EXHIBIT 10.2
ANNEX A
SUPPLEMENTAL CONFIRMATION
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Del Monte Foods
Company
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One Market @
The Landmark
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San Francisco,
CA 94105
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Goldman Sachs
International
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Collared
Accelerated Share Repurchase Transaction –
Execution Pricing
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EN50V8000000000
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June 29,
2005
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The
purpose of this Supplemental Confirmation is to confirm the terms
and conditions of the Transaction entered into between Goldman
Sachs International. (“GSI”) and Del Monte Foods
Company (“Counterparty”) (together, the
“Contracting Parties”) on the Trade Date specified
below. This Supplemental Confirmation is a binding contract between
GSI and Counterparty as of the relevant Trade Date for the
Transaction referenced below. GSI is acting as principal in this
Transaction and Goldman, Sachs & Co., its affiliate, is acting
as agent for GSI and Counterparty in this Transaction. GSI is
not a member of the Securities Investor Protection Corporation
. The final terms of the Transaction shall be sent to Counterparty
by GSI substantially in the form of a Trade Notification attached
hereto as Schedule A.
The
definitions and provisions contained in the Master Confirmation
specified below are incorporated into this Supplemental
Confirmation. In the event of any inconsistency between those
definitions and provisions and this Supplemental Confirmation, this
Supplemental Confirmation will govern.
1. This
Supplemental Confirmation supplements, forms part of, and is
subject to the Master Confirmation dated as of June 29, 2005
(the “Master Confirmation”) between the Contracting
Parties, as amended and supplemented from time to time. All
provisions contained in the Master Confirmation govern this
Supplemental Confirmation except as expressly modified
below.
2. The terms of the
Transaction to which this Supplemental Confirmation relates are as
follows:
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As specified in
the Trade Notification. In a related transaction Counterparty
agreed to purchase a number of Shares equal to the Number of Shares
from GSI on the Trade Date at the Forward Price per
Share.
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Capped
Settlement Amount:
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The product of
(a) 11% of the Hedge Period Market Price multiplied by (b) the
Number of Shares multiplied by (c) the Applicable
Percentage.
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The product of
(a) 1% of the Hedge Period Market Price multiplied by
(b) the Number of Shares multiplied by (c) the Applicable
Percentage.
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The Scheduled
Trading Day on which GSI finishes establishing its Hedge Positions,
as determined by GSI in its sole discretion.
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USD $10.42 per
Share
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A-1
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Hedge Period
Market Price:
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The New York
10b-18 Volume Weighted Average Price per share of the Shares over
the Hedge Period (without regard to pre-open or after hours trading
outside of regular trading sessions), as published by
Bloomberg.
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Hedge Forward
Differential:
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The product of
(a) the difference between the Hedge Period Market Price minus
the Forward Price multiplied by the product of (b) the Number
of Shares multiplied by (c) the Applicable
Percentage.
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Hedge Forward
Cash Settlement Amount:
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The product of
(a) the difference between the Settlement Price minus the
Hedge Period Market Price multiplied by (b) the Number of
Shares.
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The number of
Scheduled Trading Days from and including the Time of the Order to
and including the Scheduled Trading Day upon which GSI fully
establishes its Hedge Positions.
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An amount in
USD equal to the product of (a) 0% of the Hedge Period Market
Price multiplied by (b) the Number of Shares multiplied by
(c) the Applicable Percentage, payable by Counterparty to GSI
by 10:00 a.m. New York time on the Scheduled Trading Day
immediately following the Hedge Completion Date.
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As specified in
the Trade Notification.
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11,996,161
Shares
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(50% x [Number
of Shares x Forward Price])
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Hedge
Period Market Price
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Number
of Shares
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25,000,000
Shares
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$7.00 per
Share
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Counterparty
Additional Payment Amount:
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As specified in
the Trade Notification
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3. Counterparty
represents and warrants to GSI that it has disclosed to GSI any and
all purchases of blocks pursuant to the proviso in
Rule 10b-18(b)(4) under the Exchange Act made during the four
full calendar weeks immediately preceding the Trade Date by
Counterparty or any “affiliated purchaser” as defined
in Rule 10b-18 under the Exchange Act.
A-2
Counterparty
hereby agrees (a) to check this Supplemental Confirmation
carefully and immediately upon receipt so that errors or
discrepancies can be promptly identified and rectified and
(b) to confirm that the foregoing (in the exact form provided
by GSI) correctly sets forth the terms of the agreement between GSI
and Counterparty with respect to this Transaction, by manually
signing this Supplemental Confirmation or this page hereof as
evidence of agreement to such terms and providing the other
information requested herein and immediately returning an executed
copy to Equity Derivatives Documentation Department, facsimile
No. 212-428-1980/83.
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Yours
sincerely,
GOLDMAN SACHS INTERNATIONAL
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By:
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/s/ Sharon
Seibold
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Authorized
Signatory
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Agreed and
Accepted
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By:
DEL MONTE FOODS COMPANY
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By:
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/s/ Thomas E.
Gibbons
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Name:
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Thomas E.
Gibbons
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Title:
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Senior Vice
President and Treasurer
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A-1
SCHEDULE A
TRADE NOTIFICATION
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Del Monte Foods
Company
One Market @ The Landmark
San Francisco, CA 94105
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Goldman Sachs
International
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Collared
Accelerated Share Repurchase Transaction-Execution
Pricing
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[Insert
Reference No.]
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[Insert
Date]
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The
purpose of this Trade Notification is to notify you of certain
terms in the Transaction entered into between Goldman Sachs
International (“GSI”) and Del Monte Foods Company
(“Counterparty”) (together, the “Contracting
Parties”) on the Trade Date specified below. GSI is acting as
principal in this Transaction and Goldman, Sachs & Co., its
affiliate, is acting as agent for GSI and Counterparty in this
Transaction. GSI is not a member of the Securities Investor
Protection Corporation .
The
definitions and provisions contained in the Supplemental
Confirmation specified below are incorporated into this Trade
Notification. In the event of any inconsistency between those
definitions and provisions and this Trade Notification, this Trade
Notification will govern.
This Trade
Notification supplements, forms part of, and is subject to the
Supplemental Confirmation dated as of June 29, 2005 (the
“Supplemental Confirmation”) between the Contracting
Parties, as amended and supplemented from time to time. All
provisions contained in the Supplemental Confirmation govern this
Trade Notification.
The
Supplemental Confirmation specified a method or formula for
determining the amounts, dates or numbers below. The actual
amounts, dates or numbers are as follows:
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[ ]
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[ ]
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Capped
Settlement Amount:
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USD
$[ ]
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USD
$[ ]
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Hedge Forward
Differential:
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USD
$[ ]
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Hedge Forward
Cash Settlement Amount:
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USD
$[ ]
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USD
$[ ]
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Counterparty
Additional Payment Amount:
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USD
$[ ]
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[ ]
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[ ]%
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A-2
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Yours
sincerely,
GOLDMAN SACHS INTERNATIONAL
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By:
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Authorized
Signatory
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A-3
ANNEX B
NET SHARE SETTLEMENT PROCEDURES
The
following Net Share Settlement Procedures shall apply to the extent
that Counterparty elects Net Share Settlement in accordance with
the Master Confirmation:
Net
Share Settlement shall be made by delivery of the number of Shares
equal in value to the Forward Cash Settlement Amount plus any Net
Cash Amount, if applicable (the “Settlement Shares”),
with such Shares’ value based on the Net Share Settlement
Price. Delivery of such Settlement Shares shall be made free of any
contractual or other restrictions in good transferable form on the
Net Share Settlement Date with Counterparty (i) representing
and warranting to GSI at the time of such delivery that it has
good, valid and marketable title or right to sell and transfer all
such Shares to GSI under the terms of the related Transaction free
of any lien charge, claim or other encumbrance and (ii) making
the representations and agreements contained in
Section 9.11(ii) through (iv) of the Equity Definitions
to GSI with respect to the Settlement Shares. GSI or any affiliate
of GSI designated by GSI (GSI or such affiliate, “GS”)
shall resell the Settlement Shares during a period (the
“Resale Period”) commencing no earlier than the Net
Share Valuation Date. The Resale Period shall end on the Exchange
Business Day on which GS completes the sale of all Settlement
Shares or a sufficient number of Settlement Shares so that the
realized net proceeds of such sales exceed the Forward Cash
Settlement Amount plus the Net Cash Amount, if applicable.
Notwithstanding the foregoing, if resale by GS of the Settlement
Shares, as determined by GS in its sole discretion (i) occurs
during a distribution for purposes of Regulation M, and if GS
would be subject to the restrictions of Rule 101 of
Regulation M in connection with such distribution, the Resale
Period will be postponed or tolled, as the case may be, until the
Exchange Business Day immediately following the end of any
“restricted per