Footnote 1 to Table II of Form 4 filed by Wendell H. Murphy on July 2, 2009 On June 30, 2009, the reporting person settled a variable prepaid forward agreement (the "Agreement") that was entered into on June 30, 2004 with an unaffiliated third party...Variable Prepaid Forward Agreement • July 2nd, 2009 • Murphy Wendell H • Meat packing plants
On June 30, 2009, the reporting person settled a variable prepaid forward agreement (the "Agreement") that was entered into on June 30, 2004 with an unaffiliated third party purchaser. The Agreement obligated the reporting person to deliver to the purchaser up to 155,002 shares of SFD common stock (or, at the reporting person?s election, an equivalent amount of cash) on the scheduled valuation date (June 30, 2009). In exchange for assuming this obligation, the reporting person received a cash payment of $3,913,358.80 as of the date of entering into the Agreement. The reporting person pledged 155,002 shares of SFD common stock (the "Pledged Shares") to secure his obligations under the contract, and retained dividend and voting rights in the Pledged Shares during the term of the pledge. The Agreement provided that the number of shares of SFD common stock that the reporting person would be obligated to deliver to the purchaser on the scheduled valuation date would be determined as fo
