**Exhibit 10.60**

**SENIOR MANAGEMENT**

**CLASS F UNITSUBSCRIPTION AGREEMENT**

THIS SENIOR MANAGEMENT CLASS F UNIT SUBSCRIPTION AGREEMENT (this“Agreement”) is made as of October 23, 2009, by and among Michael Foods Investors, LLC, a Delaware limited liability company (“Investors”) and Mark W. Westphal (the “Executive”). 

WHEREAS, the Class F Units of Investors (“Class F Units”) being issued to Executive hereunder shall have the rights andbenefits and be subject to the LLC Agreement (as defined below). 

NOW, THEREFORE, in order to implement the foregoing and inconsideration of the mutual representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows: 

 

1.1Agreement. The term “Agreement” shall have the meaning set forth in the preface. 

1.2 ApplicablePercentage. Except as provided otherwise in the next sentence, the term “Applicable Percentage” shall mean: (i) 0% during the one-year period commencing on the date hereof; (ii) 20% during the one-year periodcommencing on the first anniversary of the date hereof; (iii) 40% during the one-year period commencing on the second anniversary of the date hereof; (iv) 60% during the one-year period commencing on the third anniversary of the datehereof; (v) 80% during the one-year period commencing on the fourth anniversary of the date hereof, and (vi) 100% on and after the fifth anniversary of the date hereof. Notwithstanding the foregoing, immediately prior to and after theoccurrence of a Change in Control, such Applicable Percentage shall mean 100%. 

1.3 Board. The “Board” shallmean Investors’ Management Committee. 

1.4 Cause. The term “Cause” used in connection with thetermination of employment of the Executive shall have the same meaning ascribed to such term in any employment or severance agreement then in effect between Executive and Investors or one of its subsidiaries or, if no such agreement containing adefinition of “Cause” is then in effect, shall mean (i) the continued failure of the Executive to perform substantially the Executive’s duties with Investors or one of its affiliates (other than any such failure resulting fromincapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Executive by the Board which specifically identifies the manner in which the Board believes that the Executive has not substantiallyperformed the Executive’s duties; (ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to Investors or one of its subsidiaries; or (iii) conviction of afelony or guilty or nolo contendere plea by the Executive with respect thereto. 

For purposes of this provision, no act orfailure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or

without reasonable belief that the Executive’s action or omission was in the best interests of Investors or one of its subsidiaries. Any act, or failure to act, based upon authority givenpursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer (while the Executive does not serve as such) or based upon the advice of counsel for Investors shall be conclusively presumed to be done, oromitted to be done, by the Executive in good faith and in the best interests of Investors and its subsidiaries. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to theExecutive a copy of a resolution duly adopted by the affirmative vote of not less than 75% of the entire membership of the Board (excluding the Executive) at a meeting of the Board called and held for such purpose (after reasonable notice isprovided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, the Executive is guilty of the conduct described in (i), (ii) or(iii) above, and specifying the particulars thereof in detail. 

1.5 Change in Control. The term “Change inControl” means the consummation of a transaction, whether in a single transaction or in a series of related transactions that are consummated contemporaneously (or consummated pursuant to contemporaneous agreements), with any other party orparties other than THL or its affiliates on an arm’s-length basis, pursuant to which (a) such party or parties, directly or indirectly, acquire (whether by merger, stock purchase, recapitalization, reorganization, redemption, issuance ofcapital stock or otherwise) more than 50% of the voting interests of Investors, (b) such party or parties, directly or indirectly, acquire assets constituting all or substantially all of the assets of Investors and its subsidiaries on aconsolidated basis, or (c) prior to an initial public offering of Investors’ (or its successor’s), M-Foods Holdings, Inc.’s or the Company’s Common Stock pursuant to an offering registered under the 1933 Act, THL or itsaffiliates cease to have the ability to elect, directly or indirectly, a majority of the Board or the Board of Directors of M-Foods Holdings, Inc. or the Company, as the case may be. In no event shall a Change in Control include any transactioneffected for the purpose of (i) changing, directly or indirectly, the form of organization or the organizational structure of Investors or any of its Subsidiaries or (ii) contributing stock to entities controlled by Investors. 

1.6 Class F Units. The term “Class F Units” shall have the meaning set forth in the preface. 

1.7 Company. The term “Company” shall mean Michael Foods, Inc., a Delaware corporation. 

1.8 Cost. The term “Cost” shall mean, with respect to a Class F Unit, $100.00 per unit (as proportionately adjustedfor all subsequent distributions of units and other recapitalizations). 

1.9 Disability. The term“Disability” used in connection with the termination of employment of the Executive shall have the same meaning ascribed to such term in any employment or severance agreement then in effect between Executive and Investors or one ofits subsidiaries or, if no such agreement containing a definition of “Disability” is then in effect, shall mean a determination by the Company in its sole discretion that Executive is unable to perform his job responsibilities as a resultof chronic illness, physical, mental or any other disability for a period of six months or more. 

 

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1.10 Employee and Employment. The term “employee” shall mean anyemployee (as defined in accordance with the regulations and revenue rulings then applicable under Section 3401(c) of the Internal Revenue Code of 1986, as amended) of Investors or any of its subsidiaries, and the term“employment” shall include service as a part- or full-time employee to Investors or any of its subsidiaries. 

1.11 Executive. The term “Executive” shall have the meaning set forth in the preface. 

1.12Executive Group. The term “Executive Group” shall have the meaning set forth in Section 4.1(a). 

1.13 Fair Market Value. The term “Fair Market Value” used in connection with the value of Units shall mean the fair value of the Units determined in good faith by the Board (without taking into account the effect ofany contemporaneous repurchase of Units at less than Fair Market Value under Section 6); providedthat, the Board shall assume, as of such calculation date, the sale of all of the assets of Investors at fair value and thedistribution of the proceeds resulting therefrom in accordance with the distribution provisions set forth in the LLC Agreement; provided further that if the Executive disagrees in good faith with the Board’s determination, the Executive shallpromptly notify Investors in writing of such disagreement, in which event an independent appraiser, accountant or investment banking firm (the “Arbiter”) selected by mutual agreement of the Executive and the Board shall make adetermination of the fair market value thereof (disregarding any discount for minority interest or marketability of units and assuming the prior conversion, exercise or exchange of all securities convertible into or exchangeable or exercisable forUnits) solely by (i) reviewing a single written presentation timely made by each of Investors and the Executive setting forth their respective resolutions of the dispute and the bases therefor and (ii) accepting either the Executive’sor Investors’ proposed resolution of the dispute. Promptly following Investors’ receipt of Executive’s written notice of disagreement, Investors shall make available to Executive all data (including reports of employees and outsideadvisors) relied upon by the Board in making its determination. The Executive’s and the Investors’ written presentations must be submitted to the Arbiter within 30 days of the Arbiter’s engagement. The Arbiter shall notify theExecutive and Investors of its decision within 40 days of its engagement. The party whose proposed resolution is not accepted shall pay all of the Arbiter’s fees and expenses. If the Executive’s proposed resolution is accepted, Investorsalso shall pay all of the Executive’s reasonable out-of-pocket fees and expenses (including reasonable fees and expenses of counsel and one appraiser, accountant or investment banking firm) incurred in connection with the arbitration. Each ofInvestors and the Executive agrees to execute, if requested by the Arbiter, a reasonable engagement letter with the Arbiter. 

1.14 Financing Default. The term “Financing Default” shall mean any event of default under (i) that certain Credit Agreement by and among the Company, Michael Foods Holdings, Inc. and Bank of America, as administrativeAgent, as amended, (ii) that certain Senior Unsecured Term Loan Agreement by and among the Company, Michael Foods Holdings, Inc. and Bank of America, as administrative agent as amended, (iii) those certain 8.00% Senior

 

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Subordinated Notes due 2013 in an aggregate principal amount of $150,000,000 issued on or about November 20, 2003, and (iv) those certain 9 3/4% Discount Senior Notes due 2013 issued on or aboutSeptember 17, 2004, or any other similar notes or instruments that Investors or its Subsidiaries may issue from time to time. 

1.15 Good Reason. The term “Good Reason” shall have the same meaning ascribed to such term in any employment or severance agreement then in effect between Executive and Investorsor one of its subsidiaries or, if no such agreement containing a definition of “Good Reason” is then in effect, shall mean: 

(a) the assignment to the Executive of any duties inconsistent with the Executive’s title and position (including status, offices and reporting requirements), authority, duties or responsibilities,or any other action by the Company which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied bythe Company promptly after receipt of notice thereof given by the Executive; provided that it is specifically understood that within six months of a Change in Control the Company shall have the flexibility to appoint the Executive to a reportingrelationship different from that which existed prior to the Change in Control, to make an immaterial change in Executive’s duties or to change the Executive’s title provided that Executive shall not have a stature less than that of aSenior Vice President and it is understood that equivalent positions may have different titles; 

(b) anyfailure by the Company to provide the base salary, bonus participation and welfare benefits as had previously been agreed with Executive, or, following a Change in Control, the failure by the Company to review and provide increases in base salary ina manner that is consistent with the acquiror’s review and compensation policy for other senior executives, in each case other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by theCompany promptly after receipt of notice thereof given by the Executive; or 

(c) the failure of the Companyupon a Change in Control to (A) continue in effect any employee benefit plan, compensation plan, welfare benefit plan or material fringe benefit plan in which Executive is participating immediately prior to such Change in Control or the takingof any action by the Company which would adversely affect Executive’s participation in or reduce Executive’s benefits under any such plan, unless Executive is permitted to participate in other plans providing Executive with substantiallycomparable benefits, or (B) provide Executive with paid vacation in accordance with the most favorable past practice of the Company as in effect for Executive immediately prior to such Change in Control. 

1.16 Investors. The term “Investors” shall have the meaning set forth in the preface. 

1.17 LLC Agreement. The term “LLC Agreement” shall mean the Second Amended and Restated Limited Liability CompanyAgreement of Investors, dated as of October 23, 2009, entered into by and among the members of Investors, as amended from time to time in accordance with its terms. 

 

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1.18 Permitted Transferee. The term “Permitted Transferee” means anytransferee of Units pursuant to clauses (e) or (f) of the definition of “Exempt Transfer” as defined in the Securityholders Agreement. 

1.19 Person. The term “Person” shall mean any individual, corporation, partnership, limited liability company, trust, joint stock company, business trust, unincorporatedassociation, joint venture, governmental authority or other entity of any nature whatsoever. 

1.20 Public Offering. Theterm “Public Offering” shall have the meaning set forth in the Securityholders Agreement. 

1.21Retirement. The term “Retirement” shall mean, with respect to the Executive, the Executive’s retirement as an employee of Investors or any of its subsidiaries on or after reaching age 65, or such earlier age as may beotherwise determined by the Board, after at least three years employment with Investors or any of its subsidiaries. 

1.22Securities Act. The term “Securities Act” shall mean the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder, as the same may be amended from time to time. 

1.23 Securityholders Agreement. The term “Securityholders Agreement” shall mean the Securityholders Agreement datedas of November 20, 2003, among Investors and the other securityholders party thereto, as it may be amended or supplemented thereafter from time to time. 

1.24 THL. The term “THL” means, collectively Thomas H. Lee Equity Fund V, L.P. and its affiliates. 

1.25 Termination Date. The term “Termination Date” means the date upon which Executive’s employment with Investors and its subsidiaries is terminated. 

1.26 Unvested Percentage. The term “Unvested Percentage” shall mean the result of one minus the ApplicablePercentage. 

 
2.Purchase and Sale. 
2.1Purchase and Sale. Concurrently herewith, the Executive shall pay $100,000.00 to Investors against issuance of 1,000 Class F Units. The Executive shall pay the purchase price for the Class F Units by check or wire transfer of immediatelyavailable funds to an account of Investors of which Executive has been notified. 

2.2 Section 83(b) Election. Withrespect to the Class F Units received by Executive, within 30 days after the date hereof, Executive shall make a timely election with the Internal Revenue Service under Section 83(b) of the Internal Revenue Code of 1986, as amended, and theregulations promulgated thereunder in the form of Exhibit A attached hereto. 

 

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3.Representations and Warranties of the Executive and Investors. 
3.1 Unit Purchase Representations of the Executive. The Executive represents and warrants to Investors that the statements contained in this Section 3.1 are correct and complete as ofthe date of this Agreement: 

(a) Power and Authority. The Executive has full power and authority toexecute and deliver this Agreement and perform his obligations hereunder. This Agreement constitutes the valid and legally binding obligation of the Executive, enforceable in accordance with its terms and conditions. To the best of his knowledge,the Executive need not give any notice to, make any filing with, or obtain any authorization, consent or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. 

(b) Noncontravention. To the best of his knowledge, neither the execution and the delivery of this Agreement, nor theconsummation of the transactions contemplated hereby, will violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which theExecutive is subject or conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract,lease, license, instrument, or other arrangement to which the Executive is a party or by which he is bound or to which any of his assets is subject. 

(c) Investment Representations: (i) The Executive has such knowledge and experience in financial and business matters so that the Executive is capable of protecting the Executive’s owninterests in connection with the acquisition of the Class F Units and evaluating the merits and risks of the Executive’s investment in Investors. 

(ii) The Executive is an “accredited executive” as defined in Regulation D promulgated under the Securities Act. The Executive is familiar with the type of investment that the Class F Unitsconstitute and recognizes that an investment in Investors involves substantial risks, including risk of loss of the entire amount of such investment. The Executive can bear the economic risk of the purchase of the Class F Units and of the loss ofthe entire amount of the investment. 

(iii) The Executive is aware that there are limitations and restrictionson the circumstances under which the Executive may offer to sell, transfer or otherwise dispose of the Class F Units. Such limitations and restrictions include those set forth in the LLC Agreement and the Securityholders Agreement and those imposedby operation of applicable securities laws and regulations. The Executive acknowledges that as a result of such limitations and restrictions, it might not be possible to liquidate an investment in the Class F Units readily and that it may benecessary to hold such investment for an indefinite period. 

(iv) In evaluating the suitability of aninvestment in Investors, the Executive has not relied upon any oral or written representations or other information

 

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from investors or any affiliate of Investors or any agent or representative of Investors or its affiliates except as set forth herein. The Executive and the Executive’s advisors have had areasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of Investor concerning the terms and conditions of the offering of the Class F Units and have had access to, and been supplied with, alladditional information deemed necessary by the Investor to verify the accuracy of such information. 

(v) TheExecutive is acquiring the Class F Units for the Executive’s own account, for investment and not with a view to resale or distribution except in compliance with the Securities Act, the LLC Agreement and the Securityholders’ Agreement.

3.2 Legends. The Executive acknowledges that a restrictive legend in the form set forth below and the legends setforth in Section 6.2(a) and (b) of the Securityholders Agreement shall be placed on the certificates representing the Class F Units: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN REPURCHASE OPTIONS AND OTHER PROVISIONS SET FORTH IN A MANAGEMENT UNIT SUBSCRIPTION AGREEMENT BETWEEN THE ISSUER AND THEEXECUTIVE DATED AS OF OCTOBER 23, 2009, AS AMENDED AND MODIFIED FROM TIME TO TIME, A COPY OF WHICH MAY BE OBTAINED BY THE HOLDER HEREOF AT THE ISSUER’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE”; and 

a notation shall be made in the appropriate records of Investors indicating that the Class F Units are subject to restrictions on transferand, if Investors should at some time in the future engage the services of a securities transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the Class F Units. 

3.3 Representations of Investors. Investors represents to the Executive that the statements contained in this Section 3.3are correct and complete as of the date of this Agreement: 

(a) Organization and Power. Investors is alimited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware with full power and authority to enter into this Agreement and perform its obligations hereunder. 

(b) Authorization. The execution, delivery and performance of this Agreement by Investors and the consummation of thetransactions contemplated hereby by Investors have been duly and validly authorized by all requisite limited liability company action on the part of Investors, and no other proceedings on its part are necessary to authorize the execution, deliveryor performance of this Agreement. This Agreement has been duly executed and delivered by Investors, and this Agreement constitutes a valid and binding obligation of Investors, enforceable in accordance with its

 

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terms and conditions. Investors need not give any notice to, make any filing with, or obtain any authorization, consent or approval of any government or governmental agency in order to consummatethe transactions contemplated by this Agreement. 

(c) Noncontravention. Neither the execution and thedelivery of this Agreement, nor the consummation of the transactions contemplated hereby, will violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government,governmental agency, or court to which Investors is subject or any provision of its charter or bylaws or conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate,terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Investors is a party or by which it is bound or to which any of its assets is subject. 

 
4.Certain Sales Upon Termination of Employment. 
4.1 Call Options. 

(a) If the Executive’s employmentwith Investors or any of its subsidiaries terminates for any of the reasons set forth in clauses (i), (ii) or (iii) below prior to a Change in Control, or if the Executive engages in Competitive Activity (as defined inSection 6.1 of this Agreement), for any Units issued 181 days or more prior to the date of Executive’s termination of employment or engagement in Competitive Activity, within 120 days after such date (or in the case of Units issued180 days or less prior to such date or at any time after such date, no earlier than 181 days and no later than 271 days after the date of issuance of such Units), Investors shall have the right and option to purchase, and the Executive and theExecutive’s Permitted Transferees (hereinafter referred to as the “Executive Group”) shall be required to sell to Investors, any or all of such Units then held by such member of the Executive Group at a price per unit equal tothe applicable purchase price determined pursuant to Section 4.1(c): 

(i) if the Executive’sactive employment with Investors and its subsidiaries is terminated due to the Disability, death or Retirement of the Executive; 

(ii) if the Executive’s active employment with Investors and its subsidiaries is terminated by Investors and its subsidiaries without Cause or by the Executive for Good Reason; or 

(iii) if the Executive’s active employment with Investors and its subsidiaries is terminated (A) by Investors orany of its subsidiaries for Cause or (B) by the Executive for any other reason not set forth in Section 4.1(a)(i) or Section 4.1(a)(ii). 

(b) If Investors desires to exercise one of its options to purchase Units pursuant to this Section 4.1, Investorsshall, not later than the expiration of the applicable period described for such purchase in Section 4.1(a), send written notice to each member of the Executive Group of its intention to purchase Units, specifying the number of Units

 

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to be purchased (the “Call Notice”). Subject to the provisions of Section 5, the closing of the purchase shall take place at the principal office of Investors on thelater of the 60th day after the giving of the Call Notice and the date that is 10 business days after the final determination of Fair Market Value. Subject to the provisions of Section 5.1, the Executive shall deliver to Investors dulyexecuted instruments transferring title to units to Investors, against payment of the appropriate purchase price by cashier’s or certified check payable to the Executive or by wire transfer of immediately available funds to an accountdesignated by the Executive. 

(c) In the event of a purchase by Investors pursuant toSection 4.1(a), the purchase price shall be: 

(A) with respect to that number of Class F Units equal to theUnvested Percentage multiplied by the total number of Class F Units issued hereunder (the “Unvested Number”): 

(i) if the Executive engages in any Competitive Activity (as defined in Section 6.1 of this Agreement), or a termination of employment described in Section 4.1(a)(iii), a price per unitequal to the lesser of (A) Fair Market Value (measured as of the Activity Date (as defined in Section 6.2 of this Agreement)) and (B) Cost; or 

(ii) in the case of a termination of employment for any reason other than as set forth in Section 4.1(c)(A)(i)above, a price per unit equal to Cost. 

(B) with respect to all Class F Units other than the Unvested Number of Class F Units:

(i) if the Executive engages in any Competitive Activity, or a termination of employment described inSection 4.1(a)(iii), a price per unit equal to Cost; or 

(ii) in the case of a termination of employmentfor any reason other than as set forth in Section 4.1(c)(A)(i), a price per unit equal to the greater of (A) Fair Market Value (measured as of the Activity Date) and (B) Cost. 

Notwithstanding anything to the contrary contained in this Agreement, if the Fair Market Value of Units subject to a Call Notice is finallydetermined to be an amount at least 10% greater than the per Unit repurchase price for such Unit in the Call Notice, Investors shall have the right to revoke the exercise of its option pursuant to this Section 4.1 for all or any portionof the Units elected to be repurchased by it by delivering notice of such revocation in writing to the Executive Group during the ten-day period beginning on the date that Investors is given written notice that the Fair Market Value of a Unit wasfinally determined to be an amount at least 10% greater than the per Unit repurchase price set forth in the Call Notice. 

4.2Obligation to Sell Several. If there is more than one member of the Executive Group, the failure of any one member thereof to perform its obligations hereunder shall not excuse or affect the obligations of any other member thereof, and theclosing of the purchases from such other members by Investors shall not excuse, or constitute a waiver of its rights against, the defaulting member. 

 

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5.Certain Limitations on Investors’ Obligations to Purchase Units. 
5.1 Payment for Units. If at any time Investors elects to purchase any Units pursuant to Section 4, Investors shall pay the purchase price for the Units it purchases (i) first, byoffsetting indebtedness, if any, owing from the Executive to Investors (which indebtedness shall be applied pro rata against the proceeds receivable by each member of the Executive Group receiving consideration in such repurchase) and(ii) then, by Investors’ delivery of a check or wire transfer of immediately available funds for the remainder of the purchase price, if any, against delivery of the certificates or other instruments representing the Units so purchased,duly endorsed; provided that if such cash payment would result (A) in a violation of any law, statute, rule, regulation, policy, order, writ, injunction, decree or judgment promulgated or entered by any federal, state, local or foreigncourt or governmental authority applicable to Investors or any of its subsidiaries or any of its or their property or (B) after giving effect thereto, a Financing Default, or (C) if the Board determines in good faith that immediately priorto such purchase there shall exist a Financing Default which prohibits such purchase, dividend or distribution ((A) through (C) collectively the “Cash Deferral Conditions”), the portion of the cash payment so affected may bemade by Investors’ delivery of preferred units of Investors with a liquidation preference equal to the balance of the purchase price; which preferred units shall accrue yield annually at the “prime rate” published in The Wall StreetJournal on the date of issuance, which yield shall be payable at maturity or upon payment of distributions by Investors (other than tax distributions). Each such preferred unit shall as of its issuance be deemed to have basic contributions made withrespect to such unit equal to (A) the portion of the cash payment paid by the issuance of such preferred units divided by (B) the number of preferred units so issued in the repurchase. Any such preferred units issued shall bepromptly redeemed (i) when the Cash Deferral Condition which prompted their issuance no longer exists, (ii) upon consummation of a Public Offering of the Company or Michael Foods Holdings, Inc. (or their successors) (to the extent allowedby the underwriters of such Public Offering), or (iii) upon a Change in Control from net cash proceeds, if any, payable to Investors or its unitholders; to the extent that sufficient net cash proceeds are not so payable, the preferred unitsshall be cancelled in exchange for such non-cash consideration received by unitholders in the Change in Control having a fair market value equal to the principal of and accrued yield on the preferred units. If a yield is required to be paid on anypreferred units prior to maturity and any Cash Deferral Conditions exist, such yield may be cumulated and accrued until and to the extent that such prohibition no longer exists. 

 
6.Noncompetition. 
6.1Competitive Activity. Executive shall be deemed to have engaged in “Competitive Activity” if, during the period commencing on the date hereof and ending on the second anniversary of the date Executive’s employment withInvestors or its subsidiaries terminates, (i) Executive, for himself or on behalf of any other person, firm, partnership, corporation, or other entity, engages, directly or indirectly, as an executive, agent, representative, consultant,partner, shareholder or holder of any other financial interest, in (A) Cargill, Inc. or (B) any business that competes with Investors or its subsidiaries in the business of the production, distribution, or sales of eggs or egg products,refrigerated potato products or any

 

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other business engaged in by the Company or its Subsidiaries at the time of termination of Executive’s employment (a “Competing Business”), it being understood and agreedthat Executive’s activities shall not satisfy this clause (i)(B) where Executive is employed by a person, firm, partnership, corporation, or other entity engaged in a variety of activities, including the Competing Business, and Executive is notengaged in or responsible for the Competing Business of such entity. Executive may also, without satisfying clause, (i) be a passive owner of not more than 2% of the outstanding publicly traded stock of any class of a Competing Business so longas Executive has no active participation in the business of such entity, except to the extent permitted above; or (ii) Executive (A) directly or indirectly through another entity, induces or attempts to induce any employee of the Companyor its subsidiaries to leave the employ of the Company or its subsidiaries, or in any way interfere with the relationship between the Company or any of its subsidiaries and any employee thereof, (B) knowingly hires any person who was anemployee of the Company or any of its subsidiaries within 180 days prior to the time such employee was hired by Executive, (C) induces or attempts to induce any customer, supplier, licensee or other business relation of the Company or any ofits subsidiaries to cease doing business with the Company or its subsidiaries or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company or any subsidiary or (D) directly orindirectly acquires or attempt to acquire an interest in any business relating to the business of the Company or any of its subsidiaries and with which the Company or any of its subsidiaries has entertained discussions or has requested and receivedinformation relating to the acquisition of such business by the Company or its subsidiaries in the one-year period immediately preceding Executive’s termination of employment with the Company. 

6.2 Activity Date. If Executive engages in Competitive Activity, the “Activity Date” shall be the first date onwhich Executive engages in such Competitive Activity. 

6.3 Repayment of Proceeds. If Executive engages in CompetitiveActivity, then Executive shall be required to pay to Investors, within ten business days following the Activity Date, an amount equal to the excess, if any, of (A) the aggregate proceeds Executive received upon the sale or other disposition ofExecutive’s Units, over (B) the aggregate Cost of such Units. 

 
7.Miscellaneous. 
7.1Transfers to Permitted Transferees. Prior to the transfer of Units to a Permitted Transferee (other than a transfer in connection with or subsequent to a Change in Control), the Executive shall deliver to Investors a written agreement of theproposed transferee (a) evidencing such Person’s undertaking to be bound by the terms of this Agreement and (b) acknowledging that the Units transferred to such Person will continue to be Units for purposes of this Agreement in thehands of such Person. Any transfer or attempted transfer of Units in violation of any provision of this Agreement or the Securityholders Agreement shall be void, and Investors shall not record such transfer on its books or treat any purportedtransferee of such Units as the owner of such Units for any purpose. 

7.2 Deemed Transfer of Units. If Investors shalldeliver, at the time and place and in the amount and form provided in this Agreement, the consideration for the Units to be repurchased in accordance with the provisions of this Agreement, then from and after such time,

 

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the Person from whom such units are to be repurchased shall no longer have any rights as a holder of such units (other than the right to receive payment of such consideration in accordance withthis Agreement), and such Units shall be deemed purchased in accordance with the applicable provisions hereof and Investors shall be deemed the owner and holder of such Units, whether or not certificates therefor have been delivered as required bythis Agreement. 

7.3 Recapitalizations, Exchanges, Etc., Affecting Units. The provisions of this Agreement shall apply,to the full extent set forth herein with respect to Units, to any and all securities of Investors or any successor or assign of Investors (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchangefor, or in substitution of the Units, by reason of any dividend payable in units, issuance of units, combination, recapitalization, reclassification, merger, consolidation or otherwise. 

7.4 Executive’s Employment by Investors. Nothing contained in this Agreement shall be deemed to obligate Investors or anysubsidiary of Investors to employ the Executive in any capacity whatsoever or to prohibit or restrict Investors (or any such subsidiary) from terminating the employment of the Executive at any time or for any reason whatsoever, with or withoutCause. 

7.5 Indemnification by Executive. Executive agrees to indemnify and hold harmless Investors against any and alllosses, liabilities, damages, judgments, fines, fees or expenses, including, without limitation, attorneys’ fees (for purposes of this Section 7.5, hereinafter “Losses”), incurred in connection with any failure to withholdamounts relating to the Units acquired herein. In the event there is a determination within the meaning of Section 1313 of the Internal Revenue Code of 1986, as amended, that Investors properly failed to withhold amounts relating to the Unitsacquired herein by Executive, Executive shall provide Investors with a Form 4669 or other suitable evidence of payment of taxes (which will include a cancelled check or a copy of the relevant signed tax return) with respect to the receipt of anydistributions relating to the Units acquired herein by Executive. 

7.6 Binding Effect. The provisions of this Agreementshall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns; provided, however, that no Permitted Transferee shall derive any rights under this Agreement unless anduntil such Permitted Transferee has executed and delivered to Investors a valid undertaking and becomes bound by the terms of this Agreement. 

7.7 Amendment; Waiver. This Agreement may be amended only by a written instrument signed by the parties hereto. No waiver by any party hereto of any of the provisions hereof shall be effectiveunless set forth in a writing executed by the party so waiving. 

7.8 Governing Law. This Agreement shall be governed byand construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed therein. 

7.9 Jurisdiction. Any suit, action or proceeding with respect to this Agreement, or any judgment entered by any court in respect of any thereof, shall be brought in any court of competentjurisdiction in the State of Delaware, and each of Investors and the members of the

 

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Executive Group hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. Each of the members of the Executive Group andInvestors hereby irrevocably waives any objections which it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in theState of Delaware, and hereby further irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in any inconvenient forum. 

7.10 Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given whenpersonally delivered, telecopied (with confirmation of receipt), one day after deposit with a reputable overnight delivery service (charges prepaid) and three days after deposit in the U.S. Mail (postage prepaid and return receipt requested) to theaddress set forth below or such other address as the recipient party has previously delivered notice to the sending party. 

(a) If to Investors: 

Michael Foods Investors, LLC 

c/o Thomas H. Lee Partners, L.P. 

100 Federal Street 

Boston, MA 02110 

Attention: Anthony DiNovi 

      Kent Weldon 

      Joshua Bresler 

Facsimile: (617) 227-3514 

with copies to: 

Weil, Gotshal & Manges LLP 

100 Federal Street 

Boston, MA 02110 

Attention: Marilyn French 

Facsimile: (617) 772-8333 

(b) If to the Executive, to the address as shown on the unit register of Investors. 

7.11 Rights Cumulative; Waiver. The rights and remedies of the Executive and Investors under this Agreement shall be cumulative and not exclusive of any rights or remedies which either would otherwise have hereunder or at law or inequity or by statute, and no failure or delay by either party in exercising any right or remedy shall impair any such right or remedy or operate as a waiver of such right or remedy, nor shall any single or partial exercise of any power or rightpreclude such party’s other or further exercise or the exercise of any other power or right. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding orsucceeding breach and no failure by either party to exercise any right or privilege hereunder shall be deemed a waiver of such party’s rights or privileges hereunder or shall be deemed a waiver of such party’s rights to exercise the sameat any subsequent time or times hereunder. 

 

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7.12 Counterparts. This Agreement may be executed in separate counterparts (includingby means of telecopied signature pages), and by different parties on separate counterparts each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 

7.13 Integration. This Agreement and the documents referred to herein or delivered pursuant hereto which form a part hereof containthe entire understanding of the parties with respect to the subject matter hereof and thereof. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof otherthan those expressly set forth herein and therein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

*    *    *    *    * 

 

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IN WITNESS WHEREOF, the parties have executed this Senior Management Unit SubscriptionAgreement as of the date first above written. 

 
MICHAEL FOODS INVESTORS, LLCBy: 
/s/ Gregg A. Ostrander
Its: 
Chairman /President/CEO
EXECUTIVE
/s/ Mark W. Westphal
Mark W. Westphal
 

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