Footnote 1 to Form 4 filed by Wendell H. Murphy on January 25, 2010 On January 22, 2010, the reporting person settled a variable prepaid forward agreement (the "Agreement") that was entered into on June 19, 2006 with an unaffiliated third party...Variable Prepaid Forward Agreement • January 25th, 2010 • Murphy Wendell H • Meat packing plants
On January 22, 2010, the reporting person settled a variable prepaid forward agreement (the "Agreement") that was entered into on June 19, 2006 with an unaffiliated third party purchaser. The Agreement obligated the reporting person to deliver to the purchaser up to 174,762 shares of SFD common stock (or, at the reporting person's election, an equivalent amount of cash) on the scheduled valuation date (January 22, 2010). In exchange for assuming this obligation, the reporting person received a cash payment of $3,954,039.20 as of the date of entering into the Agreement. The reporting person pledged 174,762 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 f
