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SUPPLEMENTAL CONFIRMATION

Stock Repurchase Agreement

SUPPLEMENTAL CONFIRMATION | Document Parties: DEL MONTE FOODS CO You are currently viewing:
This Stock Repurchase Agreement involves

DEL MONTE FOODS CO

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Title: SUPPLEMENTAL CONFIRMATION
Date: 7/1/2005
Industry: Food Processing    

SUPPLEMENTAL CONFIRMATION, Parties: del monte foods co
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EXHIBIT 10.2

ANNEX A

SUPPLEMENTAL CONFIRMATION

 

 

 

To:

 

Del Monte Foods Company

 

 

One Market @ The Landmark

 

 

San Francisco, CA 94105

 

 

 

From:

 

Goldman Sachs International

 

 

 

Subject:

 

Collared Accelerated Share Repurchase Transaction –
Execution Pricing

 

 

 

Ref. No:

 

EN50V8000000000

 

 

 

Date:

 

June 29, 2005

 

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

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

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

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

 

 

 

Trade Date:

 

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

 

 

 

Capped Settlement Amount:

 

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

 

 

 

Floor Settlement Amount:

 

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

 

 

 

Hedge Completion Date:

 

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

 

 

 

Forward Price:

 

USD $10.42 per Share

A-1


 

 

 

 

 

Hedge Period Market Price:

 

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

 

 

 

 

Hedge Forward Differential:

 

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

 

 

 

 

Hedge Forward Cash Settlement Amount:

 

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

 

 

 

 

Hedge Period:

 

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

 

 

 

 

Initial Payment Amount:

 

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

 

 

 

 

Valuation Date:

 

As specified in the Trade Notification.

 

 

 

 

Number of Shares:

 

11,996,161 Shares

 

 

 

 

 

Applicable Percentage:

 

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

 

 

 

 

 

 

 

              Hedge Period Market Price

 

 

 

 

 

 

 

                      Number of Shares

 

 

 

 

 

Reserved Shares:

 

25,000,000 Shares

 

 

 

 

 

Termination Price:

 

$7.00 per Share

 

 

 

 

 

Counterparty Additional Payment Amount:

 

As specified in the Trade Notification

 

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

A-2


 

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

 

 

 

 

 

 

Yours sincerely,
GOLDMAN SACHS INTERNATIONAL
 

 

 

By:  

/s/ Sharon Seibold  

 

 

 

Authorized Signatory 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agreed and Accepted

 

By:   DEL MONTE FOODS COMPANY  

 

 

 

 

By:  

 

/s/ Thomas E. Gibbons 

 

 

 

Name:

 

Thomas E. Gibbons 

 

 

 

Title:

 

Senior Vice President and Treasurer 

 

A-1


 

 

 

 

 

 

SCHEDULE A

TRADE NOTIFICATION

 

 

 

To:

 

Del Monte Foods Company
One Market @ The Landmark
San Francisco, CA 94105

 

 

 

From:

 

Goldman Sachs International

 

 

 

Subject:

 

Collared Accelerated Share Repurchase Transaction-Execution
Pricing

 

 

 

Ref. No:

 

[Insert Reference No.]

 

 

 

Date:

 

[Insert Date]

 

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

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

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

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

 

 

 

Trade Date:

 

[          ]

 

 

 

Hedge Completion Date:

 

[          ]

 

 

 

Capped Settlement Amount:

 

USD $[          ]

 

 

 

Floor Settlement Amount:

 

USD $[          ]

 

 

 

Hedge Forward Differential:

 

USD $[          ]

 

 

 

Hedge Forward Cash Settlement Amount:

 

USD $[          ]

 

 

 

Initial Payment Amount:

 

USD $[          ]

 

 

 

Counterparty Additional Payment Amount:

 

USD $[          ]

 

 

 

Valuation Date:

 

[              ]

 

 

 

Applicable Percentage:

 

[     ]%

A-2


 

 

 

 

 

 

 

Yours sincerely,
GOLDMAN SACHS INTERNATIONAL
 

 

 

By:  

 

 

 

 

Authorized Signatory 

 

 

 

 

 

A-3


 

 

 

 

 

 

ANNEX B

NET SHARE SETTLEMENT PROCEDURES

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

          Net Share Settlement shall be made by delivery of the number of Shares equal in value to the Forward Cash Settlement Amount plus any Net Cash Amount, if applicable (the “Settlement Shares”), with such Shares’ value based on the Net Share Settlement Price. Delivery of such Settlement Shares shall be made free of any contractual or other restrictions in good transferable form on the Net Share Settlement Date with Counterparty (i) representing and warranting to GSI at the time of such delivery that it has good, valid and marketable title or right to sell and transfer all such Shares to GSI under the terms of the related Transaction free of any lien charge, claim or other encumbrance and (ii) making the representations and agreements contained in Section 9.11(ii) through (iv) of the Equity Definitions to GSI with respect to the Settlement Shares. GSI or any affiliate of GSI designated by GSI (GSI or such affiliate, “GS”) shall resell the Settlement Shares during a period (the “Resale Period”) commencing no earlier than the Net Share Valuation Date. The Resale Period shall end on the Exchange Business Day on which GS completes the sale of all Settlement Shares or a sufficient number of Settlement Shares so that the realized net proceeds of such sales exceed the Forward Cash Settlement Amount plus the Net Cash Amount, if applicable. Notwithstanding the foregoing, if resale by GS of the Settlement Shares, as determined by GS in its sole discretion (i) occurs during a distribution for purposes of Regulation M, and if GS would be subject to the restrictions of Rule 101 of Regulation M in connection with such distribution, the Resale Period will be postponed or tolled, as the case may be, until the Exchange Business Day immediately following the end of any “restricted per


 
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