Document:

exv4w4

 

EXHIBIT 4.4

SIPEX CORPORATION

STAND-ALONE STOCK OPTION AGREEMENT

I. NOTICE OF STOCK OPTION GRANT

     Clyde R. Wallin

 

 

     You have been granted a Nonstatutory Stock Option to purchase Common Stock of the Company,
subject to the terms and conditions of this Agreement, as follows:

	 	 	 	 	 
	 

	 	Date of Grant
	 	1/17/2006
	 
	 	 	 	 
	 

	 	Vesting Commencement Date
	 	1/17/2006
	 
	 	 	 	 
	 

	 	Exercise Price per Share
	 	$2.075
	 
	 	 	 	 
	 

	 	Total Number of Shares Granted
	 	125,000
	 
	 	 	 	 
	 

	 	Total Exercise Price
	 	$259,375.00
	 
	 	 	 	 
	 

	 	Term/Expiration Date:
	 	1/17/2016
	 
	 	 	 	 
	 

	 	Vesting Schedule:	 	 

     This Option shall vest and may be exercised, in whole or in part, in accordance with the
following schedule, subject to the Optionee continuing to be a Service Provider on such dates:

	 	 	 
	1/17/2007
	 	1/4th shares
	 	 	 
	2/17/2007
	 	1/48 vesting monthly thereafter

     Termination Period

     This Option shall vest and become exercisable in accordance with the above schedule, but is
subject to acceleration of vesting and other provisions, including but not limited to change of
control provisions, pursuant to an Offer Letter from Sipex
Corporation effective April 5,
2004.

II. AGREEMENT

     1. Definitions. As used herein, the following definitions shall apply:

 

 

          (a) “Agreement” means this stock option agreement between the Company and Optionee
evidencing the terms and conditions of this Option.

          (b) “Applicable Laws” means the requirements relating to the administration of stock
options under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any
stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable
laws of any foreign country or jurisdiction that may apply to this Option.

          (c) “Board” means the Board of Directors of the Company or any committee of the Board
that has been designated by the Board to administer this Agreement.

          (d) “Cause” means conduct involving one or more of the following: (i) the substantial
and continuing failure of the Optionee, after notice thereof, to render services to the Company or
any Parent or Subsidiary in accordance with the terms or requirements of Optionee’s employment or
business relationship; (ii) gross negligence, willful misconduct, dishonesty, fraud or breach of
fiduciary duty to the Company or any Parent or Subsidiary; (iii) the commission of an act of
embezzlement or fraud; (iv) deliberate disregard of the rules or policies of the Company or any
Parent or Subsidiary, or breach of an employment or other agreement with the Company or any Parent
or Subsidiary, either of which results in significant direct or indirect loss, damage or injury to
the Company or any Parent or Subsidiary; (v) the unauthorized disclosure of any trade secret or
confidential information of the Company or any Parent or Subsidiary; or (vi) the commission of an
act which constitutes unfair competition with the Company or any Parent or Subsidiary or which
induces any customer or supplier to breach a contract with the Company or any Parent or Subsidiary.

          (e) “Change in Control” means

                    (1) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing sixty percent (60%) or more of the total
voting power represented by the Company’s then outstanding voting securities; or

                    (2) a change in the composition of the Board occurring within a two-year period, as a result
of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors”
will mean directors who either (A) are directors of the Company as of June 7, 2005, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority
of the Incumbent Directors at the time of such election or nomination (but will not include an
individual whose election or nomination is in connection with an actual or threatened proxy contest
relating to the election of directors to the Company); or

                    (3) the date of the consummation of a merger or consolidation of the Company with any other
corporation that has been approved by the stockholders of the Company, other than a merger or
consolidation which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) more than sixty percent (60%) of the total voting power
represented by the voting securities of the Company or such

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surviving entity outstanding immediately after such merger or consolidation, or the
stockholders of the Company approve a plan of complete liquidation of the Company; or

                    (4) the date of the consummation of the sale or disposition by the Company of all or
substantially all the Company’s assets.

          Notwithstanding the foregoing, a “Change in Control” shall not include any transaction or
series of transactions involving the Company’s issuance of any equity or debt securities to third
parties for capital raising purposes.

          (f) “Code” means the Internal Revenue Code of 1986, as amended.

          (g) “Common Stock” means the common stock of the Company.

          (h) “Company” means SIPEX Corporation, a Delaware corporation.

          (i) “Consultant” means any person, including an advisor, engaged by the Company or a
Parent or Subsidiary to render services to such entity.

          (j) “Director” means a member of the Board.

          (k) “Disability” means total and permanent disability as defined in Section 22(e)(3)
of the Code.

          (l) “Employee” means any person, including Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, its Parent, any Subsidiary, or any successor.
Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to
constitute “employment” by the Company.

          (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (n) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

                    (1) If the Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, or is actively traded over-the-counter, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or system on the date of grant, or if unavailable, for the last market trading day
prior to date of grant, as reported in The Wall Street Journal or such other source as the
Administrator deems reliable;

                    (2) If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked
prices for the Common Stock on the last market trading day prior to the day of determination; or

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                    (3) In the absence of an established market for the Common Stock, the Fair Market Value
thereof shall be determined in good faith by the Board.

          (o) “Nonstatutory Stock Option” means an Option not intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder.

          (p) “Notice of Grant” means a written notice, in Part I of this Agreement, evidencing
certain the terms and conditions of this Option grant. The Notice of Grant is part of the Option
Agreement.

          (q) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

          (r) “Option” means this stock option.

          (s) “Optioned Stock” means the Common Stock subject to this Option.

          (t) “Optionee” means the person named in the Notice of Grant or such person’s
successor.

          (u) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code.

          (v) “Service Provider” means an Employee, Director or Consultant.

          (w) “Share” means a share of the Common Stock, as adjusted in accordance with Section
11 of this Agreement.

          (x) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing,
as defined in Section 424(f) of the Code.

     2. Grant of Option. The Board hereby grants to the Optionee named in the Notice of
Grant attached as Part I of this Agreement the Option to purchase the number of Shares, as set
forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the
“Exercise Price”), subject to the terms and conditions of this Agreement.

     3. Exercise of Option.

          (a) Right to Exercise. This Option is exercisable during its term in accordance with
the Vesting Schedule set out in the Notice of Grant and the applicable provisions of this
Agreement.

          (b) Method of Exercise. This Option is exercisable by delivery of an exercise notice,
in the form attached as Exhibit A (the “Exercise Notice”), which shall state the election
to exercise the Option, the number of Shares in respect of which the Option is being exercised (the
“Exercised Shares”), and such other representations and agreements as may be required by the
Company. The Exercise Notice shall be completed by the Optionee and delivered to the Secretary of

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the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise
Price as to all Exercised Shares. This Option shall be deemed to be exercised upon receipt by the
Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price.

          (c) Legal Compliance. No Shares shall be issued pursuant to the exercise of this
Option unless such issuance and exercise complies with Applicable Laws. Assuming such compliance,
for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the
date the Option is exercised with respect to such Exercised Shares.

          (d) Buyout Provisions. The Board may at any time offer to buy out for a payment in
cash or Shares an Option previously granted based on such terms and conditions as the Board shall
establish and communicate to the Optionee at the time that such offer is made.

     4. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:

          (a) cash or check;

          (b) consideration received by the Company under a cashless exercise program implemented by the
Company;

          (c) surrender of other Shares which (i) in the case of Shares acquired upon exercise of an
option, have been owned by the Optionee for more than six (6) months on the date of surrender, and
(ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the
Exercised Shares.

     5. Non-Transferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by the Optionee. The terms of this Agreement shall be binding upon the
executors, administrators, heirs, successors and assigns of the Optionee.

     6. Term of Option. This Option may be exercised only within the term set out in the
Notice of Grant, and may be exercised during such term only in accordance with the terms of this
Agreement. Notwithstanding any other provision of this Agreement, in no event shall this Option be
exercised later than the Term/Expiration Date provided.

     7. Termination of Relationship as a Service Provider. If the Optionee ceases to be a
Service Provider (other than for death or Disability), this Option may be exercised for a period of
three (3) months after the date of such termination (but in no event later than the expiration date
of this Option as set forth in the Notice of Grant) to the extent that the Option is vested on the
date of such termination. To the extent that the Optionee does not exercise this Option within the
time specified herein, the Option shall terminate.

     8. Disability of Optionee. If the Optionee ceases to be a Service Provider as a
result of the Optionee’s Disability, this Option may be exercised for a period of one hundred and
eighty (180) days after the date of such termination (but in no event later than the expiration
date of this Option as set forth in the Notice of Grant) to the extent that the Option is vested on
the date of such

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termination. To the extent that Optionee does not exercise this Option within the time
specified herein, the Option shall terminate.

     9. Death of Optionee. If the Optionee dies while a Service Provider, the Option may
be exercised at any time within one hundred and eighty (180) days following the date of death (but
in no event later than the expiration date of this Option as set forth in the Notice of Grant), by
the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent that the Optionee was entitled to exercise the Option at the
date of death. If, after death, the Optionee’s estate or a person who acquired the right to
exercise the Option by bequest or inheritance does not exercise the Option within the time
specified herein, the Option shall terminate.

     10. Termination for Cause. If the Optionee is terminated for Cause, this Option shall
terminate immediately upon the Optionee’s receipt of written notice of such termination and shall
thereafter not be exercisable to any extent whatsoever.

     11. Adjustments upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

          (a) Subject to any required action by the stockholders of the Company, the number of shares of
Common Stock and class of securities covered by this Option, as well as the price per share of
Common Stock covered by this Option and the vesting schedule, shall be proportionately adjusted (or
a substituted option may be granted) for any increase or decrease in the number of issued shares of
Common Stock resulting from a stock split, reverse stock split, stock dividend, extraordinary cash
dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares,
liquidation, spin-off, split-up or other similar event or reclassification of the Common Stock, or
any other increase or decrease in the number of issued shares of Common Stock effected without
receipt of consideration by the Company; provided, however, that conversion of any convertible
securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Board or its designated committee, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to this Option.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Board or its designated committee shall notify Optionee as soon as
practicable prior to the effective date of such proposed transaction. The Board or its designated
committee in its discretion may provide for the Optionee to have the right to exercise his or her
Option until fifteen (15) days prior to such transaction as to all of the Optioned Stock covered
thereby, including Shares as to which the Option would not otherwise be exercisable. To the extent
it has not been previously exercised, the Option will terminate immediately prior to the
consummation of such proposed

          (c) Merger or Change in Control. In the event of a merger of the Company with or into
another corporation, or a Change in Control, the Option shall be assumed or an equivalent option
substituted by the successor corporation or a Parent or Subsidiary of the successor

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corporation. In the event that the successor corporation in a merger or Change in Control
refuses to assume or substitute for the Option, then the Optionee shall fully vest in and have the
right to exercise the Option as to all of the Optioned Stock, including Shares as to which it would
not otherwise be vested or exercisable. If the Option is not assumed or substituted in connection
with a merger or Change in Control, the Board or its designated committee shall notify the Optionee
in writing or electronically that the Option shall be fully exercisable for a period of fifteen
(15) days from the date of such notice, and the Option shall terminate upon the expiration of such
period. For the purposes of this paragraph, the Option shall be considered assumed if, following
the merger or Change in Control, the option confers the right to purchase or receive, for each
Share subject to the Option immediately prior to the merger or Change in Control, the consideration
(whether stock, cash, or other securities or property) received in the merger or Change in Control
by holders of Common Stock for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration chosen by the holders of
a majority of the outstanding Shares); provided, however, that if such consideration received in
the merger or Change in Control is not solely common stock of the successor corporation or its
Parent, the Board or its designated committee may, with the consent of the successor corporation,
provide for the consideration to be received upon the exercise of the Option, for each Share
subject to the Option, to be solely common stock of the successor corporation or its Parent equal
in fair market value to the per share consideration received by holders of common stock in the
merger or Change in Control.

     12. Notices. Any notice to be given to the Company hereunder shall be in writing and
shall be addressed to the Company at its then current principal executive office or to such other
address as the Company may hereafter designate to the Optionee by notice as provided in this
Section. Any notice to be given to the Optionee hereunder shall be addressed to the Optionee at
the address set forth beneath his signature hereto, or at such other address as the Optionee may
hereafter designate to the Company by notice as provided herein. A notice shall be deemed to have
been duly given when personally delivered or mailed by registered or certified mail to the party
entitled to receive it.

     13. Tax Consequences. Some of the federal tax consequences relating to this Option,
as of the date of this Option, are set forth below. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND
THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER
BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          (a) Exercising the Option. The Optionee may incur regular federal income tax
liability upon exercise of a Nonstatutory Stock Option (an “NSO”). The Optionee will be treated as
having received compensation income (taxable at ordinary income tax rates) equal to the excess, if
any, of the Fair Market Value of the Exercised Shares on the date of exercise over their aggregate
Exercise Price. If the Optionee is an Employee or a former Employee, the Company will be required
to withhold from his or her compensation or collect from Optionee and pay to the applicable taxing
authorities an amount in cash equal to a percentage of this compensation income at the time of
exercise, and may refuse to honor the exercise and refuse to deliver Shares if such withholding
amounts are not delivered at the time of exercise.

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          (b) Disposition of Shares. If the Optionee holds NSO Shares for at least one year,
any gain realized on disposition of the Shares will be treated as long-term capital gain for
federal income tax purposes.

     14. Entire Agreement; Governing Law. This Agreement constitute the entire agreement
of the parties with respect to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the subject matter hereof,
and may not be modified adversely to the Optionee’s interest except by means of a writing signed by
the Company and Optionee. This agreement is governed by the internal substantive laws, but not the
choice of law rules, of California.

     15. NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE
PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN
OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUES ENGAGEMENT AS A SERVICE PROVIDER FOR THE
VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE
COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.

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     By your signature and the signature of the Company’s representative below, you and the Company
agree that this Option is granted under and governed by the terms and conditions of this Agreement.
Optionee has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice
of counsel prior to executing this Agreement and fully understands all provisions of this
Agreement. Optionee hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board upon any questions relating to this Agreement. Optionee further
agrees to notify the Company upon any change in the residence address indicated below.

	 	 	 	 	 	 	 
	OPTIONEE

	 	 	 	SIPEX CORPORATION	 	 
	 
	 	 	 	 	 	 
	/s/ Clyde R. Wallin

	 	 	 	/s/ Ralph Schmitt	 	 
	 

Signature

	 	 	 	 

By: Ralph Schmitt, President & CEO
	 	 
	 
	 	 	 	 	 	 
	Clyde R. Wallin
	 	 	 	 	 	 
	 

Name

	 	 	 	 	 	 
	 
	 

Residence Address

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

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EXHIBIT A

SIPEX CORPORATION

EXERCISE NOTICE

SIPEX Corporation

233 South Hillview Drive

Milpitas, CA 95053

Attention:

     1. Exercise of Option. Effective as of today,                     , 200_, the undersigned
(“Purchaser”) hereby elects to purchase                      shares (the “Shares”) of the Common Stock of
SIPEX Corporation (the “Company”) under and pursuant to the Stock Option Agreement dated
                     (the “Option Agreement”). The purchase price for the Shares shall be $___, as
required by the Option Agreement.

     2. Delivery of Payment. Purchaser herewith delivers to the Company the full purchase
price for the Shares.

     3. Representations of Purchaser. Purchaser acknowledges that Purchaser has received,
read and understood the Option Agreement and agrees to abide by and be bound by their terms and
conditions.

     4. Rights as Shareholder. Until the issuance (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares,
no right to vote or receive dividends or any other rights as a stockholder shall exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option. The Shares so acquired shall be
issued to the Optionee as soon as practicable after exercise of the Option. No adjustment will be
made for a dividend or other right for which the record date is prior to the date of issuance,
except as provided in Section 11 of the Option Agreement.

     5. Tax Consultation. Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser
represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in
connection with the purchase or disposition of the Shares and that Purchaser is not relying on the
Company for any tax advice.

     6. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the
benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Exercise Notice shall be binding upon Optionee and his or her heirs,
executors, administrators, successors and assigns.

 

 

     7. Interpretation. Any dispute regarding the interpretation of this Exercise Notice
shall be submitted by Optionee or by the Company forthwith to the Administrator which shall review
such dispute at its next regular meeting. The resolution of such a dispute by the Administrator
shall be final and binding on all parties.

     8. Entire Agreement; Governing Law. The Option Agreement is incorporated herein by
reference. This Agreement, and the Option Agreement constitute the entire agreement of the parties
with respect to the subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not
be modified adversely to the Purchaser’s interest except by means of a writing signed by the
Company and Purchaser. This agreement is governed by the internal substantive laws, but not the
choice of law rules, of California.

	 	 	 	 	 	 	 
	Submitted by:

	 	 	 	Accepted by:	 	 
	 
	 	 	 	 	 	 
	OPTIONEE

	 	 	 	SIPEX CORPORATION	 	 
	 
	 	 	 	 	 	 
	 
	 

Signature

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 
	 

Print Name

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 
	 

Address:

	 	 	 	 

Address:
	 	 
	 

	 	 	 	233 South Hillview Drive	 	 
	 
	 

	 	 
	 	Milpitas, CA 95053	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	Date Received:	 	 	 	 
	 

	 	 	 

	 	 

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Exhibit 10.1

THIRD AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

     THIS THIRD AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered
into as of September 19, 2006, by and among Swift Foods Company, a Delaware corporation (the
“Company”), and Dennis Henley (“Executive”).

RECITALS

     WHEREAS, the Company and Executive are parties to the Executive Employment Agreement, dated
May 20, 2002, as amended by that certain First Amendment to Executive Employment Agreement, dated
July 12, 2002, and that certain Second Amendment to Executive Employment Agreement, dated November
3, 2004, (as so amended, the “Employment Agreement”);

     WHEREAS, capitalized terms used herein but not defined herein shall have the meanings assigned
to them in the Employment Agreement; and

     WHEREAS, because the parties have mutually determined that the terms of Executive’s employment
with the Company and its affiliates should be modified, the Employment Agreement is being amended
to reflect certain agreements regarding such modification and Executive’s ongoing role with the
Company.

AGREEMENT

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1. Transition Period; Termination of Employment. The parties hereby represent and warrant
that prior to the date hereof, Executive’s employment relationship with the Company and its
affiliates was pursuant to and governed solely by the Employment Agreement. In consideration of
the benefits to be received by Executive pursuant to the terms of this Amendment, Executive agrees
to continue to serve as the Chief Operating Officer — North America and to perform the duties
associated with such position as provided in the Employment Agreement in accordance with provisions
of the Employment Agreement from the date hereof until September 18, 2007. From and after
September 19, 2007, Executive agrees to be employed as a consultant and advisor to the Company’s
Chief Executive Officer, or his designee, providing consulting and advisory services concerning
all aspects of the Company’s business, including but not limited to, consulting regarding
operational matters, employee relations and strategic planning (the “Consulting Services”) (a)
which shall include approximately 50 days of service, as requested by the Company from time to
time, from September 19, 2007 until September 18, 2008, and (b) which shall include approximately
30 days of service annually, as requested by the Company from time to time, from September 19, 2008
until September 19, 2010 (such date, the “Termination Date”). Executive shall continue to be an
employee of the Company during the period in which he is providing the Consulting Services (the
“Consulting Period”). Unless otherwise specifically authorized by this Amendment or any other
agreement between the Company and Executive, during the Consulting Period, Executive shall have no
authority to transact any business or make any representations or promises in the name of the

 

 

Company or its affiliates and shall not hold himself out to be an officer or senior executive of
the Company. In addition, effective as of September 18, 2007, any and all of Executive’s other
appointments and positions (including positions as a director) that he may hold with the Company or
any of its affiliates shall be terminated. Executive agrees to execute all further documents that
the Company may reasonably request of him to effectuate such terminations.

2. Transition Consideration. In consideration of Executive’s agreement to continue to
serve as Chief Operating Officer — North America until September 18, 2007, to provide the
Consulting Services to the Company thereafter until the Termination Date in accordance with
paragraph 1, and Executive’s execution and delivery of the Release described in Section 5(a), the
Company shall cause to be paid to Executive the following consideration:

          (a) Executive shall continue to be paid (i) his current Annual Base Salary in accordance with
the customary payroll practices of the Company until September 18, 2008, and shall continue to be
eligible to receive his full annual Bonus for the Company’s 2008 fiscal year during such period and
(ii) an amount equal to $300,000 as an Annual Base Salary to be paid in accordance with the
customary payroll practices of the Company for the period beginning on September 19, 2008 and
ending on the Termination Date.

          (b) Except as provided in the following sentence, until the Termination Date, Executive shall
continue to be entitled to receive, or participate in, as applicable, all elements and items of
compensation set forth in subparagraph 2(b) of the Employment Agreement, including without
limitation, all Investment Plans, Welfare Plans, perquisites, vacation days (which shall be 30 days
of vacation for the years ended September 19, 2006 and September 19, 2007) and expense
reimbursement, except that after September 19, 2008 (x) Executive shall not be eligible to receive
any Bonuses under subparagraph 2(b)(ii) or to any vacation days and (y) the Annual Base Salary
shall be paid in the manner set forth in subparagraph 2(a) above. The period from September 19,
2007 until the Termination Date shall not be credited against any period for which Executive and/or
members of his family are entitled to continuation coverage under Section 4980B of the Internal
Revenue Code of 1986, as amended, and Sections 601-609 of the Employee Retirement Income Security
Act of 1974, as amended.

3. Termination Consideration. In connection with Executive’s termination of employment
and, with respect to clause (a), the execution and delivery of the Release described in Section
5(b), the Company shall cause to be paid to Executive the following consideration:

          (a) an amount equal to the full amount of the Accrued Obligations, including any compensation
for accrued vacation days not used on or before September 19, 2008, by the close of business on the
third business day following the Reaffirmation Date;

          (b) an amount equal to the Accrued Investments, payable in accordance with the terms and
conditions of the Investment Plans; and

          (c) an amount equal to the premiums payable with respect to the Executive’s COBRA continuation
coverage for the period beginning September 19, 2010 and ending on September 30, 2011 by the close
of business on the third business day following the Reaffirmation Date, in each case less any
applicable withholding and other deductions.

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4. Taxes. The payments to Executive hereunder shall be subject to applicable federal,
state and local withholding taxes. Executive agrees that, to the extent that any individual
federal or state taxes of any kind may be due as a result of any such payment to Executive,
Executive shall be solely responsible for such taxes and will indemnify, defend, and hold harmless
the Company in the event there is any claim against the Company for such taxes.

5. General Releases.

          (a) The Company’s obligations under paragraph 2(a) are subject to the execution, delivery and
non-revocation of a general release in the form attached as Exhibit A (the “Release”).

          (b) The Company’s obligations under paragraph 3(a) are subject to the execution, delivery and
non-revocation of a general release in the form attached as Exhibit B (the “Termination Release”).

6. Cooperation. Executive agrees to cooperate with the Company as reasonably requested by
the Company by responding to questions, attending depositions, administrative proceedings and court
hearings, executing documents, and cooperating with the Company and its accountants and legal
counsel with respect to legal and intellectual property matters, business issues, and/or claims,
administrative or arbitral proceedings and litigation of which he has or is believed to have
personal or corporate knowledge. Executive further agrees, except as required by subpoena or other
applicable legal process (after the Company has been given reasonable notice and opportunity to
seek relief from such subpoena or other legal process), to maintain, in strict confidence, any
information of which he has knowledge regarding current and/or future claims, administrative or
arbitral proceedings and litigation. Executive agrees, except as required by subpoena or other
applicable legal process (after the Company has been given reasonable notice and opportunity to
seek relief from such requirement), not to communicate with any party(ies), their legal counsel or
others adverse to the Company in any such claims, administrative or arbitral proceedings or
litigation except through the Company’s designated legal counsel. Executive also shall make
himself available at reasonable times and upon reasonable notice to answer questions or provide
other information within his possession and requested by the Company relating to the Company, its
affiliates and/or their respective operations in order to facilitate the smooth transition of
Executive’s duties to his successor.

7. Termination of Consulting Arrangement. Notwithstanding any contrary provision contained
elsewhere in this Amendment, the consulting arrangement between the Company and Executive created
by paragraph 1 shall terminate automatically upon the death of Executive; provided,
however, that termination of the consulting arrangement shall not affect the duties and
obligations set forth in the other sections of this Amendment or the applicable sections of the
Employment Agreement, including, without limitation, paragraph 2 of this Amendment.

8. Non-Disparagement. Executive and the Company each agrees to refrain from engaging in
any conduct, or from making any comments or statements, that have the purpose or effect of harming
the reputation or goodwill of Executive, on the one hand, or the Company or any of its affiliates
on the other hand.

3

 

9. Injunctive Relief. Executive hereby expressly acknowledges that any breach or
threatened breach by him of any of his obligations set forth in paragraphs 7 and 9 of this
Amendment and paragraphs 6 and 8 of the Employment Agreement may result in significant and
continuing injury and irreparable harm to the Company, the monetary value of which would be
impossible to establish. Therefore, Executive agrees that the Company shall be entitled to
injunctive relief in a court of appropriate jurisdiction with respect to such provisions. Such
injunctive remedies shall not be deemed the exclusive remedies, but shall be in addition to all
remedies available at law or in equity to the Company, including, without limitation, the recovery
of damages from Executive and Executive’s agents. Further, if Executive violates the covenants and
restrictions herein and the Company brings legal action for injunctive or other equitable relief,
Executive agrees that the Company shall not be deprived of the benefit of the full period of the
restrictive covenant, as a result of the time involved in obtaining such relief. Accordingly,
Executive agrees that the provisions in this paragraph shall have a duration determined pursuant to
paragraph 9 of the Employment Agreement, computed from the date the relief is granted. Executive
also hereby waives any requirement for the securing or posting of any bond in connection with the
obtaining of any such equitable relief. The parties further agree that this provision is a
material inducement to the Company to enter into this Amendment.

10. Mail. The Company may open and answer, and authorize others to open and answer, all
mail communications and other correspondence addressed to Executive relating to the Company or any
of its affiliates or to Executive’s employment with the Company or any of its affiliates, and
Executive shall promptly refer to the Company all inquiries, mail communications, and
correspondence received by him relating to the Company or any of its affiliates or to Executive’s
employment with the Company or any of its affiliates. If any such mail, communications or
correspondence received by the Company includes any threat of any claim against Executive
personally, the Company shall promptly notify Executive thereof. The Company will promptly forward
to Executive any of Executive’s personal mail, communications or correspondence received by the
Company, unopened to the extent it is reasonably ascertained to be of a personal nature.

11. Indemnification. EXECUTIVE AGREES, WARRANTS, AND REPRESENTS TO THE COMPANY THAT
EXECUTIVE HAS FULL EXPRESS AUTHORITY TO RELEASE AND SETTLE ALL CLAIMS THAT ARE THE SUBJECT OF THE
RELEASES ATTACHED AS EXHIBITS A AND B OF THIS AMENDMENT AND THAT EXECUTIVE HAS NOT GIVEN OR
MADE AND WILL NOT GIVE OR MAKE ANY ASSIGNMENT TO ANYONE, INCLUDING EXECUTIVE’S FAMILY OR LEGAL
COUNSEL, OF ANY SUCH CLAIMS AGAINST ANY PERSON OR ENTITY ASSOCIATED WITH OR ANY COMPANY PARTIES.
TO THE EXTENT THAT ANY SUCH CLAIMS MAY BE BROUGHT BY PERSONS OR ENTITIES CLAIMING BY, THROUGH OR
UNDER EXECUTIVE, HIS RESPECTIVE HEIRS, SUCCESSORS, OR ASSIGNS, THEN EXECUTIVE FURTHER AGREES TO
INDEMNIFY, DEFEND, AND HOLD HARMLESS THE COMPANY OR ANY COMPANY PARTY, ITS AGENTS, AND ITS
SUCCESSORS FROM ANY LAWSUIT OR OTHER PROCEEDING, JUDGMENT, OR SETTLEMENT ARISING FROM SUCH CLAIMS.
EXECUTIVE FURTHER HEREBY ASSIGNS TO THE COMPANY ALL CLAIMS RELEASED BY EXECUTIVE PURSUANT TO THE
RELEASES ATTACHED AS EXHIBITS A AND B OF THIS AMENDMENT.

4

 

12. No Right to Additional Compensation. Except as provided in this Amendment, the
Employment Agreement as amended hereby, and in the Options, neither the Company nor any of its
predecessors, parents, successors, assigns or affiliates shall have any further obligation to
Executive in connection with the Employment Agreement or Executive’s employment by the Company or
any of its affiliates, including, but not limited to, severance, compensation (including but not
limited to deferred compensation, employment contracts, stock options, bonuses and commissions),
health insurance, life insurance, disability insurance, club dues, vehicle allowances, company
plane privileges, vacation pay, sick pay and any similar obligations.

13. Revocation. Executive acknowledges and agrees that he has 21 days following the
Termination Date to consider the execution and delivery of the Release, although he may sign the
Termination Date Release earlier. The parties agree that any change to this Amendment, whether
material or immaterial, shall not restart the running of this 21 day period, which the parties
agree begins upon the Termination Date. Upon execution of the Termination Date Release, Executive
will have 7 days to revoke the Release by delivery of a written notice to the Company. The Release
shall not become effective or enforceable and the consideration set forth in paragraph 3(a) of this
Amendment shall not be paid until after the expiration of this 7 day period without revocation by
Executive (the last day of such 7 day period being referred to herein as the “Reaffirmation Date”).
At its option, the Company may require, as a condition of Executive receiving the consideration
set forth in this Amendment, Executive to confirm in writing that he has not revoked this Amendment
during the 7 day period. Executive’s acceptance of any of the consideration set forth in paragraph
3 of this Amendment shall constitute his acknowledgment that he did not revoke paragraph 3 of this
Amendment during this 7 day period.

14. Employment Agreement. This Amendment replaces and supersedes in their entirety
Sections 1, 3, 4, and 10 and sub-section 2(a) of the Employment Agreement; provided that the
Company shall continue to be entitled to terminate the Executive’s employment for “Cause” as
defined and provided, and with the consequences set forth, in Section 3 and Section 4 of the
Employment Agreement (provided that no reference to Section 2(a) of the Employment Agreement
contained therein shall be deemed to be reference to the duties of the Executive under Section 1 of
this Amendment). Executive hereby acknowledges and affirms his agreement to the remaining
provisions of the Employment Agreement, including, without limitation, paragraphs 6 (Confidential
Information) and 9 (Non-Competition) of the Employment Agreement, provided however, that the term
of Non-Competition shall be for a term ending upon the earlier to occur of December 31, 2012 or the
twenty-four (24) month anniversary of the expiration or termination of the Consulting Period.
Executive also acknowledges and agrees that the consideration for his performance under paragraphs
6 and 9 of the Employment Agreement includes the consideration set forth in paragraph 3 of this
Amendment. In the event of a conflict between the terms of the Employment Agreement that remain in
effect and this Amendment, the terms of this Amendment shall control. For purposes of the
provisions of the Employment Agreement that remain in effect, “Date of Termination” shall have the
same meaning given to the term “Termination Date” in this Amendment.

15. Charter Provisions; Directors’ and Officers’ Liability Insurance Policy. The Company
agrees that it has not, as of the date hereof, amended the indemnification provisions included in

5

 

its Certificate of Incorporation or amended or terminated its directors’ and officers’ liability
insurance policy.

16. Applicable Law. This Amendment shall be governed by and construed in accordance with
the laws of the State of Delaware without reference to principles of conflict of laws.

17. Counterparts. This Amendment may be executed in two or more counterparts.

18. Advice to Consult with Attorney. Executive is advised to consult with an attorney
prior to executing this Amendment.

19. Survival. The terms and conditions of this Amendment shall survive the termination of
Executive’s employment.

[Remainder of page is intentionally blank.]

6

 

     IN WITNESS WHEREOF, Executive has hereunto set Executive’s hand and the Company has caused
this Amendment to be executed in its name on its behalf, all as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Dennis Henley	 	 
	 	 	 	 	 
	 	 	By: Dennis Henley	 	 
	 
	 	 	 	 	 	 
	 	 	SWIFT FOODS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sam Rovit	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Sam Rovit	 	 
	 

	 	Title:
	 	President and CEO	 	 

[SIGNATURE PAGE TO THIRD AMENDMENT TO EMPLOYMENT AGREEMENT]

 

 

EXHIBIT A

FORM OF RELEASE

     THIS RELEASE (this “Agreement”) is made as of September 19, 2006, by and among Swift
Foods Company, a Delaware corporation (the “Company”), and Dennis Henley (“Executive”).

RECITALS

     WHEREAS, the Company and Executive are parties to the Executive Employment Agreement, dated
May 20, 2002, as amended by that certain First Amendment to Executive Employment Agreement, dated
July 12, 2002, that certain Second Amendment to Executive Employment Agreement, dated November 3,
2004, and that certain Third Amendment to Executive Employment Agreement, dated September 19, 2006
(as so amended, the “Employment Agreement”);

     WHEREAS, capitalized terms used herein but not defined herein shall have the meanings assigned
to them in the Employment Agreement; and

     WHEREAS, Executive’s employment with the Company is being modified as contemplated by the
Third Amendment to Executive Employment Agreement, and Executive and the Company desire to enter
into certain releases as provided herein:

AGREEMENTS:

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

          1. EXECUTIVE, ON BEHALF OF HIMSELF, HIS FAMILY, ATTORNEYS, HEIRS, ESTATE, AGENTS, EXECUTORS,
REPRESENTATIVES, ADMINISTRATORS AND EACH OF THEIR RESPECTIVE SUCCESSORS AND ASSIGNS (TOGETHER THE
“EXECUTIVE PARTIES”), HEREBY GENERALLY RELEASES AND FOREVER DISCHARGES THE COMPANY, ITS
PREDECESSORS, SUCCESSORS, ASSIGNS, PARENTS, SUBSIDIARIES AND AFFILIATES, AND EACH OF THE FOREGOING
ENTITIES’ AND PERSONS’ PAST, PRESENT AND FUTURE DIRECT OR INDIRECT STOCKHOLDERS, MEMBERS, MANAGERS,
PARTNERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES, PRINCIPALS, INSURERS, BENEFIT
PLANS (AND EACH SUCH PLAN’S FIDUCIARIES, ADMINISTRATORS, TRUSTEES, SPONSORS, COMMITTEES AND
REPRESENTATIVES) AND ATTORNEYS (TOGETHER THE “COMPANY PARTIES”) FROM ANY AND ALL CLAIMS,
COMPLAINTS, CHARGES, DEMANDS, LIABILITIES, SUITS, DAMAGES, LOSSES, EXPENSES, ATTORNEYS’ FEES,
OBLIGATIONS OR CAUSES OF ACTION (COLLECTIVELY “CLAIMS”), KNOWN OR UNKNOWN, OF ANY KIND AND EVERY
NATURE WHATSOEVER, AND WHETHER OR NOT ACCRUED OR MATURED, WHICH ANY OF THEM MAY HAVE, ARISING OUT
OF OR RELATING TO ANY TRANSACTION, DEALING, RELATIONSHIP, CONDUCT, ACT OR OMISSION, OR ANY OTHER
MATTERS OR THINGS OCCURRING OR EXISTING AT ANY TIME PRIOR TO

A-1

 

AND INCLUDING THE DATE HEREOF, SUBJECT TO THE LIMITATIONS SET FORTH IN THE FOLLOWING SENTENCE.
THIS RELEASE INCLUDES BUT IS NOT LIMITED TO ANY CLAIMS AGAINST ANY OF THE COMPANY PARTIES BASED
ON, RELATING TO OR ARISING UNDER WRONGFUL DISCHARGE, RETALIATION, BREACH OF CONTRACT (WHETHER ORAL
OR WRITTEN), TORT, FRAUD, DEFAMATION, NEGLIGENCE, PROMISSORY ESTOPPEL, TITLE VII OF THE CIVIL
RIGHTS ACT OF 1964, THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE AMERICANS WITH DISABILITIES ACT,
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, THE WORKER ADJUSTMENT AND RETRAINING NOTIFICATION
ACT, THE FAMILY AND MEDICAL LEAVE ACT OR ANY OTHER FEDERAL, STATE OR LOCAL LAW RELATING TO
EMPLOYMENT, CIVIL OR HUMAN RIGHTS, OR DISCRIMINATION IN EMPLOYMENT (BASED ON AGE OR ANY OTHER
FACTOR) IN ALL CASES ARISING OUT OF OR RELATING TO (I) EXECUTIVE’S EMPLOYMENT BY THE COMPANY OR ANY
OF ITS AFFILIATES, (II) THE EMPLOYMENT AGREEMENT (SUBJECT TO THE TERMS OF THIS AMENDMENT), (III)
THE EXECUTIVE OPTIONS, (IV) EXECUTIVE’S INVESTMENT IN THE COMPANY OR ANY OF ITS AFFILIATES, (V)
EXECUTIVE’S SERVICES AS AN OFFICER, DIRECTOR OR EMPLOYEE OF THE COMPANY OR ANY OF ITS AFFILIATES,
OR (VI) OTHERWISE RELATING TO THE TERMINATION OR MODIFICATION OF EXECUTIVE’S EMPLOYMENT OR SERVICES
OR TO ANY OTHER TRANSACTION, DEALING OR AGREEMENT BETWEEN EXECUTIVE AND THE COMPANY OR ANY OF ITS
AFFILIATES; PROVIDED, HOWEVER, THAT THIS GENERAL RELEASE WILL NOT LIMIT OR RELEASE
(I) EXECUTIVE’S RIGHTS UNDER THE EMPLOYMENT AGREEMENT, AS AMENDED, (II) EXECUTIVE’S RIGHTS UNDER
THE EXECUTIVE OPTIONS, (III) EXECUTIVE’S RIGHTS UNDER THE STOCKHOLDERS AGREEMENT DATED AS OF
SEPTEMBER 19, 2002 AMONG HMTF RAWHIDE, L.P., CONAGRA FOODS, INC., HICKS, MUSE, TATE & FURST
INCORPORATED, THE COMPANY AND THE OTHER INDIVIDUALS NAMED THEREIN, OR (IV) EXECUTIVE’S RIGHTS TO
INDEMNIFICATION FROM THE COMPANY IN RESPECT OF HIS SERVICES AS A DIRECTOR, OFFICER OR EMPLOYEE OF
THE COMPANY OR ANY OF ITS AFFILIATES TO THE MAXIMUM EXTENT ALLOWED BY LAW, ANY INDEMNIFICATION
AGREEMENTS TO WHICH EXECUTIVE AND THE COMPANY OR ANY OF ITS AFFILATES ARE PARTIES, OR THE
CERTIFICATES OF INCORPORATION OR BY-LAWS (OR LIKE CONSTITUTIVE DOCUMENTS) OF THE COMPANY OR ANY OF
ITS AFFILIATES. EXECUTIVE, ON BEHALF OF HIMSELF AND THE EXECUTIVE PARTIES, HEREBY COVENANTS
FOREVER NOT TO ASSERT, FILE, PROSECUTE, COMMENCE OR INSTITUTE (OR SPONSOR OR PURPOSELY FACILITATE
ANY PERSON IN CONNECTION WITH THE FOREGOING), ANY COMPLAINT OR LAWSUIT OR ANY LEGAL, EQUITABLE,
ARBITRAL OR ADMINISTRATIVE PROCEEDING OF ANY NATURE, AGAINST ANY OF THE COMPANY PARTIES IN
CONNECTION WITH ANY CLAIMS RELEASED IN THIS PARAGRAPH 1, AND REPRESENTS AND WARRANTS THAT NO OTHER
PERSON OR ENTITY HAS INITIATED OR, TO THE EXTENT WITHIN HIS CONTROL, WILL INITIATE ANY SUCH
PROCEEDING ON HIS BEHALF, AND THAT IF SUCH A PROCEEDING IS INITIATED, EXECUTIVE SHALL ACCEPT NO
BENEFIT THEREFROM.

          2. If any provision of this Agreement shall be declared invalid or unenforceable under
applicable law, then the performance of such portion shall be excused to the

A-2

 

extent of such invalidity or unenforceability, but the remainder of this Agreement shall
remain in full force and effect; provided, however, that if the excused performance of such
unenforceable provision shall materially adversely affect the interest of either party, the party
so affected shall have the right to terminate this Agreement by written notice thereof to the other
party, whereupon this Agreement shall become null and void. The parties each acknowledge that: (a)
they have been represented by independent counsel in connection with this Agreement; (b) they have
executed this Agreement with the advice of such counsel; and (c) this Agreement is the result of
negotiations between the parties hereto with the advice and assistance of their respective counsel.

[The remainder of this page is intentionally left blank]

A-3

 

     IN WITNESS WHEREOF, Executive has hereunto set Executive’s hand and the Company has caused
this Agreement to be executed in its name on its behalf, all as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	By: Dennis Henley	 	 
	 
	 	 	 	 	 	 
	 	 	SWIFT FOODS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

A-4

 

EXHIBIT B

FORM OF TERMINATION RELEASE

     THIS RELEASE (this “Agreement”) is made as of                     , 200___, by and among
Swift Foods Company, a Delaware corporation (the “Company”), and Dennis Henley (“Executive”).

RECITALS

     WHEREAS, the Company and Executive are parties to the Executive Employment Agreement, dated
May 20, 2002, as amended by that certain First Amendment to Executive Employment Agreement, dated
July 12, 2002, that certain Second Amendment to Executive Employment Agreement, dated November 3,
2004, and that certain Third Amendment to Executive Employment Agreement, dated September 19, 2006
(as so amended, the “Employment Agreement”);

     WHEREAS, capitalized terms used herein but not defined herein shall have the meanings assigned
to them in the Employment Agreement; and

     WHEREAS, Executive’s employment with the Company has terminated as contemplated by the Third
Amendment to Executive Employment Agreement, and Executive and the Company desire to enter into
certain releases as provided herein:

AGREEMENTS:

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

          1. EXECUTIVE, ON BEHALF OF HIMSELF, HIS FAMILY, ATTORNEYS, HEIRS, ESTATE, AGENTS, EXECUTORS,
REPRESENTATIVES, ADMINISTRATORS AND EACH OF THEIR RESPECTIVE SUCCESSORS AND ASSIGNS (TOGETHER THE
“EXECUTIVE PARTIES”), HEREBY GENERALLY RELEASES AND FOREVER DISCHARGES THE COMPANY, ITS
PREDECESSORS, SUCCESSORS, ASSIGNS, PARENTS, SUBSIDIARIES AND AFFILIATES, AND EACH OF THE FOREGOING
ENTITIES’ AND PERSONS’ PAST, PRESENT AND FUTURE DIRECT OR INDIRECT STOCKHOLDERS, MEMBERS, MANAGERS,
PARTNERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES, PRINCIPALS, INSURERS, BENEFIT
PLANS (AND EACH SUCH PLAN’S FIDUCIARIES, ADMINISTRATORS, TRUSTEES, SPONSORS, COMMITTEES AND
REPRESENTATIVES) AND ATTORNEYS (TOGETHER THE “COMPANY PARTIES”) FROM ANY AND ALL CLAIMS,
COMPLAINTS, CHARGES, DEMANDS, LIABILITIES, SUITS, DAMAGES, LOSSES, EXPENSES, ATTORNEYS’ FEES,
OBLIGATIONS OR CAUSES OF ACTION (COLLECTIVELY “CLAIMS”), KNOWN OR UNKNOWN, OF ANY KIND AND EVERY
NATURE WHATSOEVER, AND WHETHER OR NOT ACCRUED OR MATURED, WHICH ANY OF THEM MAY HAVE, ARISING OUT
OF OR RELATING TO ANY TRANSACTION, DEALING, RELATIONSHIP, CONDUCT, ACT OR OMISSION, OR ANY OTHER
MATTERS OR THINGS OCCURRING OR EXISTING AT ANY TIME PRIOR TO

B-1

 

AND INCLUDING THE TERMINATION DATE, SUBJECT TO THE LIMITATIONS SET FORTH IN THE FOLLOWING
SENTENCE. THIS RELEASE INCLUDES BUT IS NOT LIMITED TO ANY CLAIMS AGAINST ANY OF THE COMPANY
PARTIES BASED ON, RELATING TO OR ARISING UNDER WRONGFUL DISCHARGE, RETALIATION, BREACH OF CONTRACT
(WHETHER ORAL OR WRITTEN), TORT, FRAUD, DEFAMATION, NEGLIGENCE, PROMISSORY ESTOPPEL, TITLE VII OF
THE CIVIL RIGHTS ACT OF 1964, THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE AMERICANS WITH
DISABILITIES ACT, EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, THE WORKER ADJUSTMENT AND
RETRAINING NOTIFICATION ACT, THE FAMILY AND MEDICAL LEAVE ACT OR ANY OTHER FEDERAL, STATE OR LOCAL
LAW RELATING TO EMPLOYMENT, CIVIL OR HUMAN RIGHTS, OR DISCRIMINATION IN EMPLOYMENT (BASED ON AGE OR
ANY OTHER FACTOR) IN ALL CASES ARISING OUT OF OR RELATING TO (I) EXECUTIVE’S EMPLOYMENT BY THE
COMPANY OR ANY OF ITS AFFILIATES, (II) THE EMPLOYMENT AGREEMENT (SUBJECT TO THE TERMS OF THIS
AMENDMENT), (III) THE EXECUTIVE OPTIONS, (IV) EXECUTIVE’S INVESTMENT IN THE COMPANY OR ANY OF ITS
AFFILIATES, (V) EXECUTIVE’S SERVICES AS AN OFFICER, DIRECTOR OR EMPLOYEE OF THE COMPANY OR ANY OF
ITS AFFILIATES, OR (VI) OTHERWISE RELATING TO THE TERMINATION OF EXECUTIVE’S EMPLOYMENT OR SERVICES
OR TO ANY OTHER TRANSACTION, DEALING OR AGREEMENT BETWEEN EXECUTIVE AND THE COMPANY OR ANY OF ITS
AFFILIATES; PROVIDED, HOWEVER, THAT THIS GENERAL RELEASE WILL NOT LIMIT OR RELEASE
(I) EXECUTIVE’S RIGHTS UNDER THE EMPLOYMENT AGREEMENT, AS AMENDED, (II) EXECUTIVE’S RIGHTS UNDER
THE EXECUTIVE OPTIONS, (III) EXECUTIVE’S RIGHTS UNDER THE STOCKHOLDERS AGREEMENT DATED AS OF
SEPTEMBER 19, 2002 AMONG HMTF RAWHIDE, L.P., CONAGRA FOODS, INC., HICKS, MUSE, TATE & FURST
INCORPORATED, THE COMPANY AND THE OTHER INDIVIDUALS NAMED THEREIN, OR (IV) EXECUTIVE’S RIGHTS TO
INDEMNIFICATION FROM THE COMPANY IN RESPECT OF HIS SERVICES AS A DIRECTOR, OFFICER OR EMPLOYEE OF
THE COMPANY OR ANY OF ITS AFFILIATES TO THE MAXIMUM EXTENT ALLOWED BY LAW, ANY INDEMNIFICATION
AGREEMENTS TO WHICH EXECUTIVE AND THE COMPANY OR ANY OF ITS AFFILATES ARE PARTIES, OR THE
CERTIFICATES OF INCORPORATION OR BY-LAWS (OR LIKE CONSTITUTIVE DOCUMENTS) OF THE COMPANY OR ANY OF
ITS AFFILIATES. EXECUTIVE, ON BEHALF OF HIMSELF AND THE EXECUTIVE PARTIES, HEREBY COVENANTS
FOREVER NOT TO ASSERT, FILE, PROSECUTE, COMMENCE OR INSTITUTE (OR SPONSOR OR PURPOSELY FACILITATE
ANY PERSON IN CONNECTION WITH THE FOREGOING), ANY COMPLAINT OR LAWSUIT OR ANY LEGAL, EQUITABLE,
ARBITRAL OR ADMINISTRATIVE PROCEEDING OF ANY NATURE, AGAINST ANY OF THE COMPANY PARTIES IN
CONNECTION WITH ANY CLAIMS RELEASED IN THIS PARAGRAPH 1, AND REPRESENTS AND WARRANTS THAT NO OTHER
PERSON OR ENTITY HAS INITIATED OR, TO THE EXTENT WITHIN HIS CONTROL, WILL INITIATE ANY SUCH
PROCEEDING ON HIS BEHALF, AND THAT IF SUCH A PROCEEDING IS INITIATED, EXECUTIVE SHALL ACCEPT NO
BENEFIT THEREFROM.

B-2

 

          2. If any provision of this Agreement shall be declared invalid or unenforceable under
applicable law, then the performance of such portion shall be excused to the extent of such
invalidity or unenforceability, but the remainder of this Agreement shall remain in full force and
effect; provided, however, that if the excused performance of such unenforceable provision shall
materially adversely affect the interest of either party, the party so affected shall have the
right to terminate this Agreement by written notice thereof to the other party, whereupon this
Agreement shall become null and void. The parties each acknowledge that: (a) they have been
represented by independent counsel in connection with this Agreement; (b) they have executed this
Agreement with the advice of such counsel; (c) this Agreement is the result of negotiations between
the parties hereto with the advice and assistance of their respective counsel; and (d) this
Agreement is made pursuant to the terms of the Employment Agreement and is subject to the
provisions of paragraph 13 of the Third Amendment to Executive Employment Agreement.

[The remainder of this page is intentionally left blank]

B-3

 

     IN WITNESS WHEREOF, Executive has hereunto set Executive’s hand and the Company has caused
this Agreement to be executed in its name on its behalf, all as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	By: Dennis Henley	 	 
	 
	 	 	 	 	 	 
	 	 	SWIFT FOODS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

B-4

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