the
    Award, (ii) the time or times, and the conditions subject
    to which, the Award may be exercised, (iii) the method for
    satisfaction of any tax withholding obligation arising in
    connection with the Award, (iv) the timing, terms and
    conditions, if any, under which the payment of amounts otherwise
    due upon settlement of the Award may be deferred (v) the
    time of the expiration of the Award, (vi) the effect of the
    Participant’s termination of Service on any of the
    foregoing, and (vii) all other terms, conditions and
    restrictions applicable to any Award not inconsistent with the
    terms of the Plan;
    
	 
	 	     
    (e)     to approve one
    or more forms of Award Agreement;
    
	 
	 	     
    (f)     to amend,
    modify, extend, cancel, renew, reprice or otherwise adjust the
    Strike Price of, or grant a new Award in substitution for, any
    Award;
    
	 
	 	     
    (g)     to waive any
    restrictions or conditions applicable to any Award;
    

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    (h)     to accelerate,
    continue, extend or defer the exercisability or vesting of any
    Award, including with respect to the period following a
    Participant’s termination of Service;
    
	 
	 	     
    (i)     to prescribe,
    amend or rescind rules, guidelines and policies relating to the
    Plan, or to adopt sub-plans or supplements to, or alternative
    versions of, the Plan, including, without limitation, as the
    Administrator deems necessary or desirable to comply with the
    laws of or to accommodate the laws, regulations, tax or
    accounting effectiveness, accounting principles or custom of,
    foreign jurisdictions whose citizens may be granted
    Awards; and
    
	 
	 	     
    (j)     to correct any
    defect, supply any omission or reconcile any inconsistency in
    the Plan or any Award Agreement and to make all other
    determinations and take such other actions with respect to the
    Plan or any Award as the Administrator may deem advisable to the
    extent not inconsistent with the provisions of the Plan or
    applicable law.
    

     
3.5     Determination
and Certification by the Administrator of EBITDAR, Adjusted
EBITDAR and LTIP Unit Value.

     
(a)     In
General. During each Fiscal Year, commencing with the Fiscal
Year including the Effective Date and continuing for so long as
one or more Awards remain outstanding, the Administrator shall
determine and set forth in a written certification with respect
to the immediately preceding Fiscal Year: (i) EBITDAR,
(ii) the Adjusted EBITDAR applicable to each Award and
(iii) the LTIP Unit Value applicable to each Award.

     
(b)     Time of
Determination and Certification. Unless otherwise permitted
in compliance with the requirements under Section 162(m)
with respect to “performance-based compensation,” the
Administrator shall make such determination and certification as
soon as practicable following the completion of the audit of the
Company’s financial statements for the immediately
preceding Fiscal Year, but in no event later than the first to
occur of (i) the date ninety (90) days after the
commencement of the current Fiscal Year or (ii) the date on
which 25% of the Service to which the Award relates has elapsed,
and, in any event, at a time when EBITDAR, Adjusted EBITDAR and
the LTIP Unit Value for the current Fiscal Year remain
substantially uncertain.

     
(c)     Adjusted
EBITDAR. In determining the Adjusted EBITDAR with respect to
any Award and Fiscal Year, the Administrator shall, in the good
faith exercise of its discretion and applying consistent
standards from Fiscal Year to Fiscal Year, adjust EBITDAR for:

		
	 	     
    (i)     Merger
    Related Costs: to exclude the effect (whether positive or
    negative) of any material costs arising from the merger and
    subsequent integration of the Company and Nestlé,
    including, without limitation, (1) severance and retention
    expenses, (2) merger transaction expenses,
    (3) in-process research and development write-downs and
    (4) loss on divestitures, as such items are set forth in
    the Company’s audited financial statements for such Fiscal
    Year, including the notes thereto; and
    
	 
	 	     
    (ii)     Changes in
    Financial Reporting Principles: to exclude the effect
    (whether positive or negative) of any material change in
    generally accepted accounting principles occurring following the
    Grant Date of the Award; and
    
	 
	 	     
    (iii)     Structural
    Changes in the Business: to exclude the effect (whether
    positive or negative) of any material structural change in the
    business of the Company, whether by (1) merger,
    consolidation, reorganization or recapitalization of the Company
    or any Affiliate, (2) acquisition, divestiture, split-up,
    split-off or spin-off of an Affiliate or other business unit of
    the Company or of an Affiliate, and (3) any other material
    structural change that would, absent an appropriate adjustment
    to EBITDAR, result in an inconsistent basis for the
    determination from Fiscal Year to Fiscal Year of the LTIP Unit
    Value applicable to an Award.
    

Each such adjustment, if any, shall be made
solely for the purpose of providing a consistent basis from
Fiscal Year to Fiscal Year for the determination of the LTIP
Unit Value applicable to an Award in order to prevent the
dilution or enlargement of the Participant’s rights with
respect to such Award. If the Administrator

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determines that no adjustment to EBITDAR is
advisable with respect to an Award, then the Adjusted EBITDAR
applicable to such Award shall equal EBITDAR.

     
3.6     Indemnification.
In addition to such other rights of indemnification as they may
have as members of the Board or the Committee or as officers or
employees of a Participating Company, members of the Board or
the Committee and any officers or employees of a Participating
Company to whom authority to act for the Board, the Committee or
the Company is delegated shall be indemnified by the Company
against all reasonable expenses, including attorneys’ fees,
actually and necessarily incurred in connection with the defense
of any action, suit or proceeding, or in connection with any
appeal therein, to which they or any of them may be a party by
reason of any action taken or failure to act under or in
connection with the Plan, or any right granted hereunder, and
against all amounts paid by them in settlement thereof (provided
such settlement is approved by independent legal counsel
selected by the Company) or paid by them in satisfaction of a
judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such
action, suit or proceeding that such person is liable for gross
negligence, bad faith or intentional misconduct in duties;
provided, however, that within sixty (60) days after the
institution of such action, suit or proceeding, such person
shall offer to the Company, in writing, the opportunity at its
own expense to handle and defend the same.

     
4.     ELIGIBILITY
AND GRANT OF AWARDS.

     
4.1     Persons
Eligible. Awards may be granted only to Employees. For
purposes of the foregoing sentence, “Employees,” shall
include prospective Employees to whom Awards are granted in
connection with written offers of employment with a
Participating Company; provided, however, that no Award shall
vest or become exercisable prior to the date on which such
person commences Service.

     
4.2     Grant of
Awards. Awards may be granted to such Employees at such time
or times and for such numbers of LTIP Units as determined by the
Administrator in its discretion. No Participant shall be
required to pay any monetary consideration as a condition to the
receipt of an Award. Each Participant granted an Award shall be
notified of such grant in writing as soon as practicable
following the Grant Date. Except as otherwise determined by the
Administrator, Awards shall be granted in each Fiscal Year which
commences prior to the termination of the Plan on a date (the
“Annual Grant Date”) as soon as practicable
following the completion of the audit of the Company’s
financial statements for the immediately preceding Fiscal Year
(and in any event no later than the date determined under
Section 3.5(b)) in conformance with the following:

		
	 	     
    (a)     Base Salary
    Multiple Awards. Awards shall be granted to each member of
    the classes of Employees set forth in the following table for a
    number of LTIP Units determined by dividing a multiple (as set
    forth in such table) of the Employee’s then current base
    salary by the applicable Strike Price:
    

	 	 	 	 	 
	Employee		Base Salary Multiple
	
		

	
    
    Chief Executive Officer
    

    	 	 	3.50	 
	
    
    Executive Vice Presidents
    

    	 	 	2.25	 
	
    
    Executive Staff
    

    	 	 	1.25	 
	
    
    Management Staff
    

    	 	 	0.75	 

		
	 	     
    (b)     Front Line
    Award Programs. Awards for 1,000 LTIP Units shall be granted
    to each participant in the “front line award programs.”
    
	 
	 	     
    (c)     Grant of
    Awards to Newly Hired and Promoted Employees.
    

		
	 	     
    (i)     Notwithstanding
    the foregoing, each Employee within a class of Employees listed
    in Section 4.2(a) (except for Management Staff, unless
    specifically approved by the Administrator) whose Service
    commences after the first day but prior to the last day of a
    Fiscal Year shall be granted for such Fiscal Year, on the Annual
    Grant Date for such Fiscal Year or as soon as practicable
    thereafter following such Employee’s commencement of
    Service, an initial Award for a number of LTIP Units equal to
    the product of (1) the number of LTIP Units determined in
    accordance with Section 4.2(a) and (2) a fraction, the
    numerator of which is the number of days
    

6

 

		
	 	
    from and including the date on which the
    Employee’s Service commenced through the end of such Fiscal
    Year and the denominator of which is 365.
    
	 
	 	     
    (ii)     Notwithstanding
    the foregoing, each Participant promoted after the first day but
    prior to the last day of a Fiscal Year to a position for which a
    larger Award would be determined pursuant to the table set forth
    in Section 4.2(a) shall be granted for such Fiscal Year, on
    the Annual Grant Date for such Fiscal Year or as soon as
    practicable thereafter following the Participant’s
    commencement of Service in the new position, in addition to an
    Award determined pursuant to Section 4.2(a) with respect to
    the Participant’s prior position, an Award for a number of
    LTIP Units equal to the product of (1) the difference
    between the number of LTIP Units determined pursuant to
    Section 4.2(a) in the Participant’s new position and
    the number of LTIP Units determined pursuant to
    Section 4.2(a) in the Participant’s prior position and
    (2) a fraction, the numerator of which is the number of
    days from and including the effective date of the
    Participant’s promotion through the end of such Fiscal Year
    and the denominator of which is 365.
    

		
	 	     
    (d)     Awards To Be
    Granted in Fiscal Year 2004. Notwithstanding the foregoing,
    each Employee who is, on or after the first Grant Date under the
    Plan occurring in Fiscal Year 2004, a member of a class of
    Employees listed in Section 4.2(a) (a “2004
    Eligible Employee”) shall be granted one or more Awards
    in Fiscal Year 2004 pursuant to one (and only one) of the
    following Subsections (i), (ii), (iii), (iv) or (v), as
    applicable:
    

		
	 	     
    (i)     2004 Eligible
    Employees Whose Service Commenced On or Before January 1,
    2003. Each 2004 Eligible Employee whose Service commenced on
    or before January 1, 2003 (other than any such Employee
    described in any other Subsection of this Section 4.2(d))
    shall be granted, as soon as practicable following the Effective
    Date, two Awards. Each such Award shall be for the number of
    LTIP Units determined in accordance with Section 4.2(a).
    Unless earlier terminated in accordance with the provisions of
    the Plan or the Award Agreement evidencing such Award and
    subject to Section 5.3(b), the first such Award shall
    terminate on the date occurring nine (9) years after the
    Grant Date of that Award and the second such Award shall
    terminate on the date occurring ten (10) years after the
    Grant Date of that Award.
    
	 
	 	     
    (ii)  2004 Eligible Employees Whose
    Service Commenced After January 1, 2003 But Before
    January 1, 2004. Each 2004 Eligible Employee whose
    Service commenced after January 1, 2003 but before
    January 1, 2004 (other than any such Employee described in
    any other Subsection of this Section 4.2(d)) shall be
    granted, as soon as practicable following the Effective Date,
    two Awards. The first such Award shall be for the number of LTIP
    Units determined in accordance with Section 4.2(c)(i),
    taking into account for this purpose the period of such
    Employee’s Service during Fiscal Year 2003. The second such
    Award shall be for the number of LTIP Units determined in
    accordance with Section 4.2(a). Unless earlier terminated
    in accordance with the provisions of the Plan or the Award
    Agreement evidencing such Award and subject to
    Section 5.3(b), the first such Award shall terminate on the
    date occurring nine (9) years after the Grant Date of that
    Award and the second such Award shall terminate on the date
    occurring ten (10) years after the Grant Date of that Award.
    
	 
	 	     
    (iii)  2004 Eligible Employees Whose
    Service Commenced on or After January 1, 2004. Each
    2004 Eligible Employee whose Service commenced on or after
    January 1, 2004 but prior to the last day of Fiscal Year
    2004 (other than any such Employee described in any other
    Subsection of this Section 4.2(d)) shall be granted, as
    soon as practicable following the Effective Date or as soon as
    practicable thereafter following such Employee’s
    commencement of Service, an Award for the number of LTIP Units
    determined in accordance with Section 4.2(a) or
    Section 4.2(c)(i), whichever is applicable. Unless earlier
    terminated in accordance with the provisions of the Plan or the
    Award Agreement evidencing such Award and subject to
    Section 5.3(b), such Award shall terminate on the date
    occurring ten (10) years after the Grant Date of the Award.
    
	 
	 	     
    (iv)  2004 Eligible Employees
    Promoted During Fiscal Year 2003. Each 2004 Eligible
    Employee promoted after January 1, 2003 but before
    January 1, 2004 to a position for which a larger
    

7

 

		
	 	
    Award would be determined pursuant to
    Section 4.2(a) shall be granted, as soon as practicable
    following the Effective Date: (1) an Award for the number
    of LTIP Units determined in accordance with Section 4.2(a)
    or Section 4.2(c)(i), whichever is applicable, with respect
    to the Employee’s prior position during Fiscal Year 2003;
    (2) an Award for the number of LTIP Units determined in
    accordance with Section 4.2(c)(ii), taking into account for
    this purpose the period of such Employee’s Service during
    Fiscal Year 2003 in the new position following the date of
    promotion in Fiscal Year 2003; and (3) an Award for the
    number of LTIP Units determined in accordance with
    Section 4.2(a) with respect to the Employee’s new
    position. Unless earlier terminated in accordance with the
    provisions of the Plan or the Award Agreement evidencing such
    Award and subject to Section 5.3(b), each Award described
    in clause (1) or (2) above shall terminate on the date
    occurring nine (9) years after the Grant Date of that
    Award, and the Award described in clause (3) above shall
    terminate on the date occurring ten (10) years after the
    Grant Date of that Award.
    
	 
	 	     
    (v)  2004 Eligible Employees
    Promoted During Fiscal Year 2004. Each 2004 Eligible
    Employee promoted on or after January 1, 2004 but prior to
    the last day of Fiscal Year 2004 to a position for which a
    larger Award would be determined pursuant to Section 4.2(a)
    shall be granted, as soon as practicable following the Effective
    Date or as soon as practicable thereafter following the
    Participant’s commencement of Service in the new position,
    in addition to one or more Awards determined pursuant to
    Section 4.2(d)(i), Section 4.2(d)(ii) or
    Section 4.2(d)(iii) whichever is applicable with respect to
    the Participant’s prior position, an Award for the number
    of LTIP Units determined in accordance with
    Section 4.2(c)(ii), taking into account for this purpose
    the period of such Employee’s Service in the new position
    following the date of promotion in Fiscal Year 2004. Unless
    earlier terminated in accordance with the provisions of the Plan
    or the Award Agreement evidencing such Award and subject to
    Section 5.3(b), such additional Award shall terminate on
    the date occurring ten (10) years after the Grant Date of the
    Award.
    

		
	 	     
    (e)  Initial Strike Price.
    Notwithstanding any other provision of the Plan to the contrary,
    each Award shall be granted with a Strike Price equal to
    US $20.50 (i.e., a deemed Adjusted EBITDAR of $205,000,000
    (subject to adjustment as provided in Section 3.5)
    multiplied by the EBITDAR Multiplier) until such time as the
    Administrator determines and certifies an Adjusted EBITDAR for
    the preceding Fiscal Year which exceeds $205,000,000.
    

     
4.3     Participation.
Awards are granted solely at the discretion of the
Administrator. Eligible persons may be granted more than one
Award. However, eligibility in accordance with this Section
shall not entitle any person to be granted an Award, or, having
been granted an Award, to be granted an additional Award.

     
4.4     Section 162(m)
Limit. Notwithstanding any other provision of the Plan to
the contrary, no Employee shall be granted within any Fiscal
Year one or more Awards which in the aggregate are for more than
1,200,000 LTIP Units. An Award which is canceled or as to which
the Strike Price is reduced to reflect a reduction in EBITDAR in
the same Fiscal Year in which it was granted shall continue to
be counted against such limit for such Fiscal Year.

     
5.  TERMS AND CONDITIONS OF
AWARDS.

     
Awards shall be evidenced by Award Agreements
specifying the number of LTIP Units covered thereby, in such
form as the Administrator shall from time to time establish. No
Award or purported Award shall be a valid and binding obligation
of the Company unless evidenced by a fully executed Award
Agreement. Award Agreements may incorporate all or any of the
terms of the Plan by reference and shall comply with and be
subject to the following terms and conditions, subject, however,
to the provisions of any employment agreement between the
Company and a Participant intended to supersede any inconsistent
term or condition set forth in this Plan:

     
5.1     Term of
Awards. Except as otherwise provided by Section 4.2(d)
or Section 5.3(b), no Award shall be exercisable after the
expiration of ten (10) years following the Grant Date of such
Award, and, unless otherwise specified by the Administrator in
the grant of an Award, each Award granted hereunder shall

8

 

terminate ten (10) years after the Grant
Date of the Award, unless earlier terminated in accordance with
the provisions of the Plan or the Award Agreement evidencing
such Award.

     
5.2     Vesting of
Awards. Each Award shall vest as follows:

		
	 	     
    (a)     Regular
    Vesting. Provided that the Participant’s Service has
    not terminated prior to the applicable vesting date:
    

		
	 	     
    (i)     forty percent
    (40%) of the LTIP Units subject to the Award shall vest on the
    second anniversary of the Vesting Commencement Date; and
    
	 
	 	     
    (ii)     twenty percent
    (20%) of the LTIP Units subject to the Award shall vest on each
    of the third, fourth and fifth anniversaries of the Vesting
    Commencement Date.
    

		
	 	     
    (b) Vesting of Awards Granted in Fiscal
    Year 2004. Notwithstanding the foregoing, each Award granted
    in Fiscal 2004 shall vest as follows, provided that the
    Participant’s Service has not terminated prior to the
    applicable vesting date:
    

		
	 	     
    (i)     Each Award
    granted pursuant to Section 4.2(d) which has a termination
    date nine (9) years after the Grant Date of the Award shall
    vest at the rate of forty percent (40%) of the LTIP Units
    subject to the Award on January 1, 2005 and twenty percent
    (20%) of the LTIP Units subject to the Award on each of the
    first, second and third anniversaries of January 1, 2005.
    
	 
	 	     
    (ii)     Each Award
    granted pursuant to Section 4.2(d) which has a termination
    date ten (10) years after the Grant Date of the Award shall
    vest at the rate of forty percent (40%) of the LTIP Units
    subject to the Award on the second anniversary of the Vesting
    Commencement Date and twenty percent (20%) of the LTIP Units
    subject to the Award on each of the third, fourth and fifth
    anniversaries of the Vesting Commencement Date.
    

		
	 	     
    (c)     Accelerated
    Vesting. Notwithstanding the foregoing, an Award shall vest
    in full upon (i) the Participant’s death, Disability
    or Retirement, (ii) such event or events as may be provided
    in an employment agreement between the Company and the
    Participant intended to be effective with respect to Awards
    granted pursuant to the Plan or (iii) upon the early
    termination of the Award as provided in Section 5.7(b).
    

     
5.3     Exercisability
of Awards. Subject to Section 5.6, each Award shall be
exercisable as follows:

		
	 	     
    (a)     Voluntary
    Exercise. At any time during each Annual Exercise Period
    following the grant of an Award to a Participant or as provided
    by Section 5.6(b) or Section 5.6(c), but in any event
    prior to the expiration or termination of the Award, the
    Participant may elect to exercise the Award for any or all of
    the vested but previously unexercised LTIP Units subject to such
    Award. The Company shall promptly notify the Participants of the
    commencement of each Annual Exercise Period.
    
	 
	 	     
    (b)     Automatic
    Exercise Upon Award Termination. The vested portion of any
    Award that would otherwise expire or terminate unexercised shall
    automatically be deemed exercised on an Exercise Date determined
    as follows, provided that such exercise would result in a
    payment to the Participant:
    

		
	 	     
    (i)     If the date of
    such expiration or termination in a given Fiscal Year would
    otherwise occur prior to the commencement of the Annual Exercise
    Period for such Fiscal Year, then the date of expiration or
    termination and deemed exercise of the Award shall be deferred
    until the first day of such Annual Exercise Period, and the
    applicable LTIP Unit Value shall be the LTIP Unit Value in
    effect for such Annual Exercise Period.
    
	 
	 	     
    (ii)     If the date of
    such expiration or termination occurs during an Annual Exercise
    Period, then the date of the deemed exercise shall be the date
    of such expiration or termination, and the applicable LTIP Unit
    Value shall be the LTIP Unit Value in effect for such Annual
    Exercise Period.
    
	 
	 	     
    (iii)     If the date of
    such expiration or termination in a given Fiscal Year occurs
    following the completion of the Annual Exercise Period for such
    Fiscal Year, then the date of the deemed
    

9

 

		
	 	
    exercise shall be the date of such expiration or
    termination, and the applicable LTIP Unit Value shall be the
    LTIP Unit Value in effect for most recently completed Annual
    Exercise Period.
    

		
	 	     
    (c)     Automatic
    Exercise Upon Reaching LTIP Unit Value Cap. If the LTIP Unit
    Value with respect to an Award for any Annual Exercise Period
    equals or exceeds a LTIP Unit Value Cap to which such Award is
    subject, then the Award shall, to the extent of the LTIP Units
    subject to the Award which are then vested, automatically be
    deemed exercised upon the commencement of such Annual Exercise
    Period. Any additional LTIP Units subject to the Award which
    vest prior the termination of such Annual Exercise Period shall
    automatically be deemed exercised on their vesting date.
    

     
5.4     Method of
Voluntary Exercise of Awards. Voluntary exercise of an Award
pursuant to Section 5.2(a) shall be by written notice to
the Company stating the Participant’s election to exercise
the Award and the number of vested LTIP Units for which the
Award is being exercised. The written notice must be in such
form as required by the Company, signed by the Participant and
delivered by: (a) hand delivery, (b) nationally
recognized overnight courier, (c) postage prepaid certified
or registered mail, return receipt requested, (d) facsimile
transmission with verification of receipt or (e) by means
of electronic notice in a form authorized by the Company to the
Chief Financial Officer of the Company, or such other authorized
representative as shall be designated from time to time to
receive such notices. The written notice must be received by the
representative of the Company prior to the expiration or
termination of the Award.

     
5.5     Settlement
Upon Exercise of Awards.

     
(a)     In
General. On the Exercise Date with respect to an Award, the
Participant shall become entitled to receive an amount equal to
(a) the excess, if any, of the LTIP Unit Value applicable
to such Award on the Exercise Date over the Strike Price of the
Award, multiplied by (b) the number of vested LTIP Units
exercised, less applicable withholding taxes and authorized
payroll deductions. Within thirty (30) days following the
Exercise Date, the Company shall pay by check to the Participant
the amount due the Participant pursuant to this Section.
Notwithstanding the foregoing, a Participant who is eligible to
participate in the Dreyer’s Grand Ice Cream, Inc.
Deferred Compensation Plan (or any successor thereto) may elect
in accordance with the terms of such plan to defer receipt of
all or any portion of the amounts payable to the Participant
pursuant to this Plan.

     
(b)  Awards Granted in Fiscal Year
2004. Notwithstanding the foregoing, the LTIP Unit Value
taken into account in the settlement of Awards granted to
Participants in Fiscal Year 2004 shall be subject to an LTIP
Unit Value Cap of US $42.00 per LTIP Unit (i.e., an
amount equal to the product of an Adjusted EBITDAR of
US $420,000,000 (subject to adjustment as provided in
Section 3.5) and the EBITDAR Multiplier).

     
5.6     Effect of
Termination of Service. The effect of a Participant’s
termination of Service prior to the exercise in full of the
Award shall be as follows:

		
	 	     
    (a)  Forfeiture of Unvested LTIP
    Units. Subject to any acceleration of vesting of the
    Participant’s Award pursuant to Section 5.2(c), if a
    Participant’s Service terminates for any reason, all of the
    LTIP Units subject to the Award which have not vested as of the
    date of such termination of Service shall be forfeited and
    automatically canceled effective as of such date.
    
	 
	 	     
    (b)  Death, Disability or
    Retirement. If a Participant’s Service terminates
    because of the death, Disability or Retirement of the
    Participant, the Participant’s Award may be exercised in
    full or in part by the Participant (or the Participant’s
    legal representative or other person who acquired the right to
    exercise the Award by reason of the Participant’s death) at
    any time within twenty-four (24) months of the date of such
    termination of Service, provided that the exercise election is
    made prior to the expiration or termination of the Award. Any
    vested portion of such Award remaining unexercised as of the
    expiration or termination of the Award (or, if earlier, the
    expiration of such twenty-four month period) shall automatically
    be deemed exercised as provided in Section 5.3(b).
    
	 
	 	     
    (c)  Other Termination of
    Service. If a Participant’s Service terminates for any
    reason except the death, Disability or Retirement of the
    Participant, the Participant’s Award, to the extent vested
    but
    

10

 

		
	 	
    unexercised on the date on which the
    Participant’s Service terminated, may be exercised by the
    Participant at any time within three (3) months of the date
    of such termination of Service, provided that the exercise
    election is made prior to the expiration or termination of the
    Award. Any vested portion of such Award remaining unexercised as
    of the expiration or termination of the Award (or, if earlier,
    the expiration of such three month period) shall automatically
    be deemed exercised as provided in Section 5.3(b).
    

     
5.7     Expiration or
Termination of Awards.

     
(a)  Normal Expiration or
Termination. A Participant’s Award shall expire and
cease to be exercisable on the first to occur of (a) the
expiration of the Award’s term as established by the
Administrator pursuant to Section 5.1 or
Section 4.2(d) and set forth in the Award Agreement
evidencing such Award, (b) the applicable date as provided
in Section 5.6 upon termination of the Participant’s
Service or (c) an early termination date as provided in
Section 5.7(b).

     
(b)  Early Termination.
Notwithstanding any provision of the Plan to the contrary, the
Administrator may, in its sole and absolute discretion, elect at
any time to terminate the Plan and all (but not less than all)
Awards then outstanding. In such event, (i) the vesting of
each Award then outstanding shall be accelerated in full in
accordance with Section 5.2(c), (ii) each Award shall
automatically be deemed exercised in connection with such
termination on an Exercise Date determined in accordance with
Section 5.3(b) and (iii) each Participant shall become
entitled to receive payment in accordance with Section 5.5,
provided that the amount the Participant shall be entitled to
receive for each LTIP Unit subject to the Award (less applicable
withholding taxes and authorized payroll deductions) shall be:
(1) for Awards granted during Fiscal Year 2004, the lesser
of (A) the excess, if any, of one hundred twenty percent
(120%) of the LTIP Unit Value otherwise applicable to the
Participant’s Award over the Strike Price of the Award or
(B) the excess, if any, of the LTIP Unit Value Cap
applicable to the Participant’s Award over the Strike Price
of the Award; and (2) for Awards granted during subsequent
Fiscal Years, the excess, if any, of one hundred twenty percent
(120%) of the LTIP Unit Value otherwise applicable to the
Participant’s Award over the Strike Price of the Award.

     
5.8     Tax
Withholding. The Company shall have the right to withhold
from payroll and from any and all amounts payable to a
Participant pursuant to the Plan, or require the Participant to
remit to the Company, any and all federal, state, local and
foreign taxes, if any, required by law to be withheld by a
Participating Company with respect to any Award granted to such
Participant.

     
5.9     Nontransferability
of Awards. Prior to payment in settlement of the Award, an
Award granted to a Participant shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the
Participant or the Participant’s beneficiary, except
transfer by will or by the laws of descent and distribution.

     
6.  STANDARD FORM OF AWARD
AGREEMENT.

     
6.1     Award
Agreement. Each Award shall comply with and be subject to
the terms and conditions set forth in the form of Award
Agreement approved by the Administrator concurrently with its
adoption of the Plan and as amended from time to time by the
Administrator.

     
6.2     Authority to
Vary Terms. The Administrator shall have the authority from
time to time to vary the terms of any standard form of Award
Agreement described in this Section 6 either in connection
with the grant or amendment of an individual Award or in
connection with the authorization of a new standard form or
forms; provided, however, that the terms and conditions of any
such new, revised or amended standard form or forms of Award
Agreement are not inconsistent with the terms of the Plan.

     
7.     MISCELLANEOUS
PROVISIONS.

     
7.1     Beneficiary
Designation. Each Participant may name, from time to time, a
beneficiary to whom any benefit under the Plan is to be paid in
case of such Participant’s death before he or she receives
any or all of such benefit. If a married Participant designates
a beneficiary other than the Participant’s spouse, the
effectiveness of such designation may be subject to the consent
of the Participant’s spouse. Each designation

11

 

will revoke all prior designations by the same
Participant, shall be in a form prescribed by the Company, and
will be effective only when filed by the Participant in writing
with the Company during the Participant’s lifetime. In the
absence of any such designation, benefits remaining unpaid at
the Participant’s death shall be paid to his or her estate.

     
7.2     Rights as
Employees. No Employee or other person shall have any claim
or right to be granted an Award. Nothing in the Plan or any
Award Agreement shall confer upon any Participant any right to
continue as an Employee or in any other capacity, or interfere
in any way with any right of a Participating Company to
terminate the Participant’s Service at any time.

     
7.3     No Rights as
a Stockholder. Nothing in the Plan or any Award Agreement
shall confer upon any Participant any rights as a stockholder of
the Company.

     
7.4     Unfunded
Obligation. Any amounts payable to Participants pursuant to
the Plan shall be unfunded obligations for all purposes,
including, without limitation, Title I of the Employee
Retirement Income Security Act of 1974. No Participating Company
shall be required to segregate any monies from its general
funds, or to create any trusts, or establish any special
accounts with respect to such obligations. The Company shall
retain at all times beneficial ownership of any investments,
including trust investments, which the Company may make to
fulfill its payment obligations hereunder. Any investments or
the creation or maintenance of any trust or any Participant
account shall not create or constitute a trust or fiduciary
relationship between the Administrator or any Participating
Company and a Participant, or otherwise create any vested or
beneficial interest in any Participant or the Participant’s
creditors in any assets of any Participating Company. The
Participants shall have no claim against any Participating
Company for any changes in the value of any assets which may be
invested or reinvested by the Company with respect to the Plan.

     
7.5     Termination
or Amendment of the Plan or any Award. The Board may
terminate or amend the Plan or any Award Agreement at any time.
However, no termination or amendment of the Plan shall affect
any then outstanding Award unless expressly provided by the
Board. In any event, except as provided in Section 5.7(b),
no termination or amendment of the Plan or any Award Agreement
may adversely affect any then outstanding Award without the
consent of the Participant, unless such termination or amendment
is necessary to comply with any applicable law, regulation or
rule.

     
7.6     Binding
Effect. Subject to the restrictions on transfer set forth
herein, the terms of the Plan and a Participant’s Award
Agreement shall inure to the benefit of and be binding upon the
Company, the Participant and their respective heirs, executors,
administrators, successors and assigns. The terms of the Plan
and a Participant’s Award Agreement shall supersede all
prior arrangements, whether written or oral, and understandings
regarding the subject matter of the Plan and such Award
Agreement.

     
7.7     Notices.
Except as otherwise provided in Section 5.4, any notice
required or permitted under the Plan or any Award Agreement
shall be given in writing and delivered to the other party at
the address set forth below that party’s signature on the
Award Agreement (or such other address as the party may
designate in writing from time to time to the other party) by
(a) hand delivery, (b) nationally recognized overnight
courier, (c) postage prepaid certified or registered mail,
return receipt requested, or (d) facsimile transmission
with verification of receipt, and will be deemed to be effective
the day of delivery by hand or overnight courier, the day of
transmission if sent by facsimile, or three days after mailing
if sent by mail.

     
7.8     Choice of
Law. The validity, interpretation, construction and
performance of the Plan and each Award Agreement shall be
governed by the laws of the State of California.

12

 

     
IN WITNESS WHEREOF, the undersigned Secretary of
the Company certifies that the foregoing sets forth the
Dreyer’s Grand Ice Cream Holdings, Inc. 2004 Long-Term
Incentive Plan as duly adopted by the Board on March 9,
2004.

		
	 	
    /s/ Mark LeHocky
    
	 	
    

	 	
    Secretary
    

13

 

DREYER’S GRAND ICE CREAM HOLDINGS, INC.

LONG-TERM INCENTIVE AWARD AGREEMENT

     You have been granted an award of LTIP Units (the “Award”) upon the terms
and conditions contained in this Long-Term Incentive Award Agreement (the
"Agreement”) and the Dreyer’s Grand Ice Cream Holdings, Inc. 2004 Long-Term
Incentive Plan (the “Plan”), the provisions of which are incorporated into this
Agreement.

	 	 	 	 	 
	Participant:

	 	[Name]	 	 
	
	
	
	

	Grant Date:

	 	[                   ]	 	 
	
	
	
	

	Number of LTIP Units:

	 	[                   ]	 	 
	
	
	
	

	Strike Price:

	 	[$                   ]	 	 
	
	
	
	

	Vesting Commencement Date:

	 	[                   ]	 	 
	
	
	
	

	Vested LTIP Units:	 	Except as provided by the Plan or the
Governing Employment Agreement, if any, the
number of Vested LTIP Units (disregarding
any resulting fraction) as of any date while
you remain in Service is determined by
multiplying the Number of LTIP Units by the
applicable Cumulative Vested Percentage
determined as follows:
	
	
	
	

	

	 	Vesting Commencement

Date Anniversary
	 	Cumulative

Vested Percentage
	

	 	
 
	 	
 
	

	 	Second

Third

Fourth

Fifth
	 	40%

60%

80%

100%
	

	 	
 
	 	
 
	
	
	
	

	Expiration Date:	 	[10th anniversary of Grant Date]
	
	
	
	

	Governing Employment Agreement:	 	[Identify governing employment agreement or
state “None.”]

     1.       Definitions. Unless otherwise defined by this Agreement, capitalized
terms have the meanings assigned by the Plan.

     2.       Right to Exercise Award. Except as otherwise provided by the Plan, you
may exercise the Award, prior to its expiration or termination, during each
Annual Exercise Period for a number of LTIP Units not exceeding the number of
Vested LTIP Units, less the number of Vested LTIP Units for which you
previously exercised the Award. The Company will notify you of the
commencement of each Annual Exercise Period.

 

 

     3.       Method of Voluntary Exercise. To exercise the Award, you must
complete, sign, date and deliver an exercise notice in the form attached to
this Agreement to the Chief Financial Officer or other designated
representative of the Company by one of the following methods: (a) hand
delivery, (b) nationally recognized overnight courier, (c) postage prepaid
certified or registered mail, return receipt requested, (d) facsimile
transmission with verification of receipt or (e) by means of electronic notice
in a form authorized by the Company. To be effective, your exercise notice
must be received by the representative of the Company prior to the expiration
or termination of the Award.

     4.       Automatic Exercise. The Award will be exercised automatically for
Vested LTIP Units, without your submission of an exercise notice, under
circumstances described in the Plan.

     5.       Settlement Upon Exercise. Upon the exercise of the Award, you will
become entitled to receive an amount equal to (a) the excess, if any, of the
LTIP Unit Value applicable to the Award on the Exercise Date over the Strike
Price, multiplied by (b) the number of Vested LTIP Units exercised, less
applicable withholding taxes and authorized payroll deductions. Within thirty
(30) days following the Exercise Date, the Company will pay this amount to you,
except to the extent you are eligible and have elected to defer such payment in
accordance with the Dreyer’s Grand Ice Cream, Inc. Deferred Compensation Plan
(or any successor thereto).

     6.       Tax Withholding. You hereby authorize withholding from payroll and any
amounts payable to you under the Plan and otherwise agree to pay to the Company
any and all federal, state, local and foreign taxes, if any, required by law to
be withheld in connection with the Award.

     7.       Effect of Termination of Service. If your Service terminates, the
Award will be subject to exercise and/or forfeiture to the extent described by
the Plan.

     8.       Termination of Award. The Award will terminate and cease to be
exercisable upon the first to occur of (a) the Expiration Date, (b) the
applicable date described by the Plan in the event of your termination of
Service and (c) any early termination date determined by the Administrator, as
described by the Plan.

     9.       Nontransferability of Award. Prior to payment in settlement of the
Award, the Award will not be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, or garnishment by creditors of
you or your beneficiary, except transfer by will or by the laws of descent and
distribution.

     10.       No Employment or Stockholder Rights. Nothing contained in the Plan or
this Agreement constitutes an express or implied promise by the Company to
retain you in any capacity for the vesting period of the Award or for any
period at all. The Company reserves the right to terminate your Service at any
time and for any reason. Further, neither the Plan nor this Agreement give you
any rights as a stockholder of the Company.

2

 

     11.       Beneficiary Designation. You may designate on the form attached to
this Agreement a beneficiary to receive any amount payable to you under the
Plan which has not been paid prior to your death.

     12.       Administration of Award. The Plan and this Award are administered by
the Administrator. All questions of interpretation concerning the Plan and
this Agreement will be determined by the Board, and its determinations will be
final and binding upon all persons.

     13.       Integrated Agreement. This Agreement, together with the Plan and the
Governing Employment Agreement, if any, constitutes the entire understanding
and agreement of you and the Company with respect to the subject matter
contained herein and supersedes any prior agreements, understandings,
restrictions, representations, or warranties between you and the Company with
respect to such subject matter other than those as set forth or provided for
herein. The terms and conditions of any Governing Employment Agreement shall,
notwithstanding any provision of this Agreement to the contrary, supersede any
inconsistent term or condition set forth in this Agreement to the extent
intended by such Governing Employment Agreement. To the extent contemplated
herein, the provisions of this Agreement and the Plan shall survive any
exercise of the Award and shall remain in full force and effect.

     14.       Choice of Law. This Agreement shall be governed by the laws of the
State of California as such laws are applied to agreements between California
residents entered into and to be performed entirely within the State of
California.

     By your signature below, you and the Company agree that the Award is
governed by this Agreement and by the terms and conditions of the Plan attached
to and made a part of this Agreement. You hereby acknowledge receipt of a copy
of the Plan, and you represent that you have read and are familiar with its
provisions and hereby accept the Award subject to all of its terms and
conditions.

	 	 	 	 	 	 	 
	DREYER’S GRAND ICE CREAM HOLDINGS, INC.	 	PARTICIPANT
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	
 	 	
 
	

	 	 	 	 	 	Signature
	Its:
	 	 	 	 	 	 
	 	 	
 	 	
 
	

	 	 	 	 	 	Date
	Address:

	 	 
	 	5929 College Avenue

Oakland, California 94618	 	
 
	

	 	 	 	 
	 	Address
	

	 	 	 	 	 	
 

ATTACHMENTS:

Exhibit A: Dreyer’s Grand Ice Cream Holdings, Inc. 2004 Long-Term Incentive Plan

Exhibit B: LTIP Unit Exercise Notice

Exhibit C: Designation of Beneficiary

3

 

EXHIBIT A

DREYER’S GRAND ICE CREAM HOLDINGS, INC.

2004 LONG-TERM INCENTIVE PLAN

1

 

EXHIBIT B

Participant: 
                   
                                           

Date:                                                                            

LTIP UNIT EXERCISE NOTICE

Dreyer’s Grand Ice Cream Holdings, Inc.

Attention: Chief Financial Officer

5929 College Avenue

Oakland, California 94618

Ladies and Gentlemen:

     1.       Identification of Award. I was granted an award of LTIP Units (the
"Award”) pursuant to the Dreyer’s Grand Ice Cream Holdings, Inc. 2004 Long-Term
Incentive Plan (the “Plan”) and my Long-Term Incentive Award Agreement (the
"Agreement”) as follows:

	 	 	 	 	 
	Grant Date:
	 	 	 	 
	 
	 	 	
 	 
	Number of LTIP Units:
	 	 	 	 
	 
	 	 	
 	 
	Strike Price (per LTIP Unit):
	 	$	 	 
	 
	 	 	
 	 
	Vesting Commencement Date:
	 	 	 	 
	 
	 	 	
 	 

     2.       Exercise of Award. I hereby elect to exercise the Award for the
following number of Vested LTIP Units (as determined in accordance with the
Agreement):

	 	 	 	 	 
	Number of Vested LTIP Units exercised:
	 	 	 	 
	 
	 	 	
 	 

     3.       Tax Withholding. I authorize withholding from payroll and any amounts
payable to me under the Plan and otherwise agree to pay to the Company any and
all federal, state, local and foreign taxes, if any, required by law to be
withheld in connection with my exercise of the Award.

     4.       Participant Information.

	 	 	 	 	 
	My address is:
	 	 	 	 
	 	 	
 
	 
	 	 	 	 
	 	 	
 
	 

	 	 	 	 
	My Social Security Number is:	 	 
	

	 	 	 	
 

 

 

     5.       Binding Effect. I agree that my exercise of the Award is subject to
all of the terms and conditions of the Agreement and the Plan, to all of which
I hereby expressly assent. I understand and agree that this Exercise Notice
will be effective only if and to the extent permitted by the Agreement and the
Plan. This Exercise Notice shall inure to the benefit of and be binding upon
my heirs, executors, administrators, successors and assigns.

	 	 	 
	 

	 	Very truly yours,
	 
	 	 
	

	 	
 
	

	 	(Signature)

Receipt of the above is hereby acknowledged.

DREYER’S GRAND ICE CREAM HOLDINGS, INC.

By:

Title:

Dated:

 

 

DREYER’S GRAND ICE CREAM HOLDINGS, INC.

DESIGNATION OF BENEFICIARY

UNDER 2004 LONG-TERM INCENTIVE PLAN

	 	 	 
	TO:
	 	 
	

	 	

	

	 	Company representative designated to receive beneficiary
designation
	 
	FROM:
	 	 
	

	 	

	

	 	Name of Participant

     I am a participant in the Dreyer’s Grand Ice Cream Holdings, Inc. 2004
Long-Term Incentive Plan (the “Plan”). In the event of my death, I designate
the following as my beneficiary to receive all amounts payable to me under the
Plan which I have not received prior to my death:

	 	 	 
	Beneficiary’s Name:
	 	 
	

	 	

	 
	 	 
	Social Security Number:
	 	 
	

	 	

	 
	 	 
	Relationship:
	 	 
	

	 	

	 
	 	 
	Address:
	 	 
	

	 	

     If you are married and your beneficiary is someone other than your spouse,
then your spouse must sign and date this form.

This designation revokes all prior beneficiary designations I have made under
the Plan.

	 	 	 	 	 
	Date:
	 	 	 	 
	

	 	
 
	 	
 
	

	 	 	 	Signature of Participant

Consent of Spouse:

     I am the spouse of the above named participant. I consent to the above
designation of a beneficiary other than me to receive payments due to my spouse
under the Plan.

	 	 	 	 	 
	Date:
	 	 	 	 
	

	 	
 
	 	
 
	

	 	 	 	Signature of Participant’s Spouse

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