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EXHIBIT 10.3

EXHIBIT C

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of the [___] day of
[                    ]
2006, by and among JK Acquisition Corp., a Delaware corporation (the
“Company”), Catalyst/Hall Growth Capital
Management Co., LLC, as members’ representative (the
“Members’ Representative”), and the undersigned parties listed on the signature page hereto
(each a “Stockholder” and collectively, the “Stockholders”), each of whom was a
member of Multi-Shot, LLC prior to the Effective Time of the Merger. Unless otherwise indicated,
capitalized terms not defined herein have the meanings set forth in the Merger Agreement.

     WHEREAS, the Company and the Stockholders are parties to that certain Agreement and Plan of
Merger, dated September 6, 2006, among the Company, Multi-Shot, Inc., Multi-Shot, LLC,
Catalyst Hall Growth Capital Management Co., LLC and the members of Multi-Shot, LLC (the “Merger
Agreement”);

     WHEREAS, the Stockholders own [                    ] shares of Common Stock of the Company and
[                    ] Warrants;

     WHEREAS, as a material inducement to enter into the Merger Agreement, the Stockholders and the
Company desire to enter into this Agreement to provide the Stockholders with certain rights
relating to the registration of such shares of Common Stock and such shares of Common Stock
issuable upon the exercise of such Warrants held by them;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1. DEFINITIONS. The following capitalized terms used herein have the following meanings:

     “Agreement” means this Agreement, as amended, restated, supplemented, or otherwise
modified from time to time.

     “Commission” means the Securities and Exchange Commission, or any other federal agency
then administering the Securities Act or the Exchange Act.

     “Common Stock” means the common stock, par value $0.0001 per share, of the Company.

     “Company” is defined in the preamble to this Agreement.

     “Demand Registration” means a written demand for registration under the Securities Act
of all or part of their Registrable Securities.

     “Demanding Holder” means each holder of Registrable Securities who wishes to include
all or a portion of such holder’s Registrable Securities in a Demand Registration.

     “Disclosure Package” means the preliminary prospectus included in the Registration
Statement immediately prior to the Time of Sale and any additional materials distributed in
connection with the offering and sale of Registrable Securities.

     “Escrow Agreement” means the Escrow Agreement dated as of [                     ___], 2006
executed and delivered by the Company, Catalyst/Hall Growth Capital Management, LLC, the
Stockholders and Zions First National Bank pursuant to Section 2.04(b) of the Merger Agreement.

 

 

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.

     “Form S-3” is defined in Section 2.3.

     “Indemnified Party” is defined in Section 4.3.

     “Indemnifying Party” is defined in Section 4.3.

     “Stockholder Indemnified Party” is defined in Section 4.1.

     “Maximum Number of Shares” is defined in Section 2.1.4.

     “Merger Agreement” is defined in the recitals to this Agreement.

     “Notices” is defined in Section 6.2.

     “Piggy-Back Registration” is defined in Section 2.2.1.

     “Register,” “Registered” and “Registration” mean a registration
effected by preparing and filing a registration statement or similar document in compliance with
the requirements of the Securities Act, and the applicable rules and regulations promulgated
thereunder, and such registration statement becoming effective.

     “Registrable Securities” mean all of the shares of Common Stock and Warrants owned or
held by the Stockholders and all of the shares of Common Stock issuable upon exercise of the
Warrants, whether or not such shares of Common Stock or Warrants are then subject to the Escrow
Agreement. Registrable Securities include any warrants, shares of capital stock or other securities
of the Company issued as a dividend or other distribution with respect to or in exchange for or in
replacement of such shares of Common Stock. As to any particular Registrable Securities, such
securities shall cease to be Registrable Securities when: (a) a Registration Statement with respect
to the sale of such securities shall have become effective under the Securities Act and such
securities shall have been sold, transferred, disposed of or exchanged in accordance with such
Registration Statement; (b) such securities shall have been otherwise transferred, new certificates
for them not bearing a legend restricting further transfer shall have been delivered by the Company
and subsequent public distribution of them shall not require registration under the Securities Act;
(c) such securities shall have ceased to be outstanding, (d) the Securities and Exchange Commission
makes a definitive determination to the Company that the Registrable Securities are salable under
Rule 144(k), or (e) such securities shall no longer be entitled to registration rights pursuant to
the terms hereof.

     “Registration Statement” means a registration statement filed by the Company with the
Commission in compliance with the Securities Act and the rules and regulations promulgated
thereunder for a public offering and sale of Common Stock (other than a registration statement on
Form S-4 or Form S-8, or their successors, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another entity).

     “Release Date” means the date that is six months after the Effective Time as defined
in the Merger Agreement.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.

     “Time of Sale” means the time and date as of which contracts for sale of Registrable
Securities are deemed made pursuant to a Registration Statement filed pursuant to this Agreement.

     “Underwriter” means a securities dealer who purchases any Registrable Securities as
principal in an underwritten offering and not as part of such dealer’s market-making activities.

     “Warrants” means those Parent Warrants and Redemption Warrants issued by the Company
to the Stockholders as Merger Consideration pursuant to the Merger Agreement.

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2. REGISTRATION RIGHTS.

     2.1 Demand Registration.

     2.1.1 Request for Registration by the Stockholders. At any time and from time to time
on or after the Release Date, the Members’ Representative or, if the Members’ Representative ceases
to act as such, the holders of a majority-in-interest of the Registrable Securities held by the
Stockholders or the transferees of the Stockholders, may make up to two (2) written demands for a
Demand Registration. The Company will notify the Stockholders of its receipt of and intent to act
upon the demand, and each Stockholder shall notify the Company within fifteen (15) days after the
receipt by the holder of the notice from the Company specifying the number of Registerable
Securities that such Demanding Holder wishes to include in such Demand Registration and the
intended method(s) of distribution thereof. Upon any such request, the Demanding Holders shall be
entitled to have their Registrable Securities included in the Demand Registration, subject to
Section 2.1.4 and the provisos set forth in Section 3.1.1. The Company shall not be obligated to
effect more than an aggregate of two (2) Demand Registrations under this Section 2.1.1 in respect
of Registrable Securities.

     2.1.2 Effective Registration. A registration will not count as a Demand Registration
until the Registration Statement filed with the Commission with respect to such Demand Registration
has been declared effective and the Company has complied with all of its obligations under this
Agreement with respect thereto; provided, however, that if, after such Registration Statement has
been declared effective, the offering of Registrable Securities pursuant to a Demand Registration
is interfered with by any stop order or injunction of the Commission or any other governmental
agency or court, the Registration Statement with respect to such Demand Registration will be deemed
not to have been declared effective, unless and until, (i) such stop order or injunction is
removed, rescinded or otherwise terminated, and (ii) the Members’ Representative or a
majority-in-interest of the Demanding Holders, whichever is applicable, thereafter elect to
continue the offering; provided, further, that the Company shall not be obligated to file a second
Registration Statement until a Registration Statement that has been filed is counted as a Demand
Registration or is terminated.

     2.1.3 Underwritten Offering. If the Members’ Representative or a majority-in-interest
of the Demanding Holders, whichever is applicable, so elects and such holders so advise the Company
as part of their written demand for a Demand Registration, the offering of such Registrable
Securities pursuant to such Demand Registration shall be in the form of an underwritten offering.
In such event, the right of any holder to include its Registrable Securities in such registration
shall be conditioned upon such holder’s participation in such underwriting and the inclusion of
such holder’s Registrable Securities in the underwriting to the extent provided herein. All
Demanding Holders proposing to distribute their securities through such underwriting shall enter
into an underwriting agreement in customary form with the Underwriter or Underwriters selected for
such underwriting by the Members’ Representative or a majority-in-interest of the holders
initiating the Demand Registration, whichever is applicable.

     2.1.4 Reduction of Offering. If the managing Underwriter or Underwriters for a Demand
Registration that is to be an underwritten offering advises the Company and the Demanding Holders
in writing that the dollar amount or number of shares of Registrable Securities which the Demanding
Holders desire to sell, taken together with all other shares of Common Stock or other securities
which the Company desires to sell and the shares of Common Stock, if any, as to which registration
has been requested pursuant to written contractual piggy-back registration rights held by other
stockholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number
of shares that can be sold in such offering without adversely affecting the proposed offering
price, the timing, the distribution method, or the probability of success of such offering (such
maximum dollar amount or maximum number of shares, as applicable, the “Maximum Number of
Shares”), then the Company shall include in such registration: (i) first, the Registrable
Securities as to which such Demand Registration has been requested by the Demanding Holders (pro
rata in accordance with the number of shares that each such Person has requested be included in
such registration, regardless of the number of shares held by each such Person (such proportion is
referred to herein as “Pro Rata”)) that can be sold without exceeding the Maximum Number of
Shares; (ii) second, to the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the Company desires to
sell that can be sold without exceeding the Maximum Number of Shares; and (iii) third, to the
extent that the Maximum Number of Shares have not been reached under the foregoing clauses (i) and
(ii), the shares of Common Stock or other securities for the account of other persons

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that the Company is obligated to register pursuant to written contractual arrangements with
such persons and that can be sold without exceeding the Maximum Number of Shares.

     2.1.5 Withdrawal. If the Members’ Representative or a majority-in-interest of the
Demanding Holders, whichever is applicable, disapprove of the terms of any underwriting or are not
entitled to include all of their Registrable Securities in any offering, the Members’
Representative or such majority-in-interest of the Demanding Holders, whichever is applicable, may
elect to withdraw from such offering by giving written notice to the Company and the Underwriter or
Underwriters of their request to withdraw prior to the effectiveness of the Registration Statement
filed with the Commission with respect to such Demand Registration. If the Members’ Representative
or such majority-in-interest of the Demanding Holders withdraws from a proposed offering relating
to a Demand Registration, then such registration shall be terminated and withdrawn and shall not
count as a Demand Registration provided for in Section 2.1.

     2.2 Piggy-Back Registration.

     2.2.1 Piggy-Back Rights. If at any time on or after the Release Date the Company
proposes to file a Registration Statement under the Securities Act with respect to an offering of
equity securities, or securities or other obligations exercisable or exchangeable for, or
convertible into, equity securities, by the Company for its own account or for stockholders of the
Company for their account (or by the Company and by stockholders of the Company including, without
limitation, pursuant to Section 2.1), other than a Registration Statement (i) filed in connection
with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of
securities solely to the Company’s existing stockholders, (iii) for an offering of debt that is
convertible into equity securities of the Company or (iv) for a dividend reinvestment plan, then
the Company shall (x) give written notice of such proposed filing to the holders of Registrable
Securities as soon as practicable but in no event less than ten (10) days before the anticipated
filing date, which notice shall describe the amount and type of securities to be included in such
offering, the intended method(s) of distribution, and the name of the proposed managing Underwriter
or Underwriters, if any, of the offering, and (y) offer to the holders of Registrable Securities in
such notice the opportunity to register the sale of such number of shares of Registrable Securities
as such holders may request in writing within five (5) days following receipt of such notice (a
“Piggy-Back Registration”). The Company shall cause such Registrable Securities to be
included in such registration and shall use its best efforts to cause the managing Underwriter or
Underwriters of a proposed underwritten offering to permit the Registrable Securities requested to
be included in a Piggy-Back Registration on the same terms and conditions as any similar securities
of the Company and to permit the sale or other disposition of such Registrable Securities in
accordance with the intended method(s) of distribution thereof. All holders of Registrable
Securities proposing to distribute their securities through a Piggy-Back Registration that involves
an Underwriter or Underwriters shall enter into an underwriting agreement in customary form with
the Underwriter or Underwriters selected for such Piggy-Back Registration.

     2.2.2 Reduction of Offering. If the managing Underwriter or Underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders
of Registrable Securities in writing that the dollar amount or number of shares of Common Stock
which the Company desires to sell, taken together with shares of Common Stock, if any, as to which
registration has been demanded pursuant to written contractual arrangements with persons other than
the holders of Registrable Securities hereunder, the Registrable Securities as to which
registration has been requested under this Section 2.2, and the shares of Common Stock, if any, as
to which registration has been requested pursuant to the written contractual piggy-back
registration rights of other stockholders of the Company, exceeds the Maximum Number of Shares,
then the Company shall include in any such registration:

     (i) If the registration is undertaken for the Company’s account: (A) first, the shares of
Common Stock or other securities that the Company desires to sell that can be sold without
exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clause (A), the shares of Common Stock or other
securities, if any, comprised of Registrable Securities, as to which registration has been
requested pursuant to the applicable written contractual piggy-back registration rights of such
security holders, Pro Rata, that can be sold without exceeding the Maximum Number of Shares; and
(C) third, to the extent that the Maximum Number of shares has not been reached under the foregoing
clauses (A) and (B), the shares of Common Stock or other securities for the account of other
persons that the Company is obligated to register pursuant to

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written contractual piggy-back registration rights with such persons and that can be sold
without exceeding the Maximum Number of Shares; and

     (ii) If the registration is a “demand” registration undertaken at the demand of persons other
than the holders of Registrable Securities, (A) first, the shares of Common Stock or other
securities for the account of the demanding persons that can be sold without exceeding the Maximum
Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clause (A), collectively the shares of Common Stock or other securities
comprised of Registrable Securities, pro rata, as to which registration has been requested pursuant
to the terms hereof, that can be sold without exceeding the Maximum Number of Shares; (C) third, to
the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A)
and (B), the shares of Common Stock or other securities that the Company desires to sell that can
be sold without exceeding the Maximum Number of Shares; and (D) fourth, to the extent that the
Maximum Number of Shares has not been reached under the foregoing clauses (A), (B) and (C), the
shares of Common Stock or other securities for the account of other persons that the Company is
obligated to register pursuant to written contractual arrangements with such persons, that can be
sold without exceeding the Maximum Number of Shares. .

     2.2.3 Withdrawal. Any holder of Registrable Securities may elect to withdraw such
holder’s request for inclusion of Registrable Securities in any Piggy-Back Registration by giving
written notice to the Company of such request to withdraw prior to the effectiveness of the
Registration Statement. The Company (whether on its own determination or as the result of a
withdrawal by persons making a demand pursuant to written contractual obligations) may withdraw a
registration statement at any time prior to the effectiveness of the Registration Statement.
Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders of
Registrable Securities in connection with such Piggy-Back Registration as provided in Section 3.3.

     2.3 Registrations on Form S-3. The holders of Registrable Securities may at any time
and from time to time, request in writing that the Company register the resale of any or all of
such Registrable Securities on Form S-3 or any similar short-form registration which may be
available at such time (“Form S-3”); provided, however, that the Company shall not be
obligated to effect such request through an underwritten offering. Upon receipt of such written
request, the Company will promptly give written notice of the proposed registration to all other
holders of Registrable Securities, and, as soon as practicable thereafter, effect the registration
of all or such portion of such holder’s or holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities or other securities of the
Company, if any, of any other holder or holders joining in such request as are specified in a
written request given within fifteen (15) days after receipt of such written notice from the
Company; provided, however, that the Company shall not be obligated to effect any such registration
pursuant to this Section 2.3: (i) if Form S-3 is not available for such offering; or (ii) if the
holders of the Registrable Securities, together with the holders of any other securities of the
Company entitled to inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at any aggregate price to the public of less than $500,000. Registrations
effected pursuant to this Section 2.3 shall not be counted as Demand Registrations effected
pursuant to Section 2.1.

3. REGISTRATION PROCEDURES.

     3.1 Filings; Information. Whenever the Company is required to effect the registration
of any Registrable Securities pursuant to Section 2, the Company shall use its best efforts to
effect the registration and sale of such Registrable Securities in accordance with the intended
method(s) of distribution thereof as expeditiously as practicable, and in connection with any such
request:

     3.1.1 Filing Registration Statement. The Company shall, as expeditiously as possible
and in any event within sixty (60) days after receipt of a request for a Demand Registration
pursuant to Section 2.1, prepare and file with the Commission a Registration Statement on any form
for which the Company then qualifies or which counsel for the Company shall deem appropriate and
which form shall be available for the sale of all Registrable Securities to be registered
thereunder in accordance with the intended method(s) of distribution thereof, and shall use its
best efforts to cause such Registration Statement to become and remain effective for the period
required by Section 3.1.3; provided, however, that the Company shall have the right to defer any
Demand Registration for up to thirty (30) days, and any Piggy-Back Registration for such period as
may be applicable to deferment of any demand registration to which such Piggy-Back Registration
relates, in each case if the Company shall furnish to the holders a

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certificate signed by the Chief Executive Officer or President of the Company stating that, in
the good faith judgment of the Board of Directors of the Company, it would be materially
detrimental to the Company and its stockholders for such Registration Statement to be effected at
such time; provided further, however, that the Company shall not have the right to exercise the
right set forth in the immediately preceding proviso more than once in any 365-day period in
respect of a Demand Registration hereunder.

     3.1.2 Copies. The Company shall, prior to filing a Registration Statement or
prospectus, or any amendment or supplement thereto, furnish without charge to the holders of
Registrable Securities included in such registration, and such holders’ legal counsel, copies of
such Registration Statement as proposed to be filed, each amendment and supplement to such
Registration Statement (in each case including all exhibits thereto and documents incorporated by
reference therein), the prospectus included in such Registration Statement (including each
preliminary prospectus), and such other documents as the holders of Registrable Securities included
in such registration or legal counsel for any such holders may request in order to facilitate the
disposition of the Registrable Securities owned by such holders.

     3.1.3 Amendments and Supplements. The Company shall prepare and file with the
Commission such amendments, including post-effective amendments, and supplements to such
Registration Statement and the prospectus used in connection therewith as may be necessary to keep
such Registration Statement effective and in compliance with the provisions of the Securities Act
until all Registrable Securities and other securities covered by such Registration Statement have
been disposed of in accordance with the intended method(s) of distribution set forth in such
Registration Statement (which period shall not exceed the sum of one hundred eighty (180) days plus
any period during which any such disposition is interfered with by any stop order or injunction of
the Commission or any governmental agency or court) or such securities have been withdrawn.

     3.1.4 Notification. After the filing of a Registration Statement, the Company shall
promptly, and in no event more than two (2) business days after such filing, notify the holders of
Registrable Securities included in such Registration Statement of such filing, and shall further
notify such holders promptly and confirm such advice in writing in all events within two (2)
business days of the occurrence of any of the following: (i) when such Registration Statement
becomes effective; (ii) when any post-effective amendment to such Registration Statement becomes
effective; (iii) the issuance or threatened issuance by the Commission of any stop order (and the
Company shall take all actions required to prevent the entry of such stop order or to remove it if
entered); and (iv) any request by the Commission for any amendment or supplement to such
Registration Statement or any prospectus relating thereto or for additional information or of the
occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so
that, as thereafter delivered to the purchasers of the securities covered by such Registration
Statement, such prospectus will not contain an untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading, and promptly make available to the holders of Registrable Securities included in such
Registration Statement any such supplement or amendment; except that before filing with the
Commission a Registration Statement or prospectus or any amendment or supplement thereto, including
documents incorporated by reference, the Company shall furnish to the holders of Registrable
Securities included in such Registration Statement and to the legal counsel for any such holders,
copies of all such documents proposed to be filed sufficiently in advance of filing to provide such
holders and legal counsel with a reasonable opportunity to review such documents and comment
thereon, and the Company shall not file any Registration Statement or prospectus or amendment or
supplement thereto, including documents incorporated by reference, to which such holders or their
legal counsel shall object.

     3.1.5 State Securities Laws Compliance. The Company shall use its best efforts to (i)
register or qualify the Registrable Securities covered by the Registration Statement under such
securities or “blue sky” laws of such jurisdictions in the United States as the holders of
Registrable Securities included in such Registration Statement (in light of their intended plan of
distribution) may request and (ii) take such action necessary to cause such Registrable Securities
covered by the Registration Statement to be registered with or approved by such other Governmental
Authorities as may be necessary by virtue of the business and operations of the Company and do any
and all other acts and things that may be necessary or advisable to enable the holders of
Registrable Securities included in such Registration Statement to consummate the disposition of
such Registrable Securities in such jurisdictions; provided, however, that the Company shall not be
required to qualify generally to do business in any jurisdiction where it would not otherwise be
required to qualify but for this paragraph or subject itself to taxation in any such jurisdiction.

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     3.1.6 Agreements for Disposition. The Company shall enter into customary agreements
(including, if applicable, an underwriting agreement in customary form) and take such other actions
as are reasonably required in order to expedite or facilitate the disposition of such Registrable
Securities. The representations, warranties and covenants of the Company in any underwriting
agreement which are made to or for the benefit of any Underwriters, to the extent applicable, shall
also be made to and for the benefit of the holders of Registrable Securities included in such
Registration Statement. No holder of Registrable Securities included in such Registration Statement
shall be required to make any representations or warranties in the underwriting agreement except,
if applicable, with respect to such holder’s organization, good standing, authority, title to
Registrable Securities, lack of conflict of such sale with such holder’s material agreements and
organizational documents, and with respect to written information relating to such holder that such
holder has furnished in writing expressly for inclusion in such Registration Statement.

     3.1.7 Cooperation. The principal executive officer of the Company, the principal
financial officer of the Company, the principal accounting officer of the Company and all other
officers and members of the management of the Company shall cooperate fully in any offering of
Registrable Securities hereunder, which cooperation shall include, without limitation, the
preparation of the Registration Statement with respect to such offering and all other offering
materials and related documents, and participation in meetings with Underwriters, attorneys,
accountants and potential investors.

     3.1.8 Records. The Company shall make available for inspection by the holders of
Registrable Securities included in such Registration Statement, any Underwriter participating in
any disposition pursuant to such Registration Statement and any attorney, accountant or other
professional retained by any holder of Registrable Securities included in such Registration
Statement or any Underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, as shall be necessary to enable them to exercise their due diligence
responsibility, and cause the Company’s officers, directors and employees to supply all information
requested by any of them in connection with such Registration Statement.

     3.1.9 Opinions and Comfort Letters. The Company shall furnish to each holder of
Registrable Securities included in any Registration Statement a signed counterpart, addressed to
such holder, of (i) any opinion of counsel to the Company delivered to any Underwriter and (ii) any
comfort letter from the Company’s independent public accountants delivered to any Underwriter. In
the event no legal opinion is delivered to any Underwriter, the Company shall furnish to each
holder of Registrable Securities included in such Registration Statement, at any time that such
holder elects to use a prospectus, an opinion of counsel to the Company to the effect that the
Registration Statement containing such prospectus has been declared effective and that no stop
order is in effect.

     3.1.10 Earnings Statement. The Company shall comply with all applicable rules and
regulations of the Commission and the Securities Act, and make available to its stockholders, as
soon as practicable, an earnings statement covering a period of twelve (12) months, beginning
within three (3) months after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

     3.1.11 Listing. The Company shall use its best efforts to cause all Registrable
Securities included in any registration to be listed on such exchanges or otherwise designated for
trading in the same manner as similar securities issued by the Company are then listed or
designated or, if no such similar securities are then listed or designated, in a manner
satisfactory to the holders of a majority of the Registrable Securities included in such
registration.

     3.2 Obligation to Suspend Distribution. Upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 3.1.4(iv), or, in the case of a resale
registration on Form S-3 pursuant to Section 2.3 hereof, upon any suspension by the Company,
pursuant to a written insider trading compliance program adopted by the Company’s Board of
Directors, of the ability of all “insiders” covered by such program to transact in the Company’s
securities because of the existence of material non-public information, each holder of Registrable
Securities included in any registration shall immediately discontinue disposition of such
Registrable Securities pursuant to the Registration Statement covering such Registrable Securities
until such holder receives the supplemented or amended prospectus contemplated by Section 3.1.4(iv)
or the restriction on the ability of “insiders” to transact in the Company’s securities is removed,
as applicable, and, if so directed by the Company, each such

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holder will deliver to the Company all copies, other than permanent file copies then in such
holder’s possession, of the most recent prospectus covering such Registrable Securities at the time
of receipt of such notice.

     3.3 Registration Expenses. The Company shall bear all costs and expenses incurred in
connection with any Demand Registration pursuant to Section 2.1, any Piggy-Back Registration
pursuant to Section 2.2, and any registration on Form S-3 effected pursuant to Section 2.3, and all
expenses incurred in performing or complying with its other obligations under this Agreement,
whether or not the Registration Statement becomes effective, including, without limitation: (i) all
registration and filing fees; (ii) fees and expenses of compliance with securities or “blue sky”
laws (including fees and disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities); (iii) printing expenses; (iv) the Company’s internal expenses (including,
without limitation, all salaries and expenses of its officers and employees); (v) the fees and
expenses incurred in connection with the listing of the Registrable Securities as required by
Section 3.1.11; (vi) National Association of Securities Dealers, Inc. fees; (vii) fees and
disbursements of counsel for the Company and fees and expenses for independent certified public
accountants retained by the Company (including the expenses or costs associated with the delivery
of any opinions or comfort letters requested pursuant to Section 3.1.9); (viii) the fees and
expenses of any special experts retained by the Company in connection with such registration and
(ix) the fees and expenses of one legal counsel selected by the Members’ Representative or the
holders of a majority-in-interest of the Registrable Securities included in such registration,
whichever is applicable. The Company shall have no obligation to pay any underwriting discounts or
selling commissions attributable to the Registrable Securities being sold by the holders thereof,
which underwriting discounts or selling commissions shall be borne by such holders. Additionally,
in an underwritten offering, all selling stockholders and the Company shall bear the expenses of
the underwriter pro rata in proportion to the respective amount of shares each is selling in such
offering.

     3.4 Information. The holders of Registrable Securities shall provide such information
as may reasonably be requested by the Company, or the managing Underwriter, if any, in connection
with the preparation of any Registration Statement, including amendments and supplements thereto,
in order to effect the registration of any Registrable Securities under the Securities Act pursuant
to Section 2 and in connection with the Company’s obligation to comply with federal and applicable
state securities laws.

     3.5 Form S-3 Availability. For so long as any Registerable Securities are outstanding,
the Company will (a) not incorporation or reincorporate in any jurisdiction other than one of the
United States; (b) maintain its principal place of business in the United States; (c) maintain a
class of securities registered under Section 12(b) or 12(g) of the Exchange Act; (d) timely file
when due all reports required to be filed by it under Section 13, 14 or 15(d) of the Exchange Act
(other than reports required pursuant to Items 1.01, 1.02, 2.03, 2.04, 2.05, 2.06, 4.02(a), 6.01,
6.03 or 6.05 of Form 8-K); (e) pay when due all dividends and installments of any sinking fund
relating to preferred stock, (f) not default on (i) any installments of principal and interest on
any indebtedness or (ii) any rents under any long-term lease such that any such defaults in the
aggregate would be material to the consolidated financial position of the Company and its
subsidiaries, taken as a whole; and (g) maintain the Common Stock as listed and registered on a
national securities exchange or quoted on the automated quotation system of a national securities
association in accordance with General Instruction I.B.3. to Form S-3.

     3.6 Outstanding Agreements. The Company has provided the Stockholders with copies of
all outstanding agreements providing for the demand registration or piggyback registration of
securities issued by the Company.

4. INDEMNIFICATION AND CONTRIBUTION.

     4.1 Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Stockholder and each other holder of Registrable Securities, and each of their respective
officers, employees, affiliates, directors, partners, members, attorneys and agents, and each
person, if any, who controls a Stockholder and each other holder of Registrable Securities (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each, an
“Stockholder Indemnified Party”), from and against any expenses, losses, judgments, claims,
damages or liabilities, whether joint or several, arising out of or based upon any untrue statement
(or allegedly untrue statement) of a material fact contained in any Registration Statement under
which the sale of such Registrable Securities was registered under the Securities Act, any
preliminary prospectus, final prospectus, summary prospectus or Disclosure Package contained in the
Registration Statement, or any amendment or supplement to such Registration Statement or Disclosure
Package, or arising out of or based upon any omission (or alleged omission) to

8

 

state a material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation by the Company of the Securities Act or any rule or
regulation promulgated thereunder applicable to the Company and relating to action or inaction
required of the Company in connection with any such registration; and the Company shall promptly
reimburse the Stockholder Indemnified Party for any legal and any other expenses reasonably
incurred by such Stockholder Indemnified Party in connection with investigating and defending any
such expense, loss, judgment, claim, damage, liability or action; provided, however, that the
Company will not be liable in any such case to the extent that any such expense, loss, claim,
damage or liability arises out of or is based upon any untrue statement or allegedly untrue
statement or omission or alleged omission made in such Registration Statement, preliminary
prospectus, final prospectus, summary prospectus or Disclosure Package, or any such amendment or
supplement, in reliance upon and in conformity with information furnished to the Company, in
writing, by such selling holder expressly for use therein. The Company also shall indemnify any
Underwriter of the Registrable Securities, their officers, affiliates, directors, partners, members
and agents and each person who controls such Underwriter on substantially the same basis as that of
the indemnification provided above in this Section 4.1.

     4.2 Indemnification by Holders of Registrable Securities. Each selling holder of
Registrable Securities will, in the event that any registration is being effected under the
Securities Act pursuant to this Agreement of any Registrable Securities held by such selling
holder, indemnify and hold harmless the Company, each of its directors and officers and each
underwriter (if any), and each other selling holder and each other person, if any, who controls
another selling holder or such underwriter within the meaning of the Securities Act, against any
losses, claims, judgments, damages or liabilities, whether joint or several, insofar as such
losses, claims, judgments, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or allegedly untrue statement of a material fact contained in
any Registration Statement or Disclosure Package under which the sale of such Registrable
Securities was registered under the Securities Act, any preliminary prospectus, final prospectus or
summary prospectus contained in the Registration Statement or Disclosure Package, or any amendment
or supplement to the Registration Statement, or arise out of or are based upon any omission or the
alleged omission to state a material fact required to be stated therein or necessary to make the
statement therein not misleading, if the statement or omission was made in reliance upon and in
conformity with information furnished in writing to the Company by such selling holder expressly
for use therein, and shall reimburse the Company, its directors and officers, and each other
selling holder or controlling person for any legal or other expenses reasonably incurred by any of
them in connection with investigation or defending any such loss, claim, damage, liability or
action. Each selling holder’s indemnification obligations hereunder shall be several and not joint
and shall be limited to the amount of any net proceeds actually received by such selling holder.

     4.3 Conduct of Indemnification Proceedings. Promptly after receipt by any person of
any notice of any loss, claim, damage or liability or any action in respect of which indemnity may
be sought pursuant to Section 4.1 or 4.2, such person (the “Indemnified Party”) shall, if a
claim in respect thereof is to be made against any other person for indemnification hereunder,
notify such other person (the “Indemnifying Party”) in writing of the loss, claim,
judgment, damage, liability or action; provided, however, that the failure by the Indemnified Party
to notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability which
the Indemnifying Party may have to such Indemnified Party hereunder, except and solely to the
extent the Indemnifying Party is actually prejudiced by such failure. If the Indemnified Party is
seeking indemnification with respect to any claim or action brought against the Indemnified Party,
then the Indemnifying Party shall be entitled to participate in such claim or action, and, to the
extent that it wishes, jointly with all other Indemnifying Parties, to assume control of the
defense thereof with counsel satisfactory to the Indemnified Party. After notice from the
Indemnifying Party to the Indemnified Party of its election to assume control of the defense of
such claim or action, the Indemnifying Party shall not be liable to the Indemnified Party for any
legal or other expenses subsequently incurred by the Indemnified Party in connection with the
defense thereof other than reasonable costs of investigation; provided, however, that in any action
in which both the Indemnified Party and the Indemnifying Party are named as defendants, the
Indemnified Party shall have the right to employ separate counsel (but no more than one such
separate counsel) to represent the Indemnified Party and its controlling persons who may be subject
to liability arising out of any claim in respect of which indemnity may be sought by the
Indemnified Party against the Indemnifying Party, with the fees and expenses of such counsel to be
paid by such Indemnifying Party if, based upon the written opinion of counsel of such Indemnified
Party, representation of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, consent to entry of judgment or effect any settlement of any
claim or pending or threatened

9

 

proceeding in respect of which the Indemnified Party is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Party, unless such judgment or
settlement includes an unconditional release of such Indemnified Party from all liability arising
out of such claim or proceeding.

     4.4 Contribution.

     4.4.1 If the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is
unavailable to any Indemnified Party in respect of any loss, claim, damage, liability or action
referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such
loss, claim, damage, liability or action in such proportion as is appropriate to reflect the
relative fault of the Indemnified Parties and the Indemnifying Parties in connection with the
actions or omissions which resulted in such loss, claim, damage, liability or action, as well as
any other relevant equitable considerations. The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by such Indemnified Party or such Indemnifying Party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

     4.4.2 The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 4.4 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the
immediately preceding Section.

     4.4.3 The amount paid or payable by an Indemnified Party as a result of any loss, claim,
damage, liability or action referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses incurred by such
Indemnified Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 4.4, no holder of Registrable Securities shall be
required to contribute any amount in excess of the dollar amount of the net proceeds (after payment
of any underwriting fees, discounts, commissions or taxes) actually received by such holder from
the sale of Registrable Securities which gave rise to such contribution obligation. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

5. UNDERWRITING AND DISTRIBUTION.

     5.1 Rule 144. The Company covenants that it shall file any reports required to be
filed by it under the Securities Act and the Exchange Act and shall take such further action as the
holders of Registrable Securities may reasonably request, all to the extent required from time to
time to enable such holders to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities
Act, as such Rule may be amended from time to time, or any similar Rule or regulation hereafter
adopted by the Commission.

6. MISCELLANEOUS.

     6.1 Assignment; No Third Party Beneficiaries. This Agreement and the rights, duties
and obligations of the Company hereunder may not be assigned or delegated by the Company in whole
or in part. This Agreement and the rights, duties and obligations of the holders of Registrable
Securities hereunder may be freely assigned or delegated by such holder of Registrable Securities
in conjunction with and to the extent of any transfer of Registrable Securities by any such holder.
This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of
each of the parties and their respective successors, and the permitted assigns of the Stockholder
or holder of Registrable Securities or of any assignee of the Stockholder or holder of Registrable
Securities. The Company acknowledges that the Registerable Securities may be held from time to time
by an escrow agent pursuant to the Escrow Agreement and specifically consents to the exercise of
the rights of the Stockholders under this Agreement in the manner described in the Escrow
Agreement. This Agreement is not intended to confer any rights or benefits on any persons that are
not party hereto other than as expressly set forth in Article 4 and this Section 6.1.

10

 

     6.2 Notices. All notices, demands, requests, consents, approvals or other
communications (collectively, “Notices”) required or permitted to be given hereunder or
which are given with respect to this Agreement shall be in writing and shall be personally served,
delivered by reputable air courier service with charges prepaid, or transmitted by hand delivery,
telegram, telex or facsimile, addressed as set forth below, or to such other address as such party
shall have specified most recently by written notice. Notice shall be deemed given on the date of
service or transmission if personally served or transmitted by telegram, telex or facsimile;
provided, that if such service or transmission is not on a business day or is after normal business
hours, then such notice shall be deemed given on the next business day. Notice otherwise sent as
provided herein shall be deemed given on the next business day following timely delivery of such
notice to a reputable air courier service with an order for next-day delivery.

To the Company:

JK Acquisition Corp.

5847 San Felipe, Suite 4350

Houston, Texas 77057

Attn: President

with a copy to:

Patton Boggs LLP

2001 Ross Avenue, Suite 3000

Dallas, Texas 75201

Attn: Fred S. Stovall, Esq.

To a Stockholder, to:

The address of such Stockholder as set forth on the signature pages hereto

with a copy to:

Catalyst/Hall
Growth Capital Management Co., LLC

2 Riverway, Suite 1710

Houston, Texas 77056

Facsimile No.: (713) 623-0473

Attention: Ron Nixon and Rick Herrman

     6.3 Severability. This Agreement shall be deemed severable, and the invalidity or
unenforceability of any term or provision hereof shall not affect the validity or enforceability of
this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may
be possible that is valid and enforceable.

     6.4 Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which taken together shall constitute one and the
same instrument.

     6.5 Entire Agreement. This Agreement (including all agreements entered into pursuant
hereto and all certificates and instruments delivered pursuant hereto and thereto) constitute the
entire agreement of the parties with respect to the subject matter hereof and supersede all prior
and contemporaneous agreements, representations, understandings, negotiations and discussions
between the parties, whether oral or written.

     6.6 Modifications and Amendments. No amendment, modification or termination of this
Agreement shall be binding upon any party unless executed in writing by such party.

     6.7 Titles and Headings. Titles and headings of sections of this Agreement are for
convenience only and shall not affect the construction of any provision of this Agreement.

11

 

     6.8 Waivers and Extensions. Any party to this Agreement may waive any right, breach or
default which such party has the right to waive, provided that such waiver will not be effective
against the waiving party unless it is in writing, is signed by such party, and specifically refers
to this Agreement. Waivers may be made in advance or after the right waived has arisen or the
breach or default waived has occurred. Any waiver may be conditional. No waiver of any breach of
any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding
breach thereof or of any other agreement or provision herein contained. No waiver or extension of
time for performance of any obligations or acts shall be deemed a waiver or extension of the time
for performance of any other obligations or acts.

     6.9 Remedies Cumulative. In the event that the Company fails to observe or perform any
covenant or agreement to be observed or performed under this Agreement, the Stockholder or any
other holder of Registrable Securities may proceed to protect and enforce its rights by suit in
equity or action at law, whether for specific performance of any term contained in this Agreement
or for an injunction against the breach of any such term or in aid of the exercise of any power
granted in this Agreement or to enforce any other legal or equitable right, or to take any one or
more of such actions, without being required to post a bond. None of the rights, powers or remedies
conferred under this Agreement shall be mutually exclusive, and each such right, power or remedy
shall be cumulative and in addition to any other right, power or remedy, whether conferred by this
Agreement or now or hereafter available at law, in equity, by statute or otherwise.

     6.10 Governing Law. This Agreement shall be governed by, interpreted under, and
construed in accordance with the internal laws of the State of New York applicable to agreements
made and to be performed within the State of New York, without giving effect to any choice-of-law
provisions thereof that would compel the application of the substantive laws of any other
jurisdiction.

     6.11 Waiver of Trial by Jury. Each party hereby irrevocably and unconditionally waives
the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether based
on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the
transactions contemplated hereby, or the actions of the Stockholders in the negotiation,
administration, performance or enforcement hereof.

[Remainder of this page intentionally left blank; signature pages follows.]

12

 

     IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be executed
and delivered by their duly authorized representatives as of the date first written above.

	 	 	 	 	 
	 

	 	JK ACQUISITION CORP.	 	 
	 
	 	 	 	 
	 

	 	 

By: Keith D. Spickelmier, President
	 	 
	 
	 	 	 	 
	 

	 	CATALYST/HALL GROWTH CAPITAL
MANAGEMENT CO., LLC (as the Members’ Representative)	 	 
	 
	 	 	 	 
	 

	 	 

By: Rick Herrman, President
	 	 
	 
	 	 	 	 
	 

	 	STOCKHOLDERS:	 	 

	 	 	 	 	 	 	 
	 	 	CATALYST/HALL GROWTH CAPITAL, LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Catalyst/Hall Growth
Capital Management Co., LLC

Its sole general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Rick Herrman
	 

	 	 	 	 	 	 
	 

	 	 	 	Title
	 	President
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	CATALYST/HALL PRIVATE EQUITY, LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Catalyst/Hall Private Equity Management

Company, LLC

Its sole general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Rick Herrman
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	President
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	CATALYST CAPITAL PARTNERS I, LTD.
	 
	 	 	 	 	 	 
	 	 	By:	 	The Catalyst Group, Inc.

Its sole general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Rick Herrman
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Vice President
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	CATALYST CAPITAL PARTNERS II, LTD.
	 
	 	 	 	 	 	 
	 	 	By:	 	The Catalyst Group, II, Inc.

Its sole general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Rick Herrman
	 

	 	 	 	 	 	 
	 

	 	 	 	Title
	 	Vice President
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	CRF AIR, LLC
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Jay C. Jimerson
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Manager
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	ROBERT P. VILYUS
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	ALLEN NEEL
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	DAVID CUDD
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 	PAUL CULBRETH

 

Registration
Rights Agreement – Signature Pagesexv10w1

 

EXHIBIT 10.1

			
	 	 	 
	
	 	Swift & Company
	 
	 	1770 Promontory Circle
	 
	 	Greeley, Colorado 80634

SEPARATION AGREEMENT AND RELEASE

     This Separation Agreement and Release (“Agreement”) is made and entered into by and
between Swift & Company, a Delaware corporation (“Company”), and Marshall Ernst
(“Executive”) and, solely for the purposes of Sections 3(c) and 4, Swift Foods Company, a
Delaware Corporation (“Swift”).

     1. Termination. Executive’s employment with Company terminated due to his resignation
effective May 26, 2006 (the “Termination Date”), through which date Executive received his
regular salary. Executive will also receive payment for his accrued but unused twelve days of
vacation in the amount of $17,769.24 (less applicable withholding and other deductions). Executive
will also be paid for any reimbursable business expenses incurred through the Termination Date and,
by signing this Agreement, acknowledges that he has been so reimbursed. Executive will receive
notice of Executive’s right to elect continued medical, dental, and vision coverage under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). Executive may also
choose to convert his group life and disability insurance coverages to individual policies, in
accordance with the terms of those group insurance programs. Executive understands and agrees that
he is not to sign this Agreement prior to the Termination Date.

     2. Definitions.

               (a) “Claims” means all theories of recovery of whatever nature, whether known or
unknown, and now recognized by the law or equity of any jurisdiction. This term includes causes of
action, charges, indebtedness, losses, claims, liabilities, and demands, whether arising in equity
or under the common law or under any contract or statute. This term includes any claims of
discrimination, harassment, retaliation, retaliatory discharge, or wrongful discharge, and any
other claim which is alleged or which could be alleged by Executive, or on Executive’s behalf, in
any lawsuit or other proceeding. This term includes any claims and rights arising under the Age
Discrimination in Employment Act of 1967, 29 U.S.C. §621, et seq.; Title VII of the Civil Rights
Act of 1964, 42 U.S.C. §2000e, et seq.; the Executive Retirement Income Security Act of 1974, 29
U.S.C. §1001, et seq.; and the Americans with Disabilities Act, 42 U.S.C. §12101, et seq.; the
Worker Adjustment and Retraining Notification Act, 29 U.S.C. §2101, et seq.; the Family and Medical
Leave Act, 29 U.S.C. §2601, et seq.; and any other federal, state or local law or regulation
regarding employment or the termination of employment. This term includes any and all rights,
benefits or claims Executive may have under any employment contract or arrangement or under any
severance, bonus, or incentive compensation plan, program or agreement.

               (b) “Damages” means all elements of relief or recovery of whatever nature, whether
known or unknown, which are recognized by the law or equity of any jurisdiction which

 

 

is sought or which could be sought by Executive, or on Executive’s behalf, in any lawsuit or
other proceeding. This term includes actual, incidental, indirect, consequential, compensatory,
exemplary, liquidated and punitive damages; rescission; attorneys’ fees; interest; costs; equitable
relief; and expenses. This term also includes wages, benefits or other compensation owed, or
allegedly owed to Executive, by virtue of Executive’s employment or termination of employment with
Company, including severance, bonuses, or incentive compensation, payable pursuant to any plan,
program, or agreement.

               (c) “Executive” means and includes Executive acting individually; in any corporate or
other representative capacity; and on behalf of Executive’s heirs, executors, administrators, legal
representatives, successors, beneficiaries, and assigns.

               (d) “Released Parties” means and includes Company, and its past, present and future
owners, trustees, parents, subsidiaries, affiliates, and related entities, and all of the foregoing
entities’ and persons’ past, present and future directors, managers, officers, employees,
associates, agents, lenders, shareholders, partners, benefit plans (and each such plan’s
fiduciaries, administrators, trustees, sponsors and representatives), insurance carriers,
predecessors, shareholders, successors, assigns, executors, administrators, and representatives, in
both their representative and individual capacities. Each of the Released Parties is an intended
beneficiary of this Agreement.

     3. Consideration. In consideration for Executive’s promises herein, Company shall:

               (a) Pay Executive a severance benefit in the gross aggregate amount of $787,500 ($43,750 per
month for an 18-month period) (less applicable withholding and deductions), in substantially equal
and consecutive bi-weekly payments beginning within ten (10) days of Executive’s execution and
return of this Agreement; provided that the initial such payment shall be $133,269.18 and shall
cover the period from the Termination Date until August 25, 2006 (as defined in Section 21).
During the eighteen (18) month period covered by these payments and as further consideration for
these payments, Executive agrees to make himself available to, and cooperate with, the Company
regarding Company matters of which Executive has knowledge, as reasonably requested by Company.
Executive further agrees that, for purposes of determining Executive’s eligibility for unemployment
insurance benefits, these payments shall be considered pay in lieu of notice. No deductions will
be made from these payments for the purpose of making any contributions to Company’s 401(k) plan.
Upon the death or disability of Executive during the eighteen month period, the obligations of
Executive to make himself available to, and to cooperate with, the Company as set forth in this
Section shall terminate; provided, however that such a termination shall not affect the duties and
obligations set forth in the other sections of this Agreement or the obligation of the Company to
make the payments set forth in this Section to Executive, his legal representatives, heirs, or
successors, as applicable.

               (b) Pay the employer’s portion of the monthly premium cost of continued medical, dental, and
vision insurance coverage for Executive and, if applicable, Executive’s dependents under Company’s
group medical, dental, and vision plan from the Termination Date through November 25, 2007 (or such
earlier time that Executive obtains alternate coverage) to the extent Executive elects to continue
this coverage in accordance with COBRA. Executive acknowledges that he is required to pay
Executive’s portion for such continued COBRA

 Page 2 of 10

 

coverage. By “employer’s portion,” it is meant that portion of each monthly premium equal to
the amount of the monthly premium paid by Company at the time immediately preceding the Termination
Date. By “Executive’s portion,” it is meant the remaining portion necessary for continued COBRA
coverage, including any administrative charge. If Executive elects such COBRA coverage, the period
during which Company pays the employer’s portion of the premium costs will count towards the
maximum period of COBRA coverage.

               (c) On the day following the Reaffirmation Date (assuming no revocation of this Agreement by
Executive), all of Executive’s stock options, consisting of options to purchase 1,000,000 shares of
Swift’s stock, issued under the option agreements and the plans pursuant to which such options were
issued that are not then vested shall be vested in full. Executive shall be permitted to exercise,
in accordance with the terms of the options, any and all such rights until the earlier of (i) the
date the option would otherwise expire in accordance with its terms, (ii) the 270th day after a
Qualifying Public Offering (as defined therein) or (iii) the 90th day after the completion of a
merger, combination, share exchange or similar transaction involving Swift pursuant to which the
securities for which the option is then exercisable are listed on a national securities exchange or
the Nasdaq National Market System or any successor thereto. Swift hereby waives any rights to
purchase any such stock options and any shares of common stock of Swift issued upon the exercise of
any such stock options, pursuant to the terms of any such stock options or the Stockholders
Agreement (as defined in Section 4).

The consideration set forth in this Section 3 is collectively referred to as “Consideration.”

     4. Purchase of Stock. Pursuant to Section 4.5 of that certain Stockholders Agreement
dated as of September 19, 2002 among HMTF Rawhide, L.P., ConAgra Foods, Inc., Hicks, Muse, Tate &
Furst Incorporated, Swift and the other individuals named therein, as amended (the
“Stockholders Agreement”), and in connection with Executive’s termination of employment,
Swift shall purchase from Executive, and Executive shall transfer and sell to Swift, free and clear
of all encumbrances, no later than the close of business on September 6, 2006, 247,433 shares of
common stock of Swift owned by Executive for cash consideration of $249,907.33. Executive shall,
in exchange for such consideration, deliver to Swift at the closing of such sale stock certificates
representing such shares, with such certificates being duly endorsed (or accompanied by duly
executed stock powers) and otherwise in good form for delivery. Upon the closing of such purchase
and sale, Executive shall have no further rights with respect to such shares. The terms of this
Section 4 shall constitute the notice of purchase required under the Stockholders Agreement.

     5. Release.

               (a) Executive releases and discharges the Released Parties from, and hereby waives, all Claims
and Damages, including those related to, arising from or attributable to (i) Executive’s employment
with Company, (ii) the termination of that employment, (iii) the operations of the Company and its
subsidiaries, and (iv) all other acts or omissions related to any matter regarding, involving or
related to the Company or its subsidiaries at any time prior to and including the date of
Executive’s execution of this Agreement; except that this release will not affect Executive’s
entitlement to benefits (1) under this Agreement, (2) pursuant to the terms of Company’s benefit
plans (other than severance or separation pay plans) governed by the

 Page 3 of 10

 

Executive Retirement Income Security Act of 1974 (“ERISA”), or (3) with respect to
Executive’s stock options.

               (b) Executive understands and expressly agrees that the release in Section 5(a) extends to all
Claims of every nature and kind, known or unknown, suspected or unsuspected, past or present (but
not future), which Claims are arising from, attributable to, or related to Executive’s employment
with Company, the termination of Executive’s employment, or any alleged action or inaction of the
Released Parties, and that all such Claims are hereby expressly settled or waived. Executive
further understands and expressly agrees that the release in Section 5(a) includes the waiver of
any Claims and rights Executive may have against any of the Released Parties under the Age
Discrimination in Employment Act, the Older Workers Benefit Protection Act, or under any other law
prohibiting age discrimination, arising prior to and including the date of Executive’s execution of
this Agreement.

               (c) Executive agrees not to bring or cause to be brought any Claims against any of the
Released Parties in any court or before any arbitral authority, or accept any Damages for any
Claims against any of the Released Parties, which Claims are related to, arising from or attributed
to Executive’s employment with Company, the termination of that employment, and any other matter
covered by the release in Section 5(a). Executive represents and warrants that Executive has not
brought or caused to be brought any such Claims, or accepted any such Damages for any such Claims,
against any of the Released Parties.

               (d) Notwithstanding anything else contained herein to the contrary, the parties agree and
acknowledge that this Section 5, including the release contained in Section 5(a) shall not act as a
release or otherwise affect any Claim Executive may have against any of Executive’s employers prior
to the Company or Swift.

     6. Confidential Information.

               (a) Executive acknowledges that (i) Company has trade, business and financial secrets and
other confidential and proprietary information (collectively, the “Confidential
Information”), (ii) the Confidential Information has been developed or acquired by Company
through the expenditure of substantial time, effort and money and provides Company with an
advantage over competitors who do not know or use such Confidential Information, and (iii) during
Executive’s employment by Company, Executive has had access to and has become acquainted with
Confidential Information of Company. Confidential Information includes marketing plans, Company’s
commodity marketing position, grain trades and strategy, budgets, long-range plans, sales data,
technical information, processes and compilations of information, records, specifications and
information concerning customers or vendors, manuals relating to suppliers’ products, customer
lists, information regarding methods of doing business, the identity of suppliers, and personnel
information. Confidential Information also includes this Agreement and its terms. Confidential
Information does not include information, knowledge, and data that is publicly available or becomes
publicly available other than through an act or omission of Executive, or becomes available on a
non-confidential basis from a source other than Executive so long as such source is not known by
Executive to be bound by a confidentiality agreement with or other obligations of secrecy to the
other party.

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               (b) Executive shall hold in confidence and not directly or indirectly disclose or use or copy
or make lists of any Confidential Information, except to the extent authorized in writing by the
General Counsel of Company or compelled by legal process, and except that Executive may disclose
this Agreement to Executive’s spouse, attorneys, and financial advisors, upon their agreement not
to disclose this Agreement or its terms to any third party. Executive agrees to use reasonable
efforts to give Company notice of any and all attempts to compel disclosure of any Confidential
Information, in such a manner so as to provide Company’s General Counsel with written notice within
one (1) business day after Executive is informed that such disclosure will be compelled. Such
written notice shall include a description of the information to be disclosed, the court,
government agency, or other forum through which the disclosure is sought, and the date by which the
information is to be disclosed, and shall contain a copy of the subpoena, order or other process
used to compel disclosure.

               (c) Executive agrees that, on or before the Termination Date, Executive shall have assembled
and delivered to Company each and every original and copy of any and all documents, compilations,
recordings, and any other form of written, printed, recorded, typed and every other matter, thing
or material of any kind which Executive has in Executive’s possession, custody or control that is
or was the property of Company or relates in any way to the business of Company.

     7. Agreement Not to Compete or Solicit.

               (a) In consideration of the benefits to be received by Executive hereunder, including the
Consideration, Executive agrees not to directly or indirectly, individually or as an officer,
director, employee, shareholder, consultant, contractor, partner, joint venturer, agent, equity
owner or in any capacity whatsoever, engage in the fresh meat (beef, pork and lamb) business (the
“Competing Business”), of any of Tyson Foods, Inc., Cargill Incorporated, National Beef Packing
Company, LLC or Smithfield Foods, Inc., or any of their respective subsidiaries, affiliates,
successors or assigns, during the period beginning on the Termination Date and ending on November
25, 2007. Notwithstanding the foregoing, the Company agrees that Executive may own less than two
percent of the outstanding voting securities of any of the foregoing entities so long as the
Executive does not otherwise participate in such Competing Business in any way prohibited by this
Section 7(a).

               (b) In further exchange for the Consideration, Executive agrees that for a period of eighteen
(18) months following the Termination Date, Executive will not, directly or indirectly for
Executive or for others, in any geographic area or market where Company is conducting any business
as of the Termination Date or has during the previous twelve (12) months conducted any business:
recruit, solicit or induce or attempt to recruit, solicit or induce any employee of Company to
terminate his or her employment with Company, or hire or assist in the hiring of any such employee
by a person, association, or entity not affiliated with Company.

               (c) Executive acknowledges and agrees that the covenants contained in this Section 7 are
reasonable and necessary to protect Company’s Confidential Information and the business and
goodwill of Company and that their enforcement would not cause Executive any undue hardship or
unreasonably interfere with Executive’s ability to earn a livelihood.

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     8. Injunctive Relief.

               (a) Executive acknowledges that violation of the covenants in Sections 6 or 7 will cause
irreparable damage to Company, entitling Company to an injunction in a court of competent
jurisdiction, in addition to whatever remedies Company may have at law or in equity, including
recovery of reasonable attorneys’ fees and costs incurred by Company in enforcing the terms of
Sections 6 or 7.

               (b) Executive further acknowledges and agrees that if Executive violates the covenants
contained in Section 7 and Company brings legal action for injunctive or other equitable relief,
Executive agrees that Company shall not be deprived of the benefit of the full period of such
covenants, as a result of the time involved in obtaining such relief. Accordingly, Executive
agrees that the provisions in Section 7 shall have a duration determined pursuant to that
paragraph, computed from the date the relief is granted. Nothing herein is intended to limit the
relief available to Company for Executive’s violation of the covenants contained in Section 7.

               (c) As used in Sections 6, 7 or 8, “Company” shall include any affiliates of the Company.

     9. Cooperation in Litigation. Executive agrees that Executive shall cooperate with, and
assist, Company in defense of any claim, litigation or administrative proceeding brought against
Company or any other Released Party, as reasonably requested by Company. Such cooperation and
assistance shall include (i) interviews of Executive by legal counsel for Company or other Released
Party as reasonably requested by Company’s counsel, (ii) Executive providing documents (or copies
thereof) and executing affidavits as reasonably requested by Company’s counsel, (iii) Executive
appearing for depositions, trials, and other proceedings as reasonably requested by Company’s
counsel, and (iv) Executive communicating with any party adverse to Company, or with a
representative, agent or legal counsel for any such party, concerning any pending or future claims
or litigation or administrative proceeding solely through legal counsel for Company. Nothing in
this Section 9 is intended to cause Executive to testify other than truthfully in any proceeding or
affidavit. The Company shall reimburse Executive for reasonable out-of-pocket expenses that he
incurs in connection with cooperation and assistance he provides under the terms of this Section.

     10. Promise Not to Seek Employment. In further exchange for the Consideration, Executive
agrees never to seek employment (as an employee, temporary employee or contractor) with the Company
or its subsidiaries and affiliates.

     11. Non-Disparagement. Executive agrees to refrain from engaging in any conduct, or from
making any comments or statements, which have the purpose or effect of harming the reputation or
good will of Company or any of the Released Parties.

     12. Warranties. Executive agrees, represents and warrants that:

               (a) the Consideration is not something to which Executive is otherwise indisputably entitled,
is good and sufficient consideration for Executive’s execution and

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nonrevocation of this Agreement, and is paid by or on behalf of the Released Parties in full
satisfaction and settlement of any Claims and Damages;

               (b) Executive is legally and mentally competent to sign this Agreement;

               (c) Executive is the sole owner of any Claims that have been or could have been asserted,
Executive has the requisite capacity and authority to make this Agreement, and no portion of any
existing or potential Claims has been sold, assigned, pledged or hypothecated by Executive to any
third party; and

               (d) Executive presently possesses the exclusive right to receive all of the Consideration paid
in consideration for this Agreement.

     13. Choice of Law. This Agreement shall be interpreted and construed in accordance with
and shall be governed by the laws of the State of Colorado, without reference to principles of
conflict of law of Colorado or any other jurisdiction, and, when applicable, the laws of the United
States.

     14. Entire Agreement. This Agreement constitutes the entire agreement of the parties
relating to the subject matter hereof. Any previous agreements with respect to Executive’s
employment, other than the agreements and plans governing the stock options previously granted to
the Executive, are superseded by this Agreement and hereby terminated, except that Executive’s
obligations under any confidentiality, non-disclosure, intellectual property or noncompetition
agreement which Executive entered into with Company shall remain in full force and effect. No
term, provision or condition of this Agreement may be modified in any respect except by a writing
executed by both Executive and Company. No person has any authority to make any representation or
promise on behalf of any of the parties not set forth in this Agreement. This Agreement has not
been executed in reliance upon any representation or promise except those contained herein.

     15. Acknowledgment of Terms. Executive acknowledges that Executive has carefully read this
Agreement; that Executive has had the opportunity for review of it by Executive’s attorney; that
Executive fully understands its final and binding effect; that Company admits to no wrongdoing in
connection with Executive’s employment, the termination of Executive’s employment, or any other
matter covered by the release in Section 5(a); that this Agreement is intended as a compromise of
all Claims which Executive has alleged or may allege against any of the Released Parties; that the
only promises or representations made to Executive to sign this Agreement are those stated herein;
and that Executive is signing this Agreement voluntarily.

     16. Waiver. The failure of Company to enforce or to require timely compliance with any
term or provision of this Agreement shall not be deemed to be a waiver or relinquishment of rights
or obligations arising hereunder, nor shall this failure preclude the enforcement of any term or
provision or avoid the liability for any breach of this Agreement.

     17. Severability. Each part, term or provision of this Agreement is severable from the
others. Notwithstanding any possible future finding by a duly constituted authority that a
particular part, term or provision is invalid, void or unenforceable, this Agreement has been made
with the clear intention that the validity and enforceability of the remaining parts, terms

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and provisions shall not be affected thereby; provided that if the release is invalidated,
Executive shall execute a valid release or this entire Agreement shall be voidable, at the option
of Company, thereby requiring Executive to return the Consideration, to the extent permitted under
applicable law.

     18. Costs and Attorneys’ Fees. If any action is initiated to enforce this Agreement, the
prevailing party shall be entitled to recover from the other party its reasonable costs and
attorneys’ fees.

     19. Technology Equipment. Executive shall be entitled to retain the cellular
telephone and blackberry device previously issued to him by the Company; provided that all charges
with respect to such equipment (e.g., monthly service charges) shall be the sole responsibility of
Executive after the Termination Date.

     20. Construction. This Agreement shall be deemed drafted equally by all the parties. Its
language shall be construed as a whole and according to its fair meaning. Any presumption or
principle that the language is to be construed against any party shall not apply. The headings in
this Agreement are only for convenience and are not intended to affect construction or
interpretation. This Agreement represents a compromise of disputed Claims and is not to be
construed as an admission, direct or indirect, against any interest of the parties. Any references
to paragraphs, subparagraphs, or sections are to those parts of this Agreement, unless the context
clearly indicates to the contrary. Also unless the context clearly indicates to the contrary, (a)
the plural includes the singular and the singular includes the plural; (b) “and” and “or” are each
used both conjunctively and disjunctively; (c) “any,” “all,” “each,” or “every” means “any and all,
and each and every”; (d) “includes” and “including” are each “without limitation;” and (e)
“herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire
Agreement and not to any particular paragraph, subparagraph, section or subsection.

     21. Timing. Executive acknowledges (a) Executive has 21 days to consider this Agreement
before executing it, although Executive may execute this Agreement before the 21 days expires, but
not before the Termination Date, (b) Executive may revoke this Agreement within 7 days after
Executive executes it, (c) such revocation must be in writing and received by Company’s Vice
President of Human Resources, Jack Shandley, within this 7-day period, (d) the release set forth in
Section 4 shall not become effective or enforceable, the consideration set forth in Section 3 shall
not be paid, and the vesting of options pursuant to Section 3(c) hereof shall not occur, until
after the expiration of this 7-day period without revocation by Executive (the last day of such
7-day period being referred to herein as the “Reaffirmation Date”), and Executive returns
this Agreement to Company’s Vice President of Human Resources, Jack Shandley, (e) Company may
require, as a prerequisite for payment of the Consideration, Executive to acknowledge in a signed
and dated writing that Executive did not revoke this Agreement during the 7-day period, and (f)
Executive’s acceptance of any of the Consideration after expiration of the 7-day period shall
constitute Executive’s acknowledgment that Executive did not revoke this Agreement during the 7-day
period.

     22. Advice to Consult Counsel. Company hereby advises Executive to consult with an
attorney prior to executing this Agreement.

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     23. Successors. This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive otherwise than by will or
the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s legal representatives, heirs, and successors and shall be binding
upon and enforceable against the Company and its successors and assigns.

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     In witness whereof, the undersigned have executed this Agreement as of September 5, 2006, to
be effective as of the Termination Date, and intending to be legally bound as provided herein.

DO NOT SIGN BEFORE YOUR LAST DAY OF EMPLOYMENT

WITH SWIFT & COMPANY

	 	 	 	 	 
	 

	 	EXECUTIVE	 	 
	 
	 	 	 	 
	 

	 	/s/ Marshall Ernst	 	 
	 

	 	 

Marshall Ernst
	 	 
	 
	 	 	 	 
	 

	 	SWIFT & COMPANY	 	 
	 
	 	 	 	 
	 

	 	/s/ John W. Shandley	 	 
	 

	 	 

John W. Shandley

Vice President, Human Resources
	 	 
	 
	 	 	 	 
	 

	 	Solely for the purposes of Section 3(c)

and Section 4:	 	 
	 
	 	 	 	 
	 

	 	SWIFT FOODS COMPANY	 	 
	 
	 	 	 	 
	 

	 	/s/ John W. Shandley	 	 
	 

	 	 

John W. Shandley

Vice President, Human Resources
	 	 

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