Document:

Exhibit 10.4

 Exhibit 10.4 
 Execution Version 
 PURCHASE AGREEMENT 
 This PURCHASE AGREEMENT is made and entered into as of June 30, 2008 among SMITHFIELD FOODS, INC., a Virginia corporation (the
“Company”), STARBASE INTERNATIONAL LIMITED, a company registered in the British Virgin Islands (the “Purchaser”), and COFCO (HONG KONG) LIMITED, a company incorporated in Hong Kong (the
“Guarantor”). 
 WITNESSETH: 
 WHEREAS, on the terms and subject to the conditions set forth herein, the Company desires to issue and sell to the Purchaser the number of authorized but unissued shares set forth on the signature page hereto (the
“Shares”) of common stock, $0.50 par value per share, of the Company (the “Common Stock”); 
 WHEREAS, the
Purchaser wishes to purchase the Shares on the terms and subject to the conditions set forth herein; 
 WHEREAS, the Purchaser is a
wholly-owned indirect subsidiary of the Guarantor and the Guarantor is willing to provide an unconditional guarantee to the Company of the full and timely performance by the Purchaser of each and all of its obligations under this Agreement,
including the payment of the Purchase Price. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 As used in this Agreement, the following terms shall have the following meanings: 
 “2008 Annual
Meeting” has the meaning set forth in Section 5.01(a) 
 “2009 Annual Meeting” has the meaning set forth in
Section 5.01(b). 
 “Affiliate” of a party means any corporation or other business entity controlled by,
controlling or under common control with such party. For this purpose, “control” shall mean direct or indirect beneficial ownership of fifty percent (50%) or more of the voting interest in such corporation or other business
entity. 

 “Arbitration Notice” has the meaning set forth in Section 8.06(c). 
 “Board of Directors” means the board of directors of the Company. 
 “Closing” has the meaning set forth in Section 2.03(b). 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Closing Date” has the meaning set forth in Section 2.03(b). 
 “Commission” means the Securities and Exchange Commission of the United States. 
 “Common Stock” has the meaning set forth in the recitals. 
 “Company” has the meaning set forth in the preamble. 
 “Company Burdensome
Condition” has the meaning set forth in Section 6.01(e). 
 “Company Fundamental Reps” means
representations and warranties of the Company set forth in Sections 4.01(b) and (d)-(g). 
 “Damages”
has the meaning set forth in Section 7.02(a). 
 “Dispute” has the meaning set forth in Section 8.06(b).

 “Environmental Laws” has the meaning set forth in Section 4.01(k). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, of the United States. 
 “Exchange Act Documents” has the meaning set forth in Section 4.01(a). 
 “First Closing” has the meaning set forth in Section 2.03(a). 
 “First Closing Date” has the meaning set forth in Section 2.03(a). 
 “Governmental Entity” means any court, administrative agency or commission or other governmental authority or instrumentality, whether
federal, state, local or foreign, and any applicable industry self-regulatory organization. 
 “Guarantor” has the meaning
set forth in the preamble. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 “indemnified party” has the meaning set forth in Section 7.03. 
  

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 “indemnifying party” has the meaning set forth in Section 7.03. 

“Lock-Up Period” has the meaning set forth in Section 5.02(b). 
 “Material Adverse Effect” means any change or effect that is, or would reasonably be expected to be, materially adverse to (a) the
business, assets, operations, condition (financial or otherwise) or results of operations, on the Company and its subsidiaries, taken as a whole; provided that, with respect to this clause (a), a “Material Adverse Effect” shall not
be deemed to include any effects to the extent resulting from (i) changes in generally accepted accounting principles, (ii) changes in laws, rules or regulations of general applicability or interpretations thereof by Governmental Entities,
(iii) changes in the general economic and other conditions affecting the industries in which the Company and its subsidiaries compete, including the cyclicality of the businesses of the Company and its subsidiaries and commodity price
increases, (iv) national or international political or social conditions, including the engagement by the United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military
or terrorist attach upon the United States, or any of its territories, possessions or diplomatic or consular officers or upon any military installation, equipment or personnel of the United States or (v) changes to the financial, banking or
securities markets, except, with respect to clauses (iii), (iv) and (v), to the extent that the effects of such conditions or changes are disproportionately adverse to the business, assets, operations, condition (financial or otherwise) or
results of operations, on the Company and its subsidiaries, taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement. 
 “NYSE” means the New York Stock Exchange. 
 “Purchase Price” means the
product of (i) the number of Shares and (ii) the last reported sale price per share of the Common Stock as of the end of the regular trading session on the consolidated tape as indicated on the Bloomberg page “SFD <EQUITY>
HP” (or successor page) on the pricing date for the offering of the Company’s Convertible Senior Notes due between 2011 and 2015. 
 “Purchaser Affiliates” has the meaning set forth in Section 4.02(e). 
 “Purchaser Burdensome
Condition” has the meaning set forth in Section 6.01(c). 
 “Purchaser Nominee” has the meaning set
forth in Section 5.01(a). 
 “Purchaser” has the meaning set forth in the preamble. 
 “Rules” has the meaning set forth in Section 8.06(c). 
 “Second Closing” has the meaning set forth in Section 2.03(b). 
  

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 “Second Closing Date” has the meaning set forth in Section 2.03(b).

 “Securities Act” means the Securities Act of 1933, as amended, of the United States. 
 “Shares” has the meaning set forth in the recitals. 
 “Shares Hedging Transaction” means any short sale (whether or not against the box) or any purchase, sale or grant of any right (including any put or call option) with respect to any security (other
than a broad-based market basket or index) that includes, relates to or derives any significant part of its value from any Shares. 
 “Transfer” has the meaning set forth in Section 5.02(b). 
 “Warranty Breach” has the
meaning set forth in Section 7.02(a). 
 ARTICLE 2 
 THE STOCK PURCHASE 
 Section 2.01. Authorization and
Sale of the Shares. Subject to the terms and conditions of this Agreement, the Company has authorized the issuance and sale of the Shares to the Purchaser, the Purchaser has authorized the purchase of the Shares from the Company, and the
Guarantor has authorized the irrevocable and unconditional guarantee of each and all of the Purchaser’s obligations hereunder. 
 Section 2.02. Agreements to Sell and Purchase. On the basis of the representations and warranties contained in this Agreement, and subject to its terms and conditions, the Company hereby agrees to sell to the Purchaser, and the
Purchaser agrees to purchase from the Company, the number of Shares as set forth on the signature page hereto at the Purchase Price. 
 Section 2.03. Payment and Delivery.  
 (a) The Company shall promptly deliver a portion of the Shares not in excess of
the lower of (i) 3,178,000 and (ii) the maximum number of Shares that can be purchased by the Purchaser without making a filing under HSR Act, against payment by the Purchaser of the apportioned Purchase Price in New York as promptly as
practicable but in no event more than two business days following the closing of the offering of Company’s Convertible Senior Notes due between 2011 and 2015 provided all of the applicable conditions precedent set forth in Article 3
(other than the conditions precedent set forth in Section 3.05) have been satisfied in full or waived or at such other location, date and time as may be agreed upon between the Purchaser and the Company. Such delivery and payment
shall be the “First Closing” and the time and date for the First Closing shall be the “First Closing Date”. 
  

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 (b) The Company shall promptly deliver the remaining Shares against payment by the Purchaser of the
remainder of the Purchase Price in New York on or before the second business day after all of the applicable conditions precedent set forth in Article 3 have been satisfied in full or waived or at such other location, date and time as may be
agreed upon between the Purchaser and the Company. Such delivery and payment shall be the “Second Closing” (each of the First Closing and the Second Closing being a “Closing”) and the time and date for the Second
Closing shall be the “Second Closing Date” (each of the First Closing Date and the Second Closing Date being a “Closing Date”). 
 (c) At each Closing, the Company shall deliver to the Purchaser a single stock certificate representing the applicable number of Shares, to be registered in the name of the Purchaser, against payment of the applicable
Purchase Price therefor in U.S. dollars by wire transfer of immediately available funds to such account or accounts as the Company shall designate in writing. 
 Section 2.04. Guarantee. The Guarantor hereby irrevocably and unconditionally guarantees to the Company the full and timely performance by the Purchaser of each and all of its obligations under this
Agreement, including the payment of the Purchase Price. 
 ARTICLE 3. 
 CONDITIONS PRECEDENT 
 Section 3.01. Conditions
to Obligations of the Purchaser and the Company. The obligations of the Purchaser and the Company to consummate each Closing are subject to the satisfaction of the following conditions precedent: 
 (a) No provision of any applicable federal, state or local law enacted after the date hereof shall prohibit the consummation of such Closing. 

(b) No proceeding instituted by a Governmental Entity challenging this Agreement or the transactions contemplated hereby, or seeking to prohibit,
alter, prevent or materially delay such Closing, shall be pending before any court, governmental body, agency or official. 
 (c) All
necessary consents, approvals, licenses, permits, orders and authorizations of, or registrations, declarations and filings with, any Governmental Entity or of any other person with respect to any of the transactions contemplated hereby shall have
been duly obtained or made and shall be in full force and effect. 
 (d) The offering and sale of the Company’s Convertible Senior Notes
due between 2011 and 2015 with minimum proceeds to the Company of $100,000,000 shall have closed on or before July 15, 2008. 
  

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 Section 3.02. Conditions to the Company’s Obligations. The Company’s obligations to
consummate each Closing are subject to the satisfaction of the following conditions precedent: 
 (a) The representations and warranties
contained herein of the Purchaser shall be true and correct as of the date hereof. 
 (b) The Purchaser shall have performed in all material
respects all obligations and conditions herein required to be performed or observed by the Purchaser on or prior to such Closing Date. 
 Section 3.03. Conditions to the Obligations of the Purchaser and the Guarantor. The obligations of the Purchaser to consummate each Closing and of the Guarantor to guarantee the full and timely performance of each and all of the
Purchaser’s obligations under this Agreement are subject to the satisfaction of the following conditions precedent: 
 (a) The
representations and warranties contained herein of the Company shall be true and correct as of the date hereof and the Company Fundamental Reps shall also be true and correct at each Closing Date. 
 (b) The Company shall have performed in all material respects all obligations and conditions herein required to be performed or observed by the Company
on or prior to each Closing Date. 
 (c) The Purchaser shall have received on such Closing Date a certificate, dated such Closing Date and
signed by an executive officer of the Company, to the effect that the representations and warranties of the Company contained in this Agreement are true and correct as of the date hereof and that the Company has complied in all material respects
with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or before such Closing Date. The officer signing and delivering such certificate may rely upon his or her knowledge as to
proceedings threatened and other matters as to which the representation or warranty of the Company is qualified by the Company’s knowledge. 
 (d) The Purchaser shall have received on such Closing Date (i) an opinion of Hogan & Hartson LLP, counsel for the Company, dated such Closing Date, to the effect set forth in Exhibit A-1 and (ii) an opinion of
McGuireWoods LLP, counsel for the Company, dated such Closing Date, to the effect set forth in Exhibit A-2. Such opinions shall be delivered to the Purchaser at the request of the Company and shall so state therein. 
 Section 3.04. Additional Conditions to the First Closing. In addition to the conditions set forth in Sections 3.01, 3.02 and
3.03 above, the obligations of the Purchaser to consummate the First Closing are also subject to the condition precedent that no Material Adverse Effect shall have occurred. 
  

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 Section 3.05 Additional Conditions to the Second Closing. In addition to the conditions set
forth in Sections 3.01, 3.02 and 3.03 above, the obligations of the Purchaser and the Company to consummate the Second Closing are also subject to the satisfaction of the following conditions precedent: 
 (a) Any applicable waiting period under the HSR Act relating to the transactions contemplated hereby shall have expired or been terminated. 
 (b) The First Closing shall have occurred. 
 (c) No Material Adverse Effect shall have occurred. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES 
 Section 4.01. Representations and Warranties of the Company. The Company represents and warrants to the Purchaser and the Guarantor that: 
 (a) The Company has filed with the Commission all documents required to be filed pursuant to the Exchange Act during the twelve (12) months preceding the date of this Agreement. The following documents
(collectively, the “Exchange Act Documents”) complied when filed in all material respects with the Exchange Act and the applicable rules and regulations of the Commission thereunder, and did not, when so filed, contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided, however, that the representation and
warranty set forth in this Section 4.01(a) shall not pertain to any statement that has been modified or superseded by a subsequently filed Exchange Act Document to the extent that such subsequently filed Exchange Act Document shall have
been filed on or prior to the date of this Agreement): 
 (i) Quarterly Report on Form 10-Q for the Quarter ended
January 27, 2008; 
 (ii) Annual Report on Form 10-K for the Year ended April 27, 2008; 
 (iii) Definitive Proxy Statement filed with the Commission on July 30, 2007; and 
 (iv) All other documents (other than filings made pursuant to Rule 425 under the Rules and Regulations of the Commission under the
Securities Act, if any), filed by the Company with the Commission since April 27, 2008 (but only to the extent that such documents are, or are deemed to be, incorporated by reference for filing purposes under the Exchange Act). 
  

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 (b) The Company has been duly incorporated, is validly existing as a corporation in good standing under
the laws of the Commonwealth of Virginia, has the corporate power and authority to own its property and to conduct its business as currently conducted and as described in the Exchange Act Documents and is duly qualified to transact business and is
in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a Material
Adverse Effect. 
 (c) The information contained in the Exchange Act Documents considered as a whole and as amended as of the date hereof do
not, as of the date hereof, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 (d) Each subsidiary of the Company has been duly incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction
of its incorporation, has the corporate power and authority to own its property and to conduct its business as currently conducted and described in the Exchange Act Documents and is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect; all of
the issued shares of capital stock of each subsidiary of the Company have been duly and validly authorized and issued, are fully paid and non-assessable and, other than as set forth in the Exchange Act Documents, are owned directly or indirectly by
the Company, free and clear of all liens, encumbrances, equities or claims. 
 (e) This Agreement has been duly authorized, executed and
delivered by, and is a valid and binding agreement of, the Company, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity
and except as rights to indemnification in Article 7 hereof may be limited under applicable law. 
 (f) The authorized capital stock
of the Company conforms as to legal matters in all material respects to the description thereof contained in the Exchange Act Documents. The Shares have been duly authorized and, when issued and delivered to and paid for by the Purchaser in
accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable, will be sold free and clear of any pledge, lien, security interest, encumbrance, claim or equitable interest, and the issuance of such Shares will
not be subject to any preemptive or similar rights. 
 (g) The execution and delivery by the Company of, and the performance by the Company
of its obligations under, this Agreement will not contravene any provision of applicable law or the articles of incorporation or by-laws of the Company or any agreement or other instrument binding upon the Company or any 

  

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of its subsidiaries that is material to the Company and its subsidiaries, taken as a whole, or any judgment, order or decree of any governmental body, agency
or court having jurisdiction over the Company or any subsidiary, other than any contravention that would not have, or reasonably be expected to have, a Material Adverse Effect, and no consent, approval, authorization or order of, or filing or
qualification with, any governmental body or agency is required for the performance by the Company of its obligations under this Agreement, other than (i) compliance with the applicable requirements of the HSR Act, (ii) compliance with any
applicable requirements of any applicable foreign or state securities or “blue sky” laws, and (iii) any consent, approval, actions or filings the absence of which would not have, or reasonably be expected to have, a Material Adverse
Effect. 
 (h) There has not occurred any Material Adverse Effect since April 27, 2008. 
 (i) There are no legal or governmental proceedings pending or to the knowledge of the Company threatened to which the Company or any of its subsidiaries
is a party or to which any of the properties of the Company or any of its subsidiaries is subject other than proceedings accurately described in all material respects in the Exchange Act Documents and proceedings that would not have a Material
Adverse Effect. 
 (j) The Company is conducting the business in material compliance with all applicable law and, since April 27, 2008,
the Company has not violated or, to the knowledge of the Company, is not under any investigation with respect to, or has been threatened to be charged with, or received any written notice from any Government Entity, to the effect that the Company is
not in material compliance with any applicable law, except for any noncompliance or violation which would not have, or reasonably be expected to have, a Material Adverse Effect. 
 (k) The Company and its subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local laws and regulations
relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental
Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, have a Material Adverse Effect. 
 (l) Except as disclosed in the Exchange Act Documents, there are no costs or liabilities associated with Environmental Laws (including, without
limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to
third parties) which would, singly or in the aggregate, have a Material Adverse Effect. 
  

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 (m) The Company and its subsidiaries own or possess, or can acquire on reasonable terms, all material
patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks and trade names currently
employed by them in connection with the business now operated by them, and neither the Company nor any of its subsidiaries has received any notice of infringement of or conflict with asserted rights of others with respect to any of the foregoing
which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect. 
 (n)
The Company is not, and after giving effect to the offering and sale of the Shares and the application of the proceeds thereof will not be, required to register as, an “investment company” as such term is defined in the Investment Company
Act of 1940, as amended. 
 (o) The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is listed on the NYSE,
and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the NYSE. The Company has not received any notification that
the Commission or the NYSE is contemplating terminating such registration or listing. The Company has complied with all requirements of the NYSE with respect to the issuance of the Shares and shall take all actions necessary to list the Shares on
the NYSE. 
 (p) The Company has not taken and will not take, in violation of applicable law, any action designed to or that might reasonably
be expected to cause or result in stabilization or manipulation of the price of the Common Stock to facilitate the sale or resale of the Shares. 
 (q) The Company is not in discussions and has not reached any understanding, whether or not in writing, regarding potential terms with respect to any transaction that would constitute a business combination under Regulation S-X 11-01(a),
where the business to be acquired would constitute a significant subsidiary as defined in Rule 1-02(w) of Regulation S-X at the 10% level. 
 (r) Ernst & Young LLP, whose report on the financial statements of the Company is filed with the Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended April 27, 2008, are independent registered
public accountants as required by the Securities Act and the rules and regulations under the Securities Act. Except as described in the Exchange Act Documents and as pre-approved in accordance with the requirements set forth in Section 10A of
the Exchange Act, to the Company’s knowledge, Ernst & Young LLP has not engaged in any “prohibited activities” (as defined in Section 10A of the Exchange Act) on behalf of the Company. 
  

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 (s) The financial statements of the Company, together with the related schedules and notes:
(i) present fairly, in all material respects, the financial position of the Company as of the dates indicated and the results of operations and cash flows of the Company for the periods specified; (ii) have been prepared in compliance with
requirements of the Securities Act and the rules and regulations thereunder and in conformity with generally accepted accounting principles in the United States applied on a consistent basis during the periods presented and the schedules included in
the Exchange Act Documents present fairly, in all material respects, the information required to be stated therein (provided, however, that the statements that are unaudited are subject to normal year-end adjustments and do not contain
certain footnotes required by generally accepted accounting principles); (iii) comply with the antifraud provisions of the federal securities laws; and (iv) describe accurately, in all material respects, the controlling principles used to
form the basis for their presentation. There are no financial statements (historical or pro forma) and/or related schedules and notes that are required to be included in the Exchange Act Documents that are not included as required by the Securities
Act, the Exchange Act and/or the rules and regulations thereunder. 
 (t) The Company has timely filed all federal, state and foreign income
and franchise tax returns required to be filed by the Company on or prior to the date hereof, and has paid all taxes shown thereon as due, and there is no tax deficiency that has been or, to the Company’s knowledge, might be asserted against
the Company that might reasonably be expected to have a Material Adverse Effect. All tax liabilities are adequately provided for on the books of the Company. The Company is not currently, has never been, and does not expect to become, a “United
States real property holding corporation” within the meaning of Section 897(c)(2) of the Code. 
 (u) The Company has established
and maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles in the United States and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accounting treatment for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
 (v) Except as disclosed in the Exchange Act Documents, no labor dispute with employees of the Company exists or, to the Company’s knowledge, is
imminent which might reasonably be expected to have a Material Adverse Effect. 
  

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 (w) Except for the offering and sale of the Company’s Convertible Senior Notes due between 2011 and
2015 (as to which no representation is being made), neither the Company nor any Affiliate of the Company has, directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any
security (as defined in the Securities Act) which is or will be integrated with the sale of the Shares in a manner that would require the registration under the Securities Act of the Shares; or (ii) offered, solicited offers to buy or sold the
Shares by any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act; and
neither the Company nor any Affiliate of the Company will engage in any of the actions described in clauses (i) and (ii) of this paragraph. 
 (x) Subject to the accuracy of the Purchaser’s representations herein and the compliance by the Purchaser with all of the Purchaser’s covenants contained herein, it is not necessary in connection with the
offer, sale and delivery of the Shares to the Purchaser in the manner contemplated by this Agreement to register the Shares under the Securities Act. 
 (y) There is no investment banker, broker, finder or other intermediary which has been retained by or is authorized to act on behalf of the Company or any of its subsidiaries who might be entitled to any fee or
commission in connection with the transactions contemplated by this Agreement. 
 Section 4.02. Representation and Warranties of the
Purchaser and Guarantor. The Purchaser and the Guarantor, jointly and severally, represent and warrant to the Company that: 
 (a) The
Purchaser has requested, received, reviewed and considered all information it deems relevant in making an informed decision to purchase the Shares and has had the opportunity to ask questions of the Company and received answers thereto, as it deemed
necessary in connection with the decision to purchase the Shares. 
 (b) In connection with the Purchaser’s decision to purchase the
number of Shares set forth on the signature page hereto and the Guarantor’s guarantee of the Purchaser’s obligations under this Agreement, the Purchaser and the Guarantor have relied only upon the Exchange Act Documents and the
representations and warranties of the Company contained herein and the information received pursuant to Section 4.02(a). 
 (c) The
Purchaser is acquiring the number of Shares set forth on the signature page hereto in the ordinary course of its business and for its own account for investment only and with no present intention of distributing any of such Shares or any arrangement
or understanding with any other persons regarding the distribution of such Shares. 
  

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 (d) This Agreement has been duly authorized, executed and delivered by, and is a valid and binding
agreement of, the Purchaser and the Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity and except as rights to
indemnification in Article 7 hereof may be limited under applicable law. 
 (e) Based on the Company having 141,398,175 shares of
Common Stock outstanding at the Second Closing Date (after giving effect to the sale and purchase of Shares pursuant to this Agreement), the Purchaser, together with its ultimate parent entity and all entities controlled by the same ultimate parent
as the Purchaser (such entities, including the Purchaser, hereinafter collectively referred to as the “Purchaser Affiliates”), will not beneficially own in excess of 4.99% of the Company’s outstanding voting securities as a
result of the sale and purchase of the Shares pursuant to this Agreement or otherwise as of the First Closing Date or the Second Closing Date, and all voting securities of the Company that the Purchaser Affiliates will beneficially own, directly or
indirectly, at each Closing Date (after giving effect to the sale and purchase of Shares pursuant to this Agreement), will be held solely for the purpose of investment such that these securities will be held by the Purchaser Affiliates with no
intention on the part of any of them to participate in the formulation, determination or direction of the basic business decisions of the Company. It being understood that the service of Mr. Ning or any other Purchaser Nominee, and seeking to
obtain the election of Mr. Ning or any other Purchaser Nominee, as a director of the Company shall not be deemed to contravene this Section 4.02(e). 
 (f) Each of Purchaser and Guarantor is not a “U.S. Person” within the meaning of Regulation S under the Securities Act and is not acquiring Shares for the account or benefit of any “U.S. Person”.

 (g) Purchaser: 
 (i) is able to fend for itself in the transactions contemplated by this Agreement; 
 (ii) has such knowledge and
experience in financial and business matters as to be capable of evaluating the merits and risks of its prospective investment in the Shares; and 
 (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment. 
 (h) Purchaser is aware and agrees (i) that the sale to it is being made in an “off -shore transaction” (as defined in Regulation S under the Securities Act) in reliance on an exemption from registration
under the Securities Act, (ii) that the Shares are being offered in transactions not involving any public offering within the meaning of the Securities Act, and (iii) that the Shares have not been and will not be registered under the
Securities Act. 
  

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 (i) Purchaser is not acquiring the Shares as a result of or in connection with any activity that would
constitute “directed selling efforts” (within the meaning given to that term in Regulation S under the Securities Act) or any general solicitation or advertising in the United States and agrees to resell the Shares only in accordance with
the provisions of Regulation S or pursuant to an available exemption from registration under the Securities Act. 
 (j) Purchaser was outside
the United States at the time (i) the offer to purchase and the sale of the Shares was made, (ii) the buy order was made for the Shares, and (iii) it executed the Agreement. 
 (k) Except for Morgan Stanley Asia Limited whose fees and expenses will be paid by the Purchaser, there is no investment banker, broker, finder or other
intermediary which has been retained by or is authorized to act on behalf of the Purchaser or any of its subsidiaries who might be entitled to any fee or commission in connection with the transactions contemplated by this Agreement. 
 (l) The execution and delivery by the Purchaser and the Guarantor of, and the performance by the Purchaser and the Guarantor of their obligations under,
this Agreement will not contravene any provision of applicable law or the organizational documents of the Purchaser or any agreement or other instrument binding upon the Purchaser or any of its subsidiaries, or any judgment, order or decree of any
governmental body, agency or court having jurisdiction over the Purchaser or any subsidiary, other than any contravention that would not have, or reasonably be expected to have, a Material Adverse Effect or a material adverse effect on the Purchaser
or any of its Affiliates or on the ability of the Purchaser to perform its obligations and consummate the transactions contemplated by this Agreement. 
 (m) No consent, approval, authorization or order of, or filing or qualification with, any governmental body or agency is required for the performance by the Purchaser or Guarantor of its respective obligations under
this Agreement, other than (i) compliance with the applicable requirements of the HSR Act, (ii) compliance with any applicable requirements of any applicable foreign or state securities or “blue sky” laws, and (iii) any
consent, approval, actions or filings the absence of which would not have, or reasonably be expected to have, a Material Adverse Effect or a material adverse effect on the Purchaser or any of its Affiliates or on the ability of the Purchaser to
perform its obligations and consummate the transactions contemplated by this Agreement. 
  

 14 

 (n) Purchaser understands that nothing in this Agreement, the Exchange Act Documents or any other
materials presented to Purchaser in connection with the purchase of the Shares constitutes legal, tax or investment advice. Purchaser has consulted such tax, legal and investment advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of the Shares and has made its own assessment and has satisfied itself concerning the relevant tax and other economic considerations relevant to its investment in the Shares. 
 (o) The Purchaser has or will have available funds to purchase the Shares at each Closing on the terms and conditions set forth in this Agreement.

 ARTICLE 5 
 COVENANTS 
 Section 5.01. Covenants of the Company. 
 (a) Promptly after the First Closing, the Company shall cause the Board of Directors to nominate Mr. Gaoning Ning, or, if Mr. Ning is no longer
the chairman of the board of directors of the Purchaser’s ultimate parent entity, an alternative nominee designated by the Purchaser, which nominee shall be the chairman or other senior executive officer of the Purchaser’s ultimate parent
entity and shall be reasonably acceptable to the nominating committee of the Board of Directors (such person, a “Purchaser Nominee”), to stand for election at the Company’s annual meeting of shareholders to be held on
August 27, 2008 (the “2008 Annual Meeting”), to serve as a director whose term shall expire after three years. 
 (b)
Subject to Section 5.01(e) below, in the event that Mr. Ning or, if applicable, any other Purchaser Nominee, is not elected as a director at the 2008 Annual Meeting, the Company shall cause the Board of Directors to
(i) increase the number of directors by one and to appoint an alternative Purchaser Nominee to serve as a director until the Company’s annual meeting of shareholders to be held in 2009 (the “2009 Annual Meeting”), and
(ii) to nominate such alternative Purchaser Nominee, or if applicable, any other Purchaser Nominee, to stand for election or reelection at the 2009 Annual Meeting as a director whose term shall expire after two years. 
 (c) Subject to Section 5.01(e) below, in the event that, during the initial three years following the 2008 Annual Meeting, Mr. Ning, or
any other Purchaser Nominee, dies or no longer serves as the chairman or as a senior executive of the Purchaser’s ultimate parent entity (in which event the Guarantor shall cause Mr. Ning or such other Purchaser Nominee to resign from the
Board of Directors), the Board of Directors shall appoint a replacement Purchaser Nominee to serve as a director for the balance of such initial three-year period, or if during the balance of 

  

 15 

 
such initial three-year period, there would be an annual meeting of shareholders, then nominate such replacement Purchaser Nominee or any other Purchaser
Nominee, to stand for election or reelection at such annual meeting of shareholders as a director whose term shall expire after three years following the 2008 Annual Meeting. 
 (d) Subject to Section 5.01(c) above, in the event that, during any term as director, Mr. Ning or any other Purchaser Nominee no longer
serves as the chairman or as a senior executive of the Purchaser’s ultimate parent entity, the Guarantor shall, at the Company’s request, cause Mr. Ning or such other Purchaser Nominee to resign from the Board of Directors.

 (e) In the event that the Purchaser and the Purchaser Affiliates Transfer any Shares and, following such Transfer, beneficially own, in
the aggregate, less than two percent (2%) of the then outstanding shares of Common Stock, the Guarantor shall, at the Company’s request, cause Mr. Ning or, if applicable, any other Purchaser Nominee, to resign as a director from the
Board of Directors and the Company shall have no further obligations under Section 5.01(b) and (c). For the avoidance of doubt, Mr. Ning or such other Purchaser Nominee shall not be required to resign as a director from the Board of
Directors, if the shares of Common Stock beneficially owned by the Purchaser and the Purchaser Affiliates, in the aggregate, are reduced to less than two percent (2%) of the then outstanding shares of Common Stock solely as a result of any
dilution events with respect to the Common Stock, unless the Purchaser or the Purchaser Affiliates make a Transfer of any Shares to a third party. 
 (f) The Company shall cooperate in good faith with any request by the Purchaser to furnish the Purchaser with all information concerning itself, its subsidiaries, directors, officers and shareholders and such other matters as may be
reasonably necessary in connection with any statement, filing, notice or application made by or on behalf of the Purchaser or any of its subsidiaries to any Governmental Entity in connection with the purchase of the Shares. 
 (g) The Company shall give reasonable advance notice of, and shall give good faith consideration to the views of the Purchaser on, all disclosures
relating to the Purchaser and Purchaser Affiliates in connection with any statement, filing, notice or application made by or on behalf of the Company or any of its subsidiaries to any Governmental Entity and in connection with the inclusion of
information regarding Purchaser, Purchaser Affiliates, Mr. Ning or any other Purchaser Nominee in any definitive proxy statement of the Company to be filed with the Commission or in any other report required to be filed with the Commission or
any other Governmental Entity (other than any such statement, filing, notice or other disclosure that includes no information regarding Purchaser, Purchaser Affiliates, Mr. Ning or any Purchaser Nominee not previously included in a filing with
the Commission or any other Governmental Entity). 
  

 16 

 (h) On the assumption that the Purchaser will not own any shares of Common Stock or have any
representation on the Company’s Board of Directors, except as contemplated by this Agreement, or control or influence the management or policies of the Company, including through Mr. Ning or any other Purchaser Nominee on the
Company’s Board of Directors, the Company acknowledges and agrees that the Purchaser is not, and the Company will not treat the Purchaser as if it were, an “affiliate” of the Company within the meaning of the Securities Act or the
Exchange Act or the rules and regulations thereunder as in effect on the date hereof. 
 (i) At any time prior to the expiration of the
Lock-Up Period, the Purchaser shall be entitled to give a notice to the Company requiring that its Shares be converted into book-entry form. Any such request will be accompanied by certificates representing the Shares and details about the
Purchaser’s securities account. Upon receipt of such notice, the Company shall take all necessary actions to cause the crediting of Purchaser’s securities account with such Shares in book entry form immediately following the later of
(i) fifteen (15) days after such notice being delivered and (ii) expiration of the Lock-Up Period. 
 Section 5.02.
Covenants of the Purchaser. 
 (a) The Purchaser shall not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of
(or solicit offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares, except in compliance with the Securities Act and the applicable rules and regulations of the Commission thereunder. 
 (b) Without the prior written consent of the Company, from the First Closing Date until the first anniversary of the First Closing Date (the
“Lock-Up Period”), the Purchaser shall not (i) directly or indirectly transfer, offer, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, enter into any Shares Hedging
Transaction, grant any option, right or warrant for the sale of, pledge, encumber, mortgage, hypothecate or otherwise dispose of the Shares, or any securities convertible into or exchangeable or exercisable for, or repayable with, the Shares
(collectively, “Transfer”), to any third party other than the Purchaser Affiliates, or (ii) enter into any swap or other agreement or any transaction that would transfer, in whole or in part, directly or indirectly, the
economic consequence of ownership of the Shares to any third party other than the Purchaser Affiliates. Transfer of Shares to Purchaser Affiliates shall be permitted if such Purchaser Affiliate agrees in writing for the benefit of the Company to be
bound by the terms of this Agreement; provided that no such Transfer shall relieve the Purchaser or the Guarantor of its obligations under this Agreement. 
 (c) Subject to Section 5.02(g) below, the Purchaser agrees that, without the prior approval of the Company, neither the Purchaser nor any of the Purchaser Affiliates will, directly or indirectly, purchase,
offer to purchase, or agree to 

  

 17 

 
purchase or otherwise acquire beneficial ownership (as defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act) of any Common Stock, or
securities convertible into or exchangeable for Common Stock, that would result in the Purchaser or the Purchaser Affiliates having beneficial ownership of more than 9.9% of the outstanding shares of voting stock or Common Stock of the Company nor
will the Purchaser or the Purchaser Affiliates be part of any “group” (under Section 13(d) of the Exchange Act) having beneficial ownership of more than 9.9% of the outstanding shares of voting stock or Common Stock of the Company
(for the avoidance of doubt, for purposes of calculating the beneficial ownership of the Purchaser and the Purchaser Affiliates, (x) any security that is convertible into, or exercisable for, any voting stock of the Company or Common Stock that
is beneficially owned by the Purchaser or the Purchaser Affiliates shall be treated as fully converted or exercised, as the case may be, into the underlying voting stock of the Company or Common Stock, (y) the voting stock of the Company,
Common Stock and securities convertible into, or exercisable for, voting stock of the Company or Common Stock, that are beneficially owned by the Purchaser and each of the Purchaser Affiliates shall be aggregated and (z) any security
convertible into, or exercisable for, the voting stock of the Company or Common Stock that is beneficially owned by any person other than the Purchaser or any of the Purchaser Affiliates shall not be taken into account). 
 (d) Subject to Section 5.02(g) below, the Purchaser agrees that, without the prior approval of the Company, neither the Purchaser nor any of
the Purchaser Affiliates will, directly or indirectly, (i) make, or in any way participate in, any solicitation of proxies to vote, or seek to advise or influence any person with respect to the voting of, any voting securities of the Company or
any of its subsidiaries, or seek or propose to influence, advise, change or control the management, board of directors, policies, affairs or strategy of the Company by way of any public communication, or other communications, to securityholders
intended for such purpose, (ii) make a proposal for any acquisition of, or similar extraordinary transaction involving, the Company or a material portion of its securities or assets, (iii) seek to control or influence the management or
policies of the Company, board of directors of the Company or policies of the Company, including any of the Company’s subsidiaries, or (iv) enter into any agreements or understandings with any person (other than the Company) for the
purpose of any of the actions described in clauses (i), (ii) or (iii) above; it being understood that the service of Mr. Ning or any other Purchaser Nominee, and seeking to obtain the election of Mr. Ning or any other Purchaser
Nominee, as a director of the Company shall not be deemed to contravene this Section 5.02(d). 
 (e) The Purchaser and the
Guarantor shall cooperate in good faith with any request by the Company to furnish the Company with all information concerning itself, its subsidiaries, directors, officers and stockholders, Mr. Ning or any other Purchaser Nominee and such
other matters as may be reasonably necessary in connection with any statement, filing, notice or application made by or on behalf of the Company or any of its subsidiaries to any Governmental Entity and in connection with the inclusion of
information regarding Mr. Ning or any other 

  

 18 

 
Purchaser Nominee in the definitive proxy statement of the Company to be filed with the Commission or in any other report required to be filed with the
Commission or any other Governmental Entity. 
 (f) For so long as Mr. Ning or any other Purchaser Nominee serves on the Board of
Directors of the Company, the Purchaser and the Purchaser Affiliates shall not Transfer, or purchase, offer to purchase, or agree to purchase or otherwise acquire beneficial ownership of, any Common Stock, or securities convertible into or
exchangeable for Common Stock other than during the “trading windows” applicable to directors of the Company (other than Transfers to Purchaser Affiliates made in accordance with this Section 5.02). 
 (g) The Purchaser’s obligations under paragraphs (c) and (d) of this Section 5.02 shall terminate on the date on which the
Purchaser and the Purchaser Affiliates beneficially own, in the aggregate, less than 2% of the outstanding Common Stock; provided that such obligations shall automatically be reinstated in the event that, within one year following the date of
such termination, the Purchaser and the Purchaser Affiliates acquire any beneficial ownership of any additional shares of Common Stock that result in the Purchaser and the Purchaser Affiliates beneficially owning, in the aggregate, 2% or more of the
outstanding Common Stock (in each case treating any convertible securities of the Company that are beneficially owned by the Purchaser or the Purchaser Affiliates as fully converted into the underlying Common Stock). 
 (h) Subject to Section 5.01(i), the Purchaser agrees that all certificates or other instruments representing the Shares will bear a legend
substantially to the following effect: 
 “THE SHARES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. THIS INSTRUMENT IS ISSUED PURSUANT TO AND SUBJECT TO THE
RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A PURCHASE AGREEMENT, DATED AS OF JUNE 30, 2008, BETWEEN THE ISSUER OF THESE SECURITIES AND THE PURCHASER REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE ISSUER. THE SHARES REPRESENTED BY
THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.” 
  

 19 

 (i) After the Purchaser’s Shares are converted to book-entry form pursuant to
Section 5.01(i), for so long as Mr. Ning or any other Purchaser Nominee remains a member of the Board of Directors, the Purchaser and the Purchaser Affiliates shall promptly notify the Company of any Transfer of Shares (including
the number of Shares Transferred and the date of such Transfer) following any such Transfer. 
 (j) The Purchaser shall remain a controlled
subsidiary of the Guarantor for so long as the provisions of Sections 5.02(b), (c) or (d) are applicable. 
 ARTICLE 6

 ADDITIONAL AGREEMENTS OF THE PARTIES. 
 Section 6.01. Regulatory Filing. 
 (a) The Purchaser and the Company shall use reasonable best efforts to promptly prepare and file all necessary documentation, to effect all applications, notices, petitions and filings (including, without limitation, under the HSR Act,
which filing shall be made by Purchaser and the Company within six (6) business days following the date of this Agreement), and to obtain as promptly as practicable all permits, consents, approvals and authorizations of all third parties and
Governmental Entities, and take all other actions, that are necessary or advisable to consummate the transactions contemplated by this Agreement. Each of the Company and Purchaser shall have the right to consult the other, in each case subject to
applicable laws relating to the exchange of information, with respect to any filing made with, or written materials submitted to, any third party or any Governmental Entity in connection with the transactions contemplated by this Agreement. In
exercising the foregoing right, each of the parties hereto shall act reasonably and as promptly as practicable. The parties hereto agree that they will consult with each other with respect to the obtaining of all permits, consents, approvals and
authorizations of all third parties and Governmental Entities necessary or advisable to consummate the transactions contemplated by this Agreement. Without limiting the generality of the foregoing and subject to applicable law, each of the Purchaser
and the Company shall keep the other apprised of the status of matters relating to completion of the transactions contemplated by this Agreement, including promptly furnishing the other with copies of notices or other written communications, and the
substance of any material oral communications, between the Purchaser and the Company, as the case may be, or any of their respective subsidiaries or affiliates, and any relevant third parties or Governmental Entities with respect to the transactions
contemplated by this Agreement (other than in respect of information filed or otherwise submitted confidentially to any such Governmental Entity). 
 (b) The Purchaser and the Company shall, upon request, furnish each other with all information concerning themselves, their subsidiaries, directors, officers and shareholders and such other matters as may be reasonably necessary or 

  

 20 

 
advisable in connection with any statement, filing, notice or application made by or on behalf of Purchaser, the Company or any of their respective
subsidiaries to any Governmental Entity in connection with the transactions contemplated by this Agreement. 
 (c) The Purchaser, the
Guarantor and the Company shall promptly furnish the other with copies of written communications received by them or their subsidiaries from, or delivered by any of the foregoing to, any Governmental Entity in respect of the transactions
contemplated by this Agreement (other than in respect of information filed or otherwise submitted confidentially to any such Governmental Entity). 
 (d) Notwithstanding anything in this Agreement to the contrary, in no event will the Purchaser or the Purchaser Affiliates be obligated to: 
 (i) without limiting the Purchaser’s obligation under clause (ii) below, propose or accept any divestiture of any of the Purchaser’s or any of the Purchaser Affiliates’ assets, accept any
operational restriction on the Purchaser’s or any of the Purchaser Affiliates’ business, or agree to take any action that limits the Purchaser’s or the Purchaser Affiliates’ commercial practices in any way to obtain any consent,
acceptance or approval of any Governmental Entity to consummate the transactions contemplated by this Agreement; or 
 (ii)
propose or agree to accept any term or condition or otherwise modify the terms of this Agreement, including for the avoidance of doubt the terms or the amount of the Shares to be delivered by the Company under this Agreement, to obtain any consent,
acceptance or approval of any Governmental Entity to the consummation of the transactions contemplated hereby if such term, condition or modification would (A) materially adversely affect (with respect to the Purchaser or the Purchaser
Affiliates) any term of the transactions contemplated by this Agreement (other than a financial term), or (B) adversely affect (with respect to the Purchaser or the Purchaser Affiliates) any financial term of the transactions contemplated
hereby. 
 (iii) Any of the foregoing contemplated by clauses (i) and (ii) above shall be a “Purchaser
Burdensome Condition”. 
 (iv) With regard to any Governmental Entity, neither the Company nor any of its
subsidiaries (or any of their respective Affiliates) shall, without the Purchaser’s prior written consent, discuss or commit to any Purchaser Burdensome Condition. 
 (e) Notwithstanding anything in this Agreement to the contrary, in no event will the Company or its Affiliates be obligated to: 
 (i) without limiting the Company’s obligation under clause (ii) below, propose or accept any divestiture of any of the
Company’s or any of the Company’s Affiliates’ assets, accept any operational restriction on the Company’s or any of the Company’s Affiliates’ business, or agree to take any action that limits the Company’s or the
Company’s Affiliates’ commercial practices in any way to obtain any consent, acceptance or approval of any Governmental Entity to consummate the transactions contemplated by this Agreement; or 
  

 21 

 (ii) propose or agree to accept any term or condition or otherwise modify the terms of
this Agreement, including for the avoidance of doubt the terms or the amount of the Shares to be delivered by the Company under this Agreement, to obtain any consent, acceptance or approval of any Governmental Entity to the consummation of the
transactions contemplated hereby if such term, condition or modification would (A) materially adversely affect (with respect to the Company or the Company’s Affiliates) any term of the transactions contemplated by this Agreement (other
than a financial term), or (B) adversely affect (with respect to the Company or the Company’s Affiliates) any financial term of the transactions contemplated hereby. 
 (iii) Any of the foregoing contemplated by clauses (i) and (ii) above shall be a “Company Burdensome
Condition”. 
 (iv) With regard to any Governmental Entity, neither the Purchaser nor any of its subsidiaries (or any
of their respective Affiliates) shall, without the Company’s prior written consent, discuss or commit to any Company Burdensome Condition. 
 (f) Notwithstanding the foregoing, other than the filing under the HSR Act, with the Commission or with the NYSE, no other filing shall be made by any party in the United States with any Governmental Entity except as mutually agreed upon by
the Company and the Purchaser. 
 Section 6.02. Press Release; Public Announcement. 
 (a) On the date hereof or promptly thereafter, the Company may issue a press release in the form of Exhibit B hereto and file a current report on
Form 8-K with the Commission that does not include any additional information regarding the Purchaser, Purchaser Affiliates and the transactions contemplated hereby that is not included in such press release. The press release shall be an exhibit to
such Form 8-K. The Company shall also be entitled to file a copy of this Agreement as an exhibit to its quarterly report on Form 10-Q for the fiscal quarter ending in July 2008. No other written public release or written announcement concerning the
transactions contemplated hereby shall be issued by any party without the prior 

  

 22 

 
written consent of the other party (which consent shall not be unreasonably withheld), except as such release or announcement may be required by law or the
rules or regulations of any securities exchange, in which case the party required to make the release or announcement shall, to the extent reasonably practicable, allow the other party reasonable time to comment on such release or announcement in
advance of such issuance. 
 (b) The provisions of this Section 6.02 shall not (i) restrict the ability of a party to
summarize or describe the transactions contemplated by this Agreement in any prospectus or similar offering document so long as the other party is provided a reasonable opportunity to review such disclosure in advance, or (ii) limit the
disclosure to any accountants, attorneys or advisors of the parties hereto of this Agreement or the transactions contemplated hereby, so long as such accountants, attorneys or advisors agree to be bound by the non-disclosure obligations contained in
this Section 6.02. 
 Section 6.03. Further Assurances. Each of the Purchaser and the Company shall use its commercially
reasonable best efforts to (a) take all actions necessary or appropriate to consummate the transactions contemplated by this Agreement and (b) cause the fulfillment, at the earliest practicable date, of all of the conditions to its
respective obligations to consummate the transactions contemplated by this Agreement; provided that, the Company’s decision to proceed with the Company’s Convertible Senior Notes due between 2011 and 2015 shall be at its sole
discretion. 
 ARTICLE 7 
 INDEMNIFICATIONS 
 Section 7.01. Survival of Representations, Warranties and Agreements. Notwithstanding
any investigation made by any party to this Agreement, all representations and warranties made by the Company, the Purchaser and the Guarantor herein shall survive the execution of this Agreement, the delivery to the Purchaser of the Shares being
purchased and the payment therefor until the date twenty four (24) months after the First Closing, except that the Company Fundamental Reps and the representations and warranties of the Purchaser and the Guarantor set forth in
Section 4.02(c) through (g), (i), (j) (l) and (m) shall survive until the expiration of the applicable statute of limitations. All covenants and agreements made by the Company, the Purchaser and the
Guarantor herein shall survive the execution of this Agreement, the delivery to the Purchaser of the Shares being purchased and the payment therefor. 
 Section 7.02. Indemnification. (a) Effective at and after the First Closing Date, the Company hereby indemnifies the Purchaser, its Affiliates and their respective successors and assignees and,
effective at the First Closing Date, without duplication, the Guarantor, each subsidiary and their respective successors and assignees against and agrees to hold each of them harmless from any and all damage, loss, liability and expense (including
reasonable expenses of investigation 

  

 23 

 
and reasonable attorneys’ fees and expenses in connection with any action, suit or proceeding whether involving a third party claim or a claim solely
between the parties hereto and any incidental, indirect or consequential damages, losses, liabilities or expenses, and any lost profits or diminution in value) (“Damages”), incurred or suffered by the Purchaser, any Affiliate of the
Purchaser, the Guarantor, any subsidiary or any of their respective successors and assignees arising out of any misrepresentation or breach of warranty (each such misrepresentation and breach of warranty a “Warranty Breach”) or
breach of covenant or agreement in any material respect made or to be performed by the Company pursuant to this Agreement. 
 (b) Effective
at and after the First Closing Date, the Purchaser hereby indemnifies the Company, its Affiliates and their respective successors and assignees against and agrees to hold each of them harmless from any and all Damages incurred or suffered by the
Company, any of its Affiliates or any of their respective successors and assignees arising out of any Warranty Breach or breach of covenant or agreement made or to be performed by the Purchaser pursuant to this Agreement. 
 Section 7.03 Procedures. In case any proceeding (including any governmental investigation) shall be instituted involving any person in
respect of which indemnity may be sought pursuant to Section 7.02, such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying
party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may
designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any
impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the
indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in
addition to any local counsel) for all indemnified parties, and that all such fees and expenses shall be reimbursed as they are incurred. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. No
indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. 
  

 24 

 ARTICLE 8 
 MISCELLANEOUS 
 Section 8.01. Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand
delivery, (ii) upon confirmation, if made by telecopier, (iii) one (1) business day after being deposited with such courier, if made by overnight courier or (iv) on the date indicated on the notice of receipt, if made by
first-class mail, to the parties as follows: 
  

	 	(a)	if to the Purchaser, to: 

 COFCO (Hong Kong) Limited

 33 Floor Top Glory Tower 
 262
Gloucester Road 
 Causeway Bay 
 Hong Kong 
 Attention: Lisa Luo 
 With a copy (which shall not constitute notice) to: 
 Davis Polk & Wardwell 
 The Hong Kong Club Building 
 3A Chater Road

 Hong Kong 
 Attention: Kirtee
Kapoor 
 Davis Polk & Wardwell 
 26/F, Twin Towers West 
 B12, Jian Guo Men Wai Avenue 
 Chao Yang District 
 Beijing 100022 P.R. China 

			
	Attention:	 	Show-Mao Chen
		 	Howard Zhang

  

	 	(b)	if to the Company, to: 

 Smithfield Foods, Inc. 

200 Commerce Street 
 Executive Office
Building 
 Smithfield, VA 23430 
 Attention: Michael H. Cole 
  

 25 

 With a copy (which shall not constitute notice) to: 
 Hogan & Hartson L.L.P. 
 555
Thirteenth Street N.W. 
 Washington, D.C. 20004 

			
	Attention:	 	J. Warren Gorrell, Jr.
		 	Bruce W. Gilchrist

 (c) If to the Guarantor, to 
 COFCO (Hong Kong) Limited 
 33 Floor Top Glory
Tower 
 262 Gloucester Road 
 Causeway Bay 
 Hong Kong 
 Attention: Lisa Luo 
 With a copy (which shall not constitute notice) to: 
 Davis Polk & Wardwell 
 The Hong Kong
Club Building 
 3A Chater Road 
 Hong Kong 
 Attention: Kirtee Kapoor 
 Davis Polk & Wardwell 
 26/F, Twin Towers West 
 B12, Jian Guo Men Wai Avenue 
 Chao Yang
District 
 Beijing 100022 P.R. China 

			
	Attention:	 	Show-Mao Chen
		 	Howard Zhang

 or to such other address as such person may have furnished to the other persons identified in this Section
8.01 in writing in accordance herewith. 
 Section 8.02. Severability. If any term provision, covenant or restriction of this
Agreement is held to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated
thereby, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction, it being intended that
all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  

 26 

 Section 8.03. Modification; Amendment. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented unless pursuant to an instrument in writing signed by the party against whom enforcement is sought. 
 Section 8.04. Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and is intended to be a
complete and exclusive statement of the agreement and understanding of the parties hereto with respect to the subject matter contained herein. Except as provided in this Agreement, there are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein, with respect to such matters. This Agreement supersedes all prior agreements and undertakings among the parties with respect to such matters. No party hereto shall have any rights, duties or
obligations other than those specifically set forth in this Agreement. 
 Section 8.05. Counterparts. This Agreement may be
signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 Section 8.06. Applicable Law and Submission to Arbitration. 
 (a) This Agreement will be governed
by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed within the State of New York. 
 (b) The parties to this Agreement shall attempt to settle any dispute, difference, controversy or claim of any kind arising out of or relating to this Agreement (including, but not limited to the breach, termination,
construction, execution, operation, effect or invalidity of this Agreement) (a “Dispute”) through friendly consultation between the parties. If the Dispute cannot be resolved through consultation for any reason within fifteen
(15) days, or such other period as may be extended in writing by the parties, of the Dispute being first notified to the other parties, the Dispute shall be settled definitively, finally and exclusively by binding arbitration as provided in
this Section. 
 (c) If the parties are unable to resolve a Dispute as provided in this Section 8.06, the matter shall, at the written
notice of any party, be definitively, finally and exclusively determined and settled pursuant to arbitration in Singapore, in accordance with the International Arbitration Rules of the International Chamber of Commerce (the “Rules”)
by three (3) arbitrators, one (1) to be appointed by Purchaser and Guarantor, one (1) to be appointed by the Company, and a neutral arbitrator to be appointed by such two (2) party-appointed arbitrators. The neutral arbitrator
shall not be a People’s Republic of China or United States citizen, shall be an attorney and shall act as chairperson. Any such arbitration may be initiated 

  

 27 

 
by a party by written notice (“Arbitration Notice”) to the other parties specifying the subject of the requested arbitration and appointing
such party’s arbitrator for such arbitration. Should (i) a party receiving an Arbitration Notice fail to appoint an arbitrator as herein above contemplated by written notice to the party giving the Arbitration Notice within fifteen
(15) days after the receipt of the Arbitration Notice, or (ii) the two (2) arbitrators appointed by or on behalf of the parties as contemplated in this Section hereof fail to appoint a neutral arbitrator as herein above contemplated
within fifteen (15) days after the date of the appointment of the last arbitrator appointed by or on behalf of the parties, then the Singapore International Arbitration Centre, upon application of Purchaser/Guarantor or the Company involved in
the Dispute, shall appoint an arbitrator to fill any such position with the same force and effect as though such arbitrator had been appointed as herein above contemplated. 
 (d) The language to be used in the arbitration proceedings shall be English, such that all proceedings, written submissions, and rulings shall be in
English. Further, if documents exchanged by the parties pursuant to a discovery request are written in a language other than English, the party producing the documents must also provide, at the time of production, a certified English translation of
the documents. Costs of translation shall be borne by the producing party. 
 (e) Once the arbitration panel is constituted and except as may
otherwise be agreed in writing by the parties involved in such Dispute or as ordered by the arbitrators upon substantial justification shown, the hearing for the Dispute will be held within ninety (90) days after submission of the Dispute to
arbitration. The arbitrators shall render their final award within sixty (60) days, subject to extension by the arbitrators upon substantial justification shown of extraordinary circumstances, following conclusion of the hearing and any
required post-hearing briefing or other proceedings ordered by the arbitrators. 
 (f) A determination, award or other action shall be
considered the valid action of the arbitrators if supported by the affirmative vote of at least two (2) of the three (3) arbitrators. The arbitration award shall be final and conclusive and shall receive recognition, and judgment upon such
award may be entered and enforced in any court of competent jurisdiction. In the event of any conflict between the Rules and the provisions of this Section, the provisions of this Section shall govern and control. Any damage awards by the
arbitrators shall be promptly paid free of any deduction or offset; and any costs or fees incident to enforcing the award shall to the maximum extent permitted by applicable law be charged against the party resisting such enforcement. Subject to the
provisions of this Agreement, the arbitrators shall have the power to award any type of relief that is just and appropriate in the arbitrators’ discretion, including damages, injunctive orders, orders for specific performance and declarations
of rights. 
 (g) The arbitration fees and costs of arbitration shall be borne by the losing party or as directed by the arbitration panel.

  

 28 

 (h) In the course of arbitration, both parties shall continue to perform their obligations under this
Agreement except the parts under arbitration. 
 (i) Nothing in this Agreement shall limit the rights of the parties to engage in reasonable
discovery, including in the form of written discovery and depositions, whether fact or expert, in order to obtain information necessary to prosecute or defend the claims brought. Any disputes regarding discovery shall be determined by the
arbitration panel, which determination shall be final and binding. 
 (j) Nothing herein contained shall be construed as preventing any party
from instituting legal action in any court in any jurisdiction against any other party for any interim, provisional or injunctive relief to the full extent permitted under applicable law, pending final resolution of any Dispute under this Section.
Any such interim, provisional or injunctive relief and the right thereto shall fully and finally expire no later than upon judicial confirmation of the final arbitration award, unless such relief is continued by the final arbitration award. The
institution and maintenance of any judicial action or proceeding for such provisional relief shall not constitute a waiver of the right or obligation of any party to submit any Dispute to arbitration, including any Dispute arising from the exercise
of any such interim, provisional or injunctive relief. 
 (k) The provisions of this Section shall survive any termination, cancellation or
expiration of this Agreement. If any provisions of this Section shall be held invalid or unenforceable against any party, in whole or in part, by a court of competent jurisdiction, such provision shall be ineffective only to the extent of such
invalidity or unenforceability and shall not invalidate the remaining provisions of this Section of this Agreement. 
 (l) The arbitrators
shall provide a comprehensive written opinion, with detained findings of fact and conclusions of law. The arbitrators’ decision shall be final and binding as to questions of fact and law and any decision of the arbitrators may be entered in,
and enforced by, any court having jurisdiction. 
 (m) Each party hereby consents to process being served by any party to this Agreement in
any suit, action or proceeding by delivery of a copy thereof in accordance with the provisions of Section 8.01. 
 Section 8.07. Termination. This Agreement may be terminated at any time prior to each Closing: 
 (a) by either the
Purchaser or the Company if such Closing shall not have occurred by the 90th calendar day following the date of this Agreement; 
 (b) by
either the Purchaser or the Company if the conditions precedent to First Closing are not satisfied within 16 calendar days following the date of this Agreement; 
  

 29 

 (c) by either the Purchaser or the Company in the event that any Governmental Entity shall have issued an
order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and nonappealable; 

(d) by the mutual written consent of the Purchaser and the Company; or 
 (e) by either the Purchaser or the Company, upon notice to the other party if such party in good faith reasonably determines that one or more conditions set forth in Article 3 has become impossible to be
satisfied on or prior to the 90-day period as described in Section 8.07(a) above. 
 In the event of termination of this
Agreement as provided in this Section 8.07, this Agreement shall forthwith become void and there shall be no liability on the part of either party hereto provided that nothing herein shall relieve either party from liability for any
breach of this Agreement prior to termination. 
 Section 8.08. Headings. The headings of the sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed a part of this Agreement. 
 Section 8.09. Facsimile. The
parties agree that execution of this Agreement by facsimile transmission or pdf email shall be legally valid and binding. 
 Section 8.10 Non-Occurrence of Second Closing. Notwithstanding anything to the contrary herein, if the Second Closing does not occur due to the Purchaser asserting the occurrence of a Material Adverse Effect, then at the
Company’s request, the Guarantor shall cause Mr. Ning or other Purchaser Nominee to resign from the Board of Directors. If Mr. Ning or other Purchaser Nominee resigns pursuant to the preceding sentence, then the Purchaser’s and
its Purchaser Affiliates’ obligations under Sections 5.02(c)-(g) shall immediately and automatically become null and void. 
  

 30 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

			
	STARBASE INTERNATIONAL LIMITED
		
	By:	 	 /s/ Yu Xubo

	Name:	 	Yu Xubo
	Title:	 	Director
		
		 	Number of Shares: 7,000,000

 As Guarantor of the Purchaser’s obligations under this Agreement: 
  

			
	COFCO (HONG KONG) LIMITED
		
	By:	 	 /s/ Yu Xubo

	Name:	 	Yu Xubo
	Title:	 	Director

 Agreed to and Accepted by: 
  

			
	SMITHFIELD FOODS, INC.
		
	By:	 	 /s/ Richard J.M. Poulson

	Name:	 	Richard J.M. Poulson
	Title:	 	Executive Vice President

  

 31Exhibit 10.5

 Exhibit 10.5 
 MERGER PROTOCOL 
 between 
 Campofrío Alimentación, S.A. 
 and 
 Groupe Smithfield Holdings, S.L. 
 and others 

 Confidential 
 Execution copy 
 30 June 2008 
 In Madrid, on 30th June 2008. 
 BY AND BETWEEN 
 CAMPOFRÍO ALIMENTACIÓN, S.A., a company incorporated under the laws of Spain, with its
registered office at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, with Tax Identification Number A-09000928, registered with the Mercantile Registry of Madrid under Volume 311, Sheet 6204, Page 111, duly
represented for the purposes hereof by Mr. Pedro Ballvé Lantero, of legal age, holder of Identity Card number 50407273-J, with professional address at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid,
Spain, in his capacity as authorized representative of the company by virtue of the meeting minutes of the Board of Directors of Campofrío Alimentación, S.A. of June 27th
, 2008 (hereinafter, “Campofrío”); 
 GROUPE SMITHFIELD HOLDINGS, S.L., a company incorporated under the laws of Spain, with its registered office at Don Ramón de la Cruz 17 izqda., 28006 Madrid, Spain, with Tax Identification Number B-84732882, registered with
the Mercantile Registry of Madrid under Volume 22822, Section, 8, Sheet 222, Page 408552, duly represented for the purposes hereof by Mr. Richard Jasper Poulson, of legal age, holder of U.S.A. Passport number 017090187, with professional
address at 499, Park Avenue 6th Floor, New York, NY, U.S.A., in his capacity as authorized representative of the company by virtue of meeting
minutes of the Board of Directors of Groupe Smithfield Holdings, S.L. of June 27, 2008 (hereinafter, “GSH”); 
 CARBAL, S.A., a
company incorporated under the laws of Spain, with its registered office at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, with Tax Identification Number A-78071396, registered with the Mercantile Registry of
Madrid under Volume 7014, Sheet 153, Page 114081, duly represented for the purposes hereof by Mr. Pedro Ballvé Lantero, of legal age, holder of Identity Card number 50407273-J, with professional address at Avenida de Europa 24, Parque
Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, in his capacity as authorized representative of the company by virtue of power of attorney granted on May 24, 2005 before the Notary of Madrid Mr. María Bescos Badia with
number 2005/952 of his records; 
 BITONCE, S.L., a company incorporated under the laws of Spain, with its registered office at Avenida de Europa 24,
Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, with Tax Identification Number B-95041240, registered with the Mercantile Registry of Madrid under Volume 15258, Sheet 162, Page 255566, duly represented for the purposes hereof by
Mr. Pedro Ballvé Lantero, of legal age, holder of Identity Card number 50407273-J, with professional address at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, in his capacity as authorized
representative of the company by virtue of power of attorney granted on October 15, 2003 before the Notary of Madrid Mr. María Bescos Badia with number 2003/1065 of his records; 
  

 2 

 Confidential 
 Execution copy 
 30 June 2008 
  

 BETÓNICA 95, S.L., a company incorporated under the laws of Spain, with its registered office at
Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, with Tax Identification Number A-80019748, registered with the Mercantile Registry of Madrid under Volume 1102, Sheet 219, Page 21014, duly represented for the
purposes hereof by Mr. Pedro Ballvé Lantero, of legal age, holder of Identity Card number 50407273-J, with professional address at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, in his capacity as
authorized representative of the company by virtue of power of attorney granted on March 6, 2008 before the Notary of Madrid Mr. María Bescos Badia with number 2008/260 of his records; 
 CARTERA NUVALIA, S.L., a company incorporated under the laws of Spain, with its registered office at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109,
Alcobendas, Madrid, Spain, with Tax Identification Number B-83310334, registered with the Mercantile Registry of Madrid under Volume 17652, Sheet 31, Page 303903, duly represented for the purposes hereof by Mr. Luis Serrano Martín, of
legal age, holder of Identity Card number 4114433-D, with professional address at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, in his capacity as authorized representative of the company by virtue of power
of attorney granted on January 20, 2006 before the Notary of Madrid Mr. Francisco Aguilar González with number 2006/188 of his records; 
 ALINA CORPORATE, S.L., a company incorporated under the laws of Spain, with its registered office at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, with Tax Identification Number A-78891728,
registered with the Mercantile Registry of Madrid under Volume 2599, Sheet 211, Page 45224, duly represented for the purposes hereof by Mr. Luis Serrano Martín, of legal age, holder of Identity Card number 4114433-D, with professional
address at Avenida de Europa 24, Parque Empresarial La Moraleja, 28109, Alcobendas, Madrid, Spain, in his capacity as authorized representative of the company by virtue of power of attorney granted on May 14, 2008 before the Notary of Madrid
Mr. Francisco Aguilar González with number 2008/1323 of his records; 
 OCM EUROPEAN PRINCIPAL OPPORTUNITIES FUND L.P., a Cayman Islands
exempted limited partnership, with registered offices in the Cayman Islands at c/o Walkers SPV Limited, Walker House, PO Box 908GT, Mary Street, George Town, Grand Cayman, and principal offices in the United States at 333 South Grand Avenue, 28th
Floor, Los Angeles, California 90071; with Tax Identification Number 98-0486140 duly represented for the purposes hereof by Ms. Emily Alexander, of legal age, holder of Passport number 057497443, with professional address at 333, South Grand
Avenue, Los Angeles, CA 90071-1530, United States, in her capacity as authorized signatory of the company by virtue of the signature resolutions of Oaktree Capital Management, L.P. dated as of March 17, 2008.and by Mr. Caleb Kramer, of
legal age, holder of Passport number 039728881, with professional address with professional address at 333, South Grand Avenue, Los Angeles, CA 90071-1530, United States, in his capacity as authorized signatory of the company by virtue of the
signature resolutions of Oaktree Capital Management, L.P. dated as of March 17, 2008. 
  

 3 

 Confidential 
 Execution copy 
 30 June 2008 
  

 SMITHFIELD FOODS, INC., a company incorporated under
the laws of Virginia (U.S.A.), with registered office at 200, Commerce Street, Smithfield 23430, Virginia, U.S.A. with Tax Identification Number 52-0845861, duly represented for the purposes hereof by Mr. Richard Jasper Poulson, of legal age,
holder of U.S.A. Passport number 017090187, with professional address at 499, Park Avenue 6th Floor, New York, NY, U.S.A., in his capacity as
authorized representative of the company; 
 SFDS GLOBAL HOLDINGS B.V., a company incorporated
under the laws of The Netherlands, with registered office at Naritaweg 165, 1043, BW Amsterdam, The Netherlands, duly represented for the purposes hereof by Mr. Richard Jasper Poulson, of legal age, holder of U.S.A. Passport number 017090187,
with professional address at 499, Park Avenue 6th Floor, New York, NY, U.S.A., in his capacity as authorized representative of the company;

 OCM LUXEMBOURG EPOF MEATS HOLDING SARL, a “société à responsabilité limitée” incorporated under
the laws of Luxembourg, with registered office at 67, Boulevard Grand-Duchesse Charlotte, L-1331, Luxembourg, with Tax Identification Number 2006 2430 878, registered with the Mercantile Registry of Luxembourg under the reference B 118.699, duly
represented for the purposes hereof by Mr. Justin Bickle, of legal age, holder of UK Passport number 302256106, with professional address at 27 Knightsbridge, London, SW1X 7LY, United Kingdom, and Mr. Szymon Dec, of legal age, holder of
Polish Passport number AK 6513201, with professional address 53, avenue Pasteur L-2311 Luxembourg, Grand Duchy of Luxembourg in their capacity as directors and authorized representatives of the company by virtue of the articles of association,
adopted in form of a notarial deed on July 25, 2006 before the Notary of the city of Mersch Mr. Henri Hellinckx with number 2151/06 of his records, and subsequently amended on December 5, 2006; 
 OCM LUXEMBOURG OPPS MEATS HOLDING SARL, a “société à responsabilité limitée” incorporated under the laws of
Luxembourg, with registered office at 67, Boulevard Grand-Duchesse Charlotte, L-1331, Luxembourg, with Tax Identification Number 2006 2427 869, registered with the Mercantile Registry of Luxembourg under the reference B 118.210, duly represented for
the purposes hereof by Mr. Christopher Boehringer, of legal age, holder of Canadian Passport number BA304172, with professional address at 27 Knightsbridge, London, SW1X 7LY, United Kingdom, and Mr. Szymon Dec, of legal age, holder of
Polish Passport number AK 6513201, with professional address 53, avenue Pasteur L-2311 Luxembourg, Grand Duchy of Luxembourg in their capacity as directors and authorized representatives of the company by virtue of the articles of association,
adopted in form of a notarial deed on July 27, 2006 before the Notary of the city of Luxembourg Mr. Jean-Joseph Schwachtgen with number 1138 of his records, and subsequently amended on December 15, 2006. 
  

 4 

 Confidential 
 Execution copy 
 30 June 2008 
  

 Campofrío and GSH shall be referred to herein, jointly, as the “Merging Companies”.

 SFDS GLOBAL HOLDINGS B.V., OCM LUXEMBOURG EPOF MEATS HOLDING SARL and OCM LUXEMBOURG OPPS MEATS HOLDING SARL shall be hereinafter collectively referred to
as the “GSH Shareholders” 
 CARBAL S.A., BITONCE S.L., BETÓNICA 95 S.L., CARTERA NUVALIA S.L. and ALINA CORPORATE S.L. shall be
hereinafter collectively referred to as the “Reference Shareholders”. 
 The GSH Shareholders and the Reference Shareholders shall be
hereinafter collectively referred to as the “Shareholders”. 
 Campofrío, GSH and the Shareholders shall be hereinafter collectively
referred to as the “Parties” and, individually, as a “Party”. 
 OCM EUROPEAN PRINCIPAL OPPORTUNITIES FUND L.P. is party to
this Merger Protocol only for the purposes of section 6.1.3. 
 The Parties mutually acknowledge their authority to enter into this Merger Protocol
(hereinafter the “Merger Protocol” or the “Agreement”) and to such extent they 
 STATE 

 

	I.	Campofrío is a company engaged in the business of production and marketing of meat products (the “Business”). Campofrío is the parent company of a
group of companies which are also engaged in the Business. The current composition of Campofrío’s group is included in Annex I (the “Campofrío Group”). 

 Campofrío’s share capital is equal to Euro 52,643,724, divided into 52,643,724 shares of 1 Euro each, which are admitted to trading in the
Spanish Stock Exchanges of Madrid and Barcelona and admitted for trading in the Spanish Stock Exchange Interconnection System (Sistema de Interconexión Bursátil Español (Mercado Continuo)). 
  

	II.	GSH, a holding company, is the parent company of a group of companies also engaged in the Business. The current composition of GSH’ group is included in Annex II (the
“GSH Group”). 

 GSH share capital is equal to Euro 38,837,178, divided into 38,837,178 quotas of 1 Euro each,
which are owned on a 50-50% basis by (i) SFDS GLOBAL HOLDINGS B.V. (“SFD”) and by (ii) OCM LUXEMBOURG EPOF MEATS HOLDING SARL (34.31%) and OCM LUXEMBOURG OPPS MEATS HOLDING SARL (15.69%). 
  

	III.	SMITHFIELD FOODS, INC., a Virginia (U.S.A.) corporation (“SF”) is the parent company of a group of companies engaged in the Business, which includes COLD FIELD
INVESTMENTS, LLC, a Delaware (U.S.A.) limited liability company (“CF”), SMITHFIELD INSURANCE COMPANY, LTD., a company organized under the laws of Bermuda (“SI”), and SFDS GLOBAL HOLDINGS, B.V.,
(“SFO”) a company organized under the laws of The Netherlands (the “SF Group”). 

  

 5 

 Confidential 
 Execution copy 
 30 June 2008 
  

 CF and SI own 21.367% and 2.572% of Campofrío shares, respectively. Therefore, SF is the
indirect owner through CF and SI of an aggregate of 23.939% of Campofrío shares. 
  

	IV.	The Parties entered into negotiations leading to a non-binding Memorandum of Understanding (the “MOU”) by virtue of which they set out the basic principles of the
proposed integration by Campofrío and GSH, through the merger of GSH into Campofrío and the subsequent integration of the GSH Group under the ownership of Campofrío as well as the Exchange Ratio (as defined below) for the shares
and the quotas. 

  

	V.	Following the execution of the MOU and in accordance with its terms, the Merging Companies have carried out certain actions, including the performance by the Merging Companies,
through their respective advisors, of a reciprocal confirmatory due diligence exercise (the “Confirmatory Due Diligence”), by means of which the Parties have had access to certain information and documentation of the respective
Campofrío and GSH business groups, in order to permit the Parties to confirm the basis, terms and conditions initially agreed for the transaction and for the determination of the Exchange Ratio. 

  

	VI.	In accordance with the above, the respective Boards of Directors of the Merging Companies have approved the Corporate Documents (as defined below) and the execution of this Merger
Protocol. 

 NOW THEREFORE, the Parties have agreed to enter into this Merger Protocol pursuant to the following 
 CLAUSES 
 CLAUSE 1. PURPOSE OF THE AGREEMENT 

 Subject to the terms and conditions of this Merger Protocol, the Parties agree to execute the merger of GSH into Campofrío, pursuant to section
233.2 and complementary provisions of the Royal Legislative Decree 1564/1989 of 22 December (the “Spanish Companies Act”), by means of the extinction of GSH as absorbed company, and the transfer of its assets and liabilities
(patrimonio social) to Campofrío, as absorbing company, which shall increase its share capital, and issue and deliver to GSH Shareholders new Campofrío shares as determined by the Exchange Ratio, as defined below (the
“Merger”). As a result of the Merger, the separate corporate existence of GSH shall cease and Campofrío shall continue as the surviving corporation of the Merger. 
  

 6 

 Confidential 
 Execution copy 
 30 June 2008 
  

 CLAUSE 2. EXECUTION OF THE MERGER 
 In addition to those specifically set out in this Merger Protocol, the terms and conditions of the Merger shall be those set out in (i) the merger project (“Merger Project”), and (ii) the
proposal of amendments to the bylaws and to the corporate governance regulations of Campofrío (all such, the “Governance Amendments” and collectively with the Merger Project, the “Corporate Documents”). The
Corporate Documents have been approved by the Board of Directors prior to the execution of this agreement, and shall be submitted to the approval of the general shareholders meetings approving the Merger, pursuant to sections 234 and 238 (f) of
the Spanish Companies Act. The Corporate Documents are attached as Annex 2.1, and shall be considered as an integral part of this Merger Protocol. 
 Subject to the terms and conditions of this Merger Protocol, the Merging Companies and the Shareholders hereby undertake to take all the necessary or convenient actions to validly execute the Merger in accordance with this Merger Protocol
and the Corporate Documents and, to this extent, they shall take all necessary or convenient steps to duly and timely implement the detailed timetable and action plan set out in Annex 2.2, so that subject to the fulfillment of the Conditions
Precedent for the Completion (as defined below), the Merger is submitted to the approval of the General Shareholders Meetings of the Merging Companies prior to 30 October 2008. 
 The Merging Companies and the Shareholders shall promote the Merger process and abstain from carrying out any acts that could (i) impede the Merger or (ii) render its execution more difficult or under terms
and conditions different to those set out in the Corporate Documents and this Merger Protocol. In particular, the Shareholders respectively undertake the following commitments: 
  

	(a)	The GSH Shareholders, as the owners of all of GSH share capital, shall hold the applicable General Shareholders Meetings of GSH simultaneously with the General Shareholders Meeting
of Campofrío referred to below, and vote in favor of the Merger; and 

  

	(b)	The Reference Shareholders shall attend to the applicable General Shareholders Meetings of Campofrío and vote in favor of the Merger and undertake to make their best efforts
so that the shareholders identified in Annex 2.3, attend and vote in favor of the Merger at Campofrío’s General Shareholders Meeting. 

 CLAUSE 3. BASIC PRINCIPLES OF THE MERGER 
  

	3.1	Rationale of the Merger and Economic Justification 

 It is the
Parties understanding that the Merger will allow Campofrío to become a leading processed meats company in Europe and will be able to generate significant synergies by combining with GSH. In this sense, the Merging Companies have identified
important synergies including sourcing, manufacturing and cross-selling and believe that the Merger affords the best opportunity to achieve these savings. 
  

 7 

 Confidential 
 Execution copy 
 30 June 2008 
  

 The execution of the Merger as well as its terms and conditions has been agreed upon by the Parties on the basis of
business and industrial rationale and does not intend nor pursue the granting of control over Campofrío. The Corporate Documents have been agreed between the parties to meet this underlying principle. 
  

	3.2	Exchange Ratio. Capital Increase 

 The Merger shall be carried out
through the issue and delivery of newly issued Campofrío shares to GSH Shareholders, in proportion to their respective stakes, in accordance with the Exchange Ratio. 
 The Merging Companies have determined an exchange ratio (the “Exchange Ratio”) according to which 49,577,099 shares of Campofrío with a par value of 1 euro each shall be delivered in exchange
of 38,837,178 quotas of GSH with a par value of 1 euro each. 
 On the basis of the Exchange Ratio, Campofrío shall increase its share capital in the
amount of 49,577,099 euros, issuing 49,577,099 ordinary shares with a par value of 1 euro each, represented by book entries, which will be listed in the Madrid and Barcelona Stock Exchanges as well as admitted for trading in the Spanish Stock
Exchange Interconnection System (Sistema de Interconexión Bursátil Español (Mercado Continuo)). 
 The Exchange Ratio has
been agreed by the Boards of Directors on the basis of fair value (“valor real del patrimonio”) of the Merging Companies, taking into consideration generally accepted methods and valuation criteria that the Board of Directors have
deemed relevant, and the respective Consolidated Financial Statements (as defined below). Additionally, the determination of the Exchange Ratio has been agreed taking into account the distribution of dividends in favour of Campofrio’s
shareholders as stated in clause 5 (c) (i). 
 The Board of Directors of Campofrío has
received the opinion of its financial advisor, Goldman Sachs International, dated as of June 27th, 2008, to the effect that, based upon and
subject to the assumptions, qualifications, limitations and other matters set forth in such opinion, as of such date, the Exchange Ratio pursuant to this Merger Protocol and the Merger Project is fair from a financial point of view to
Campofrío. 
  

	3.3	Merger balance sheets. Consolidated Financial Statements 

 Pursuant
to the provisions set forth in article 239 of the Spanish Companies Act, Campofrío and GSH have chosen as Merger Balance Sheets, their respective individual balance sheets closed on April 30, 2008. The Merger Balance Sheets shall be
reviewed by Ernst & Young, auditor of Campofrío and GSH. 
 In addition to the above, the Merging Companies have delivered to each other the
annual consolidated financial statements as follows (the “Consolidated Financial Statements”): 
  

 8 

 Confidential 
 Execution copy 
 30 June 2008 
  

	•	 	 Campofrío has delivered Consolidated Financial Statements as per December 31, 2007, subject to IFRS and an audit report stating that, in the opinion of
the auditor, such Financial Statements provide a faithful and accurate description of the net worth, financial situation and profits of Campofrío and its consolidated group as of the date of reference. 

  

	•	 	 GSH has delivered Consolidated Financial Statements as per April 30, 2008, subject to IFRS, audit report pending. 

 GSH undertakes to deliver prior to the calling Campofrío’s general shareholders meeting the audit report on the GSH Consolidated Financial
Statements, confirming that, in the opinion of the auditor, such Consolidated Financial Statements provide a faithful and accurate description of the net worth, financial situation and profits of GSH and its consolidated group as of the date of
reference (“GSH Audit Report”). 
 CLAUSE 4. CONDITIONS PRECEDENT 
 The Merger is subject to the conditions precedent set forth in this Clause (the “Conditions Precedent”) being entirely fulfilled. 
 The Merging Companies and the Shareholders shall take all reasonable steps to fulfill all of the Conditions Precedent. 
  

	4.1	Conditions Precedent to the calling of the Merging Companies’ respective shareholders meetings to approve the Merger 

 The decision to submit the approval of the Merger to the Merging Companies’ respective shareholders meeting and the Shareholders’ undertakings to vote in favor
of the Merger is subject to the following Conditions Precedent: 
  

	4.1.1	Independent Expert 

 Prior to the calling of Campofrío and
GSH General Shareholders Meetings, the Independent Expert to be appointed by the Mercantile Registry, in accordance with article 236 of Spanish Companies Act and related provisions, in order to assess the Merger Project, shall have issued its
report, in which it will include all the requirements indicated in article 236.4 of the Spanish Companies Act. 
  

	4.1.2	GSH Audit Report 

 GSH shall have delivered to Campofrío the
GSH Audit Report in the terms established in clause 3.3. 
  

 9 

 Confidential 
 Execution copy 
 30 June 2008 
  

	4.1.3	Authorizations and waivers 

 Without prejudice of any other
authorizations that may be applicable: (i) obtaining the relevant waivers that may be required in relation with any covenants or provisions set forth in the respective existing financial agreements (the “Financial Agreements”),
and/or (ii) the prior execution of the relevant facilities that may be needed in order to refinance, if required, the current Financial Agreements. 
  

	4.2	Conditions Precedent to the effectiveness of the Merger 

  

	4.2.1	Absence of Material Adverse Change 

 If a Material Adverse
Change (as defined below) affecting one or both Merging Companies between the date of this Merger Protocol and the date of approval of the Merger by their respective shareholders general meeting has occurred, then each Merging Company may serve
notice (the “MAC Notice”) to the other informing about the Material Adverse Change and the Merging Companies shall negotiate in good faith to amend the terms of this Merger Protocol. 
 If a Material Adverse Change has occurred and the Merging Companies do not agree to an amendment to this Merger Protocol prior to the earliest of (i) thirty
(30) calendar days from the day in which the MAC Notice has been delivered or (ii) the date of the holding of Campofrío ́s General Shareholders Meeting that shall resolve on the Merger if the MAC Notice is delivered less than
thirty days prior to the date of Campofrío General Shareholders Meeting, each Merging Company will have the right to withdraw from, and terminate, this Merger Protocol, provided that such right of withdrawal (the “Withdrawal
Notice”) must be exercised by written notice no later than 40 days from delivery of the MAC Notice. 
 For the avoidance of doubt, if either the MAC
Notice or the Withdrawal Notice, as the case maybe, is not delivered timely in accordance with the provisions herein, the right to notify and/or to withdraw and terminate shall be considered irrevocably waived with respect to the events constituting
the Material Adverse Change, and the condition precedent shall be considered fulfilled. Should a Merging Company deliver a Withdrawal Notice as a result of which the Merger Agreement is terminated, and the courts find that no Material Adverse Change
existed, the Merging Company delivering the Withdrawal Notice shall be fully liable to the other for all damages (“daños y perjuicios”) caused. 
 “Material Adverse Change” means any extraordinary change, circumstance, condition, occurrence or development arising after the execution of this Merger Protocol that (a) has, individually or in
the aggregate, a long term material adverse effect (efecto adverso sustancial) on the business, financial condition, results of operations, assets or properties of any Merging Company (such Merging Company to include its subsidiaries) taken
as a whole or (b) significantly constrains, prohibits or renders illegal, the transactions contemplated by this Merger Protocol, excluding, in either case, any such effect, change, condition, occurrence or development to the extent
directly arising from one or more of the following: (i) public or industry knowledge of the Merger, including any cancellations 

  

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or delay in customer orders, any reductions in sales or revenues, any disruption in supplier, distributor, partner or similar relations or any early
termination of employment by members of the senior management team; (ii) general economic and other conditions affecting the industry in which the Merging Companies compete, including business cycles and changes in the credit and/or capital
markets, or any other national economy where either Merging Company or any of their respective subsidiaries has material operations or sales; (iii) any change in accounting requirements or principles or any change in applicable laws, rules or
regulations or their interpretation, (iv) any change in the market price or trading volume of Campofrío’s listed securities, (v) any failure to meet internal projections or forecast or published revenue or earnings predictions
for any period ending on or after the date of this Merger Protocol; and (vi) any cost or expense reasonably incurred or accrued in connection with the Merger. 
  

	4.2.2	Additional Conditions Precedent 

 The Parties acknowledge and
agree that the effectiveness of the Merging Companies’ respective shareholders meeting merger resolutions shall be subject to the following Conditions Precedent: 
  

	(a)	Antitrust clearances 

 The obtaining of clearance from any relevant
antitrust authorities (collectively, the “Authorization”), including: 
  

	 	•	 	 The Spanish National Competition Commission (Comisión Nacional de la Competencia); 

  

	 	•	 	 The Portuguese Competition Authority (Autoridade da Concorrencia); and 

  

	 	•	 	 The German Federal Cartel Office (Bundeskartellamt) 

 The Merging Companies and, when applicable, the Shareholders, hereby undertake to collaborate in good faith to obtain the Authorization as soon as legally feasible and in any event before 30 November 2008 (the “Expiry
Date”). 
 To this extent, the Merging Companies undertake to (a) prepare and file with the appropriate anti-trust authorities as soon as
practicable following the date of this Merger Protocol such documents, notifications and filings as are required to obtain the Authorisation for the satisfaction of the Condition Precedent established in this Clause, and (b) act diligently and
to comply with all the requirements needed to obtain the Authorization from the antitrust authorities as soon as practicable following the date of this Merger Protocol. 
 If the antitrust authorities declare the Authorization subject to conditions that entail making changes to this Merger Protocol or to the structure of the transactions described herein, and one of the Parties
reasonably considers that such changes significantly affect the economic balance of the obligations of the Parties, they shall, during a period of two (2) months (not to exceed, in any case, the Expiry Date), negotiate in good faith to reach a
solution which re-establishes such balance. Should the Expiry Date arrive without the Parties having reached a mutually satisfactory solution, this Condition Precedent shall not have been satisfied. 
  

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 Should the relevant antitrust authorities deny their Authorisation to the Merger or if such Authorisation is not
obtained before the Expiry Date, this Condition Precedent shall not have been satisfied. 
  

	(b)	Granting of the exemption of article 8.g) of the Royal Decree 1066/2007 

 The CNMV granting, without any condition, to SF and the SF Group the exemption set forth in article 8.g) of Royal Decree 1066/2007 (the “Exemption”) or SF obtaining comfort at its own discretion that the Exemption will be
granted. 
 If the CNMV subjects the granting of the Exemption to any condition, SF will have the right, not later than ten (10) Business Days after
such granting, to either accept such condition or not to proceed with the Merger. In the latter case, Campofrío and its shareholders will not have any right to be compensated for any damages or costs caused or incurred in connection with the
proposed Merger. “Business Day” means a day that is not a Saturday, Sunday or a bank holiday in the city of Madrid. 
 If, before the Expiry
Date, (i) the CNMV denies the granting of the Exemption, or (ii) if such Exemption is not granted or (iii) is subject to any condition that is not accepted before Expiry Date by SF, this Condition Precedent shall not have been
satisfied. 
 CLAUSE 5. INTERIM PERIOD 
 The Parties
acknowledge and represent that from 1 January 2008 the Merging Companies have conducted and will conduct their businesses in their ordinary and usual course until the registration of the Merger with the Mercantile Registry (the
“Effective Date”). The period from 1 January 2008 to the Effective Date shall be hereinafter referred to as the “Interim Period”. 
 From the date of this Merger Protocol the Merging Companies shall not, without the consent of the other Merging Company, and unless otherwise results from this Merger Protocol: 
  

	(a)	Issue of any share or convertible instruments, options or warrants or any other instrument which grant any right to the acquisition of shares, other than any issued in relation to
the Merger or any of the agreement terms in this Agreement; 

  

	(b)	Any amendment of the by-laws, other than the by-laws amendments reflected in the Governance Amendments; 

  

	 (c)
	 Any declaration, distribution or payment of dividends or any other payment to the shareholders, including by way of
warrant, notes or other similar instruments (other than (i) Campofrío’s dividends as approved by Campofrío’s ordinary General Shareholders Meeting held on 17 June 2008, which includes a dividend in cash for an
amount of 12 million Euros which shall be paid on July 8th, 2008 and a dividend in kind by delivery of 1,698,185 Campofrio treasury shares
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July 16th, 2008 or (ii) any amounts to be paid
to GSH Shareholders or Campofrío’s shareholders based on the results of any on-going transaction which might be executed prior to the Merger, as referred to in (f) below. 

  

	(d)	Any repurchase, redemption or acquisition, directly or indirectly, of any shares of their share capital other than the ordinary acquisition of treasury shares
(“autocartera”) acquired within the limits of the general shareholders authorization in force. 

  

	(e)	Engage in any material capital expenditure (except as provided for in the annual budget or business plan); and 

  

	(f)	Any negotiation with any third party regarding any transfer of any material part of their industrial or commercial activities, or the entering into any acquisition, merger,
contribution, hive down, alliance or collaboration agreement or other arrangement with respect to any material part of their industrial or commercial activities, other than any on-going negotiations already under way by either Merging Company and as
agreed with the other Merging Company. 

 Any request for a Merging Company’s consent to a proposed transaction under this Clause shall be
deemed accepted by that Merging Company if it fails to issue any decision in this regard within the term of ten (10) calendar days from the date in which it receives the consent request. 
 CLAUSE 6. CORPORATE GOVERNANCE AND OTHER SPECIFIC PROVISIONS 
 The
Parties and their Shareholders acknowledge that they have agreed to the execution of the Merger, inter alia, on the basis of the following corporate governance provisions which each of the Parties agree to comply with and ensure, to the extent
legally possible, compliance with: 
  

	6.1	General provisions concerning Campofrío’s administration and management 

  

	6.1.1	Campofrío and its group companies’ corporate identity 

 Campofrío will maintain its current corporate name and distinctive signs. The corporate names and the distinctive signs of GSH subsidiaries which will be integrated in Campofrío’s group pursuant to the Merger will be
adapted as applicable to the Campofrío’s group own distinctive signs. In particular, these registered names and corporate signs shall delete any reference to Smithfield that could result on confusion with the names and corporate signs of
SF Group. 
  

	6.1.2	Headquarters 

 Campofrío’s main office will be
located in Madrid. 
  

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	6.1.3	Board of Directors 

 After the execution of the Merger, the
Board of Directors of Campofrío shall, in both composition and practice, reflect the company’s status as a leading pan-European company, and will follow the best practices in modern corporate governance. The Parties and the Shareholders
shall take all necessary measures to ensure that the Shareholders General Meeting of Campofrío approving the Merger appoints, pursuant to section 238.1.h) of the Spanish Corporations Act and subject to the effectiveness of the Merger, a new
Board of Directors of nine Directors, the composition of which, will be as follows. 
  

			
	Chairman:	  	Mr. Pedro Ballvé Lantero (Domanial Director proposed by Reference Shareholders)
		
	Board members:	  	Mr. Juan José Guibelalde Iñurritegui (Independent Director)
		
		  	Mr. Guillermo de la Dehesa Romero (Independent Director)
		
		  	Mr. Yiannis Petrides (Independent Director)
		
		  	Mr. Luis Serrano Martín (Domanial Director proposed by Reference Shareholders)
		
		  	Mr. C. Larry Pope (Domanial Director proposed by Smithfield Foods)
		
		  	Mr. Richard Jasper Poulson (Domanial Director proposed by Smithfield Foods)
		
		  	Mr. Caleb Samuel Kramer (Domanial Director jointly proposed by OCM Luxembourg EPOF Meats Holding SARL and OCM Luxembourg OPPS Meats Holding SARL )
		
		  	Mr. Karim Michael Khairallah (Domanial Director jointly proposed by OCM Luxembourg EPOF Meats Holding SARL and OCM Luxembourg OPPS Meats Holding SARL)

 Mr. Caleb Samuel Kramer and Mr. Karim Michael Khairallah will be designated by OCM European Principal
Opportunities Fund L.P. and proposed on behalf of OCM Luxembourg EPOF Meats Holding SARL and OCM Luxembourg OPPS Meats Holding SARL. The Parties acknowledge and accept that Mr. Juan José Guibelalde Iñurritegui will meet all the
terms of the Independent Director definition established in the Código Unificado de buen gobierno de las sociedades cotizadas on 1 January 2009. 
  

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 Mr. Pedro Ballvé Lantero will remain as Chairman of Campofrío for a period of five (5) years
after the execution of the Merger. The Board of Directors will continue to have a Vice-President, who shall be appointed by the Board of Directors. 
 The
initial term of the Directors referred to above will be of five (5) years after the execution of the Merger. The Parties agree that each Shareholder or Shareholders will continuously have the right to designate the number of members to the
Board indicated above upon the expiration of the term, removal, resignation or death of its designee, for consecutive five (5) year-terms, unless the relevant Party has reduced the participation resulting from the Merger and its holding is
below the percentage that proportionally is required to hold the right to appoint such number of Directors pursuant to section 137 of the Spanish Companies Act, in which case it or they may appoint only the number of Directors in proportion to the
percentage as results from such section 137. The Parties agree that any Director proposed by OCM Luxembourg EPOF Meats Holding SARL and OCM Luxembourg OPPS Meats Holding SARL will have to be designated by OCM European Principal Opportunities Fund
L.P. 
 The composition of any Committee within the Board of Directors of Campofrío shall be consistent with the above distribution and the applicable
law and regulations. In any event, future appointments of the Independent Directors will be carried out by a proposal of the Nominations and Remunerations Committee (Comité de Nombramientos y Retribuciones), among the persons included
in a list to be proposed by specialized advisors. 
  

	6.1.4	Management provisions 

 The Parties agree that after the
Merger has been completed the management of Campofrío will be as follows: 
  

	 	(a)	CEO: Mr. Robert Alair Sharpe II 

  

	 	(b)	Senior Management Team 

 After the Merger has been
completed, the new Board of Directors shall appoint a new Nominations and Remuneration Committee, which shall be determined following the same criteria than those applicable to the composition of the Board of Directors and in accordance with the
internal corporate governance regulations. The Nominations and Remuneration Committee shall review and propose to the Board of Directors within the following 9 months after execution of the Merger a slate of candidates for the senior management team
of the company. 
  

	 	(c)	Senior Management Team Incentives 

 The Board of
Directors, following the proposal of the Nominations and Remuneration Committee, shall also approve an incentive plan for the senior management team for the three (3) years after the Merger. 
  

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 Any existing GSH management incentives will be cancelled, at the GSH Shareholders’ cost, prior
to the Merger. 
  

	6.1.5	Business Plan 

 Following the execution of the Merger
Campofrío will run its businesses in accordance with the management business plan for Campofrío that has been approved by the respective Board of Directors of Campofrío and GSH. 
  

	6.1.6	Dividend policy 

 The Merging Companies and the Shareholders
recognize the importance that Campofrío, as listed company, has a defined dividend policy which shall be based on the performance of the company and the available capital. 
 In this regard, the Parties intent is that the dividend of Campofrío should be not less than 50% of its net profits subject to the following priorities having been fulfilled, as resolved by the Board of
Campofrío or as results from the budget approved by the latter: (i) it has funded its requirements at that time of CAPEX for maintenance and growth (such CAPEX expenditures to be not less than depreciation), (ii) it has funded its
current and future investment requirements (provided these have already been approved by the Board and assuming in any event the existence of a reasonable level of financial leveraging) and (iii) it fulfils any restriction under the existing
financial agreements. 
  

	6.2	Campofrío’s By-laws and Corporate Governance regulation 

  

	6.2.1	Campofrío as listed company 

 Campofrío will
remain listed on the Spanish Stock Exchanges. The Parties and the Shareholders shall take all necessary measures to ensure that the new shares of Campofrío issued to execute the Merger are listed as soon as practicable. 
  

	6.2.2	Amendment of Campofrío’s By-laws and Corporate Governance regulations 

 The Parties agree 
  

	(a)	to comply with and ensure compliance with Campofrío’s by-laws as they will be amended by the General Shareholders Meeting approving the Merger as detailed in Annex 2.1
and the Shareholders General Meeting regulation (Reglamento de la Junta General de Accionistas); 

  

	(b)	to ensure that the Board of Directors meeting of Campofrío approving the calling of the General Shareholders Meeting approve the amendments to the Board of Directors internal
regulation (Reglamento del Consejo de Administración) annexed hereto as Annex 2.1 and the Parties agree to comply with and ensure compliance with such internal regulation. 

  

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 The Parties acknowledge and agree that the amendments mentioned above are an essential part to this Merger Protocol
and reflect the Parties’ will on Campofrío’s by-laws and corporate governance regulations to be implemented in the context of the Merger. Consequently, the Parties further undertake to take such steps as may be necessary to register
the amendments to the by-laws detailed in Annex 2.1 as soon as possible after the Merger. If the Mercantile Registry does not consider such amendments fit to be registered in their entirety, they will seek their partial registration, and the Parties
will review in good faith possible amendments as long as they do not alter the undertakings of the Parties under this Merger Protocol. Notwithstanding the forgoing, matters agreed which are not incorporated in the by-laws shall remain binding among
the Parties. In the event of any inconsistency between the by-laws of the Company and this Agreement, the latter shall prevail. 
  

	6.3	Commitments and obligations specifically assumed by the GSH Shareholders 

 The Parties agree that it has been an essential condition to enter into this Merger Protocol and to determine its terms and conditions, that the GSH Shareholders undertake the following: 
  

	6.3.1	Additional Disposition to Campofrío’s By-laws 

 SF, in its capacity as the parent company of the SF Group and therefore ultimate holder of the SF Group’s shareholding in Campofrío, hereby expressly acknowledges and agrees to the additional disposition of
Campofrío’s by-laws established in Annex 2.1., which will be submitted for approval of Campofrío’s General Shareholders Meeting that will resolve on the Merger (the “Additional Disposition”). 
 SF hereby assumes and undertakes to comply with, and ensure compliance by, SFD, CF, and SI (as direct shareholders of Campofrío after the Merger, hereinafter the
“SF Shareholders”), or any successor or assignee, with the Additional Disposition, regardless of whether or not it is entirely or partially registered with the Mercantile Registry, and assumes as “obligado
solidario” the fulfillment of the obligations derived for the SF Shareholders from the Additional Disposition. To this extent, the Additional Disposition shall be binding upon SF (with the same effect and extent as if SF were a direct
shareholder) and the SF Shareholders vis-à-vis Campofrío as it reflects the Parties’ will to enter into this Merger Protocol. 
 The
Parties acknowledge and agree that the last paragraph of section 6.2.2 above includes and applies fully to the Additional Disposition as an amendment to the by-laws included in Annex 2.1. 
  

	6.3.2	Business Opportunities 

 In the event that SF or a company
controlled by SF becomes aware of a business opportunity to acquire, finance or otherwise invest in any business in the processed meats sector within the current member states of the European Union (EU 27) (excluding Poland and 

  

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Romania) (the “Business Opportunity”), SF shall, as long as permitted under applicable law, provide notice of such Business Opportunity to
Campofrío. SF will be authorized to pursue the Business Opportunity upon the earlier of: (i) the Board of Directors of Campofrío has declined the Business Opportunity; or (ii) the passage of 21 calendar days after the date
the notice is received by Campofrío and the Board of Directors has not expressed its agreement on pursuing this Business Opportunity. 
 There shall
be no restrictions on the business activities of SF or a company controlled by SF except as provided above and unless otherwise prohibited by applicable law. 
  

	6.3.3	Termination of GSH Shareholders’ prior shareholders agreements 

 The GSH Shareholders expressly agree to terminate before the Effective Date all prior shareholders’ agreements existing among them. 
 CLAUSE 7. REPRESENTATIONS 
  

	7.1	Representations of Campofrío 

 Campofrío hereby
represents to GSH that, as of the date hereof and as of the closing date of the Merger: 
  

	7.1.1	Organization and Authority of Campofrío and the Campofrío Group 

 Campofrío is a sociedad anónima duly incorporated, validly existing and in good standing under the laws of Spain and has full corporate power and authority to enter into this Merger Protocol and
to perform its obligations hereunder. 
 Each of the entities in the Campofrío Group is a corporation, limited liability company or partnership duly
incorporated or organized, validly existing and in good standing under the laws of its state or country of incorporation or organization. Each of Campofrío and the entities in the Campofrío Group is duly qualified or registered as a
foreign corporation or other entity where required, and is in good standing, in each jurisdiction where the failure to do so would have a material adverse effect. 
  

	7.1.2	Authorization; Enforceability 

 The execution, delivery and
performance by Campofrío of this Merger Protocol, and all of the documents and instruments required hereby from Campofrío, are within the corporate power of Campofrío and have been duly authorized by all necessary corporate
action of Campofrío. This Merger Protocol is, and the other documents and instruments required hereby to which Campofrío is a party will be, when duly executed and delivered by the Parties hereto or thereto, the legal, valid and
binding obligation of Campofrío, enforceable against Campofrío in accordance with their respective terms. 
  

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	7.1.3	No Violation or Conflict 

 The execution, delivery and
performance of this Merger Protocol, and the other documents and instruments required hereby to which Campofrío is a party (except for the Financial Agreements as per and in the terms set forth in section 4.1.3 above), by Campofrío do
not and will not conflict with or violate any law, judgment, order or decree binding on Campofrío or the charter or by-laws of Campofrío. Except for compliance with applicable antitrust laws and securities laws, no notice to, filing or
registration with, or authorization, consent or approval of, any governmental, regulatory or self-regulatory agency is necessary or is required to be made or obtained by Campofrío in connection with the execution and delivery of this Merger
Protocol, and the other documents and instruments required hereby to which Campofrío is a party, by Campofrío or the consummation by Campofrío of the transactions contemplated hereby. 
  

	7.1.4	Capitalization of Campofrío and the Campofrío Group 

  

	(a)	The shares included in its share capital represent all of the issued and outstanding capital of Campofrío, have been duly and validly issued and are fully paid. There are no
options, warrants, calls, subscriptions, conversion or other rights, agreements or commitments obligating Campofrío to issue any additional shares of capital stock or any other securities convertible into, exchangeable for or evidencing the
right to subscribe for any shares of capital stock of Campofrío. 

  

	(b)	All of the outstanding shares of capital stock of the entities in the Campofrío Group are validly issued and fully paid. All of the outstanding shares of capital stock,
partnership, membership or equity interests in the entities in the Campofrío Group are owned by Campofrío, directly or indirectly through one or more intermediaries. 

  

	7.1.5	No knowledge 

 Campofrío is unaware of any event or
circumstance which would be considered a Material Adverse Change affecting Campofrío which has not been disclosed to GSH during the Confirmatory Due Diligence exercise. 
 There is no event or circumstance arising from the information delivered by GSH to Campofrío in the Confirmatory Due Diligence that in accordance with Campofrío’s knowledge would be considered a
Material Adverse Change affecting GSH. 
  

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	7.2	Representations of GSH and the GSH Shareholders 

 The GSH
Shareholders hereby represent to Campofrío that, as of the date hereof and as of the closing date of the Merger: 
  

	7.2.1	Organization and Authority of GSH and the GSH Group 

 GSH is
a sociedad limitada duly incorporated, validly existing and in good standing under the laws of Spain and has full corporate power and authority to enter into this Merger Protocol and to perform its obligations hereunder. 
 Each of the entities in the GSH Group is a corporation, limited liability company or partnership duly incorporated or organized, validly existing and in good standing
under the laws of its state or country of incorporation or organization. Each of GSH and the entities in the GSH Group is duly qualified or registered as a foreign corporation or other entity where required, and is in good standing, in each
jurisdiction where the failure to do so would have a material adverse effect. 
  

	7.2.2	Authorization; Enforceability 

 The execution, delivery and
performance by GSH of this Merger Protocol, and all of the documents and instruments required hereby from GSH, are within the corporate power of GSH and have been duly authorized by all necessary corporate action of GSH. This Merger Protocol is, and
the other documents and instruments required hereby to which GSH is a party will be, when duly executed and delivered by the Parties hereto or thereto, the legal, valid and binding obligation of GSH, enforceable against GSH in accordance with their
respective terms. 
  

	7.2.3	No Violation or Conflict 

 The execution, delivery and
performance of this Merger Protocol, and the other documents and instruments required hereby to which GSH is a party (except for the Financial Agreements as per and in the terms set forth in section 4.1.3 above), by GSH do not and will not conflict
with or violate any law, judgment, order or decree binding on GSH or the charter or by-laws of GSH. Except for compliance with applicable antitrust laws and securities laws, no notice to, filing or registration with, or authorization, consent or
approval of, any governmental, regulatory or self-regulatory agency is necessary or is required to be made or obtained by GSH in connection with the execution and delivery of this Merger Protocol, and the other documents and instruments required
hereby to which GSH is a party, by GSH or the consummation by GSH of the transactions contemplated hereby. 
  

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	7.2.4	Capitalization of GSH and the GSH Group 

  

	(a)	The quotas included in its share capital represent all of the issued and outstanding capital of GSH, have been duly and validly issued and are fully paid. There are no options,
warrants, calls, subscriptions, conversion or other rights, agreements or commitments obligating GSH to issue any additional quotas or any other securities convertible into, exchangeable for or evidencing the right to subscribe for any quotas of
GSH, except for the Earn-Out Agreement signed by GSH and GSH Shareholders dated August 7, 2006, which shall be terminated prior to the holding of GSH general shareholders meeting approving the Merger. 

  

	(b)	All of the outstanding shares of capital stock of the entities in the GSH Group are validly issued and fully paid. All of the outstanding shares of capital stock, partnership,
membership or equity interests in the entities in the GSH Group are owned by GSH, directly or indirectly through one or more intermediaries. 

  

	7.2.5	No knowledge 

 GSH is unaware of any event or circumstance
which would be considered a Material Adverse Change affecting GSH which has not been disclosed to Campofrío during the Confirmatory Due Diligence exercise. 
 There is no event or circumstance arising from the information delivered by Campofrío to GSH in the Confirmatory Due Diligence that in accordance with GSH knowledge would be considered a Material Adverse Change affecting
Campofrío. 
  

	7.2.6	Tax matters 

 (a) The GSH Shareholders undertake to take all
necessary measures in order GSH to elect for the application of the ETVE regime under Spanish corporate tax law within the current tax year. 
 (b) The GSH
Shareholders represent and warrant that GSH, including all subsidiaries, will make their best efforts to comply, at the time of doing the election and at the time of the Merger, with the requirements set forth to qualify for the ETVE regime under
Spanish law, including the requirements established in article 21 LIS. 
 (c) The GSH Shareholders represent and warrant that, as far as GSH is concerned,
the special tax regime provided for mergers and other business restructuring transactions in Chapter VIII, Section VII of the Spanish Corporation Tax Act will be fully applicable to the Merger and, accordingly, that it will not be denied founded on
an act or transaction that has brought a benefit only for GSH or the GSH Shareholders (such act or transaction, the “Responsible Act”). 
 (d) The GSH Shareholders will hold Campofrio harmless and indemnify Campofrio of any damages suffered arising out of any breach or misrepresentation in relation to any of the above undertakings, representations or warranties. Additionally,
the GSH Shareholders will pay any financial and legal cost due from the obligation to place bonds or guarantees in any proceedings arising out the defense there from, as soon as such bonds and guarantees have to be granted. 
  

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 CLAUSE 8. ANNOUNCEMENTS AND DISCLOSURES. CONFIDENTIALITY 
 Immediately upon execution of this Merger Protocol, the Merging Companies shall issue a relevant fact and a press release in the form and substance agreed between the
Merging Companies. No other announcement or disclosure concerning the Merger shall be made by any Party to this Merger Protocol without the prior written consent of the other Parties. 
 The restrictions in the preceding paragraph shall not apply to information disclosed as a result of any obligation under applicable law or any court order or the rules of any government body or regulatory
organization, such as but not limited to, stock market authorities. Where such disclosure is required, the Party or Shareholder to which such obligation applies shall immediately inform the other Parties and the other Shareholders thereof prior to
such disclosure being made. 
 Each of the Parties shall keep confidential all information and documents they have received from the other Parties in
connection with the negotiation and execution of this Merger Protocol. To this extent, the Confidentiality Agreement entered into by the Merging Companies on 18 February 2008 shall survive notwithstanding the execution of this Merger Protocol
and the Parties to this Merger Protocol expressly adhere to the same. 
 CLAUSE 9. FURTHER ASSURANCES 
  

	9.1.	The Merging Companies and the Shareholders shall, so far as reasonably able, do or procure all things as may be required to give effect to this Merger Protocol and the Merger
including, without limitation, the execution of all deeds and documents, procuring the convening of all meetings, the giving of all necessary waivers and consents and the passing of all resolutions and otherwise exercising all powers and rights
available to them. 

  

	9.2.	The Parties will expressly opt to apply to the Merger the special tax regime provided for mergers and other business restructuring transactions in Chapter VIII, Section VII
of the Spanish Corporation Tax Act, which implements the rules laid down in the Council Directive 90/434/EEC (Merger Directive). The parties intend that the Merger constitute a reorganization under section 368 of the U.S. Internal Revenue Code and
that this Agreement constitute a plan of reorganization for such purposes. 

  

	9.3.	The Merging Companies and the Shareholders will jointly cooperate so far as matters are within their respective control to ensure the continuity and a smooth transition of
the business of GSH into Campofrío. 

  

	9.4.	The Merging Companies will inform each other as soon as any event constituting a Material Adverse Change with respect to its activity should occur. 

 

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 CLAUSE 10. EXPENSES AND FEES 
 Each Party and Shareholder shall be responsible for its own costs and expenses incurred in connection with the preparation, negotiation and execution of the Merger Protocol. 
 CLAUSE 11. TERMINATION OF THE MOU 
 Upon execution of this Merger
Protocol the memorandum of understanding in relation to the Merger shall be terminated. 
 CLAUSE 12. GENERAL 
  

	12.1	None of the Parties to this Merger Protocol may assign its rights or obligations under this Merger Protocol without the prior written consent of the other Parties.

  

	12.2	This Merger Protocol shall be binding upon each Party’s successors and permitted assigns. 

  

	12.3	This Merger Protocol has been drafted and signed in both Spanish and English language (except that the Annexes may be in Spanish or English only). In case of discrepancies
between the English version and the Spanish version the Spanish version shall prevail. 

  

	12.4	If any provision of this Merger Protocol is held to be illegal, invalid or unenforceable in whole or in part the legality, validity and enforceability of the remaining
provisions of this Merger Protocol shall not in any way be affected or impaired thereby, and the signors shall negotiate in good faith to replace the offending provision by another enforceable, valid and legal provision that has the same or a
similar as possible effect on the transaction hereby contemplated as the original provision. 

  

	12.5	The rights of each signor under this Merger Protocol: 

  

	 	(a)	May be exercised as often as necessary; 

  

	 	(b)	Are cumulative and not exclusive of rights and remedies provided by law; and 

  

	 	(c)	May be waived only in writing and specifically. 

  

	 	(d)	Delay in exercising or non-exercise of any such right is not a waiver of that right. 

 CLAUSE 13. NOTICES 
  

	13.1	Any notice or other formal communication given under this Merger Protocol must be in writing (which does not include e-mail) and may be delivered, faxed or sent by overnight
courier to the party to be served at its fax number or address appearing in this clause or at such other fax number or address as it may have notified to the other party in accordance with this Clause. 

  

 23 

 Confidential 
 Execution copy 
 30 June 2008 
  

	13.2	Any notice or other formal communication shall be deemed to have been given: 

  

	(a)	if delivered, on the day of delivery; or 

  

	(b)	if faxed before 17.00 in the place of receipt, on the day faxed or, otherwise, on the day after it was faxed; or 

  

	(c)	if sent by overnight courier, at 10.00 a.m. on the day after it was sent, 

 provided that if such day is not a business day, such notice shall be deemed to have been given on the next business day. 
  

	13.3	Any notice to the Parties shall be sent to the following addresses: 

 any notice sent to Campofrío shall be sent to: 
 Address: 
 Avenida de Europa 24, Parque Empresarial La Moraleja 
 28109, Alcobendas (Madrid) 
 Spain 
 Fax number: +34 91 661 53 45 
 For the attention of: Pedro Ballvé Lantero 
 any notice sent to GSH, its shareholders, Smithfield Foods Inc. and/or OCM European Principal Opportunities Fund L.P. shall be sent to: 
 Address: 
 499 Park Avenue 
 6th Floor, New York, NY 10022 
 U.S.A. 
 Fax number: +1 (212) 758 8421 
 For the attention of: Richard Jasper Poulson 
 and 
 Address: 
 27 Knightsbridge 
 London SW1X 7LY 

United Kingdom 
 Fax number: +44 207 201
4603 
 For the attention of: Karim Michael Khairallah 
 any notice sent to Carbal S.A., Bitonce S.L., and/or Betónica 95 S.L. shall be sent to: 
 Address:

 Avenida de Europa 24, Parque Empresarial La Moraleja 
 28109, Alcobendas (Madrid) 
 Spain 
 Fax number: +34 91 661 03 17 
 For the
attention of: Pedro Ballvé Lantero 
  

 24 

 Confidential 
 Execution copy 
 30 June 2008 
  

 any notice sent to Cartera Nuvalia S.L. and/or Alina Corporate S.L.: 
 Address: 
 Avenida de Europa 24, Parque
Empresarial La Moraleja 
 28109, Alcobendas (Madrid) 
 Spain 
 Fax number: +34 91 125 04 50 
 For the attention of: Luis Serrano Martín 
 CLAUSE
14. GOVERNING LAW, JURISDICTION 
  

	14.1	Governing law 

 This Merger Protocol shall be governed by and shall
be construed in accordance with and the Parties submit to Spanish law in relation to it. 
  

	14.2	Jurisdiction 

 All claims, disputes and other matters arising out of
or relating to this Merger Protocol which, in the opinion of one of the Parties, the Parties are unable to resolve by mutual agreement, shall exclusively and finally be settled by the Courts of Madrid. 
 CLAUSE 15. COUNTERPARTS 
 This Merger Protocol may be entered into in
any number of counterparts, all of which take together shall constitute one and the same instrument. SF executes this Merger Protocol on behalf of SFDS Global Holdings B.V, without prejudice to SFDS Global Holdings B.V execution of this document as
soon as possible, and in any event within 30 days. 
 AS WITNESS whereof this Merger Protocol has been entered into the day and year first above
written and is executed in 12 originals, one of each signor. 
  

 25 

 Confidential 
 Execution copy 
 30 June 2008 
  

  

					
	 /s/ Pedro Ballvé Lantero
	 		 	
	Campofrío Alimentación, S.A.	 		 	
	Pedro Ballvé Lantero	 		 	
			
	 /s/ Pedro Ballvé Lantero
	 		 	
	Carbal S.A.	 		 	
	Pedro Ballvé Lantero	 		 	
			
	 /s/ Pedro Ballvé Lantero
	 		 	
	Bitonce, S.L.	 		 	
	Pedro Ballvé Lantero	 		 	
			
	 /s/ Pedro Ballvé Lantero
	 		 	
	Betónica 95, S.L.	 		 	
	Pedro Ballvé Lantero	 		 	
			
	 /s/ Luis Serrano Martin
	 		 	
	Cartera Nuvalia, S.L.	 		 	
	Luis Serrano Martin	 		 	
			
	 /s/ Luis Serrano Martin
	 		 	
	Alina Corporate, S.L.	 		 	
	Luis Serrano Martin	 		 	
			
	 /s/ Richard J.M. Poulson
	 		 	
	Groupe Smithfield Holdings, S.L.	 		 	
	Richard Jasper Poulson	 		 	
			
	 /s/ Richard J.M. Poulson
	 		 	
	Smithfield Foods, Inc.	 		 	
	Richard Jasper Poulson	 		 	
			
	 /s/ Richard J.M. Poulson
	 		 	
	SFDS Global Holdings B.V.	 		 	
	Richard Jasper Poulson	 		 	
			
	 /s/ Szymon Dec
	 		 	 /s/ Justin Bickle

	OCM Luxembourg EPOF Meat Holdings SARL	 		 	
	Justin Bickle	 		 	
	Szymon Dec	 		 	
			
	 /s/ Szymon Dec
	 		 	 /s/ Christophet Bochringer

	OCM Luxembourg OPPS Meat Holdings SARL	 		 	
	Christophet Bochringer	 		 	
	Szymon Dec	 		 	
			
	 /s/ Emily Alexander
	 		 	 /s/ Caleb Kramer

	OCM European Principal Opportunities Fund, L.P. by OCM European Principal Opportunities Fund GP, L.P., its general partner, by OCM European Principal Opportunities Fund GP Ltd.,
its general partner, by Oaktree Capital Management, L.P., its director
	Emily Alexander	 		 	
	Caleb Kramer	 		 	

  

 26 

 Annex 2.1 
 CAMPOFRÍO ALIMENTACIÓN, S.A. 
 COMPANY BY-LAWS 
 TITLE I 
 NAME, CORPORATE
PURPOSE, REGISTERED OFFICE AND TERM 
 ARTICLE ONE 
  

			
	Name	  	The Company’s name is CAMPOFRÍO ALIMENTACIÓN, S.A. It is a Spanish company and shall be governed by these by-laws, and with respect to all matters not covered herein, by
the applicable statutory provisions.

 ARTICLE TWO 
  

			
	The Company’s Corporate Purpose	  	1.- The preparation and marketing of products for human and animal consumption. For this purpose, the Company shall be engaged in the business of rearing and slaughter of animals for meat
products and the processing of raw materials: meats, fish, dairy products, vegetables, cereals and other products, as necessary.
	  	  
 2.- The provision of advisory services, technical services, and management
and training, related to the production and marketing of food products.

	  	  
 Any activities falling within the Company’s corporate purpose may be
undertaken by the Company, either directly or indirectly, through its own businesses or by means of holdings in companies having identical or similar corporate purposes.

 ARTICLE THREE 
  

			
	Registered Office	  	The Company’s registered office is at Avda. de Europa, no. 24 “Parque Empresarial La Moraleja”, Alcobendas, Madrid, which is where its legal representative office shall be based.

		
	Change of Address	  	The Board of Directors may resolve to relocate the Company’s registered office to another address within the same municipality without the need for a Shareholders’ Resolution, and may
resolve to create, close or change the address, as applicable, of branches, agencies and representative offices, both in Spain and abroad, when this is deemed to be in the Company’s interest.

 ARTICLE FOUR 
  

			
	Term	  	The Company is incorporated for an indefinite period of time, such period commencing on date of execution of its deed of incorporation.

 TITLE II. 
 SHARE CAPITAL AND SHARES 
 ARTICLE FIVE 
  

			
		  	The Company’s share capital is FIFTY-TWO MILLION SIX HUNDRED AND FORTY-THREE THOUSAND SEVEN HUNDRED AND TWENTY-FOUR EUROS (52,643,724 euros), represented by 52,643,724 shares, with a par
value of one euro each one, in a single series, fully subscribed and paid up. The shares are all of the same kind and class and have the same rights and obligations as represented by the book entries.
		
		  	[N.B: The amount of share capital will be amended as a result of the merger].

 ARTICLE SIX 
  

			
	Co-ownership	  	The shares are indivisible. Co-owners of one or more shares shall appoint one person to exercise the shareholders’ rights and shall be liable to the Company jointly and severally for any
obligations that may arise from their shareholder status.

 ARTICLE SEVEN 
  

			
	Shareholders’ rights	  	 Each share confers on its legal owner the status of shareholder and vests on them the rights recognized by these by-laws and by the
law.
  
 Shareholders shall have at least the following rights:
  
 a) The right to participate in the distribution of the company’s profits and in the net assets
existing upon liquidation;
  
 b) The right to preemptive subscription in the issue of new
shares or bonds convertible into shares;
  
 c) The right to attend and vote at general
meetings, and the right to challenge company resolutions; and
  
 d) The right to
information.

		
	Usufruct	  	In the event of usufruct of shares, the status of shareholder shall lie with the legal owner thereof, who shall exercise the rights of a shareholder on an exclusive basis, with the sole
exception of the right to participate in the profits obtained during the period of usufruct, in the terms legally established.
		
	Pledge	  	In the event of a pledge of shares, shareholder status shall lie with the legal owner thereof, who shall exercise the rights arising from such status on an exclusive basis, in the terms
legally established.

  

 28 

 ARTICLE EIGHT 
  

			
	Capital Increases	  	The share capital may be increased or decreased by resolution of the General Shareholders Meeting called for such purpose, and subject to the provisions of the Public Companies Act (Ley de
Sociedades Anónimas).
		
	Vesting of powers on the Board	  	In the event of a share capital increase, the General Meeting may vest on the Board the powers set out in the Public Companies Act.

 ARTICLE NINE 
  

			
	Subscription Rights	  	In capital increases involving the issue of new shares, either ordinary or preferred, as well as in the issue of convertible bonds, existing shareholders and holders of convertible bonds may
request, within the time granted for such purpose by the Board of Directors of the Company, and in accordance with the Public Companies Act, the right to subscribe shares or convertible bonds in the new issue proportionate to the number of nominal
shares that they own or that would belong to holders of convertible bonds if they were to exercise their right to conversion.
		
	 Withdrawal of
 Preemptive
Rights
	  	When so dictated by the Company’s interests, and provided that the provisions of the Public Companies Act are respected, when deciding upon the capital increase, the General Meeting may
resolve to totally or partially withdraw the right to preemptive subscription.
		
	Non-voting Shares	  	In share capital increases, the Company may resolve to issue non-voting shares, subject to the rules and restrictions set forth in the Public Companies Act.

 ARTICLE TEN 
  

			
	Issue of other Securities	  	By resolution of the General Meeting, adopted in accordance with these by-laws and the provisions of the applicable laws, the Company may issue any other kind of securities acknowledging or
creating a debt, such as bonds, debentures or other similar securities.

  

 29 

 TITLE III. 
 COMPANY MANAGEMENT AND GOVERNANCE. 
 SECTION ONE. GENERAL SHAREHOLDERS MEETINGS 

 ARTICLE ELEVEN 
  

			
	Powers of the General Meeting	  	The General Shareholders Meeting is responsible for the management and corporate governance of the Company. All shareholders, including dissenting shareholders and those not in attendance,
are bound by the resolutions adopted by the General Shareholders Meeting within the scope of its remit, notwithstanding their right to challenge such resolutions are permitted by law.
		
	 Right to challenge
 Procedure
	  	The General Shareholders Meeting shall set forth the rules governing its own internal procedures in a Regulation, which shall be submitted for its approval and must respect all the provisions
of the applicable laws and these by-laws.

 ARTICLE TWELVE 
  

			
	General Meetings	  	General Shareholders Meetings may be Ordinary or Extraordinary.
		
	Ordinary General Meetings	  	 The Ordinary General Meeting shall meet within the first six months of each corporate year, and its principal purpose shall be to review the
company’s management; to approve, where applicable, the accounts for the preceding financial year and the management report; and to decide on the allocation of results.
  
 Notwithstanding the above, and in accordance with the provisions of the Public Companies Act, the
Ordinary General Meeting shall be deemed to be valid even though it has been called or held outside the time limit.

		
	Extraordinary General Meetings	  	All other General Meetings shall be extraordinary and shall be held when called by the Board of Directors, when they believe it to be in the interest of the Company, or when a written request
is made by a number of members holding at least five per cent of the share capital. Such request must set out the resolutions to be discussed at the Meeting, in the manner established in the Public Companies Act.

 ARTICLE THIRTEEN 
  

			
	Notice	  	General Meetings shall be called by the Board of Directors in accordance with the Public Companies Act.
		
	Right to Information	  	In addition to the legal requirements, and when so required by the Public Companies Act, the notice of meeting shall also indicate the right of shareholders to examine at the registered
office, and where applicable, to immediately obtain free of charge, the documents to be submitted for approval by the General Meeting and the expert reports stipulated in the aforementioned Act. When a legal provision lays down other requirements
for general meetings discussing specific matters, this article shall not apply, and the specific provisions in each case shall be observed.

  

 30 

			
	Additional Notice of Meeting	  	The shareholders representing the minimum percentage of share capital established for this purpose in the Public Companies Act may request that an additional Notice of Meeting be published,
including one or more items on the Agenda, in which case, the provisions of the Public Companies Act shall be observed. In the event of exercise of such right by shareholders with a holding below the legally established minimum, the Board of
Directors may freely decide whether or not to grant such request.

 ARTICLE FOURTEEN 
  

			
	Right of Attendance. Minimum Shareholding Requirement. Pooling	  	Those shareholders recorded as such in the account entries of the company’s books may attend the General Meeting, providing notice of their attendance five days before the date when the
General Meeting is to be held. Shareholders may attend the General meetings themselves or by means of proxy, provided that they have a minimum of 10 shares, either own shares, represented shares or both own and represented shares, and may in any
event, pool their shares to attain the minimum number required to be able to attend the General Meeting.
		
	Attendance by the Board and Managers	  	Directors shall attend General Meetings. The meetings may also be attended by managers, technical staff and other persons related to the Company whose attendance is deemed to be appropriate
by the Board in view of the items included on the Agenda.
		
	Proxy	  	 Any shareholder entitled to attend may appoint another person as proxy to represent them at the General Meeting, even if such person is not a
shareholder in the manner and subject to the requirements referred to above and under the legal provisions applicable from time to time.
  
 The proxy shall be specific for each meeting and must be granted in writing or by means of remote communication, provided that these means sufficiently guarantee the
identity of the represented shareholder and fulfil the requirements established or to be established for remote means of voting, in accordance with these By-laws.

		
	Proxy Solicitation	  	In the event of proxy solicitation, the provisions of the Public Companies Act, and where applicable, those governing listed companies in the Securities Markets Act shall
apply.
		
		  	Unless express instructions are given otherwise by the shareholder, in the event that the proxy holder is affected by a conflict of interest, it shall be assumed that the shareholder has also
appointed as proxy holders, jointly and severally and successively, the Chairman of the General Shareholders Meeting, and if he/she is affected by a conflict of interest, the Secretary of the General Shareholder Meeting, and if the later is affected
by a conflict of interest, the Chairman of the Audit committee. When the proxy is delivered to the company without express identification of the proxy holder, it shall be assumed that the shareholder has appointed as proxy holders the persons
holding the aforementioned offices, and the rule set forth in the foregoing paragraph shall apply.
		
		  	The proxy may also include any other items that are not included on the Agenda, but which may be discussed at the meeting, when permitted by the law. In this case, the indications made in the
foregoing

  

 31 

			
		  	paragraphs shall also apply. In the event that the proxy does not include voting instructions as to the proposals on the Agenda, unless otherwise indicated in the proxy, it shall be understood
that the proxy holder shall vote in favour of the proposals submitted by the Board of Directors.
		
		  	Conversely, when items are to be discussed at the meeting that are not included on the Agenda, in the event that the proxy does not include voting instructions in this respect, unless otherwise
indicated in the proxy, it shall be understood that the proxy holder shall vote against those proposals.

 ARTICLE FIFTEEN 
  

			
	Ordinary Quorum	  	It shall be deemed that the General Meeting at first call has sufficient quorum when the shareholders present or represented hold at least twenty-five per cent of the subscribed voting
capital. At second call, the General Meeting shall be deemed to have sufficient quorum irrespective of the voting capital present or represented.
		
	Enhanced Quorum	  	For the General Meeting to validly approve the issue of debentures, capital increases or decreases, the conversion, merger or spin-off of the Company, and in general, any amendment to these
by-laws, it shall be necessary, at first call, for shareholders holding at least sixty-five per cent of the subscribed voting capital to be in attendance, either directly or by proxy. At second call, attendance by fifty per cent of
such capital shall be sufficient.
		
		  	Both for the first as well as the second meeting, the resolutions referred to in the previous paragraph shall require the favourable vote of the majority of capital with voting rights by
those present or represented at the Meeting., providing this majority represents at least 45% of the subscribed capital with voting rights.

 ARTICLE SIXTEEN 
  

			
	Universal	  	Notwithstanding the provisions set forth in the foregoing articles, the General Meeting shall be deemed to have sufficient quorum to address any matter, provided that all of the share capital
is present or represented and those attending unanimously agree to the holding of the Meeting.

 ARTICLE SEVENTEEN 
  

			
	General Meeting, Chairman and Secretary	  	General Meetings shall be held in the city where the Company has its registered office. The Chairman and Secretary of the Board of Directors shall act in such capacity in the General Meeting.
In the absence of either of them, the shareholder elected in each case by the members attending the General Meeting shall act as Chairman or Secretary.
		
		  	Solely those items included in the notice of meeting may be discussed and voted on.
		
	Attendance List	  	Before discussing the items on the Agenda, a list of attendees shall be drawn up, stating the status or representative capacity of each attendee and the number of shares that they own or
represent.

  

 32 

			
		  	At the end of the list, the number of shareholders present or represented shall be stated, as well as the amount of capital they hold, specifying voting capital. The attendance list may also
be draw up in a file or recorded in electronic format.
		
	Chairman’s Duties	  	It shall be the duty of the Chairman of the General Meeting to lead discussions; to give the floor and to decide on the length of time for successive contributions; to decide when a matter
has been sufficiently discussed; and to choose the procedure for voting, settling any disputes that may arise.
		
		  	With respect to all other matters, the provisions of the Public Companies Act shall apply.

 ARTICLE SEVENTEEN BIS 
  

			
	Remote exercise of voting rights	  	Those shareholders entitled to attend and vote at the General Meeting may cast their vote with respect to he proposals included on the Agenda by mail or through electronic means, in
accordance with the provisions of the Shareholders Meeting Regulation and any other rules established by the Board of Directors complementing and implementing the contents of the Shareholders Meeting Regulation.
		
		  	Depending on the technical and legal means allowing for and guaranteeing the identity of the shareholder exercising their voting right, the Board of Directors shall be authorized at any time
to implement further and complement the provisions set forth in the General Shareholders Meeting Regulation. On the basis of the technology and security offered by the available technical system, and the rules that, where applicable, implement this
system, the Board of Directors shall also be entitled to establish the time from which shareholders may exercise their right to cast their vote or grant their proxies by remote mechanisms, and the terms and conditions thereof.
		
		  	The regulation, as well as any amendment thereof, which may be issued by the Board of Directors to implement and to complement the General Shareholders Meeting Regulation in accordance with
this article, and the fixing by the Board of Directors of the time from which the shareholders may the exercise their right to vote by remote means shall be published on the Company’s website.
		
		  	All shareholders entitled to attend the meeting and casting their votes by remote means under the foregoing paragraph shall be deemed to be present for the purposes of the quorum of the
General Shareholders Meeting.
		
		  	The personal attendance of the shareholder shall automatically revoke the remote proxy.

 ARTICLE EIGHTEEN 
  

			
	Minutes and Approval	  	Minutes of the General Meetings shall be drawn up, which may take any of the forms established in the Public Companies Act. The Minutes shall be approved, when no special quorum is required,
by means of the favourable vote of a simple majority of the shares present at the Meeting, which shall take place immediately after it has concluded, and failing this, within a period of fifteen days, by the Chairman and two Scrutineers, one on
behalf of the majority and another on behalf of the minority.

  

 33 

			
	Notarized Minutes	  	When notarized minutes of the General Meeting are required, the preparation, content and completion of such minutes shall comply with the applicable laws. The notarized minutes shall be
regarded as the minutes of the General Meeting.
		
	Certificate of Resolutions	  	The certificate of the resolutions of the General Meeting shall be drawn up in accordance with the provisions of the Public Companies Act and the Commercial Registry Regulation applicable
from time to time.

 SECTION TWO 
 BOARD OF DIRECTORS 
 ARTICLE NINETEEN 
  

			
	Function of the Board	  	The Board of Directors shall also be responsible for the management, representation and administration of the Company, having the broadest powers for such purpose. Its representative powers
extend to all those acts deemed necessary for the enforcement of its corporate purpose established herein.
		
	Composition of the Board	  	The Board of Directors shall have a minimum number of three members and a maximum number of ten, which shall include one Chairman and one or more Vice-chairmen to act in lieu of the Chairman
in the event of his/her absence. The order of preference for substitution shall follow the same order as the appointment of such members to the Board. The Board itself shall also elect a Secretary, and optionally, a Vice-secretary to substitute the
Secretary in the event of his/her absence. The Secretary and Vice-secretary may or may not be directors. In the latter case they shall have a voice at the meetings but no vote.
		
	Compatibility and Term of Office	  	 It is not necessary to be a shareholder to become a member of the Board of Directors, and the capacity of Director is compatible with any other
office within the Company.
  
 Directors shall be appointed and removed by the General
Shareholders Meeting upon proposal by the Board of Directors.
  
 Directors shall be
appointed for a period of five years, and may be reelected one or more times for the same period of time.

		
	Re-election	  	Proposals to appoint, reelect or dismiss Directors submitted to the General Shareholders Meeting by the Board of Directors shall be made in turn upon proposal by the Appointments and
Remunerations Committee in the case of independent Directors, based on the list prepared by specialised consultants if is required by any of the Directors, and following a report by such Committee in the case of all other
Directors.
		
	Post-termination restrictions	  	Directors terminating their term of office, or who for any other reason cease to perform the duties of their office, may not render services to any company with a similar corporate purpose to
that of the Company for a term of two years, unless such companies are affiliated to the Group or the Board of Directors releases them from this obligation or reduces the period during which such services may not be rendered.

  

 34 

			
	Co-opting	  	Any vacant positions that may arise on the Board shall be covered provisionally by the Board of Directors, upon proposal by the Appointment and Remunerations Committee, by means of the
designation, among the shareholders, of those persons that shall temporarily hold the position of Director until a final resolution is adopted by the next General Meeting.
		
	Regulation	  	The Board of Directors shall set forth the rules governing its own internal procedures in a Regulation and shall accept the resignation of its Directors in accordance with the provisions of
the Public Companies Act.

 ARTICLE NINETEEN BIS 
  

			
	Termination of Directors	  	 1. Directors shall cease to hold office at the end of the term for which they were appointed if they have not been re-elected at the first General
Shareholders Meeting, or upon expiry of the statutory period for the holding of the Ordinary General Meeting, provided that this is established in the applicable legislation.
  
 2. Also:
  
 a) When they cease to hold the executive positions to which their appointment as Director was related.
  
 b) Where they are affected by any incompatibility or prohibition established by law.
  
 c) Where their continued presence on the Board may be detrimental to the Company’s interests or
when the reasons for which they were appointed no longer apply.

 ARTICLE TWENTY 
  

			
	Meetings	  	1. The Board of Directors shall meet whenever the interests of the Company so advise and at least three times a year, and at the initiative of the Chairman, as many times as he/she deems
appropriate for the proper running of the Company or when so requested by any of the Committees, if appointed, or by a majority of the Directors.
		
		  	Likewise, when the person holding office as Chairman has the capacity of executive director/senior executive of the Company, the Board may authorize one of its independent directors on a
permanent basis to request that the Chairman call a meeting of the Board or include new items on the Agenda.
		
		  	2. Notice of ordinary meetings shall be sent by letter, fax, telegram or electronic mail and shall be signed by the Chairman or the Secretary under the instructions of the Chairman in witness
of their approval. Notice shall be sent at least seven days in advance.
		
		  	Notice of the meeting shall always include the Agenda for the meeting and shall be accompanied by the relevant information duly summarized and prepared.

  

 35 

			
		  	3. Extraordinary meetings of the Board may be called by telephone, and the notice period and other requirements set out in the foregoing section shall not apply when, in the Chairman’s
opinion, the circumstances so dictate.
		
		  	4. The Board shall draw up an annual schedule of ordinary meetings, and where possible, shall have a formal list of matters to be addressed. In accordance with the provisions of the Regulation
of the Board, the Board shall set aside at least one meeting a year to assess its procedure and the quality of its work.

 ARTICLE TWENTY-ONE 
  

			
	Quorum for the Board	  	The meetings of the Board of Directors shall be deemed to have sufficient quorum when half plus one of its members are present or represented. Directors may delegate their vote to other
Directors, provided that this is done in writing and is specifically for each meeting.
		
	Approval of Resolutions	  	The resolutions of the Board of Directors shall be adopted by an absolute majority of those present, unless stipulated otherwise by the law or statutory.
		
		  	In any case, the favourable vote of two thirds of members of the Board of Directors shall be required to enable the Board (i) to validly adopt the resolutions concerning items that are
reserved for the Board in accordance with Article 24 of these By-laws (with the exception of the appointment and dismissal of senior executives, according to article 24 d), which shall only require an absolute majority) (ii) to designate one or more
Managing Directors and (ii) to modify its Organisation Regulations.

 ARTICLE TWENTY-TWO 
  

			
	Minutes of the Board	  	The discussions and resolutions of the Board of Directors shall be recorded in a Minutes Book, and they shall be signed by the Chairman and Secretary.
		
	Certified Resolutions	  	In order to leave on record the resolutions of the Board of Directors, certificates shall be issued signed by the Secretary, with the approval of the Chairman or whoever he/she may legally
designate.

 ARTICLE TWENTY-THREE 
  

			
	Powers of the Board	  	The powers of the Board of Directors shall include without limitation the following:
		
	Management	  	a) Direct and manage the business of the Company; deal with the day-to- day management of the Company, for which it shall establish rules for the governance, management and internal
operations of the Company; and organize and supervise the technical and administrative services thereof.
		
	Representation	  	b) Represent the Company in the broadest sense before the Spanish government or foreign governments, supranational bodies, regional authorities, provinces, municipal authorities, public or
private bodies, and

  

 36 

			
		  	vis-à-vis any individual or company; act on behalf of the Company and follow up any kind of matters, proceedings, appeals and arbitrations, in all their steps and stages, with the
authority to withdraw from or settle such proceedings; and appoint third parties for these or other purposes, so that they may exercise the powers vested on them as representatives, either as court attorneys (procuradores), lawyers or other persons.

		
	Disposition	  	c) Buy, sell, rent and encumber personal and real property, rights and securities; create and cancel any kind of in rem rights over such property; assign such rights and acquire them under
any kind of contract or agreement; demarcate boundaries and execute deeds for new constructions; settle and waive any kind of entitlements; execute debt reductions and granting grace periods; enter into any kind of agreements and sign invoices,
drafts, bills of lading, delivery note receipts and any commercial and civil documents as may be necessary; and as well as engage, appoint and dismiss employees and fix their remuneration.
		
	Collections and Payment	  	d) Make collections and payments and sign receipts and other documents of release; and receive and collect any sums payable to the Company from the State through any tax office or Chamber of
Commerce and Industry, or state or quasi-state undertaking or body.
		
	Guarantees	  	 e) Enter into any agreement or contract for the granting of guarantees, security deposits and other real or personal security with respect to
transactions to which the Company is party, in particular vis-à-vis the customs authorities and consignees.
  
 Take goods from the State, regional government, provincial and municipal authorities, companies and private individuals, on account of auctions and tender bids, and before the Courts, with respect to any
matter.

		
	Powers of attorney	  	f) Grant and revoke powers of attorney to any person.
		
	Deposits	  	g) Create and withdraw cash deposits, marketable securities, goods, machinery and any kind of personal property, including deposits with the Bank of Spain and Caja General de
Depósitos.
		
	Banks	  	h) Open, maintain and close current, ordinary, savings or credit accounts at any banks, savings banks or credit institutions, including the Bank of Spain.
		
	Loans	  	i) Enter into any agreement for credit facilities or loans for the Company, with or without personal security, the pledging of securities and goods or mortgage security, subject to those
terms and conditions deemed appropriate by it; draw on such credit facilities or loans; and execute and sign any necessary deeds, certificates, letters and other documents.
		
	Trade	  	j) Issue, accept, sign, negotiate, discount, make direct debit arrangements, pay and protest bills of exchange and other commercial papers; and draw on current, ordinary, savings or credit
accounts of the Company by signing vouchers, cheques, payment orders and transfer orders, receipts and other documents.
		
	Surety	  	k) Act as guarantor for third parties or companies in matters that may affect the running of the Company’s business.

  

 37 

			
	Preparation of Accounts	  	l) Prepare within the first three months of each year the annual accounts for the preceding financial year, together with a management report and proposal for the distribution of profits,
where applicable, which shall be submitted to the General Meeting of Shareholders.
		
	Capital Increases	  	m) Conduct any capital increases authorized by the General Shareholders Meeting in accordance with the Public Companies Act.
		
	Calling of Genera Meetings	  	n) Call General Meetings; draw up the agenda; and prepare the deliberations of the meeting; and draw up and enforce its resolutions

 ARTICLE TWENTY-FOUR 
  

			
	Items reserved for the plenary Board of Directors	  	The Board’s policy shall be to delegate ordinary management of the company to the executive bodies and to the management team and the exercise of the general supervisory function,
although no powers that are legally or institutionally reserved for the direct knowledge of the Board can be delegated, or those others that are necessary for a responsible exercise of the general supervisory function.
		
		  	In accordance with the foregoing, and unless required for reasons of urgency, the plenary Board must be made aware of and take decisions on the following issues:
		
		  	 a)      Decisions that require a structural modification of the company, including any proposal for
modification of the By-laws.

		
		  	 b)      Transferring essential activities which had hitherto been carried out by the Company to subsidiary
or dependent companies.

		
		  	 c)      The definition and approval of the company’s general policies and strategies regarding
specifically the following points: (i) strategic business plan, management targets and annual budgets; (ii) investment and funding policy; (iii) definition of the structure of the group of companies; (iv) policy for corporate governance and
corporate social responsibility; (v) remuneration policy and assessment of senior executives; (vi) risk control and management policy; (vii) dividends and treasury stock policy.

		
		  	 d)      The appointment and possible dismissal of senior executives when proposed, and admissible, by the
chief executive of the company, as well as their compensation clauses.

		
		  	 e)      Approval of directors’ remuneration, in accordance with the provisions set forth in article
25 of the By-laws, as well as, in the case of executives, the additional payments for their executive duties.

		
		  	 f)      The financial information that the company must periodically make public due to its status as a
listed company, unless this has been previously notified by the Audit Committee.

  

 38 

			
		  	 g)      Investments, purchases or sales of assets or operations which are of a strategic nature given the
amount involved or the special characteristics.

		
		  	 h)      The creation or acquisition, if appropriate, of stakes in companies with a special purpose or with
registered offices in tax havens, as well as any other transactions or deals of a similar nature which could affect the group transparency because of their complexity.

		
		  	 g)      i) To approve the transactions that the company carries out with directors, with major
shareholders or shareholders represented on the Board, or with related parties, unless these operations satisfy the following conditions: (i) are carried out by virtue of standardised contracts and which apply en masse to many clients, (ii) that are
carried out at prices generally established by the party acting as supplier and, (iii) that their amounts do not exceed 1% of the company’s annual revenue. The foregoing is hereby understood without prejudice to the terms of reference belonging
to the Audit Committee and of the duties in issues of conflicts of interest of the directors set forth in the Public Companies Act.

		
		  	 If appropriate, the Board shall approve related operations following a favourable report from the Audit Committee, in accordance with the provisions set
forth in these By-laws.

		
		  	Any decisions regarding the issues mentioned which, for reasons of urgency in accordance with the provisions set forth in this article have to be adopted directly by delegated bodies or by
the management team shall be subject to communication and reporting at the Board’s next meeting, and shall be expressly submitted for ratification by the Board if it is compulsory.
		
	Managing Director	  	The Board may appoint by means of a two-thirds majority one or more Managing Directors from among its members, drawing up a detailed list of the powers vested or specifying that all the
powers are vested that may be vested by law and by the Company By-laws.
		
		  	If several Managing Directors exist, indication should be made as to which powers are to be exercised jointly and severally and which are to be exercised jointly, or where applicable, if all
or any shall be exercised either one way or the other.
		
	Committees	  	Without prejudice to those powers vested on the Managing Director(s) and the provisions of these By-Laws and the Regulation of the Board with respect to the Audit Committee and the
Appointments and Remunerations Committee, when circumstances so dictate, the Board of Directors may create within the Board a Strategy and Investments Committee, as well as one or more Delegate Committees to address other issues falling within its
remit or other specific matters.
		
	Regulation	  	The Board of Directors shall appoint its members, decide on its organization and procedure, and approve its Regulations when applicable.

  

 39 

 ARTICLE TWENTY-FOUR BIS 
  

			
	Audit committee	  	The Audit committee shall have at least three members and a maximum of five, to be decided by the Board of Directors of the Company.
		
	Members	  	The Board of Directors shall appoint the members of the Audit committee from among its members, the majority of which should be non-executive external, independent or proprietary Directors,
and similarly to the existing distribution on the Board of Directors.
		
		  	The Board of Directors shall decide on the dismissal of members of the Audit committee, and must indicate the causes for such action.
		
	Chairman	  	The Board of Directors shall appoint the Chairman of the Audit committee from among its non-executive or external members. The Committee shall then appoint its own Secretary, who does not
have to be a Director and may be the Secretary of the Board of Directors.
		
		  	Unless the Board of Directors indicates a shorter period of time, the Chairman shall hold office for four years and may be re-elected one year after leaving office. With the exception of the
Secretary, whose term of office, if he/she is not a member of the Committee, may be indefinite, the remaining members of the Committee shall hold office for five years, unless the Board of Directors indicates a shorter period of time, and may be
immediately re-elected. In any event, members may be disqualified from acting in such capacity as a result of ceasing to hold the position of Director.
		
	Remuneration	  	The members of the Committee may receive per diem amounts for attendance at its meetings, as established by article twenty-five of these By-Laws, the source and amount of which shall be
decided by the Board of Directors. Members of the Committee shall not be entitled to any other remuneration apart from to which they are entitled as Directors, with the exception of reimbursements for duly justified job-related
expenses.

 ARTICLE TWENTY-FOUR TER 
  

			
	Calling of Committees	  	The Audit committee shall meet when called by its Chairman, on its own initiative or upon request of at least two of its members or by the Board of Directors. Such request must be addressed
to the Chairman, clearly indicating the matters to be discussed. Notice of the meeting of the Committee shall be issued by the Chairman, or by the Secretary at the request of the Chairman, at least two days before the date for the meeting, by means
of letter, fax, telegram or electronic mail, clearly indicating the matters to be discussed therein.
		
		  	Extraordinary sessions of the Committee may be called by telephone. In such case, neither the period of notice nor the other requirements established in the previous paragraph shall apply,
although only in those cases in which the Chairman deems that the circumstances justify such action.
		
		  	Meetings shall be held at the company headquarters or in any other placein the city where the company has its registered office, which shall decided by the Chairman or by the Secretary at
his/her request, and shall be indicated in the notice of the meeting.

  

 40 

			
	 Incorporation
 and Quorum
	  	The Committee shall be deemed to have sufficient quorum and be validly held when half plus one of its members are present or validly represented. Any proxies shall be conferred upon other
members of the Committee in writing, by means of fax or electronic mail addressed to the Chairman or the Secretary of the Committee.
		
		  	The Chairman shall be responsible leading the deliberations and discussions of the meeting, and giving the floor as he/she deems fit.
		
		  	Directors, managers and employees that are not committee members shall attend and report to the Audit committee, at the request of its Chairman or its Secretary, with respect to those matters
falling within the scope of its remit.
		
	Resolutions	  	Resolutions shall be adopted by majority of the members present or represented. In the event of a tie, the Chairman shall have the casting vote.
		
	Minutes	  	The Secretary shall take minutes of the sessions, which shall be approved at the end thereof or in the immediately following session. The minutes, approved and signed by the Secretary with
the approval of the Chairman, shall be recorded in a special Minutes Book for resolutions and decisions of the Audit committee.
		
	Assessment	  	For the most effective performance of its functions, the Committee may request the person that it deems fit to provide any necessary information, and may seek advice from external
professionals following prior notice and approval of the Board of Directors.
		
	Procedure	  	The Audit Committee shall set forth its own rules governing those cases that are not expressly provided for in these By-laws.
		
		  	In those cases not specifically envisaged in these By-Laws, or where applicable, in the aforementioned Committee regulations, the Audit committee shall submit to the provisions set forth by
law and these by- laws with respect to the Board of Directors. Any matter relating to the composition, organization and procedure of the Audit committee shall be settled in the manner that best ensures the Committee’s continued independence.

 ARTICLE TWENTY-FOUR QUARTER 
  

							
	Functions of the Audit Committee	  	Without prejudice to any others that may legally fall within its remit, the Audit Committee shall have the following duties and functions:
			
		  	I)	  	With respect to the information and internal control systems, supervise the internal audit services and be informed of the financial information processes and internal control
systems of the company, including the following functions:
				
		  		  	a)	  	Oversee the preparation process for and integrity of the financial information relating to the company, and where applicable, to the group, checking compliance with the applicable statutory
requirements and the correct consolidation of accounts and application of accounting rules.
				
		  		  	b)	  	Periodically review the internal control and risk management systems so that the main risks may be identified and appropriately reported.

  

 41 

							
		  		  	c)	  	Ensure the independence and efficiency of the company’s internal auditing.
				
		  		  	d)	  	Establish a mechanism allowing employees to report on a confidential basis any irregularities of potential significance in financial and accounting terms that they may have noted at the company.

			
		  	II)	  	With respect to the company’s external auditors:
				
		  		  	a)	  	Submit to the Board of Directors, for subsequent referral to the General Shareholders Meeting, any proposals for the selection, appointment, re-election and replacement of the external auditors,
as well as the terms and conditions for their engagement.
				
		  		  	b)	  	Receive information on a regular basis from the external auditors on the auditing plan and results for the year audited, and check that senior management takes into account their
recommendations.
				
		  		  	c)	  	Ensure the independence of the external auditors, enabling to such end: (i) that the company notifies the National Securities Market Commission, or the enterprise that replaces it in its
duties, by means of notice of the relevant significant event, of the change in auditor, and where applicable, includes a statement with respect to the possible existence of disagreement with the removed auditor; (ii) that the necessary
measures are taken for ensuring that the company and the auditors respect the applicable regulations governing the performance of services other than auditing services, the restrictions on the merger of the auditors’ business, and in general,
the rules established for ensuring the independence of the auditors; and (iii) in the event of resignation of the external auditor, that circumstances having led to such resignation are examined.
				
		  		  	d)	  	Encourage the assumption by the auditors of the group of companies of the auditing obligations of the companies forming such group.
				
		  		  	e)	  	In general, be informed of all relations with the external auditors and serve as a liaison therewith, so that, in particular, information may be received regarding those issues that may
jeopardize the independence of such auditors and with respect to any other matters related to the auditing process, as well as any other notices stipulated in legislation on auditing and in the technical standards on auditing.
			
		  	III)	  	With respect to corporate governance, oversee compliance with the company’s internal codes of conducts and the corporate governance rules established by the company from time to
time.
			
		  	IV)	  	With respect to reporting to the company’s management bodies:
			
		  		  	a) Report in the General Shareholders Meeting regarding those matters raised therein by the shareholders concerning the areas of its remit.
			
		  		  	b) Report to the Board of Directors, prior to the its adoption of the relevant resolutions, on the following matters: (i) the financial information that the company, as a listed
company, must publish on a periodic basis; (ii) the creation or acquisition of holdings in companies incorporated for a special purpose or domiciled in tax havens, as well as any other transactions or operations of a similar nature, which on
account of their complexity may hinder the transparency of the group; (iii) affiliate transactions.

  

 42 

							
			
		  		  	Minutes shall be drawn up of the Audit Committee, a copy of which shall be sent to all members of the Board of Directors.
			
		  		  	Through its Chairman, the Committee shall periodically report to the Board of Directors on its activities and shall propose those measures that it deems fit within the scope of its
remit

 ARTICLE TWENTY-FIVE 
  

			
	Remuneration	  	The office of Director shall be remunerated. Such remuneration shall consist of an annual fixed amount to be decided each year by the company’s Board of Directors for the year in which such
decision is taken. The Board shall also decide on the criteria for its distribution among the members of the Board.
		
		  	Such amount shall not exceed the maximum annual amount established by the General Meeting, which shall be deemed to be effective for the actual year in course and for years thereinafter, until
amendment thereof by the General Meeting.
		
	Other Payments	  	Additionally, the Directors may also receive as remuneration, cumulatively to the remuneration stipulated in the foregoing section, shares or option rights over such shares or that are linked to
the value thereof, the approval of which shall require the relevant resolution of the General Shareholders Meeting, which shall decide on the value of the shares to be taken as a benchmark, the number of shares to be granted to each Director, the
price at which the option rights may be exercised, the term of application of this system of remuneration, and any other terms and conditions that it deems appropriate.
		
		  	The foregoing shall not prevent or restrict any other remuneration agreed to by the company with its Directors within the scope of an employment relationship or for the performance of specific
professional services

 TITLE IV. BALANCE SHEET 
 ARTICLE TWENTY-SIX 
  

			
	The Company’s Financial Year	  	The Company’s financial year shall coincide with the calendar year, commencing on the 1st of January and ending on the 31st of December in each year.

 ARTICLE TWENTY-SEVEN 
  

			
	Preparation of accounts	  	Within the first three months of each financial year, the Board of Directors shall prepare the annual accounts, the management report and the proposal for the allocation of results. Following
the review and discussion thereof by the Auditors, where applicable, they shall be submitted to the General Meeting, within the time limit set forth by law.

  

 43 

			
		
	Allocation of Results	  	The allocation of results for the financial year by the General Meeting shall be carried out as follows:
		
		  	a) Those amounts forming by law the mandatory reserve funds specific, corporate etc.
		
		  	b) Any surplus, in accordance with the resolutions adopted by the General Meeting of Shareholders.
		
		  	The Board of Directors may decide to distribute interim dividends, subject to the restrictions and the requirements of the Public Companies Act.
		
		  	The General Meeting may fully or partially agree the distribution of in-kind dividends, whether charged to profits of the year or to freely available reserves, providing the assets or securities
that are the object of distribution are uniform and sufficiently available or susceptible to being available, with this circumstances understood as fulfilled when these are securities that are admitted or which will be admitted for trading on an
official secondary market.
		
		  	The regulations set forth in the previous paragraph shall likewise apply to the reimbursement of contributions in the event of a reduction of share capital.

 TITLE V. DISSOLUTION AND LIQUIDATION 
 ARTICLE TWENTY-EIGHT 
  

			
	Dissolution	  	The Company shall be dissolved for those reasons established in the Public Companies Act.
		
	Quorum for dissolution	  	When the Company must be dissolved for legal reasons requiring a resolution of the General Meeting of Shareholders, such meeting shall be deemed to have sufficient quorum in the terms set forth
in paragraph two of article fifteen of these By-laws.
		
		  	Where the dissolution of the Company results from losses implying that the Company’s net worth is less than half the share capital, such dissolution may be avoided by means of a resolution
to increase or reduce the share capital accordingly. Such adjustment shall be enforceable provided that it is carried out before the Company is legally declared to have been dissolved.

 ARTICLE TWENTY-NINE 
  

			
	Liquidation	  	The rules for the dissolution, appointment of liquidators and the liquidation of the company shall be established by the General Shareholders Meeting in accordance with the provisions of the
Public Companies Act and the Companies Registry Regulations.

 ADDITIONAL PROVISION 
  

			
		  	On [—], the Extraordinary Shareholders General Meeting of the Company approved the merger through absorption of the Company, as the absorbing company,
with the Spanish company Groupe Smithfield Holdings, S.L. as the absorbed company (hereinafter referred to as the “Merger”). The Merger is subject

  

 44 

							
		 	to the National Securities Market Commission agreeing application of the exception (hereinafter referred to as the “Exception”) set forth in article 8 g) of Royal
Decree 1066/2007, dated 27 July, governing the system of takeover bids (hereinafter referred to as “Royal Decree 1066/2007”), which shall be requested by the company Smithfield Foods Inc, in such a way that this company is not
obliged to prepare a takeover bid of the Company, regardless of the Shareholding Stake (as defined hereunder) in the Company that shall be attributed to this enterprise following the merger, in accordance with the provisions set forth hereunder and
through the companies that belong to the same Group Cold Field Investments, LLC, Smithfield Insurance Company, Ltd., and SFDS Global Holdings B.V.,, in their capacity as direct shareholders of the Company (hereinafter , Smithfield Foods Inc and the
aforementioned companies Cold Field Investments, LLC, Smithfield Insurance Company, Ltd., and SFDS Global Holdings, B.V., referred to as the “Companies of the Smithfield Group”).
		
		 	From the date that the Merger is registered with the Commercial Registry (hereinafter referred to as the “Effective Date of the Merger”), the system established
hereunder shall apply:
			
		 	1.	 	For the purposes of this Additional Provision “Shareholding Stake” shall be understood as the shareholding percentage in the voting rights of the Company
attributed at any given time to Companies of the Smithfield Group, in accordance with and pursuant to the calculation criteria set forth in article 5 of Royal Decree 1066/2007. The obligations set forth in this Additional Provision shall apply,
jointly and severally, to all Companies of the Smithfield Group, in their capacity as direct shareholders of the Company.
			
		 	2.	 	For a period of three years following the Effective Date of the Merger (hereinafter referred to as the “Stand-still Period”) the Companies of the Smithfield Group
expressly accept the obligations and undertakings set forth hereunder:
				
		 		 	2.1.	 	The Companies of the Smithfield Group cannot (i) exercise the voting rights corresponding to the shares they hold by a percentage which, jointly considered, exceeds 30% of the Company's
share capital, or in any case (ii) use their votes to appoint more than half of the members of the Board of Directors of the Company, with this appointment understood in accordance with the terms and pursuant to the events set forth in article
6 of Royal Decree 1066/2007.
				
		 		 	2.2.	 	The Companies of the Smithfield Group cannot directly or indirectly purchase, either themselves or through any other company belonging to the same Group, shares of the Company or enter into
sale or purchase option agreements or other similar agreements by virtue of which they could acquire the foregoing additional shares, or in any other way increase the Shareholding Stake in the Company, as it is defined in foregoing number 1, except
as set forth hereunder and with regard to the Authorised Increases referred to under number 6 below.
				
		 		 	2.3.	 	By way of an exception and in the event that during the period of three years referred to previously a Third Party Takeover Bid (as it is defined hereunder) is announced (under the terms of
article 16 of Royal Decree 1066/2007), the following shall apply:

  

 45 

									
					
		 		 		 	a.	 	The restriction referred to in section (i) of foregoing number 2.1 shall be automatically brought forward and definitively terminated.
					
		 		 		 	b.	 	The restriction referred to under number 2.2 with regard to any increase of the Shareholding Stake that takes place at any time from announcement of the Third Party Takeover Bid and up until
the date of publication of the result of the Third Party Takeover Bid or until the date that the bidder withdraws the aforementioned Third Party Takeover Bid shall not be applicable, in full accordance with the provisions set forth in Royal Decree
1066/2007.
			
		 	3.	 	Without prejudice to the foregoing and once the Stand-still Period referred to in foregoing section 2 has concluded, the Companies of the Smithfield Group shall be obliged to
prepare a takeover bid under the terms and conditions set forth in this Additional Provision (hereinafter referred to as the “Takeover Bid”), whenever any of the following circumstances concur:
				
		 		 	3.1.	 	That the Companies of the Smithfield Group increase the Shareholding Stake in the Company, either directly or indirectly, themselves or through any other company that belongs to
the same group, in such a way that the foregoing Shareholding Stake, calculated in accordance with foregoing number 1, exceeds the Shareholding Stake of which the Companies of the Smithfield Group are holders following the Merger or following an
Authorised Increase or following an increase stemming from the provisions set forth in section 2.3. (b), except under all circumstances where provided for in number 6 hereunder of this Additional Provision.
				
		 		 	3.2.	 	That the Companies of the Smithfield Group designate appoint a number of Directors that, together, if appropriate, with those that had been previously appointed, represent more
than half of the members of the Company’s Board of Directors. For the foregoing purposes, it shall be considered that the Companies of the Smithfield Group have appointed members of the Company’s Board of Directors when any of the
hypotheses set forth in article 6 of Royal Decree 1066/2007 concur.
			
		 	4.	 	The Companies of the Smithfield Group that are involved in any of the hypotheses mentioned under foregoing number 3 must make this public immediately in accordance with the terms
of article 82 of Law 24/1988, dated 28 July, governing the Securities Market, and present the corresponding request for authorisation of the Takeover Bid to the National Securities Market Commission within the month following the foregoing
publication.
			
		 	5.	 	The Takeover Bid must be addressed to all holders of Company Shares, under the terms and in accordance with the provisions set forth in article 3.2 of Royal Decree 1066/2007, with
the criteria and valuation method set forth in article 10 of Royal Decree 1066/2007 applicable for the purposes of determining the price and the consideration offered. The Takeover Bid must be prepared unconditionally, except for the authorisations
required by other supervisory bodies and by the fair trading authorities, in accordance with the provisions set forth in article 26 of Royal Decree 1066/2007. Unless otherwise is established in this Additional Provision, the system set forth in
foregoing Royal Decree 1066/2007 shall apply to the Takeover Bid.

  

 46 

									
			
		 	6.	 	By exception, the Companies of the Smithfield Group shall not be obliged to prepare a Takeover Bid under the protection of this Additional Provision, with regard to those
increases of Shareholding Stake that stem from any of the following cases (hereinafter referred to as the “Authorised Increases”):
					
		 		 		 	(i)	 	when the increase of Shareholding Stake stems from a share capital increase of the Company not fully subscribed in accordance with the terms of article 161 of the Public Companies Act, in
which the Companies of the Smithfield Group have limited themselves to subscribe the new shares that would correspond to the preemptive subscription rights stemming from the Shareholding Stake;
					
		 		 		 	(ii)	 	when the increase of Shareholding Stake is passive and unexpected for the Companies of the Smithfield Group and leads to a reduction of share capital of the Company and/or of the acquisition
of treasury stock by this party.
			
		 	7.	 	The system set forth in this Additional Provision shall be rendered void when a Third Party Takeover Bid is prepared after the Merger and in addition the foregoing (i) had a
positive result, in the terms and pursuant to the provisions set forth in article 36 of Royal Decree 1066/2007; and (ii) had been accepted by at least 70% of the shares at which it was targeted, excluding from this calculation the shares
calculated in the Shareholding Stake, those held by the bidder of the Third Party Takeover Bid and by any persons linked to Companies of the Smithfield Group or to the bidder of the Third Party Takeover Bid or whose shares are attributed to any of
the foregoing in accordance with the criteria set forth in article 5 of Royal Decree 1066/2007.
			
		 		 	For the foregoing purposes, “Third Party Takeover Bid” shall be understood as a takeover bid for 100% of the Company shares, that has been authorised by the
National Securities Market Commission under the protection of and in accordance with the provisions set forth in Royal Decree 1066/2007 and which had been prepared by any person or company other than Companies of the Smithfield Group, of any related
party to or linked with Companies of the Smithfield Group or which have reached any agreements with Companies of the Smithfield Group or with related companies or corporations.
			
		 	8.	 	The mentions made to the National Securities Market Commission in this Additional Provision shall be understood as referring to any body or authority that may, if appropriate,
replace, succeed or take over the functions of the former with regard to takeover bids henceforth. The mentions to Royal Decree 1066/2007 shall likewise be understood as referring mutatis mutandis to any other provision that may replace the
former.
			
		 	9.	 	It is hereby placed on record that this Additional Provision has been adopted having previously received individual acquiescence from each and every one of the Companies of the
Smithfield Group with regard to its full content and to the resulting obligations for these companies as a consequence of the foregoing.

  

 47

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