Document:

Exhibit 10.1 

AMENDMENT AND
RESTATEMENT
TO
CREDIT
AGREEMENT

     AMENDMENT
AND RESTATEMENT TO CREDIT AGREEMENT, dated as
of August 7, 2013 (this “Agreement”), among PILGRIM’S PRIDE
CORPORATION, a Delaware corporation,
TO-RICOS, LTD., a Bermuda company, and TO-RICOS
DISTRIBUTION, LTD., a Bermuda company
(collectively, the “Borrowers”), the various financial institutions that are parties hereto
(collectively, the “Lenders”), and COBANK,
ACB (“CoBank”), as agent (in such capacity, the “Administrative Agent”) for the
Lenders.

W I T N E S S E T H: 

    
WHEREAS, the Borrowers,
certain financial institutions and the Administrative Agent are parties to the
Credit Agreement, dated as of December 28, 2009 (as amended, the
“Existing Credit Agreement”), and the other Loan Documents (such capitalized term and all other
capitalized terms used herein without being defined shall have the meanings
provided for in Article I); 

    
WHEREAS, pursuant to
Section 2.10 of the Existing Credit Agreement, the Borrowers desire, as of the
Effective Time, to exercise their rights to obtain Incremental Term B Loan
Commitments in the aggregate principal amount equal to $400,000,000; 

    
WHEREAS, the Borrowers
have requested that, as of the Effective Time, the Existing Credit Agreement be
amended as provided in Section
2.3 and amended and restated in its entirety
as provided in Article III; and 

    
WHEREAS, the Subject
Lenders and the Required Lenders, as applicable, are willing, subject to the
terms and conditions hereinafter set forth, to amend the Existing Credit
Agreement and amend and restate the Existing Credit Agreement in its entirety,
as the case may be; 

    
NOW, THEREFORE, in
consideration of the agreements herein contained, the parties hereto hereby
agree as follows: 

ARTICLE I 

DEFINITIONS 

    
SECTION 1.1 Certain Definitions.
The following terms (whether or not underscored) when used in this Agreement
shall have the following meanings: 

    
“Administrative Agent” is defined in the preamble. 

    
“Agreement” is defined in the preamble. 

    
“Amended and Restated Credit
Agreement” means the Existing Credit
Agreement as amended and restated pursuant to Article III of this Agreement as of
the Effective Time.

     “A&R Letters of
Credit” means “Letters of Credit as defined
in the Amended and Restated Credit Agreement.

    
“A&R Revolving
Loans” means “Revolving Loans” as defined in
the Amended and Restated Credit Agreement. 

    
“A&R Swingline
Loans” means “Swingline Loans” as defined in
the Amended and Restated Credit Agreement.

    
“A&R Term B-1 Loans” means “Term B-1 Loans” as defined in the Amended and
Restated Credit Agreement. 

    
“Borrowers” is defined in the preamble. 

    
“Delayed Draw Term
Lenders” means those Subject Lenders with a
“Delayed Draw Term Loan Commitment” as set forth on Exhibit B hereto. 

    
“Delayed Draw Term
Loans” means “Delayed Draw Term Loans” as
defined in the Amended and Restated Credit Agreement.

    
“Effective Time” is defined in Section
5.1. 

    
“Effective Time Applicable
Percentages” means the Applicable Percentage
of each Subject Lender as of the Effective Time as set forth on Exhibit B
hereto.

    
“Existing Credit
Agreement” is defined in the first recital. 

    
“Existing Letters of
Credit” means the letters of credit
outstanding under the Existing Credit Agreement immediately prior to the
Effective Time. 

    
“Existing Loans” means, collectively, the Existing Revolving Loans and the
Existing Term B-1 Loans. 

    
“Existing Revolving
Loans” means the Revolving Loans that are
outstanding under the Existing Credit Agreement immediately prior to the
Effective Time. 

    
“Existing Term B-1
Loans” means Term B-1 Loans that are
outstanding under the Existing Credit Agreement immediately prior to the
Effective Time. 

    
“Existing Subject
Lender” means each Subject Lender that is a
party to the Existing Credit Agreement immediately prior to the Effective Time.

    
“Existing Swingline
Loans” means the Swingline Loans that are
outstanding under the Existing Credit Agreement immediately prior to the
Effective Time. 

    
“Lenders” is defined in the preamble.

2

     “Required Lender
Amendments” means all those amendments to the
Existing Credit Agreement as set forth in Section 2.3 and the Amended and
Restated Credit Agreement, other than the Subject Lender Amendments.

    
“Subject Lender
Amendments” means (a) with respect to the
Revolving Lenders, those amendments set forth in the Amended and Restated Credit
Agreement relating to the Revolving Credit Commitment or Revolving Loans
referred to in the defined terms “Applicable Rate” and “Maturity Date”; (b) with
respect to the Term B-1 Lenders, those amendments set forth in the Amended and
Restated Credit Agreement relating to the Term B-1 Loans referred to in the
defined term “Applicable Rate”; and (c) with respect to the Delayed Draw Term
Lenders, those amendments set forth in the Amended and Restated Credit Agreement
relating solely to the Delayed Draw Term Loans or Delayed Draw Term Loan
Commitment referred to therein.

    
“Subject Lenders” means, collectively, the Revolving Lenders, the Term B-1
Lenders and the Delayed Draw Term Lenders.

    
SECTION 1.2 Other Definitions.
Unless otherwise defined or the context otherwise requires, terms used herein
(including in the preamble and recitals hereto) have the meanings provided for
in the Existing Credit Agreement. 

ARTICLE II 

INCREMENTAL TERM B COMMITMENTS,
ETC. 

    
SECTION 2.1 Exercise of Commitment Increase. Effective on (and subject to the occurrence of) the
Effective Time, the Borrowers hereby irrevocably exercise their right, pursuant
to Section 2.10(b)(ii) of the Existing Credit Agreement, to obtain Incremental
Term B Commitments in the aggregate principal amount of $400,000,000.

    
SECTION 2.2 Incremental Term B Commitments. Effective on (and subject to the occurrence of) the
Effective Time, each Delayed Draw Term Lender agrees to make Term B Loans to the
Borrowers in an amount equal to its Effective Time Applicable Percentage under
the caption “Delayed Draw Term Loan Commitment” of $400,000,000, which Term B
Loans shall be made pursuant to the provisions relating to the Delayed Draw Term
Loans and the Delayed Draw Term Loan Commitment (as each such term is both
defined and set forth in the Amended and Restated Credit Agreement). 

    
SECTION 2.3 Amendment to Existing Credit Agreement. Effective on (and subject to the occurrence of) the
Effective Time, the Required Lenders delete Section 2.10(i) of the Existing
Credit Agreement.

3

ARTICLE III 

AMENDMENT AND
RESTATEMENT 

     Effective on
(and subject to the occurrence of) the Effective Time, the Existing Credit
Agreement is amended and restated in its entirety as set forth in
Exhibit A
attached hereto. 

ARTICLE IV 

REPRESENTATIONS AND
WARRANTIES 

    
As a condition to the occurrence of the Effective Time, each of the
Borrowers hereby (a) represents and warrants that (i) each of the
representations and warranties of the Loan Parties contained in the Existing
Credit Agreement and in the other Loan Documents (immediately after giving
effect to the transactions contemplated to occur on the Effective Time), the
Amended and Restated Credit Agreement and in the other Loan Documents (as
defined in the Amended and Restated Credit Agreement) (as of the Effective Time)
is true and correct in all material respects (provided that if any such
representation and warranty relates solely to an earlier date, such
representation and warranty shall be true and correct in all material respects
as of such earlier date, and if any such representation and warranty is already
qualified by a materiality standard, it shall be true and correct in all
respects) and (ii) no Default or Event of Default has occurred and is continuing
under either the Existing Credit Agreement (immediately prior to the Effective
Time) or under and as defined in the Amended and Restated Credit Agreement
(immediately after giving effect to the transactions contemplated to occur on
the Effective Time); and (b) agrees that the incorrectness of any representation
and warranty contained in the preceding clause
(a) shall constitute an immediate Event of
Default, both under the Existing Credit Agreement and under and as defined in
the Amended and Restated Credit Agreement. Without limiting the foregoing, as of
the Effective Time each of the Borrowers hereby (i) ratifies and confirms all of
the terms, covenants and conditions set forth in the Loan Documents (as defined
in the Amended and Restated Credit Agreement), and hereby agrees that it remains
unconditionally liable to the Administrative Agent and the Lenders in accordance
with the respective terms, covenants and conditions set forth in the Loan
Documents (as defined in the Amended and Restated Credit Agreement), and all the
collateral thereto in favor of the Administrative Agent and each Lender
continues unimpaired and in full force and effect, and (ii) waives all defenses,
claims, counterclaims, rights of recoupment or set-off against any of its
Obligations. 

ARTICLE V 

CONDITIONS TO EFFECTIVENESS;
EXPIRATION 

    
SECTION 5.1 Effective Time. This
Agreement shall become effective at such time (herein called the
“Effective Time”) when the conditions set forth in this Section have been satisfied.

4

     SECTION
5.1.1 Execution of
Agreement. The Administrative Agent shall
have received counterparts of this Agreement duly executed and delivered on
behalf of (a) the Borrowers, (b) the Administrative Agent, (c) each Subject
Lender with respect to each relevant Subject Lender Amendments and (d) the
Required Lenders with respect to each Required Lender Amendments. In addition,
the Administrative Agent shall have counterparts of an acknowledgment to this
Agreement duly executed and delivered on behalf of Pilgrim’s Pride Corporation
of West Virginia, Inc.

    
SECTION 5.1.2 Representations and Warranties. The representations and warranties made by the Borrowers
pursuant to Article III shall be true and correct. 

    
SECTION 5.1.3 Incremental Term B Commitments. With respect to the obligation of the Delayed Draw Term
Lenders to extend their respective Incremental Term B Commitments, the
Administrative Agent shall have received from the Borrowers, as provided in
Section 2.10(d) of the Existing Credit Agreement, a certificate of each Loan
Party (in sufficient copies for each Delayed Draw Term Lender) signed by an
authorized officer of such Loan Party certifying and attaching the resolutions
adopted by such Loan Party approving or consenting to the Incremental Term B
Commitments.

    
SECTION 5.1.4 Amended and Restated Credit Agreement. As a condition to the effectiveness of the Subject Lender
Amendments only, all conditions precedent specified in Section 4.01 of the
Amended and Restated Credit Agreement shall have been satisfied; provided that,
notwithstanding the terms of Section 4.01 of the Amended and Restated Credit
Agreement, the Borrowers may deliver, on terms reasonably satisfactory to the
Administrative Agent, any required amendments (which contemplate the terms of
the Amended and Restated Credit Agreement) to the Mortgages that are filed in
connection with the Existing Credit Agreement, together with legal opinions or
title insurance as to the continued effectiveness of such Mortgages after giving
effect to the Amended and Restated Credit Agreement (a) to the extent the
consent of an industrial revenue authority or similar agency or authority is
required with respect to any such amendment, not later than 30 Business Days (or
such longer period of time as may be agreed to by Administrative Agent in its
reasonable discretion so long as Administrative Agent reasonably determines that
Borrowers are utilizing diligent efforts to obtain such consent) after the
Effective Time, (b) otherwise not later than 10 Business Days after the
Effective Time and (c) with respect to clause
(b), if the foregoing has not been delivered
by such time, at the reasonable discretion of the Administrative Agent not later
than an additional 10 Business Days thereafter (for a total of not more than 20
Business Days after the Effective Time); provided, further, that the failure to deliver
any of the foregoing as and when so required to be so delivered hereunder shall
constitute an immediate Event of Default.

5 

ARTICLE VI

INITIAL FUNDING: REALLOCATION OF
EXISTING LOANS AND 

COMMITMENTS,
ETC. 

     SECTION 6.1
Reallocation. 

         
(a) Each Subject Lender (including each Existing Subject Lender) shall fund,
in accordance with its applicable Effective Time Applicable Percentage, its
A&R Revolving Loans, A&R Term B-1 Loans and Delayed Draw Term Loans, and
each Existing Letter of Credit and Existing Swingline Loan (and the
participations of the applicable Revolving Lenders therein) shall be deemed
outstanding under the Amended and Restated Credit Agreement. 

         
(b) To
facilitate the allocation described in clause
(a) on the Effective Time:

              
(i) (A) each Existing Subject Lender shall be deemed to have funded, in
accordance with its applicable Effective Time Applicable Percentages, its
A&R Revolving Loans and A&R Term B-1 Loans in an aggregate principal
amount equal to the aggregate outstanding principal amount of its Revolving
Loans and Term B-1 Loans, respectively, immediately prior to the Effective Time
and shall not be required to wire transfer funds in such amounts as provided in
clause (a);

                   
(B) each Existing Subject Lender shall fund, in accordance with its
applicable Effective Time Applicable Percentages, its A&R Revolving Loans
and A&R Term B-1 Loans to the extent that each such Existing Subject Lender
is required to fund an amount that is greater than the amount it is deemed to
have funded pursuant to clause
(b)(i)(A);

                   
(C) each Subject Lender that is not an Existing Subject Lender shall fund, in
accordance with its applicable Effective Time Applicable Percentages, its
A&R Revolving Loans, A&R Term B-1 Loans and Delayed Draw Term Loans; and

                   
(D) the Borrowers shall pay to each such Existing Subject Lender (x) an
amount equal to the excess, if any, of the aggregate outstanding principal
amount of each such Existing Subject Lender’s Revolving Loans and Term B-1 Loans
immediately prior to the Effective Time over the amount of the A&R Revolving
Loans and A&R Term B-1 Loans, respectively, it is required to fund pursuant
to its applicable Effective Time Applicable Percentage and (y) all accrued and
unpaid interest on its Revolving Loans and Term B-1 Loans of each such Existing
Subject Lender and any fees that are payable pursuant to Section 2.13 of the
Amended and Restated Credit Agreement;

              
(ii) (A) the Swingline Lender (as defined in the Amended and Restated Credit
Agreement) shall be deemed to have funded, in accordance with the requirements
of Section 2.05 of the Amended and Restated Credit Agreement, A&R Swingline
Loans in an aggregate principal amount equal to the Existing Swingline Loans (it
being agreed, without limiting the foregoing, that each Revolving Lender (as
defined in the Amended and Restated Credit Agreement) shall have, as provided in
the Amended and Restated Credit Agreement, reimbursement obligations with
respect to such A&R Swingline Loans in accordance with its applicable
Effective Time Applicable Percentage); and (B) the Borrowers shall have paid all
accrued and unpaid interest on the Existing Swingline Loans; and

6 

              
(iii) (A) each Existing Letter of Credit shall, automatically and without
further action, be deemed to be an A&R Letter of Credit that has been issued
in accordance with the requirements of Section 2.06(b) of the Amended and
Restated Credit Agreement (it being agreed, without limiting the foregoing, that
each Revolving Lender (as defined in the Amended and Restated Credit Agreement)
shall have, as provided in the Amended and Restated Credit Agreement,
reimbursement obligations with respect to such A&R Letters of Credit in
accordance with its Effective Time Applicable Percentage with respect thereto);
and (B) the Borrowers shall have paid any fees that are payable pursuant to
Section 2.13 of the Amended and Restated Credit Agreement. 

All amounts required to be funded by
the Subject Lenders pursuant to Section
6.1(b)(i)(B) and (C) shall be so funded pursuant to
arrangements specified by the Administrative Agent, in immediately available
funds and to an account specified by the Administrative Agent.

ARTICLE VII 

MISCELLANEOUS 

    
SECTION 7.1 Cross-References.
References in this Agreement to any Article or Section are, unless otherwise
specified, to such Article or Section of this Agreement. 

    
SECTION 7.2 Loan Document Pursuant to Amended and Restated Credit Agreement. This
Agreement is a Loan Document executed pursuant to and as defined in the Amended
and Restated Credit Agreement.

    
SECTION 7.3 Limitation of Amendments. The amendments to the Existing Credit Agreement set forth in
Section 2.3
and Article III shall be limited precisely as provided for herein and shall not be
deemed to be a waiver of, amendment of, consent to or modification of any other
term or provision of the Existing Credit Agreement or of any term or provision
of any other Loan Document or of any transaction or further or future action on
the part of the Borrowers or any other Loan Party which would require the
consent of any of the Lenders under the Existing Credit Agreement or any other
Loan Document. 

    
SECTION 7.4 Counterparts. This
Agreement may be executed by the parties hereto in several counterparts, each of
which shall be deemed to be an original and all of which shall constitute
together but one and the same agreement. Delivery of an executed counterpart of
a signature page of this Agreement by facsimile or PDF transmission shall be
effective as delivery of a manually executed counterpart of this
Agreement.

    
SECTION 7.5 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. 

    
SECTION 7.6 Further Assurances.
The Borrowers shall execute and deliver, and shall cause each other Loan Party
to execute and deliver, from time to time in favor of the Administrative Agent
and the Lenders, such documents, agreements, certificates and other instruments
as shall be necessary or advisable to effect the purposes of this Agreement.

7

     SECTION 7.7
Costs and Expenses. The Borrowers agree to jointly and severally pay all
reasonable costs and expenses of the Administrative Agent (including the
reasonable fees and out-of-pocket expenses of legal counsel of the
Administrative Agent) that are incurred in connection with the execution and
delivery of this Agreement and the other agreements and documents entered into
in connection herewith. 

    
SECTION 7.8 Governing Law; Jurisdiction; Consent to Service of
Process. (a) This Agreement shall be
governed by and construed in accordance with the laws of the State of New York,
without regard to the conflict of laws principles thereof, but giving effect to
Federal laws applicable to national banks. 

         
(b) Each party hereto irrevocably and unconditionally submits, for itself and
its property, to the exclusive jurisdiction of any U.S. Federal or New York
State court sitting in the Borough of Manhattan, State of New York, in any
action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such courts. Each of
the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

         
(c) Each party hereto irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement in any court referred to in paragraph (b) of this
Section. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court. 

         
(d) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 9.01 of the Amended and Restated
Credit Agreement. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

    
SECTION 7.9 WAIVER OF JURY TRIAL. EACH PARTY
HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY REQUIREMENTS OF LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

8 

     SECTION
7.10 Execution of Acknowledgment.
By executing the acknowledgment to this
Agreement, Pilgrim’s Pride Corporation of West Virginia, Inc. hereby confirms
and agrees that each Loan Document to which it is a party is, and shall continue
to be, in full force and effect and is hereby ratified and confirmed in all
respects, except that on and after the Effective Time each reference therein to
the Existing Credit Agreement shall refer to the Amended and Restated Credit
Agreement and each other Loan Document that is amended in connection therewith
on the Effective Time. Without limiting the foregoing, each such Person waives
all defenses, claims, counterclaims, rights of recoupment or set-off with
respect to any of its obligations under any of the Loan Documents to which it is
a party. 

    
SECTION 7.11 Certain Waivers and
Consents. With respect to the
exercise of the Borrowers of the Incremental Term B Commitments as herein
provided, (i) the Required Lenders waive any and all notices required pursuant
to Section 2.10 (b)(ii)(E) and 2.10(c) of the Existing Credit Agreement and (ii)
each Delayed Draw Term Lender waives those conditions set forth in Section
2.10(e)(ii) of the Existing Credit Agreement. In addition, each Lender executing
this Agreement consents, pursuant to Section 9.02(d) of the Amended and Restated
Credit Agreement, to the termination of the Revolving Loan Commitment of any
Person under the Existing Credit Agreement that is not, at the Effective Time, a
Revolving Lender under the Amended and Restated Credit Agreement.

    
SECTION 7.12 Timing of Transactions. For purposes of clarification only, the transactions contemplated under
Article II
will be effective pursuant to the Existing Credit Agreement immediately before
the transactions contemplated under Article
III become effective, provided that all such
transactions shall become effective substantially contemporaneously and none of
such contemplated transactions shall become effective unless all of such
transactions become effective.

9 

     IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers hereunto duly authorized as of the day and year first above
written. 

		BORROWERS:
	 	
		PILGRIM’S PRIDE CORPORATION
	 	 	 
		By 
        	/s/ Fabio Sandri	 
			Name:    	Fabio
      Sandri	 
			Title:	Chief
      Financial Officer

		
		TO-RICOS, LTD.
	 	 	 
		By 
        	/s/ Fabio Sandri	 
			Name:    	Fabio
      Sandri	 
			Title:	Chief
      Financial Officer

		 
		TO-RICOS DISTRIBUTION, LTD.
	 	 	 
		By 
        	/s/ Fabio Sandri	 
			Name:    	Fabio
      Sandri	 
			Title:	Chief
      Financial Officer

Amendment and Restatement to Credit Agreement
Signature
Page

		ADMINISTRATIVE AGENT:
		  
		COBANK, ACB,
		       as Administrative
      Agent
	 	 	 
		By 
        	/s/ James H. Matzat	 
			Name:    	James H.
      Matzat	 
			Title:	Vice
      President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		COÖPERATIEVE CENTRALE RAIFFEISEN-
		BOERENLEENBANK B.A., "RABOBANK
		INTERNATIONAL", NEW YORK BRANCH
	 	 	 
		By 
        	/s/ Michalene Donegan	 
			Name:    	Michalene
      Donegan	 
			Title:	Executive Director

 

	 	 	  
		By 
        	/s/ Steve Gilbert	 
			Name:    	Steve
      Gilbert	 
			Title:	Executive Director

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		BANK OF MONTREAL
	 	 	 
		By 
        	/s/ Philip Langhelm	 
			Name:    	Philip
      Langhelm	 
			Title:	Managing Director

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		BARCLAYS BANK PLC
	 	 	 
		By 
        	/s/ Noam Azachi	 
			Name:    	Noam
      Azachi	 
			Title:	Vice
      President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		BANK OF AMERICA, N.A.
	 	 	 
		By 
        	/s/ W. Ashley Allen	 
			Name:    	W. Ashley
      Allen	 
			Title:	Sr.
      Vice President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		THE BANK OF NOVA SCOTIA
	 	 	 
		By 
        	/s/ Rafael Tobon	 
			Name:    	Rafael
      Tobon	 
			Title:	Director

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		SOCIÉTÉ GÉNÉRALE
	 	 	 
		By 
        	/s/ Emmanuel Chesneau	 
			Name:    	Emmanuel
      Chesneau	 
			Title:	Managing Director

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		AGRILAND FARM CREDIT SERVICES, ACA
	 	 	 
		By 
        	/s/ Jake Aragon	 
			Name:    	Jake
      Aragon	 
			Title:	Chief
      Credit Officer

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		ING CAPITAL LLC
	 	 	 
		By 
        	/s/ G. Daniel Sanchez	 
			Name:    	G. Daniel
      Sanchez	 
			Title:	Director

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		U.S. BANK NATIONAL ASSOCIATION
	 	 	 
		By 
        	/s/ Harry J. Brown	 
			Name:    	Harry J.
      Brown	 
			Title:	Vice
      President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		WELLS FARGO BANK, NATIONAL
		ASSOCIATION
	 	 	 
		By 
        	/s/ Jeffry S. Millican	 
			Name:    	Jeffry S.
      Millican	 
			Title:	Vice
      President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		JPMORGAN CHASE BANK, N.A.
	 	 	 
		By 
        	/s/ Odette Smalley	 
			Name:    	Odette
      Smalley	 
			Title:	Vice
      President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		FARM CREDIT EAST (F/K/A FIRST
	 	PIONEER FARM CREDIT, ACA)
	 	 	 
		By    	/s/
      Thomas W. Cosgrove	 
			Name:    	Thomas W. Cosgrove	 
			Title:	Vice
President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		FIFTH THIRD BANK
	 	 	 
		By 
        	/s/ Dwayne
      Sharp	 
			Name:    	Dwayne Sharp	 
			Title:	Vice President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		MORGAN STANLEY SENIOR FUNDING, INC.
	 	 	 
		By    	/s/
      Michael King	 
			Name:    	Michael King	 
			Title:	Vice
President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		BRANCH BANKING AND TRUST COMPANY
	 	 	 
		By    	/s/
      Michael Laurie	 
			Name:    	Michael Laurie	 
			Title:	Senior Vice
  President

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		AMERICAN GENERAL LIFE INSURANCE
	 	COMPANY (F/K/A INTERNATIONAL
		GROUP, INC.)
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		THE UNITED STATES LIFE INSURANCE
	 	COMPANY IN THE CITY OF NEW YORK,
		(AIG ASSET MANAGEMENT (U.S.), LLC,
      AS
		INVESTMENT
    ADVISOR)
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		WESTERN NATIONAL LIFE INSURANCE
	 	COMPANY, (AIG ASSET MANAGEMENT
		(U.S.), LLC, AS INVESTMENT
      ADVISOR)
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		MERIT LIFE INSURANCE COMPANY
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		THE VARIABLE ANNUITY LIFE
	 	INSURANCE COMPANY, (AIG ASSET
		MANAGEMENT (U.S.), LLC,
      AS
		INVESTMENT
    ADVISOR)
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		METROPOLITAN LIFE INSURANCE
	 	COMPANY
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		JOHN HANCOCK LIFE INSURANCE
	 	COMPANY
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

		JOHN HANCOCK LIFE & HEALTH
	 	INSURANCE CO
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

		JOHN HANCOCK VARIABLE LIFE
	 	INSURANCE COMPANY
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		AEGON USA REALTY ADVISORS, INC.
	 	(A/K/A “TRANSAMERICA LIFE INSURANCE
		COMPANY”)
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

		THE PRUDENTIAL INSURANCE COMPANY
	 	OF AMERICA
	 	 	 
		By    	 	 
			Name:    	 	 
			Title:	 

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

ACKNOWLEDGED AND
AGREED: 

	PILGRIM’S PRIDE CORPORATION OF
	WEST VIRGINIA, INC.
	 	 
	By    	/s/
      Fabio Sandri	 
		Name:    	Fabio Sandri	 
		Title:	Chief Financial
  Officer

 

 

 

 

 

 

 

 

Amendment and Restatement to Credit Agreement
Signature
Page

Exhibit A to
Amendment and
Restatement
to
Credit Agreement 

CREDIT AGREEMENT

dated as of

August 7, 2013

among 

PILGRIM’S PRIDE
CORPORATION,
TO-RICOS, LTD.
and
TO-RICOS DISTRIBUTION, LTD.,
as
Borrowers 

The Lenders Party Hereto 

and 

COBANK, ACB,
as Administrative Agent

___________________________

COBANK, ACB,
COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
“RABOBANK
INTERNATIONAL”, NEW YORK BRANCH,
BMO CAPITAL MARKETS
and
ING CAPITAL
LLC,
as Joint Lead Arrangers, Joint Syndication Agents and Joint Bookrunners

BANK OF AMERICA, N.A.,
JPMORGAN CHASE
BANK, N.A., 
SOCIÉTÉ GÉNÉRALE AMERICAS
SECURITIES, LLC
 and
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Joint
Documentation Agents 

and 

COBANK, ACB,
as Collateral
Agent

       

       TABLE OF
CONTENTS 

	 			       	Page
	ARTICLE
      I         	DEFINITIONS	1
	       
         SECTION  	1.01	.           	Defined Terms	1
	           SECTION	1.02	.	Classification of Loans and
      Borrowings	47
	           SECTION	1.03	.	Terms Generally	47
	           SECTION	1.04	.	Accounting Terms; GAAP	48
	           SECTION	1.05	.	Timing of Payment or Performance	48
	ARTICLE II	THE
      CREDITS	48
	           SECTION	2.01	.	Commitments	48
	           SECTION	2.02	.	Loans and Borrowings	49
	           SECTION	2.03	.	Requests for Borrowings	50
	           SECTION	2.04	.	Protective Advances	51
	           SECTION	2.05	.	Swingline Loans	51
	           SECTION	2.06	.	Letters of Credit	53
	           SECTION	2.07	.	Funding of Borrowings	57
	           SECTION	2.08	.	Interest Elections	58
	           SECTION	2.09	.	Termination and Reduction of Commitments	59
	           SECTION	2.10	.	Increase in Commitments	60
	           SECTION	2.11	.	Repayment and Amortization of Loans; Evidence of
      Debt	62
	           SECTION	2.12	.	Prepayment of Loans	63
	           SECTION	2.13	.	Fees	66
	           SECTION	2.14	.	Interest	67
	           SECTION	2.15	.	Alternate Rate of Interest	68
	           SECTION	2.16	.	Increased Costs	68
	           SECTION	2.17	.	Break Funding Payments; Make-Whole Amounts	69
	           SECTION	2.18	.	Taxes	71
	           SECTION	2.19	.	Payments Generally; Allocation of Proceeds; Sharing of
      Set-offs	73
	           SECTION	2.20	.	Mitigation Obligations; Replacement of
      Lenders	75
	           SECTION	2.21	.	Defaulting Lenders and Voting Participants	76
	           SECTION	2.22	.	Returned Payments	78
	           SECTION	2.23	.	Bermuda Obligations	79
	ARTICLE III	REPRESENTATIONS
      AND WARRANTIES	79
	           SECTION	3.01	.	Organization; Powers	79
	           SECTION	3.02	.	Authorization; Enforceability	79
	           SECTION	3.03	.	Governmental Approvals; No Conflicts	79
	           SECTION	3.04	.	Financial Condition; No Material
      Adverse Effect	80
	           SECTION	3.05	.	Properties	80
	           SECTION	3.06	.	Flood Zones	81
	           SECTION	3.07	.	Litigation	81
	           SECTION	3.08	.	Compliance with Laws and
      Agreements	81
	           SECTION	3.09	.	Investment Company Status	81
	           SECTION	3.10	.	Taxes	82
	           SECTION	3.11	.	ERISA, etc	82

i 

	           SECTION	3.12	.           	Disclosure	82
	           SECTION	3.13	.	Material Agreements	82
	           SECTION	3.14	.	Solvency	83
	           SECTION	3.15	.	Insurance	83
	           SECTION	3.16	.	Capitalization and
    Subsidiaries	83
	           SECTION	3.17	.	Security Interest in Collateral	83
	           SECTION	3.18	.	Employment Matters	84
	           SECTION	3.19	.	Regulation U; Use of Proceeds	84
	           SECTION	3.20	.	Patriot Act and Other Specified
      Laws	84
	           SECTION	3.21	.	Food Security Act	85
	           SECTION	3.22	.	No Default	85
	ARTICLE IV	CONDITIONS	85
	           SECTION 
      	4.01	.	Effective Date	85
	           SECTION	4.02	.	Each Credit Event	92
	ARTICLE
    V	AFFIRMATIVE
      COVENANTS	92
	           SECTION	5.01	.	Financial Statements; Borrowing Base and Other
      Information	93
	           SECTION	5.02	.	Notices of Material Events	95
	           SECTION	5.03	.	Existence; Conduct of Business	97
	           SECTION	5.04	.	Payment of Obligations	97
	           SECTION	5.05	.	Maintenance of Properties	97
	           SECTION	5.06	.	Books and Records; Inspection
      Rights	97
	           SECTION	5.07	.	Compliance with Laws and Contractual
Obligations	98
	           SECTION	5.08	.	Use of Proceeds	98
	           SECTION	5.09	.	Insurance	98
	           SECTION	5.10	.	Casualty and Condemnation	99
	           SECTION	5.11	.	Appraisals	99
	           SECTION	5.12	.	Field Examinations	100
	           SECTION	5.13	.	Additional Collateral; Further Assurances	100
	ARTICLE VI	NEGATIVE
      COVENANTS	103
	           SECTION	6.01	.	Indebtedness	103
	           SECTION	6.02	.	Liens	108
	           SECTION	6.03	.	Fundamental Changes; Change in Nature of
    Business	111
	           SECTION	6.04	.	Investments, Loans, Advances,
      Guarantees and Acquisitions	114
	           SECTION	6.05	.	Asset Sales	117
	           SECTION	6.06	.	Sale and Leaseback
    Transactions	119
	           SECTION	6.07	.	Swap Agreements	119
	           SECTION	6.08	.	Restricted Payments; Certain Payments
      of Indebtedness and Management Fees	120
	           SECTION	6.09	.	Transactions with Affiliates	121
	           SECTION	6.10	.	Restrictive Agreements	123
	           SECTION	6.11	.	Amendment of Material Documents	124
	           SECTION	6.12	.	Capital Expenditures	124

ii 

	           SECTION 
      	6.13.	          	Minimum Consolidated Tangible Net
      Worth	124
	           SECTION	6.14.		Change in Fiscal Year	124
	ARTICLE VII	EVENTS OF
      DEFAULT	125
	ARTICLE VIII	ADMINISTRATIVE AGENT; COLLATERAL AGENT;
      OTHER AGENTS	128
	           SECTION	8.01.		Administrative Agent	128
	           SECTION	8.02.		Collateral Agent	130
	           SECTION	8.03.		Other Agents	132
	ARTICLE IX	MISCELLANEOUS	132
	           SECTION	9.01.		Notices	132
	           SECTION	9.02.		Waivers; Amendments	134
	           SECTION	9.03.		Expenses; Indemnity; Damage
      Waiver	137
	           SECTION	9.04.		Successors and Assigns	139
	           SECTION	9.05.		Survival	143
	           SECTION	9.06.		Counterparts; Integration; Effectiveness	143
	           SECTION	9.07.		Severability	143
	           SECTION	9.08.		Right of Setoff	143
	           SECTION	9.09.		Governing Law; Jurisdiction; Consent to
      Service of Process	144
	           SECTION	9.10.		WAIVER OF JURY TRIAL	144
	           SECTION	9.11.		Headings	145
	           SECTION	9.12.		Confidentiality	145
	           SECTION	9.13.		Several Obligations; Nonreliance;
      Violation of Law	146
	           SECTION	9.14.		Patriot Act	146
	           SECTION	9.15.		Disclosure	147
	           SECTION	9.16.		Appointment for Perfection	147
	           SECTION	9.17.		Interest Rate Limitation	147
	           SECTION	9.18.		WAIVERS OF FARM CREDIT RIGHTS	147
	           SECTION	9.19.		Bank Equity Interests	148
	           SECTION	9.20.		Amendment and Restatement of Prior Credit
    Agreement	148
	ARTICLE X	U.S.
      GUARANTY	148
	           SECTION	10.01	.	Guaranty	148
	           SECTION	10.02	.	Guaranty of Payment	149
	           SECTION	10.03	.	No Discharge or Diminishment of U.S. Guaranty	149
	           SECTION	10.04	.	Defenses Waived	150
	           SECTION	10.05	.	Rights of Subrogation	150
	           SECTION	10.06	.	Reinstatement; Stay of
      Acceleration	150
	           SECTION	10.07	.	Information	150
	           SECTION	10.08	.	Taxes	150
	           SECTION	10.09	.	Maximum Liability	151
	           SECTION	10.10	.	Contribution	151
	           SECTION	10.11	.	Liability Cumulative	152
	           SECTION	10.12	.	Common Enterprise	152

iii 

	ARTICLE XI	THE BORROWER REPRESENTATIVE	152
	           SECTION 
      	11.01	.          	Appointment; Nature of Relationship	152
	           SECTION	11.02	.	Powers	153
	           SECTION	11.03	.	Employment of Agents	153
	           SECTION	11.04	.	Notices	153
	           SECTION	11.05	.	Successor Borrower Representative	153
	           SECTION	11.06	.	Execution of Loan Documents; Borrowing Base
      Certificate	153
	           SECTION	11.07	.	Reporting	153
	           SECTION	11.08	.	Keepwell	153

iv 

	SCHEDULES:
	 
	Commitment Schedule
	Effective Date Loans and Letters of
      Credit Schedule
	Schedule 1.01	        	Tax Sharing Agreements
	Schedule 3.05(a)		Real Property
	Schedule 3.05(b)	 	Intellectual Property
	Schedule 3.07		Disclosed Matters
	Schedule 3.11		ERISA
	Schedule 3.15		Insurance
	Schedule 3.16		Capitalization and Subsidiaries
	Schedule 4.01(n)		Mortgaged Properties
	Schedule 6.01(b)		Existing Indebtedness
	Schedule 6.02(c)		Existing Liens
	Schedule 6.04(b)		Existing Investments
	Schedule 6.04(m)		Captive Insurance Company Investment
  Guidelines
	Schedule 6.07		Commodity Price Risk Management Guidelines
	Schedule 6.10		Existing Restrictions
	 
	EXHIBITS:		
	 
	Exhibit A		Form of Borrowing Request
	Exhibit B		Form of Issuance Request
	Exhibit C		Form of Interest Election Request
	Exhibit D		Form of Incremental Commitment Joinder
  Agreement
	Exhibit E-1		Form of Revolving Note
	Exhibit E-2		Form of Swingline Note
	Exhibit E-3		Form of Delayed Draw Term Note
	Exhibit E-4		Form of Term B-1 Note
	Exhibit E-5		Form of Term B-2 Note
	Exhibit F-1		Form of U.S. Security Agreement
	Exhibit F-2		Form of Bermuda Pledge Agreement
	Exhibit F-3		Form of Bermuda Security Agreement
	Exhibit F-4		Form of Puerto Rico Security Agreement
	Exhibit
      G                     
      		Form of U.S. Mortgage
	Exhibit H		Form of Borrowing Base Certificate
	Exhibit I-1		Form of Opinion of Borrowers’ U.S. Counsel
	Exhibit I-2		Form of Opinion of Borrowers’ Bermuda
Counsel
	Exhibit I-3		Form of Opinion of Borrowers’ Puerto Rico
    Counsel
	Exhibit J		Form of Compliance Certificate
	Exhibit K		Form of Assignment and Assumption
	Exhibit L		Form of Joinder Agreement
	Exhibit M		Form of Bermuda Guaranty
	Exhibit N		Initial Farm Credit Participants
	Exhibit O		Intercreditor Agreement

v 

          CREDIT AGREEMENT, dated as of August 7, 2013 (as it may be
amended, restated, amended and restated or otherwise modified from time to time,
this “Agreement”), among PILGRIM’S PRIDE CORPORATION, a Delaware corporation, TO-RICOS,
LTD., a Bermuda company, and TO-RICOS DISTRIBUTION, LTD., a Bermuda company, as
Borrowers, the other Loan Parties party hereto, the Lenders party hereto,
COBANK, ACB, as Administrative Agent, COBANK, ACB, COÖPERATIEVE CENTRALE
RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL”, NEW YORK BRANCH, BMO
CAPITAL MARKETS
and ING CAPITAL LLC, as Joint Lead Arrangers, Joint Syndication Agents and Joint
Bookrunners, BANK OF AMERICA, N.A., JPMORGAN
CHASE BANK, N.A., SOCIÉTÉ GÉNÉRALE AMERICAS SECURITIES, LLC and WELLS FARGO
BANK, NATIONAL ASSOCIATION, as Joint Documentation Agents, and COBANK, ACB, as Collateral Agent.

          The parties
hereto agree as follows: 

ARTICLE I 

DEFINITIONS 

          SECTION
1.01. Defined
Terms. As used in this Agreement, the
following terms have the meanings specified below: 

         
“ABR”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are accruing interest at a
rate determined by reference to the Alternate Base Rate. 

         
“Account” has the meaning assigned to such term in the U.S. Security Agreement.

         
“Account Debtor” means any Person obligated on an Account. 

         
“Additional Aggregate
Basket” means, as of any date, the sum of (a)
the Additional ECF Basket, plus (b) the Additional Equity
Interest Basket, plus (c) the Additional Excess Asset Disposition Basket.

         
“Additional ECF Basket” means, as of any date, the difference of:

(a) the
aggregate Excess Cash Flow that has accrued, for the period from the Fiscal Year
ending December 30, 2012 until such date, to the extent not required to prepay
the Obligations pursuant to Section
2.12(d); provided that all payments under
Section 2.12(d) for each relevant period shall have been made prior to or simultaneously
with such amounts being used in the determination of “Additional ECF Basket”;

         
minus

(b) any
amounts set forth in paragraph
(a) above actually utilized on or prior to
such date for Permitted Acquisitions. 

         
“Additional Equity Interest
Basket” means, as of any date, the difference
of:

(a) the
aggregate Net Proceeds of issuances of Equity Interests of, or contributions to,
the Company, for the period from the Effective Date until such date, to the
extent not required to prepay the Obligations pursuant to Section 2.12(c)(i);
provided
that if any payments under Section
2.12(c)(i) are required to be made as a
result of such issuances or contributions, such payments shall have been made
prior to or simultaneously with such amounts being used in the determination of
“Additional Equity Interest Basket”; 

         
minus

(b) any
amounts set forth in paragraph
(a) above actually utilized on or prior to
such date for (i) Permitted Acquisitions, (ii) Investments pursuant to
Section 6.04(s), (iii) Restricted Payments utilizing amounts available pursuant to the
Additional Equity Interest Basket pursuant to Section 6.08(a)(viii), (iv) payments
or other distributions utilizing amounts available pursuant to the Additional
Equity Interest Basket pursuant to Section
6.08(b)(iii) and (v) Capital Expenditures
utilizing amounts available pursuant to the Additional Equity Interest Basket
pursuant to Section 6.12(b). 

         
“Additional Excess Asset Disposition
Basket” means, as of any date, the difference
of:

(a) the
aggregate Net Proceeds received by any Loan Party pursuant to any transaction or
circumstance described in paragraph
(a) of the definition of “Prepayment Event”,
for the period from the Effective Date until such date, to the extent not used
as of such date to prepay the Obligations prior to such date (or not required to
be used as of such date to repay the Obligations) pursuant to Section 2.12(c)(ii);

         
minus

(b) any
amounts set forth in paragraph
(a) above actually reinvested (or committed
to be reinvested, but only while such commitment is effective) on or prior to
such date in accordance with the proviso to Section 2.12(c)(ii) (including
reinvestments made in the form of Permitted Acquisitions). 

         
“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate. 

          “Administrative Agent” means CoBank, in
its capacity as administrative agent for the Lenders hereunder, and its
successors and assigns in such capacity. 

         
“Administrative
Questionnaire” means an Administrative
Questionnaire in a form supplied by the Administrative Agent. 

         
“Affiliate” means, with respect to a specified Person, any other Person that
possesses, directly or indirectly, the power to (a) direct or cause the
direction of the management or policies of the Person specified, whether through
the ability to exercise voting power, by contract or otherwise; or (b) vote 10%
or more of the securities or general partnership interests having ordinary voting power for the
election of directors (or Persons performing similar functions) of the Person
specified.

2 

          “Agents” means, individually or collectively as the context may
require, the Administrative Agent, the Joint Lead Arrangers, the Joint
Syndication Agents and the Collateral Agent. 

         
“Aggregate Credit
Exposure” means, at any time, the aggregate
Credit Exposure of all the Lenders. 

         
“Aggregate Revolving
Exposure” means, at any time, the aggregate
Revolving Exposure of all the Revolving Lenders. 

         
“Agreement” has the meaning assigned to such term in the preamble. 

         
“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest
of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective
Rate in effect on such day plus 0.50% and (c) the Adjusted
LIBO Rate for a one month Interest Period on such day (or if such day is not a
Business Day, the immediately preceding Business Day) plus 1.00%;
provided
that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be
based on the rate as published by Bloomberg Information Services (or on any
successor or substitute page) at approximately 11:00 a.m., London time, on such
day (without any rounding). Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO
Rate shall be effective from and including the effective date of such change in
the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate,
respectively. 

         
“Amendment and Restatement
Agreement” means the Amendment and
Restatement to Credit Agreement, dated as of the date hereof, among the
Borrowers, the Administrative Agent and the Lenders that are party thereto.

         
“Applicable Percentage” means, with respect to any Lender, (a) with respect to
Revolving Loans, LC Exposure or
Swingline Exposure, a percentage equal to a
fraction the numerator of which is such Lender’s Revolving Commitment and the
denominator of which is the aggregate Revolving Commitments (if the Revolving
Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon such Lender’s share of the Aggregate Revolving Exposure at
that time); provided that in the case of Section
2.21 when a Defaulting Lender shall exist,
any such Defaulting Lender’s Revolving Commitment shall be disregarded in the
calculation; (b) with respect to the Term Loans, a percentage equal to a
fraction the numerator of which is such Lender’s outstanding principal amount of
the Term Loans and the denominator of which is the aggregate outstanding amount
of the Term Loans of all Term Lenders; and (c) with respect to Protective
Advances or with respect to the Aggregate Credit Exposure, a percentage based
upon such Lender’s share of the Aggregate Credit Exposure and the unused
Commitments; provided that in the case of Section
2.21 when a Defaulting Lender shall exist,
any such Defaulting Lender’s Commitment shall be disregarded in the calculation.

3 

         
“Applicable Rate” means (a) for the period ending December 31, 2013, (i) with
respect to the Revolving Loans, Term B-1 Loans and Delayed Draw Term Loans, a
rate per annum equal to (A) 1.25%, in the case of ABR Loans, and (B) 2.25% in
the case of Eurodollar Loans, and (ii) with respect to the commitment fee
referred to below, 0.300% per annum; and (b) thereafter, the following rates per
annum, based upon the Leverage Ratio as set forth in the most recent quarterly
compliance certificate received by the Administrative Agent pursuant to
Section 5.01(c):

		ARTICLE
      IV		
		ARTICLE V
      Applicable	ARTICLE
    VII	
	ARTICLE I	Rate for
      Eurocurrency	ARTICLE
    VIII	
	ARTICLE
      II	Loans/	ARTICLE
IX	ARTICLE
  X
	ARTICLE III	ARTICLE VI Letter
      of	Applicable Rate
      for	ARTICLE
  XI
	Leverage Ratio	Credit
      Fees	ABR
      Loans	Commitment
      Fee
	1.	> 3.00:1.00	3.75%	2.75%	0.500%
	2.	< 3.00:1 but
      >	3.25%	2.25%	0.400%
		2.25:1.00		 	
	3.	< 2.25:1 but
      >	2.75%	1.75%	0.350%
		1.75:1.00			
	4.	< 1.75:1 but
      >	2.25%	1.25%	0.300%
	 	1.25:1.00		 	 
	5.	< 1.25:1 but
      >	2.00%	1.00%	0.250%
		0.75:1.00			
	6.	<
    0.75:1.00	1.75%	0.75%	0.250%

         
“Approved Fund” means any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender.

         
“Assignment and
Assumption” means an assignment and
assumption entered into by a Lender and an assignee (with the consent of any
party whose consent is required by Section
9.04(b)), and accepted by the Administrative
Agent, in the form of Exhibit
K or any other form approved by the
Administrative Agent. 

         
“Availability” means, at any time, an amount equal to (a) the lesser of (i)
the aggregate Revolving Commitments and (ii) the Borrowing Base
minus (b) the Aggregate Revolving Exposure. 

         
“Availability Period” means the period from and including the Effective Date to
but excluding the Maturity Date with respect to the Revolving Loans. 

         
“Available Delayed Draw Term Loan
Commitment” means, at any time, the aggregate
Delayed Draw Term Loan Commitments then in effect minus the aggregate principal amount
of Delayed Draw Term Loans advanced from and after the Effective Date.

4 

         
“Available Inventory
Amount” means, as of any time it is to be
determined, the sum of: 

(a) the lesser
of (i) 65% of the Value of Eligible Inventory consisting of feed grains, prepaid
grain in transit, feed and ingredients, dressed broiler chickens and commercial
eggs and (ii) 85% multiplied
by the NOLV Percentage multiplied by the Value
of Eligible Inventory consisting of feed grains, prepaid grain in transit, feed
and ingredients, dressed broiler chickens and commercial eggs;
plus

(b) the lesser
of (i) 45% multiplied
by 95% of the number of live broiler
chickens constituting Eligible Inventory multiplied by an average weight
per live broiler chicken of 2.75 pounds multiplied by a price per pound
equal to 75% of the difference of (A) the price quoted on the Los Angeles
Majority Market on the date of calculation minus (B) $0.085, rounded up to
the nearest 1/4 cent and (ii) 85% multiplied by the NOLV Percentage
multiplied by the Value of Eligible Inventory consisting of live broiler
chickens; plus

(c) the lesser
of (i) 70% multiplied
by the difference of (A) the Value of
Eligible Inventory consisting of prepared food products minus (B) Inventory
Reserves and (ii) 85% multiplied
by the NOLV Percentage multiplied by the Value
of Eligible Inventory consisting of prepared food products; plus 

(d) the lesser
of (i) 45% of the Value of Eligible Inventory consisting of breeder hens,
breeder cockerels, breeder pullets, commercial hens, commercial pullets and
hatching eggs and (ii) 85% multiplied
by the NOLV Percentage multiplied by the Value
of Eligible Inventory consisting of breeder hens, breeder cockerels, breeder
pullets, commercial hens, commercial pullets and hatching eggs; plus

(e) the lesser
of (i) 40% of the Value of Eligible Inventory consisting of vaccines on the farm
and (ii) 85% multiplied
by the NOLV Percentage multiplied by the Value of
Eligible Inventory consisting of vaccines on the farm. 

     The
Administrative Agent may, in its Permitted Discretion, reduce the advance rates
(including the NOLV Percentage) used in computing the Available Inventory
Amount, with any such changes to be effective three Business Days after delivery
of notice thereof to the Borrower Representative and the Lenders. 

         
“Available Revolving
Commitment” means, at any time, the aggregate
Revolving Commitments then in effect minus the Aggregate Revolving
Exposure. 

         
“Bank Equity Interests” has the meaning assigned to such term in Section 9.19. 

         
“Banking Services” means each and any of the following bank services provided
to any Loan Party by any Lender or any of its Affiliates: (a) credit cards for
commercial customers (including, without limitation, “commercial credit cards”
and purchasing cards); (b) stored value cards; and (c) treasury management
services (including, without limitation, controlled disbursement, automated
clearinghouse transactions, return items and interstate depository network
services). 

5 

          “Banking Services
Obligations” of the Loan Parties means any
and all obligations of the Loan Parties, whether absolute or contingent and
howsoever and whensoever created, arising, evidenced or acquired (including all
renewals, extensions and modifications thereof and substitutions therefor) in
connection with Banking Services. 

         
“Banking Services
Reserves” means all Reserves which the
Administrative Agent from time to time establishes in its Permitted Discretion
for Banking Services then provided or outstanding. 

         
“Bankruptcy Court” means the United States Bankruptcy Court for the Northern
District of Texas, Fort Worth Division. 

         
“Bermuda Borrowers” means, individually or collectively as the context may
require, To-Ricos and To-Ricos Distribution. 

         
“Bermuda Guaranty” means a Guarantee Agreement, in substantially the form of
Exhibit M,
among the Borrowers and the Administrative Agent, for the benefit of the Lender
Parties. 

         
“Bermuda Loan Parties” means, individually or collectively as the context may
require, the Bermuda Borrowers and any other Person who becomes a party to a
guarantee (other than any U.S. Loan Party) that guarantees the payment of, or a
security agreement that secures the repayment of, the Bermuda Secured
Obligations, in each case pursuant to Section
5.13(c), and their successors and assigns.

         
“Bermuda Obligations” means all unpaid principal of and accrued and unpaid
interest on all Loans to the Bermuda Borrowers, all LC Exposure in respect of
the Bermuda Borrowers, all accrued and unpaid fees and all expenses,
reimbursements, indemnities and other obligations of the Bermuda Loan Parties to
the Lenders or to any Lender, the Administrative Agent, any Issuing Bank with
respect to Letters of Credit of the Bermuda Borrowers or any indemnified party
arising under the Loan Documents. 

         
“Bermuda Pledge
Agreement” means a Share Charge Agreement, in
substantially the form of Exhibit
F-2, between the Company and the
Administrative Agent, for the benefit of the Lender Parties. 

         
“Bermuda Secured
Obligations” means all Bermuda Obligations,
together with all (a) Banking Services Obligations of the Bermuda Loan Parties
and (b) Swap Obligations of the Bermuda Loan Parties owing to one or more
counterparties that are Lenders or Affiliates of Lenders at the time that such
Swap Obligations are incurred; provided that at or prior to the time
that any transaction relating to such Swap Obligation is executed, the Lender or
Affiliate of a Lender and the Bermuda Loan Party party thereto shall have
delivered written notice to the Administrative Agent that such a transaction has
been entered into and that it constitutes a Bermuda Secured Obligation entitled
to the benefits of the Collateral Documents in favor of the Lender Parties;
provided
further,
that the “Bermuda Secured Obligations” of a Bermuda Loan Party shall exclude any
Excluded Swap Obligations with respect to such Bermuda Loan Party.. 

6 

         
“Bermuda Security
Agreement” means a Deed of Security
Assignment and Charge, in substantially the form of Exhibit F-3, among the Bermuda Loan
Parties and the Administrative Agent, for the benefit of the Lender Parties.

         
“BMO” means BMO Capital Markets.

         
“Board” means the Board of Governors of the Federal Reserve System of the
United States. 

         
“Borrower” or “Borrowers” means, individually or collectively as the context may
require, the Company, To-Ricos and To-Ricos Distribution. 

         
“Borrower
Representative” means the Company, in its
capacity as contractual representative of the Borrowers pursuant to
Article XI.

         
“Borrowing” means (a) Revolving Loans of the same Type, made, converted or
continued on the same date and, in the case of Eurodollar Loans, as to which a
single Interest Period is in effect; (b) a Term Loan made on the same date and,
in the case of Eurodollar Loans, as to which a single Interest Period is in
effect; (c) a Swingline Loan; and (d) a Protective Advance. 

         
“Borrowing Base” means, at any time: 

(a) the sum of
(i) 90% multiplied by the difference of (A) the Eligible Accounts
minus (B) the Dilution Reserve, plus (ii) the Available Inventory
Amount, plus (iii) the aggregate amount of the Borrowers’ cash deposits in restricted
accounts that are subject to the sole dominion and control of the Administrative
Agent pursuant to a Deposit Account Control Agreement, plus (iv) 90%
multiplied by the net liquidation value of the Borrowers’ commodity brokerage
accounts that are subject to a control (or similar) agreement in accordance with
the proviso to Section 6.02(p); 

minus 

(b) the sum of
(i) the Rent or Collateral Access Reserves, plus (ii) the outstanding amount
of Secured Grower Payables that are more than 15 days past due,
plus
(iii) without duplication of the Reserves included in the foregoing components
of the Borrowing Base, other Reserves established by the Administrative Agent in
its Permitted Discretion. 

         
Notwithstanding the foregoing, the aggregate amount of Availability under
the Borrowing Base attributable to the Bermuda Borrowers and the other Bermuda
Loan Parties shall not exceed $25,000,000. The Administrative Agent may, in its
Permitted Discretion, reduce the advance rates set forth above (including the
NOLV Percentage), adjust Reserves or reduce one or more of the other elements
used in computing the Borrowing Base, with any such changes to be effective
three Business Days after delivery of notice thereof to the Borrower
Representative and the Lenders; provided that the Administrative Agent
agrees at all times to maintain Reserves for Swap Obligations that constitute
Secured Obligations (such Reserves not to exceed the aggregate liability of the
Company and the other Loan Parties with respect to such Swap Obligations).
Subject to the preceding sentence and Section
9.02, Borrowing Base at any time shall be
determined by reference to the most recent Borrowing Base Certificate delivered
to the Administrative Agent pursuant to Section 5.01(f). 

7 

          “Borrowing Base
Certificate” means a certificate, signed and
certified as accurate and complete by a Financial Officer of the Borrower
Representative, in substantially the form of Exhibit H or another form which is
acceptable to the Administrative Agent in its sole discretion. 

         
“Borrowing Request” means a request, in substantially the form of
Exhibit A,
by the Borrower Representative for a Borrowing of Revolving Loans or Term Loans,
in each case in accordance with Section
2.03. 

         
“Business Day” means any day that is not a Saturday, Sunday or other day on
which commercial banks in New York City or Denver, Colorado are authorized or
required by law to remain closed; provided that, when used in connection
with a Eurodollar Loan, the term “Business Day” shall also exclude any day on
which banks are not open for dealings in dollar deposits in the London interbank
market. 

         
“Capital Expenditures” means, without duplication, with respect to any period, any
expenditure or commitment to expend money for any purchase or other acquisition
of any asset during such period which would be classified as a fixed or capital
asset on a consolidated balance sheet of the Company, excluding:

(a)
expenditures of the proceeds of insurance settlements, condemnation awards and
other settlements described in paragraph
(b) of the definition of “Prepayment Event”
that are reinvested in accordance with the proviso to Section 2.12(c); 

(b)
expenditures that are accounted for as capital expenditures of such Person and
that have actually been paid for by a third party (other than the Company or any
Subsidiary thereof) and for which neither the Company nor any Subsidiary thereof
has provided, or is required to provide or incur, directly or indirectly
(whether or not contingent upon the occurrence of any event or circumstance),
any consideration, collateral security or other obligation to such third party
or any other Person (whether before, during or after such period);

(c) the book
value of any asset owned by such Person prior to or during such period to the
extent that such book value is included as a capital expenditure during such
period as a result of such Person reusing or beginning to reuse such asset
during such period without a corresponding cash expenditure actually having been
made in such period; provided that (i) any expenditure necessary in order to permit such
asset to be reused shall be included as a Capital Expenditure during the period
in which such expenditure is actually made and (ii) such book value shall have
been included in Capital Expenditures when such asset was originally acquired;
and 

(d)
expenditures that are accounted for as Capital Expenditures pursuant to
transactions constituting Permitted Acquisitions. 

8 

          “Capital Lease
Obligations” of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a consolidated balance sheet of such Person,
and the amount of such obligations shall be the capitalized amount thereof.

         
“Captive Insurance
Company” means, collectively, (a) GK
Insurance Company, organized and licensed to provide insurance under the laws of
the State of Vermont, (b) Mayflower Insurance Company, Ltd., organized and licensed
to provide insurance under the laws of Bermuda, and (c) such other captive
insurance companies that are reasonably acceptable to the Administrative Agent,
in each case which conducts no other business (nor suffers to exist any
business) other than providing insurance for the benefit of the Company and the
Subsidiaries with respect to workmen’s compensation, crime, general liability,
auto liability, employee benefits, property risks and live chicken inventory in
accordance with Section 5.09 and reinsurance arrangements or customary risk sharing or
pooling arrangements with respect thereto. 

         
“Change in Control” means (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the SEC
thereunder as in effect on the Prior Effective Date) other than the Permitted Holders, of Equity
Interests representing more than 50% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Company; (b)
failure of the Permitted Holders to have the right, directly or indirectly, to
designate a majority of the board of directors of the Company; (c) occupation of
a majority of the seats (other than vacant seats) on the board of directors of
the Company by Persons who were neither (i) nominated by the board of directors
of the Company nor (ii) appointed by directors so nominated; or (d) the Company
shall cease to own, free and clear of all Liens (other than Permitted Liens
arising by operation of Requirements of Law and Liens securing the Secured
Obligations), at least 100% of the outstanding voting Equity Interests of the
other Borrowers on a fully diluted basis (other than as a result of a
transaction permitted by Section
6.03 or 6.05). 

         
“Change in Law” means (a) the adoption of any law, rule or regulation after
the Effective Date; (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
Effective Date; or (c) compliance by any Lender or any Issuing Bank (or, for
purposes of Section 2.16(b), by any lending office of such Lender or by such Lender’s or
such Issuing Bank’s holding company, if any) with any request, guideline or
directive (whether or not having the force of law) of any Governmental Authority
made or issued after the Effective Date; provided that notwithstanding anything
herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or
issued in connection therewith and (y) all requests, rules, guidelines or
directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or the
United States or foreign regulatory authorities, in each case pursuant to Basel
III, shall in each case be deemed to be a “Change in Law”, regardless of the
date enacted, adopted or issued. 

         
“Charges” has the meaning assigned to such term in Section 9.17. 

9 

         
“Class”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Term
Loans, Swingline Loans or Protective Advances. 

         
“CoBank” means CoBank, ACB, in its individual capacity, and its successors.

         
“Code” means the Internal Revenue Code of 1986. 

         
“Collateral” means any and all real and personal property owned, leased or operated
by a Person covered by the Collateral Documents and any and all other real and
personal property of any Loan Party, now existing or hereafter acquired, that
may at any time be subject to a Lien in favor of the Administrative Agent, on
behalf of the Lender Parties, to secure the Secured Obligations. 

         
“Collateral Access
Agreement” has the meaning assigned to such
term in the U.S. Security Agreement. 

         
“Collateral Agent” means CoBank, in its capacity as collateral agent hereunder,
and each of its successors and assigns in such capacity. 

         
“Collateral Documents” means, collectively, the U.S. Security Agreement, the
Bermuda Pledge Agreement, the Bermuda Security Agreement, the Puerto Rico
Security Agreement, each Mortgage, each Collateral Access Agreement, each IP
Security Agreement, each Deposit Account Control Agreement, each Lock Box
Agreement and each other document granting a Lien upon the Collateral as
security for payment of the Secured Obligations. 

         
“Commercial LC Exposure” means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Commercial Letters of Credit at such time,
plus
(b) the aggregate amount of all LC Disbursements relating to Commercial Letters
of Credit that have not yet been reimbursed by or on behalf of the Borrowers at
such time. The Commercial LC Exposure of any Revolving Lender at any time shall
be its Applicable Percentage of the aggregate Commercial LC Exposure at such
time. 

         
“Commercial Letter of
Credit” means any Letter of Credit issued for
the purpose of providing the primary payment mechanism in connection with the
purchase of any materials, goods or services by a Borrower in the ordinary
course of business of such Borrower. 

         
“Commitment” means, with respect to each Lender, the sum of such Lender’s Revolving
Commitment and Delayed Draw Term Loan Commitment, together with the commitment
of such Lender to acquire participations in Protective Advances hereunder. The
initial amount of each Revolving Lender’s and Delayed Draw Term Lender’s
Commitment is set forth on the Commitment
Schedule, or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Commitment, as applicable.

         
“Commitment Schedule” means the Schedule attached hereto identified as such.

         
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C.§ 1
et seq.).

10 

         
“Company” means Pilgrim’s Pride Corporation, a Delaware corporation. 

         
“Consolidated Tangible Net
Worth” means, as of any date of
determination, Shareholders’ Equity, plus the outstanding principal
amount of Permitted Subordinated Indebtedness on such date, minus Intangible Assets
on such date. 

         
“Consolidated Total
Assets” means, on any date, the aggregate
amount of assets of the Company on a consolidated basis. 

         
“Credit Exposure” means, as to any Lender at any time, the sum of (a) such
Lender’s Revolving Exposure at such time, plus (b) an amount equal to the
aggregate principal amount of such Lender’s Term Loans outstanding at such time,
plus
(c) an amount equal to such Lender’s Applicable Percentage, if any, of the
aggregate principal amount of Protective Advances outstanding at such time.

         
“Default” means any event or condition which constitutes an Event of Default or
which upon notice, lapse of time or both would, unless cured or waived, become
an Event of Default. 

         
“Defaulting Lender” means any Lender or Voting Participant that, as reasonably
determined by the Administrative Agent, has (a) failed to fund any portion of
its Loans or participations in Letters of Credit or Swingline Loans within three
Business Days of the date required to be funded by it hereunder; (b) notified
any Borrower, the Administrative Agent, any Issuing Bank, the Swingline Lender
or any Lender in writing that it does not intend to comply with any of its
funding obligations under this Agreement or has made a public statement to the
effect that it does not intend to comply with its funding obligations under this
Agreement; (c) failed, within three Business Days after request by the
Administrative Agent, to confirm that it will comply with the terms of this
Agreement relating to its obligations to fund prospective Loans and
participations in then outstanding Letters of Credit and Swingline Loans; (d)
otherwise failed to pay over to the Administrative Agent or any other Lender any
other amount required to be paid by it hereunder within three Business Days of
the date when due, unless the subject of a good faith dispute, as reasonably
determined by the Administrative Agent; or (e)(i) become or is insolvent or has
a parent company that has become or is insolvent or (ii) become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee
or custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or
appointment or has a parent company that has become the subject of a bankruptcy
or insolvency proceeding, or has had a receiver, conservator, trustee or
custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or
appointment. 

         
“Delayed Draw Term
Lenders” means, as of any date of
determination, Lenders having a Delayed Draw Term Loan Commitment or outstanding
Delayed Draw Term Loans. 

         
“Delayed Draw Term Loan
Commitment” means (a) as to any Delayed Draw
Term Lender, the aggregate commitment of such Delayed Draw Term Lender to make
Delayed Draw Term Loans as set forth in the Commitment Schedule or in the most
recent Assignment and Assumption executed by such Delayed Draw Term Lender and
(b) as to all Delayed Draw Term Lenders, the aggregate commitment of all Delayed
Draw Term Lenders to make Delayed Draw Term Loans, which aggregate commitment
shall not exceed $400,000,000 on the Effective Date. After advancing the last
Delayed Draw Term Loan, each reference to a Delayed Draw Term Lender’s Delayed
Draw Term Loan Commitment shall refer to that Delayed Draw Term Lender’s
Applicable Percentage of the Delayed Draw Term Loans. 

11 

          “Delayed Draw Term
Loans” means the Delayed Draw Term Loans
extended by the Delayed Draw Term Lenders to the Borrowers pursuant to
Section 2.01(b). 

         
“Delayed Draw Term Note” means a promissory note of the Borrowers that is payable to
any Delayed Draw Term Lender, in substantially the form of Exhibit E-3, evidencing the
aggregate Indebtedness of the Borrowers to such Delayed Draw Term Lender
resulting from outstanding Delayed Draw Term Loans, and also means all other
promissory notes accepted from time to time in substitution therefor or renewal
thereof. 

         
“Deposit Account Control
Agreement” has the meaning assigned to such
term in the U.S. Security Agreement. 

         
“Dilution Factors” means, without duplication, with respect to any period, the
aggregate amount of all deductions, credit memos, returns, adjustments,
allowances, bad debt write-offs and other non-cash credits which are issued to
reduce accounts receivable in a manner consistent with current and historical
accounting practices of the Borrowers. 

         
“Dilution Ratio” means, at any date, the amount (expressed as a percentage)
equal to (a) the aggregate amount of the applicable Dilution Factors for the 12
most recently ended fiscal months divided
by (b) total gross sales for the 12 most recently ended fiscal
months. 

         
“Dilution Reserve” means, at any date, the product of (a) the excess of (i) the
applicable Dilution Ratio on such date over (ii) 5.00%,
multiplied by (b) the Eligible Accounts on such date. 

         
“Disclosed Matters” means the actions, suits and proceedings and the
environmental matters disclosed in Schedule
3.07. 

         
“Document” has the meaning assigned to such term in the U.S. Security Agreement.

         
“dollars” or “$” refers to lawful money of the United States. 

         
“Domestic Subsidiary” means any Subsidiary that is organized under the laws of the
United States, any State thereof or the District of Columbia. 

         
“EBITDA” means, for any period, the sum of (a) Net Income (or net loss) for such
period, plus (b) without duplication and solely to the extent deducted in determining
Net Income (or net loss) for such period, the sum of (i) Interest Expense for
such period, (ii) provisions for Taxes based on income, profits or capital for
such period, including, without limitation, State, foreign, franchise and
similar Taxes, and Tax Distributions made by the Company on a consolidated basis
during such period, (iii) consolidated depreciation expense of the Company for such period, (iv) consolidated amortization expense of
the Company for such period, (v) consolidated Restructuring Charges of the
Company for such period, (vi) any extraordinary, unusual or non-recurring
non-cash charges, expenses or losses for such period (but excluding any non-cash
charges, expenses or losses that relate to the write-down or write-off of
Inventory) and (vii) all non-cash charges, expenses or losses with respect to
the Company’s adoption of “fresh start” accounting policies, minus (c) without
duplication and solely to the extent included in determining Net Income, the sum
of (i) any extraordinary, unusual or non-recurring income or gains which were
included in the calculation of Net Income (or net loss) for such period, and
(ii) cash expenditures incurred during such period, the effect of which is to
reduce balance sheet provisions previously booked and treated as an
extraordinary, unusual or non-recurring non-cash expense, in each case
determined in accordance with GAAP for such period. 

12 

          “ECP Loan
Guarantor” means, with respect to any
transaction under a Secured Swap Agreement, a Loan Guarantor that, at the time
such transaction is entered into or, if later, when such Loan Guarantor becomes
a party hereto, is an “eligible contract participant” as defined in Section
1a(18) of the Commodity Exchange Act (and related regulations of the Commodities
Futures Trading Commission) by virtue of having total assets exceeding
$10,000,000 and/or satisfying any other criteria relevant to such status under
said Section 1a(18) (and related regulations). 

         
“Effective Date” means the date on which the conditions specified in Section
5.1 of the Amendment and Restatement Agreement are satisfied. 

         
“Eligible Accounts” means, at any time, the Accounts of the Borrowers and the
Loan Guarantors which the Administrative Agent determines in its Permitted
Discretion are eligible as the basis for the extension of Revolving Loans,
Swingline Loans and the issuance of Letters of Credit hereunder. Without
limiting the Administrative Agent’s discretion provided herein, Eligible
Accounts shall not include any Account: 

     (a)
which is not subject to a first priority
perfected security interest in favor of the Administrative Agent (for the
benefit of the Lender Parties); 

     (b)
which is subject to any Lien other than (i) a
Lien in favor of the Administrative Agent (for the benefit of the Lender
Parties), (ii) a Permitted Encumbrance which does not have priority over the
Lien in favor of the Administrative Agent (for the benefit of the Lender
Parties) or (iii) a Lien in respect of a Secured Grower Payable; provided that Accounts
shall not be deemed ineligible in respect of Liens arising under PACA, PSA or
other similar Requirements of Law to the extent that a Reserve is maintained in
respect of rights of sellers of livestock, poultry and perishable agricultural
commodities thereunder; 

     (c)
which is unpaid more than 61 days after the date
of the original invoice therefor, or which has been written off the books of
such Borrower or Loan Guarantor or otherwise designated as uncollectible;

13

     (d)
which is owing by an Account Debtor for which
more than 50% of the Accounts owing from such Account Debtor and its Affiliates
(in the case of Affiliates, solely to the extent that any Loan Party has
knowledge, after due inquiry, that such Persons are Affiliates of such Account
Debtor) are ineligible pursuant to paragraph
(c) above; 

     (e)
which is owing by an Account Debtor to the extent
the aggregate amount of Accounts owing from such Account Debtor and its
Affiliates (in the case of Affiliates, solely to the extent that any Loan Party
has knowledge, after due inquiry, that such Persons are Affiliates of such
Account Debtor) to all the Borrowers and the Loan Guarantors exceeds 15% (or
20%, if Wal-Mart is such Account Debtor and Wal-Mart’s securities are rated BBB-
or better by S&P or Baa3 or better by Moody’s at the time of determination)
of the aggregate amount of Eligible Accounts of all the Borrowers and the Loan
Guarantors; 

     (f)
with respect to which any (i) covenant has been
breached or (ii) representation or warranty is not true and correct in all
material respects, in each case to the extent contained in this Agreement or any
Security Agreement; provided that each such representation and warranty shall be true and
correct in all respects to the extent it is already qualified by a materiality
standard; 

     (g)
which (i) does not arise from the sale of goods
or performance of services in the ordinary course of business; (ii) is not
evidenced by an invoice or other documentation reasonably satisfactory to the
Administrative Agent which has been sent to the Account Debtor; (iii) represents
a progress billing; (iv) is contingent upon such Borrower’s or Loan Guarantor’s
completion of any further performance; (v) represents a sale on a bill-and-hold,
guaranteed sale, sale-and-return, sale on approval, consignment,
cash-on-delivery or any other repurchase or return basis; or (vi) relates to
payments of interest; 

     (h)
for which the goods giving rise to such Account
have not been shipped to the Account Debtor or for which the services giving
rise to such Account have not been performed by such Borrower or Loan Guarantor
or if such Account was invoiced more than once; 

     (i)
to the extent any check or other instrument of
payment has been returned uncollected for any reason; 

     (j)
which is owed by an Account Debtor which has (i)
applied for, suffered, or consented to the appointment of any receiver,
custodian, trustee, or liquidator of its assets; (ii) has had possession of all
or a material part of its property taken by any receiver, custodian, trustee or
liquidator; (iii) filed, or had filed against it, any request or petition for
liquidation, reorganization, arrangement, adjustment of debts, adjudication as
bankrupt, winding-up, or voluntary or involuntary case under any state or
Federal bankruptcy laws; (iv) has admitted in writing its inability, or is
generally unable to, pay its debts as they become due; (v) become insolvent; or
(vi) ceased operation of its business; 

14 

     (k)
which is payable by any Account Debtor which has
sold all or substantially all of its assets, to the extent that any Loan Party
has or should reasonably have had knowledge thereof; 

     (l)
which is owed by an Account Debtor which (i) does
not maintain its chief executive office in (A) the United States (including
Puerto Rico), or (B) solely with respect to Account Debtors of the Bermuda
Borrowers, Bermuda; or (ii) is not organized under the laws of (A) the U.S., any
state of the U.S. (including Puerto Rico) or the District of Columbia, or (B)
solely with respect to Account Debtors of the Bermuda Borrowers, Bermuda,
unless, in either case, such Account is backed by a Letter of Credit reasonably
acceptable to the Administrative Agent which is in the possession of, assigned
to and directly drawable by the Administrative Agent; provided that notwithstanding the
failure of such Borrower or Loan Guarantor to deliver to the Administrative
Agent any such Letters of Credit with respect to such Accounts, such Accounts
(in an aggregate amount not to exceed $30,000,000 at any time) shall constitute
Eligible Accounts (provided, further, that such Borrower or Loan Guarantor shall promptly deliver
to the Administrative Agent possession of any such Letters of Credit upon the
request of the Administrative Agent that is exercised in its Permitted
Discretion); 

     (m)
which is payable in any currency other than U.S.
dollars; 

     (n)
which is owed by (i) the government (or any
department, agency, public corporation, or instrumentality thereof) of any
country other than the United States (including Puerto Rico), unless such
Account is backed by a Letter of Credit reasonably acceptable to the
Administrative Agent which is in the possession of, assigned to and directly
drawable by the Administrative Agent; provided that notwithstanding the failure
of such Borrower or Loan Guarantor to deliver to the Administrative Agent any
such Letters of Credit with respect to such Accounts, such Accounts (in an
aggregate amount not to exceed $30,000,000 at any time) shall constitute
Eligible Accounts (provided, further, that such Borrower or Loan Guarantor shall promptly deliver
to the Administrative Agent any such Letters of Credit upon the request of the
Administrative Agent that is exercised in its Permitted Discretion); or (ii) the
government of the U.S., or any department, agency, public corporation or
instrumentality thereof, unless the Federal Assignment of Claims Act of 1940 (31
U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.), has been complied with to the
Administrative Agent’s reasonable satisfaction; 

     (o)
which is owed by any director, officer, employee
or Affiliate of any Loan Party; 

     (p)
which is owed by an Account Debtor or any
Affiliate of such Account Debtor (in the case of Affiliates, solely to the
extent that any Loan Party has knowledge, after due inquiry, that such Persons
are Affiliates of such Account Debtor) to which any Loan Party is indebted, but
only to the extent of such indebtedness or is subject to any security, deposit,
progress payment, retainage or other similar advance made by or for the benefit
of an Account Debtor, in each case to the extent thereof; 

15 

     (q)
which is subject to (i) any contra-receivable
(including any adjustment pursuant to a cost-plus arrangement) or allowance for
bad debt, but only to the extent of any such contra-receivable or allowance; or
(ii) any counterclaim, deduction, defense, setoff or dispute but only to the
extent of any such counterclaim, deduction, defense, setoff or dispute;

     (r)
which is evidenced by any promissory note,
chattel paper or instrument; 

     (s)
which is owed by an Account Debtor located in the
States of New Jersey, Minnesota, West Virginia or any other jurisdiction which
requires filing of a “Notice of Business Activities Report” or other similar
report in order to permit any Borrower or Loan Guarantor to which such Account
is owed to seek judicial enforcement in such jurisdiction of payment of such
Account, unless such Borrower or Loan Guarantor (i) has qualified to do business
in New Jersey, Minnesota, West Virginia or such other States, (ii) has filed a
Notice of Business Activities Report with the applicable division of taxation,
the department of revenue or with such other State offices, as appropriate, for
the then-current year, (iii) is exempt from such filing requirement or (iv) is
otherwise not required to make such filing pursuant to Requirements of Law;
provided
that such Accounts shall be Eligible Accounts, notwithstanding the failure to
comply with clauses (i)
through (iv) above, unless such Borrower or Loan Guarantor fails to make any such
filing promptly following (A) the occurrence and during the continuance of any
Event of Default or (B) a request therefor made by the Administrative Agent in
the exercise of its Permitted Discretion or the Required Lenders, at any time
that (1) any Default shall have occurred and be continuing or (2) Availability
shall be less than $100,000,000; 

     (t)
with respect to which such Borrower or Loan
Guarantor has made any agreement with the Account Debtor for any reduction
thereof, other than reductions, discounts and adjustments given in the ordinary
course of business, or any Account which was partially paid and such Borrower or
Loan Guarantor created a new receivable for the unpaid portion of such
Account; 

     (u)
which does not comply in all material respects
with Requirements of Law and regulations, whether Federal, state or local,
including without limitation the Federal Consumer Credit Protection Act, the
Federal Truth in Lending Act and Regulation Z of the Board; 

     (v)
which is for goods that have been sold under a
purchase order or pursuant to the terms of a contract or other agreement or
understanding (written or oral) that indicates or purports that any Person other
than such Borrower or Loan Guarantor has or has had an ownership interest in
such goods, or which indicates any party other than such Borrower or Loan
Guarantor as payee or remittance party; or 

     (w)
which the Administrative Agent determines, in
each case in its Permitted Discretion, may not be paid by reason of the Account
Debtor’s inability to pay or which the Administrative Agent otherwise determines
is unacceptable for any reason whatsoever. 

16 

          In the event that an outstanding Account with a face amount
equal to or greater than $5,000,000 which was previously an Eligible Account
ceases to be an Eligible Account hereunder, as measured from the immediately
preceding Borrowing Base Certificate delivered to the Administrative Agent, the
Borrower Representative shall notify the Administrative Agent thereof on and at
the time of submission to the Administrative Agent of the next Borrowing Base
Certificate. In determining the amount of an Eligible Account, the face amount
of an Account may, in the Administrative Agent’s Permitted Discretion, be
reduced by, without duplication, to the extent not reflected in such face
amount, (i) the amount of all accrued and actual discounts, claims, credits or
credits pending, promotional program allowances, price adjustments, finance
charges or other allowances (including any amount that such Borrower or Loan
Guarantor may be obligated to rebate to an Account Debtor pursuant to the terms
of any agreement or understanding (written or oral)); and (ii) the aggregate
amount of all cash received in respect of such Account but not yet applied by
such Borrower or Loan Guarantor to reduce the amount of such Account. Standards
of eligibility may be made more restrictive from time to time solely by the
Administrative Agent in the exercise of its Permitted Discretion, with any such
changes to be effective three Business Days after delivery of notice thereof to
the Borrower Representative. With respect to any Letter of Credit delivered by
such Borrower or Loan Guarantor to the Administrative Agent pursuant to
paragraphs (l) and (n) above, the Administrative Agent shall make drawings under such Letter of
Credit promptly following a request therefor by the Borrower Representative.

         
“Eligible Incremental
Lender” means, with respect to any
Incremental Commitment, a prospective Lender that would meet the qualifications
to be an assignee set forth in Sections
9.04(b)(i) and (b)(ii)(C) (subject to such consents,
if any, that may be required pursuant to Section 9.04(b)(i)). 

         
“Eligible Inventory” means, at any time, the Inventory of the Borrowers and the
Loan Guarantors which the Administrative Agent determines in its Permitted
Discretion is eligible as the basis for the extension of Revolving Loans,
Swingline Loans and the issuance of Letters of Credit hereunder. Without
limiting the Administrative Agent’s discretion provided herein, Eligible
Inventory shall not include any Inventory: 

     (a)
which does not consist solely of feed grains,
grain in transit, feed, ingredients, live and dressed broiler chickens,
commercial eggs, breeder hens, breeder pullets, hatching eggs, commercial hens,
commercial pullets, prepared food products and vaccines on the farm; 

     (b)
which is not subject to a first priority
perfected Lien in favor of the Administrative Agent (for the benefit of the
Lender Parties); 

     (c)
which is subject to any Lien other than (i) a
Lien in favor of the Administrative Agent (for the benefit of the Lender
Parties), (ii) a Permitted Encumbrance which does not have priority over the
Lien in favor of the Administrative Agent (for the benefit of the Lender
Parties) or (iii) a Lien in respect of a Secured Grower Payable; provided that Inventory
shall not be deemed ineligible in respect of Liens arising under PACA, PSA or
other similar Requirements of Law to the extent that a Reserve is maintained in respect of rights of sellers of livestock,
poultry and perishable agricultural commodities thereunder 

17 

     (d) which is, in the Administrative Agent’s Permitted Discretion, slow
moving, obsolete, unmerchantable, defective, used, unfit for sale or
unacceptable due to age, type, category and /or quantity; 

     (e)
with respect to which any (i) covenant has been
breached or (ii) representation or warranty is not true and correct in all
material respects, in each case to the extent contained in this Agreement or any
Security Agreement; provided that each such representation and warranty shall be true and
correct in all respects to the extent it is already qualified by a materiality
standard; 

     (f)
in which any Person other than such Borrower or
Loan Guarantor shall (i) have any direct or indirect ownership, interest or
title to such Inventory or (ii) be indicated on any purchase order or invoice
with respect to such Inventory as having or purporting to have an interest
therein; 

     (g)
which constitutes bill-and-hold goods, goods that
are returned or goods held on consignment; 

     (h)
which is not located in the United States
(including Puerto Rico) or, solely with respect to Inventory of the Bermuda
Borrowers, Bermuda, or is in transit with a carrier from vendors and suppliers;
provided
that Inventory consisting of grain in transit in the United States from vendors
and suppliers may be included as eligible pursuant to this paragraph (h) if either (i)
(A) the Administrative Agent shall have received (1) access, during normal
business hours and at other times reasonably requested by the Administrative
Agent, to a true and correct copy of the bill of lading and other shipping
documents for such Inventory; (2) evidence of satisfactory casualty insurance
naming the Administrative Agent as loss payee and otherwise covering such risks
as the Administrative Agent may reasonably request; (3) confirmation that the
applicable Borrower or Loan Guarantor has paid for the goods; and (4) if the
bill of lading is (x) non-negotiable, a duly executed Collateral Access
Agreement from the applicable carrier of such Inventory, or (y) negotiable,
confirmation that the bill is issued in the name of such Borrower or Loan
Guarantor and consigned to the order of the Administrative Agent, and an
acceptable agreement has been executed with such Borrower’s or Loan Guarantor’s
carrier, in which the carrier agrees that it holds the negotiable bill as agent
for the Administrative Agent and has granted the Administrative Agent access to
the Inventory; (B) the carrier is not an Affiliate of the applicable vendor or
supplier; and (C) the carrier is not an Affiliate of any Borrower or Loan
Guarantor; or (ii) a Rent or Collateral Access Reserve has been established in
an amount determined by the Administrative Agent in its Permitted Discretion in
accordance with the definition of “Rent or Collateral Access
Reserve”; 

     (i)
which consists of display items, packing or
shipping materials, manufacturing supplies, replacement parts or cooking
ingredients; 

18 

     (j)
other than Inventory permitted to be included
under paragraph (h) above, which is located in any location leased by such Borrower or Loan
Guarantor unless (i) the lessor has delivered to the Administrative Agent a
Collateral Access Agreement or (ii) a Rent or Collateral Access Reserve has been
established in an amount determined by the Administrative Agent in its Permitted
Discretion in accordance with the definition of “Rent or Collateral Access
Reserve”; 

     (k)
other than Inventory permitted to be included
under paragraph (h) above, which is located in any third party location (including any
warehouse) or is in the possession of a bailee (other than a third party
processor), in each case which is not an independent contract grower
(provided
that Inventory located with, or in the possession of, an independent contract
grower pursuant to an agreement entered into after the Prior Effective Date
shall be excluded as Eligible Inventory unless such agreement includes a
provision granting reasonable access, during the continuance of any Event of
Default, to the Administrative Agent to the property of any such contract grower
where any such Inventory is located), and is not evidenced by a Document (other
than bills of lading to the extent permitted pursuant to paragraph (h) above),
unless (i) such third party or bailee has delivered to the Administrative Agent
a Collateral Access Agreement and such other documentation as the Administrative
Agent may require in its Permitted Discretion or (ii) an appropriate Rent or
Collateral Access Reserve has been established by the Administrative Agent in
its Permitted Discretion; 

     (l)
other than Inventory permitted to be included
under paragraph (h) or (k) above, which is at a third party location or outside processor, or is
in-transit to or from such third party location or outside processor;

     (m)
which is the subject of a consignment by such
Borrower or Loan Guarantor as consignor; 

     (n)
which contains or bears any intellectual property
rights licensed to such Borrower or Loan Guarantor unless the Administrative
Agent is reasonably satisfied that it may sell or otherwise dispose of such
Inventory on satisfactory terms without (i) infringing the rights of such
licensor, (ii) violating any contract with such licensor or (iii) incurring any
liability with respect to payment of royalties other than royalties incurred
pursuant to sale of such Inventory under the current licensing agreement;

     (o)
which is not reflected in a current perpetual
inventory report, or other inventory report that is reasonably acceptable to the
Administrative Agent, of such Borrower or Loan Guarantor; 

     (p)
which does not conform in all material respects
to all standards imposed by any applicable Governmental Authority; 

     (q)
for which reclamation rights have been asserted
by the seller; or 

     (r)
which the Administrative Agent otherwise
determines, in its Permitted Discretion, is unacceptable for any reason
whatsoever. 

19 

          In the
event that Inventory with a fair market value equal to or greater than
$5,000,000 which has not been sold and was previously Eligible Inventory ceases
to be Eligible Inventory hereunder, as measured from the immediately preceding
Borrowing Base Certificate delivered to the Administrative Agent, the Borrower
Representative shall notify the Administrative Agent thereof on and at the time
of submission to the Administrative Agent of the next Borrowing Base
Certificate. Standards of eligibility may be made more restrictive from time to
time solely by the Administrative Agent in the exercise of its Permitted
Discretion, with any such changes to be effective three Business Days after
delivery of notice thereof to the Borrower Representative. 

         
“Environmental Laws” means all applicable laws, rules, regulations, codes,
ordinances, orders, rules of common law, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the environment, preservation or
reclamation of natural resources, worker health and safety, or the management,
release or threatened release of any Hazardous Material in the environment.

         
“Environmental
Liability” means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of any Borrower or any Subsidiary
directly or indirectly resulting from or based upon (a) any violation of any
Environmental Law; (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials; (c) exposure to any Hazardous
Materials; (d) the release or threatened release of any Hazardous Materials into
the environment; or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing. 

         
“Equity Interests” means shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other ownership interests in a Person, and any warrants, options or
other rights entitling the holder thereof to purchase or acquire any such equity
or other ownership interest. 

         
“ERISA” means the Employee Retirement Income Security Act of 1974. 

         
“ERISA Affiliate” means any trade or business (whether or not incorporated)
that, together with a Borrower, is treated as a single employer under Section
414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under Section 414 of
the Code. 

         
“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA
or the regulations issued thereunder with respect to a Plan (other than a
reportable event for which the 30-day notice period is extended or the report is
waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan; (d) the incurrence by any Borrower or any of
its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by any Borrower or any ERISA
Affiliate from the PBGC or a plan administrator of any notice relating to an
intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (f) the incurrence by any Borrower or any of its ERISA Affiliates of
any liability with respect to the withdrawal or partial withdrawal from any Plan
or Multiemployer Plan; or (g) the receipt by any Borrower or any ERISA Affiliate
of any notice, or the receipt by any Multiemployer Plan from any Borrower or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent
or in reorganization, within the meaning of Title IV of ERISA. 

20 

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are accruing interest
at a rate determined by reference to the Adjusted LIBO Rate. 

         
“Event of Default” has the meaning assigned to such term in Article VII.

         
“Excess Cash Flow” means, for any Fiscal Year: 

(a) EBITDA of
the Company on a consolidated basis for such Fiscal Year; minus

(b) the
aggregate amount actually paid or payable by the Company on a consolidated basis
in cash for such Fiscal Year on account of Taxes based on income, profits or
capital for such period, including, without limitation, State, foreign,
franchise and similar Taxes, and Tax Distributions; minus

(c) the
aggregate amount actually paid or payable by the Company on a consolidated basis
in cash for such Fiscal Year on account of Capital Expenditures (excluding the
principal amount of Indebtedness incurred in connection with such expenditures
and any such expenditures financed with the proceeds of asset dispositions that
have not yet been used to pay down the Loans); minus

(d) the
aggregate amount actually paid or payable by the Company on a consolidated basis
in cash for such Fiscal Year on account of Interest Expense; minus

(e) the
aggregate amount of all regularly scheduled principal payments (including
payments of revolving loans on the maturity date with respect to such revolving
loans) in respect of (i) the Term Loans and (ii) other Total Indebtedness, in
each case to the extent actually paid or payable by the Company on a
consolidated basis in cash during such Fiscal Year; minus 

(f) the
aggregate amount of all Restructuring Charges paid or payable by the Company on
a consolidated basis in cash during such Fiscal Year; minus 

(g) the sum of
(i) EBITDA included above and related to the undistributed earnings of any
Subsidiary to the extent that it exceeds the amount that is permitted to be
declared or paid in dividends or similar distributions by such Subsidiary to a
Loan Party by the terms of any contractual obligation (other than under any Loan
Document) or Requirement of Law applicable to such Subsidiary,
plus
(ii) to the extent that no contractual obligation or Requirement of Law would
restrict the declaration or payment of dividends or similar distributions of all
or a portion of such earnings and no such declaration or payment is made, the
amount of Taxes that would be payable if such declaration or payment had been
made.

21 

          “Excluded Swap
Obligation” means, with respect to any Loan
Guarantor, any obligations under a Secured Swap Agreement if, and to the extent
that, all or a portion of the Guarantee of such Loan Guarantor of, or the grant
under a Loan Document by such Loan Guarantor of a security interest to secure,
such obligations (or any Guarantee thereof) is or becomes illegal under the
Commodity Exchange Act (or the application or official interpretation thereof)
by virtue of such Loan Guarantor’s failure for any reason to constitute an
“eligible contract participant” as defined in the Commodity Exchange Act
(determined after giving effect to Section
11.08) at the time of the Guarantee of such
Loan Guarantor, or grant by such Loan Guarantor of a security interest, becomes
effective with respect to such obligations. 

         
“Excluded Taxes” means, with respect to the Administrative Agent, any Lender,
any Issuing Bank or any other recipient of any payment to be made by or on
account of any obligation of any Borrower under any Loan Document, Taxes imposed
on or measured by net income (however denominated), franchise Taxes, and branch
profits Taxes, in each case, (a) imposed as a result of such recipient being
organized under the laws of, or having its principal office or, in the case of
any Lender, its applicable lending office located in, the jurisdiction imposing
such Tax (or any political subdivision thereof) or (b) imposed as a result of a
present or former connection between such recipient and the jurisdiction
imposing such Tax (other than connections arising solely from (i) such recipient
having executed, delivered, become a party to, performed its obligations under,
received payments under, received or perfected a security interest under, or
enforced any Loan Document, or (ii) sold or assigned an interest in any Loan or
Loan Document). 

         
“Excluded Transactions” is defined in Section
6.09(c)(v). 

         
“Exemption Certificate” has the meaning assigned to such term in Section 2.18(f)(ii).

         
“Farm Credit System
Institution” means any farm credit bank, any
Federal land bank association, any production credit association, the banks for
cooperatives and such other institutions as may be a part of the Farm Credit
System and chartered by and subject to regulation by the Farm Credit
Administration. 

         
“Federal Funds Effective
Rate” means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it. 

         
“FEMA” means the Federal Emergency Management Agency. 

22 

         
“Financial Officer” means the chief financial officer, principal accounting
officer, treasurer, vice president and assistant to the treasurer and chief
financial officer, or controller (or other officer having similar duties) of a
Borrower. 

         
“First-Tier Foreign DRE” means any Foreign DRE that is owned directly, or indirectly
through one or more Foreign DREs, by the Company or a Domestic Subsidiary.

         
“First-Tier Foreign
Subsidiary” means any Foreign Subsidiary
owned directly by one or more of the Company or its Domestic Subsidiaries, or
the First-Tier Foreign DREs. 

         
“Fiscal Quarter” means each of the four fiscal quarters of a Fiscal Year,
each of which shall end on a Sunday and shall consist of 13 or 14 weeks, as
appropriate with respect to such Fiscal Year.

         
“Fiscal Year” means the 52- or 53-week fiscal year of the Company ending on the last
Sunday in December. 

         
“Flood Insurance Acts” means, collectively, (a) the National Flood Insurance Act of
1968 and (b) the Flood Disaster Protection Act of 1973. 

         
“Foreign DRE” means a Foreign Subsidiary that for U.S. Federal income tax purposes is
classified as a partnership or that is “disregarded as an entity separate from
its owner” (within the meaning of Treas. Reg. §301.7701-2), but not any such
Foreign Subsidiary whose assets consist solely of stock of a “controlled foreign
corporation” (within the meaning of Section 957(a) of the Code). 

         
“Foreign Lender” means any Lender that is organized under the laws of a
jurisdiction other than the United States, each State thereof or the District of
Columbia. 

         
“Foreign Subsidiary” means each Subsidiary of the Company that is not a Domestic
Subsidiary. 

         
“FSA” means the Food Security Act of 1985, 7 U.S.C. Section 1631
et
seq.

         
“Funding Accounts” means those deposit accounts of the Borrowers to which the
Lenders are authorized to transfer the proceeds of any Borrowings requested or
authorized pursuant to this Agreement.

         
“GAAP” means generally accepted accounting principles in the United States.

         
“Governmental Authority” means the government of the United States, any other nation
or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government. 

         
“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent
or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any
other Person (the “primary
obligor”) in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof; (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof; (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation; or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course
of business. 

23 

         
“Guaranteed Obligations” has the meaning assigned to such term in Section 10.01. 

         
“Hazardous Materials” means all explosive or radioactive substances or wastes and
all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all other
substances or wastes of any nature regulated pursuant to any Environmental Law.

         
“Improvements” means, with respect to any Mortgaged Property, all
buildings, structures and other improvements now or hereafter existing, erected
or placed on or under the Mortgaged Property, or in any way used in connection
with the use, enjoyment, occupancy or operation of such Mortgaged Property or
any portion thereof, and all fixtures of every kind and nature whatsoever now or
hereafter owned by any of the Borrowers or the Subsidiaries and used or procured
for use in connection with such Mortgaged Property. 

         
“Incremental Commitment Joinder
Agreement” has the meaning assigned to such
term in Section 2.10(c). 

         
“Incremental Commitment
Request” has the meaning assigned to such
term in Section 2.10(b). 

         
“Incremental
Commitments” means, individually or
collectively as the context may require, Incremental Revolving Commitments and
Incremental Term Commitments. 

         
“Incremental Revolving
Commitments” has the meaning assigned to such
term in Section 2.10(a)(i). 

         
“Incremental Term
Commitments” has the meaning assigned to such
term in Section 2.10(a)(ii). 

         
“Indebtedness” of any Person means, without duplication:

(a) all
obligations of such Person (i) for borrowed money or (ii) with respect to
deposits or advances of any kind, in each case owed by such Person to a third
Person;

24 

(b) all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments;

(c) all obligations of such Person
under conditional sale or other title retention agreements relating to property
acquired by such Person;

(d) all obligations of such Person in
respect of the deferred purchase price of property or services;

(e) all Indebtedness of others secured
by (or, if all conditions thereto have been satisfied, for which the holder of
such Indebtedness has a contingent right to be secured by) any Lien on property
owned or acquired by such Person, whether or not the Indebtedness secured
thereby has been assumed; provided that the amount of Indebtedness of any Person
pursuant to this paragraph (e) shall be deemed to equal the lesser of (i) the aggregate
unpaid amount of such Indebtedness secured by such Lien and (ii) the fair market
value of the property encumbered thereby as determined by such Person in good
faith;

(f) all Guarantees by such Person of
Indebtedness of others;

(g) all Capital Lease Obligations of
such Person;

(h) the principal components of all
obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty;

(i) the principal components of all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances;

     (j)
obligations under any liquidated earn out, to the extent shown in the
“Liabilities” section of the consolidated balance sheet of the Company;
and

    
(k) any other Off Balance Sheet Liability.

          The
Indebtedness of any Person shall include the Indebtedness of any other Person
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.
Indebtedness shall exclude (i) accrued expenses and accounts and trade payables
incurred in the ordinary course of business, (ii) liabilities with respect to
Intercompany IRBs, (iii) reserves for deferred income taxes, (iv) endorsements
for collection or deposit in the ordinary course of business, and (v) any other
indebtedness or portion thereof with respect to which and to the extent the
trustee or other applicable depository in respect of such indebtedness holds
cash or cash equivalents in an amount sufficient to repay the principal, and
accrued interest on, such indebtedness, and the foregoing shall constitute a
redemption or a complete defeasance of such indebtedness pursuant to the
applicable agreement governing such indebtedness. 

         
“Indemnified Taxes” means Taxes other than Excluded Taxes. 

25

         
“Indemnitee” has the meaning assigned to such term in Section 9.03(b). 

         
“Information” has the meaning assigned to such term in Section 9.12. 

         
“Information Memorandum” means the Bank Meeting presentation dated July 24, 2013
relating to the Borrowers and the Transactions.

         
“ING” means ING Capital LLC.

         
“Initial Farm Credit
Participants” has the meaning assigned to
such term in Section 9.04(g). 

         
“Intangible Assets” means assets of the Company on a consolidated basis that are
considered to be intangible assets under GAAP, including customer lists,
goodwill, copyrights, trade names, trademarks, patents, franchises, licenses,
unamortized deferred charges, unamortized debt discount and capitalized research
and development costs. 

         
“Intercompany IRBs” means any industrial revenue bonds, notes, debentures or
similar instruments issued by a Governmental Authority on behalf of the Company
or a Subsidiary that are (a) owned exclusively by the Company or a Subsidiary
and (b) subordinated to the repayment of the Secured Obligations on terms
reasonably satisfactory to the Administrative Agent.

         
“Intercreditor
Agreement” means the Intercreditor Agreement,
in substantially the form of Exhibit
O or such other form as the Administrative
Agent may reasonably agree to from time to time, among each Person that is, from
time to time, a lender or other obligee with respect to any Permitted
Subordinated Indebtedness, the Loan Parties and the Administrative
Agent.

         
“Interest Election
Request” means a request, in substantially
the form of Exhibit C, by the Borrower
Representative to convert or continue a Borrowing, in each case in accordance
with Section 2.08. 

         
“Interest Expense” means, with reference to any period, total interest expense
(including that attributable to Capital Lease Obligations required to be
capitalized in accordance with GAAP, the amortization of debt discounts, the
amortization of all fees payable in connection with the incurrence of
Indebtedness to the extent included in interest expense and capitalized
interest) of the Company on a consolidated basis for such period with respect to
all outstanding Indebtedness of the Company on a consolidated basis (including
all commissions, discounts and other fees and charges owed with respect to
letters of credit and bankers’ acceptance financing and net costs under Swap
Agreements in respect of interest rates to the extent such net costs are
allocable to such period), all of the foregoing calculated on a consolidated
basis for the Company for such period. 

         
“Interest Payment Date” means (a) with respect to any ABR Loan (including any
Swingline Loan) or Term B-2 Loan, (i) the 15th day of each April,
July, October and January and (ii) the Maturity Date; and (b) with respect to
any Eurodollar Loan, (i) the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period and (ii) the
Maturity Date. 

26

         
“Interest Period” means with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
thereafter, as the Borrower Representative may elect; provided that (a) if any Interest
Period would end on a day other than a Business Day, such Interest Period shall
be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day; and (b) any Interest Period
that commences on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the last calendar month of
such Interest Period) shall end on the last Business Day of the last calendar
month of such Interest Period. For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall
be the effective date of the most recent conversion or continuation of such
Borrowing. 

         
“Inventory” has the meaning assigned to such term in the U.S. Security Agreement.

         
“Inventory Reserves” shall mean reserves allocable to Eligible Inventory
determined on a consolidated basis in accordance with GAAP and any other reserve
as deemed appropriate by the Administrative Agent in its Permitted Discretion
from time to time. 

         
“Investment” by any Person in any other Person means (a) any direct or indirect
loan, advance or other extension of credit or capital contribution to or for the
account of such other Person (by means of any transfer of cash or other property
to any Person or any payment for property or services for the account or use of
any Person, or otherwise); (b) any direct or indirect purchase or other
acquisition of any Equity Interests, bond, note, debenture or other debt or
equity security or evidence of Indebtedness, or any other ownership interest
(including the purchase price of any option, warrant or any other right to
acquire any of the foregoing), issued by such other Person, whether or not such
acquisition is from such or any other Person; (c) any direct or indirect payment
by such Person on a Guarantee of any obligation of or for the account of such
other Person or any direct or indirect issuance by such Person of such a
Guarantee (provided that for purposes of Section
6.04, payments under Guarantees not exceeding
the amount of the Investment attributable to the issuance of such Guarantee will
not be deemed to result in an increase in the amount of such Investment); (d)
any purchase or other acquisition (in one transaction or a series of
transactions) of all or substantially all assets of another Person or any assets
of any other Person constituting a business unit (in each case, whether through
purchase of assets, merger or otherwise); or (e) any other investment of cash or
other property by such Person in or for the account of such other Person. Any
repurchase by a Borrower of its own Equity Interests or Indebtedness shall not
constitute an Investment for purposes of this Agreement. The amount of any
Investment shall be the original principal or capital amount thereof less all
returns of principal or equity thereon (and without adjustment by reason of the
financial condition of such other Person) and shall, if made by the transfer or
exchange of property other than cash, be deemed to have been made in an original
principal or capital amount equal to the fair market value of such property at
the time of such transfer or exchange. In addition, any determination of the
amount of an Investment shall include all cash and non-cash consideration paid by or on behalf of such Person or any of its subsidiaries in connection with such Investment,
including the fair market value of all Equity Interests issued or transferred to
the sellers thereof, all indemnities, earnouts and other contingent payment
obligations of such Person set forth in the “Liabilities” section of the balance
sheet of such Person, and the aggregate amounts paid or to be paid under
noncompete, consulting and similar agreements (other than agreements relating to
the provision of services on terms at least as favorable to the Company or the
Subsidiaries as would have been obtained if negotiated on an arms’-length basis
with a third Person) with the sellers thereof, and all assumptions of Total
Indebtedness in connection therewith. 

27

         
“IP Security Agreements” means any patent security agreement, trademark security
agreement, copyright security agreement or other agreement which conveys or
evidences a Lien in favor of the Administrative Agent, for the benefit of the
Lender Parties, or intellectual property of a Loan Party, including any
amendment, modification or supplement thereto. 

         
“Issuance Request” means a request, in substantially the form of
Exhibit B,
by the Borrower Representative for the issuance of a Letter of Credit.

         
“Issuing Banks” means, individually or collectively, in the case of each
Letter of Credit, CoBank, FCB and any other Lender proposed by the Borrower
Representative that (a) agrees in its sole discretion to act as an Issuing Bank
and (b) is reasonably acceptable to the Administrative Agent, each in its
capacity as an issuer of Letters of Credit hereunder, and its successors and
assigns in such capacity as provided in Section 2.06(i). Each Issuing Bank
referred to in clause (a) of this definition, may, in its sole discretion, arrange for
one or more Letters of Credit to be issued by Affiliates of such Issuing Bank,
in which case the term “Issuing Bank” shall include any such Affiliate with
respect to Letters of Credit issued by such Affiliate.

         
“Joinder Agreement” has the meaning assigned to such term in Section 5.13(a).

         
“Joint Bookrunners” means, individually or collectively as the context may
require, CoBank, Rabobank, BMO and ING in their respective capacities as joint
bookrunners hereunder, and each of their successors and assigns in such
capacity. 

         
“Joint Documentation
Agents” means, individually or collectively
as the context may require, Bank of America, N.A., JPMorgan Chase Bank, N.A.,
Société Générale Americas Securities, LLC and Wells Fargo Bank, National
Association in their respective capacities as joint bookrunners hereunder, and
each of their successors and assigns in such capacity. 

         
“Joint Lead Arrangers” means, individually or collectively as the context may
require, CoBank, Rabobank, BMO and ING, in their respective capacities as joint
lead arrangers hereunder, and each of their successors and assigns in such
capacity. 

         
“Joint Syndication
Agents” means, individually or collectively
as the context may require, CoBank, Rabobank, BMO and ING, in their respective
capacities as joint syndication agents hereunder, and each of their successors
and assigns in such capacity.

28

         
“LC Collateral Account” means, individually or collectively as the context may
require, the U.S. LC Collateral Account and the Non-U.S. LC Collateral Account.

         
“LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter
of Credit. 

         
“LC Exposure” means, at any time, the sum of the Commercial LC Exposure and the
Standby LC Exposure. The LC Exposure of any Revolving Lender at any time shall
be its Applicable Percentage of the aggregate LC Exposure at such time.

         
“Lender Parties” means, individually or collectively as the context may
require, the Agents, the Joint Bookrunners, the Lenders, the Voting Participants
and the Issuing Banks. 

         
“Lenders” means the Persons (other than the Borrowers) that are parties to this
Agreement on the Effective Date and any other Person that shall have become a
party hereto pursuant to an Assignment and Assumption, other than any such
Person that ceases to be a party hereto pursuant to an Assignment and
Assumption. Unless the context otherwise requires, the term “Lenders” includes the
Swingline Lender. 

         
“Letter of Credit” means any Commercial Letter of Credit or Standby Letter of
Credit issued pursuant to this Agreement.

         
“Leverage Ratio” means, on any date, the ratio of (a) Senior Indebtedness on
such date, minus the aggregate amount of cash and Permitted Investments of the Company
and its Subsidiaries on such date to (b) EBITDA for the period of four
consecutive Fiscal Quarters ended on such date. 

         
“LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, the rate published by Bloomberg Information Services (or on any
successor or substitute page of such Service, or any successor to or substitute
for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Administrative Agent
from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period, as the rate for dollar deposits having a maturity comparable to
such Interest Period. In the event that such rate is not available at such time
for any reason, then the “LIBO
Rate” with respect to such Eurodollar
Borrowing for such Interest Period shall be the rate at which dollar deposits of
$5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period. 

         
“Lien” means, with respect to any asset, (a) any mortgage, deed of trust,
lien, pledge, hypothecation, encumbrance, charge or security interest in, on or
of such asset; (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset; and (c) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities (it being
understood that a purchase and sale agreement or similar agreement in respect of
Equity Interests shall not be considered a purchase option, call or similar
right of a third party for purposes of this clause (c)). 

29

         
“Loan
Documents” means this Agreement, the
Amendment and Restatement Agreement, any Notes issued pursuant to this
Agreement, any Letters of Credit applications, the Collateral Documents, the
U.S. Guaranty, the Bermuda Guaranty, the Intercreditor Agreement and all other
agreements, instruments, documents and certificates identified in or entered
into pursuant to Section 4.01 or the other terms of this Agreement, in each case executed
by or on behalf of any Loan Party and delivered to, or in favor of, the
Administrative Agent or any other Lender Party in connection with any of the
foregoing agreements, instruments and documents. 

         
“Loan Guarantor” means (a) with respect to the U.S. Secured Obligations, each
U.S. Loan Guarantor; and (b) with respect to the Bermuda Secured Obligations,
each Loan Party and any other Person that becomes a Loan Guarantor pursuant to
Sections 5.13(a) and (c). 

         
“Loan Guaranty” means, individually or collectively as the context may
require, the U.S. Guaranty and the Bermuda Guaranty. 

         
“Loan Parties” means, individually or collectively as the context may
require, the U.S. Loan Parties and the Bermuda Loan Parties. 

         
“Loans” means the loans and advances made by the Lenders pursuant to this
Agreement, including Swingline Loans and Protective Advances. 

         
“Lock Box Agreement” means, individually and collectively, each “Lock Box
Agreement” referred to in the U.S. Security Agreement. 

         
“Loss” has the meaning assigned to such term in Section 9.03(b). 

         
“Make-Whole Amount” has the meaning assigned to such term in Section 2.17(b). 

         
“Management Fees” means any management fees, consulting fees, advisory fees or
other similar fees paid to the Parent Entity or any Affiliate thereof; provided
that the term Management Fees shall not include costs and expenses of the Parent
Entity incurred in connection with overhead services provided by the Parent
Entity to the Company and the Subsidiaries. 

         
“Matched Maturity U.S. Treasury
Rate” has the meaning assigned to such term
in Section 2.17(b). 

         
“Material Adverse
Effect” means a material adverse effect on
(a) the business, assets, property, operations or condition, financial or
otherwise, of the Company and the Subsidiaries taken as a whole; (b) the ability
of the Loan Parties, taken as a whole, to perform their obligations under the
Loan Documents to which they are party; (c) the Collateral, the Administrative
Agent’s Liens (for the benefit of the Lender Parties) on the Collateral or the
priority of such Liens; or (d) the legality, validity, binding effect or
enforceability against any Loan Party of the Loan Documents or the rights of, or
benefits available to, the Administrative Agent or any other Lender Party under
the Loan Documents. 

30

         
“Material Agreements” means, collectively, each agreement and contract to which
any Loan Party is a party as of the Effective Date that, if terminated or
breached, could reasonably be expected to result in a Material Adverse Effect.

         
“Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or
more of the Company and the Subsidiaries in an aggregate outstanding principal
amount exceeding $25,000,000. For purposes of determining Material Indebtedness,
the “obligations” of any Borrower or any Subsidiary in respect of any Swap
Agreement at any time shall be the maximum aggregate amount (giving effect to
any netting agreements) that such Borrower or such Subsidiary would be required
to pay if such Swap Agreement were terminated at such time. 

         
“Material Subsidiary” means any Subsidiary of the Company that is a Domestic
Subsidiary or a First-Tier Foreign DRE and (a) the portion of Consolidated Total
Assets attributable, on a stand-alone basis, to such Subsidiary exceeds 5% of
the Consolidated Total Assets as of the end of the most recently completed
Fiscal Quarter for which financial statements have been delivered pursuant to
Section 5.01; or (b) the portion of EBITDA (after excluding all intercompany
transactions) attributable, on a stand-alone basis, to such Subsidiary exceeds
5% of EBITDA as of the end of the most recently completed eight Fiscal Quarters
for which financial statements have been delivered pursuant to Section 5.01;
provided
that (i) any Domestic Subsidiary or First-Tier Foreign DRE that directly or
indirectly owns a Material Subsidiary shall itself be a Material Subsidiary and
(ii) in the event that Domestic Subsidiaries or First-Tier Foreign DREs that
would otherwise not be Material Subsidiaries shall in the aggregate account for
a percentage in excess of 10% of the Consolidated Total Assets or 10% of EBITDA
as of the end of and for the most recently completed Fiscal Quarter for which
financial statements have been delivered pursuant to Section 5.01, then one or more of such
Subsidiaries designated by the Company (or, if the Company shall make no
designation, one or more of such Subsidiaries in descending order based on their
respective contributions to Consolidated Total Assets), shall be included as
Material Subsidiaries to the extent necessary to eliminate such
excess. 

         
“Maturity Date” means (a) with respect to the Revolving Loans (including
Swingline Loans), the fifth anniversary of the Effective Date or any earlier
date on which the Revolving Commitments are reduced to zero or otherwise
terminated pursuant to the terms hereof; (b) with respect to the Delayed Draw
Term Loans, the fifth anniversary of the Effective Date; and (c) with respect to
the Term B Loans, December 28, 2014.

         
“Maximum Liability” has the meaning assigned to such term in Section 10.09. 

         
“Maximum Rate” has the meaning assigned to such term in Section 9.17. 

         
“Mexican Credit
Facility” means, collectively, (a) that
certain Amended and Restated Credit Agreement, dated as of October 19, 2011,
among PPC Mexico, the other borrower party thereto, the guarantors party
thereto, the lenders party thereto and ING, as agent for the lenders, (b) the
guaranty set forth therein, (c) the Pledge Agreement (as defined therein) and
(d) all other agreements, instruments, documents and certificates entered into
by PPC Mexico and its subsidiaries in connection therewith. 

31

         
“Minimum Availability
Period” means any period (a) commencing when
Availability is on any date less than an amount equal to the lesser of (i) 20%
of the aggregate Revolving Commitments then in effect and (ii) $100,000,000; and
(b) ending after Availability is equal to or greater than an amount equal to the
lesser of (i) 20% of the aggregate Revolving Commitments then in effect and (ii)
$100,000,000 for a period of 30 consecutive days for purposes of the definition
of “Weekly Reporting Period”.

         
“Moody’s” means Moody’s Investors Service, Inc. 

         
“Mortgaged Property” means the real properties referred to on Schedule 4.01(n).

         
“Mortgages” means any mortgage, deed of trust or other agreement, in substantially
the form of Exhibit G, in each case including such provisions as shall be necessary
to conform each such document to Requirements of Law, which conveys or evidences
a Lien in favor of the Administrative Agent, for the benefit of the Lender
Parties, on the real property and fixtures of a Loan Party described therein to
secure the Secured Obligations. 

         
“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3)
of ERISA. 

         
“Net Income” means, for any period, the consolidated net income (or loss) of the
Company, determined on a consolidated basis; provided that there shall be excluded
(a) the income (or deficit) of any Person accrued prior to the date it becomes a
Subsidiary or is merged into or consolidated with the Company or any of the
Subsidiaries; and (b) the income (or deficit) of any Person (other than a
Subsidiary) in which the Company or any of the Subsidiaries has an ownership
interest, except to the extent that any such income is actually received by the
Company or such Subsidiary in the form of dividends or similar distributions.

         
“Net Proceeds” means, with respect to any event, but only as and when
received by the Company or any of the Subsidiaries, (a) the cash proceeds
received in respect of such event including (i) any cash received in respect of
any non-cash proceeds (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or purchase
price adjustment receivable or otherwise, but excluding any interest payments),
(ii) in the case of a casualty, insurance proceeds and (iii) in the case of a
condemnation or similar event, condemnation awards and similar payments; net of
(b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third
parties (other than Affiliates) in connection with such event, (ii) all
out-of-pocket expenses reimbursed to Affiliates in connection with such event,
(iii) in the case of a sale, transfer or other disposition of an asset
(including pursuant to a sale and leaseback transaction or a casualty or a
condemnation or similar proceeding), the amount of all payments required to be
made as a result of such event to repay Indebtedness (other than Loans) secured
by such asset or otherwise subject to mandatory prepayment as a result of such
event (it being understood that such amount shall include the amount of all
distributions and other payments required to be made to minority equity holders
by the recipient of such Net Proceeds as a result of such sale, transfer or
disposition), and (iv) the amount of all Taxes paid or
Tax Distributions (or reasonably estimated to be payable), including in
connection with the grant, exercise, conversion or vesting of any award of
Equity Interests of the Company, and the amount of any reserves reasonably
established by the Company for the purpose of funding any liabilities that are
incurred in connection with the disposition of any asset (including pension and
other post-employment benefit obligations associated with such disposition) and
contingent liabilities reasonably estimated to be payable, in each case during
the Fiscal Year that such event occurred or the next succeeding Fiscal Year and
that are directly attributable to such event (as determined reasonably and in
good faith by a Financial Officer); provided that, to the extent that any
such reserves are not utilized by the Company or the Subsidiaries to fund the
applicable liabilities prior to the end of such succeeding Fiscal Year, the
amount of such unutilized reserves shall constitute “Net Proceeds”.

32

         
“NOLV Percentage” means, with respect to a particular category of inventory,
the net orderly liquidation value percentage identified for such category in the
most recent inventory appraisal provided by the Borrower Representative to the
Administrative Agent. 

         
“Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d). 

         
“Non-Paying Guarantor” has the meaning assigned to such term in Section 10.10. 

         
“Non-U.S. Collection Deposit
Account” has the meaning assigned to such
term in the U.S. Security Agreement. 

         
“Non-U.S. LC Collateral
Account” has the meaning assigned to such
term in Section 2.06(j). 

         
“Notes” means, individually or collectively as the context may require, the
Revolving Notes, the Swingline Notes, the Delayed Draw Term Notes, the Term B-1
Notes and the Term B-2 Notes. 

         
“Obligated Party” has the meaning assigned to such term in Section 10.02. 

         
“Obligations” means, individually or collectively as the context may require, the
U.S. Obligations and the Bermuda Obligations. 

         
“Off-Balance Sheet
Liability” of a Person means (a) any
repurchase obligation or liability of such Person with respect to accounts or
notes receivable sold by such Person as part of a factoring, securitization or
similar transaction and not in connection with the compromise, settlement or
collection thereof; or (b) any indebtedness, liability or obligation arising
with respect to any other transaction which is the functional equivalent of or
takes the place of any Indebtedness described in paragraph (a)(i) or (b) of the definition
thereof, but which does not constitute a liability on the balance sheets of such
Person (other than operating leases). 

         
“Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any
payment made hereunder or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement. 

33

         
“PACA” means the Perishable Agricultural Commodities Act, 1930, 7 U.S.C.
Section 499a et seq. 

         
“Parent Entity” means (a) JBS USA Holdings, Inc., a Delaware corporation, or
(b) any wholly-owned subsidiary thereof that is (i) organized under the laws of
the United States, any State thereof or the District of Columbia, and (ii) has
been formed for the purpose of acquiring a majority of the Equity Interests of
the Company, or merging or consolidating with the Company for the purpose of
acquiring a majority of the Equity Interests of the Company. 

         
“Participant” has the meaning set forth in Section
9.04(c). 

         
“Patriot Act” has the meaning assigned to such term in Section 3.20. 

         
“Paying Guarantor” has the meaning assigned to such term in Section 10.10. 

         
“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined
in ERISA and any successor entity performing similar functions. 

         
“Permitted Acquisition” means the purchase or other acquisition (whether by merger,
amalgamation or otherwise) by the Company or any other Subsidiary of Equity
Interests in, or all or substantially all the assets of (or all or substantially
all the assets constituting a business unit, division, product line or line of
business of), any Person if, in the case of any purchase or other acquisition of
Equity Interests in a Person, such Person, upon the consummation of such
acquisition, will be a wholly-owned Subsidiary (including as a result of a
merger or consolidation between any Subsidiary and such Person); provided that (a) such
purchase or acquisition was not preceded by, or consummated pursuant to, an
unsolicited tender offer or proxy contest initiated by or on behalf of the
Company or any Subsidiary; (b) all transactions related thereto are consummated
in accordance with Section 5.07(a); (c) the business of such Person, or such
assets, as the case may be, constitute a business permitted by Section 6.03(b); (d) in the case of
any newly created or acquired Domestic Subsidiary that is required to be a Loan
Party pursuant to Section
5.13(a), such Subsidiary shall be a U.S. Loan
Guarantor and all of such Subsidiary’s assets (including, if applicable, the
Equity Interests of such Subsidiary) are subject to a valid, perfected first
priority security interest (subject to Permitted Liens) in favor of the
Administrative Agent (for the benefit of the Lender Parties); (e) in the case of
a newly created or acquired Subsidiary that is organized under the laws of
Bermuda, such Subsidiary shall become a party to a guarantee agreement that
guarantees repayment of the Bermuda Secured Obligations and a security agreement
that secures repayment of the Bermuda Secured Obligations, in each case in
accordance with Section
5.13(c); and (f)(i) immediately prior to any
such purchase or other acquisition or entering into a commitment with respect to
such purchase or acquisition, whichever occurs first, (A) no Default or Event of
Default shall have occurred and be continuing and (B) the Borrowers shall be in
compliance with the covenant set forth in Section 6.13; (ii) immediately after
giving effect to any such purchase or other acquisition, or entering into a
commitment with respect to such purchase or acquisition, whichever occurs first,
on a Pro Forma Basis, (A) no Default or Event of Default shall have occurred and
be continuing and (B) the Borrowers shall be in compliance with the covenant set
forth in Section 6.13 (it being understood that Eligible Accounts and Eligible
Inventory acquired in the applicable Permitted Acquisition shall be included for
purposes of determining such compliance immediately after giving effect to such Permitted Acquisition) for the Test Period ending
immediately preceding the consummation of any such purchase or other acquisition
for which financial statements have been delivered pursuant to Section 5.01(a) or
(b); and
(iii) the Company shall have delivered to the Administrative Agent a certificate
of its chief financial officer, in form and substance reasonably satisfactory to
the Administrative Agent, certifying that all the requirements set forth in this
definition have been satisfied with respect to such purchase or other
acquisition, together with reasonably detailed calculations demonstrating
satisfaction of the requirements set forth in clauses (f)(i)(B) and (f)(ii)(B)
above.

34

         
“Permitted Discretion” means a determination made in good faith and in the exercise
of reasonable (from the perspective of a secured asset-based lender) business
judgment. 

         
“Permitted Encumbrances” means: 

(a) Liens imposed by law for Taxes
that are not yet due or are being contested or not paid in compliance with
Section 5.04; 

(b) carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law,
arising in the ordinary course of business and securing obligations that are not
overdue by more than 30 days or are being contested in compliance with
Section 5.04; 

(c) other than Liens imposed by ERISA,
pledges and deposits made in the ordinary course of business (i) in compliance
with workers’ compensation, unemployment insurance, health, disability or other
employee benefits or social security legislation or property, casualty or
liability insurance and other social security laws or retirement benefits or
similar laws or regulations and (ii) in respect of letters of credit or bank
guarantees that are posted to secure the payment of items in clause (i); 

(d) Liens granted and deposits and
other investments made to secure (i) the performance of bids, contracts, leases,
statutory obligations, surety bonds, appeal bonds, performance bonds, bid bonds,
customs bonds and other obligations of a like nature, in each case in the
ordinary course of business and (ii) in respect of letters of credit or bank
guarantees that are posted to secure the payment of items in clause (i); 

(e) Liens incurred to secure appeal
bonds and judgment and attachment liens in respect of judgments; 

(f) easements, zoning restrictions,
mineral reservations, rights-of-way, restrictions, encroachments, covenants,
servitudes and similar encumbrances on real property customarily granted by
similar situated property owners in the Borrowers’ industry or imposed by
Requirements of Law or arising in the ordinary course of business that do not
materially and adversely affect the use, value or enjoyment of the affected
property as currently used by the applicable Loan Party or interfere with the
ordinary conduct of business of any Borrower or any of the Subsidiaries in any
material respect;

(g) leases, subleases, licenses or
sublicenses entered into by the Borrowers or the Subsidiaries or granted to
third Persons by the Borrowers or the Subsidiaries in the ordinary course of
business (including interests of any lessor, sublessor, licensee or sublicensee
thereunder) that do not materially detract from the value of the affected
property or materially interfere with the ordinary conduct of business of any
Borrower or any Subsidiary; 

35

(h) Liens of a collecting bank arising
in the ordinary course of business and covering only items being collected upon
and bankers’ liens, rights of setoff and other similar Liens on cash and
investments on deposit in one or more accounts maintained by the Company or any
of the Subsidiaries, in each case in the ordinary course of business, securing
amounts owing to such bank with respect to cash management arrangements,
including those involving pooled cash management and deposit accounts, and
netting arrangements in respect of such accounts; provided that, to the extent required
by the terms of the applicable Loan Documents, such bank shall have entered into
a Deposit Account Control Agreement with the Administrative Agent with respect
to any such accounts; and 

(i) Liens in favor of customs and
revenue authorities arising as a matter of law to secure payment of customs
duties in connection with the importation of goods. 

provided that the term “Permitted Encumbrances” shall not include any Lien
securing Indebtedness for borrowed money. 

         
“Permitted Holder” means any Parent Entity or its Affiliates.

         
“Permitted Investments” means: 

     (a) direct obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States (or by any agency
thereof to the extent such obligations are backed by the full faith and credit
of the United States), in each case maturing within one year from the date of
acquisition thereof; 

    
(b) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, the highest credit
rating obtainable from S&P or from Moody’s; 

    
(c) investments in certificates of deposit, banker’s acceptances and time
deposits maturing within one year from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or
offered by, any domestic office of any commercial bank organized under the laws
of the United States or any State thereof which has a combined capital and
surplus and undivided profits of not less than $500,000,000 and which has, at
the time of acquisition of the applicable certificate of deposit, banker’s
acceptance or time deposit, (i) in the case of such investments maturing within
180 days from the date of acquisition thereof, short-term debt ratings of A-1 or
better by S&P and P-1 or better by Moody’s, and (ii) in the case of such
investments maturing later than 180 days (but in any event within one year) from
the date of acquisition thereof, long-term debt ratings of AA+ or better by
S&P and Aa1 or better by Moody’s; 

36

    
(d) fully collateralized repurchase agreements with a term of not more than
30 days for securities described in paragraph
(a) above and entered into with a financial
institution satisfying the criteria described in paragraph (c) above; 

    
(e) direct obligations issued by any State of the United States or any
political subdivision of such state or public instrumentality thereof maturing
within one year and having, at the time of acquisition, the highest long-term
rating obtainable from both S&P and Moody’s; 

    
(f) money market funds that (i) comply with the criteria set forth in SEC
Rule 2a-7 under the Investment Company Act of 1940, (ii) at least 95% of the
assets of which constitute Permitted Investments of the type described in
paragraphs (a) through (e) above and (iii) have portfolio assets of at least
$1,000,000,000; and 

    
(g) in
respect of any Foreign Subsidiary, (i) instruments equivalent to those Permitted
Investments referred to in paragraphs
(a) through (f) above that are denominated in
local currencies other than Dollars, which have a credit quality and tenor no
less favorable than the credit quality and tenor of those Permitted Investments
referred to in paragraphs (a) through (f) above and customarily used by Persons for short-term cash
management purposes in the jurisdiction of the relevant Foreign Subsidiary, to
the extent reasonably required in connection with any business conducted by such
Foreign Subsidiary and (ii) in the case of PPC Mexico and its subsidiaries,
investments permitted under Section
6.3 of the Mexican Credit Facility as in
effect as of the Effective Date. 

         
“Permitted Lien” means any Lien permitted under Section 6.02. 

         
“Permitted Subordinated
Indebtedness” has the meaning assigned to
such term in Section 6.01(y).

         
“Person” means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority
or other entity. 

         
“Plan” means any employee pension benefit plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA, and in respect of which any Borrower or any ERISA
Affiliate is (or, if such plan were terminated, would under Section 4069 of
ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

         
“Pledged Subsidiary” has the meaning assigned to such term in Section 6.03(a)(i)(E). 

         
“PPC Mexico” means Avícola Pilgrim’s Pride de Mexico, S. A. de C.V. 

         
“Prepayment Event” means: 

     (a) any sale, transfer or other disposition
of any property or asset of any Loan Party described in Section 6.05(e),
(g),
(h) or
(m);
provided
that the receipt of amounts from transactions described
in this paragraph (a) shall constitute a Prepayment Event only to the extent such
amounts exceed $10,000,000 in any Fiscal Year; or 

37

     (b) any casualty or other insured damage to,
or any taking under power of eminent domain or by condemnation or similar
proceeding of, any property or asset of any Loan Party with a fair value
immediately prior to such event equal to or greater than $1,000,000;
provided
that the receipt of amounts from transactions described in this paragraph (b) shall
constitute a Prepayment Event only to the extent such amounts exceed $5,000,000
in any Fiscal Year; or 

     (c) the issuance of any Equity Interests of,
or contributions to, the Company, other than any of the foregoing if the Net
Proceeds therefrom are (i) used to finance a Permitted Acquisition, (ii) used to
make Capital Expenditures in accordance with Section 6.12 or (iii) received by the Company
in connection with issuances to directors, officers, employees or members of
management of the Company or any Subsidiary (or the estates, heirs, family
members, spouses or former spouses of any of the foregoing) pursuant to any
employee benefit plan or employment agreement, or for other compensatory
reasons; provided that the receipt of amounts from transactions described in this
clause (iii) shall constitute a Prepayment Event only to the extent such amounts
exceed $10,000,000 in any Fiscal Year (provided that any amount by which such
amounts received by the Company are less than $10,000,000 in any Fiscal Year may
be carried over to the next following Fiscal Year; and provided, further, that the aggregate
amount permitted to be excluded as a Prepayment Event pursuant to this clause
(iii), after giving effect to any such amount carried over, shall not exceed
$20,000,000 in any Fiscal Year); or 

     (d) the incurrence by any Loan Party of any
Indebtedness, other than Indebtedness permitted under Section 6.01 (other than Section
6.01(t)(i), unless the Net Proceeds of such Indebtedness are used to finance a
Permitted Acquisition). 

         
“Prime Rate” means, on any day, a rate of interest per annum equal to the “U.S.
Prime Rate” as reported from time to time in the Money Rates Section of the
Eastern Edition of The Wall Street
Journal or, if The Wall Street Journal shall cease
publication or cease publishing the “U.S. Prime Rate” on a regular basis, such
other regularly published average prime rate applicable to such commercial banks
as is acceptable to the Administrative Agent in its reasonable discretion, with
the consent of the Company, which consent will not be unreasonably withheld
(provided
that the Company’s consent shall not be required at any time there has occurred
and is continuing any Default or an Event of Default).

         
“Prior Credit Agreement” means the Credit Agreement, dated as of December 28, 2009,
as amended prior to the Effective Date, among the Borrowers, the lenders that
were parties thereto, certain other agents and the Administrative Agent.

         
“Prior Effective Date” means December 28, 2009.

         
“Pro Forma Basis” means, with respect to any test hereunder in connection with
any event, that such test shall be calculated after giving effect on a
pro
forma basis
for the period of such calculation to (a) such event as if it happened on the
first day of such period (it being understood that with respect to any
acquisition or disposition, any such adjustments (including cost savings that
are reasonably acceptable to the Administrative Agent) shall be permitted solely
to the extent they arise out of events which are directly attributable to the
acquisition or the disposition, are factually supportable and are expected to
have a continuing impact within 180 days after the date of such acquisition or
disposition, and as certified by a Financial Officer of the Company); or (b) the
incurrence of any Indebtedness by the Company or any Subsidiary and any
incurrence, repayment, issuance or redemption of other Indebtedness of the
Company or any Subsidiary occurring at any time subsequent to the last day of
the Test Period and on or prior to the date of determination, as if such
incurrence, repayment, issuance or redemption, as the case may be, occurred on
the first day of the Test Period. 

38

         
“Protective Advance” has the meaning assigned to such term in Section 2.04(a).

         
“PSA” means the Packers and Stockyard Act of 1921, 7 U.S.C. Section 181 et
seq. 

         
“Puerto Rico Security
Agreement” means a Pledge, Assignment and
Security Agreement, in substantially the form of Exhibit F-4, among the Bermuda Loan
Parties and the Administrative Agent, for the benefit of the Lender Parties.

         
“Rabobank” means Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank
International”, New York Branch in its individual capacity, and its successors.

         
“Redomestication” has meaning assigned to such term in Section 6.03(a)(iii).

         
“Register” has the meaning assigned to such term in Section 9.04(b)(iv). 

         
“Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and
advisors of such Person and such Person’s Affiliates. 

         
“Rent or Collateral Access
Reserve” means, with respect to any facility,
warehouse, distribution center, regional distribution center, depot, rail car or
other location where any Inventory
subject to Liens arising by operation of
Requirements of Law is located and as to which no Collateral Access Agreement is
in effect, a reserve equal to (i) three months’ rent at such facility,
warehouse, distribution center, regional distribution center, depot or other
location or (ii) in the case of a rail car, an amount equal to the freight for
transporting such Inventory and any other amounts payable by the Loan Parties to
the applicable carrier. 

         
“Report” means reports prepared by the Collateral Agent or another Person
showing the results of appraisals, field examinations or audits pertaining to
the Borrowers’ assets from information furnished by or on behalf of the
Borrowers, after the Collateral Agent has exercised its rights of inspection
pursuant to this Agreement, which Reports may be distributed to the Lender
Parties by the Administrative Agent. 

         
“Required Lenders” means, at any time, Lenders having (or, in the case of
Voting Participants, holding participations in) Credit Exposure and unused
Commitments representing more than 66 2/3% of the sum of the aggregate Credit
Exposure and unused Commitments at such time. For purposes of this definition,
the Credit Exposure and unused Commitments of each Lender shall be reduced by
the amount thereof that is allocated to Voting Participants. 

39

         
“Required Revolving
Lenders” means, at any time, Revolving
Lenders having (or, in the case of Voting Participants, holding participations
in) Revolving Exposures and unused Revolving Commitments representing more than
50% of the sum of the Aggregate Revolving Exposure and unused Revolving
Commitments at such time. For purposes of this definition, the Revolving
Exposure and unused Revolving Commitments of each Revolving Lender shall be
reduced by the amount thereof that is allocated to Voting
Participants.

         
“Requirement of Law” means, as to any Person, the certificate of incorporation
and bylaws or other organizational or governing documents of such Person, and
any law, treaty, rule or regulation or determination of an arbitrator or a court
or other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is
subject. 

         
“Reserves” means any and all reserves which the Administrative Agent deems
necessary, in its Permitted Discretion, to maintain (including, without
limitation, reserves for accrued and unpaid interest on the Secured Obligations,
Banking Services Reserves, Rent or Collateral Access Reserves, Dilution
Reserves, Inventory Reserves, reserves for Swap Obligations that constitute
Secured Obligations, reserves for Permitted Liens that attach to any Loan
Party’s Accounts or Inventory pursuant to Section 6.02, reserves for contingent
liabilities of any Loan Party, reserves in respect of rights of sellers of
livestock, poultry and perishable agricultural commodities under PACA, PSA or
other similar Requirements of Law (including outstanding checks to livestock
growers, swine fee payables, deferred livestock payables and the grower
guarantee payables), reserves for consignee’s, warehousemen’s and bailee’s
charges, reserves for unpaid and accrued sales taxes, reserves for banker’s
liens, rights of setoff or similar rights and remedies as to deposit accounts,
reserves for uninsured losses of any Loan Party, reserves for uninsured,
underinsured, un-indemnified or under-indemnified liabilities or potential
liabilities with respect to any litigation (whether or not previously disclosed
to the Lender Parties) and reserves for Taxes, fees, assessments, and other
governmental charges) with respect to the Collateral or any Loan Party, in each
case without duplication. 

         
“Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the
Company or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such Equity Interests in the Company. 

         
“Restructuring Charges” means any asset impairment charges, lease termination costs,
severance costs, facility shutdown costs, write-offs and write-downs of
Intangible Assets and other related restructuring charges related to or
associated with a permanent reduction in capacity, closure of plants or
facilities, cut-backs or plant closures or a significant reconfiguration of a
facility. 

         
“Revolving Commitment” means, with respect to each Lender, the commitment, if any,
of such Lender to make Revolving Loans and to acquire participations in Letters
of Credit and Swingline Loans hereunder, expressed as an
amount representing the maximum possible aggregate amount of such Lender’s
Revolving Exposure hereunder, as such commitment may be reduced or increased
from time to time pursuant to (a) Sections
2.09 and 2.10, respectively, and (b)
assignments by or to such Lender pursuant to Section 9.04. The initial amount of
each Lender’s Revolving Commitment is set forth on the Commitment Schedule, or in
the Assignment and Assumption pursuant to which such Lender shall have assumed
its Revolving Commitment, as applicable. The initial aggregate amount of the
Lenders’ Revolving Commitments is $700,000,000.  

40

         
“Revolving Exposure” means, with respect to any Lender at any time, the sum
(without duplication) of (a) the outstanding principal amount of Revolving Loans
of such Lender at such time, plus
(b) the Swingline Exposure of such Lender at
such time, plus (c) the LC Exposure of such Lender at such time. 

         
“Revolving Lender” means, as of any date of determination, a Lender with a
Revolving Commitment or, if the Revolving Commitments have terminated or
expired, a Lender with Revolving Exposure. 

         
“Revolving Loans” means the Revolving Loans extended by the Revolving Lenders
to the Borrowers pursuant to Section
2.01(a) and the Prior Credit Agreement.

         
“Revolving Note” means a promissory note of the Borrowers that is payable to
any Revolving Lender, in substantially the form of Exhibit E-1, evidencing the aggregate
Indebtedness of the Borrowers to such Revolving Lender resulting from
outstanding Revolving Loans, and also means all other promissory notes accepted
from time to time in substitution therefor or renewal thereof. 

         
“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw
Hill Companies, Inc. 

         
“SEC” means the Securities and Exchange Commission.

         
“Secured Grower
Payables” means all amounts owed from time to
time by any Borrower to any Person on account of the purchase price of
agricultural products or services (including poultry and livestock) if the
Administrative Agent reasonably determines that such Person is entitled to the
benefits of any grower’s or producer’s lien, statutory trust or similar security
arrangements to secure the payment of any amounts owed to such Person (in each
case whether any of the foregoing arises under PACA, PSA or other similar
Requirements of Law).

         
“Secured Obligations” means, individually or collectively as the context may
require, the U.S. Secured Obligations and the Bermuda Secured Obligations.

         
“Secured Swap Agreement” means any Swap Agreement with a Lender or an Affiliate of a
Lender at the time of entering into such Swap Agreement that constitutes a
“swap” within the meaning of Section 1(a)(47) of the Commodity Exchange Act.

41

         
“Security Agreements” means, individually or collectively as the context may
require, the U.S. Security Agreement, the Bermuda Pledge Agreement, the Bermuda
Security Agreement and the Puerto Rico Security Agreement. 

         
“Senior Indebtedness” means, at any date, the aggregate principal amount of all
Indebtedness (other than unsecured Indebtedness) of the Company at such date,
determined on a consolidated basis, to the extent required to be reflected in
the “Liabilities” section of the consolidated balance sheet of the Company (it
being understood that all current intercompany liabilities shall be excluded
whether shown on the consolidated balance sheet or excluded therefrom on a net
basis). 

         
“Senior Note Documents” means, collectively, (a) the Senior Notes, (b) each
indenture that is entered into in connection with the purchase of the Senior
Notes and (c) all the guarantees and other material agreements entered into in
connection with the foregoing. 

         
“Senior Notes” means the certain 7.875% senior unsecured notes of the
Company due 2018 in an original aggregate principal amount of $500,000,000.

         
“Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Company as of such date; provided that losses in an amount not
to exceed $25,000,000 in any Fiscal Year for non-cash losses related to
non-recurring items shall be excluded from the calculation of shareholders’
equity of the Company. 

         
“Standby LC Exposure” means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Standby Letters of Credit at such time,
plus
(b) the aggregate amount of all LC Disbursements relating to Standby Letters of
Credit that have not yet been reimbursed by or on behalf of the Borrowers at
such time. The Standby LC Exposure of any Revolving Lender at any time shall be
its Applicable Percentage of the aggregate Standby LC Exposure at such time.

         
“Standby Letter of
Credit” means any Letter of Credit other than
a Commercial Letter of Credit. 

         
“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one
minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve
percentages shall include those imposed pursuant to such Regulation D.
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under such Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage. 

         
“Subject Lenders” has the meaning assigned to such term in the Amendment and
Restatement Agreement. 

42

         
“Subject Loan Party” has the meaning assigned to such term in Section 6.03(a)(ii)(B). 

         
“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation,
limited liability company, partnership, association or other entity (a) of which
securities or other ownership interests representing more than 50% of the
ordinary voting power (or, in the case of a partnership, more than 50% of the
voting power general partnership interests) are, as of such date, owned,
controlled or held; or (b) in which, as of such date, the parent is the
controlling general partner or otherwise possesses the ability (without the
consent of any other Person but giving effect to any contractual arrangements
with third Persons) to control the management thereof (whether by the parent or
one or more subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent). 

         
“Subsidiary” means any direct or indirect subsidiary of the Company or a Loan Party,
as applicable. 

         
“Successor Company” has the meaning assigned to such term in Section 6.03(a)(ii)(B)(2).

         
“Supported Loan
Guarantor” means, at any time, a Loan
Guarantor that, at such time, is not an “eligible contract participant” as
defined in Section 1a(18) of the Commodity Exchange Act and related regulations
of the Commodities Futures Trading Commission, except by virtue of the support
of the ECP Loan Guarantors under Section
11.08. 

         
“Swap Agreement” means any agreement or exchange-traded transaction with
respect to any swap, forward, future or derivative transaction or option or
similar agreement involving, or settled by reference to, one or more rates,
currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk
or value or any similar transaction or any combination of these transactions;
provided
that no phantom stock or similar plan providing for payments only on account of
services provided by present or former directors, officers, employees, members
of management or consultants of the Company or any of the Subsidiaries (or the
estate, heirs, family members, spouse, or former spouse of any of the foregoing)
shall be a Swap Agreement. 

         
“Swap Obligations” of a Person means any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor), under (a) any and all Swap Agreements; and
(b) any and all cancellations, buy backs, reversals, terminations or assignments
of any Swap Agreement transaction. 

         
“Swingline Exposure” means, at any time, the sum of the aggregate outstanding
Swingline Loans at such time. The Swingline Exposure of any Revolving Lender at
any time shall be its Applicable Percentage of the aggregate Swingline Exposure
at such time. 

         
“Swingline Lender” means CoBank, FCB in its capacity as lender of Swingline
Loans hereunder. 

         
“Swingline Loan” means a Loan made pursuant to Section 2.05. 

43

         
“Swingline Note” means a promissory note of the Borrowers that is payable to
the Swingline Lender, in substantially the form of Exhibit E-2, evidencing the aggregate
Indebtedness of the Borrowers to the Swingline Lender resulting from outstanding
Swingline Loans, and also means all other promissory notes accepted from time to
time in substitution therefor or renewal thereof. 

         
“Tax Distribution” means, with respect to any Person, any dividend or other
distribution to any direct or indirect member of an affiliated group that files
a consolidated U.S. Federal tax return with such Person, in accordance with one
of the tax sharing agreements set forth on Schedule 1.01 or any other tax sharing
agreement or similar arrangement in each case in an amount not in excess of the
amount that such Person (or such Person and its subsidiaries) would have been
required to pay in respect of Federal, State or local Taxes, as the case may be,
in respect of such year if such Person had paid such Taxes directly as a
stand-alone taxpayer (or on behalf of a stand-alone group). 

         
“Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

         
“Term B Lenders” means, individually or collectively as the context may
require, the Term B-1 Lenders and the Term B-2 Lenders. 

         
“Term B Loans” means, individually or collectively as the context may
require, the Term B-1 Loans or the Term B-2 Loans. 

         
“Term B-1 Lenders” means, as of any date of determination, Lenders having
outstanding Term B-1 Loans. 

         
“Term B-1 Loans” means the Term B-1 Loans extended by the Term B-1 Lenders to
the Borrowers pursuant to the Prior Credit Agreement. 

         
“Term B-1 Note” means a promissory note of the Borrowers that is payable to
any Term B-1 Lender, in substantially the form of Exhibit E-4, evidencing the aggregate
Indebtedness of the Borrowers to such Term B-1 Lender resulting from outstanding
Term B-1 Loans, and also means all other promissory notes accepted from time to
time in substitution therefor or renewal thereof. 

         
“Term B-2 Lenders” means, as of any date of determination, Lenders having
outstanding Term B-2 Loans. 

         
“Term B-2 Loans” means the Term B-2 Loans extended by the Term B-2 Lenders to
the Borrowers pursuant to the Prior Credit Agreement. 

         
“Term B-2 Note” means a promissory note of the Borrowers that is payable to
any Term B-2 Lender, in substantially the form of Exhibit E-5, evidencing the aggregate
Indebtedness of the Borrowers to such Term B-2 Lender resulting from outstanding
Term B-2 Loans, and also means all other promissory notes accepted from time to
time in substitution therefor or renewal thereof. 

44

         
“Term Exposure” means, with respect to any Lender at any time, the
outstanding principal amount of Term Loans of such Lender at such time.

         
“Term Lenders” means, individually or collectively as the context may
require, the Delayed Draw Term Lenders or the Term B Lenders. 

         
“Term Loans” means, individually or collectively as the context may require, the
Delayed Draw Term Loans or the Term B Loans. 

         
“Test Period” means the applicable period for testing the financial covenant set
forth in Section 6.13.

         
“Title Insurance
Company” means Chicago Title Insurance
Company or any other nationally reputable title insurance company that is
retained by the Borrowers and is reasonably acceptable to the Administrative
Agent. 

         
“To-Ricos” means To-Ricos, Ltd., a Bermuda company. 

         
“To-Ricos Distribution” means To-Ricos Distribution, Ltd., a Bermuda company.

         
“Total Indebtedness” means, at any date, the aggregate principal amount of all
Indebtedness of the Company at such date, determined on a consolidated basis, to
the extent required to be reflected in the “Liabilities” section of the
consolidated balance sheet of the Company (it being understood that all current
intercompany liabilities shall be excluded whether shown on the consolidated
balance sheet or excluded therefrom on a net basis). 

         
“Transactions” means, collectively, the execution, delivery and performance
by the Borrowers of this Agreement, the borrowing of Loans and other credit
extensions, the use of the proceeds thereof and the issuance of Letters of
Credit hereunder. 

         
“Type”, when used in reference to any Loan or Borrowing, refers to whether the
rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to the Adjusted LIBO Rate, the Alternate Base Rate or,
in the case of Term B-2 Loans or Term B-2 Borrowings, the rate of interest
provided in Section 2.14(c). 

         
“UCC” means the Uniform Commercial Code as in effect from time to time in the
State of New York or any other state the laws of which are required to be
applied in connection with the issue of perfection of security interests.

         
“United States” or “U.S.” means the United States. 

         
“Unliquidated
Obligations” means, at any time, any Secured
Obligations (or portion thereof) that are contingent in nature or unliquidated
at such time, including any Secured Obligation that is: (a) an obligation to
reimburse a bank for drawings not yet made under a letter of credit issued by
it; (b) any other obligation (including any guarantee) that is contingent in
nature at such time; or (c) an obligation to provide collateral to secure any of
the foregoing types of obligations. 

45

         
“U.S. Collection Deposit
Account” has the meaning assigned to such
term in the U.S. Security Agreement. 

         
“U.S. Guaranty” means Article
X of this Agreement. 

         
“U.S. LC Collateral
Account” has the meaning assigned to such
term in Section 2.06(j). 

         
“U.S. Loan Guarantor” means each Loan Party (other than (i) the Company and (ii)
the Bermuda Loan Parties and their subsidiaries) and any other Person that
becomes a U.S. Loan Guarantor pursuant to Section 5.13(a). 

         
“U.S. Loan Parties” means the Company, the Company’s Domestic Subsidiaries and
First-Tier Foreign DREs party hereto on the Effective Date and any other Person
who, as required by the terms hereof, becomes a party to this Agreement in its
capacity as a U.S. Loan Party pursuant to a Joinder Agreement and their
successors and assigns. 

         
“U.S. Obligations” means all unpaid principal of and accrued and unpaid
interest on the Loans, all LC Exposure, all accrued and unpaid fees and all
expenses, reimbursements, indemnities and other obligations of the U.S. Loan
Parties to the Lenders or to any Lender, the Administrative Agent, any Issuing
Bank with respect to a Letter of Credit or any indemnified party arising under
the Loan Documents. 

         
“U.S. Secured
Obligations” means all U.S. Obligations,
together with all (a) Banking Services Obligations of the U.S. Loan Parties and
(b) Swap Obligations of the U.S. Loan Parties owing to one or more
counterparties that are Lenders or Affiliates of Lenders at the time that such
Swap Obligations are incurred; provided that at or prior to the time
that any transaction relating to such Swap Obligation is executed, the Lender or
Affiliate of a Lender and the U.S. Loan Party party thereto shall have delivered
written notice to the Administrative Agent that such a transaction has been
entered into and that it constitutes a U.S. Secured Obligation entitled to the
benefits of the Collateral Documents in favor of the Lender Parties;
provided,
further,
that the “U.S. Secured Obligations” of a U.S. Loan Party shall exclude any
Excluded Swap Obligations with respect to such U.S. Loan Party. 

         
“U.S. Security
Agreement” means a Pledge and Security
Agreement, in substantially the form of Exhibit F-1, among the U.S. Loan
Parties and the Administrative Agent, for the benefit of the Lender Parties, and
any other pledge or security agreement entered into, after the Effective Date by
any other U.S. Loan Party (as required by this Agreement or any other Loan
Document), or any other Person. 

         
“Value of Eligible
Inventory” means, at any given time, (a) with
respect to Eligible Inventory consisting of feed grains, prepaid grain in
transit, feed and ingredients, dressed broiler chickens, commercial eggs,
breeder hens, breeder cockerels, breeder pullets, commercial hens, commercial
pullets, hatching eggs, live broiler chickens and prepared food products, the
standard and/or moving average cost determined for such Eligible Inventory,
consistently applied in accordance with GAAP; and (b) with respect to Eligible
Inventory consisting of vaccines on the farm, the moving average cost determined
for such inventory basis, consistently applied in accordance with
GAAP. 

46

          “Voting
Participant” has the meaning assigned to such
term in Section 9.04(f). 

         
“Voting Participant
Notification” has the meaning assigned to
such term in Section 9.04(f). 

         
“Wal-Mart” means Wal-Mart Stores, Inc., a Delaware corporation. 

         
“Weekly Reporting
Period” means any period (a) during which any
Default or any Event of Default has occurred and is continuing, or (b) that
constitutes a Minimum Availability Period; provided that if the circumstances
described in clause (a) or (b), as applicable, shall occur and cease to exist twice during
any calendar year, then any subsequent Weekly Reporting Period occurring during
such calendar year shall continue through the end of such calendar
year.

         
“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are
defined in Part I of Subtitle E of Title IV of ERISA. 

          SECTION
1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to
by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class
and Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and
referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving
Borrowing”). 

          SECTION
1.03. Terms
Generally. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”.
The word “will” shall be construed to have the same meaning and effect as the
word “shall”. Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as
amended, restated, amended and restated, or otherwise modified from time to time
(subject to any restrictions on such amendments, restatements, amendments and
restatements or other modifications set forth herein); (b) any reference herein
to any Person shall be construed to include such Person’s successors and
assigns, to the extent such successors and assigns are permitted hereunder and
under the other Loan Documents; (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof; (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement; (e) the words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights;
and (f) any reference to any law or regulation herein shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented
from time to time, together with all rules, regulations and interpretations
thereunder or related thereto. A Default or Event of Default shall be deemed to
exist at all times during the period commencing on the date that such Default or
Event of Default occurs to the date on which such Default or Event of Default is
waived by the Administrative Agent pursuant to this Agreement or, in the case of
a Default, is cured (i) within any period of cure expressly provided for in this
Agreement (in the case of any Default occurring other than pursuant to
paragraph (f), (g) or (k) of Article VII) or (ii) prior to time
that any Lender Party exercises any remedies under any Loan Document (in the
case of any Default or Event of Default occurring pursuant to paragraph (f),
(g) or
(k) of
Article VII); provided that the Borrower Representative may exercise its right to cure any such
Default or Event of Default only if it has provided notice of such Default to
the Administrative Agent to the extent required pursuant to Section 5.02(a); and an
Event of Default shall “continue” or be “continuing” until such Event of Default
has been waived by the Administrative Agent. 

47 

          SECTION 1.04. Accounting Terms; GAAP.
Except as otherwise expressly provided herein, all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from
time to time; provided that (a) all determinations of whether the Borrowers are in
compliance with the covenant set forth in Section 6.13 shall be made in
accordance with GAAP consistently applied in accordance with the financial
statements for the fiscal year of the Company ended December 30, 2012 and (b) if
the Borrower Representative notifies the Administrative Agent that the Borrowers
request an amendment to any provision hereof to reflect the effect of any change
occurring after the Effective Date in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the
Borrower Representative that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then
the Borrower and the Administrative Agent shall negotiate in good faith to amend
such covenant and related definitions (subject to the approval of the Required
Lenders) to preserve the original intent thereof in light of such changes in
GAAP or in the application thereof; provided that such provision shall be
interpreted on the basis of GAAP in accordance with clause (a) above until such notice
shall have been withdrawn or such provision shall have been amended in
accordance herewith. Notwithstanding the foregoing, all financial statements
delivered hereunder shall be prepared, and all financial covenants herein shall
be calculated, without giving effect to any election under Statement of
Accounting Financial Standards 159 (or any similar accounting principle)
permitting a Person to value its financial liabilities at the fair value
thereof.

          SECTION
1.05. Timing of
Payment or Performance. Except as set forth
in the proviso to the definition of “Interest Period”, when the payment of any
obligation or performance of any covenant, duty or obligation is stated to be
due or performance required on a day which is not a Business Day, the date of
such payment or performance shall extend to the immediately succeeding Business
Day and, in respect of payment, such extension of time shall be reflected in
computing interest or fees, as the case may be. 

ARTICLE II 

THE CREDITS 

          SECTION
2.01. Commitments. Subject to the terms and
conditions set forth herein, (a) each Revolving Lender agrees to make Revolving
Loans to the Borrowers from time to time during the
Availability Period in an aggregate principal amount that will not result in (i)
such Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment or
(ii) the Aggregate Revolving Exposure exceeding the lesser of the aggregate
Revolving Commitments and the Borrowing Base, subject to the Administrative
Agent’s authority, in its sole discretion, to make Protective Advances pursuant
to the terms of Section 2.04; and (b) each Delayed Draw Term Lender agrees to make Delayed
Draw Term Loans to the Borrowers in the initial minimum amount of $100,000,000
and additional advances in minimum increments of $25,000,000, from and after May
1, 2014 and through December 28, 2014, in an aggregate amount not to exceed each
such Lender’s Delayed Draw Term Loan Commitment; provided that there shall not be more
than a total of seven Borrowings of Delayed Draw Term Loans by the Borrowers.
Pursuant to the Prior Credit Agreement, the Revolving Lenders, the Term B-1
Lenders and the Term B-2 Lenders made Revolving Loans, Term B-1 Loans and Term
B-2 Loans, respectively, to the Borrowers, which Revolving Loans and Term Loans
that are outstanding on the Effective Date (as set forth in the Effective Date
Loans and Letters of Credit Schedule) shall, as provided in the Amendment and
Restatement Agreement, automatically and without further action, continue to be
outstanding for all purposes under this Agreement and the other Loan Documents.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrowers may borrow, prepay and reborrow Revolving Loans. Amounts
repaid in respect of Term Loans may not be reborrowed. 

48 

          SECTION 2.02. Loans and Borrowings. (a)
Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing
consisting of Loans of the same Class and Type made by the Lenders ratably in
accordance with their respective Commitments of the applicable Class. Any
Protective Advance and any Swingline Loan shall be made in accordance with the
procedures set forth in Sections
2.04 and 2.05, respectively. The Term Loans
shall amortize as set forth in Section
2.11. 

         
(b) Subject
to Section 2.14, (i) each Borrowing of Revolving Loans, Delayed Draw Term Loans and Term
B-1 Loans shall be comprised entirely of ABR Loans or Eurodollar Loans, in each
case as the Borrower Representative may request in accordance herewith; and (ii)
each Term B-2 Loan shall be comprised entirely of Loans accruing interest at a
fixed rate, as provided in Section
2.14(c); provided that all Borrowings made on
the Effective Date must be made as ABR Borrowings but may be converted into
Eurodollar Borrowings in accordance with Section 2.08. Each Swingline Loan
shall be an ABR Loan. Each Lender at its option may make any Eurodollar Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided that any exercise of such option shall not affect the obligation of the
Borrowers to repay such Loan in accordance with the terms of this Agreement.

         
(c) Subject
to Section 2.01(b), at the commencement of each Interest Period for any Borrowing of a
Eurodollar Revolving Loan, such Borrowing shall be in an aggregate amount that
is an integral multiple of $1,000,000 and not less than $5,000,000. Subject to
Section 2.01(b), at the time that any Borrowing of an ABR Revolving Loan is made, such
Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000; provided that each Borrowing of an ABR
Revolving Loan may be in an aggregate amount that is equal to the entire unused
balance of the aggregate Revolving Commitments or that is required to finance
the reimbursement of an LC Disbursement as contemplated by Section 2.06(e), the
repayment of a Protective Advance as contemplated by Section
2.04(a) or the repayment of a Swingline Loan
as contemplated by Section
2.05(c). Each Swingline Loan shall be in any
amount requested by the Borrower Representative. Borrowings of more than one
Type and Class may be outstanding at the same time; provided that there shall not at any
time be more than a total of 10 Eurodollar Borrowings outstanding.

49 

         
(d) Notwithstanding any other provision of this Agreement, the Borrower
Representative shall not be entitled to request, or to elect to convert or
continue, any Borrowing if the Interest Period requested with respect thereto
would end after the Maturity Date. 

          SECTION
2.03. Requests
for Borrowings. To request a Borrowing, the
Borrower Representative shall notify the Administrative Agent of such request in
a written Borrowing Request signed by the Borrower Representative and delivered
by PDF or facsimile (a) in the case of a Eurodollar Borrowing, not later than
11:00 a.m., Denver, Colorado time, three Business Days before the date of the
proposed Borrowing; or (b) in the case of an ABR Borrowing, not later than 11:00
a.m., Denver, Colorado time, one Business Day prior to the date of the proposed
Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.06(e) may be
given not later than 8:00 a.m., Denver, Colorado time, on the date of the
proposed Borrowing. Each Borrowing Request shall be irrevocable and shall
specify the following information in compliance with Section 2.01: 

         
(i) the
name of the applicable Borrower; 

         
(ii) the
aggregate amount of the requested Borrowing and a breakdown of the separate
wires comprising such Borrowing; 

         
(iii) the
date of such Borrowing, which shall be a Business Day; 

         
(iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and 

         
(v) in the
case of a Eurodollar Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term
“Interest Period”. 

If no election as to the Type of
Revolving Borrowing is specified, then the requested Revolving Borrowing shall
be an ABR Borrowing. If no Interest Period is specified with respect to any
requested Eurodollar Revolving Borrowing, then the applicable Borrower(s) shall
be deemed to have selected an Interest Period of one month’s duration. Promptly
following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender’s Loan to be made as part of the requested Borrowing.

50 

          SECTION
2.04. Protective Advances. (a) Subject to
the limitations set forth below, the Administrative Agent is authorized by the
Borrowers and the Lenders, from time to time in the Administrative Agent’s sole
discretion (but with absolutely no obligation), to make Revolving Loans to the
Borrowers, on behalf of all Lenders, which the Administrative Agent, in its
Permitted Discretion, deems necessary or desirable (i) to preserve or protect
the Collateral, or  any portion thereof;
(ii) to enhance the likelihood of, or maximize the amount of, repayment of the
Loans and other Obligations; or (iii) to pay any other amount chargeable to or
required to be paid by the Borrowers pursuant to the terms of this Agreement,
including payments of reimbursable expenses (including costs, fees and expenses
as described in Section 9.03) and other sums payable under the Loan Documents (any of such
Revolving Loans are herein referred to as “Protective Advances”); provided that the aggregate
amount of Protective Advances outstanding at any time shall not at any time
exceed 5% of the aggregate Revolving Commitments; and provided, further, that the aggregate amount of
outstanding Protective Advances plus the Aggregate Revolving
Exposure shall not exceed the aggregate Revolving Commitments. Protective
Advances may be made even if the conditions precedent set forth in
Section 4.02 have not been satisfied. The Protective Advances shall be secured by the
Liens in favor of the Administrative Agent (for the benefit of the Lender
Parties) in and to the Collateral of the U.S. Loan Parties (in the case of
Protective Advances made to the Company) or the Collateral of all the Loan
Parties (in the case of Protective Advances made to the Bermuda Borrowers) and
shall constitute U.S. Secured Obligations (in the case of Protective Advances
made to the Company) or Bermuda Secured Obligations (in the case of Protective
Advances made to the Bermuda Borrowers). All Protective Advances shall be ABR
Borrowings. The Administrative Agent’s authorization to make Protective Advances
may be revoked at any time by the Required Lenders. Any such revocation must be
in writing and shall become effective prospectively upon the Administrative
Agent’s receipt thereof. At any time that there is sufficient Availability and
the conditions precedent set forth in Section
4.02 have been satisfied, the Administrative
Agent may request the Revolving Lenders to make a Revolving Loan to repay a
Protective Advance. At any other time the Administrative Agent may require the
Lenders to fund their risk participations described in Section 2.04(b).

          (b) Upon the making of a Protective Advance by the Administrative Agent
(whether before or after the occurrence of a Default), each Revolving Lender
shall be deemed, without further action by any party hereto, to have
unconditionally and irrevocably purchased from the Administrative Agent without
recourse or warranty, an undivided interest and participation in such Protective
Advance in proportion to its Applicable Percentage. From and after the date, if
any, on which any Revolving Lender is required to fund its participation in any
Protective Advance purchased hereunder, the Administrative Agent shall promptly
distribute to such Revolving Lender, such Revolving Lender’s Applicable
Percentage of all payments of principal and interest and all proceeds of
Collateral received by the Administrative Agent in respect of such Protective
Advance. 

          SECTION
2.05. Swingline
Loans. (a) Subject to the terms and
conditions set forth herein, the Swingline Lender agrees to make Swingline Loans
to the Borrowers, from time to time during the Availability Period, in an
aggregate principal amount at any time outstanding that will not result in (i)
the aggregate principal amount of outstanding Swingline Loans exceeding
$100,000,000 or (ii) the sum of the Aggregate Revolving Exposure exceeding the
lesser of the aggregate Revolving Commitments and the Borrowing Base, in each
case both before and immediately after giving effect to such Swingline Loan;
provided
that the Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. Within the foregoing limits and subject
to the terms and conditions set forth herein, the Borrowers may borrow, prepay
and reborrow Swingline Loans.

51 

         
(b) To
request a Swingline Loan, the Borrower Representative shall notify the
Administrative Agent of such request by PDF or facsimile, not later than 2:00
p.m., Denver, Colorado time, on the day of a proposed Swingline Loan. Each such
notice shall be irrevocable and shall specify the requested date (which shall be
a Business Day) and amount of the requested Swingline Loan. The Administrative
Agent will promptly advise the Swingline Lender of any such notice received from
the Borrower Representative. The Swingline Lender shall make each Swingline Loan
available to the Borrowers by means of a credit to the Funding Account(s) (or,
in the case of a Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in Section
2.06(e), by remittance to the applicable
Issuing Bank.

         
(c) Upon
the making of a Swingline Loan (whether before or after the occurrence of a
Default or Event of Default and regardless of whether any Revolving Lender is
then required to fund its Applicable Percentage of the Swingline Exposure
pursuant to Section 2.05(d)), each Revolving Lender shall be deemed, without further action by any
party hereto, to have unconditionally and irrevocably purchased from the
Swingline Lender or the Administrative Agent, as the case may be, without
recourse or warranty, an undivided interest and participation in such Swingline
Loan in proportion to its Applicable Percentage of the Revolving Commitment.
Each Revolving Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Swingline Loans is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Swingline Loan
or the occurrence and continuance of a Default or reduction or termination of
the Revolving Commitment, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever. The Swingline Lender or
the Administrative Agent may, at any time, require the Revolving Lenders to fund
their participations. From and after the date, if any, on which any Revolving
Lender is required to fund its participation in any Swingline Loan purchased
hereunder, the Administrative Agent shall promptly distribute to such Lender,
such Lender’s Applicable Percentage of all payments of principal and interest
and all proceeds of Collateral received by the Administrative Agent in respect
of such Loan. 

         
(d) Promptly following (i) notice by the Administrative Agent to any
Revolving Lender of the occurrence of any Event of Default or (ii) any request
therefor (which request the Swingline Lender may make from time to time in its
sole and absolute discretion) by the Swingline Lender to the Administrative
Agent (which request the Administrative Agent shall promptly forward to each
Revolving Lender), each Revolving Lender shall make a Revolving Loan in a
principal amount equal to such Revolving Lender’s Applicable Percentage of the
Swingline Exposure then outstanding. Each Revolving Lender receiving any such
notice or request shall wire transfer, at or before 3:00 p.m., Denver, Colorado
time, on the Business Day that it receives such notice or request immediately
available funds in an amount equal to such Revolving Lender’s Applicable
Percentage of the Swingline Exposure specified in such notice or request to the
account of the Administrative Agent most recently designated for such purpose by
notice to the Revolving Lenders, and the Administrative Agent shall promptly pay
over such amounts to the Swingline Lender for application to the outstanding
Swingline Loans; provided that if any such notice or request is received by a Revolving
Lender after 12:00 noon, Denver, Colorado time, on any Business Day, such
amounts shall not be required to be so wire transferred until 3:00 p.m., Denver,
Colorado time, on the next following Business Day.

52 

          SECTION
2.06. Letters
of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Borrower Representative may request the
issuance of Letters of Credit for its own account or for the account of another
Borrower, pursuant to a written Issuance Request, at any time and from time to
time during the Availability Period. In the event of any inconsistency between
the terms and conditions of this Agreement and the terms and conditions of any
Issuance Request, form of letter of credit application or other agreement
submitted by the Borrowers to, or entered into by the Borrowers with, an Issuing
Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control. 

         
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a
Letter of Credit (or the amendment, renewal or extension of an outstanding
Letter of Credit), the Borrower Representative shall deliver PDF or facsimile to
the applicable Issuing Bank and the Administrative Agent (reasonably in advance
of the requested date of issuance, amendment, renewal or extension) a written
Issuance Request. Each such written Issuance Request shall specify the date on
which such Letter of Credit is to expire (which shall comply with
paragraph (c) of this Section), the amount of such Letter of Credit, the name and
address of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit. It is
understood that the reinstatement of all or a portion of a Letter of Credit in
accordance with the terms thereof following a drawing thereunder shall not
constitute an amendment, renewal or extension of such Letter of Credit. If
requested by the applicable Issuing Bank, the applicable Borrower also shall
submit a letter of credit application on such Issuing Bank’s standard form in
connection with any request for a Letter of Credit. A Letter of Credit shall be
issued, amended, renewed or extended only if (and upon issuance, amendment,
renewal or extension of each Letter of Credit the Borrowers shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) the LC Exposure shall not exceed $200,000,000 and (ii)
the Aggregate Revolving Exposure shall not exceed the lesser of the aggregate
Revolving Commitments and the Borrowing Base.

         
(c) Expiration Date. Each Letter of Credit
shall expire at or prior to the close of business on the earlier of (i) the date
one year after the date of the issuance of such Letter of Credit (or, in the
case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five Business Days prior to the Maturity
Date with respect to the Revolving Loans; provided that any Letter of Credit
with a one-year tenor may provide for the renewal thereof for additional
one-year periods (which shall not in any event extend beyond the date that is
five Business Days prior to the Maturity Date with respect to the Revolving
Loans) under customary “evergreen” provisions. 

         
(d) Participations. By the issuance of a
Letter of Credit (or an amendment to a Letter of Credit increasing the amount
thereof) and without any further action on the part of any Issuing Bank or the
Revolving Lenders, the applicable Issuing Bank hereby grants to each Revolving
Lender, and each Revolving Lender hereby acquires from the applicable Issuing
Bank, a participation in such Letter of Credit equal to such Lender’s Applicable
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Revolving
Lender hereby absolutely and unconditionally agrees to pay to the Administrative
Agent, for the account of the applicable Issuing Bank, such Lender’s Applicable
Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrowers on the date due as provided in
paragraph (e) of this Section, or of any reimbursement payment required to be refunded
to the Borrowers for any reason. Each Revolving Lender acknowledges and agrees
that its obligation to acquire participations pursuant to this paragraph in
respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including any amendment, renewal or
extension of any Letter of Credit or the occurrence and continuance of a Default
or reduction or termination of the Revolving Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever. 

53 

         
(e) Reimbursement. If any Issuing Bank
shall make any LC Disbursement in respect of a Letter of Credit, the Borrowers
shall, subject to the terms hereof, reimburse such LC Disbursement by paying to
the Administrative Agent an amount equal to such LC Disbursement not later than
10:00 a.m., Denver, Colorado time, on the Business Day that the Borrower
Representative receives notice of such LC Disbursement, if such notice is
received prior to 8:00 a.m., Denver, Colorado time, on such Business Day (or, if
the Borrower Representative receives notice of such LC Disbursement after 8:00
a.m., Denver, Colorado time, on any Business Day, by 10:00 a.m., Denver,
Colorado time, on the next following Business Day); provided that the Borrower
Representative may, subject to the conditions to borrowing set forth herein,
request in accordance with Section
2.03 or 2.05 that such payment be financed
with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and,
to the extent so financed, the Borrowers’ obligation to make such payment shall
be discharged and replaced by the resulting ABR Revolving Borrowing or Swingline
Loan (or applicable portion thereof). If the Borrowers fail to make such payment
when due, the Administrative Agent shall notify each Revolving Lender of the
applicable LC Disbursement, the payment then due from the Borrowers in respect
thereof and such Lender’s Applicable Percentage thereof, and the Bermuda
Borrowers shall have no obligation to reimburse any Person with respect to any
LC Disbursement in respect of a Letter of Credit that does not constitute a
Bermuda Obligation. Promptly following receipt of such notice, each Revolving
Lender shall pay to the Administrative Agent its Applicable Percentage of the
payment then due from the Borrowers, in the same manner as provided in
Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply,
mutatis
mutandis,
to the payment obligations of the Revolving Lenders), and the Administrative
Agent shall promptly pay to the applicable Issuing Bank the amounts so received
by it from the Revolving Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrowers pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the
applicable Issuing Bank or, to the extent that Revolving Lenders have made
payments pursuant to this paragraph to reimburse the applicable Issuing Bank,
then to such Revolving Lenders and the applicable Issuing Bank as their
interests may appear. Any payment made by a Revolving Lender pursuant to this
paragraph to reimburse the applicable Issuing Bank for any LC Disbursement
(other than the funding of ABR Revolving Loans or a Swingline Loan as
contemplated above) shall not constitute a Loan and shall not relieve the
Borrowers of their obligation to reimburse such LC Disbursement. Notwithstanding
any other provision of this Agreement, in no case shall the Bermuda Borrowers be
obligated to reimburse, nor shall any reimbursement made hereunder by the
Bermuda Borrowers be applied to reimburse, an LC Disbursement which does not
constitute a Bermuda Obligation. 

54 

         
(f) Obligations Absolute. The Borrowers’
obligation to reimburse LC Disbursements as provided in paragraph (e) of this
Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms
of this Agreement under any and all circumstances whatsoever and irrespective of
(i) any lack of validity or enforceability of any Letter of Credit or this
Agreement, or any term or provision therein; (ii) any draft or other document
presented under a Letter of Credit proving to be forged, fraudulent or invalid
in any respect or any statement therein being untrue or inaccurate in any
respect; (iii) payment by an Issuing Bank under a Letter of Credit against
presentation of a draft or other document that does not comply with the terms of
such Letter of Credit; or (iv) any other event or circumstance whatsoever,
whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrowers’ obligations hereunder. Neither
the Administrative Agent, the Revolving Lenders nor any Issuing Bank, nor any of
their Related Parties, shall have any liability or responsibility by reason of
or in connection with the issuance or transfer of any Letter of Credit or any
payment or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the
applicable Issuing Bank; provided that the foregoing shall not
be construed to excuse the applicable Issuing Bank from liability to the
Borrowers to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrowers to the
extent permitted by Requirements of Law) suffered by any Borrower that are
caused by the applicable Issuing Bank’s failure to exercise the standard of care
hereunder to be applicable when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties
hereto expressly agree that, in the absence of gross negligence or willful
misconduct on the part of an Issuing Bank (as finally determined by a court of
competent jurisdiction by final and nonappealable judgment), such Issuing Bank
shall be deemed to have exercised such standard of care in each such
determination. In furtherance of the foregoing and without limiting the
generality thereof, the parties agree that, with respect to documents presented
which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, the applicable Issuing Bank may, in its sole discretion,
either accept and make payment upon such documents without responsibility for
further investigation, or refuse to accept and make payment upon such documents
if such documents are not in strict compliance with the terms of such Letter of
Credit. 

          (g) Disbursement Procedures. The
applicable Issuing Bank shall, promptly following its receipt thereof, examine
all documents purporting to represent a demand for payment under a Letter of
Credit. The applicable Issuing Bank shall promptly notify the Administrative
Agent and the Borrower Representative by PDF or facsimile of such demand for
payment and whether such Issuing Bank has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such notice shall
not relieve the Borrowers of their obligation to reimburse the applicable
Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

         
(h) Interim Interest. If any Issuing Bank
shall make any LC Disbursement, then, unless the Borrowers shall reimburse such
LC Disbursement in full on the date such LC Disbursement is made, the unpaid
amount thereof shall accrue interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrowers reimburse such LC Disbursement, at the rate per annum then
applicable to ABR Revolving Loans; provided that if the Borrowers fail to
reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then
Section 2.14(e) shall apply. Interest accrued pursuant to this paragraph shall be for
the account of the applicable Issuing Bank, except that interest accrued on and
after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse the
applicable Issuing Bank shall be for the account of such Revolving Lender to the
extent of such payment. 

55 

          (i) Replacement of the Issuing Bank. Any
Issuing Bank may be replaced at any time by written agreement among the Borrower
Representative, the Administrative Agent and the successor Issuing Bank. The
Administrative Agent shall notify the Revolving Lenders of any such replacement
of an Issuing Bank. At the time any such replacement shall become effective, the
Borrowers shall pay all unpaid fees accrued for the account of the replaced
Issuing Bank pursuant to Section
2.13(b). From and after the effective date of
any such replacement, (i) the successor Issuing Bank shall have all the rights
and obligations of an Issuing Bank under this Agreement with respect to Letters
of Credit to be issued thereafter and (ii) references herein to the term
“Issuing Bank” shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require. After the replacement of an Issuing Bank hereunder, the
replaced Issuing Bank shall remain a party hereto and shall continue to have all
the rights and obligations of an Issuing Bank under this Agreement with respect
to Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit. 

         
(j) Cash
Collateralization. Subject to Section 2.19(b), if any
Event of Default shall occur and be continuing, on the Business Day that the
Borrower Representative receives notice from the Administrative Agent or the
Required Revolving Lenders demanding the deposit of cash collateral pursuant to
this paragraph, (i) the Company shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lender Parties (the “U.S. LC
Collateral Account”), an amount in cash equal
to 105% of the LC Exposure as of such date plus accrued and unpaid interest
thereon, and (ii) without duplication under clause (i), the Bermuda Borrowers
shall deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Lender Parties (the
“Non-U.S. LC Collateral
Account”), an amount in cash equal to 105% of
the LC Exposure with respect to the Bermuda Borrowers as of such date plus
accrued and unpaid interest thereon; provided that in each case the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to any Borrower described in paragraph
(h) or (i) of Article VII. Such deposit shall be
held by the Administrative Agent as collateral for the payment and performance
of the Secured Obligations, in the case of deposits in the U.S. LC Collateral
Account, and the Bermuda Secured Obligations, in the case of deposits in the
Non-U.S. LC Collateral Account. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over each
such account and (x) the Company hereby grants the Administrative Agent (for the
benefit of the Lender Parties) a security interest in the U.S. LC Collateral
Account to secure the Secured Obligations and (y) the Bermuda Borrowers hereby
grant the Administrative Agent (for the benefit of the Lender Parties) a
security interest in the Non-U.S. LC Collateral Account to secure the Bermuda
Secured Obligations. Other than any interest earned on the investment of such
deposits, which investments shall be in the form of
Permitted Investments made at the option and sole discretion of the
Administrative Agent (in accordance with its usual and customary practices for
investments of this type) and at the Borrowers’ risk and reasonable expense,
such deposits shall not accrue interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in each such account shall
be applied by the Administrative Agent to reimburse the applicable Issuing Bank
for LC Disbursements for which it has not been reimbursed and, to the extent not
so applied, shall be held for the satisfaction of the reimbursement obligations
of the Company or the Bermuda Borrowers, as applicable, for the LC Exposure at
such time or, if the maturity of the Loans has been accelerated (but subject to
the consent of the Required Revolving Lenders), be applied, in the case of
deposits in the U.S. LC Collateral Account, to satisfy other Secured Obligations
or, in the case of deposits in the Non-U.S. LC Collateral Deposit Account, to
satisfy other Bermuda Secured Obligations. If the Borrowers are required to
provide an amount of cash collateral hereunder as a result of the occurrence of
an Event of Default, such amount (to the extent not applied as aforesaid) shall
be returned to the Borrowers within three Business Days after all such Events of
Default have been cured or waived. 

56 

          (k) Existing Letters of Credit. On the
Effective Date, all letters of credit that were outstanding pursuant to the
Prior Credit Agreement (as set forth in the Effective Date Loans and Letters of
Credit Schedule) shall, as provided in the Amendment and Restatement Agreement,
automatically and without further action, be deemed to be a Letter of Credit
that has been issued hereunder as of the Effective Date for all purposes
hereunder and under the other Loan Documents. Without limiting the foregoing (i)
each such letter of credit shall be included in the calculation of LC Exposure,
(ii) all liabilities of the Borrowers and the other Loan Parties with respect to
such letters of credit shall constitute Obligations and (iii) each Lender shall
have reimbursement obligations with respect to such letters of credit as
provided in this Section 2.06. 

          SECTION
2.07. Funding
of Borrowings. (a) Each Lender shall make
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds by 10:00 a.m., Denver, Colorado time, to
the account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders in an amount equal to such Lender’s Applicable
Percentage; provided that Term Loans shall be made as provided in Sections 2.01(b),
(c) and
(d) and
2.02(b) and
Swingline Loans shall be made as provided in Section 2.05. The Administrative Agent
will make such Loans available to the Borrower Representative promptly by
crediting the amounts so received, in like funds, to the Funding Account(s);
provided
that ABR Revolving Loans made to finance the reimbursement of (i) an LC
Disbursement as provided in Section
2.06(e) shall be remitted by the
Administrative Agent to the Issuing Bank and (ii) a Protective Advance shall be
retained by the Administrative Agent. 

         
(b) Unless
the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such assumption,
make available to the applicable Borrower a corresponding amount. In such event,
if a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender
and the Borrowers severally agree to pay to the Administrative Agent forthwith
on demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the applicable Borrower to
but excluding the date of payment to the Administrative Agent, at (i) in the
case of such Lender, the greater of the Federal Funds Effective Rate and a rate
reasonably determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation, or (ii) in the case of the Borrowers,
the interest rate applicable to ABR Loans. If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender’s Loan
included in such Borrowing. 

57 

          SECTION 2.08. Interest Elections. (a)
Each Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an
initial Interest Period as specified in such Borrowing Request. Thereafter, the
Borrower Representative may elect to convert such Borrowing to a Borrowing of a
different Type or to continue such Borrowing and, in the case of a Eurodollar
Borrowing, may elect Interest Periods therefor, all as provided in this Section.
The Borrower Representative may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Term B-2 Borrowings,
Swingline Borrowings or Protective Advances, which may not be converted or
continued.

         
(b) To make
an election pursuant to this Section, the Borrower Representative shall notify
the Administrative Agent of such election in an Interest Election Request signed
by the Borrower Representative and delivered by PDF or facsimile by the time
that a Borrowing Request would be required under Section 2.03 if the Borrowers were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such Interest Election Request
shall be irrevocable. 

         
(c) Each
Interest Election Request shall specify the following information in compliance
with Section 2.02: 

     (i) the Borrower and the Borrowing to which such Interest Election Request
applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting
Borrowing (in which case the information to be specified pursuant to
paragraphs (iii) and (iv) below shall be specified for each resulting Borrowing); 

     (ii)
the effective date of the election made pursuant
to such Interest Election Request, which shall be a Business Day; 

     (iii)
whether the resulting Borrowing is to be an ABR
Borrowing or a Eurodollar Borrowing; and 

     (iv)
if the resulting Borrowing is a Eurodollar
Borrowing, the Interest Period to be applicable thereto after giving effect to
such election, which shall be a period contemplated by the definition of the
term “Interest Period”. 

58 

If any such Interest Election Request
requests a Eurodollar Borrowing but does not specify an Interest Period, then
the Borrowers shall be deemed to have selected an Interest Period of one month’s
duration. 

         
(d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each applicable Lender of the details thereof
and of such Lender’s portion of each resulting Borrowing. 

         
(e) If the
Borrower Representative fails to deliver a timely Interest Election Request with
respect to a Eurodollar Borrowing prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein, at
the end of such Interest Period such Borrowing shall be converted to an ABR
Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default
has occurred and is continuing and the Administrative Agent, at the request of
the Required Lenders, so notifies the Borrower Representative, then, so long as
an Event of Default is continuing (i) no outstanding Borrowing may be converted
to or continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto. 

          SECTION
2.09. Termination and Reduction of Commitments. (a) Unless previously terminated, (i) the Delayed Draw Term Loan
Commitment shall be reduced, dollar-for-dollar, by the aggregate principal
amount of Delayed Draw Term Loans made hereunder from time to time, (ii) the
Revolving Credit Commitment shall terminate on the earlier to occur of (A) the
Maturity Date and (B) the occurrence of any event described in clause (i) or
(ii) of
Section 2.12(g) and (iii) the Delayed Draw Term Loan Commitments shall terminate on the
earlier to occur of (A) December 28, 2014 and (B) the occurrence of any event
described in clause (i) or (ii) of Section
2.12(g).

         
(b) The
Borrower Representative may at any time terminate the Revolving Commitments in
their entirety upon (i) the payment in full in cash of all outstanding Loans,
together with accrued and unpaid interest thereon and on any Letters of Credit;
(ii) the cancellation and return of all outstanding Letters of Credit (or
alternatively, with respect to such Letters of Credit, the deposit by the
applicable Borrower in the applicable LC Collateral Accounts of cash (or, with
the consent of the Administrative Agent, the Required Lenders and each
applicable Issuing Bank, a back-up standby letter of credit) equal to 105% of
the LC Exposure as of such date in accordance with Section 2.06(j); (iii) the payment in
full in cash of the accrued and unpaid fees; and (iv) the payment in full in
cash of all accrued and unpaid reimbursable expenses and other Obligations
together with accrued and unpaid interest thereon.

         
(c) The
Borrower Representative may from time to time reduce the Commitments;
provided
that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $10,000,000 and not less than $25,000,000 (or, in either
case, if less, the aggregate remaining applicable Commitment) and (ii) the
Borrowers shall not reduce the Revolving Commitments if, after giving effect to
any concurrent prepayment of the Revolving Loans in accordance with
Section 2.11, the Aggregate Revolving Exposure would exceed the aggregate Revolving
Commitments.

59 

         
(d) The
Borrower Representative shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraphs (b) or (c) of this Section at least three
Business Days prior to the effective date of such termination or reduction,
specifying such election and the effective date thereof. Promptly following
receipt of any notice, the Administrative Agent shall advise the Lenders of the
contents thereof. Each notice delivered by the Borrower Representative pursuant
to this Section shall be irrevocable; provided that a notice of termination
of the Commitments delivered by the Borrower Representative may state that such
notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Borrower Representative (by notice
to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Commitments
shall be permanent. Each reduction of the Commitments shall be made ratably
among the Lenders in accordance with their respective Commitments. 

         
(e) For
clarification purposes only, no commitments exist by any of the Lenders as of
the Effective Date to make available additional Term B Loans. 

          SECTION
2.10. Increase
in Commitments. 

         
(a) (i)
After the Effective Date, the Borrowers shall have the right to increase the
aggregate Revolving Commitments by obtaining additional Revolving Commitments
(“Incremental
Revolving Commitments”), either from one or
more of the Lenders or an additional Eligible Incremental Lender;
provided
that (A) any such Incremental Revolving Commitment shall be in a minimum amount
of $25,000,000; (B) the aggregate amount of all Incremental Revolving
Commitments effected pursuant hereto shall not exceed $250,000,000; (C) after
giving effect to any such Incremental Revolving Commitment, the aggregate
Commitments shall not exceed $1,850,000,000; (D) any such new Revolving Lender
shall have assumed all of the rights and obligations of a “Revolving Lender”
hereunder; (E) any such Incremental Revolving Commitments shall, subject to
Section 2.10(e), be on the same terms as the other Revolving Commitments; and (F) all of
the procedures and other conditions described in this Section 2.10 shall have been
satisfied. 

          (ii) After
the earlier to occur of (x) the Term B Loans having been repaid in full in cash
and (y) January 1, 2015, the Borrowers shall have the right to increase the
aggregate Delayed Draw Term Loan Commitments by obtaining additional Term Loan
Commitments (“Incremental Term Commitments”), either
from one or more of the Lenders or an additional Eligible Incremental Lender;
provided
that (A) any such Incremental Term Commitment shall be in a minimum amount of
$25,000,000; (B) the aggregate amount of all Incremental Term Commitments
effected pursuant hereto shall not exceed $500,000,000; (C) after giving effect
to any such Incremental Term Commitment, the aggregate Commitments shall not
exceed $1,850,000,000; (D) any such new Term Lender shall have assumed all of
the rights and obligations of a “Term Lender” hereunder; (E) any such
Incremental Term Commitments shall, subject to Section 2.10(e), be on the same terms
as the other Delayed Draw Term Loan Commitments; and (F) all of the procedures
and other conditions described in this Section
2.10 shall have been satisfied. 

60 

         
(b) The
Borrower Representative shall request an Incremental Commitment by delivering a
notice (an “Incremental Commitment
Request”) to the Administrative Agent,
who shall promptly notify the Lenders of
the substance thereof. The notice by the Administrative Agent to the Lenders
describing each Incremental Commitment Request shall specify the time period (to
be determined by the Borrower Representative in consultation with the
Administrative Agent, but in no event be less than 15 Business Days from the
date of delivery by the Borrower of the applicable Incremental Commitment
Request to the Administrative Agent) within which each Lender is required to
inform the Borrower Representative and the Administrative Agent whether such
Lender intends to participate in the applicable Incremental Commitment. Each
Lender shall notify the Administrative Agent within the required time period
whether or not it agrees to participate in the applicable Incremental Commitment
and, if so, shall specify the amount of such Incremental Commitment it desires
to be allocated to it. Any Lender not responding within such time period shall
be deemed to have declined to increase its Commitment. Each determination by a
Lender to participate in an Incremental Commitment shall be made by it in its
sole and absolute discretion.

          (c) The Administrative Agent shall notify the Borrower Representative and
each Lender of the Lenders’ responses to each Incremental Commitment Request.
The Borrowers may obtain the agreement of additional Eligible Incremental
Lenders to become Lenders pursuant to an Incremental Commitment Joinder
Agreement, in substantially the form of Exhibit D (each, an “Incremental Commitment Joinder Agreement”). Each such Eligible Incremental Lender shall, as a
condition to participating in any Incremental Commitment, be required to deliver
all forms, if any, that are required to be delivered by such Eligible
Incremental Lender pursuant to Section
9.04 and any other information that the
Administrative Agent requires from Lenders as a condition to becoming a party to
this Agreement. Any Incremental Commitment shall be allocated among the existing
Lenders that agree to participate in such Incremental Commitment and additional
Eligible Incremental Lenders who agree to become Lenders pursuant to an
Incremental Commitment Joinder Agreement (in each case, up to the amount of each
such Person’s agreed participation) as agreed by the Borrower Representative and
the Administrative Agent.

         
(d) Any
amendment hereto solely for Incremental Commitments shall be in form and
substance satisfactory to the Administrative Agent and shall only require the
written signatures of the Administrative Agent, the Borrower Representative (on
behalf of the Borrowers) and the Lender(s) being added or increasing their
Commitments. As a condition precedent to any such increase, the Borrowers shall
deliver to the Administrative Agent a certificate of each Loan Party (in
sufficient copies for each Lender) signed by an authorized officer of such Loan
Party (i) certifying and attaching the resolutions adopted by such Loan Party
approving or consenting to such increase; and (ii) in the case of the Borrowers,
certifying that, before and immediately after giving effect to such increase,
(A) the representations and warranties contained in Article III and the other Loan
Documents shall be true and correct, except that such representations and
warranties that relate solely to an earlier date shall be true and correct in
all material respects as of such earlier date; (B) no Default or Event of
Default shall have occurred and be continuing or would result from any such
Incremental Commitment; and (C) at the time of and immediately after giving
effect to each such Incremental Commitment, the Borrowers shall be in compliance
with the covenant set forth in Section
6.13 (on a Pro Forma Basis for the Test
Period for which financial statements have been delivered pursuant to
Section 5.01(a) or
(b) ending
immediately preceding such Incremental Commitment), which compliance shall be
evidenced by the due completion, execution and delivery of a Compliance
Certificate and based on the assumption that such
Incremental Commitment was fully drawn on the first day of such Test Period.

61 

          (e) The terms and provisions of the Loans made with respect to any
Incremental Commitments shall (i) rank pari passu in right of payment and of
security with, and shall have the same guarantees as the existing Loans; (ii)
have a maturity date that is not earlier than the Maturity Date of the Delayed
Draw Term Loans; (iii) have a weighted average life to maturity that is no
shorter than the weighted average life to maturity of the Delayed Draw Term
Loans; (iv) have a rate of interest as set forth in each applicable Incremental
Commitment Joinder Agreement; provided that if such interest rate is
greater than the interest rate on the Delayed Draw Term Loans, the interest rate
on the existing Loans shall be increased so as to equal the interest rate
applicable to the incremental Loans comprising such Incremental Loan Borrowing;
and (v) otherwise be treated the same as, and not be entitled to any additional
benefits than or impose any more obligations than, the Delayed Draw Term Loans.

         
(f) Any
existing Lender that has a Note and participates in any Incremental Commitment
shall, substantially contemporaneously with the delivery of its Note to be
replaced to the Borrowers, receive a replacement Note that evidences the
aggregate principal amount of its Loans outstanding hereunder. Any new Lender
requesting a Note shall receive such a Note in an amount equal to the aggregate
principal amount of the Incremental Commitments for which its funds pursuant to
the terms of this Section. 

         
(g) Within
a reasonable time after the effective date of any Incremental Commitment, the
Administrative Agent shall, and is hereby authorized and directed to, revise the
Commitment Schedule to reflect any Incremental Commitment and shall distribute such revised
Commitment Schedule to each of the Lenders and the Borrowers, whereupon such revised
Commitment Schedule shall replace the prior Commitment
Schedule and become part of this Agreement.
On the Business Day following any such increase, all outstanding ABR Advances
shall be reallocated among the Lenders (including any newly added Lenders) in
accordance with the Lenders’ respective revised Applicable Percentages.
Eurodollar Advances shall not be reallocated among the Lenders prior to the
expiration of the applicable Interest Period in effect at the time of any such
increase. 

          SECTION
2.11. Repayment
and Amortization of Loans; Evidence of Debt.
(a) The Borrowers hereby unconditionally promise to pay (i) to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Revolving Loan on the Maturity Date; (ii) to the Administrative
Agent the then unpaid amount of each Protective Advance on the earlier of the
Maturity Date and demand by the Administrative Agent; (iii) to the Swingline
Lender the then unpaid principal amount of each Swingline Loan on the earlier of
the Maturity Date and demand by the Swingline Lender.

         
(b) Beginning on April 15, 2015 and continuing on the 15th day of
each July, October, January and April thereafter, the Borrowers shall repay
1.875% of the aggregate outstanding principal amount of the Delayed Draw Term
Loans that are outstanding on December 28, 2014. To the extent not previously
paid, all unpaid Delayed Draw Term Loans shall be paid in full in cash by the
Borrowers on the Maturity Date for the Delayed Draw Term Loans. 

62 

         
(c) To the
extent not previously paid, all unpaid Term B Loans shall be paid in full in
cash by the Borrowers on the Maturity Date for the Term B Loans. 

         
(d) Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrowers to such Lender resulting
from each Loan made by such Lender, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder.

         
(e) The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class and Type thereof and the Interest
Period applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrowers to each Lender hereunder
and (iii) the amount of any sum received by the Administrative Agent hereunder
for the account of the Lenders and each Lender’s share thereof. 

         
(f) The
entries made in the accounts maintained pursuant to paragraphs (e) or (f) of this Section shall
be evidence, absent manifest error, of the existence and amounts of the
obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrowers to repay
the Loans in accordance with the terms of this Agreement. 

         
(g) Any
Lender may request that Loans made by it be evidenced by a Note. In such event,
the Borrowers shall prepare, execute and deliver to such Lender a Note payable
to the order of such Lender (or, if requested by such Lender, to such Lender and
its registered assigns). Thereafter, the Loans evidenced by such Note and
interest thereon shall at all times (including after assignment pursuant to
Section 9.04) be represented by one or more Notes in such form payable to the order
of the payee named therein (or, if such Note is a registered note, to such payee
and its registered assigns). 

          SECTION
2.12. Prepayment of Loans. (a) The Borrowers
shall have the right at any time and from time to time to prepay any Borrowing
in whole or in part, subject to prior notice in accordance with paragraph (f) of this
Section and payment of any amounts that are required to be paid pursuant to
Section 2.17. 

         
(b) In the
event and on such occasion that the Aggregate Revolving Exposure exceeds the
lesser of (A) the aggregate Revolving Commitments and (B) the Borrowing Base,
the Borrowers shall promptly (but in no event later than 8:00 a.m., Denver,
Colorado time, the following Business Day) prepay (or in the case of the LC
Exposure, cash collateralize) the Revolving Loans, LC Exposure and/or Swingline
Loans in an aggregate amount equal to such excess. 

63 

         
(c) In the
event and on each occasion that any Net Proceeds are received by or on behalf of
any Loan Party in respect of any Prepayment Event (other than any event
described in paragraph
(c)(iii) of the definition of the term
“Prepayment Event”, in which case the Net Proceeds therefrom shall be applied
pursuant to this paragraph (c) on the date that is 120 days after the end of each Fiscal
Year in which such Net Proceeds were received), the Borrowers shall, immediately
after such Net Proceeds are received by any Loan Party, prepay the
Obligations as set forth in
Section 2.12(e) below in an aggregate amount equal to (i) in the case of a prepayment
event described in paragraph
(c) of the definition of the term “Prepayment
Event”, at any time that the sum of the Borrowers’ cash on hand and Availability
exceeds $850,000,000, 50% of such Net Proceeds; and (ii) in the case of all
other Prepayment Events, 100% of such Net Proceeds; provided that, in the case of any such
“Prepayment Event”, if, within 365 days after receipt of such Net Proceeds, the
Loan Parties have a signed commitment to apply the Net Proceeds from such event
(or a portion thereof) to acquire (or replace or rebuild) assets useful in the
business of the Loan Parties, and no Default has occurred and is continuing,
then no prepayment shall be required pursuant to this paragraph in respect of
the Net Proceeds so long as such Net Proceeds are actually reinvested by the
Borrowers within 180 days after the expiration of such 365 day period;
provided,
further,
that if any such Net Proceeds therefrom that have not been so applied by the end
of such 180-day period, the Borrowers shall immediately prepay the Obligations
in an amount equal to such Net Proceeds that have not been so committed or
applied. 

         
(d) Until
the payment in full in cash of the Term B Loans, the Borrowers shall prepay the
Obligations (other than the Delayed Draw Term Loans) as set forth in
Section 2.12(e) on the date that is (A) on or prior to 120 days (in the case of the Term
B-1 Loans) or (B) 120 days (in the case of the Term B-2 Loans), in each case
after the end of each Fiscal Year, in an amount equal to (i) 75% (or, if the
aggregate principal amount of the Term B Loans on the last day of the Fiscal
Year immediately preceding such date of prepayment is $400,000,000 or less, 50%)
of the Company’s Excess Cash Flow for the immediately preceding Fiscal Year
minus (ii) the aggregate principal amount of the Term Loans and (to the extent
accompanied by a permanent reduction of the Revolving Commitments) the Revolving
Loans that the Borrowers have prepaid pursuant to Section 2.12(a) during the period
beginning on the first day of the applicable Fiscal Year for which Excess Cash
Flow is being calculated and ending on the date such prepayment pursuant to this
paragraph (d) is required to be made, so long as such amounts have not been deducted
from previous prepayments required pursuant to this paragraph (d). Each Excess Cash Flow
prepayment shall be accompanied by a certificate signed by a Financial Officer
of the Company certifying the manner in which Excess Cash Flow and the resulting
prepayment were calculated, which certificate shall be in form and substance
satisfactory to the Administrative Agent. 

         
(e) All
such amounts pursuant to Sections
2.12(c) and (d) shall be applied, first to prepay any
Protective Advances that may be outstanding, second to prepay the Term Loans (to be
applied to installments of the Term Loans ratably in accordance with the then
outstanding amounts thereof), third to prepay the Swingline Loans,
fourth to
prepay the Revolving Loans without a corresponding reduction in the Revolving
Commitment and fifth to cash collateralize outstanding LC Exposure (in an amount
equal to 100% of the amount thereof) without a corresponding reduction in the
Revolving Commitment; provided that the amounts applied pursuant to Section 2.12(d) shall not
be applied to the prepayment of the Delayed Draw Term Loans. All such amounts
pursuant to Section 2.12(a) may be applied to prepay the Revolving Loans or the Term
Loans, as the Borrower Representative shall direct; provided that any amounts applied
pursuant to Section 2.12(a) to prepay the Term Loans shall be applied first to the next
four scheduled principal installments of the Term B Loans, and thereafter
ratably in accordance with the then outstanding amounts thereof. Notwithstanding
the foregoing, (i) in the case of any mandatory prepayment of the Term B-2 Loans
pursuant to (A) Section
2.12(c) in connection
with any event described in paragraph
(c) or (d) of the definition of the term
“Prepayment Event” or (B) Section
2.12(g), any Term B-2 Lender may elect not to
have its Term B-2 Loans prepaid by delivering a notice of such election to the
Administrative Agent and the Borrower Representative not later than 5:00 p.m.,
Denver, Colorado time, on the Business Day that the Borrower Representative
provides notice of such prepayment to the Administrative Agent pursuant to
Section 2.12(f), in which case the amounts that would have been applied to a prepayment
of such Term B-2 Loans shall instead be applied in the order set forth in the
preceding sentence, except that no such amounts shall be applied to prepay any
of the Term B-2 Loans; and (ii) any such application of proceeds from Collateral
securing solely the Bermuda Secured Obligations shall be made solely in respect
of the Bermuda Secured Obligations. 

64 

          (f) The Borrower Representative shall notify the Administrative Agent (and,
in the case of prepayment of a Swingline Loan, the Swingline Lender) by PDF or
facsimile of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Borrowing, not later than 11:00 a.m., Denver, Colorado time, three
Business Days before the date of prepayment; (ii) in the case of prepayment of
an ABR Borrowing or Term B-2 Borrowing, not later than 11:00 a.m., Denver,
Colorado time, one Business Day before the date of prepayment; or (iii) in the
case of prepayment of a Swingline Loan, not later than 2:00 p.m., Denver,
Colorado time, on the date of prepayment. Each such notice shall be irrevocable
and shall specify the prepayment date and the principal amount of each Borrowing
or portion thereof to be prepaid; provided that if a notice of
prepayment is given in connection with a conditional notice of termination of
the Commitments as contemplated by Section
2.09, then such notice of prepayment may be
revoked if such notice of termination is revoked in accordance with
Section 2.09. Promptly following receipt of any such notice relating to a Borrowing,
the Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Revolving Borrowing under Section 2.12(a) shall be in an amount
that would be permitted in the case of an advance of a Revolving Borrowing of
the same Type as provided in Section
2.02. Prepayments shall be accompanied by
accrued interest to the extent required by Section 2.14. 

         
(g) Upon
the occurrence of (i) any merger (whether pursuant to one transaction or a
series of transactions) of the Parent Entity or any of its Affiliates (other
than Subsidiaries of the Company, provided that any such Subsidiary is
not the Parent Entity) into the Company or (ii) any merger (whether pursuant to
one transaction or a series of transactions) of the Company into the Parent
Entity or any of its Affiliates (other than Subsidiaries of the Company,
provided
that any such Subsidiary is not the Parent Entity), all the Commitments shall
automatically terminate, and the Borrowers shall immediately (A) prepay in full
in cash all outstanding Loans, together with accrued and unpaid interest thereon
and on any Letters of Credit; (B) cancel or return all outstanding Letters of
Credit (or alternatively, with respect to such Letters of Credit, deposit in the
applicable LC Collateral Accounts cash (or, with the consent of the
Administrative Agent, the Required Lenders and each applicable Issuing Bank, a
back-up standby letter of credit) equal to 105% of the LC Exposure as of such
date in accordance with Section
2.06(j)); (C) pay in full in cash all accrued
and unpaid fees; and (D) pay in full in cash all accrued and unpaid reimbursable
expenses and other Obligations, together with accrued and unpaid interest
thereon. 

65 

          SECTION
2.13. Fees.

          (a) The Borrowers agree to pay to the Administrative Agent for the account of
each Revolving Lender and Delayed Draw Term Lender, as the case may be, a
commitment fee, which shall accrue at the rate per annum set forth as describe
in, or under the caption “Commitment Fee”, as applicable, in the definition of
“Applicable Rate” on the average daily amount of the Available Revolving
Commitment and Available Delayed Draw Term Loan Commitment, respectively, of
each such Lender during the period from and including the Effective Date to but
excluding the date on which each such Lender’s Revolving Commitment or Delayed
Draw Term Loan Commitment, as the case may be, terminates. Commitment fees
accrued through and including the last day of each calendar quarter shall be
payable on the 15th day of each April, July, October and January of
each year and on the date on which the Revolving Commitment or the Delayed Draw
Term Loan Commitment, as the case may be, terminates, commencing on the first
such date to occur after the Effective Date. All commitment fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed. Solely for purposes of determining the Available
Revolving Commitment in connection with the computation of commitment fees of
the Revolving Lender that is also the Swingline Lender (but no other Lender),
the Revolving Exposure of such Revolving Lender shall be deemed to include the
aggregate principal amount of Swingline Loans. 

         
(b) The
Borrowers agree to pay to the Administrative Agent, for the account of each
Revolving Lender, a participation fee with respect to its participations in
Letters of Credit, which shall accrue at the same Applicable Rate used to
determine the interest rate applicable to Eurodollar Revolving Loans on the
average daily amount of such Lender’s applicable LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period
from and including the Effective Date to but excluding the later of the date on
which such Lender’s Revolving Commitment terminates and the date on which such
Revolving Lender ceases to have any LC Exposure. In addition, the Borrowers
agree to pay the applicable Issuing Bank a fronting fee with respect to each
Letter of Credit, in an amount equal to the greater of (i) 0.125% of the face
amount of such Letter of Credit and (ii) $1,000, payable on the date of the
issuance and any renewal or extension of such Letter of Credit (and, in the
event that the face amount of any Letter of Credit is increased after the date
of issuance thereof, the Borrowers agree to pay the applicable Issuing Bank, on
the date of any such increase, an additional fronting fee in an amount equal to
the greater of (i) 0.125% of the amount by which the face amount of such Letter
of Credit has been increased and (ii) $1,000), as well as the applicable Issuing
Bank’s standard fees with respect to the issuance, amendment, renewal or
extension of any Letter of Credit or processing of drawings thereunder.
Participation fees and fronting fees accrued through and including the last day
of each calendar quarter shall be payable on the 15th day of each
April, July, October and January of each year, commencing on the first such date
to occur after the Effective Date; provided that all such fees shall be
payable on the date on which the Revolving Commitments terminate and any such
fees accruing after the date on which the Revolving Commitments terminate shall
be payable on demand. Any other fees payable to an Issuing Bank pursuant to this
paragraph shall be payable within 10 Business Days after demand. All
participation fees and fronting fees payable pursuant to this paragraph (b) shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed. 

66 

         
(c) The
Borrowers agree to pay to the Administrative Agent and the other Agents, for its
own account, fees payable in the amounts and at the times separately agreed upon
between the Borrowers and the Agents. 

         
(d) All
fees payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent (or to the applicable Issuing Bank or other
Agents, in the case of fees payable to them) for distribution, in the case of
commitment fees and participation fees, to the Lenders. Fees paid shall not be
refundable under any circumstances. 

          SECTION
2.14. Interest. (a) The Loans comprising
each ABR Borrowing (including each Swingline Loan) shall accrue interest at the
Alternate Base Rate plus the Applicable Rate.

         
(b) The
Loans comprising each Eurodollar Borrowing shall accrue interest at the Adjusted
LIBO Rate for the Interest Period in effect for such Borrowing
plus
the Applicable Rate. 

         
(c) The
Term B-2 Loans shall accrue interest at a rate equal to 9% per annum.

         
(d) Each
Protective Advance shall accrue interest at the Alternate Base Rate
plus
the Applicable Rate for Revolving Loans plus 2%. 

         
(e) Notwithstanding the foregoing, during the occurrence and continuance of
an Event of Default, (i) all Loans shall accrue interest at 2%
plus
the rate otherwise applicable to such Loans as provided in the preceding
paragraphs of this Section or (ii) in the case of any other overdue amount
outstanding hereunder, such amount shall accrue interest at 2%
plus
the rate that is applicable to Alternate Base Rate Loans. 

         
(f) Accrued
interest on each Loan (for ABR Loans and Term B-2 Loans, accrued through the
last day of the prior calendar quarter) shall be payable in arrears on each
Interest Payment Date for such Loan and upon termination of the Commitments;
provided
that (i) interest accrued pursuant to paragraph (d) or (e) of this Section shall
be payable on demand, (ii) in the event of any repayment or prepayment of any
Loan, accrued interest on the principal amount repaid or prepaid shall be
payable on the date of such repayment or prepayment and (iii) in the event of
any conversion of any Eurodollar Loan prior to the end of the current Interest
Period therefor, accrued interest on such Loan shall be payable on the effective
date of such conversion. 

         
(g) All
interest hereunder shall be computed on the basis of a year of 360 days (or
365/366 days, in the case of ABR Loans, the interest payable on which is then
based on the Prime Rate) and shall be payable for the actual number of days
elapsed. The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate
shall be determined by the Administrative Agent, and such determination shall be
conclusive absent manifest error. 

67 

          SECTION
2.15. Alternate
Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing: 

     (a) the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not
exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable,
for such Interest Period; or 

    
(b) the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period; 

then the Administrative Agent shall
give notice thereof to the Borrower Representative and the Lenders by telephone
or facsimile as promptly as practicable thereafter and, until the Administrative
Agent notifies the Borrower Representative and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective, and (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing, such Borrowing shall be made as an ABR Borrowing. 

          SECTION
2.16. Increased
Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or Issuing Bank;

     (ii) subject the Administrative Agent, any Lender or the Issuing Bank to any
Taxes (other than (x) Excluded Taxes and (y) Indemnified Taxes and Other Taxes
covered by Section 2.18) imposed as a result of a present or former connection
between such Administrative Agent, Lender or Issuing Bank and the jurisdiction
imposing such Tax on its Loans, Letters of Credit or Commitments, or its
deposits, reserves, other liabilities or capital attributable to such Loans,
Letters of Credit or Commitments; or 

     (iii) impose on any Lender or Issuing Bank or the London interbank market any
other condition affecting this Agreement or Eurodollar Loans made by such Lender
or any Letter of Credit or participation therein; 

and the result of any of the foregoing
shall be to increase the cost to such Lender of making or maintaining any
Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or Issuing Bank of participating in, issuing or
maintaining any Letter of Credit or to reduce the amount of any sum received or
receivable by such Lender or Issuing Bank hereunder (whether of principal,
interest or otherwise in respect of any such Eurodollar Loan or Letter of
Credit), then the Borrowers will pay to such Lender or Issuing Bank, as the case
may be, such additional amount or amounts as will compensate such Lender or
Issuing Bank, as the case may be, for such additional costs incurred or
reduction suffered; provided that the Borrowers shall not be treated less favorably with
respect to such amounts than other similarly situated borrowers of such Lender
or Issuing Bank (it being understood that this provision shall not be construed to obligate any Lender or Issuing Bank to make available any information that, in its sole discretion, it deems confidential).

68 

          
(b) If any
Lender or Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such
Lender’s or Issuing Bank’s capital or on the capital of such Lender’s or Issuing
Bank’s holding company, if any, as a consequence of this Agreement or the Loans
made by, or participations in Letters of Credit held by, such Lender, or Issuing
Bank, to a level below that which such Lender or Issuing Bank or such Lender’s
or Issuing Bank’s holding company could have achieved but for such Change in Law
(taking into consideration such Lender’s or Issuing Bank’s policies and the
policies of such Lender’s or Issuing Bank’s holding company with respect to
capital adequacy), then from time to time the Borrowers will pay to such Lender
or Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or Issuing Bank or such Lender’s or Issuing Bank’s
holding company for any such reduction suffered; provided that the Borrowers shall not
be treated less favorably with respect to such amounts than other similarly
situated borrowers of such Lender or Issuing Bank (it being understood that this
provision shall not be construed to obligate any Lender or Issuing Bank to make
available any information that, in its sole discretion, it deems confidential).

          
(c) A
certificate of a Lender or Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or Issuing Bank or its holding company, as
the case may be, as specified in paragraph
(a) or (b) of this Section shall be delivered
to the Borrower Representative and shall be conclusive absent manifest error.
The Borrowers shall pay such Lender or Issuing Bank, as the case may be, the
amount shown as due on any such certificate within 10 Business Days after
receipt thereof. 

          
(d) Failure
or delay on the part of any Lender or Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or
Issuing Bank’s right to demand such compensation; provided that the Borrowers shall not
be required to compensate a Lender or Issuing Bank pursuant to this Section for
any increased costs or reductions incurred more than 180 days prior to the date
that such Lender or Issuing Bank, as the case may be, notifies the Borrower
Representative of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or Issuing Bank’s intention to claim
compensation therefor; and provided, further, that if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall be extended to include the period of
retroactive effect thereof. 

          
SECTION 2.17. Break Funding Payments; Make-Whole Amounts. (a) In the event of (i) the payment of any principal of any Eurodollar
Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (ii) the conversion of any
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto, (iii) the failure to borrow, convert, continue or prepay any Eurodollar
Loan on the date specified in any notice delivered pursuant hereto (regardless
of whether such notice may be revoked under Section 2.09(d) and is revoked in
accordance therewith), or (iv) the assignment of any Eurodollar Loan other than
on the last day of the Interest Period applicable thereto as a result of a
request by the Borrower Representative pursuant to Section 2.20, then, in any such event,
the Borrowers shall compensate each Lender for the loss, cost and expense
attributable to such event (excluding loss of the
Applicable Rate). A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section shall
be delivered to the Borrower Representative and shall be conclusive absent
manifest error. The Borrowers shall pay such Lender the amount shown as due on
any such certificate within 10 Business Days after receipt thereof.

69 

         
(b) Without
limiting the terms of paragraph
(a) and subject to clause (i) of the last sentence of
Section 2.12(e), in the event of any (x) voluntary prepayment of the Term B-2 Loans
pursuant to Section 2.12(a), (y) mandatory prepayment of the Term B-2 Loans pursuant to
(1) Section 2.12(c) in connection with any event described in paragraph (c) or (d) of the definition of
the term “Prepayment Event” or (2) Section
2.12(g), or (z) repayment of the Term B-2
Loans following the acceleration thereof by the Lenders, pursuant to the last
paragraph of Article VII, as a result of the occurrence of a Change in Control, the
applicable Borrower shall pay, together with each such prepayment, a sum (the
“Make-Whole Amount”) to the Administrative Agent (for the pro rata account of each Term
B-2 Lender) in an amount equal to:

     (i)
a fraction, the numerator of which shall be the
principal amount of the Term B-2 Loans being prepaid, and the denominator of
which shall be the aggregate outstanding principal amount owing with respect to
the Term B-2 Loans immediately prior to such prepayment; 

     multiplied by 

     (ii)
the excess, if any, of: 

     (A) the sum as of the date of such
prepayment of the following: 

     (1) each payment of principal required to
be made with respect to the Term B-2 Loans during the remaining term thereof,
including the principal payment due at the Maturity Date, assuming that all such
payments of the Term B-2 Loans were made when due and that no other prepayment
was made; plus 

     (2) each payment of interest which would be required to be
paid during the remaining term of the Term B-2 Loans on the aggregate principal
amount of the Term B-2 Loans from time to time outstanding (assuming such
payments were made when due as described in paragraph (A)(1) above) at an interest
rate for the remainder of the term of the Term B-2 Loans equal to the annual
interest rate then in effect with respect to the Term B-2 Loans on the date of
prepayment; 

     minus 

     (B) the sum as of the date of such prepayment of the
following: 

     (1) each payment of principal required to
be made with respect to the Term B-2 Loans during the remaining term thereof,
including the principal payment due at the Maturity Date, assuming that all such
payments on the Term B-2 Loans were made when due and that no other prepayment
was made; plus 

70 

     (2) each payment of interest which would
be required to be paid during the remaining term of the Term B-2 Loans on the
aggregate principal amount of the Term B-2 Loans from time to time outstanding
(assuming such payments were made when due as described in paragraph (B)(1) above) at
an interest rate for the remainder of the term of the Term B-2 Loans equal to
the then applicable Matched Maturity U.S. Treasury Rate plus 50 basis points
for the period from the date of prepayment to the Maturity Date; 

and
discounting the amount of such excess (on a monthly basis) from the date fixed
therefor back to the date of such prepayment at a rate equal to the then
applicable Matched Maturity U.S. Treasury Rate for each such date. 

          For the
purpose of calculating the Make-Whole Amount, the term “Matched Maturity U.S. Treasury Rate” shall mean, as of the date any determination thereof is to be made with
respect to any prepayment, a per annum rate equal to the arithmetic mean of the
annual yields to maturity for United States Treasury securities having a term to
maturity equal to the period from the date of such prepayment to the date such
payment would have become due, as quoted in The Wall Street Journal published most
recently prior to the second Business Day preceding the date of prepayment. If
no maturity exactly corresponding to such period shall appear therein, such
yields for the two most closely corresponding published maturities shall be
calculated pursuant to the foregoing sentence, and the Matched Maturity U.S.
Treasury Rate shall be interpolated from such yields on a straight-line basis
(rounding, in the case of relevant periods, to the nearest month). If
The Wall Street Journal no longer publishes such information, such annual yields
shall be determined, by reference to Release H.15 or any successor publication
under the heading “Treasury Constant Maturities” or, for periods less than one
year, “Treasury Bills – Secondary Market”. If Release H.15 is no longer
published, such annual yields shall be determined, at the Borrowers’ expense, by
an independent investment banking firm acceptable to the Borrowers and the
Administrative Agent. The Borrowers acknowledge that the Make-Whole Amount is
being paid to each Term B-2 Lender in consideration of their actual or imputed
funding losses that may be incurred in connection with any voluntary prepayment
of the Term B-2 Loans. 

          SECTION
2.18. Taxes. (a) Any and all payments by or
on account of any obligation of the Borrowers hereunder shall be made without
setoff, counterclaim or other defense, and free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrowers shall
be required by Requirements of Law to deduct or withhold any Indemnified Taxes
or Other Taxes from such payments, then (i) subject to paragraph (g), the sum
payable shall be increased as necessary so that after making all required
deductions or withholding (including deductions or withholding applicable to
additional sums payable under this Section) the Administrative Agent, Lender or
Issuing Bank (as the case may be) receives an amount equal to the sum it would
have received had no such deductions or withholding been made; (ii) the
Borrowers shall make such deductions or withholding; and (iii) the Borrowers
shall pay the full amount deducted or withheld to the relevant Governmental
Authority in accordance with Requirements of Law. 

         
(b) In
addition, the Borrowers shall pay any Other Taxes to the relevant Governmental
Authority in accordance with Requirements of Law. 

71 

         
(c) Subject
to paragraph (g), the Borrowers, except as set forth below, shall jointly and severally
indemnify the Administrative Agent, each Lender and the Issuing Bank, within 10
Business Days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes levied, assessed on (whether or not directly
paid by) the Administrative Agent, such Lender or the Issuing Bank, as the case
may be, on or with respect to any payment by or on account of any obligation of
the Borrowers hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority;
provided
that, notwithstanding anything to the contrary herein, the Bermuda Borrowers
shall have no obligation to indemnify any Person with respect to Indemnified
Taxes or Other Taxes levied in respect of payments made by the Company or
obligations that do not constitute Bermuda Obligations. A certificate as to the
amount of such payment or liability delivered to the Borrower Representative by
a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf
or on behalf of a Lender or the Issuing Bank, shall be conclusive absent
manifest error. 

         
(d) As soon
as practicable after any payment of Indemnified Taxes or Other Taxes, and in any
event within 45 days of any payment being due, by the Borrowers to a
Governmental Authority, the Borrower Representative shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably satisfactory
to the Administrative Agent. 

         
(e) Each
Lender (other than a Foreign Lender) on or prior to the date on which such
Lender becomes a Lender hereunder (and from time to time thereafter upon the
reasonable request of the Borrower or the Administrative Agent, but only for so
long as such Lender is legally entitled to do so), shall deliver to the
Borrowers and the Administrative Agent two completed copies of Internal Revenue
Service Form W-9. 

         
(f) Each
Foreign Lender, on or prior to the date on which such Foreign Lender becomes a
Lender hereunder (and from time to time thereafter upon the reasonable request
of the Borrower or the Administrative Agent, but only for so long as such
Foreign Lender is legally entitled to do so), shall deliver to the Borrowers and
the Administrative Agent either 

     (i)
two duly completed copies of either (x) Internal
Revenue Service Form W-8BEN claiming eligibility of the Foreign Lender for
benefits of an income tax treaty to which the United States is a party or (y)
Internal Revenue Service Form W-8ECI, or in either case an applicable successor
form; or 

     (ii)
in the case of a Foreign Lender that is not
legally entitled to deliver either form listed in paragraph (f)(i), (x) a certificate of
a duly authorized officer of such Foreign Lender to the effect that such Foreign
Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of any Borrower within the meaning of
Section 881(c)(3)(B) of the Code, or (C) a controlled foreign corporation
receiving interest from a related Person within the meaning of Section 881(c)(3)(C) of the Code (such certificate, an “Exemption Certificate”) and
(y) two duly completed copies of Internal Revenue Service Form W-8BEN or
applicable successor form. 

72 

         
(g) The
Borrowers shall not be obligated to pay any additional amounts to any Lender
pursuant to paragraph (a), or to indemnify any Lender pursuant to paragraph (c), in respect
of United States federal withholding taxes to the extent imposed as a result of
(i) the failure of such Lender to deliver to the Borrowers the form or forms
and/or an Exemption Certificate, as applicable to such Lender, pursuant to
paragraph (e) or (f), (ii) such form or forms and/or Exemption Certificate not establishing a
complete exemption from U.S. federal withholding tax on payments of interest or
the information or certifications made therein by the Lender being untrue or
inaccurate on the date delivered in any material respect, or (iii) the Lender
designating a successor lending office at which it maintains its Loans which has
the effect of causing such Lender to become obligated for tax payments in excess
of those in effect immediately prior to such designation; provided that the Borrowers
shall be obligated to pay additional amounts to any such Lender pursuant to
paragraph (a), and to indemnify any such Lender pursuant to paragraph (c), in respect of United
States federal withholding taxes if (i) any such failure to deliver a form or
forms or an Exemption Certificate or the failure of such form or forms or
Exemption Certificate to establish a complete exemption from U.S. federal
withholding tax on payments of interest or inaccuracy or untruth contained
therein resulted from a change in any applicable statute, treaty, regulation or
other applicable law or any interpretation of any of the foregoing occurring
after the Effective Date, which change rendered such Lender no longer legally
entitled to deliver such form or forms or Exemption Certificate or otherwise
ineligible for a complete exemption from such U.S. federal withholding tax, or
rendered the information or certifications made in such form or forms or
Exemption Certificate untrue or inaccurate in a material respect, (ii) the
redesignation of the Lender’s lending office was made at the request of the
Borrowers, or (iii) the obligation to pay any additional amounts to any such
Lender pursuant to paragraph
(a) or to indemnify any such Lender pursuant
to paragraph (c) is with respect to an assignee Lender that becomes a Lender pursuant to
a request by a Borrower under Section 2.20(b) or 9.02(d), and such obligation is solely
a result of such Lender not being legally entitled to deliver such form or forms
and/or Exemption Certificate establishing a complete (or partial) exemption from
U.S. federal withholding tax at the time that such assignee Lender becomes a
Lender. 

          SECTION
2.19. Payments
Generally; Allocation of Proceeds; Sharing of Set-offs. (a) The Borrowers shall make each payment required to be
made by them hereunder (whether of principal, interest, fees or reimbursement of
LC Disbursements, or of amounts payable under Section 2.16, 2.17(a) or 2.18) prior to 11:00 a.m.,
Denver, Colorado time, on the date when due, in immediately available funds,
without set off or counterclaim. Any amounts received after such time on any
date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Administrative Agent at
its offices at 5500 South Quebec Street, Greenwood Village, Colorado 80111,
except payments to be made directly to an Issuing Bank or Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.16,
2.17(a),
2.18 and
9.03 shall
be made directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof, but in any event not later than 1:00 p.m., Denver, Colorado
time, on the date of such receipt if received by the Administrative Agent not
later than 11:00 a.m., Denver, Colorado time, on such date. If any payment
hereunder shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day, and, in the case of any
payment accruing interest, interest thereon shall be payable for the period of
such extension. All payments hereunder shall be made in dollars.

73 

         
(b) Any
proceeds of Collateral received by the Administrative Agent after an Event of
Default has occurred and is continuing and the Administrative Agent so elects or
the Required Lenders so direct shall be applied ratably first, to pay any fees
(other than the Make-Whole Amount), indemnities, or expense reimbursements
including amounts then due to the Administrative Agent, the Collateral Agent and
each Issuing Bank from the Borrowers (other than in connection with Banking
Services or Swap Obligations); second, to pay any fees (other than
the Make-Whole Amount) or expense reimbursements then due to the Lender Parties
from the Borrowers (other than in connection with Banking Services or Swap
Obligations); third, to pay interest due in respect of Protective Advances; fourth, to pay the
principal of Protective Advances; fifth, to pay interest then due and
payable on the Loans (other than Protective Advances); sixth, to prepay principal
on the Loans (other than Protective Advances) and LC Disbursements, the
Make-Whole Amount and any amounts owing with respect to Swap Obligations;
seventh, to
pay an amount to the Administrative Agent equal to one hundred five percent
(105%) of the aggregate undrawn face amount of all outstanding Letters of Credit
and the aggregate amount of any unpaid LC Disbursements ratably in accordance
with the then outstanding amounts thereof, to be held as cash collateral for
such Obligations; eighth, to pay any amounts owing with respect to Banking Services;
and ninth,
to pay any other Secured Obligation due to the Administrative Agent or any other
Lender Party by the Borrowers. Notwithstanding anything to the contrary
contained in this Agreement, unless so directed by the Borrower Representative,
or unless an Event of Default is in existence, neither the Administrative Agent
nor any other Lender Party shall apply any payment which it receives to any
Eurodollar Loan of a Class, except (i) on the expiration date of the Interest
Period applicable to any such Eurodollar Loan or (ii) in the event, and only to
the extent, that there are no outstanding ABR Loans of the same Class and, in
any such event, the Borrowers shall pay the break funding payment required in
accordance with Section
2.17(a). The Administrative Agent and the
other Lender Parties shall have the continuing and exclusive right to apply and
reverse and reapply any and all such proceeds and payments to any portion of the
Secured Obligations. Notwithstanding the foregoing, (A) any such application of
proceeds from Collateral securing solely the Bermuda Secured Obligations shall
be made solely in respect of the Bermuda Secured Obligations and (B) Excluded
Swap Obligations with respect to any Loan Guarantor shall not be paid with
amounts received from such Loan Guarantor or such Loan Guarantor’s assets, but
appropriate adjustments shall be made with respect to payments from other Loan
Parties to preserve the allocation to Secured Obligations otherwise set forth
above in this Section. 

74 

         
(c) If any
Lender shall, by exercising any right of set off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans or
participations in LC Disbursements resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Loans and participations in
LC Disbursements and accrued interest thereon than the proportion received by
any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Loans and
participations in LC Disbursements of other Lenders to the extent necessary so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and participations in LC Disbursements; provided that (i) if any
such participations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest; and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Borrowers pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its Loans or
participations in LC Disbursements to any assignee or participant. Each Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under Requirements of Law, that any Lender acquiring a participation pursuant to
the foregoing arrangements may exercise against such Borrower rights of set-off
and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of such Borrower in the amount of such participation.

         
(d) Unless
the Administrative Agent shall have received notice from the Borrower
Representative prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or an Issuing Bank hereunder
that the Borrowers will not make such payment, the Administrative Agent may
assume that the Borrowers have made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or
the Issuing Banks, as the case may be, the amount due. In such event, if the
Borrowers have not in fact made such payment, then each of the Lenders or the
Issuing Banks, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or such Issuing Bank with interest thereon, for each day from and
including the date such amount is demanded to but excluding the date of payment
to the Administrative Agent, at the greater of the Federal Funds Effective Rate
and a rate reasonably determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation. 

         
(e) If any
Lender shall fail to make any payment required to be made by it pursuant to
Section 2.05, 2.06(d) or (e), 2.07(b), 2.19(d) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding
any contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations under such Sections until all such unsatisfied obligations are fully
paid. 

          SECTION
2.20. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation under Section 2.16, or if the
Borrowers are required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.18, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.16 or 2.18, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrowers
hereby agree to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment; 

75 

         
(b) If any
Lender requests compensation under Section
2.16, or if the Borrowers are required to pay
any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section
2.18, or if any Lender becomes a Defaulting
Lender, then the Borrowers may (i) at their sole expense and effort, upon notice
to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (A) the
Borrowers shall have received the prior written consent of the Administrative
Agent (and if a Revolving Commitment is being assigned, the Issuing Banks),
which consent shall not unreasonably be withheld, (B) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans
and funded participations in LC Disbursements and Swingline Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrowers (in the case of all other amounts), and the
assignee shall have assumed all unfunded obligations of such Lender in respect
of such Lender’s Revolving Commitment, and (C) in the case of any such
assignment resulting from a claim for compensation under Section 2.16 or payments
required to be made pursuant to Section
2.18, such assignment will result in a
reduction in such compensation or payments; or (ii) if approved by the Required
Lenders, terminate the Commitments of such Lender and repay all non-contingent
obligations of the Borrowers owing to such Lender relating to the Loans and
participations held by such Lender as of such termination date. A Lender shall
not be required to make any such assignment and delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling
the Borrowers to require such assignment and delegation cease to apply. This
Section 2.20 shall not be the exclusive remedy of the Borrowers with respect to any
Lender Party that is a Defaulting Lender. 

          SECTION
2.21. Defaulting Lenders and Voting Participants. Notwithstanding any provision of this Agreement to the contrary, if any
Lender or Voting Participant becomes a Defaulting Lender, then the following
provisions shall apply for so long as such Lender or Voting Participant is a
Defaulting Lender: 

     (a)
fees shall cease to accrue on the unfunded
portion of the Commitments of such Defaulting Lender pursuant to Section 2.13(a);

     (b)
the Commitment, Revolving Exposure and Term
Exposure of such Defaulting Lender shall not be included in determining whether
all Lenders and Voting Participants, the Required Lenders or the Required
Revolving Lenders, as applicable, have taken or may take any action hereunder
(including any consent to any amendment or waiver pursuant to Section 9.02);
provided
that any waiver, amendment or modification requiring the consent of all Lenders
and Voting Participants, or each affected Lender and Voting Participant, which
affects such Defaulting Lender differently than other affected Lenders or Voting
Participants shall require the consent of such Defaulting Lender; 

76 

     (c)
if any Swingline Exposure or LC Exposure exists
at the time a Lender or Voting Participant becomes a Defaulting Lender then:

     (i)
all or any part of such Swingline Exposure and LC
Exposure shall be reallocated among the non-Defaulting Lenders in accordance
with their respective Applicable Percentages but only to the extent (A) the sum
of all non-Defaulting Lenders’ Revolving Exposures plus such Defaulting Lender’s
Swingline Exposure and LC Exposure does not exceed the aggregate of all
non-Defaulting Lenders’ Revolving Commitments and (B) the conditions set forth
in Section 4.02 are satisfied at such time; and 

     (ii) if the reallocation described in paragraph (i) above cannot, or can
only partially, be effected, the Borrowers shall within one Business Day
following notice by the Administrative Agent (A) first, prepay such Swingline
Exposure and (B) second, cash collateralize such Defaulting Lender’s LC Exposure
(after giving effect to any partial reallocation pursuant to paragraph (i)
above) in accordance with the procedures set forth in Section 2.06(j) and for so long as any
such LC Exposure is outstanding; 

     (iii) if the Borrowers cash collateralize any portion of such Defaulting
Lender’s LC Exposure pursuant to this Section
2.21(c), the Borrowers shall not be required
to pay any fees to such Defaulting Lender pursuant to Section 2.13(b) with respect to such
Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC
Exposure is cash collateralized; 

     (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant
to this Section 2.21(c), then the fees payable to the Lenders pursuant to
Sections 2.13(a) and 2.13(b) shall be adjusted in accordance with such non-Defaulting Lenders’
Applicable Percentages; or 

     (v) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor
reallocated pursuant to this Section
2.21(c), then, without prejudice to any
rights or remedies of the applicable Issuing Bank or any Lender hereunder, all
commitment fees that otherwise would have been payable to such Defaulting Lender
(solely with respect to the portion of such Defaulting Lender’s Revolving
Commitment that was utilized by such LC Exposure) and letter of credit fees
payable under Section 2.13(b) with respect to such Defaulting Lender’s LC Exposure shall be
payable to the applicable Issuing Bank until such LC Exposure is cash
collateralized and/or reallocated; 

    
(d) so long
as any Lender or Voting Participant is a Defaulting Lender, no Issuing Bank
shall be required to issue, extend, create, incur, amend, make or increase any
Letter of Credit, unless it is satisfied that the related exposure will be 100%
covered by the Revolving Commitments of the non-Defaulting Lenders and/or cash
collateral will be provided by the Borrowers in accordance with Section 2.21(c), and
participating interests in any such newly issued, extended, created, incurred,
made or increased Letter of Credit or newly made Swingline Loan shall be
allocated among non-Defaulting Lenders in a manner consistent with
Section 2.21(c)(i) (and Defaulting Lenders shall not participate therein); and 

77 

     (e)
any amount payable to such Defaulting Lender
hereunder (whether on account of principal, interest, fees or otherwise and
including any amount that would otherwise be payable to such Defaulting Lender
pursuant to Section 2.19(c) but excluding Section
2.20(b)) shall, in lieu of being distributed
to such Defaulting Lender, be retained by the Administrative Agent in a
segregated account and, subject to any applicable Requirements of Law, be
applied at such time or times as may be determined by the Administrative Agent
first, to
the payment of any amounts owing by such Defaulting Lender to the Administrative
Agent hereunder; second, pro rata, to the payment of any amounts owing by such Defaulting
Lender to the applicable Issuing Bank or Swingline Lender hereunder;
third, if
so determined by the Administrative Agent or requested by an Issuing Bank or the
Swingline Lender, to be held in such account as cash collateral for future
funding obligations of the Defaulting Lender of any participating interest in
any Swingline Loan or any Letter of Credit; fourth, to the funding of any Loan in
respect of which such Defaulting Lender has failed to fund its portion thereof
as required by this Agreement, as determined by the Administrative Agent;
fifth, if
so determined by the Administrative Agent and the Borrower Representative, held
in such account as cash collateral for future funding obligations of the
Defaulting Lender of any Loans under this Agreement; sixth, to the payment of any amounts
owing to the Lenders, the Issuing Banks or the Swingline Lender as a result of
any judgment of a court of competent jurisdiction obtained by any Lender, any
Issuing Bank or the Swingline Lender against such Defaulting Lender as a result
of such Defaulting Lender’s breach of its obligations under this Agreement;
seventh, to
the payment of any amounts owing to the Borrowers as a result of any judgment of
a court of competent jurisdiction obtained by the Borrowers against such
Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; and eighth, to such Defaulting Lender or
as otherwise directed by a court of competent jurisdiction. 

          In the
event that the Administrative Agent, the Borrowers, the Issuing Banks and the
Swingline Lender each agrees that a Defaulting Lender has adequately remedied
all matters that caused such Lender to be a Defaulting Lender, then the
Swingline Exposure and LC Exposure of the Lenders shall be readjusted to reflect
the inclusion of such Lender’s or Voting Participant’s Revolving Commitment and
on such date such Lender or Voting Participant shall purchase at par such of the
Loans of the other Lenders (other than Swingline Loans) as the Administrative
Agent shall determine may be necessary in order for such Lender or Voting
Participant to hold such Loans in accordance with its Applicable Percentage.
This Section 2.21 shall not be the exclusive remedy of the Borrowers with respect to any
Lender Party that is a Defaulting Lender. 

          SECTION
2.22. Returned
Payments. If after receipt of any payment
which is applied to the payment of all or any part of the Obligations, the
Administrative Agent or any Lender is for any reason compelled to surrender such
payment or proceeds to any Person because such payment or application of
proceeds is invalidated, declared fraudulent, set aside, determined to be void
or voidable as a preference, impermissible setoff, or a diversion of trust
funds, or for any other reason, then the Obligations or part thereof intended to
be satisfied shall be revived and continued and this Agreement shall continue in
full force as if such payment or proceeds had not been received by the
Administrative Agent or such Lender. The provisions of this Section 2.22 shall be and
remain effective notwithstanding any contrary action which may have been taken
by the Administrative Agent or any Lender in reliance
upon such payment or application of proceeds. The provisions of this
Section 2.22 shall survive the termination of this Agreement. 

78 

          SECTION
2.23. Bermuda
Obligations. Notwithstanding anything to the
contrary in this Agreement or the other Loan Documents, the term “Borrower”
shall include To-Ricos and To-Ricos Distribution only to the extent of the
Bermuda Obligations. The Bermuda Borrowers shall have no obligation to pay or
reimburse any cost or expense or indemnify or hold harmless any Person with
respect to any Loss that is not a direct and proximate result of the Bermuda
Borrowers’ action (or failure to act). In addition, nothing in this Agreement
shall be interpreted or construed as an agreement by the Bermuda Borrowers to
pay or reimburse, or a direct or indirect Guarantee by the Bermuda Borrowers of,
or direct or indirect pledge of their assets to secure, the U.S. Obligations.

ARTICLE III 

REPRESENTATIONS AND WARRANTIES

          Each Loan
Party represents and warrants to the Lender Parties that: 

          SECTION
3.01. Organization; Powers. Each of the Loan
Parties and each of the Subsidiaries is duly organized or formed and validly
existing under the laws of the jurisdiction of its organization, has all
requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, its jurisdiction of organization or
formation and every jurisdiction where such qualification is
required.

          SECTION
3.02. Authorization; Enforceability. The
Transactions are within each Loan Party’s organizational powers and have been
duly authorized by all necessary organizational actions and, if required,
actions by equity holders. The Loan Documents to which each Loan Party is a
party have been duly executed and delivered by such Loan Party and constitute a
legal, valid and binding obligation of such Loan Party, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law. 

          SECTION
3.03. Governmental Approvals; No Conflicts.
As of the Effective Date, the Transactions (a) do not require any consent or
approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in
full force and effect and except for filings necessary to perfect Liens created
pursuant to the Loan Documents; (b) will not violate any Requirement of Law
applicable to any Loan Party or any of the Subsidiaries; (c) will not violate or
result in a default under any indenture or other agreement or instrument binding
upon any Loan Party or any of the Subsidiaries or its assets, or give rise to a
right under any such indenture, agreement or instrument (other than a Loan
Document) to require any payment to be made by any Loan Party or any of the
Subsidiaries; and (d) will not result in the creation or imposition of any Lien
on any asset of any Loan Party or any of the Subsidiaries, except Liens created
or permitted pursuant to the Loan Documents, except to
the extent that any such failure to make or obtain, or any such violation,
default or payment, in each case referred to in clauses (a) through (c), individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect. 

79 

          SECTION
3.04. Financial
Condition; No Material Adverse Effect. (a)
The Company has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, stockholders equity and cash flows as of and for
the Fiscal Year ended December 30, 2012, reported on by KPMG LLP, independent
public accountants. Such financial statements present fairly, in all material
respects, the financial position and results of operations and cash flows of the
Company on a consolidated basis as of such dates and for such periods in
accordance with GAAP. 

         
(b) No
event, change or condition has occurred that has had, or could reasonably be
expected to have, a Material Adverse Effect, since December 30, 2012 (after
giving effect to the Transactions).

          SECTION
3.05. Properties. (a) As of the Effective
Date, Schedule 3.05(a) sets forth the address of each parcel of real property that
is owned, leased or subleased by each Loan Party (it being understood that the
failure to list on such Schedule real property having an insignificant value
shall not result in a breach of this Section; provided that each Loan Party hereby
represents and warrants that it reasonably believes that such Schedule sets
forth the address of each parcel of real property that is owned, leased or
subleased by each Loan Party as of the Effective Date). Each of such leases and
subleases is valid and enforceable in accordance with its terms and is in full
force and effect, and (i) no default by any Loan Party, or (ii) to the knowledge
of any Loan Party after due inquiry, no default by any other party to any such
lease or sublease exists, except where the foregoing, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect. Each of the Loan Parties and the Subsidiaries has good and indefeasible
title to, or valid leasehold interests in, all its real and personal property
that is material to its business, free of (i) all Liens (other than Permitted
Liens) and (ii) other defects in title that (A) materially interfere with its
ability to conduct its business or to utilize such property, or materially
affect the value of such property, in each case in a manner consistent with the
intended purpose of such assets or property, or (B) could reasonably be expected
to have a Material Adverse Effect. 

         
(b) As of
the Effective Date, Schedule
3.05(b) sets forth a correct and complete
list of (i) all registered trademarks, trade names, copyrights and patents and
(ii) material unregistered trademarks and copyrights, in each case necessary to
the business of the Loan Parties as currently conducted. Except as could not
reasonably be expected to result in a Material Adverse Effect, each of the Loan
Parties and the Subsidiaries owns, or is licensed to use, all trademarks, trade
names, copyrights, patents and other intellectual property necessary to its
business as currently conducted, and the use of such intellectual property by
the Loan Parties and the Subsidiaries does not infringe, individually or in the
aggregate, in any material respect upon the rights of any other Person, and the
Loan Parties’ rights thereto are not subject to any licensing agreement or
similar arrangement, other than immaterial license agreements granted in the
ordinary course of business. 

80 

          SECTION
3.06. Flood
Zones. Except (a) as could not reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect, (b) as shown on the surveys delivered to the Administrative Agent
pursuant to Section
4.01(n)(ii), or (c) to the extent that the
Company has provided a reasonably detailed notice thereof to the Administrative
Agent, no portion of any Mortgaged Property is located in an area identified by
FEMA as an area having special flood hazards pursuant to the Flood Insurance
Acts. With respect to any Mortgaged Property that is located in an area
identified by FEMA as an area having special flood hazards pursuant to the Flood
Insurance Acts, the applicable Loan Party has obtained, or will promptly obtain,
the insurance required pursuant to Section
5.09(b). 

          SECTION
3.07. Litigation. (a) Except for the
Disclosed Matters, there are no actions, suits or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of any
Loan Party, threatened in writing (i) against the Loan Parties, any of the
Subsidiaries or any of their property or assets that could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect, (ii) that involve this Agreement (other than actions, suits or
proceedings brought by any Lender Party, any Participant or any of their
Affiliates), (iii) that, as of the Effective Date, involve the Transactions, or
(iv) that, after the Effective Date, involve the Transactions and could
reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect. 

         
(b) Except
for the Disclosed Matters, (i) no Loan Party nor any of the Subsidiaries (A) has
received written notice of any claim with respect to any Environmental Liability
or (B) knows of any environmental condition existing at any property owned,
leased or subleased by the Loan Parties or the Subsidiaries, or arising out of
the operation of their businesses, that provides a basis for any Environmental
Liability, in the case of each of clauses (A) and (B) above, that could reasonably be
expected to have a Material Adverse Effect, except to the extent that it has
provided a reasonably detailed notice thereof to the Administrative Agent, and
(ii) except with respect to any other matters that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, no Loan Party nor any of the Subsidiaries (A) has failed to comply with
any Environmental Law or to obtain, maintain or comply with any permit, license
or other approval required under any Environmental Law or (B) has become subject
to any known Environmental Liability. 

         
(c) Since
the Effective Date, the Loan Parties reasonably believe that there has been no
change in the status of the Disclosed Matters, which has not been disclosed in
reasonable detail to the Administrative Agent, that, individually or in the
aggregate, has resulted in, or could reasonably be expected to result in, a
Material Adverse Effect. 

          SECTION
3.08. Compliance with Laws and Agreements.
Each Loan Party and the Subsidiaries is in compliance with all Requirements of
Law applicable to it or its property and all indentures, agreements and other
instruments (including Material Agreements) binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          SECTION
3.09. Investment Company Status. No Loan
Party nor any of the Subsidiaries is an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940. 

81 

          SECTION
3.10. Taxes. Each of the Loan Parties and
the Subsidiaries has timely filed or caused to be filed all Tax returns and
reports required to have been filed and has paid or caused to be paid all Taxes
required to have been paid by it, except (a) Taxes that are being contested or
are unpaid in compliance with Section
5.04 or (b) to the extent that the failure to
do so could not reasonably be expected to result in a Material Adverse
Effect.

          SECTION
3.11. ERISA,
etc. Except as listed on Schedule 3.11, no ERISA
Event has occurred or is reasonably expected to occur that, when taken together
with all other such ERISA Events for which liability is reasonably expected to
occur, could reasonably be expected to result in a Material Adverse Effect. The
minimum funding standards of ERISA and the Code with respect to each Plan have
been satisfied, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect. The Bermuda Borrowers and their subsidiaries organized under the laws of
Bermuda are in compliance with the requirements of all applicable Bermuda laws
relating to pension plans, except where the failure to comply, individually or
in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect. 

          SECTION
3.12. Disclosure. As of the Effective Date
and after giving effect to the Transactions, each Borrower has disclosed to the
Lenders all agreements, instruments and corporate or other contractual
restrictions to which it or any Subsidiary is subject, and all other matters
reasonably known to it, that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect. As of the date any such
information was provided, neither the Information Memorandum nor any of the
other reports, financial statements, certificates or other written information
furnished by or on behalf of any Loan Party to the Administrative Agent or any
other Lender Party (other than projected financial information and other forward
looking information and information of a general economic or industry specific
nature) in connection with the negotiation of this Agreement or any other Loan
Document (as modified or supplemented by other information so furnished), when
taken as a whole, contains any material misstatement of fact or omits to state
any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not materially misleading;
provided
that, with respect to projected financial information, (a) the Borrowers
represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time delivered and (b) it is
understood and agreed that uncertainty is inherent in any forecasts or
projections and no assurances can be given by the Company or the other Loan
Parties of the future achievement of such performance and that actual results
may vary from projected results and such variances may be material. 

          SECTION
3.13. Material
Agreements. No Loan Party nor any of the
Subsidiaries is in default in the performance, observance or fulfillment of any
of the obligations, covenants or conditions contained in any agreement,
instrument or other undertaking to which such Person is a party or by which it
or any of its property is bound in any respect that could reasonably be expected
to result in a Material Adverse Effect. Immediately prior to, and after giving
effect to the occurrence of, the Effective Date, (a) no default or event of
default has occurred or will occur under any of the Material Agreements and (b)
the Borrowers are not compelled under any of the Material Agreements to secure
any obligations thereunder equally and ratably with the Obligations. 

82 

          SECTION
3.14. Solvency. (a) On the Effective Date
after giving effect to the consummation of the Transactions, (i) the fair value
of the assets of the Loan Parties, taken as a whole, at a fair valuation, will
exceed their debts and liabilities, subordinated, contingent or otherwise; (ii)
the present fair saleable value of the property of the Loan Parties, taken as a
whole, will be greater than the amount that will be required to pay the probable
liability of their debts and other liabilities, subordinated, contingent or
otherwise, as such debts and other liabilities become absolute and matured;
(iii) the Loan Parties, taken as a whole, will be able to pay their debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (iv) no Loan Party will have
unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted after
the Effective Date. 

         
(b) No Loan
Party intends to, and no Loan Party believes that it or any of the Subsidiaries
will, incur debts beyond its ability to pay such debts as they mature,
reasonably taking into account the timing of and amounts of cash to be received
by it or any such Subsidiary (whether from anticipated refinancings, asset
sales, capital contributions or otherwise) and the timing of the amounts of cash
to be payable on or in respect of its Indebtedness or the Indebtedness of any
such Subsidiary. 

          SECTION
3.15. Insurance. As of the Effective Date,
Schedule 3.15 sets forth a list of all insurance policies maintained by or on behalf
of the Loan Parties (it being understood that the failure to list on such
Schedule any insignificant insurance policies shall not result in a breach of
this Section, provided that each Loan Party hereby represents and warrants that it
reasonably believes that such Schedule sets forth a list of all insurance
policies maintained by or on behalf of the Loan Parties). As of the Effective
Date, all premiums in respect of the insurance of the Borrowers and the
Subsidiaries have been paid. The Borrowers reasonably believe that the insurance
maintained by or on behalf of the Loan Parties is adequate. 

          SECTION
3.16. Capitalization and Subsidiaries.
Schedule 3.16 sets forth (a) a correct and complete list of the name and relationship
to the Company of each of the Company’s Subsidiaries; (b) a true and complete
listing of each class of each of the Borrowers’ authorized Equity Interests
(other than the Company), of which all of such issued shares are validly issued,
outstanding, fully paid and non-assessable, and owned beneficially and of record
by the Persons identified on Schedule
3.16; and (c) the type of entity of the
Company and each of the Subsidiaries, in each case as of the Effective Date. All
of the issued and outstanding Equity Interests of each Subsidiary owned by any
Loan Party have been duly authorized and issued and are fully paid and
non-assessable (to the extent such concepts are relevant with respect to such
ownership interests). 

          SECTION
3.17. Security
Interest in Collateral. The provisions of
this Agreement and the other Loan Documents create legal and valid Liens on all
the Collateral (to the extent required hereunder and thereunder) in favor of the
Administrative Agent, for the benefit of the Lender Parties, and, to the extent
required hereunder and under the Collateral Documents, such Liens constitute
(or, in the case of real property, upon filing of the Mortgages as necessary
will constitute) perfected and continuing Liens on the Collateral, securing the
Secured Obligations, enforceable against the applicable Loan Party and all third
parties, and having priority over all other Liens on the Collateral except in
the case of (a) Permitted Encumbrances and Permitted
Liens, to the extent any such Liens would have priority over the Liens in favor
of the Administrative Agent pursuant to any Requirement of Law or agreement; and
(b) Liens perfected only by possession (including possession of any certificate
of title), to the extent the Administrative Agent has not obtained or does not
maintain possession of such Collateral. 

83 

          SECTION
3.18. Employment Matters. As of the
Effective Date, there are no strikes, lockouts or slowdowns against any Loan
Party or any Subsidiary pending or, to the knowledge of the Borrowers,
threatened in writing which, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect. The hours worked by and
payments made to employees of the Loan Parties and the Subsidiaries have not
been in violation of the Fair Labor Standards Act or any other applicable
Federal, State, local or foreign law dealing with such matters, except as could
not reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect. All payments due from any Loan Party or any Subsidiary,
or for which any claim may be made against any Loan Party or any Subsidiary, on
account of wages and employee health and welfare insurance and other benefits,
have been paid or accrued as a liability on the books of the Loan Party or such
Subsidiary, except as could not reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect. 

          SECTION
3.19. Regulation U; Use of Proceeds. Neither
the Company nor any Subsidiary is engaged in the business of extending credit
for the purpose of purchasing or carrying margin stock (within the meaning of
Regulation U of the Board) and no part of the proceeds of any Loan made
hereunder will be used to purchase or carry any margin stock or to extend credit
to others for such a purpose that could reasonably be expected to result in a
violation of Regulation U. The Borrowers shall have used the proceeds of the
Loans in accordance with Section
5.08. 

          SECTION
3.20. Patriot
Act and Other Specified Laws. (a) To the
extent applicable, each Loan Party is in compliance, in all material respects,
with the (i) Trading with the Enemy Act, and each of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V) and any other enabling legislation or executive order relating
thereto, and (ii) Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the
“Patriot Act”). No part of the proceeds of the Loans or Letters of Credit will be
used, directly or indirectly, in violation in any material respect of the United
States Foreign Corrupt Practices Act of 1977. No Loan Party is engaged in or has
engaged in any course of conduct that could reasonably be expected to subject
any of their respective properties to any Lien, seizure or other forfeiture
under any criminal law, racketeer influenced and corrupt organizations or other
similar criminal laws. None of the Loan Parties is named on the list of
Specially Designated Nationals of Blocked Persons maintained by the United
States Department of Treasury Office of Foreign Assets Control. 

         
(b) No
Borrower nor any other Loan Party (i) is a Person whose property or interest in
property is blocked or subject to blocking pursuant to Section 1 of Executive
Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg.
49079 (2001)); (ii) engages in any dealings or transactions prohibited by
Section 2 of such Executive Order, or, to the knowledge
of the Borrowers and the Loan Parties after due inquiry, is otherwise associated
with any such Person in any manner that violates such Section 2; or (iii) is a
Person on the list of Specially Designated Nationals and Blocked Persons or
subject to the limitations or prohibitions under any other U.S. Department of
Treasury’s Office of Foreign Assets Control regulation or executive order.

84 

          SECTION
3.21. Food
Security Act. Except where such failure could
not reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect, no Borrower has received any written notice pursuant to
Section 1324(e)(1) or (3) of the FSA and there has not been filed any financing
statement or notice, purportedly in compliance with the provisions of the FSA,
that purports to perfect a security interest in farm products purchased by any
Borrower in favor of a secured creditor of the seller of such farm products.
Except where such failure could not reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect, to the extent applicable,
each Borrower has registered as a buyer of farm products, pursuant to Section
1324(c)(2)(D) of the FSA, with the Secretary of State of each State in which
farm products are produced that are purchased by the Company or any of the
Subsidiaries and which has a central filing system, and each such registration
is in full force and effect. 

          SECTION
3.22. No
Default. No Default or Event of Default has
occurred and is continuing. 

ARTICLE IV 

CONDITIONS 

          SECTION
4.01. Effective
Date. The obligations of the Lenders to make
Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not
become effective until the date on which each of the following conditions is
satisfied in the judgment of the Administrative Agent and the Subject Lenders:

     (a)
Credit Agreement and Loan
Documents. The Administrative Agent (or its
counsel) shall have received (i) to the extent required by Section 5.1.1 of the
Amendment and Restatement Agreement, from each applicable party either (A) a
counterpart of the Amendment and Restatement Agreement signed on behalf of each
such party or (B) written evidence satisfactory to the Administrative Agent
(which may include PDF or facsimile transmission of a signed signature page of
the Amendment and Restatement Agreement) that each such party has signed a
counterpart of the Amendment and Restatement Agreement; and (ii) duly executed
copies (or PDF or facsimile copies) of the Loan Documents and such other
certificates, documents, instruments and agreements as the Subject Lenders or
the Administrative Agent shall reasonably request in connection with the
transactions contemplated by the Amendment and Restatement Agreement, including
any Notes requested by a Lender pursuant to Section 2.11(e), payable to the order
of each such requesting Lender, and written opinions of the Loan Parties’
counsel, addressed to the Administrative Agent and the other Lender Parties in
substantially the form of Exhibits
I-1 (in the case of the Loan Parties’ U.S.
counsel), I-2 (in the case of the Loan Parties’ Bermuda
counsel) and I-3 (in the case of the Loan Parties’ Puerto Rico counsel).

85 

     (b)
Financial Statements and
Projections. The Administrative Agent and the
Subject Lenders shall have received (i) audited consolidated financial
statements of the Company for Fiscal Years 2010, 2011 and 2012; (ii) unaudited
interim consolidated financial statements of the Company for each of its Fiscal
Quarters ended after Fiscal Year 2012, to the extent such financial statements
are available, and such financial statements delivered pursuant to
clauses (i)
and (ii)
shall not, in the reasonable judgment of the Administrative Agent and subject to
the provisions of the penultimate paragraph of this Section 4.01, reflect any material
adverse change in the consolidated financial condition of the Company, as
reflected in the financial statements or projections contained in the
Information Memorandum; and (iii) the Company’s projected income statement,
balance sheet and statement of cash flows for (A) the period commencing with the
last Fiscal Quarter end prior to the Effective Date through the end of Fiscal
Year 2013, which shall be prepared on a quarterly basis, and (B) Fiscal Years
ending December 28, 2014 and December 27,
2015, which shall be prepared on an annual
basis. 

     (c) Corporate Structure. The
Administrative Agent and the Subject Lenders shall be satisfied with the
corporate structure, capital structure, debt instruments, other Material
Agreements and governing documents of the Loan Parties and the Subsidiaries.

     (d) Closing Certificates; Certified Certificate of Incorporation; Good
Standing Certificates. The Administrative Agent
and the Subject Lenders shall have received (i) a certificate of each Loan
Party, dated the Effective Date and executed by its Secretary or Assistant
Secretary, which shall (A) certify the resolutions of its Board of Directors,
members or other equivalent body authorizing the execution, delivery and
performance of the Loan Documents to which it is a party, (B) identify by name
and title and bear the signatures of the Financial Officers and any other
officers of such Loan Party authorized to sign the Loan Documents to which it is
a party, and (C) contain appropriate attachments, including the certificate or
articles of incorporation, certificate of formation or organization of each Loan
Party certified by the relevant authority of the jurisdiction of organization of
such Loan Party and a true and correct copy of its bylaws or operating, limited
liability company, management or partnership agreement, and (ii) if obtainable
from the applicable jurisdiction, a long form good standing certificate (or, in
the case of the Bermuda Borrowers, a certificate of compliance issued by the
Registrar of Companies in Bermuda) for each Loan Party from its jurisdiction of
organization. 

     (e) No Default Certificate. The
Administrative Agent and the Subject Lenders shall have received a certificate,
signed by the chief financial officer of the Company and dated the Effective
Date (i) stating that no Default has occurred and is continuing; and (ii)
stating that the representations and warranties contained in Article III are true and
correct as of such date, except that such representations and warranties that
relate solely to an earlier date shall be true and correct in all material
respects as of such earlier date. 

86 

     (f)
Fees. The
Agents and the Subject Lenders shall have received all fees required to be paid,
and all expenses for which invoices have been presented (including the
reasonable and documented out-of-pocket fees, disbursements and expenses of
legal counsel of the Administrative Agent, the Joint Lead Arrangers and their
Affiliates, as set forth in Section
9.03), on or before the Effective
Date.

     (g) Lien Searches. The Administrative
Agent shall have received the results of a recent lien search report in each of
the jurisdictions where assets of the Loan Parties are located, and such search
shall reveal no Liens on any of the assets of the Loan Parties, except for
Permitted Liens or Liens discharged on or prior to the Effective Date pursuant
to a pay-off letter or other documentation satisfactory to the Administrative
Agent. 

     (h) Collateral Access and Control Agreements. The Administrative Agent shall have received each Collateral Access
Agreement and Deposit Account Control Agreement that is required to be provided
pursuant to each Security Agreement. 

     (i) Solvency. The Administrative Agent
shall have received a solvency certificate from a Financial Officer of each
Borrower. 

     (j) Borrowing Base Certificate. The
Administrative Agent shall have received a Borrowing Base Certificate which
calculates the Borrowing Base, as of June 30, 2013, together with customary
supporting documentation and supplemental reporting, the foregoing to be
satisfactory to the Administrative Agent and the Subject Lenders. 

     (k) Closing Availability. After giving
effect to Section 6.1 of the Amendment and Restatement Agreement and all
Borrowings to be made on the Effective Date, Availability shall not be less than
$200,000,000; provided that, solely for purposes of determining Availability with
respect to this Section
4.01(k), clause (a) of the definition of
“Availability” shall be deemed to refer only to the Borrowing Base, rather than
to the lesser of the aggregate Revolving Commitments and the Borrowing Base.

     (l) Pledged Stock; Stock Powers; Pledged Notes. The Administrative Agent shall have received (i) the certificates, if
any, representing the shares of Equity Interests pledged pursuant to the
Security Agreements, together with an undated stock power for each such
certificate executed in blank by a duly authorized officer of the pledgor
thereof; and (ii) each promissory note (if any) pledged to the Administrative
Agent pursuant to the Security Agreements endorsed (without recourse) in blank
(or accompanied by an executed transfer form in blank) by the pledgor thereof.

     (m) Filings, Registrations and Recordings.
Each document (including any UCC financing statement) required by the Collateral
Documents or under law or reasonably requested by the Administrative Agent to be
filed, registered or recorded in order to create in favor of the Administrative
Agent, for the benefit of the Lender Parties, a perfected Lien (or in the case
of Equity Interests of the Bermuda Borrowers, a first registered charge) on the
Collateral described therein, prior and superior in right to any other Person
(other than with respect to Permitted Liens), shall be in proper form for
filing, registration or recordation. 

87 

     (n)
Mortgages, etc. The Administrative Agent shall have received, with respect to each
Mortgaged Property, each of the following, in form and substance reasonably
satisfactory to the Administrative Agent: 

     (i)
a Mortgage encumbering such Mortgaged Property in
favor of the Administrative Agent, duly executed and acknowledged by each Loan
Party that is the owner of or holder of any interest in such Mortgaged Property,
and otherwise in form necessary for recording in the recording office of each
applicable political subdivision where each such Mortgaged Property is situated,
together with such certificates, affidavits, questionnaires or returns as shall
be required in connection with the recording or filing thereof in order to
create in favor of the Administrative Agent (for the benefit of the Lender
Parties) a valid, perfected first priority security interest and mortgage lien
(subject to Permitted Liens) under Requirements of Law, and such UCC-1 financing
statements and any other instruments as are, in the judgment of the
Administrative Agent, necessary to create in favor of the Administrative Agent
(for the benefit of the Lender Parties) a valid, perfected first priority
security interest and mortgage lien (subject to Permitted Liens) under
Requirements of Law; 

     (ii) maps or plans of an as-built survey of the sites of such Mortgaged
Property that are certified to the Administrative Agent and the Title Insurance
Company in a manner satisfactory to each of them by an independent land surveyor
or engineer licensed to perform surveys in the State where such Mortgaged
Property is located and satisfactory to the Administrative Agent and the Title
Insurance Company, which maps or plans and the surveys on which they are based
shall be made in accordance with the most recent Minimum Standard Detail
Requirements for Land Title Surveys jointly established and adopted by the
American Land Title Association and the American Congress on Surveying and
Mapping and meeting the accuracy requirements as defined therein, including the
requirement that there shall be surveyed and shown on such maps, plats or
surveys the following: (A) a current “as-built” survey showing the location of
any adjoining streets, easements (including the recording information with
respect to all recorded instruments), the mean high water base line or other
legal boundary lines of any adjoining bodies of water, fences, zoning or
restriction setback lines, rights-of-way, utility lines to the points of
connection and any encroachments; (B) all means of ingress and egress, the
amount of acreage and square footage, the address of such Mortgaged Property,
the legal description of such Mortgaged Property; (C) the location of all
improvements as constructed on such Mortgaged Property; (D) the measured
distances from the Improvements to be set back and specified distances from
street or property lines in the event that deed restrictions, recorded plats or
zoning ordinances require the same; (E) all courses and distances referred to in
the legal description, and the names of all adjoining owners on all sides of
such Mortgaged Property, to the extent available; and (F) the flood zone
designation, if any, in which such Mortgaged Property is located. The legal
description of such Mortgaged Property shall be shown on the face of each survey
or affixed thereto. In addition, such maps, plats or surveys shall be sufficient
for the Title Insurance Company to remove all standard survey exceptions from the title insurance policy (or commitment) relating to
such Mortgaged Property and issue the endorsements of the type required by
paragraph (iii)
below. Notwithstanding the foregoing, in the event that the applicable Loan
Party has surveys in its possession that are in form sufficient to allow the
Title Insurance Company to remove all standard survey exceptions from the title
insurance policy (or commitment) relative to the applicable Mortgaged Property
and issue the endorsements of the type required by paragraph (iii) below (to the extent
the same are available in the applicable jurisdiction), then the applicable Loan
Party shall not be required to comply with the foregoing survey requirements
relative to such Mortgaged Property; 

88 

     (iii)
a mortgagee’s title insurance policy (or
policies) or marked up unconditional commitment for such insurance that is
issued by the Title Insurance Company in favor of the Administrative Agent and
is in form and substance satisfactory to the Administrative Agent. Without
limiting the foregoing, each such policy shall (A) be in an amount satisfactory
to the Administrative Agent not to exceed the value of the Mortgaged Property
covered thereby; (B) insure that the interests created by each Mortgage on the
applicable Mortgaged Property creates in favor of the Administrative Agent (for
the benefit of the Lender Parties) a valid, perfected first priority security
interest and mortgage lien thereon free and clear of all defects and
encumbrances other than Permitted Liens and as otherwise approved by the
Administrative Agent; (C) include a current survey reading; (D) be in the form
of ALTA 2006 Loan Policy (or equivalent policies to the extent available in the
applicable jurisdiction); (E) contain such endorsements and affirmative
coverages as the Administrative Agent may require, including without limitation
(to the extent applicable with respect to such Mortgaged Property and available
in the jurisdiction in which such Mortgaged Property is located), the following:
aggregation or tie-in endorsement (i.e., policies which insure against losses
regardless of location or allocated value of the insured property up to a stated
maximum coverage amount); revolving credit endorsement; creditors’ rights
endorsement; zoning endorsement; variable rate endorsement; survey endorsement;
comprehensive endorsement; first loss and last dollar endorsements; access and
entry coverage; location coverage; mineral rights, water rights and surface
damage coverage; separate tax parcel endorsement; subdivision coverage; usury
endorsement; doing business endorsement; subdivision endorsement; environmental
protection lien endorsement; CLTA 119.2 endorsement; utility availability
endorsement; contiguity coverage; waiver of arbitration endorsement; and such
other endorsements as the Administrative Agent shall require in order to provide
insurance against specific risks identified by the Administrative Agent in
connection with such Mortgaged Property; and (F) be issued directly by the Title
Insurance Company and with such co-insurance and reinsurance as may be required
by the Administrative Agent. Notwithstanding the foregoing, no zoning
endorsement will be required in the event that the applicable Loan Party obtains
a property zoning report for such Mortgaged Property indicating that the
Mortgaged Property is not in violation of the applicable zoning requirements.
The Administrative Agent shall have received evidence satisfactory to it that
all premiums in respect of each such policy, all charges
for mortgage recording and similar taxes, and all related expenses, if any, have
been paid; 

89 

     (iv)
such customary affidavits, certificates,
information (including financial data) and instruments of indemnification
(including so-called “gap” indemnification) as shall be required to induce the
Title Insurance Company to issue the title policies and endorsements
contemplated herein (and the Administrative Agent shall execute such
documentation required by the applicable jurisdiction so that the Title
Insurance Company may issue such title insurance policies and endorsements);

     (v) such consents, approvals, amendments, supplements, estoppels, tenant
subordination agreements or other instruments as necessary or required to
consummate the transaction contemplated herein or as shall reasonably be deemed
necessary by the Administrative Agent in order for the owner or holder of the
fee or leasehold interest constituting such Mortgaged Property to grant the Lien
contemplated by the applicable Mortgage with respect to such Mortgaged Property;

     (vi) a copy of all documents referred to, or listed as exceptions to title in,
the title policy or policies referred to in paragraph (iii) above; 

     (vii) copies of all leases, subleases, tenancies, occupancy agreements, rental
agreements and other similar agreements related to possessory interest, if any,
in which the applicable Loan Party holds the lessor’s interest thereunder;

     (viii) UCC-1 financing statements and other instruments relating to such
Mortgaged Property naming each applicable Loan Party as the debtor and the
Administrative Agent as the secured party, such UCC financing statements and
instruments to be filed in the same recording office where the applicable
Mortgage is filed and such other locations required by a Requirement of Law in
order to perfect its first priority perfected security interest in such
Mortgaged Property; 

     (ix) a zoning report prepared by the Planning and Zoning Resource Corporation,
or a similar firm reasonably acceptable to the Administrative Agent, and issued
in favor of the Administrative Agent stating that (A) such Mortgaged Property is
zoned in a classification which permits its intended use and purpose; (B) there
are no conditions on such Mortgaged Property that are not in compliance with
such applicable zoning ordinances or that are not legally non-compliant; and (C)
otherwise in form and substance satisfactory to the Administrative Agent;

     (x) a legal opinion of satisfactory local counsel admitted to practice in the
State in which such Mortgaged Property is located, covering such matters as may
be reasonably requested by the Administrative Agent; and 

90 

     (xi) such other approvals, opinions or documents as the Administrative Agent
may request, each in form and substance satisfactory to the Administrative
Agent.

    
(o) Approvals. All governmental and third
party approvals necessary in connection with the Transactions and the financing
contemplated hereby shall have been obtained and be in full force and effect,
and all applicable waiting periods shall have expired without any action being
taken or, to the knowledge of the Loan Parties after due inquiry, threatened by
any competent authority that would restrain, prevent or otherwise impose adverse
conditions on the Transactions or the financing contemplated hereby. 

    
(p) Insurance. The Administrative Agent
shall have received evidence of insurance coverage in compliance with the terms
of Section 5.09 in form, scope and substance satisfactory to the Administrative Agent,
together with certificates of insurance naming the Administrative Agent, on
behalf of the Lender Parties, as an additional insured or loss payee, as
applicable, to the extent required under Section 5.09. 

    
(q) Appraisals and Field Exams. The
Subject Lenders shall be satisfied with (i) the field examination, dated January
27, 2013, of the Accounts, Inventory and related working capital matters and
financial information of the Borrowers, and (ii) the appraisal that was
previously delivered to the Administrative Agent in connection with the closing
of the Existing Credit Agreement, with respect to the Inventory, equipment and
real property of the Credit Parties. 

    
(r) “Know Your Customer” Requirements. The
Administrative Agent and the Subject Lenders shall have received all
documentation and other information requested by the Administrative Agent and
required under applicable “know your customer” and anti-money laundering rules
and regulations, including all information required to be delivered pursuant to
Section 9.14. 

    
(s) Purchase of Bank Equity Interests. The
Borrowers shall have purchased the Bank Equity Interests they are then required
to purchase in CoBank and each other Farm Credit System Institution, as each of
CoBank or any such other Farm Credit System Institution shall have specified to
the Borrowers. 

    
(t) Other Documents. The Administrative
Agent and the Subject Lenders shall have received such other documents as any
Subject Lender or their respective counsel may have reasonably requested.

    
Any of the foregoing conditions precedent (other than as provided in
Sections 4.01(a)(i), (f), (j) and (s)) shall be deemed to have been met to the extent that the Borrowers have
previously delivered pursuant to the Prior Credit Agreement the relevant
materials, in form and substance reasonably satisfactory to the Administrative
Agent, and the Administrative Agent has not requested re-delivery of such
materials prior to the Effective Date. 

    
The Administrative Agent shall notify the Borrowers and the Lenders of
the Effective Date, and such notice shall be conclusive and binding.

91

          SECTION 4.02.
Each Credit Event. The obligations of (a) each Lender to make a Loan on the occasion of
any Borrowing and (b) each Issuing Bank to issue, amend, renew, reinstate or
extend any Letter of Credit (it being understood that the conversion into or
continuation of a Eurodollar Loan or, solely with respect to Section 4.02(a), the
amendment, renewal, reinstatement or extension of a Letter of Credit does not
constitute a Borrowing or the issuance of a Letter of Credit), are subject to
the satisfaction of the following conditions: 

     (a) The representations and warranties of the Loan Parties set forth in this
Agreement shall be true and correct in all material respects on and as of the
date of such Borrowing or the date of issuance of such Letter of Credit, as
applicable, except that such representations and warranties (A) that relate
solely to an earlier date shall be true and correct in all material respects as
of such earlier date and (B) shall be true and correct in all respects to the
extent they are qualified by a materiality standard. 

    
(b) At
the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal, reinstatement or extension of such Letter of
Credit, as applicable, no Default or Event of Default shall have occurred and be
continuing. 

    
(c) After giving effect to any Borrowing or the issuance, amendment, renewal,
reinstatement or extension of any Letter of Credit, the Aggregate Revolving
Exposure shall not exceed the lesser of (i) the Borrowing Base as in effect at
such time and (ii) the aggregate Revolving Commitments as in effect at such
time. 

Each Borrowing and each issuance of a
Letter of Credit shall be deemed to constitute a representation and warranty by
the Borrowers on the date thereof as to the matters specified in paragraphs (a),
(b) and
(c) of this
Section 4.02. Each amendment, renewal, reinstatement or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrowers on the date thereof as to the matters specified in paragraphs (b) and
(c) of this
Section 4.02.

ARTICLE V 

AFFIRMATIVE COVENANTS 

          Until the
Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all
Letters of Credit shall have expired or terminated and all LC Disbursements
shall have been reimbursed (or alternatively, with respect to such Letters of
Credit, cash (or, with the consent of the Administrative Agent, the Required
Lenders and each applicable Issuing Bank, a back-up standby letter of credit)
equal to 105% of the LC Exposure shall have been deposited by the applicable
Borrowers in the applicable LC Collateral Accounts in accordance with
Section 2.06(j)), each Loan Party executing
this Agreement covenants and agrees with the Lender Parties that: 

92

          SECTION
5.01. Financial Statements; Borrowing Base and Other
Information. The Borrowers will furnish to
the Administrative Agent (which shall in turn furnish to each other Lender
Party): 

    
(a) within 90 days after the end of each Fiscal Year, its audited
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such Fiscal Year, setting forth
in each case in comparative form the figures for (or, in the case of the balance
sheet, as of the end of) the previous Fiscal Year, all reported on by a “Big
Four” accounting firm, or other independent public accountants of recognized
national standing that are reasonably acceptable to the Administrative Agent
(without a “going concern” or like qualification or exception and without any
qualification or exception as to the scope of such audit), to the effect that
such consolidated financial statements present fairly in all material respects
the financial condition and results of operations of the Company on a
consolidated basis, accompanied by any final management letter prepared by said
accountants; 

    
(b) within 45 days after the end of each of the first three Fiscal Quarters,
the Company’s unaudited consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such
Fiscal Quarter and the then elapsed portion of the Fiscal Year, setting forth in
each case in comparative form the figures for the corresponding period or
periods of (or, in the case of the balance sheet, as of the end of) the previous
Fiscal Year; 

    
(c) concurrently with any delivery of financial statements under
paragraph (a) or (b) above, a certificate of a Financial Officer of the Company, in
substantially the form of Exhibit
J, (i) certifying, in the case of the
financial statements delivered under paragraph
(b) above, as presenting fairly in all
material respects the financial condition and results of operations of the
Company on a consolidated basis, subject to normal year-end audit adjustments
and the absence of footnotes; (ii) certifying whether a Default or Event of
Default has occurred and, if a Default or Event of Default has occurred,
specifying the details thereof and any action taken or proposed to be taken with
respect thereto; (iii) setting forth reasonably detailed calculations
demonstrating compliance with Section
6.13; and (iv) stating whether any change in
GAAP or in the application thereof has occurred since the later of the date of
the audited financial statements referred to in Section 3.04 and the date of the prior
certificate delivered pursuant to this paragraph (c) indicating such a change
and, if any such change has occurred, specifying the effect of such change on
the financial statements accompanying such certificate; 

    
(d) solely to the extent available from the Company’s accounting firm,
concurrently with any delivery of financial statements under paragraph (a)
above, a certificate of the accounting firm that reported on such financial
statements stating whether they obtained knowledge during the course of their
examination of such financial statements of any Event of Default under
Section 6.13 (which certificate may be limited to the extent required by accounting
rules or guidelines); provided that the Company agrees to exercise commercially reasonable
efforts to obtain such a certificate; 

    
(e) as
soon as available, but in any event not more than 60 days following the
beginning of each Fiscal Year, a copy of the plan and forecast (including a
projected consolidated balance sheet, income statement and statement of cash
flow) of the Company for each quarter of the upcoming Fiscal Year, in form
reasonably satisfactory to the Administrative Agent; 

93

    
(f) as
soon as available but in any event within 10 Business Days of the end of each
fiscal month (or, within five Business Days of the end of each calendar week (it
being understood that a calendar week ends at midnight on Saturday), during any
Weekly Reporting Period), a Borrowing Base Certificate which calculates the
Borrowing Base as of the last day of the fiscal period then ended, together with
supporting information in connection therewith and any additional reports with
respect to the Borrowing Base as the Administrative Agent may reasonably
request; 

    
(g) as
soon as available, but in any event within 10 Business Days of the end of each
fiscal month (or, in the case of paragraphs
(g)(i) and (g)(ii) below, within five Business
Days of the end of each calendar week, during any Weekly Reporting Period) and
at such other times as may be reasonably requested by the Administrative Agent,
as of the fiscal period then ended, all delivered electronically in a formatted
file reasonably acceptable to the Administrative Agent: 

    
(i) a
summary aging of each Borrower’s and Loan Guarantor’s Accounts (based on
invoices aged by invoice date and the balance due for each Account Debtor)
reconciled to the Borrowing Base Certificate delivered as of such date prepared
in a manner reasonably acceptable to the Administrative Agent; 

    
(ii) a
schedule detailing each Borrower’s and Loan Guarantor’s Inventory, in form
reasonably satisfactory to the Administrative Agent, (A) by location (showing
Inventory in transit, any Inventory located with a third party under any
consignment, bailee arrangement or warehouse agreement), by class
(work-in-process and finished goods), by product type and by volume on hand,
which Inventory shall be valued at the lower of cost (standard and/or moving
average) or market and adjusted for Reserves as the Administrative Agent has
previously indicated to the Borrower Representative are deemed by the
Administrative Agent to be appropriate; (B) including a report of Inventory
aging by fresh plant and prepared foods in total, and LOCOM reports to support
reserves; and (C) reconciled to the Borrowing Base Certificate delivered as of
such date; 

    
(iii) a worksheet of calculations prepared by the Borrowers to determine
Eligible Accounts and Eligible Inventory, such worksheets detailing the Accounts
and Inventory excluded from Eligible Accounts and Eligible Inventory and the
reason for such exclusion; 

    
(iv) a
reconciliation of each Borrower’s and Loan Guarantor’s Accounts between the
amounts shown in each Borrower’s and Loan Guarantor’s general ledger and
financial statements and the reports delivered pursuant to paragraph (i) above; and

    
(v) a
reconciliation of the loan balance per each Borrower’s and Loan Guarantor’s
general ledger to the loan balance under this Agreement; 

94

    
(h) as
soon as available, but in any event within 10 Business Days after the end of
each fiscal month, during any period that aggregate principal amount of the
outstanding Term B Loans exceeds $400,000,000, a monthly lender operating report
of the Company that is consistent with past practices; 

    
(i) promptly after the same become publicly available, copies of all proxy
statements and periodic reports on Form 10-K, Form 10-Q and Form 8-K that are
filed by the Company or any Subsidiary with the SEC or any national securities
exchange, as the case may be; provided that any documents required
to be delivered pursuant to paragraphs
(a) and (b) and this paragraph (i) shall be
deemed to have been delivered on the date (i) on which the Company posts such
documents, or provides a link thereto on the Company’s website on the Internet
at the website address referenced in Section 9.01(b); or (ii) on which such
documents are posted on the Company’s behalf on IntraLinks/IntraAgency or
another relevant website, if any to which each Lender Party has access (whether
a commercial, third-party website or whether sponsored by the Administrative
Agent); and provided, further, that the Company shall notify (which may be by facsimile or
electronic mail) the Administrative Agent of the posting of any such documents
and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents; and 

    
(j) promptly following any request therefor, such other information regarding
the operations, business affairs and financial condition of any Borrower or any
Subsidiary, or compliance with the terms of this Agreement, as the
Administrative Agent or any other Lender Party may reasonably request.

          SECTION 5.02.
Notices of Material Events. The Borrower Representative will furnish to the
Administrative Agent (which shall post such notices to the other Lender Parties)
prompt written notice, accompanied by a statement of a Financial Officer or
other executive officer of the Borrower Representative setting forth in
reasonable detail the nature of the event or development requiring such notice
and any action taken or proposed to be taken with respect thereto, of the
following: 

    
(a) the occurrence of any Default or Event of Default; 

    
(b) receipt of any notice of any governmental investigation or any
governmental or other litigation or proceeding commenced or threatened against
any Loan Party that (i) could reasonably be expected to result in a Material
Adverse Effect (including any such litigation or proceeding (A) seeking
injunctive relief or (B) that is asserted or instituted against any Plan, its
fiduciaries or its assets) or (ii) alleges criminal misconduct by the Company or
the Subsidiaries; 

    
(c) any Lien (other than Permitted Liens) or claim made or asserted against
any of the Collateral in the amount of $25,000,000 or more; 

    
(d) any damage, destruction or other casualty event involving the Collateral
in the amount of $25,000,000 or more, whether or not covered by insurance;

95

    
(e) any and all written notices of default received by the Company or the
Subsidiaries under or with respect to any leased location or public warehouse
where Collateral is located with a fair market value in excess of $5,000,000;

    
(f) to
the extent not provided pursuant to Section 5.01(i), all (i) amendments to the
Mexican Credit Facility, and (ii) material amendments to the Material
Agreements, together with a copy of each such amendment; 

    
(g) concurrently with the delivery of each Borrowing Base Certificate
pursuant to Section 5.01(f), a mark-to-market reconciliation with respect to the Swap
Obligations that constitute Secured Obligations; 

    
(h) the occurrence of any ERISA Event that, alone or together with any other
ERISA Events that have occurred, could reasonably be expected to result in
liability of the Borrowers and their Subsidiaries in an aggregate amount
exceeding $25,000,000, any such notice to be delivered concurrently with the
delivery of a quarterly compliance certificate under Section 5.01(c);

    
(i) receipt by the Loan Parties of any notice or notices (or amendment to any
previous notice) under PACA, PSA or other similar Requirements of Law (in each
case, other than any such notice consisting solely of a provision in the
applicable invoice relating thereto reserving a seller’s rights under such
acts), in respect of claims in an aggregate amount at any one time outstanding
for all such notices of $25,000,000 or more, to preserve the benefits of any
trust applicable to any assets of any Loan Party under the provisions of PACA,
PSA or other similar Requirements of Law (and the Loan Parties shall provide, or
shall cause to be provided, promptly to the Administrative Agent a true, correct
and complete copy of such notice or notices (or amendment), as the case may be,
and other information delivered in connection therewith), any such notice to be
delivered concurrently with the delivery of a quarterly compliance certificate
under Section 5.01(c); 

    
(j) any change in respect of the Disclosed Matters that could reasonably be
expected to result in a Material Adverse Effect;

    
(k) the occurrence of any event described in Section 3.06, 3.07(b) or 3.07(c), in each case as
and when any such notice is required to be delivered pursuant to each
Section;

    
(l) concurrently with the delivery of each quarterly compliance certificate
pursuant to Section 5.01(c), (i) any claim with respect to a material Environmental
Liability, (ii) any Loan Party becoming aware of any environmental condition
existing at any property owned, leased or subleased by the Loan Parties or the
Subsidiaries, or arising out of the operation of their businesses, that provides
a basis for any material Environmental Liability, or (iii) any material
governmental investigation or any material governmental or other litigation or
proceeding being commenced or threatened against any Loan Party that is asserted
or instituted against any Plan, its fiduciaries or its assets; and 

96

    
(m) any other development that results in, or could reasonably be expected to
result in, a Material Adverse Effect. 

          SECTION 5.03.
Existence; Conduct of Business. Each Loan Party will, and will cause each Subsidiary to, (a)
do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence and the rights, qualifications, licenses,
permits, franchises, governmental authorizations, intellectual property rights,
licenses and permits material to the conduct of its business, and maintain all
requisite authority to conduct its business in each jurisdiction in which its
business is conducted, in each case except where the failure to so preserve,
renew, keep in full force and effect or maintain could not reasonably be
expected to result in a Material Adverse Effect; provided that the foregoing shall not
prohibit any merger, consolidation, liquidation or dissolution permitted under
Section 6.03 or 6.05; and (b) carry on and conduct its business, in all material respects, in
the poultry industry and such other activities that are substantially similar,
related or incidental thereto (including, without limitation, processing,
packaging, distribution and wholesales of poultry and related or similar
products). 

          SECTION
5.04. Payment of Obligations. Each Loan
Party will, and will cause each Subsidiary to, pay or discharge all Material
Indebtedness as and when due (except to the extent not constituting an Event of
Default under paragraph (f) of Article
VII), all Taxes and other claims, which
claims, if unpaid, could result in a Lien on any Loan Party’s property, before
the same shall become delinquent or in default, except where (a) the validity or
amount thereof is being contested in good faith by appropriate proceedings, (b)
such Loan Party or such Subsidiary has set aside on its books adequate reserves
with respect thereto in accordance with GAAP or (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect; it being understood that, to the extent that certain Taxes or
other such claims cannot (pursuant to contractual agreement or Requirements of
Law) be contested before such Taxes or other amounts become delinquent or in
default, a Loan Party shall be deemed to be in satisfaction of clause (a) above if such
Loan Party timely commences appropriate proceedings after the earliest date that
it is permitted to contest such Taxes or other claims by such contractual
agreement or Requirements of Law. 

          SECTION
5.05. Maintenance of Properties. Each Loan
Party will, and will cause each Subsidiary to, do all things necessary to at all
times, maintain, preserve and protect each Mortgaged Property and all other
material property, whether real or personal, and keep such property in good
repair, working order and condition (other than wear and tear and casualty and
condemnation occurring in the ordinary course of business).

          SECTION
5.06. Books and Records; Inspection Rights.
Without limiting Sections 5.11 and 5.12, each Loan Party will, and will cause each Subsidiary to, (a)
keep proper books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and
activities and (b) permit any representatives designated by the Administrative
Agent or any other Lender Party (including employees of the Administrative
Agent, any other Lender Party or any consultants, accountants, lawyers and
appraisers retained by the Administrative Agent), upon reasonable prior notice,
to visit and inspect its properties, to examine and make extracts from its books
and records (including environmental assessment reports and Phase I or Phase II
studies), in each case that are not protected by attorney-client privilege or
bound by confidentiality agreements that have been entered into in the ordinary
course of business and consistent with historical practice, and to discuss its
affairs, finances and condition with its officers and independent accountants,
all at such reasonable times during normal business hours and as often as
reasonably requested (provided that (i) the obligation of the Company to
reimburse the Lender Parties for the expenses of any such inspection shall be
limited to reimbursing the Administrative Agent for its expenses that are
incurred in connection with two visits annually unless an Event of Default
exists, in which case there shall be no limit on the Company’s obligation to
reimburse such expenses, and (ii) all visits and inspections by or on behalf of
any Lender Party (other than the Administrative Agent) shall be conducted
concurrently with any such visit or inspection that is conducted by the
Administrative Agent or its designated representatives), and, in each case, with
a reasonable opportunity for a representative of the Company to be present. The
Loan Parties acknowledge that the Administrative Agent, after exercising its
rights of inspection, may prepare and distribute to the other Lender Parties
certain Reports pertaining to the Loan Parties’ assets for internal use by such
Lender Parties. 

97

          SECTION
5.07. Compliance with Laws and Contractual Obligations.

         
(a) Each Loan Party will, and will cause each Subsidiary to, comply with all
of its contractual obligations and Requirements of Law, except where the failure
to do so, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect. 

         
(b) In
addition to and without limiting the generality of paragraph (a), each Loan Party will,
and will cause each Subsidiary and ERISA Affiliate to, (i) comply with all
applicable provisions of ERISA and the Code and the regulations and published
interpretations thereunder with respect to all Plans, or any similar such laws,
regulations and published interpretations applicable in jurisdictions and
countries other than the United States with respect to all other pension plans,
except where the failure to comply could not reasonably be expected to result in
a Material Adverse Effect, (ii) not take any action or fail to take action the
result of which would result in a liability to the PBGC or to a Multiemployer
Plan in an amount that could reasonably be expected to result in a Material
Adverse Effect and (iii) furnish to the Administrative Agent upon the
Administrative Agent’s request such additional information about any Plan
concerning compliance with this covenant as may be reasonably requested by the
Administrative Agent.

          SECTION
5.08. Use
of Proceeds. The proceeds of the Loans will
be used to finance the general corporate purposes of the Borrowers (including
Capital Expenditures, Permitted Acquisitions and payments of principal and
interest on the Loans, subject to the relevant limitations contained in this
Agreement). No part of the proceeds of any Loan and no Letter of Credit will be
used, whether directly or indirectly, for any purpose that entails a violation
of any of the Regulations of the Board, including Regulations T, U and
X.

          SECTION
5.09. Insurance. Each Loan Party will, and
will cause each Subsidiary to, maintain with financially sound and reputable
carriers having a financial strength rating of at least A- by A.M. Best Company
at the time of the initial bindings or any renewals thereof (a) insurance in
such amounts (with no greater risk retention) and against such risks
(including loss or damage by fire and loss in transit,
theft, burglary, pilferage, larceny, embezzlement, and other criminal
activities; business interruption; and general liability) and such other
hazards, as is customarily maintained by companies of established repute engaged
in the same or similar businesses operating in the same or similar locations;
provided
that the Borrowers and the Subsidiaries may self-insure for workmen’s
compensation, crime, general liability, auto liability, employee benefits,
property risks and live chicken inventory in accordance with applicable industry
standards and in a manner consistent with other similarly situated Persons in
the same industry; provided, further, that the Borrowers and the Subsidiaries shall not
self-insure for general liability, auto liability or property risks in excess of
the first $10,000,000 of loss deductible with respect thereto without the
consent of the Administrative Agent; (b) if any portion of any Mortgaged
Property is located in an area identified by FEMA as an area having special
flood hazards pursuant to the Flood Insurance Acts, a policy of flood insurance
with financially sound and reputable insurance companies that (A) covers any
parcel of such Mortgaged Property that is located in a flood zone and (B) is
written in an amount not less than the (1) outstanding principal amount of the
Indebtedness secured thereby and (2) the maximum limit of coverage made
available with respect to the particular type of Mortgaged Property under the
Flood Insurance Acts; and (c) all other insurance required pursuant to the
Collateral Documents. The Borrowers will furnish to the Lenders, upon request of
the Administrative Agent, information in reasonable detail as to the insurance
so maintained. All such insurance policies, to the extent such insurance
policies by their terms insure any portion of the Collateral, shall name the
Administrative Agent (for the benefit of the Lender Parties) as an additional
insured or as a loss payee, as applicable. 

98

          SECTION
5.10. Casualty and Condemnation. The
Borrowers (a) will furnish to the Administrative Agent (which shall in turn
provide such notice to the Collateral Agent and the other Lender Parties) prompt
written notice of any casualty or other insured damage to any material portion
of the Collateral or the commencement of any action or proceeding for the taking
of any material portion of the Collateral or interest therein under power of
eminent domain or by condemnation or similar proceeding and (b) will ensure that
the Net Proceeds of any such event (whether in the form of insurance proceeds,
condemnation awards or otherwise) are collected and applied in accordance with
the applicable provisions of this Agreement. 

          SECTION
5.11. Appraisals. At intervals and frequency
as reasonably specified by the Administrative Agent or the Collateral Agent, the
Borrowers and the Subsidiaries will provide the Administrative Agent and the
Collateral Agent with appraisals or updates thereof of their Inventory, from an
appraiser selected and engaged by the Administrative Agent or the Collateral
Agent, as applicable, and prepared on a basis reasonably satisfactory to the
Administrative Agent and the Collateral Agent, such appraisals and updates to
include, without limitation, information required by Requirements of Law. One
such appraisal per calendar year shall be at the sole expense of the Loan
Parties; provided that (a) notwithstanding the limitation in the preceding proviso, an
additional appraisal (and, for the avoidance of doubt, up to two such appraisals
during such calendar year) shall be at the sole expense of the Loan Parties if a
Minimum Availability Period has been in effect for a period of at least 30
consecutive days during such calendar year; and (b) if an Event of Default has
occurred and is continuing, then there shall be no limitation as to number and
frequency of such appraisals that shall be at the sole expense of the Loan
Parties. For purposes of this Section
5.11, it is understood and agreed that a (i)
single appraisal may consist of examinations conducted at multiple relevant
sites and involve one or more relevant Loan Parties and their assets and (ii)
only the reasonable and documented out-of-pocket charges, costs and expenses in
connection with such appraisals shall be required to be reimbursed by the Loan
Parties pursuant to this Section. 

99

          SECTION
5.12. Field Examinations. At intervals and
frequency as reasonably specified by the Administrative Agent or the Collateral
Agent, the Borrowers and the Subsidiaries will allow the Administrative Agent
and the Collateral Agent to conduct field examinations or updates thereof during
normal business hours to ensure the adequacy of Collateral included in any
Borrowing Base and related reporting and control systems. Two such field
examinations per calendar year shall be at the sole expense of the Loan Parties;
provided
that the Administrative Agent and the Collateral Agent agree not to conduct (or
cause to be conducted) more than one such field examination every six months;
and provided, further, that (a) notwithstanding the limitation in the preceding proviso, an
additional field examination (and, for the avoidance of doubt, three such field
examinations during such calendar year) shall be at the sole expense of the Loan
Parties if a Minimum Availability Period has been in effect for a period of at
least 30 consecutive days during such calendar year; and (b) if an Event of
Default has occurred and is continuing, then there shall be no limitation as to
number and frequency of such field examinations that shall be at the sole
expense of the Loan Parties. For purposes of this Section 5.12, it is understood and
agreed that a (i) single field examination may consist of examinations conducted
at multiple relevant sites and involve one or more relevant Loan Parties and
their assets; and (ii) only the reasonable and documented out-of-pocket charges,
costs and expenses in connection with such field examinations shall be required
to be reimbursed by the Loan Parties pursuant to this Section. 

          SECTION
5.13. Additional Collateral; Further Assurances. (a) Subject to Requirements of Law, each Borrower and each Subsidiary
that is a U.S. Loan Party shall cause (i) any Material Subsidiary created or
acquired after the Effective Date, (ii) any Subsidiary that has otherwise become
a Material Subsidiary after the Effective Date (it being understood that a
Subsidiary’s status as a Material Subsidiary for the purposes of clauses (i) and
(ii) above
shall be as determined as of the most recent date upon which financial
statements have been required to be delivered pursuant to Section 5.01(a) or
(b)) or
(iii) any Domestic Subsidiary or Foreign DRE whose Equity Interests are not held
directly or indirectly by a Foreign Subsidiary that is treated as a corporation
for U.S. federal income tax purposes that incurs any Indebtedness for borrowed
money (other than intercompany Indebtedness) or Guarantees any such Indebtedness
to become, not later than 45 days after the occurrence of any of the foregoing
events or determinations, as applicable (which period may be extended, for a
period not to exceed 60 days, by the Administrative Agent in its sole
discretion), a U.S. Loan Party by executing the Joinder Agreement set forth as
Exhibit L
hereto (the “Joinder Agreement”). Upon execution and delivery thereof, each such Person (x)
shall automatically become a U.S. Loan Guarantor hereunder and thereupon shall
have all of the rights, benefits, duties and obligations in such capacity under
the Loan Documents and (y) will, subject to the limitations relating to pledges
of Equity Interests in paragraph
(b) of this Section 5.13, grant Liens to the
Administrative Agent (for the benefit of the Lender Parties) in any property of
such U.S. Loan Party which constitutes Collateral. Notwithstanding the
foregoing, neither PPC Mexico nor any of PPC Mexico’s subsidiaries is or shall
be required to become a U.S. Loan Party. 

100

         
(b) To
secure the prompt payment and performance of all the U.S. Secured Obligations,
each Borrower and each Subsidiary that is a U.S. Loan Party will cause (i) 100%
of the issued and outstanding Equity Interests of each of (A) the Domestic
Subsidiaries other than Domestic Subsidiaries whose Equity Interests are owned,
directly or indirectly, by a Foreign Subsidiary that is treated as a corporation
for U.S. Federal income tax purposes, and (B) the Foreign DREs whose Equity
Interests are not held directly or indirectly by a Foreign Subsidiary that is
treated as a corporation for U.S. federal income tax purposes, other than any
such Foreign DRE that is acquired after the Effective Date where the assets of
such Foreign DRE include Equity Interests of a “controlled foreign corporation”
(within the meaning of Section 957(a) of the Code) that, when aggregated with
any other Equity Interests held by any other Affiliates of such Foreign DRE
would constitute ownership of greater than 65% of the total combined classes of
Equity Interests entitled to vote in such controlled foreign corporation (it
being understood that, pursuant to paragraph
(a) of this Section, such Foreign DRE shall
pledge all of its assets which do not constitute Equity Interests in such
controlled foreign corporation and such Equity Interest in the controlled
foreign corporation such that, when aggregated with the Equity Interests of such
controlled foreign corporation pledged by any other Affiliates of the Foreign
DRE, the total Equity Interests pledged by the Foreign DRE will constitute a
pledge of 65% of the total combined classes of Equity Interests entitled to vote
in such controlled foreign corporation); (ii) 65% of the Equity Interests
constituting the total combined classes of Equity Interests entitled to vote in
each First-Tier Foreign Subsidiary that is not a Foreign DRE; and (iii) 100% of
the non-voting Equity Interests of each First-Tier Foreign Subsidiary that is
not a Foreign DRE, to be subject at all times to a valid, perfected first
priority security interest (subject to Permitted Liens) in favor of the
Administrative Agent (for the benefit of the Lender Parties) pursuant to the
terms and conditions of the Loan Documents as the Administrative Agent shall
reasonably request; provided that, notwithstanding the foregoing, no U.S. Loan Party shall
be required to pledge any Equity Interests of PPC Mexico or its subsidiaries.
The Borrowers agree that if (w) the Administrative Agent notifies the Borrower
Representative that as a result of a Change in Law there is a reason to believe
that a pledge of a greater percentage of any Foreign Subsidiary’s voting Equity
Interests or a guarantee by any Foreign Subsidiary of the U.S. Secured
Obligations could not reasonably be expected to result in a “deemed dividend”
under Section 956 of the Code or any other Tax liability to the Borrowers or any
Foreign Subsidiary which would not have otherwise resulted absent such pledge
and (x) subsequent to the receipt of such notice the Borrower Representative
reasonably determines (which determination the Borrower Representative agrees to
consider, in consultation with its counsel and other tax advisors, promptly
following receipt of such notice from the Administrative Agent) that a pledge of
more than 65% of the total combined voting power of all classes of Equity
Interests entitled to vote of such Foreign Subsidiary or a guarantee by such
Foreign Subsidiary of the U.S. Secured Obligations could not reasonably be
expected to result in such a “deemed dividend” or any other Tax liability to the
Borrowers or any Foreign Subsidiary which would not have otherwise resulted
absent such pledge, the applicable Borrower will promptly pledge such greater
percentage of the voting Equity Interests of each such Foreign Subsidiary and
cause each such Foreign Subsidiary to provide a guarantee of the U.S. Secured
Obligations, in each case to the extent that the foregoing could not reasonably
be expected to result in such a “deemed dividend” under Section 956 of the Code
or other Tax liability to the Borrowers or any Foreign Subsidiary. Furthermore,
the Lenders agree that if (y) the Borrower Representative notifies the Lenders
that as a result of a Change in Law there is a reason to believe that a pledge
of a lower percentage of any Foreign Subsidiary’s voting Equity Interests would be reasonably necessary in order to avoid being a
“deemed dividend” under Section 956 of the Code and (z) subsequent to the
receipt of such notice, each Lender reasonably determines (which determination
each Lender agrees to consider, in consultation with its counsel and other tax
advisors, promptly following receipt of such notice from the Borrower
Representative) that a pledge of less than 65% of the total combined voting
power of all classes of Equity Interests entitled to vote of such Foreign
Subsidiary would be reasonably necessary in order to avoid being a “deemed
dividend” under Section 956 of the Code, the applicable Borrower may promptly
pledge such lower percentage of the voting Equity Interests of each such Foreign
Subsidiary and the Administrative Agent (for the benefit of the Lender Parties)
shall promptly release any excess percentage, to the extent necessary such that
the foregoing would avoid being a “deemed dividend” under Section 956 of the
Code.

101

         
(c) Subject to Requirements of Law, each Bermuda Borrower and each other
Bermuda Loan Party shall cause (i) any Material Subsidiary that is organized
under the laws of Bermuda and is created or acquired after the Effective Date,
(ii) any Subsidiary that is organized under the laws of Bermuda and has
otherwise become a Material Subsidiary after the Effective Date (it being
understood that a Subsidiary’s status as a Material Subsidiary for the purposes
of clauses (i) and (ii) above shall be as determined as of the most recent date upon which
financial statements have been required to be delivered pursuant to
Section 5.01(a) or (b)) or (iii) any Subsidiary that is organized under the laws of Bermuda
that incurs any Indebtedness for borrowed money (other than intercompany
Indebtedness) or Guarantees any such Indebtedness to become, not later than 45
days after the occurrence of any of the foregoing events or determinations, as
applicable (which period may be extended, for a period not to exceed 60 days, by
the Administrative Agent in its sole discretion), a Bermuda Loan Party by
executing a guarantee agreement that guarantees repayment of the Bermuda Secured
Obligations (which guarantee agreement shall be in substantially the form of the
Bermuda Guaranty) and a security agreement (which shall, among other things,
pledge 100% of the Equity Interests in each such Subsidiary and grant a security
interest in all the personal property of each such Subsidiary, the foregoing to
be in substantially the form of the Bermuda Pledge Agreement, the Bermuda
Security Agreement or the Puerto Rico Security Agreement, as applicable) that
secures repayment of the Bermuda Secured Obligations, together with such other
documentation and filings that the Administrative Agent may reasonably require
in order to perfect its valid, perfected first priority security interest
(subject to Permitted Liens) in the assets subject to the terms of such Security
Agreement. 

         
(d) Without limiting the foregoing, each Loan Party will, and will cause each
Subsidiary to, execute and deliver, or cause to be executed and delivered, to
the Administrative Agent such documents, agreements and instruments, and will
take or cause to be taken such further actions (including the filing and
recording of financing statements, fixture filings, mortgages, deeds of trust
and other documents and such other actions or deliveries of the type required by
Section 4.01, as applicable), which may be required by law or which the
Administrative Agent may, from time to time, reasonably request to carry out the
terms and conditions of this Agreement and the other Loan Documents and to
ensure perfection and priority of the Liens created or intended to be created by
the Collateral Documents, all at the expense of the Loan Parties. To the extent
that any Loan Party is required to pledge newly created, issued or acquired
Equity Interests of any Subsidiary or Affiliate pursuant to the Loan Documents
after the Effective Date, such Loan Party shall cause such Subsidiary (or shall
use commercially reasonable efforts to cause such
Affiliate) to issue such Equity Interests in certificated form, and in each case
such Loan Party shall deliver such certificated Equity Interests to the
Administrative Agent in accordance with Section 4.01(l). 

102

         
(e) The Borrower Representative will promptly notify the Administrative Agent
if any Borrower or any other Loan Party acquires any real or personal property
with a fair market value in excess of $25,000,000 (other than assets
constituting Collateral under the Security Agreements that are, as a result of
actions previously taken, automatically subject to a valid, perfected first
priority security interest or mortgage lien (subject to Permitted Liens) in
favor of the Administrative Agent (for the benefit of the Lender Parties) upon
acquisition thereof), and, if requested by the Administrative Agent or the
Required Lenders and subject to the terms and conditions of this Agreement, the
Borrowers will promptly cause such assets to be subjected to a valid, perfected
first priority security interest or mortgage lien (subject to Permitted Liens)
in favor of Administrative Agent (for the benefit of the Lender Parties)
securing the applicable Secured Obligations and will take, and cause the
applicable Loan Parties to take, such actions as shall be necessary or
reasonably requested by the Administrative Agent to grant and perfect such
Liens, all at the expense of the Loan Parties. 

ARTICLE VI 

NEGATIVE COVENANTS 

          Until the
Commitments have expired or terminated and the principal of and interest on each
Loan and all fees, expenses and other amounts payable under any Loan Document
have been paid in full and all Letters of Credit have expired or terminated and
all LC Disbursements shall have been reimbursed (or alternatively, with respect
to such Letters of Credit, cash (or, with the consent of the Administrative
Agent, the Required Lenders and each applicable Issuing Bank, a back-up standby
letter of credit) equal to 105% of the LC Exposure shall have been deposited by
the applicable Borrowers in the applicable LC Collateral Accounts in accordance
with Section 2.06(j)), each Loan Party executing this Agreement covenants and
agrees with the Lender Parties that: 

          SECTION
6.01. Indebtedness. No Loan Party will, nor
will it permit any of the Subsidiaries to, create, incur or suffer to exist any
Indebtedness, except: 

    
(a) the Secured Obligations; 

    
(b) Indebtedness existing on the Effective Date and set forth in
Schedule 6.01(b) and
refinancing, refundings, extensions, renewals and replacements of any such
Indebtedness in accordance with paragraph
(f) hereof; 

    
(c) Indebtedness (other than Guarantees described in paragraph (d) below) of any
Borrower to any Subsidiary and of any Subsidiary to any Borrower or any other
Subsidiary; provided that (i) Indebtedness under this paragraph (c) shall not be permitted
unless the corresponding Investment is permitted under Section 6.04(c),
(p),
(q) or
(s) and
(ii) Indebtedness of any Borrower to any Subsidiary and Indebtedness of any
Subsidiary that is a Loan Party to any Subsidiary that is not a Loan Party shall
be subordinated to the Secured Obligations on terms reasonably satisfactory to
the Administrative Agent; 

103

    
(d) Guarantees by any Borrower of Indebtedness of any Subsidiary and by any
Subsidiary of Indebtedness of any Borrower or any other Subsidiary;
provided
that (i) the Indebtedness so Guaranteed is permitted by this Section 6.01; (ii)
Guarantees under this paragraph
(d) shall not be permitted unless the
corresponding Investment is permitted under Section 6.04(c), (d), (p), (q) or (s); and (iii) Guarantees
permitted under this paragraph
(d) shall be subordinated to the Secured
Obligations of the applicable Subsidiary on terms no less favorable to the
Lenders as the Indebtedness so Guaranteed is subordinated to the Secured
Obligations (if any); 

    
(e) Indebtedness of any Borrower or any Subsidiary (i) incurred to finance
the lease, acquisition, construction or improvement of any fixed or capital
assets (whether or not constituting purchase money Indebtedness), including
Capital Lease Obligations, industrial revenue bonds, municipal bonds or similar
bonds, Indebtedness in respect of sale and leaseback transactions permitted
under Section 6.06 and any Indebtedness assumed in connection with the acquisition of any
such assets or secured by a Lien on any such assets prior to the acquisition
thereof and (ii) refinancings, refundings, extensions, renewals and replacements
of any such Indebtedness in accordance with paragraph (f) hereof; provided that in the case
of paragraph (e)(i) above, (A) such Indebtedness is incurred prior to or within 180 days
after such acquisition or the completion of such construction or improvement and
(B) the aggregate principal amount of Indebtedness that may be incurred in any
Fiscal Year shall not exceed the lesser of (1) $100,000,000 and (2) the excess
of (x) the amount of Capital Expenditures for such Fiscal Year (or part thereof)
permitted pursuant to Section
6.12 over (y) the Capital Expenditures not
financed with proceeds of the Indebtedness incurred pursuant to this
Section 6.01(e) or Section 6.01(t)(ii) made by the Borrowers and the Subsidiaries during such Fiscal
Year pursuant to Section 6.12; 

    
(f) Indebtedness which represents a refinancing, refunding, extension,
renewal or replacement of any of the Indebtedness described in paragraphs (b),
(e),
(i),
(k) and
(x) hereof;
provided
that (i) the principal amount of such Indebtedness is not increased, except by
an amount equal to (x) any reasonable premium or similar amount paid, and fees
and expenses reasonably incurred, in connection with such refinancing,
refunding, extension, renewal or replacement, and (y) any then existing
unutilized commitment to extend credit to the relevant Loan Party or relevant
Subsidiary thereof under any agreement governing such Indebtedness
(provided
that this paragraph (f) shall not limit the principal amount of such Indebtedness
that may be increased to the extent such Indebtedness may be incurred under any
other provision of this Section
6.01 and so long as such Indebtedness is
deemed to have been incurred under such provision); (ii) any Liens securing such
Indebtedness are not extended to any additional property of any Loan Party
(provided
that assets that are subject to or secure any Indebtedness of any Loan Party or
any Subsidiary constituting Capital Lease Obligations or purchase money
Indebtedness permitted under Section
6.01(b), (e), (k) or (t)(ii) or operating leases may also
secure any other Indebtedness of such Loan Party or Subsidiary constituting
Capital Lease Obligations, purchase money Indebtedness or operating leases to
the extent that such Indebtedness is advanced or
otherwise extended by the same creditor or its Affiliates); (iii) no Loan Party
that is not originally obligated with respect to repayment of such Indebtedness
is required to become obligated with respect thereto (provided that this clause (iii) shall not
limit other Loan Parties becoming obligated with respect thereto to the extent
such Indebtedness may be incurred by such other Loan Parties under
Section 6.01(c),
(d) or
(t) or with
respect to a refinancing, refunding, extension, renewal or replacement of any
Indebtedness described in Section
6.01(x) and, in the case of Section 6.01(t) such Indebtedness
shall reduce, dollar-for-dollar, the amount that is permitted to be outstanding
pursuant thereto); (iv) such refinancing, refunding, extension, renewal or
replacement does not result in a shortening of the average weighted maturity of
the Indebtedness so refinanced, refunded, extended, renewed or replaced
(provided
that this clause (iv) shall not apply to any such Indebtedness that matures prior
to the Maturity Date); (v) the terms of any such refinancing, refunding,
extension, renewal or replacement are not materially less favorable to the
obligor thereunder (as determined by the Company in its commercially reasonable
judgment) than the original terms of such Indebtedness; and (vi) if the
Indebtedness that is refinanced, refunded, extended, renewed or replaced was
subordinated in right of payment to the Secured Obligations, then the terms and
conditions of the refinancing, refunding, extension, renewal or replacement
Indebtedness must include subordination terms and conditions that are at least
as favorable to the Administrative Agent and the Lenders as those that were
applicable to the refinanced, renewed or extended
Indebtedness;  

104

    
(g) (i) Indebtedness owed to any Person providing workers’ compensation,
unemployment insurance, health, disability or other employee benefits or other
social security legislation or property, casualty or liability insurance,
pursuant to reimbursement or indemnification obligations to such Person, and
(ii) letters of credit, bank guarantees or similar instruments for the benefit
of Persons under clause (i) of this paragraph
(g) in each case incurred in the ordinary
course of business by any Captive Insurance Company; 

    
(h) Indebtedness (other than Indebtedness for borrowed money) of any Borrower
or any Subsidiary in respect of bids, trade contracts, leases, statutory
obligations, performance bonds, bid bonds, appeal bonds, surety bonds, customs
bonds and similar obligations (or, in the case of Captive Insurance Companies,
in respect of letters of credit, bank guarantees or similar obligations related
thereto), in each case provided in the ordinary course of business; 

    
(i) Indebtedness of PPC Mexico and its subsidiaries in respect of the Mexican
Credit Facility in an aggregate principal amount not to exceed the greater of
$75,000,000 or MXN$1,000,000,000 at any time outstanding and any refinancing,
refunding, extension, renewal or replacement thereof permitted pursuant to
paragraph (f) hereof; 

    
(j) Indebtedness in respect of the Intercompany IRBs (provided that, to the
extent that any Subsidiary that is not a Loan Party is obligated under any
Intercompany IRBs to any Loan Party, such Indebtedness of such Subsidiary shall
not be permitted under this paragraph unless such Intercompany IRB is existing
on the Effective Date and set forth on Schedule 6.01(b) or the corresponding
Investment is permitted under Section 6.04(c), (p) or (s)); 

105

    
(k) (i) Indebtedness of any Person that becomes a Subsidiary after the
Effective Date in connection with an Investment permitted by Section 6.04(h),
(k),
(p) or
(s)
(provided
that such Indebtedness exists at the time such Person becomes a Subsidiary and
is not created in contemplation of or in connection with such Person becoming a
Subsidiary) and (ii) Indebtedness owed to any seller of property acquired in
connection with an Investment permitted by Section 6.04(k), (p) or (s); provided that both before
and after giving effect to Indebtedness pursuant to this paragraph (k), on a Pro
Forma Basis (x) no Default or Event of Default shall exist or result therefrom
and (y) the Borrowers shall be in compliance with the covenant set forth in
Section 6.13 for the Test Period ending immediately prior to the incurrence of such
Indebtedness for which financial statements have been delivered pursuant to
Section 5.01(a) or (b); 

    
(l) Indebtedness pursuant to clause
(a)(ii) of the definition thereof in respect
of customer deposits and advance payments received in the ordinary course of
business from customers for goods purchased in the ordinary course of business;

    
(m) Indebtedness owed in respect of any overdrafts and related liabilities
arising from treasury, depository and cash management services or in connection
with any automated clearinghouse transfers of funds; 

    
(n) Indebtedness pursuant to paragraph
(a)(ii), (b), (d) or (j) of the definition thereof arising
from agreements of the Company or the Subsidiaries providing for
indemnification, adjustment of acquisition price or similar obligations, in each
case, to the extent such obligations are incurred or assumed in connection with
the acquisition or disposition of any business or assets by the Company or the
Subsidiaries permitted by Section
6.04(b), (g), (h), (i), (k), (p) or (s) or Section 6.05(a)(ii), (a)(iii), (c), (g), (h) or (m); 

    
(o) Indebtedness supported by a Letter of Credit, in a principal amount not
in excess of the stated amount of such Letter of Credit; 

    
(p) Indebtedness consisting of the financing of insurance premiums (other
than to the Captive Insurance Company or other Affiliates of the Company) in the
ordinary course of business; 

    
(q) Indebtedness pursuant to paragraph
(d) of the definition thereof consisting of
take-or-pay obligations contained in supply arrangements in the ordinary course
of business and consistent with historical practice; 

    
(r) Indebtedness pursuant to paragraph
(d) of the definition thereof incurred by the
Company and the Subsidiaries representing deferred compensation to officers and
employees of such Person in the ordinary course of business; 

    
(s) Indebtedness arising out of the endorsement for deposit or collection of
items received in the ordinary course of business; 

106

    
(t) other (i) unsecured Indebtedness in an aggregate principal amount not to
exceed $750,000,000 at any time outstanding and (ii) secured or unsecured
Indebtedness in an aggregate principal amount not to exceed $50,000,000
at any time outstanding, provided that (A) in the case of
clause (i)
above, (x) no principal payment or prepayment shall be made under such
Indebtedness prior to six months following the latest Maturity
Date in
effect on the date of the incurrence of such Indebtedness, (y) the stated
maturity date of such Indebtedness shall not be earlier than six months
following the latest Maturity Date in effect on the date of the incurrence of
such Indebtedness; and (B) in the case of clause (ii) above, any such
Indebtedness that is secured (other than Capital Lease Obligations or purchase
money Indebtedness) may only be secured by assets that are not subject to a
security interest in favor of the Administrative Agent (for the benefit of the
Lender Parties) and (C) in the case of each of clauses (i) and (ii) above, no such
Indebtedness may be created or incurred unless both before and after giving
effect to such Indebtedness, on a Pro Forma Basis (1) no Default or Event of
Default shall exist or result therefrom, (2) the Borrowers shall be in
compliance with the covenant set forth in Section 6.13 for the Test Period for
which financial statements have been delivered pursuant to Section 5.01(a) or
(b) ending
immediately prior to the incurrence of such Indebtedness;

    
(u) Indebtedness consisting of promissory notes issued by any Loan Party to
future, present or former directors, officers or employees of the Company or any
of the Subsidiaries or their respective estates, heirs, family members, spouses
or former spouses to finance Restricted Payments in the form of the purchase or
redemption of Equity Interests of the Company to the extent such Restricted
Payments are permitted by Section 6.08(a)(iii), (iv) and (viii) at the time of the
incurrence of such Indebtedness; 

    
(v) Indebtedness consisting of margin loans made by commodity brokers in
connection with Swap Agreements permitted by Section 6.07;

    
(w) the extent any of the following constitute Indebtedness: all premiums (if
any) interest, fees, expenses, charges and additional or contingent interest
(other than paid in kind interest) paid with respect to Indebtedness described
in paragraphs (a) through (v) above;

    
(x) the Senior Notes and guarantees with respect thereto from Persons that
are guarantors of all or part of the Obligations; and

    
(y) (i) additional unsecured Indebtedness in an aggregate principal amount in
an aggregate principal amount (including reimbursement obligations under letters
of credit) not to exceed $100,000,000 at any time outstanding and (ii)
reimbursement obligations existing on the Effective Date in respect of letters
of credit issued for the account of a Parent Entity, provided that (A) (x) no principal or
interest payment or prepayment shall be made under such Indebtedness prior to
six months following the latest Maturity Date in effect on the date of the
incurrence of such Indebtedness and (y) the stated maturity date of such
Indebtedness shall not be earlier than six months following the latest Maturity
Date in effect on the date of the incurrence of such Indebtedness, (B) no such
Indebtedness may be created or incurred unless both before and after the
incurrence of such Indebtedness, on a Pro Forma Basis (1) no Default or Event of
Default shall exist or result therefrom, (2) the Borrowers shall be in
compliance with the covenant set forth in
Section 6.13 for the Test Period for which financial statements have been delivered
pursuant to Section 5.01(a) or (b) ending immediately prior to the incurrence or the deemed
incurrence of such Indebtedness, (C) such Indebtedness shall be on terms
reasonably satisfactory to the Administrative Agent and (D) the lender or other
obligee of such Indebtedness shall have become a party to the Intercreditor
Agreement (the Indebtedness incurred pursuant to this Section being the
“Permitted Subordinated
Indebtedness”).

107

          SECTION 6.02.
Liens. No
Loan Party will, nor will it permit any of the Subsidiaries to, create, incur,
assume or permit to exist any Lien on any property or asset now owned or
hereafter acquired by it, or assign or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, except: 

    
(a) Liens created pursuant to any Loan Document; 

    
(b) Permitted Encumbrances; 

    
(c) any Lien on any property or asset of any Borrower or any Subsidiary
existing on the Effective Date and set forth in Schedule 6.02(c); provided that (i) such Lien
shall not apply to any other property or asset of such Borrower or Subsidiary,
other than as permitted under Section
6.01(f)(ii); and (ii) such Lien shall secure
only the Indebtedness which it secures on the Effective Date and refinancings,
refundings, extensions, renewals and replacements thereof that are permitted by
Section 6.01 (or, solely with respect to obligations that are not Indebtedness, any
refinancings, refundings, extensions, renewals and replacements thereof that are
not prohibited by Section 6.01, so long as such obligations are not amended or otherwise
modified in contravention of this Agreement); 

    
(d) Liens on fixed or capital assets acquired, constructed or improved by any
Borrower or any Subsidiary; provided that (i) such security
interests only secure Indebtedness permitted by Section 6.01(e), (f), (k) or (t)(ii); (ii) such security
interests and the Indebtedness secured thereby are incurred prior to or within
180 days after such acquisition or the completion of such construction or
improvement; (iii) the Indebtedness secured thereby does not exceed the cost of
acquiring, constructing or improving such fixed or capital assets and any
reasonable expenses in connection therewith; and (iv) such security interests
shall not apply to any other property or assets of such Borrower or Subsidiary
or any other Borrower or Subsidiary, other than as permitted under
Section 6.01(f)(ii); 

    
(e) any Lien existing on any property or asset prior to the acquisition
thereof by any Borrower or any Subsidiary or existing on any property or asset
of any Person that becomes a Subsidiary after the Effective Date prior to the
time such Person becomes a Subsidiary; provided that (i) such Lien is not
created in contemplation of or in connection with such acquisition or such
Person becoming a Subsidiary, as the case may be; (ii) such Lien shall not apply
to any other property or assets of such Borrower or Subsidiary or any other
Borrower or Subsidiary, other than as permitted under Section 6.01(f)(ii); (iii) such Lien
shall not apply to any Accounts and Inventory of any Loan Party, including any
Subsidiary which becomes a Loan Party (or is required to
become a Loan Party under terms of the Loan Documents) and (iv) such Lien shall
secure only the Indebtedness which it secures on the date of such acquisition or
the date such Person becomes a Subsidiary, as the case may be, and such
Indebtedness is permitted with respect to such Subsidiary under Section 6.01(k), together
with refinancings, refundings, extensions, renewals and replacements thereof
that are permitted by Section 6.01 (or, solely with respect to obligations that
are not Indebtedness, any refinancings, refundings, extensions, renewals and
replacements thereof that are not prohibited by Section 6.01, so long as such
obligations are not amended or otherwise modified in contravention of this
Agreement);

108

    
(f) Liens of a collecting bank arising in the ordinary course of business
under Section 4-208 of the Uniform Commercial Code in effect in the relevant
jurisdiction covering only the items being collected upon; 

    
(g) Liens created under PSA, PACA or other similar Requirements of Law;

    
(h) Liens arising out of sale and leaseback transactions permitted by
Section 6.06;

    
(i) Liens solely on the assets of PPC Mexico and its subsidiaries and Equity
Interests issued by PPC Mexico and its subsidiaries, in each case that secure
the obligations outstanding under the Mexican Credit Facility and any
refinancing, refunding, renewal, extension or replacement thereof permitted
under Section 6.01(f); and 

    
(j) Liens granted by any Subsidiary to secure obligations permitted under
Section 6.01(j), provided that if such Liens are on any property of a U.S. Loan Party, such Liens
are in favor of a U.S. Loan Party, and if such Liens are on property of a
Bermuda Loan Party, such Liens are in favor of a Bermuda Loan Party, in the case
of this proviso, only to the extent such Liens are collaterally assigned to the
Administrative Agent pursuant to terms and conditions acceptable to the
Administrative Agent; 

    
(k) Liens on the Equity Interests of any non-wholly owned Subsidiary of any
Loan Party or Liens on the Equity Interests of any other Investment, in each
case to secure call obligations or similar obligations, and any other call or
similar arrangements related to the Equity Interests issued by such non-wholly
owned Subsidiary or such other Investment set forth in its organizational
documents or any related joint venture or similar agreement; 

    
(l) Liens (i) consisting of customary rights and restrictions contained in
agreements relating to any disposition of assets in a transaction permitted
under Section 6.05 pending the completion thereof and (ii) on assets subject to escrow or
similar arrangements that secure indemnification obligations arising under
agreements relating to any a transaction permitted under Section 6.05 (g) or
(h);

    
(m) Liens of any Governmental Authority arising under any Requirement of Law
in any Inventory of the Company or the Subsidiary that is subject to any
procurement contract with such Governmental Authority; 

109

    
(n) Liens consisting of precautionary filings of financing statements under
the UCC which cover property that is made available to or used by the Loan
Parties or any of the Subsidiaries pursuant to the terms of any operating lease
or consignment of goods; 

    
(o) Liens consisting of rights reserved by or vested in any Person by the
terms of any lease, license, franchise, grant or permit held by the Company or
any of the Subsidiaries or by a statutory provision, to terminate any such
lease, license, franchise, grant or permit; 

    
(p) Liens encumbering reasonable customary initial deposits and margin
deposits attaching to commodity trading accounts or other commodity brokerage
accounts in favor of the relevant commodity broker incurred in the ordinary
course of business and not for speculative purposes and margin loans made by
such commodity broker; provided that such accounts shall be
subject to a control (or similar) agreement among the applicable Loan Party, the
applicable commodity counterparty and the Administrative Agent, which agreement
shall be reasonably satisfactory to the Administrative Agent; 

    
(q) Liens that are incurred in the ordinary course of business consisting of
pledges or deposits to secure liability for reimbursement or indemnification
obligations of insurance carriers providing or administering insurance for the
Company and the Subsidiaries (or, in the case of any Captive Insurance Company,
to secure letters of credit, bank guarantees or similar obligations related
thereto); 

    
(r) Liens that are incurred in the ordinary course of business on the
proceeds of insurance policies to secure the financing of insurance premiums
thereunder; 

    
(s) Liens on the property of any Foreign Subsidiary (other than a Loan Party)
of the Company (and Equity Interests issued by such Foreign Subsidiary, unless
such Equity Interests (or any percentage thereof) are (or are required to be)
pledged under the Loan Documents) securing Indebtedness of such Foreign
Subsidiary to the extent such Indebtedness is permitted under Section 6.01(k) or
(t)(ii);

    
(t) Liens that are incurred in the ordinary course of business consisting of
cash deposits or deposits of Permitted Investments in favor of the seller,
lessor or sublessor of any property in connection with a transaction not
otherwise prohibited under this Agreement; 

    
(u) Liens arising out of any conditional sale, title retention or similar
arrangement for the purchase or sale of goods entered into in the ordinary
course of business and otherwise not prohibited by the terms of this Agreement;

    
(v) Liens that are incurred in the ordinary course of business deemed to
exist in connection with repurchase agreements described in paragraphs (d) and
(g) of the
definition of “Permitted Investments”; 

    
(w) Liens on feed ingredients granted in the ordinary course of business to
the sellers of such feed ingredients to secure the unpaid purchase price
thereof; 

110

    
(x) Liens on cash and/or Permitted Investments securing obligations under
Swap Agreements in favor of the applicable counterparty if (i) such Swap
Agreement is permitted under Section
6.07(b) and (ii) the applicable Loan Party’s
rights under such Swap Agreement are subject to a valid, perfected first
priority security interest (subject to Permitted Liens) in favor of the
Administrative Agent (for the benefit of the Lender Parties), which security
interest is acknowledged, on terms reasonably satisfactory to the Administrative
Agent, by the applicable counterparty to such Swap Agreement; 

    
(y) Liens on the Equity Interests of any Farm Credit System Institution
required to be purchased from time to time by the Borrowers in favor of such
Farm Credit System Institution; and 

    
(z) other Liens securing Indebtedness and other obligations permitted under
this Agreement, which Indebtedness and other obligations shall not exceed
$50,000,000 in the aggregate at any time outstanding, on assets that are not
subject to a security interest in favor of the Administrative Agent (for the
benefit of the Lender Parties) unless the Indebtedness that is being secured
constitutes Capital Lease Obligations or purchase money Indebtedness.

Notwithstanding the foregoing, none of
the Permitted Liens may at any time attach to any Loan Party’s (A) Accounts,
other than those permitted under paragraphs
(a) and (e) of the definition of “Permitted
Encumbrances” and paragraphs
(a), (e), (g) and (l) above and (B) Inventory, other
than those permitted under paragraphs
(a), (b), (e), (g) and (i) of the definition of
“Permitted Encumbrances” and paragraphs
(a), (e), (g), (l), (m) and (w) above. 

          SECTION 6.03.
Fundamental Changes; Change in Nature of
Business. (a) No Loan Party will, nor will it
permit any of the Subsidiaries to, merge into or consolidate with any other
Person; permit any other Person to merge into or consolidate with it; transfer
all or substantially all of its assets to another Person; or liquidate or
dissolve, or change the type of entity it is, or the jurisdiction of its
organization; provided that if, at the time thereof and immediately after giving
effect thereto, no Default or Event of Default (including under paragraph (n) of
Article VII) shall have occurred and be continuing: 

    
(i) any Loan Party or any of the Subsidiaries may merge into, consolidate
with, or dissolve or liquidate into, and may transfer all or substantially all
of its assets to, any other Loan Party or any of the Subsidiaries;
provided
that: 

    
(A) (1) in any such transaction involving the Company, the Company shall be
either the surviving entity or the acquirer of such assets, as the case may be,
and (2) in any such transaction involving any Bermuda Borrower, such Bermuda
Borrower or the Company shall be either the surviving entity or the acquirer of
such assets, as the case may be;

    
(B) (1) in any such transaction involving a U.S. Loan Party, a U.S. Loan
Party shall be either the surviving entity or the acquirer of such assets, as
the case may be, and (2) in any such transaction involving any Bermuda Loan
Party, a Bermuda Loan Party or a U.S. Loan Party shall be either the surviving
entity or the acquirer of such assets, as the case may be; and 

111

    
(C) any such merger or consolidation involving a Person that is not a wholly
owned Subsidiary immediately prior to such merger or consolidation shall not be
permitted unless also permitted by Section
6.04(c), (k), (p) or (s); 

    
(D) with respect to liquidations and dissolutions, the Company shall have
reasonably determined in good faith and in the exercise of its reasonable
business judgment that such liquidation or dissolution is in the best interests
of such Person and is not materially disadvantageous to the Lenders
(provided
that, without limiting the foregoing, under no circumstances shall the Company
be permitted to liquidate or dissolve); and 

    
(E) in
no event shall any Subsidiary, the Equity Interests of which are Collateral (a
“Pledged Subsidiary”), merge into or consolidate with any Subsidiary other than another
Pledged Subsidiary unless after giving effect thereto, the Administrative Agent
shall have a perfected pledge of, and security interest in and to, at least the
same percentage of the issued and outstanding interests of Equity Interests (on
a fully diluted basis) of the surviving Person as the Administrative Agent had
immediately prior to such merger or consolidation, in form and substance
reasonably satisfactory to the Administrative Agent, pursuant to such
documentation (including related legal opinions) as shall be necessary in the
reasonable opinion of the Administrative Agent to create, perfect or maintain
the collateral position of the Administrative Agent therein; 

    
(ii) the Loan Parties and the Subsidiaries may merge into or consolidate with
any other Person in order to effect a Permitted Acquisition; provided that: 

    
(A) (1) in any such transaction involving the Company, the Company shall be
the surviving entity and (2) in any such transaction involving any Bermuda
Borrower, such Bermuda Borrower or the Company shall be the surviving entity;
and 

    
(B) in
any such transaction involving any Loan Party (other than a Borrower, such
non-Borrower Loan Party, a “Subject Loan
Party”), either (1) such Subject Loan Party
shall be the surviving entity or (2) if the Person formed by or surviving any
such merger or consolidation is not such Subject Loan Party (any such Person,
the “Successor Company”), all of the following conditions shall be satisfied on or
prior to the consummation of such transaction: (aa) the Successor Company shall
be a Person organized under the laws of a state of the United States if such
Subject Loan Party was a U.S. Loan Party or a Person organized under the laws of
Bermuda or a state of the United States if such Loan Party was a Bermuda Loan
Party, (bb) the Successor Company shall expressly assume all the obligations of
such Subject Loan Party under this Agreement and the other Loan Documents to
which such Subject Loan Party is a party immediately prior to such transaction
pursuant to a supplement hereto or thereto in form reasonably satisfactory to
the Administrative Agent, (cc) each Loan Guarantor shall have confirmed on terms
satisfactory to the Administrative Agent that its Loan Guaranty shall apply to
the Successor Company’s obligations under this Agreement and the other Loan
Documents, (dd) each Loan Party shall have confirmed on terms satisfactory to
the Administrative Agent that its obligations under the Collateral Documents
shall secure the Successor Company’s obligations under this Agreement and the
other Loan Documents, (ee) such transaction shall not adversely affect the
validity, perfection or priority of the Administrative Agent’s security interest
in the Collateral, (ff) the Administrative Agent shall have received such other
confirmations, instruments and documents as it may reasonably request in
connection with such merger or consolidation and (gg) the Company shall have
delivered to the Administrative Agent an officer’s certificate and an opinion of
counsel, each stating that such merger or consolidation and such confirmations,
instruments and documents delivered in respect of this Agreement comply with
this Agreement, the foregoing to be reasonably satisfactory to the
Administrative Agent. If all of the foregoing conditions are satisfied on or
prior to the consummation of such transaction, the Successor Company will
succeed to, and be substituted for, the relevant Loan Party under this Agreement
and the other Loan Documents; 

112

    
(iii) the Company and any of the Bermuda Borrowers may merge into or
consolidate with any newly formed Subsidiary, the sole purpose of which is to
change the jurisdiction of organization of such Borrower (a “Redomestication”), but only
if (A) the conditions set forth in Section
6.03(a)(ii)(B)(2)(bb) through (gg) are satisfied on or
prior the consummation of such transaction (it being agreed that the relevant
Borrower would be deemed the Subject Loan Party for determining whether such
conditions have been satisfied), (B) such transaction could not reasonably be
expected to result in (1) adverse tax consequences to the Administrative Agent
or the Lenders, as determined in their sole and absolute discretion, or (2) a
Material Adverse Effect, (C) with respect to any Redomestication of the Company,
the jurisdiction of organization of the Company after such Redomestication is
one of the states of the United States, (D) with respect to any Redomestication
of any other Borrower, the jurisdiction of organization of such Borrower after
such Redomestication be satisfactory to the Administrative Agent in its sole and
absolute discretion and (E) such transaction is otherwise consummated in
accordance with the Security Agreements. If all of the foregoing conditions are
satisfied on or prior to the consummation of such Redomestication, the entity
surviving such Redomestication will succeed to, and be substituted for, the
relevant Borrower under this Agreement and the other Loan Documents; 

    
(iv) subject to Section
6.03(a)(iii) above, any Loan Party and any of
the Subsidiaries may change its type of organization or its jurisdiction of
organization in accordance with the Security Agreements; 

    
(v) any Subsidiary of the Borrowers (other than the Bermuda Borrowers) may
consummate a merger, dissolution, liquidation, consolidation or winding up, the
purpose of which is to effect a disposition otherwise permitted pursuant to
6.05(a)(iii), (g), (h) and (m); and 

113

     (vi) the Company may dispose of the Bermuda Borrowers (and the
Bermuda Borrowers may dispose of all or substantially all of their assets), so
long as (A) substantially simultaneously with the consummation of such
transaction, the Bermuda Obligations are repaid in full in cash and the Loan
Documents are amended in a manner satisfactory to the Administrative Agent to
reflect that the Bermuda Borrowers are no longer Borrowers or Loan Parties and
(B) such transaction is permitted under Section 6.05(g). 

          (b) No Loan Party will, nor will it permit any of the Subsidiaries
to, engage in any business in any material respect other than the poultry
industry and businesses substantially similar, related or incidental thereto
(including, without limitation, processing, packaging, distribution and
wholesales of poultry and related or similar products). 

          SECTION
6.04. Investments, Loans, Advances, Guarantees and Acquisitions. No Loan Party will, nor will it permit any of the
Subsidiaries to, acquire, hold, make or permit to exist any Investment, except:

     (a)
(i) Permitted Investments and (ii) Investments
which were Permitted Investments when made, but only if such Permitted
Investments cannot be divested without the Loan Parties and the Subsidiaries
incurring material monetary penalties or losses; 

     (b)
Investments (other than loans and advances to
Subsidiaries) in existence, or committed to be made, on the Effective Date and
described in Schedule 6.04(b), and any renewal or extension thereof; provided that no such
renewal or extension thereof shall increase the amount of such Investment except
by an amount otherwise permitted by this Section 6.04 or change the fundamental
nature of such Investment in a manner not otherwise permitted under this
Section 6.04 (provided that if any other provision of this Section 6.04 is utilized for the
foregoing purposes the related Investment shall be deemed to have been acquired,
held, made or permitted to exist under such provision to the extent of such
utilization); 

     (c)
Investments among the Borrowers and the
Subsidiaries; provided that (i) any loans and advances made by a Loan Party shall be
evidenced by a promissory note; (ii) the aggregate amount of Investments made by
the Loan Parties in Subsidiaries that are not Loan Parties (including all
Investments in Subsidiaries existing on the Effective Date) shall not exceed
$61,842,689 at any time outstanding, plus so long as at any time both
before and after giving effect to such Investment, on a Pro Forma Basis, (A) no
Default or Event of Default shall have occurred and be continuing, (B) the
Borrowers shall be in compliance with the covenant set forth in Section 6.13 (for the Test
Period ending immediately preceding such Investment for which financial
statements have been delivered pursuant to Section 5.01(a) or (b)) and (C) Availability
shall not be less than $200,000,000, an additional $100,000,000 at any time
outstanding (provided that if an Investment is acquired, held, made or permitted to
exist in accordance with this paragraph
(c), it shall continue to be permitted to
exist notwithstanding that as of any subsequent date the Borrowers are not able
to satisfy the conditions set forth in clauses
(A),
(B) and
(C) above);

114 

     (d) Guarantees of the Company in respect of the Mexican Credit
Facility, and any refinancing, refunding, renewal, extension or replacement of
the Mexican Credit Facility permitted under Section 6.01(f); 

     (e)
loans or advances made by the Company or the
Subsidiaries to its employees and officers (and, solely with respect to travel
and entertainment expenses, directors) in the ordinary course of business for
travel and entertainment expenses, relocation costs, housing-related expenses,
expenses associated with the procurement or sale of personal residences of key
employees and officers and similar purposes up to a maximum of $5,000,000 in the
aggregate at any one time outstanding, and advances of payroll payments and
expenses made by the Company or the Subsidiaries to employees and officers to be
treated as expenses for accounting purposes and that are made in the ordinary
course of business and consistent with historical practice; 

     (f)
(i) Accounts and other trade credit extended in
the ordinary course of business, (ii) notes payable, or stock or other
securities issued by Account Debtors to a Loan Party pursuant to negotiated
agreements with respect to settlement of such Account Debtor’s Accounts in the
ordinary course of business and (iii) Investments received in the ordinary
course of business in connection with the bankruptcy or reorganization of, or
settlement of disputes with, or judgments against, or foreclosure or deed in
lieu of foreclosure with respect to, customers and suppliers; 

     (g)
Investments in the form of and arising out of
Swap Agreements permitted by Section
6.07; 

     (h)
Investments of any Person existing at the time
such Person becomes a Subsidiary of a Borrower or consolidates or merges with a
Borrower or any of the Subsidiaries (including in connection with a Permitted
Acquisition) so long as such Investments were not made in contemplation of such
Person becoming a Subsidiary or of such merger, and any renewal or extension
thereof provided that no such renewal or extension thereof shall increase the amount of
such Investment except by an amount otherwise permitted by this Section 6.04 or change the
fundamental nature of such Investment in a manner not otherwise permitted under
this Section 6.04 (provided that if any other provision of this Section 6.04 is utilized for the
foregoing purposes the related Investment shall be deemed to have been acquired,
held, made or permitted to exist under such provision to the extent of such
utilization); 

     (i)
Investments received in connection with the
dispositions of assets in accordance with Section 6.05; 

     (j)
Investments constituting deposits of cash and
Permitted Investments to the extent such deposits are otherwise permitted under
Section 6.02; 

115 

     (k)
Permitted Acquisitions; provided that the aggregate
consideration paid for all Permitted Acquisitions since the Effective Date
(including, in each case, Indebtedness assumed or Guaranteed in connection
therewith (but excluding Indebtedness remaining outstanding following such
purchase or acquisition in reliance on Section
6.01(e)), all obligations in respect of
deferred purchase price (including obligations under any purchase price
adjustment but excluding earnout or similar payments) and all other
consideration payable in connection therewith (including payment obligations in
respect of noncompete, consulting and similar agreements representing
acquisition consideration, but excluding obligations pursuant to agreements
relating to the provision of services on terms at least as favorable to the
Company or the Subsidiaries as would have been obtained if negotiated on an
arms’-length basis with a third Person)) shall not exceed the sum of (i)
$50,000,000 plus (ii) the amount available under the Additional Aggregate
Basket, of which sum not more than $10,000,000 plus 50% of the amount available
under the Additional Aggregate Basket shall be paid as consideration pursuant to
a Permitted Acquisition in which the assets being acquired are owned by, or the
Equity Interests the subject of such acquisition are of, any Subsidiary that is
not to be a Domestic Subsidiary plus (iii) $250,000,000,
provided
that, in the case of this subclause (iii), (A) both immediately before and after
giving effect to the consummation of each such Permitted Acquisition,
Availability on a Pro Forma Basis is not less than $300,000,000 and (B) not more
than $50,000,000 shall be paid as consideration pursuant to a Permitted
Acquisition in which the assets being acquired are owned by, or the Equity
Interests the subject of such acquisition are of, any Subsidiary that is not to
be a Domestic Subsidiary; provided further that if all the Term B Loans
have been paid in full in cash, the foregoing $50,000,000 limitation in
subclause (iii)(B) shall not apply to Permitted Acquisitions in which the assets being
acquired are owned by, or the Equity Interests of such Permitted Acquisitions
are of, any Subsidiary that is organized under the laws of Canada or the
Republic of Mexico;

     (l)
Investments constituting loans and advances to
contract growers (i) in an aggregate amount not to exceed $50,000,000 at any
time outstanding and (ii) for reasonable expenses, in each case as incurred in
the ordinary course of business; 

     (m)
Investments made by any Captive Insurance Company
permitted by the investment policies of such Captive Insurance Company which are
set forth on Schedule 6.04(m), and all
amendments, supplements and all other modifications thereto which are reasonably
satisfactory to the Administrative Agent; 

     (n)
Guarantees by the Company or any of the
Subsidiaries that are consolidated with the Company on the Company’s financial
statements of leases (other than Capital Lease Obligations), accounts payable
and accrued expenses of the Company and the Subsidiaries that do not constitute
Indebtedness, in each case, entered into in the ordinary course of business;

     (o)
Investments consisting of (i) Intercompany IRBs
and Guarantees in respect thereof, to the extent the incurrence (or the
existence) of such Intercompany IRBs or Guarantees, as applicable, is permitted
under paragraph (j) of Section
6.01, (ii) mergers and consolidations,
purchases of all or substantially all assets of a Person and assumption of
assets pursuant to a dissolution or liquidation of any Subsidiary, in each case
to the extent such mergers, consolidations and purchase or assumption of such
assets, as the case may be, are consummated pursuant to Section 6.03, (iii) any
Restricted Payment to the extent made pursuant to Section 6.08 (other than
paragraph (a)(v) thereof) and (iv) solely to the extent constituting an Investment,
dispositions of assets contemplated in Section
6.09(c)(v) (other than clause (A)(2)
thereof);

116 

     (p) other Investments not otherwise permitted by this
Section 6.04 in an amount not to exceed $50,000,000, plus so long as at any time both
before and after giving effect to such Investment, on a Pro Forma Basis, (i) no
Default or Event of Default shall have occurred and be continuing, (ii) the
Borrowers shall be in compliance with the covenant set forth in Section 6.13 (for the Test
Period ending immediately preceding such Investment for which financial
statements have been delivered pursuant to Section 5.01(a) or (b)) and (iii) Availability shall not be less than $300,000,000,
an additional $150,000,000 at any time outstanding; provided that if an Investment is
acquired, held, made or permitted to exist in accordance with this
paragraph (p), it shall continue to be permitted to exist notwithstanding that as of
any subsequent date the Borrowers are not able to satisfy the conditions set
forth in clauses (i), (ii) and (iii) above; 

     (q)
Investment in any Subsidiary that is a Captive
Insurance Company in an amount not to exceed the sum of (i) the amounts needed
by such Captive Insurance Company to maintain regulatory capital requirements
plus
(ii) such other amounts that are reasonably needed in order to insure the risks
of the Borrowers and the Subsidiaries that such Captive Insurance Company is
insuring; 

     (r)
Investments in the Equity Interests of any Farm
Credit System Institution that are required to be made pursuant to the governing
documents of such Farm Credit System Institution in order for such Farm Credit
System Institution to be a Lender or Voting Participant; and 

     (s)
other Investments in an aggregate amount not to
exceed the amount available under the Additional Equity Interest
Basket;

    
provided that no Investment shall
be permitted under this Section
6.04 if prohibited under Section 6.03. 

          SECTION
6.05. Asset Sales. No Loan Party will, nor
will it permit any of the Subsidiaries to, sell, transfer, lease or otherwise
dispose of any asset, including any Equity Interest of any Subsidiary of the
Company owned by it, nor will any Borrower permit any Subsidiary to issue any
additional Equity Interest in such Subsidiary, except: 

     (a)
sales, transfers and dispositions (other than to
any Borrower or any Subsidiary) of (i) inventory in the ordinary course of
business; and (ii) used, obsolete, worn out or surplus equipment or property in
the ordinary course of business; 

     (b)
sales, transfers and dispositions to any Borrower
or any Subsidiary; provided that (i) if any such sales, transfers or dispositions are in
the form of any Investment, such sales, transfers or dispositions shall be made
in compliance with Section
6.04(c), (o), (p) or (s) and (ii) any such sales, transfers
or dispositions to a Subsidiary that is not a Loan Party shall be made in
compliance with Section 6.09; 

117

     (c) sales, transfers and dispositions of (i) accounts receivable
or note receivables in connection with the compromise, settlement or collection
thereof and (ii) Investments received in connection with the bankruptcy or
reorganization of, or settlement of disputes with, or judgments against, or
foreclosure or deed in lieu of foreclosure with respect to, customers and
suppliers of the Borrowers or the Subsidiaries; 

     (d)
sales, transfers and dispositions of (i) cash and
Permitted Investments and other investments permitted by each of Section 6.04(a)(ii),
(e),
(f)(ii),
(f)(iii),
(m) or
(r), and
(ii) Investments described in items
2 through 18 of Schedule 6.04(b); 

     (e)
sale and leaseback transactions permitted by
Section 6.06; 

     (f)
dispositions resulting from any casualty or other
insured damage to, or any taking under power of eminent domain or by
condemnation or similar proceeding of, any property or asset of any Borrower or
any Subsidiary; and 

     (g)
sales, transfers and other dispositions of assets
(other than Equity Interests in a wholly-owned Subsidiary, unless all Equity
Interests in such Subsidiary are sold) that are not permitted by any other
paragraph of this Section; provided that (i) the aggregate fair
market value of all assets sold, transferred or otherwise disposed of in
reliance upon this paragraph
(g) shall not exceed $100,000,000 during any
Fiscal Year and (ii) at the time of and immediately after giving effect to any
such sale, transfer or other disposition or a commitment of any Borrower or
Subsidiary with respect thereto, whichever comes first, on a Pro Forma Basis,
(A) no Default or Event of Default shall have occurred and be continuing and (B)
if such sale, transfer or other disposition is of an operating facility, line of
business or Subsidiary the Borrowers shall be in compliance with the covenant
set forth in Section 6.13 (for the Test Period ending immediately preceding such sale,
transfer or other disposition for which financial statements have been delivered
pursuant to Section 5.01(a) or (b)); 

     (h)
sales, transfers, leases or other dispositions by
the Company or any of its Subsidiaries of assets that were acquired in
connection with a Permitted Acquisition (other than Equity Interests in a
wholly-owned Subsidiary, unless all Equity Interests in such Subsidiary are
sold); provided that any such sale, transfer, lease or other disposition shall be made
or contractually committed to be made within 270 days of the date such assets
were acquired by the Company or such Subsidiary; 

     (i)
licensing and cross-licensing arrangements
involving any intellectual property of the Company or any of the Subsidiaries in
the ordinary course of business; 

     (j)
sales, transfers, leases, and other dispositions
of property that is exchanged, or the proceeds thereof are applied, in each
case, in a substantially contemporaneous acquisition of similar replacement
property; 

     (k)
leases, subleases, licenses or sublicenses of
property in the ordinary course of business that do not materially interfere
with the business of the Company and its Subsidiaries; 

118 

     (l) sales, transfers, leases and other dispositions of property in
the ordinary course of business consisting of the abandonment of intellectual
property rights which, in the reasonable good faith determination of the Company
and in the exercise of its reasonable business judgment, are not material to the
conduct of the business of the Company and its Subsidiaries; 

     (m)
sales, transfers, leases and other dispositions
of Investments in joint ventures and non-wholly owned Subsidiaries of the
Company to the extent required by, or made pursuant to, buy and sell
arrangements or similar arrangements between the parties holding the Equity
Interests of such Persons set forth in joint venture arrangements or similar
binding agreements; 

     (n)
sales, transfers, leases and other dispositions
of real property and related assets in the ordinary course of business in
connection with relocation of officers or employees of the Company and the
Subsidiaries; 

     (o)
voluntary terminations of Swap Agreements;

     (p)
the expiration of any option to buy or sell any
real or personal property; and 

     (q)
Liens permitted by Section 6.02, Investments permitted by
Section 6.04 and Restricted Payments permitted by Section 6.08; 

provided that all sales, transfers, leases and other dispositions permitted
hereby shall be made for (x) fair value (other than those permitted by
paragraphs (b), (f), (i), (k), (l), (m), (p) and (q) above) and (y) at least 75% cash consideration (other than those
permitted by paragraphs (b), (f), (i), (j), (l), (m), (p) and (q) above), in each case other than Excluded Transactions (it
being understood that the exclusions set forth in this proviso shall not limit
the effect of Section 6.09); and provided, further, that no sale, transfer or
other disposition shall be permitted under this Section 6.05, if prohibited under
Section 6.03). 

          SECTION 6.06.
Sale and Leaseback
Transactions. No Loan Party will, nor will it
permit any of the Subsidiaries to, enter into any arrangement, directly or
indirectly, whereby it shall sell or transfer any property, real or personal,
used or useful in its business, whether now owned or hereafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or
transferred, except for any such arrangement (a) involving a sale of any fixed
or capital assets by any Borrower or any Subsidiary that is made for cash
consideration in an amount not less than the fair value of such fixed or capital
asset and is consummated within 180 days after such Borrower or such Subsidiary
acquires or completes the construction of such fixed or capital asset and (b)
that is made in accordance with Section
6.01(e) or (t)(ii). 

          SECTION
6.07. Swap
Agreements. No Loan Party will, nor will it
permit any of the Subsidiaries to, enter into any Swap Agreement, except (a)
Swap Agreements entered into in order to effectively cap, collar or exchange
interest rates (from fixed to floating rates, from one floating rate to another
floating rate or otherwise) with respect to any interest-bearing liability or
Investment of any Borrower or any Subsidiary and not for speculative purposes;
and (b) in accordance with the Commodity Price Risk Management Guidelines
attached hereto as Schedule 6.07 or as otherwise approved by the Administrative Agent in its
Permitted Discretion.

119 

          SECTION 6.08.
Restricted Payments; Certain Payments of
Indebtedness and Management
Fees. (a) No Loan Party will, nor will it
permit any of the Subsidiaries to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except

     (i) each Borrower may declare and pay dividends with respect to
its common stock payable solely in additional shares of its common stock, and,
with respect to its preferred stock, payable solely in additional shares of such
preferred stock or in shares of its common stock; 

     (ii)
Subsidiaries may declare and pay dividends
ratably with respect to, or purchase, redeem, retire, acquire, cancel or
terminate, ratably, their Equity Interests; 

     (iii)
the Company may make Restricted Payments in the
form of the purchase or redemption of (A) Equity Interests of the Company held
by present or former directors, officers or employees of the Company or any of
its Subsidiaries (or the estate, heirs, family members, spouses or former
spouses of any of the foregoing) or by any employee stock or similar plan or
agreement; provided that the aggregate amount of such Restricted Payments under this
clause (a)(iii)(A) shall not exceed in any Fiscal Year $10,000,000 and (B) fractional
shares of stock; 

     (iv)
the Company may make Restricted Payments in any
Fiscal Year in an aggregate amount not to exceed 50% of cumulative Net Income
since the beginning of Fiscal Year 2012 as reported in the Company’s annual
audited financial statements delivered, from time to time, pursuant to
Section 5.01(a); provided that at the time of such Restricted Payment and after giving effect
thereto and to any borrowing in connection therewith, on a Pro Forma Basis (i)
the Borrowers shall be in compliance with the covenant set forth in
Section 6.13, (ii) no Default or Event of Default shall have occurred and be
continuing, (iii) Availability is not less than $300,000,000 and (iv) Net Income
for the prior four Fiscal Quarters is not less than $100,000,000. 

     (v)
Restricted Payments made to acquire the common
stock in a Subsidiary held by one or more minority shareholders to the extent
such acquisition is permitted pursuant to Section 6.04; 

     (vi)
Tax Distributions;

     (vii)
non-cash repurchases of Equity Interests deemed
to occur upon the exercise or vesting of stock options or similar Equity
Interests if such repurchased Equity Interests represent a portion of the
exercise price of such options or payments of Taxes made by the Company or the
Subsidiaries in respect of options or similar Equity Interests exercised or
vested in connection with such Equity Interests; 

     (viii) Restricted Payments in an aggregate
amount not to exceed the then amount available under the Additional Equity
Interest Basket; and 

120 

     (ix) to the extent constituting a Restricted Payment, the Loan
Parties may enter into the transactions permitted pursuant to (A)
Section 6.03(a)(i), (a)(ii) or (a)(iii) for the purpose of paying the acquisition consideration pursuant to any
merger or consolidation referred to therein; (B) Section 6.03(a)(i) or (a)(v) in connection with
any liquidation or dissolution referred to therein; or (C) Section 6.05 (other than
Section 6.05(g)). 

     (b)
No Loan Party will, nor will it permit any of the
Subsidiaries to, make or agree to pay or make, directly or indirectly, any
payment or other distribution (whether in cash, securities or other property) of
or in respect of principal of or interest on any unsecured Indebtedness that is
Material Indebtedness, or any payment or other distribution (whether in cash,
securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Indebtedness, except: 

     (i)
payment of regularly scheduled interest and
principal payments as and when due, subject to any restrictions set forth in
this Agreement; 

     (ii)
any refinancing, refunding, extension, renewal or
replacement of such Indebtedness to the extent permitted by Section 6.01; and

     (iii)
any payment or other distribution of, or in
respect of, or any repurchase, redemption, retirement, acquisition, cancellation
or termination, at any time and from time to time, of all or any portion of such
Indebtedness in an amount not to exceed the amount available under the
Additional Equity Interest Basket or in exchange for Equity Interests of the
Company or any direct or indirect parent of the Company. 

     (c)
No Loan Party will, nor will it permit any of the
Subsidiaries to, make or agree to pay any Management Fees if any Default or
Event of Default shall have occurred and be continuing or would result
therefrom. 

          SECTION
6.09. Transactions with Affiliates. No Loan
Party will, nor will it permit any of the Subsidiaries to, sell, lease or
otherwise transfer any property or assets to, or purchase, lease or otherwise
acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except 

     (a)
transactions that (i) are in the ordinary course
of business and (ii) are at prices and on terms and conditions not less
favorable to such Borrower or such Subsidiary than could be obtained on an
arm’s-length basis from unrelated third parties;

     (b)
transactions between or among any Loan Parties
not involving any other Affiliate; 

     (c)
the following transactions between or among any
Loan Parties and any Subsidiaries that are not Loan Parties: 

     (i)
any Indebtedness permitted under Section 6.01(b),
(c),
(d),
(j),
(k),
(r) and
(y) and any
refinancing, refunding, extension, renewal or replacement of any of the
foregoing permitted under Section
6.01; 

121 

     (ii) any transaction permitted under Section 6.03(a);

     (iii)
any Investments permitted under Section 6.04(b),
(c),
(e),
(h),
(o),
(p), (q) and (s); 

     (iv)
Guarantees permitted under Section
6.01(b),
(d),
(f),
(i),
(j) and
(k) and
6.04(b),
(c),
(d),
(h),
(n),
(o)(i) and
(s)
(provided
that this paragraph (iv) shall only extend to the Borrower or Subsidiary whose
obligations are being Guaranteed and not to the beneficiary of such Guarantee);
and 

     (v)
any sale, transfer or other disposition of (A)
Inventory in the ordinary course of business and consistent with historical
practice to (1) any Subsidiary other than PPC Mexico and its subsidiaries and
(2) PPC Mexico or any of its subsidiaries or (B) any other personal property
(other than Inventory) in an aggregate amount (determined in relation to the net
book value of such property) not to exceed $25,000,000 per Fiscal Year;
provided
that, with respect to clause
(A)(1) above, all the net cash flow of each
such Subsidiary shall be promptly paid to the Company; and provided, further, that, with respect
to clause (B) above, any proceeds received within one year of the initial sale,
transfer or other disposition of such property by a Subsidiary that is not a
Loan Party from the re-disposition of such property shall be promptly paid to
the Loan Party that sold, transferred or otherwise disposed of such property to
such Subsidiary in the form received (net of any amounts previously paid to such
Loan Party as consideration for such disposition), either as sales proceeds or
as a dividend or other distribution (the “Excluded Transactions”); 

     (vi)
any Liens permitted by 6.02(c), (e), (j) and (k); 

     (d)
any transaction permitted by Section 6.08(a),
6.08(b)(iii) (to the extent utilizing amounts available pursuant to the Additional
Equity Interest Basket) or 6.12(b);

     (e)
the payment of reasonable fees to directors of
any Borrower or any Subsidiary who are not employees of such Borrower or
Subsidiary, and compensation and employee benefit arrangements paid to, and
indemnities provided for the benefit of, directors, officers or employees of the
Borrowers or their Subsidiaries in the ordinary course of business; 

     (f)
any issuances of securities or other payments,
awards or grants in cash, securities or otherwise pursuant to, or the funding
of, employment agreements, stock options and stock ownership plans approved by a
Borrower’s board of directors; 

     (g)
employment, severance agreements, change of
control or other similar agreements or arrangements entered into in the ordinary
course of business; 

     (h)
subscription agreements or similar agreements
pertaining to the repurchase of Equity Interests pursuant to put/call rights or
similar rights with employees, directors and officers of the Company or the
Subsidiaries;

122 

     (i)
any purchase, sale or resale of common Equity
Interests of or contributions to the common equity capital of the Company, in
each case, by, for or on behalf of the Company or a stockholder thereof
(including any customary agreement in connection therewith); provided that any purchase
or sale of common Equity Interests by the Company or any Loan Party shall be
subject to Section 6.09(a)(ii);

     (j)

     (k)
transactions exclusively among Subsidiaries that
are not Loan Parties; 

(l) the following transactions with any Affiliate that is not a
Subsidiary

     (i) Indebtedness permitted under Section 6.01(b), (r) and (y); and 

     (ii)
Investments permitted under Section 6.04(b),
(e),
(h),
(p)
(provided
that the relevant Investments are at prices and
on terms and conditions not less favorable than could be obtained on an
arm’s-length basis from unrelated third parties),
(r) and
(s).

          SECTION 6.10.
Restrictive Agreements. No Loan Party will, nor will it permit any of the
Subsidiaries to, directly or indirectly, enter into, incur or permit to exist
any agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of such Loan Party or any of the Subsidiaries to
create, incur or permit to exist any Lien upon any of its property or assets to
secure the Secured Obligations (and any refinancing, refunding, extension,
renewal or replacement thereof), or (b) the ability of any Subsidiary to pay
dividends or other distributions with respect to any shares of its Equity
Interests or to make or repay loans or advances to any Borrower or any other
Subsidiary or to Guarantee Indebtedness of any Borrower or any other Subsidiary;
provided that the foregoing shall not apply to (i) restrictions and conditions
imposed by Requirements of Law or by any Loan Document; (ii) restrictions and
conditions imposed on the Loan Parties existing on the Effective Date identified
on Schedule 6.10 and amendments, modifications,
extensions renewals, replacements or refinancings thereof (but shall apply to
any refinancing, refunding, extension, renewal or replacement of, or any
amendment or modification expanding the scope of, any such restriction or
condition); (iii) restrictions and conditions imposed upon the Company (but
solely with respect to the Equity Interests held by the Company in PPC Mexico),
PPC Mexico and its Subsidiaries under the Mexican Credit Facility and any
refinancing, extension, renewal or replacement thereof permitted under
Section 6.01(f); (iv) customary restrictions and conditions contained in agreements
relating to the sale, transfer, lease or other disposition of a Subsidiary or
asset in a transaction permitted under Section
6.05 pending such sale, transfer, lease or
other disposition, (provided that such restrictions and conditions apply only to the
Subsidiary or asset that is to be sold, transferred, leased or otherwise
disposed and such sale, transfer, lease or other disposition is otherwise
permitted hereunder); (v) customary provisions in joint venture agreements and
other similar agreements applicable to joint ventures or Equity Interests
therein entered into in the ordinary course of business; (vi) customary
provisions contained in leases, subleases, licenses or sublicenses of
intellectual property and other similar agreements entered into in the ordinary
course of business that do not materially interfere with the business of the
Company and its Subsidiaries; and (vii) any agreement in effect at the time such
Person becomes a Subsidiary of the Company, so long as such agreement was not
entered into in contemplation of such Person becoming a Subsidiary of the
Company (provided
that such restrictions and conditions apply only to such Subsidiary and its
assets, and not any Loan Party or other Subsidiary or the assets of any Loan
Party or other Subsidiary); and provided, further, that clause (a) of the foregoing
shall not apply to (A) restrictions or conditions imposed by any agreement
relating to secured Indebtedness or sale and leaseback transactions otherwise
permitted by this Agreement if such restrictions or conditions apply only to the
property or assets securing such Indebtedness and (B) customary provisions in
any agreement entered into in the ordinary course of business restricting the
assignment thereof.

123 

          SECTION 6.11.
Amendment of Material
Documents. No Loan Party will, nor will it
permit any of the Subsidiaries to, amend, modify or waive any of its rights
under (a) any agreement relating to any Indebtedness the payment of which is
subordinated to payment of the Obligations (including the Permitted Subordinated
Indebtedness); (b) its certificate of incorporation, by-laws, operating,
management or partnership agreement or other organizational documents; (c) any
Material Agreement; (d) the Mexican Credit Facility or the guarantee by the
Company thereof; or (e) any Senior Note Document, in each case to the extent any
such amendment, modification or waiver: 

     (i) could reasonably be expected to be materially adverse to
the rights, interests or privileges of the Administrative Agent or the other
Lender Parties or their ability to enforce the same; 

     (ii) solely with respect to
Section 6.11(a), results in the imposition or expansion in any material respect of any
restriction or burden on the Borrowers or any of the Subsidiaries; or

     (iii) individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect. 

          SECTION
6.12. Capital Expenditures. The Borrowers
will not, nor will they permit any Subsidiary to, incur or make any Capital
Expenditures during any Fiscal Year in an amount exceeding the sum of (a)
$350,000,000 and (b) any amounts available under the Additional Equity Interest
Basket. 

          SECTION
6.13. Minimum Consolidated Tangible Net Worth. The Borrowers will not permit Consolidated Tangible Net Worth, as of
the last day of any Fiscal Quarter, to be less than the sum of (a) $600,000,000
plus (b)
50% of the cumulative Net Income (excluding any losses) of the Company and the
Subsidiaries as reported in the Company’s audited financial statements beginning
with such financial statements delivered for Fiscal Year 2014 plus (c) $150,000,000 if
any Restricted Payments have been made pursuant to Section 6.08(a)(iv) (it being
understood that such increase shall only occur once during the term of this
Agreement). 

          SECTION
6.14. Change in Fiscal Year. No Borrower
will make any change in its fiscal year. 

124 

ARTICLE VII 

EVENTS OF DEFAULT 

          If any of the following events (any such event, an
“Event of Default”) shall occur: 

     (a) the Borrowers shall fail to pay any principal of any Loan or
any reimbursement obligation in respect of any LC Disbursement when and as the
same shall become due and payable, whether at the due date thereof or at a date
fixed for prepayment thereof or otherwise; 

     (b)
the Borrowers shall fail to pay any interest on
any Loan or any fee or any other Obligation (other than an amount referred to in
paragraph (a) of this Article) payable pursuant to this Agreement, when and as the
same shall become due and payable, and such failure shall continue unremedied
for a period of three Business Days; 

     (c)
any representation or warranty made or deemed
made by or on behalf of any Loan Party or any Subsidiary in this Agreement or
any other Loan Document, or in any report, certificate, financial statement or
other document furnished pursuant to or in connection with this Agreement or any
other Loan Document, shall prove to have been incorrect in any material respect
(or, in the case of any representation, warranty or statement qualified by
materiality, in any respect) when made or deemed made; 

     (d)
any Loan Party shall fail to observe or perform
any covenant, condition or agreement contained in Section 5.02(a), 5.03 (with respect to a
Loan Party’s existence) or 5.08 or in Article VI; 

     (e)
subject to paragraph (o) below, any Loan Party
shall fail to observe or perform any covenant, condition or agreement contained
in this Agreement or any other Loan Document (other than those which constitute
a default under another Section of this Article), and such failure shall
continue unremedied for a period of (i) two Business Days if such breach relates
to the terms or provisions of Section
5.01(f) (or, if such breach is of the
requirement to report weekly pursuant to the parenthetical of Section 5.01(f), three
Business Days); (ii) 10 Business Days after notice thereof from the
Administrative Agent (which notice will be given at the request of any Lender)
if such breach relates to terms or provisions of Section 5.02 (other than
Section 5.02(a)), 5.03 (other than with respect to a Loan Party’s existence), 5.06 or 5.07(b); or (iii) 30 days
after notice thereof from the Administrative Agent (which notice will be given
at the request of any Lender) if such breach relates to terms or provisions of
any other Section of this Agreement;

     (f)
any Loan Party or any Subsidiary shall fail to
make any payment (whether of principal or interest and regardless of amount) in
respect of any Material Indebtedness, when and as the same shall become due and
payable after the expiration of any applicable grace periods provided for
therein; 

     (g)
any event or condition occurs that results in any
Material Indebtedness becoming due prior to its scheduled maturity or that
enables or permits (after the expiration of any applicable grace periods
provided for therein) the holder or holders of any such Indebtedness or any
trustee or agent on its or their behalf to cause any such Indebtedness to become
due, or to require the prepayment, repurchase, redemption or defeasance thereof,
prior to its scheduled maturity (it being understood that margin calls in
respect of Swap Agreements shall not constitute a defeasance or default in
respect thereof); provided that this paragraph
(g) shall not apply to Indebtedness secured
by assets that are voluntarily sold, transferred or disposed of, or that become
subject to a casualty or condemnation event, that becomes due as a result of any
such sale, transfer or disposition (including as a result of a casualty or
condemnation event and to the extent such sale, transfer or disposition is not
prohibited under this Agreement);

125 

     (h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) bankruptcy, liquidation, reorganization or
other relief in respect of a Loan Party or any Subsidiary of any Loan Party or
its debts, or of a substantial part of its assets, under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any Loan Party or any Subsidiary of any Loan
Party or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed or unstayed for 90 days or an
order or decree approving or ordering any of the foregoing shall be
entered;

     (i)
any Loan Party or any Subsidiary of any Loan
Party shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect;
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or petition described in paragraph (h) of this
Article; (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for such Loan Party or
Subsidiary of any Loan Party or for a substantial part of its assets; (iv) file
an answer admitting the material allegations of a petition filed against it in
any such proceeding; (v) make a general assignment for the benefit of creditors;
or (vi) take any action for the purpose of effecting any of the foregoing;

     (j)
any Loan Party or any Subsidiary of any Loan
Party shall become unable, admit in writing its inability or fail generally to
pay its debts as they become due; 

     (k)
one or more judgments for the payment of money in
an aggregate amount in excess of $25,000,000 (to the extent not adequately
covered by insurance as to which the insurer has not denied coverage) shall be
rendered against any Loan Party, any Subsidiary or any combination thereof and
the same shall remain unpaid, unbonded or undischarged for a period of 30
consecutive days during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to execute to enforce any
such judgment (as opposed to filing or recording such judgment) or any Loan
Party or any Subsidiary shall fail within 60 days to discharge one or more
non-monetary judgments or orders which, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect, which judgments
or orders, in any such case, are not stayed on appeal or otherwise being
appropriately contested in good faith by proper proceedings diligently
pursued;

126 

     (l) an ERISA Event shall have occurred that, when taken together
with all other ERISA Events that have occurred, could reasonably be expected to
result in a Material Adverse Effect; 

     (m)
a reasonable basis shall exist for the assertion
against any Loan Party or any Subsidiary, or any predecessor in interest of any
Loan Party or any Subsidiary, of (or there shall have been asserted against any
Loan Party or any Subsidiary) a claim for any Environmental Liability that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect; 

     (n)
a Change in Control shall occur; 

     (o)
the occurrence of any “Event of Default” (as
defined in the U.S. Security Agreement); 

     (p)
any Loan Guaranty shall fail to remain in full
force or effect or any action shall be taken by (i) any Loan Party or any of its
Affiliates or (ii) any other Person (other than a Lender Party or its
Affiliates) if, in the case of this clause
(ii), such action has a reasonable likelihood
of being determined in a manner adverse to the Loan Parties, to discontinue or
to assert the invalidity or unenforceability of any Loan Guaranty or any Loan
Guarantor shall deny that it has any further liability under any Loan Guaranty
to which it is a party, or shall give notice to such effect (except as expressly
provided for herein); 

     (q)
any Collateral Document shall for any reason fail
to create a valid, perfected first priority security interest (subject to
Permitted Liens) in any Collateral purported to be covered thereby (other than
to the extent such failure results from failure by the Administrative Agent to
file UCC financing statements or continuation statements under the UCC in
respect of such security interest), except as permitted by the terms of any
Collateral Document, or any Collateral Document shall fail to remain in full
force or effect or any action shall be taken by (i) any Loan Party or any of its
Affiliates or (ii) any other Person (other than a Lender Party or its
Affiliates) if, in the case of this clause
(ii), such action has a reasonable likelihood
of being determined in a manner adverse to the Loan Parties, to discontinue or
to assert the invalidity or unenforceability of any Collateral Document; or

     (r)
any material provision of any Loan Document for
any reason ceases to be valid, binding and enforceable in accordance with its
terms (or any Loan Party shall challenge the enforceability of any Loan Document
or shall assert in writing, or engage in any action or inaction based on any
such assertion, that any provision of any of the Loan Documents has ceased to be
or otherwise is not valid, binding and enforceable in accordance with its
terms); 

then, and in every such event (other
than an event with respect to the Borrowers described in paragraph (h) or
(i) of this
Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower Representative, take either or both of the following
actions, at the same or different times: (i) terminate the Commitments, and
thereupon the Commitments shall terminate immediately, and (ii) declare the
Loans and other Obligations then outstanding to be due and payable in whole (or
in part, in which case any Obligations not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans and other Obligations so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrowers
accrued hereunder, shall become due and payable immediately, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrowers; and in case of any event with respect to the
Borrowers described in paragraph (h) or (i) of this Article, the Commitments shall automatically
terminate and the principal of the Loans and other Obligations then outstanding,
together with accrued interest thereon and all fees and other Obligations of the
Borrowers accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrowers. Upon the occurrence and the continuance of an
Event of Default, the Administrative Agent may, and at the request of the
Required Lenders shall, exercise any rights and remedies provided to the
Administrative Agent under the Loan Documents or at law or equity, including all
remedies provided under the UCC. 

127 

ARTICLE VIII 

ADMINISTRATIVE AGENT; COLLATERAL AGENT;
OTHER AGENTS 

          SECTION 8.01.
Administrative Agent. 

          Each of the
Lender Parties hereby irrevocably appoints the Administrative Agent as its agent
hereunder and under the other Loan Documents and authorizes the Administrative
Agent to take such actions on its behalf, including execution of the other Loan
Documents, and to exercise such powers as are delegated to the Administrative
Agent by the terms of the Loan Documents, together with such actions and powers
as are reasonably incidental thereto. 

          The Person
serving as the Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the same
as though it were not the Administrative Agent, and such Person and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with the Loan Parties or any Subsidiary of a Loan Party or
other Affiliate thereof as if it were not the Administrative Agent hereunder.

          The
Administrative Agent shall not have any duties or obligations except those
expressly set forth in the Loan Documents. Without limiting the generality of
the foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing; (b) the Administrative Agent shall not have any duty to take
any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing as directed by
the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 9.02); and (c) except as
expressly set forth in the Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to any Loan Party or any of the Subsidiaries that is
communicated to or obtained by the Person serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 9.02) or in the absence of its
own gross negligence or willful misconduct. The Administrative Agent shall be
deemed not to have knowledge of any Default unless and until written notice
thereof is given to the Administrative Agent by the Borrower Representative or a
Lender Party, and the Administrative Agent shall not be responsible for or have
any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with any Loan Document; (ii) the
contents of any certificate, report or other document delivered hereunder or in
connection with any Loan Document; (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth in any Loan
Document; (iv) the adequacy, accuracy or completeness of any information
(whether oral or written) set forth or in connection with any Loan Document; (v)
the legality, validity, enforceability, effectiveness, adequacy or genuineness
of any Loan Document or any other agreement, instrument or document; (vi) the
creation, perfection or priority of Liens on the Collateral or the existence of
the Collateral; or (vii) the satisfaction of any condition set forth in
Article IV
or elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

128 

          The Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any representation, notice,
request, certificate, consent, statement, instrument, document or other writing
or communication reasonably believed by it to be genuine, correct, and to have
been authorized, signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and
reasonably believed by it to be made or authorized by the proper Person, and
shall not incur any liability for relying thereon. The Administrative Agent may
consult with legal counsel (who may be counsel for the Borrowers), independent
accountants and other experts reasonably selected by it, and shall not be liable
for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts. 

          The
Administrative Agent may perform any and all its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by the
Administrative Agent in its reasonable discretion. The Administrative Agent and
any such sub-agent may perform any and all its duties and exercise its rights
and powers through their respective Related Parties. The exculpatory provisions
of the preceding paragraphs shall apply to any such subagent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as the Administrative
Agent. 

          Subject to
the appointment and acceptance of a successor Administrative Agent as provided
in this paragraph, the Administrative Agent may resign at any time by notifying
the Lenders, the Issuing Banks and the Borrower Representative. Upon any such
resignation, the Required Lenders shall have the right, with the consent of the
Borrower Representative (such consent not to be unreasonably withheld or
delayed) in the absence of a continuing Event of Default, to appoint a
successor. If no successor shall have been so appointed by the Required Lenders
and the Borrower Representative and shall have accepted such appointment within
30 days after the retiring Administrative Agent gives notice of its resignation,
then the retiring Administrative Agent may, on behalf of the Lender Parties,
appoint a successor Administrative Agent which shall be a commercial bank or an
Affiliate of any such commercial bank, in either case acceptable to the Borrower
Representative in the absence of a continuing Event of Default (such acceptance
not to be unreasonably withheld or delayed). In addition, if the Administrative
Agent is a Defaulting Lender, the Required Lenders shall have the right, with
the consent of the Borrower Representative (such consent not to be unreasonably
withheld or delayed) in the absence of a continuing Event of Default, to appoint
a successor. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges, obligations and duties of the retiring (or
retired) or removed Administrative Agent, and the retiring or removed
Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrowers to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrowers and such successor. After the Administrative Agent’s
resignation or removal hereunder, the provisions of this Article, Sections 2.18(c) and 9.03 shall continue in effect for the
benefit of such retiring or removed Administrative Agent, its sub agents and
their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while it was acting as Administrative Agent.

129 

          Each Lender Party acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender Party also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender Party and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or any related agreement or any document furnished
hereunder or thereunder. 

          SECTION
8.02. Collateral Agent. 

          Each of the
Lender Parties hereby irrevocably appoints the Collateral Agent as its agent
hereunder and under the other Loan Documents and authorizes the Collateral Agent
to take such actions on its behalf and to exercise such powers as are delegated
to the Collateral Agent by the terms of the Loan Documents, together with such
actions and powers as are reasonably incidental thereto. 

          The Person
serving as Collateral Agent hereunder shall have the same rights and powers in
its capacity as a Lender as any other Lender and may exercise the same as though
it were not the Collateral Agent, and such Person and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with
the Loan Parties or any Subsidiary of a Loan Party or other Affiliate thereof as
if it were not the Collateral Agent hereunder. 

          The
Collateral Agent shall not have any duties or obligations except those expressly
set forth in the Loan Documents. Without limiting the generality of the
foregoing, (a) the Collateral Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing; (b) the Collateral Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except as expressly
set forth in this Agreement; and (c) except as expressly set forth in the Loan
Documents, the Collateral Agent shall not have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to any Loan
Party or any of the Subsidiaries that is communicated to or obtained by the
Person serving as the Collateral Agent or any of its Affiliates in any capacity.
The Collateral Agent shall not be liable for any action taken or not taken by it
in the absence of its own gross negligence or willful misconduct. The Collateral
Agent shall not be responsible for or have any duty to ascertain or inquire into
(i) any statement, warranty or representation made in or in connection with any
Loan Document; (ii) the contents of any certificate, report or other document
delivered hereunder or in connection with any Loan Document; (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth in any Loan Document; (iv) the adequacy, accuracy or
completeness of any information (whether oral or written) set forth or in
connection with any Loan Document; (v) the legality, validity, enforceability,
effectiveness, adequacy or genuineness of any Loan Document or any other
agreement, instrument or document; (vi) the creation, perfection or priority of
Liens on the Collateral or the existence of the Collateral; or (vii) the
satisfaction of any condition set forth in Article
IV or elsewhere in any Loan Document, other
than to confirm receipt of items expressly required to be delivered to the
Collateral Agent.

130 

          The Collateral Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any representation, notice, request,
certificate, consent, statement, instrument, document or other writing or
communication reasonably believed by it to be genuine, correct and to have been
authorized, signed or sent by the proper Person. The Collateral Agent may
consult with legal counsel (who may be counsel for the Borrowers), independent
accountants and other experts reasonably selected by it, and shall not be liable
for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts. 

          The
Collateral Agent may perform any and all its duties and exercise its rights and
powers by or through any one or more sub-agents appointed by the Collateral
Agent in its reasonable discretion. The Collateral Agent and any such sub-agent
may perform any and all its duties and exercise its rights and powers through
their respective Related Parties. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Collateral Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as the Collateral Agent. 

          Subject to
the appointment and acceptance of a successor Collateral Agent as provided in
this paragraph, the Collateral Agent may resign at any time by notifying the
Lenders, the Administrative Agent, the Issuing Banks and the Borrower
Representative. Upon any such resignation, the Required Lenders shall have the
right, with the consent of the Borrower Representative (such consent not to be
unreasonably withheld or delayed) in the absence of continuing Event of Default,
to appoint a successor. If no successor shall have been so appointed by the
Required Lenders and the Borrower Representative and shall have accepted such
appointment within 30 days after the retiring Collateral Agent gives notice of
its resignation, then the retiring Collateral Agent may, on behalf of the Lender
Parties, appoint a successor Collateral Agent which shall be a commercial bank
or an Affiliate of any such commercial bank, in either case acceptable to the
Borrower Representative in the absence of a continuing Event of Default (such
acceptance not to be unreasonably withheld or delayed). Upon the acceptance of
its appointment as Collateral Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges,
obligations and duties of the retiring (or retired) Collateral Agent, and the
retiring Collateral Agent shall be discharged from its duties and obligations
hereunder.

131 

          The fees payable by the Borrowers to a successor Collateral
Agent shall be the same as those payable to its predecessor unless otherwise
agreed between the Borrowers and successor Collateral Agent. After any
Collateral Agent’s resignation hereunder, the provisions of this Article,
Sections 2.18(c) and 9.03 shall continue in effect for the benefit of such retiring Collateral
Agent, its sub agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while it was acting as
Collateral Agent.

          Each Lender
Party hereby agrees that (a) it has requested a copy of each Report prepared by
or on behalf of the Collateral Agent; (b) the Collateral Agent (i) makes no
representation or warranty, express or implied, as to the completeness or
accuracy of any Report or any of the information contained therein or any
inaccuracy or omission contained in or relating to a Report and (ii) shall not
be liable for any information contained in any Report; (c) the Reports are not
comprehensive audits or examinations, and that any Person performing any field
examination will inspect only specific information regarding the Loan Parties
and will rely significantly upon the Loan Parties’ books and records, as well as
on representations of the Loan Parties’ personnel and that the Collateral Agent
undertakes no obligation to update, correct or supplement the Reports; and (d)
it will not share the Report with any Loan Party or any other Person, and will
otherwise keep all Reports confidential in accordance with Section 9.12, except as
otherwise permitted pursuant to this Agreement. 

          SECTION
8.03. Other Agents. The Joint Syndication
Agents, the Joint Documentation Agents, the Joint Lead Arrangers and the Joint
Bookrunners shall not have any right, power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to all
Lenders as such. 

ARTICLE IX 

MISCELLANEOUS 

          SECTION
9.01. Notices. (a) Except in the case of
notices and other communications expressly permitted to be given by telephone
(and subject to paragraph (b) below), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by facsimile, as
follows: 

         
(i) if
to any Loan Party, to the Borrower Representative at: 

              
Pilgrim’s Pride Corporation
              
1770 Promontory Circle
              
Greeley, Colorado 80634
              
Attention: Dennis Roerty, Head of Finance
               Fabio
Sandri, Chief Financial Officer
               Facsimile
No: (970) 336-6616

132 

         
(ii) if to the Administrative Agent or the Swingline Lender, to CoBank or
CoBank, FCB at: 

              
CoBank, ACB
              
5500 South Quebec Street
              
Greenwood Village, Colorado 80111
              
Attention: Syndications Coordinator,
Corporate Finance Division
              
Facsimile No: (303) 694-5830 

     (iii) if to any other Lender, Agent or Issuing Bank to it at its
address or facsimile number set forth in its Administrative Questionnaire.

All such notices and other
communications (i) sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received
or (ii) sent by facsimile shall be deemed to have been given when delivery has
been confirmed; provided that if delivery is not confirmed during normal business
hours for the recipient, such notice or communication shall be deemed to have
been given at the opening of business on the next Business Day for the
recipient. 

         
(b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications (including e-mail and
internet or intranet websites) pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to notices pursuant to
Article II,
unless otherwise agreed by the Administrative Agent. The Administrative Agent or
the Borrower Representative (on behalf of the Loan Parties) may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided that approval of
such procedures may be limited to particular notices or communications. All such
notices and other communications (i) sent to an e-mail address shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that if not given during the
normal business hours of the recipient, such notice or communication shall be
deemed to have been given at the opening of business on the next Business Day
for the recipient, and (ii) posted to an Internet or intranet website shall be
deemed received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause
(b)(i) of notification that such notice or
communication is available and identifying the website address therefor;
provided
that if not given during the normal business hours of the recipient, such notice
or communication shall be deemed to have been given at the opening of business
on the next Business Day for the recipient. 

         
(c) Any party hereto may change its address or facsimile number for notices
and other communications hereunder by notice to the other parties hereto.

133 

          SECTION
9.02. Waivers;
Amendments. (a) No failure or delay by any
Lender Party in exercising any right or power hereunder or under any other Loan
Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Lender Parties hereunder and
under any other Loan Document are cumulative and are not exclusive of any rights
or remedies that they would otherwise have. No waiver of any provision of any
Loan Document or consent to any departure by any Loan Party therefrom shall in
any event be effective unless the same shall be permitted by paragraph (b) of this
Section, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan or the issuance of a Letter of Credit shall
not be construed as a waiver of any Default, regardless of whether any Lender
Party may have had notice or knowledge of such Default at the time. 

         
(b) Neither this Agreement nor any other Loan Document nor any provision
hereof or thereof may be waived, amended, restated or otherwise modified except
(i) in the case of this Agreement, pursuant to an agreement or agreements in
writing entered into by the Borrowers and the Required Lenders; or (ii) in the
case of any other Loan Document, pursuant to an agreement or agreements in
writing entered into by the Administrative Agent and each Loan Party that is a
party thereto, with the consent of the Required Lenders; provided that no such
agreement shall:

          (A) increase the Commitment of any Lender without the written
consent of such Lender and any Voting Participant directly affected thereby, it
being understood that waivers, amendments, restatements or other modifications
of conditions precedent, covenants, Defaults or Events of Default or of a
mandatory reduction in the aggregate commitments shall not constitute increases
in any Commitment (provided that the Administrative Agent may make Protective Advances as
set forth in Section 2.04);

         
(B) reduce or forgive the principal amount of any Loan or LC Disbursement or
reduce the rate of interest thereon, or reduce or forgive any interest or fees
or the Make-Whole Amount payable hereunder, or modify the events giving rise to
a payment of the Make-Whole Amount set forth in Sections 2.17(b)(x), (y) and (z), in each case without
the written consent of each Lender and Voting Participant directly affected
thereby; provided that nothing in this paragraph
(B) shall restrict the ability of any Lender
to reduce or forgive any amounts payable to such Lender with respect to any Loan
or Letter of Credit without the consent of any other Lender or Voting
Participant; 

         
(C) except as otherwise provided in Sections 9.02(b)(I) and
(J) below,
extend the maturity of any Loan or postpone any scheduled date of payment of the
regularly scheduled installment payments of principal of any Loan or LC
Disbursement, or any date for the payment of any interest, fees or other
Obligations payable hereunder, or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date of expiration of any Commitment, without
the written consent of each Lender and Voting Participant directly affected
thereby; 

         
(D) change Section 2.19(b) or (d) in a manner that would alter the manner in which payments are
shared, without the written consent of each Lender and Voting Participant
directly affected thereby; 

134 

          (E) (1) increase the advance rates set forth in the definition of
“Borrowing Base” or (2) make changes affecting (x) eligibility criteria, as such
eligibility criteria are in effect on the Effective Date (including adding new
categories of eligible assets or eliminating any categories of Reserves) under
the Borrowing Base or (y) the definition of “Dilution Reserve” or “Value of
Eligible Inventory”, in each case having the effect of increasing Availability,
without the written consent of the Required Lenders and the Required Revolving
Lenders (each voting as a separate class); 

         
(F) change (1) any of the provisions of this Section, (2) the definitions of
“Required Lenders”, “Required Revolving Lenders” or any other provision of any
Loan Document specifying the number or percentage of Lenders (or Lenders of any
Class) required to waive, amend or modify any rights thereunder or make any
determination or grant any consent thereunder, or (3) the definition of “Change
in Control”, in each case without the written consent of each Lender and Voting
Participant; 

         
(G) release any Loan Guarantor from its obligation under any Loan Guaranty to
which it is a party (except as otherwise permitted herein, including without
limitation pursuant to Sections
6.03 and 6.05, or in the other Loan Documents),
without the written consent of each Lender and Voting Participant; 

         
(H) except as provided in paragraph
(c) of this Section or in any Collateral
Document, release all or substantially all of the Collateral, without the
written consent of each Lender and Voting Participant;

         
(I) reduce the amount of, or extend the payment date for, any required
mandatory prepayments pursuant to Section
2.12 (other than required mandatory
prepayments of the Excess Cash Flow pursuant to Section 2.12(d), without the written
consent of the Required Lenders; or

         
(J) reduce the amount of, or extend the payment date for, any required
mandatory prepayments of Excess Cash Flow pursuant to Section 2.12(d), without the written
consent of each Lender and Voting Participant; 

provided, further, that (i) no such agreement shall amend, modify or otherwise affect the
rights or duties of any Agent, the Swingline Lender or any Issuing Bank
hereunder without the prior written consent of such Agent, the Swingline Lender
or such Issuing Bank, as applicable; (ii) amendments pursuant to Section 2.10(d) shall be
effective as described therein; and (iii) when a Defaulting Lender shall exist,
Section 2.21 shall control with respect to voting of such Lender or Voting
Participant that is a Defaulting Lender. The Administrative Agent may also amend
the Commitment Schedule to reflect assignments entered into pursuant to
Section 9.04.

135 

          (c) The Lender Parties hereby irrevocably authorize the
Administrative Agent, at its option and in its sole discretion, to release any
Liens granted to the Administrative Agent by the Loan Parties on any Collateral
(i) upon the termination of all Commitments, payment and satisfaction in full in
cash of all Secured Obligations (other than Unliquidated Obligations), and the
cash collateralization of all Unliquidated Obligations in a manner satisfactory
to each affected Lender Party; (ii) constituting property being sold or disposed
of if the Loan Party disposing of such
property certifies to the Administrative Agent that the sale or disposition is
made in compliance with the terms of this Agreement (and the Administrative
Agent may rely conclusively on any such certificate, without further inquiry),
and to the extent that the property being sold or disposed of constitutes 100%
of the Equity Interests of a Subsidiary, the Administrative Agent is authorized
to release any Loan Guaranty provided by such Subsidiary; (iii) constituting
property leased to a Loan Party under a lease which has expired or been
terminated in a transaction permitted under this Agreement; (iv) as required to
effect any sale or other disposition of such Collateral in connection with any
exercise of remedies of the Administrative Agent and the Lenders pursuant to
Article VII; (v) as provided in the Collateral Documents; or (vi) to the extent
required under Section 5.13(b). Except as provided in the preceding sentence,
the Administrative Agent will not release any Liens on Collateral without the
prior written authorization of the Required Lenders. Any such release shall not
in any manner discharge, affect, or impair the Obligations or any Liens (other
than those expressly being released) upon (or obligations of the Loan Parties in
respect of) all interests retained by the Loan Parties, including the proceeds
of any sale, all of which shall continue to constitute part of the Collateral.
Nothing in this paragraph shall relieve the Administrative Agent of any
obligations to release the Liens on any Collateral to the extent required under
any Loan Document if the Loan Parties have satisfied the conditions for such
release. 

         
(d) If, in connection with any proposed amendment, waiver or consent
requiring the consent of “each Lender” or “each Lender directly affected
thereby”, the consent of the Required Lenders is obtained, but the consent of
other necessary Lenders or Voting Participants is not obtained (any such Lender
or Voting Participant whose consent is necessary but not obtained being referred
to herein as a “Non-Consenting
Lender”), then the Borrowers may elect to
replace a Non-Consenting Lender as a Lender party to this Agreement or, with the
consent of the Required Lenders, terminate the Commitments of such Lender and
repay all non-contingent Obligations of the Borrowers owing to such Lender
relating to the Loans held by such Lender as of such termination date;
provided
that, concurrently with such replacement, (i) another bank or other entity which
is reasonably satisfactory to the Borrowers and the Administrative Agent shall
agree, as of such date, to purchase for cash the Loans and other Obligations due
to the Non-Consenting Lender pursuant to an Assignment and Assumption and to
become a Lender for all purposes under this Agreement and to assume all
obligations of the Non-Consenting Lender to be terminated as of such date and to
comply with the requirements of paragraph
(b) of Section 9.04, and (ii) the Borrowers
shall pay to such Non-Consenting Lender in same day funds on the day of such
replacement (1) all interest, fees and other amounts then accrued but unpaid to
such Non-Consenting Lender by the Borrowers hereunder to and including the date
of termination, including without limitation payments due to such Non-Consenting
Lender under Sections 2.16 and 2.18, and (2) an amount, if any, equal to the payment which would
have been due to such Lender or Voting Participant on the day of such
replacement under Section
2.17(a) had the Loans of such Non-Consenting
Lender been prepaid on such date rather than sold to the replacement Lender.

136 

          SECTION
9.03. Expenses; Indemnity; Damage Waiver.
(a) Except as provided in Section
2.23, the Borrowers shall pay (i) all
reasonable and documented out-of-pocket expenses incurred by the Administrative
Agent, the Joint Lead Arrangers and their respective Affiliates, including the
reasonable and documented out-of-pocket fees, charges and disbursements of a single New York
legal counsel for the Administrative Agent and the Joint Lead Arrangers and
their respective Affiliates, and one local counsel in each jurisdiction that the
Administrative Agent may deem appropriate in its good faith discretion, in
connection with the syndication and distribution (including via the internet or
through a service such as Intralinks) of the credit facilities provided for
herein, the preparation and administration of the Loan Documents or any
amendments, modifications or waivers of the provisions of the Loan Documents
(whether or not the transactions contemplated hereby or thereby shall be
consummated); (ii) all reasonable and documented out-of-pocket expenses
(limited, in the case of attorneys’ fees, to the reasonable and documented
out-of-pocket fees, charges and disbursements of one outside counsel) incurred
by the applicable Issuing Bank in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment
thereunder; and (iii) all reasonable and documented out-of-pocket expenses
incurred by the Administrative Agent, any Issuing Bank or any Lender, including
the fees, charges and disbursements of a single general legal counsel to
collectively represent the Administrative Agent, the Lenders, the Joint Lead
Arrangers and their respective Affiliates, and of a single local legal counsel
to collectively represent the Administrative Agent, the Lenders, the Joint Lead
Arrangers and their respective Affiliates in each jurisdiction that the
Administrative Agent may deem appropriate in its good faith discretion, in
connection with the enforcement, collection or protection of its rights in
connection with the Loan Documents, including its rights under this Section, or
in connection with the Loans made or Letters of Credit issued hereunder,
including all such reasonable and documented out-of pocket expenses incurred in
connection with any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit. Reasonable and documented out-of-pocket expenses
being reimbursed by the Borrowers under this Section include, without limiting
the generality of the foregoing, costs and expenses incurred in connection with:

(A) subject to Section 5.11, appraisals
and insurance reviews; 

(B) subject to Section 5.12, field
examinations and the preparation of Reports based on the fees charged by a third
party retained by the Collateral Agent; 

(C) background checks regarding senior
management and/or key investors, as deemed necessary or appropriate in the sole
discretion of the Administrative Agent; 

(D) taxes, fees and other charges, if
any, for (1) Lien and title searches and title insurance and (2) recording the
Mortgages, filing financing statements and continuations, and other actions to
perfect, protect, and continue the Administrative Agent’s Liens; 

(E) sums paid or incurred to take any
action required of any Loan Party under the Loan Documents that such Loan Party
fails to pay or take (other than items being contested in good faith or Taxes
being contested or not paid in compliance with Section 5.04); and 

(F) forwarding loan proceeds,
collecting checks and other items of payment, and establishing and maintaining
the accounts and lock boxes, and costs and expenses of preserving and protecting
the Collateral. 

137 

          (b) Except as provided in Section
2.23, the Borrowers shall, jointly and
severally, indemnify each Lender Party and Related Party thereof (each such
Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, penalties,
incremental taxes, liabilities and related expenses (including the reasonable
and documented out-of-pocket fees, charges and disbursements of one general
legal counsel for all of the Indemnitees, taken as a whole, one local legal
counsel for all of the Indemnitees, taken as a whole, in each jurisdiction that
the Administrative Agent may deem appropriate in its good faith discretion, and,
solely in the case of a conflict of interest, one additional legal counsel for
all of the Indemnitees, taken as a whole) (collectively, a “Loss”) incurred by or
asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of the Loan Documents or any agreement
or instrument contemplated thereby, the performance by the parties hereto of
their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated hereby; (ii) any Loan or Letter of Credit
or the use of the proceeds therefrom (including any refusal by an Issuing Bank
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit); (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower or
any of the Subsidiaries, or any Environmental Liability related in any way to
any Borrower or any of the Subsidiaries; (iv) the failure of the Borrowers to
deliver to the Administrative Agent the required receipts or other required
documentary evidence with respect to a payment made by the Borrowers for Taxes
pursuant to Section 2.18; or (v) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any particular
Indemnitee, be available to the extent that such losses, claims, damages,
penalties, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnitee. 

         
(c) To the
extent that the Borrowers fail to pay any amount required to be paid by them to
the Administrative Agent, the Collateral Agent, an Issuing Bank or the Swingline
Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent, such Issuing Bank or the Swingline Lender, as the case may
be, such Lender’s Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim, damage,
penalty, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent, such Issuing Bank or the Swingline
Lender in its capacity as such. 

         
(d) To the
extent permitted by Requirements of Law, no Loan Party shall assert, and each
hereby waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof. 

138 

          (e) All amounts due under this Section shall be payable not later than 10
Business Days after written demand therefor, which demand shall set forth the
basis for such claim in reasonable detail. 

          SECTION
9.04. Successors and Assigns. (a) The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of an Issuing Bank that issues any Letter of Credit),
except that (i) no Borrower may assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of each Lender and
Voting Participant (and any attempted assignment or transfer by a Borrower
without such consent shall be null and void) and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance with
this Section. Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby (including any Affiliate of
an Issuing Bank that issues any Letter of Credit), Participants (to the extent
provided in paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Agents, the Issuing Banks and the
Lender Parties) any legal or equitable right, remedy or claim under or by reason
of this Agreement. 

         
(b) (i)
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans at the time owing to it) with the prior written consent (such
consent not to be unreasonably withheld) of: 

         
(A) the
Borrower Representative; provided that no consent of the
Borrower Representative shall be required for an assignment to a Lender, an
Affiliate of a Lender, any other Person under common control with such Lender,
an Approved Fund or, if an Event of Default has occurred and is continuing, any
other assignee; 

         
(B) the
Administrative Agent; provided that no consent of the Administrative Agent shall be required
for an assignment to a Lender, an Affiliate of a Lender, any other Person under
common control with such Lender or an Approved Fund; and 

         
(C) in the
case of an assignment of Revolving Commitments or Revolving Loans, the Issuing
Banks and the Swingline Lender. 

         
(ii) Assignments shall be subject to the following additional conditions:

         
(A) except
in the case of an assignment to a Lender, an Affiliate of a Lender or any other
Person under common control with such Lender, or an assignment of the entire
remaining amount of the assigning Lender’s Commitment or Loans of any Class, the
amount of the Commitment or Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent) shall not be less
than $5,000,000 unless each of the Borrower Representative and the
Administrative Agent otherwise consent; provided that no such
consent of the Borrower Representative shall be required if an Event of Default
has occurred and is continuing; 

139 

         
(B) each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement;
provided
that this paragraph shall not be construed to prohibit the assignment of a
proportionate part of all the assigning Lender’s rights and obligations in
respect of one Class of Commitments or Loans; 

         
(C) no
assignment shall be made to (1) the Company, the Parent Entity or any of their
respective Affiliates or Subsidiaries or (2) any natural Person; 

         
(D) the
parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Assumption, together with, in each case other than an
assignment by a Lender to any of its Affiliates or any other Person under common
control with such Lender, a processing and recordation fee of $3,500; and

         
(E) the
assignee, if it shall not be a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire in which the assignee designates one or more
credit contacts to whom all syndicate-level information (which may contain
material non-public information about the Company, the Loan Parties and their
Related Parties or their respective securities) will be made available and who
may receive such information in accordance with the assignee’s compliance
procedures and Requirements of Law, including Federal and state securities laws.

         
(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(v) of this
Section, from and after the effective date specified in each Assignment and
Assumption the assignee thereunder shall be a party hereto and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of
Sections 2.16, 2.17(a), 2.18 and 9.03). Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 9.04 shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (c) of this Section.

          (iv) The Administrative Agent, acting for this purpose as an agent of the
Borrowers and the Lender Parties, shall maintain at one of its offices a copy of
each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, absent manifest error, and the Borrowers, the
Administrative Agent, the other Agents, the Issuing Banks and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available
for inspection by the Borrowers, the Agents, any Issuing Bank and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

140 

          (v) Upon its receipt of a duly completed Assignment and Assumption executed
by an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and any
written consent to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register; provided that if either the assigning
Lender or the assignee shall have failed to make any payment required to be made
by it pursuant to Section 2.04, 2.05, 2.06(d) or (e), 2.07(b), 2.19(c) or 9.03(c), the Administrative Agent shall have no obligation to accept
such Assignment and Assumption and record the information therein in the
Register unless and until such payment shall have been made in full, together
with all accrued interest thereon. No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

         
(c) (i)
Subject to Section 9.04(f), any Lender may, without the consent of the Borrowers, the
Administrative Agent or any other Lender Party, sell participations to one or
more banks or other entities (a “Participant”) in all or a portion of
such Lender’s rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged; (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations; and (C) the Borrowers, the Administrative Agent and the other
Lender Parties shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b) that
requires the vote of (1) all the Lenders or (2) each directly affected Lender,
to the extent that such Lender is directly affected by any such amendment,
modification or waiver and such Participant holds a participation in such
Lender’s obligations under this Agreement. Subject to paragraph (c)(ii) of this Section, the
Borrowers agree that each Participant shall be entitled to the benefits of
Sections 2.16,
2.17(a) and
2.18 to the
same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. To the extent permitted by Requirements of
Law, each Participant also shall be entitled to the benefits of Section 9.08 as though it
were a Lender; provided that such Participant agrees to be subject to Section 2.19(c) as though
it were a Lender. 

         
(ii) A
Participant shall not be entitled to receive any greater payment under
Section 2.16 or 2.18 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower Representative’s
prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 2.18 unless the Borrower
Representative is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of the
Borrowers, to comply with Section
2.18(e) as though it were a Lender.

141 

          (d) Each Lender that sells a participating interest in any Loan, Commitment
or other interest to a Participant shall, as agent of the Borrower solely for
the purpose of this Section
9.04(d), record in book entries maintained by
such Lender the name and the amount of the participating interest of each
Participant entitled to receive payments in respect of such participating
interests; provided that such Lender shall have no obligation to show such book entries to
any Loan Party. 

         
(e) Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender,
including without limitation any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto. 

         
(f) Notwithstanding anything in this Section 9.04 to the contrary, any Farm
Credit System Institution that (i) is the owner of a participation in any
Commitment (including any Loans outstanding thereunder) initially in the amount
of at least $10,000,000; (ii) is, by written notice to the Borrowers and the
Administrative Agent (a “Voting
Participant Notification”), designated by the
selling Lender as being entitled to be accorded the rights of a voting
participant hereunder (any Farm Credit System Institution so designated, a
“Voting Participant”); and (iii) receives the prior written consent of the Borrower
Representative (such consent of the Borrower Representative not to be
unreasonably withheld or delayed and not to be required if any Event of Default
has occurred and is continuing) and the Administrative Agent to become a Voting
Participant, shall be entitled to vote for so long as such Farm Credit System
Institution owns such participation and notwithstanding any subparticipation by
such Farm Credit System Institution (and the voting rights of the selling Lender
shall be correspondingly reduced, on a dollar for dollar basis), as if such
Voting Participant were a Lender, on any matter requiring or allowing a Lender
to provide or withhold its consent, or to otherwise vote on any proposed action.
To be effective, each Voting Participant Notification shall, with respect to any
Voting Participant, (A) state the full name, as well as all contact information
required for an assignee in the Assignment and Assumption; and (B) state the
dollar amount of the participation purchased. The selling Lender and the Voting
Participant shall notify the Administrative Agent and the Borrower
Representative within three Business Days of any termination of, reduction or
increase in the amount of, such participation. The Borrowers and the
Administrative Agent shall be entitled to conclusively rely on information
contained in notices delivered pursuant to this paragraph (f). The voting rights
hereunder are solely for the benefit of the Voting Participants and shall not
inure to any assignee or participant of a Voting Participant. 

         
(g) The
Borrowers acknowledge and agree that CoBank, FCB and the Farm Credit System
Institutions identified on Exhibit
N (collectively, the “Initial Farm Credit Participants”) have entered into certain participation agreements, whereby a certain
percentage of CoBank FCB’s Commitment and the Loans outstanding from time to
time have been participated to the Initial Farm Credit Participants according to
the term of such agreements. The Borrowers and the
Administrative Agent hereby consent to the Initial Farm Credit Participants
becoming Voting Participants in accordance with Section 9.04(f), and acknowledge that
the inclusion of this Section
9.04(g) constitutes receipt of the Voting
Participant Notifications with respect to the Initial Farm Credit Participants
as required by Section 9.04(f). 

142 

          SECTION 9.05. Survival. All covenants,
agreements, representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Administrative Agent or any other Lender Party may have had notice or knowledge
of any Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not expired or terminated.
The provisions of Sections
2.16, 2.17(a), 2.18, 9.03, 9.09 and 9.10 and Article VIII shall survive and remain
in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof. The provisions of Section 9.12 shall survive
and remain in full force and effect for a period of 18 months following the
termination of this Agreement. 

          SECTION
9.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract. This Agreement, the other Loan Documents and any separate letter
agreements with respect to fees payable to the Administrative Agent constitute
the entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01, this
Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by
facsimile or PDF transmission shall be effective as delivery of a manually
executed counterpart of this Agreement. 

          SECTION
9.07. Severability. Any provision of any
Loan Document held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions thereof; and the invalidity of a
particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction. 

          SECTION
9.08. Right of
Setoff. If an Event of Default shall have
occurred and be continuing, each Lender Party and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time
held and other obligations at any time owing by such Lender Party or Affiliate
to or for the credit or the account of the Borrowers or any Loan Guarantor
against any of and all the Secured Obligations held by such Lender Party,
irrespective of whether or not such Lender Party shall have made any demand
under the Loan Documents and although such obligations may be unmatured. The
applicable Lender Party shall notify the Borrower Representative and the
Administrative Agent of such set-off or application; provided that any failure to give or
any delay in giving such notice shall not affect the validity of any such
set-off or application under this Section. The rights of each Lender Party under
this Section are in addition to other rights and remedies (including other
rights of setoff) which such Lender Party may have.

143 

          SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of
Process. (a) The Loan Documents (other than
those containing a contrary express choice of law provision) shall be governed
by and construed in accordance with the laws of the State of New York, without
regard to the conflict of laws principles thereof, but giving effect to Federal
laws applicable to national banks. 

         
(b) Each
party hereto irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of any U.S. Federal or New York State
court sitting in the Borough of Manhattan, State of New York, in any action or
proceeding arising out of or relating to any Loan Documents, or for recognition
or enforcement of any judgment, and each of the parties hereto hereby
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such courts. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Notwithstanding the foregoing,
nothing in this Agreement or any other Loan Document shall affect any right that
the Administrative Agent or any other Lender Party may otherwise have to bring
any action or proceeding in the courts of any jurisdiction, to the extent that
such action or proceeding relates to the enforcement of rights with respect to
the Collateral. 

         
(c) Each
party hereto irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any court referred to
in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court. 

         
(d) Each
party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section
9.01. Nothing in this Agreement or any other
Loan Document will affect the right of any party to this Agreement to serve
process in any other manner permitted by law. 

          SECTION
9.10. WAIVER OF
JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

144 

          SECTION 9.11. Headings. Article and
Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION
9.12. Confidentiality. Each of the Lender
Parties agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its and its Affiliates’
directors, officers, employees and agents, including accountants, legal counsel
and other advisors, in each case on a confidential basis (it being understood
that the disclosing Lender Party shall be responsible for the foregoing persons’
compliance with this paragraph); (b) to the extent requested by any bank or
other regulatory authority having jurisdiction (including any self-regulatory
organization having or claiming to have jurisdiction) or oversight; (c) to the
extent required by Requirements of Law or by any subpoena or similar legal
process (it being understood that the applicable Lender Party, to the extent
permitted by Requirements of Law, shall inform the Borrower Representative
reasonably promptly thereof and provide the Borrower Representative a reasonable
opportunity to apply for and obtain a court order to protect the confidentiality
of the relevant information); (d) to any other party to this Agreement; (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder; (f) subject to an agreement
containing provisions the same as, or substantially similar to, those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement,
(ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Loan Parties and their obligations or
(iii) any insurer of risks hereunder (and any such Person may disclose such
Information to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will agree to be
bound by confidentiality obligations that are the same as, or substantially
similar to, the terms set forth in this Section)); (g) with the written consent
of the Borrower Representative; (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii)
becomes available to any Lender Party on a non-confidential basis from a source
other than the Borrowers or their representatives which is not known by any such
Person to be under a duty of confidentiality with respect to the Information;
(i) the National Association of Insurance Commissioners or its Securities
Valuation Office or, in each case, any similar organization or nationally
recognized rating agency that requires access to information about such Lender
Party’s investment portfolio for purposes of rating such investment portfolio,
in each case with a request for confidentiality (it being understood that any
such organization or rating agency may elect not to agree with any such request,
in which case the disclosing Lender Party shall incur no obligation or liability
if such organization or rating agency does not maintain the confidentiality
of such Information); or (j) subject to clause (d), in connection
with a legal action related to this Agreement (it being understood that the
applicable Lender Party, to the extent permitted by Requirements of Law, shall
inform the Borrower Representative reasonably promptly thereof and provide the
Borrower Representative a reasonable opportunity to apply for and obtain a court
order to protect the confidentiality of the relevant information). For the
purposes of this Section, “Information” means all confidential,
proprietary and non-public information received from the Borrowers relating to
the Borrowers or their business, other than any such information that is
available to any Lender Party on a non-confidential basis prior to disclosure by
the Borrowers. Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information. 

145 

          EACH LENDER PARTY ACKNOWLEDGES THAT INFORMATION AS DEFINED
IN SECTION 9.12 FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE
MATERIAL NON-PUBLIC INFORMATION CONCERNING THE COMPANY AND ITS AFFILIATES AND
THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS
DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC
INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN
ACCORDANCE WITH THOSE PROCEDURES AND REQUIREMENTS OF LAW, INCLUDING FEDERAL AND
STATE SECURITIES LAWS. 

          ALL
INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE
BORROWERS OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF
ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY
CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE COMPANY, THE LOAN PARTIES AND
THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH LENDER
PARTY HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO
MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN
ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND REQUIREMENTS OF LAW, INCLUDING
FEDERAL AND STATE SECURITIES LAWS. 

          SECTION
9.13. Several
Obligations; Nonreliance; Violation of Law.
The respective obligations of the Lenders hereunder are several and not joint
and the failure of any Lender to make any Loan or perform any of its obligations
hereunder shall not relieve any other Lender from any of its obligations
hereunder. Anything contained in this Agreement to the contrary notwithstanding,
neither any Issuing Bank nor any Lender shall be obligated to extend credit to
the Borrowers in violation of any Requirement of Law. 

          SECTION
9.14. Patriot
Act. Each Lender Party that is subject to the
requirements of the Patriot Act hereby notifies the Borrowers that pursuant to
the requirements of the Patriot Act, it is required to obtain, verify and record
information that identifies the Borrowers, which information includes the names
and addresses of the Borrowers and other information
that will allow such Lender Party to identify the Borrowers in accordance with
the Patriot Act. 

146 

          SECTION 9.15. Disclosure. Each Loan Party
and each Lender Party hereby acknowledges and agrees that the Administrative
Agent and/or its Affiliates from time to time may hold investments in, make
other loans to or have other relationships with any of the Loan Parties and
their respective Affiliates.

          SECTION
9.16. Appointment for Perfection. Each
Lender Party hereby appoints each other Lender Party as its agent for the
purpose of perfecting Liens, for the benefit of the Lender Parties, in assets
which, in accordance with Article 9 of the UCC or any other Requirement of Law
can be perfected only by possession. Should any Lender Party (other than the
Administrative Agent) obtain possession of any such Collateral, such Lender
Party shall notify the Administrative Agent thereof, and, promptly upon the
Administrative Agent’s request therefor shall deliver such Collateral to the
Administrative Agent or otherwise deal with such Collateral in accordance with
the Administrative Agent’s instructions. 

          SECTION
9.17. Interest
Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under Requirements of Law (collectively, the “Charges”), shall exceed the
maximum lawful rate (the “Maximum
Rate”) which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
Requirements of Law, the rate of interest payable in respect of such Loan
hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount,
together with interest thereon at the Federal Funds Effective Rate to the date
of repayment, shall have been received by such Lender. 

          SECTION
9.18. WAIVERS OF
FARM CREDIT RIGHTS. THE BORROWERS ACKNOWLEDGE AND AGREE THAT, TOGETHER WITH
THEIR LEGAL COUNSEL, THEY HAVE REVIEWED ALL RIGHTS THAT THEY MAY OTHERWISE BE
ENTITLED TO WITH RESPECT TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS UNDER
THE SECTIONS OF THE AGRICULTURAL CREDIT ACT OF 1987 DESIGNATED AS 12 U.S.C.
SECTIONS 2199 THROUGH 2202E AND THE IMPLEMENTING FARM CREDIT ADMINISTRATION
REGULATIONS AS SET FORTH IN 12 C.F.R. SECTIONS 617.7000 THROUGH 617.7630
(INCLUDING THOSE PROVISIONS WHICH AFFORD THE BORROWERS CERTAIN RIGHTS AND IMPOSE
ON THE LENDER PARTIES CERTAIN DUTIES WITH RESPECT TO THE COLLECTION OF ANY
AMOUNTS OWING HEREUNDER OR THE FORECLOSURE OF THE SECURITY INTEREST OF THE
ADMINISTRATIVE AGENT ON THE COLLATERAL, OR WHICH REQUIRE THE ADMINISTRATIVE
AGENT OR ANY OTHER LENDER PARTY TO DISCLOSE TO THE BORROWERS THE NATURE OF ANY
SUCH RIGHTS OR DUTIES), AND THAT THEY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND
IRREVOCABLY WAIVE ANY AND ALL SUCH RIGHTS. NOTHING CONTAINED IN THIS SECTION NOR THE DELIVERY TO THE BORROWERS OF ANY SUMMARY OF ANY
RIGHTS UNDER, OR ANY NOTICE PURSUANT TO, THE AGRICULTURAL CREDIT ACT OF 1987
SHALL IN ANY WAY BE DEEMED TO BE, OR BE CONSTRUED TO IN ANY WAY INDICATE, THE
DETERMINATION OR AGREEMENT BY THE BORROWERS, THE ADMINISTRATIVE AGENT OR ANY
OTHER LENDER PARTY THAT THE AGRICULTURAL CREDIT ACT OF 1987, OR ANY RIGHTS
THEREUNDER, ARE OR WILL IN FACT BE APPLICABLE TO THE BORROWERS, THE LOANS OR THE
LOAN DOCUMENTS. 

147 

          SECTION 9.19. Bank Equity Interests. The
Borrowers agree to purchase Equity Interests (“Bank Equity Interests”) in CoBank as
CoBank may from time to time require in accordance with its bylaws and capital
plan and that are applicable to borrowers generally. In connection with the
foregoing, the Borrower hereby acknowledges receipt, prior to the execution of
this Credit Agreement, of the following with respect to CoBank: (a) its bylaws;
(b) a written description of the terms and conditions under which CoBank’s Bank
Equity Interests are issued; (c) the most recent annual financial report, and if
more recent than the latest annual report, the latest quarterly financial report
of CoBank. In addition, the Borrowers agree to purchase Bank Equity Interests in
any Farm Credit System Institution which is a Lender, as such Farm Credit System
Institution may from time to time require in accordance with its bylaws and
capital plans and that are applicable to borrowers generally. CoBank and each
Farm Credit System Institution that is a Lender may from time to time, in its
discretion reserve, sell participations under this Section on a patronage
released or on a non-patronage basis. 

          SECTION
9.20. Amendment
and Restatement of Prior Credit Agreement. On
the Effective Date, the Prior Credit Agreement shall be amended and restated in
its entirety pursuant to the terms of this Agreement. The parties hereto
acknowledge and agree that this Agreement and the other Loan Documents do not
constitute a novation or termination of the “Obligations” (as defined in the
Prior Credit Agreement) that are outstanding immediately prior to the Effective
Date. 

ARTICLE X 

U.S. GUARANTY 

    
SECTION 10.01. Guaranty. Each U.S. Loan Guarantor
(other than those that have delivered a separate Guaranty) hereby agrees that it
is jointly and severally liable for, and, as primary obligor and not merely as
surety, absolutely and unconditionally guarantees to the Lender Parties the
prompt payment when due, whether at stated maturity, upon acceleration or
otherwise, and at all times thereafter, of the Secured Obligations and all
costs, expenses and other amounts that are required to be paid by the Borrowers
pursuant to Section 9.03 or any similar provision in any other Loan Document (such
costs and expenses, together with the Secured Obligations, collectively the
“Guaranteed Obligations”). Each U.S. Loan Guarantor further agrees that the
Guaranteed Obligations may be extended or renewed in whole or in part without
notice to or further assent from it, and that it remains bound upon its
guarantee notwithstanding any such extension or renewal. All terms of this U.S.
Guaranty apply to and may be enforced by or on behalf of any domestic or foreign
branch or Affiliate of any Lender Party that extended any portion of the
Guaranteed Obligations. 

148 

          SECTION 10.02. Guaranty of Payment. This
U.S. Guaranty is a guaranty of payment and not of collection. Each U.S. Loan
Guarantor waives any right to require any Lender Party to sue any Borrower, any
other U.S. Loan Guarantor, any other guarantor or any other Person obligated for
all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to
enforce its payment against any collateral securing all or any part of the
Guaranteed Obligations. 

          SECTION
10.03. No
Discharge or Diminishment of U.S. Guaranty.
(a) Except as otherwise provided for herein, the obligations of each U.S. Loan
Guarantor hereunder are unconditional and absolute and not subject to any
reduction, limitation, impairment or termination for any reason (other than the
payment in full in cash of the Guaranteed Obligations), including: (i) any claim
of waiver, release, extension, renewal, settlement, surrender, alteration, or
compromise of any of the Guaranteed Obligations, by operation of law or
otherwise; (ii) any change in the corporate existence, structure or ownership of
any Borrower or any other guarantor of or other Person liable for any of the
Guaranteed Obligations; (iii) any insolvency, bankruptcy, reorganization or
other similar proceeding affecting any Obligated Party, or their assets or any
resulting release or discharge of any obligation of any Obligated Party; (iv)
the existence of any claim, setoff or other rights which any U.S. Loan Guarantor
may have at any time against any Obligated Party, any Lender Party, or any other
Person, whether in connection herewith or in any unrelated transactions; or (v)
any law or regulation of any jurisdiction or any other event affecting any term
of a guaranteed obligation. 

         
(b) The
obligations of each U.S. Loan Guarantor hereunder are not subject to any defense
or setoff, counterclaim, recoupment, or termination whatsoever by reason of the
invalidity, illegality, or unenforceability of any of the Guaranteed Obligations
or otherwise, or any Requirement of Law or regulation purporting to prohibit
payment by any Obligated Party, of the Guaranteed Obligations or any part
thereof. 

         
(c) Further, the obligations of any U.S. Loan Guarantor hereunder are not
discharged or impaired or otherwise affected by: (i) the failure of any Lender
Party to assert any claim or demand or to enforce any remedy with respect to all
or any part of the Guaranteed Obligations; (ii) any waiver or modification of or
supplement to any provision of any agreement relating to the Guaranteed
Obligations; (iii) any release, non-perfection, or invalidity of any indirect or
direct security for the obligations of any Borrower for all or any part of the
Guaranteed Obligations or any obligations of any other guarantor of or other
Person liable for any of the Guaranteed Obligations; (iv) any action or failure
to act by any Lender Party with respect to any collateral securing any part of
the Guaranteed Obligations; or (v) any default, failure or delay, willful or
otherwise, in the payment or performance of any of the Guaranteed Obligations,
or any other circumstance, act, omission or delay that might in any manner or to
any extent vary the risk of such U.S. Loan Guarantor or that would otherwise
operate as a discharge of any U.S. Loan Guarantor as a matter of law or equity
(other than the payment in full in cash of the Guaranteed Obligations).

149 

          SECTION 10.04. Defenses Waived. To the fullest extent permitted by Requirements of Law, each
U.S. Loan Guarantor hereby waives any defense based on or arising out of any
defense of any Borrower or any U.S. Loan Guarantor or the unenforceability of
all or any part of the Guaranteed Obligations from any cause, or the cessation
from any cause of the liability of any Borrower or any U.S. Loan
Guarantor, other than the payment in full in cash of the Guaranteed Obligations. Without
limiting the generality of the foregoing, each U.S. Loan Guarantor irrevocably
waives acceptance hereof, presentment, demand, protest and, to the fullest
extent permitted by law, any notice not provided for herein, as well as any
requirement that at any time any action be taken by any Person against any
Obligated Party, or any other Person. The Administrative Agent may, at its
election, following the occurrence and during the continuance of an Event of
Default, foreclose on any Collateral held by it by one or more judicial or
nonjudicial sales, accept an assignment of any such Collateral in lieu of
foreclosure or otherwise act or fail to act with respect to any collateral
securing all or a part of the Guaranteed Obligations, compromise or adjust any
part of the Guaranteed Obligations, make any other accommodation with any
Obligated Party or exercise any other right or remedy available to it against
any Obligated Party, without affecting or impairing in any way the liability of
such U.S. Loan Guarantor under this U.S. Guaranty except to the extent the
Guaranteed Obligations have been fully paid in cash. To the fullest extent
permitted by Requirements of Law, each U.S. Loan Guarantor waives any defense
arising out of any such election even though that election may operate, pursuant
to Requirements of Law, to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of any U.S. Loan Guarantor against any
Obligated Party or any security. 

          SECTION
10.05. Rights
of Subrogation. No U.S. Loan Guarantor will
assert any right, claim or cause of action, including, without limitation, a
claim of subrogation, contribution or indemnification that it has against any
Obligated Party, or any Collateral, until the Loan Parties and the U.S. Loan
Guarantors have fully performed all their obligations to the Lender Parties and
no Obligation is outstanding. 

          SECTION
10.06. Reinstatement; Stay of Acceleration.
If at any time any payment of any portion of the Guaranteed Obligations is
rescinded or must otherwise be restored or returned upon the insolvency,
bankruptcy, or reorganization of any Borrower or otherwise, each U.S. Loan
Guarantor’s obligations under this U.S. Guaranty with respect to that payment
shall be reinstated at such time as though the payment had not been made and
whether or not the Lender Parties are in possession of this U.S. Guaranty. If
acceleration of the time for payment of any of the Guaranteed Obligations is
stayed upon the insolvency, bankruptcy or reorganization of any Borrower, all
such amounts otherwise subject to acceleration under the terms of any agreement
relating to the Guaranteed Obligations shall nonetheless be payable by the U.S.
Loan Guarantors forthwith on demand by the Lender Parties. 

          SECTION
10.07. Information. Each U.S. Loan Guarantor
assumes all responsibility for being and keeping itself informed of the
Borrowers’ financial condition and assets, and of all other circumstances
bearing upon the risk of nonpayment of the Guaranteed Obligations and the
nature, scope and extent of the risks that each U.S. Loan Guarantor assumes and
incurs under this U.S. Guaranty, and agrees that no Lender Party shall have any
duty to advise any U.S. Loan Guarantor of information known to it regarding
those circumstances or risks. 

          SECTION
10.08. Taxes. All payments of the Guaranteed
Obligations will be made by each U.S. Loan Guarantor free and clear of and
without deduction or withholding for any Indemnified Taxes or Other Taxes;
provided
that if any U.S. Loan Guarantor shall be required to
deduct or withhold any Indemnified Taxes or Other Taxes from such payments, then
(a) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section) each applicable Lender Party receives an amount equal to the
sum it would have received had no such deductions been made, (b) such U.S. Loan
Guarantor shall make such deductions and (iii) such U.S. Loan Guarantor shall
pay the full amount deducted to the relevant Governmental Authority in
accordance with Requirements of Law. 

150 

          SECTION 10.09. Maximum Liability. The
provisions of this U.S. Guaranty are severable, and in any action or proceeding
involving any state corporate law, or any state, Federal or foreign bankruptcy,
insolvency, reorganization or other law affecting the rights of creditors
generally, if the obligations of any U.S. Loan Guarantor under this U.S.
Guaranty would otherwise be held or determined to be avoidable, invalid or
unenforceable on account of the amount of such U.S. Loan Guarantor’s liability
under this U.S. Guaranty, then, notwithstanding any other provision of this U.S.
Guaranty to the contrary, the amount of such liability shall, without any
further action by the U.S. Loan Guarantors or the Lender Parties, be
automatically limited and reduced to the highest amount that is valid and
enforceable as determined in such action or proceeding (such highest amount
determined hereunder being the relevant U.S. Loan Guarantor’s “Maximum Liability”). This
Section with respect to the Maximum Liability of each U.S. Loan Guarantor is
intended solely to preserve the rights of the Lender Parties to the maximum
extent not subject to avoidance under Requirements of Law, and no U.S. Loan
Guarantor nor any other Person or entity shall have any right or claim under
this Section with respect to such Maximum Liability, except to the extent
necessary so that the obligations of any U.S. Loan Guarantor hereunder shall not
be rendered voidable under Requirements of Law. Each U.S. Loan Guarantor agrees
that the Guaranteed Obligations may at any time and from time to time exceed the
Maximum Liability of each U.S. Loan Guarantor without impairing this U.S.
Guaranty or affecting the rights and remedies of the Lender Parties hereunder;
provided
that nothing in this sentence shall be construed to increase any U.S. Loan
Guarantor’s obligations hereunder beyond its Maximum Liability. 

          SECTION
10.10. Contribution. In the event any U.S.
Loan Guarantor (a “Paying Guarantor”) shall make any payment or payments under this U.S. Guaranty
or shall suffer any loss as a result of any realization upon any Collateral
granted by it to secure its obligations under this U.S. Guaranty, each other
U.S. Loan Guarantor (each a “Non-Paying
Guarantor”) shall contribute to such Paying
Guarantor an amount equal to such Non-Paying Guarantor’s “Applicable Percentage”
of such payment or payments made, or losses suffered, by such Paying Guarantor.
For purposes of this Article X, each Non-Paying Guarantor’s “Applicable Percentage” with respect to any such
payment or loss by a Paying Guarantor shall be determined as of the date on
which such payment or loss was made by reference to the ratio of (a) such
Non-Paying Guarantor’s Maximum Liability as of such date (without giving effect
to any right to receive, or obligation to make, any contribution hereunder) or,
if such Non-Paying Guarantor’s Maximum Liability has not been determined, the
aggregate amount of all monies received by such Non-Paying Guarantor from the
Borrowers after the Effective Date (whether by loan, capital infusion or by
other means) to (b) the aggregate Maximum Liability of all U.S. Loan Guarantors
hereunder (including such Paying Guarantor) as of such date (without giving
effect to any right to receive, or obligation to make, any contribution
hereunder), or to the extent that a Maximum Liability has not been determined
for any U.S. Loan Guarantor, the aggregate amount of all
monies received by such U.S. Loan Guarantors from the Borrowers after the
Effective Date (whether by loan, capital infusion or by other means). Nothing in
this provision shall affect any U.S. Loan Guarantor’s several liability for the
entire amount of the Guaranteed Obligations (up to such U.S. Loan Guarantor’s
Maximum Liability). Each of the U.S. Loan Guarantors covenants and agrees that
its right to receive any contribution under this U.S. Guaranty from a Non-Paying
Guarantor shall be subordinate and junior in right of payment to the payment in
full in cash of the Guaranteed Obligations. This provision is for the benefit of
both the Lender Parties and the U.S. Loan Guarantors and may be enforced by any
one, or more, or all of them in accordance with the terms hereof.

151 

          SECTION 10.11. Liability Cumulative. The
liability of each U.S. Loan Party as a U.S. Loan Guarantor under this
Article X
is in addition to and shall be cumulative with all liabilities of each U.S. Loan
Party to the Lender Parties under this Agreement and the other Loan Documents to
which such U.S. Loan Party is a party or in respect of any obligations or
liabilities of the other U.S. Loan Parties, without any limitation as to amount,
unless the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary. 

          SECTION
10.12. Common
Enterprise. The successful operation and
condition of each of the Loan Parties is dependent on the continued successful
performance of the functions of the group of the Loan Parties as a whole and the
successful operation of each of the Loan Parties is dependent on the successful
performance and operation of each other Loan Party. Each Loan Party expects to
derive benefit (and its board of directors or other governing body has
determined that it may reasonably be expected to derive benefit), directly and
indirectly, from (a) the successful operations of each of the other Loan Parties
and (b) the credit extended by the Lenders to the Borrowers hereunder, both in
their separate capacities and as members of the group of companies. Each Loan
Party has determined that execution, delivery, and performance of this Agreement
and any other Loan Documents to be executed by such Loan Party is within its
purpose, will be of direct and indirect benefit to such Loan Party, and is in
its best interest. 

ARTICLE XI 

THE BORROWER REPRESENTATIVE 

          SECTION 11.01. Appointment; Nature of Relationship.
The Company is hereby appointed by each of the Borrowers as its contractual
representative (herein referred to as the “Borrower Representative”) hereunder
and under each other Loan Document, and each of the Borrowers irrevocably
authorizes the Borrower Representative to act as the contractual representative
of such Borrower with the rights and duties expressly set forth herein and in
the other Loan Documents. The Borrower Representative agrees to act as such
contractual representative upon the express conditions contained in this
Article XI.
Additionally, the Borrowers hereby appoint the Borrower Representative as their
agent to receive all of the proceeds of the Loans in the Funding Account(s), at
which time the Borrower Representative shall promptly disburse such Loans to the
appropriate Borrower. None of the Lender Parties or their respective officers,
directors, agents or employees shall be liable to the Borrower Representative or
any Borrower for any action taken or omitted to be taken by the Borrower
Representative or the Borrowers pursuant to this Section 11.01. 

152 

          SECTION 11.02. Powers. The Borrower
Representative shall have and may exercise such powers under the Loan Documents
as are specifically delegated to the Borrower Representative by the terms of
each thereof, together with such powers as are reasonably incidental thereto.
The Borrower Representative shall have no implied duties to the Borrowers, or
any obligation to the Lenders Parties to take any action thereunder except any
action specifically provided by the Loan Documents to be taken by the Borrower
Representative. 

          SECTION
11.03. Employment of Agents. The Borrower
Representative may execute any of its duties as the Borrower Representative
hereunder and under any other Loan Document by or through authorized officers.

          SECTION
11.04. Notices. Each Borrower shall
immediately notify the Borrower Representative of the occurrence of any Default
or Event of Default hereunder referring to this Agreement describing such
Default or Event of Default and stating that such notice is a “notice of
default”. In the event that the Borrower Representative receives such a notice,
the Borrower Representative shall give prompt notice thereof to the
Administrative Agent and the other Lender Parties. Any notice provided to the
Borrower Representative hereunder shall constitute notice to each Borrower on
the date received by the Borrower Representative. 

          SECTION
11.05. Successor Borrower Representative.
Upon prior notice to the Administrative Agent, the Borrower Representative may
resign at any time, such resignation to be effective upon the appointment of a
successor Borrower Representative. The Administrative Agent shall give prompt
written notice of such resignation to the Lender Parties. 

          SECTION
11.06. Execution of Loan Documents; Borrowing Base Certificate. The Borrowers hereby empower and authorize the Borrower
Representative, on behalf of the Borrowers, to execute and deliver to the Lender
Parties the Loan Documents and all related agreements, certificates, documents,
or instruments as shall be necessary or appropriate to effect the purposes of
the Loan Documents, including without limitation, the Borrowing Base
Certificates and the Compliance Certificates. Each Borrower agrees that any
action taken by the Borrower Representative or the Borrowers in accordance with
the terms of this Agreement or the other Loan Documents, and the exercise by the
Borrower Representative of its powers set forth therein or herein, together with
such other powers that are reasonably incidental thereto, shall be binding upon
all of the Borrowers. 

          SECTION
11.07. Reporting. Each Borrower hereby agrees
that such Borrower shall furnish promptly after each fiscal month (or such
shorter period for which Borrowing Base Certificates shall be required pursuant
to the terms hereof) to the Borrower Representative a copy of its Borrowing Base
Certificate and any other certificate or report required hereunder or requested
by the Borrower Representative on which the Borrower Representative shall rely
to prepare the Borrowing Base Certificates and Compliance Certificates required
pursuant to the provisions of this Agreement. 

          SECTION
11.08. Keepwell. To the fullest extent
permitted by applicable law, while any Guaranteed Obligations are outstanding
with respect to a transaction under a Secured Swap Agreement, each ECP Loan
Guarantor hereby jointly and severally absolutely and unconditionally
undertakes, for the benefit of each Supported Loan Guarantor and the holder(s)
of such Guaranteed Obligations, to provide such funds or
other support as may be needed from time to time to enable each Supported Loan
Guarantor to pay such Guaranteed Obligations with respect to such transaction
and to pay such funds to the holder of such Guaranteed Obligations upon the
demand of either the Supported Loan Guarantor or such holder. The Loan
Guarantors agree that this Section constitutes a “keepwell, support, or other
agreement” for the benefit of the Supported Loan Guarantors for purposes of
Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. 

153 

          IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written. 

		BORROWERS:
			 
		PILGRIM’S PRIDE CORPORATION
			 
			 
		By   	
			Name:
			Title:
			 
			 
	 	TO-RICOS, LTD.
			 
			 
		By	
			Name:
			Title:
			 
			 
		TO-RICOS DISTRIBUTION, LTD.
			 
			 
		By	
			Name:
			Title:

	   

 

 

 

 

 

 

 

credit
agreement
signature page

		OTHER LOAN PARTIES:
		 
	 	PILGRIM’S PRIDE CORPORATION
  OF
		WEST VIRGINIA, INC.
		 
	 	 	 
		By   	   
			Name:   	 	 
			Title:	 

 

 

 

 

 

 

 

 

credit
agreement
signature page

		COBANK, ACB, as Administrative Agent, Joint
		Syndication
      Agent, Joint Lead Arranger, Joint
		Bookrunner,
      Issuing Bank, Collateral Agent,
		Swingline Lender
      and Lender
		 	 
			 
			 
	 		 
		By   	 
			Name:   	 
			Title:	 
			 
			 
			 
		COBANK, FCB, as Issuing Bank, Swingline
		Lender and
      Lender
			 
			 
			 
			 
		By	 
			Name:	 
			Title:	 

 

 

 

 

 

 

 

 

credit agreement
signature
page

		COÖPERATIEVE CENTRALE RAIFFEISEN-
		BOERENLEENBANK B.A., “RABOBANK
		INTERNATIONAL”, NEW YORK BRANCH,
		as Lender, Joint
      Syndication Agent, Joint Lead
		Arranger and
      Joint Bookrunner
			 
		By   	
			Name:
			Title:
			 
		By 	
			Name:
			Title:

 

 

 

 

 

 

 

 

credit agreement
signature
page

		BANK OF MONTREAL, as Lender, Joint
		Syndication
      Agent, Joint Lead Arranger and Joint
		Bookrunner
			  
		By   	
			Name:
			Title:
			 
		BMO CAPITAL MARKETS, as Joint
	 	Syndication
      Agent, Joint Lead Arranger and Joint
		Bookrunner
			 
		By 	
			Name:
			Title:

 

 

 

 

 

 

 

 

credit agreement
signature
page

	ING CAPITAL LLC, as
      Lender, Joint Syndication
	Agent, Joint Lead Arranger and Joint
  Bookrunner
		 
	By  
      	
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	BARCLAYS BANK
      PLC, as Lender
		 
	By   	
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	BANK OF AMERICA,
      N.A., as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	THE BANK OF NOVA
      SCOTIA, as Lender
		 
	By   	
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	SOCIÉTÉ GÉNÉRALE,
      as Lender
		 
  
	By   	 
		Name:
		Title:
		 
  
	By   	
		Name:
		Title:
		 
		 
		 
	SOCIÉTÉ GÉNÉRALE
      AMERICAS
	SECURITIES, LLC, as Joint
      Documentation
	Agent
		 
  
	By   	 
		Name:
		Title:
		 
  
	By   	 
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	U.S. BANK
      NATIONAL ASSOCIATION, as
	Lender
		 
  
	By   	
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	WELLS FARGO BANK,
      NATIONAL
	ASSOCIATION, as Lender and
      Joint
	Documentation
      Agent
		 
	By   	
		Name:
	 	Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	JPMORGAN CHASE
      BANK, N.A., as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	FARM CREDIT EAST
      (F/K/A FIRST
	PIONEER FARM
      CREDIT, ACA), as Lender
		 
	By   	
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	FIFTH THIRD
      BANK, as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	MORGAN STANLEY
      SENIOR FUNDING,
	INC., as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	BRANCH BANKING
      AND TRUST
	COMPANY, as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	FARM CREDIT BANK
      OF TEXAS, as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	AMERICAN GENERAL
      LIFE INSURANCE
	COMPANY (F/K/A
      INTERNATIONAL
	GROUP, INC.), as Lender
		 
  
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	THE UNITED STATES
      LIFE INSURANCE
	COMPANY IN THE
      CITY OF NEW YORK,
	(AIG ASSET
      MANAGEMENT (U.S.), LLC, AS
	INVESTMENT
      ADVISOR), as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	WESTERN NATIONAL
      LIFE INSURANCE
	COMPANY, (AIG
      ASSET MANAGEMENT
	(U.S.), LLC, AS
      INVESTMENT ADVISOR), as
	Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	MERIT LIFE
      INSURANCE COMPANY, as
	Lender
		 
	By   	
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	THE VARIABLE
      ANNUITY LIFE
	INSURANCE
      COMPANY, (AIG ASSET
	MANAGEMENT
      (U.S.), LLC, AS
	INVESTMENT
      ADVISOR), as Lender
		 
	By   	
		Name:
	 	Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	METROPOLITAN LIFE
      INSURANCE
	COMPANY, as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	JOHN HANCOCK LIFE
      INSURANCE
	COMPANY, as Lender
		 
	By   	
		Name:
		Title:
		 
	JOHN HANCOCK LIFE
      & HEALTH
	INSURANCE
      CO, as Lender
		 
	By   	
		Name:
		Title:
	 	
	JOHN HANCOCK
      VARIABLE LIFE
	INSURANCE
      COMPANY, as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	AEGON USA REALTY
      ADVISORS, INC.
	(A/K/A
      “TRANSAMERICA LIFE INSURANCE
	COMPANY”), as Lender
		 
	By   	
		Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

	THE PRUDENTIAL
      INSURANCE COMPANY
	OF
      AMERICA, as Lender
		 
	By   	
	 	Name:
		Title:

  

  

  

  

  

  

  

  

CREDIT AGREEMENT
SIGNATURE PAGE 

EFFECTIVE DATE LOANS
AND LETTER OF
CREDIT SCHEDULE 

	Revolving Loans
	None
	 
	Term B-1 Loans
	$204,880,240.56
	 
	Term B-2 Loans
	$205,218,797.20
	 
	Letters of Credit
	Letter of
      Credit	Stated Amount
	Number
	00615523	$1,750,000.00
	00615578	$22,900,000.00
	00615901	$5,000,000.00Unassociated Document

Exhibit 4.2

 

	
 No. __________  

	
 __________ A WARRANTS 

 

 

 

 

 THIS A WARRANT CERTIFICATE WILL BE VOID IF NOT EXERCISED PRIOR 

 

TO 5:00 P.M. NEW YORK CITY TIME, [__________], 2018

 

 

GOOD TIMES RESTAURANTS INC.

 

 

 A WARRANT CERTIFICATE 

 

 

 THIS CERTIFIES THAT, for value received, [_______________] (“A Warrantholder”) is the registered holder of [_______] A Warrants (the “A Warrant” or “A Warrants”) to purchase fully paid and non-assessable shares of common stock, par value $0.001 per share (the “Share” or “Shares”), of GOOD TIMES RESTAURANTS INC., a Nevada corporation (the “Company”). 

 

 1.            Terms and Exercise of A Warrants. 

 

 (a)           A Warrant Price.  Each A Warrant shall entitle the registered holder thereof, subject to the provisions of such A Warrant, to purchase from the Company one share of Common Stock at the price of [$_____] per share, subject to the adjustments provided in Section 2 hereof and in the last sentence of this Section 1(a).  The term “A Warrant Price” as used in this Agreement refers to the price per share at which Common Stock may be purchased at the time the A Warrants are exercised.  The Company, in its sole discretion, may by notice to registered holders lower the A Warrant Price at any time prior to the Expiration Date (as defined below) for a specified period of not less than 20 business days. 

 

 (b)           Duration of A Warrants.  The A Warrants may be exercised only during the period (“Exercise Period”) commencing on the date of issuance and terminating at 5:00 p.m., New York City time, on the Expiration Date.  For purposes of this Agreement, the “Expiration Date” shall mean the earlier to occur of (i) [__________], 2018, or (ii) the date fixed for redemption of the A Warrants as provided in Section 4 hereof.  Except with respect to the right to receive the Redemption Price (as set forth in Section 6 hereof), each A Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof shall cease at the close of business on the Expiration Date.  The Company may extend the duration of the A Warrants by delaying the Expiration Date; provided, however, that the Company shall provide notice to registered holders of the A Warrants of such extension of not less than 20 days. 

 

  

- 1 -

  

 

 (c)          Exercise of A Warrants. 

 

 (i)           Payment.  Subject to the provisions of the A Warrants, the A Warrants may be exercised by the registered holder thereof by surrendering them at the Company with the subscription form as set forth herein duly executed and, except where otherwise permitted in accordance with Section 1(c)(ii), by paying in full in lawful money of the United States by certified check made payable to the Company or by wire transfer of immediately available funds to an account designated by the Company (or as otherwise agreed to by the Company), the A Warrant Price for each share of Common Stock as to which the A Warrants are exercised and any and all applicable taxes due in connection with the exercise of the A Warrants and the issuance of the Common Stock.   

 

 (ii)           Cashless Exercise.  If, and only if, at the time of exercise of the A Warrants there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the Common Stock to the A Warrantholder, then, and only then, the A Warrants may at the option of the A Warrantholder be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the A Warrantholder shall be entitled to receive a number of shares of Common Stock equal to the quotient obtained by dividing [(A-B) (X)] by (A), where: 

 

 (A) = the VWAP (defined below) on the trading day immediately preceding the date on which the A Warrantholder elects to exercise the A Warrants by means of a “cashless exercise,” as set forth in the applicable subscription form; 

 

 (B) = the A Warrant Price of the A Warrants, as adjusted hereunder; and 

 

 (X) = the number of shares of Common Stock that would be issuable upon exercise of the A Warrants being exercised  in accordance with the terms hereof if such exercise were by means of a cash exercise rather than a cashless exercise. 

 

“VWAP” means, for any date, the price per share of Common Stock determined by the first of the following clauses that applies:  (a) if the Common Stock is then listed or quoted on the New York Stock Exchange, the American Stock Exchange, the NASDAQ National Market, the NASDAQ Capital Market or the OTC Bulletin Board (each, a “Trading Market”), the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (“Bloomberg”) (based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is not then listed or quoted for trading or quoted for trading on a Trading Market and if prices for the  Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (c) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Board of Directors of the Company, the fees and expenses of which shall be paid by the Company.

 

  

- 2 -

  

 

 (iii)           Issuance of Certificates.  As soon as practicable after the exercise of any A Warrants and the clearance of the funds in payment of the A Warrant Price, the Company shall issue to the registered holder of such A Warrants a certificate or certificates representing the number of shares of Common Stock to which he, she or it is entitled, registered in such name or names as may be directed by him, her or it, and, if such A Warrants shall not have been exercised or surrendered in full, a new countersigned A Warrant Certificate for the number of shares as to which such A Warrants shall not have been exercised or surrendered.  Subject to Section 5(d) and notwithstanding the foregoing, the Company shall not be obligated to deliver any securities pursuant to the exercise of A Warrants unless (a) a registration statement under the Securities Act of 1933, as amended (the "Act") with respect to the Common Stock issuable upon exercise of the A Warrants is effective and a current prospectus relating to the shares of Common Stock issuable upon exercise of the A Warrants is available for delivery to the A Warrant holders, or (b) the exercise of the A Warrants is exempt from the registration requirements of the Act and such securities are qualified for sale or exempt from qualification under applicable securities laws of the state or other jurisdiction in which the registered holder resides. A Warrants may not be exercised by, or securities issued to, any registered holder in any state in which such exercise or issuance would be unlawful. In the event a registration statement under the Act with respect to the Common Stock underlying the A Warrants is not effective or a prospectus is not available, or because such exercise would be unlawful with respect to a registered holder in any state, the registered holder shall not be entitled to exercise such A Warrants and such A Warrants may have no value and expire worthless.  In no event will the Company be obligated to pay such registered holder any cash consideration upon exercise (except pursuant to Section 2(e)). The Company’s counsel shall deliver any legal opinions required by the transfer agent in connection with the exercise of the A Warrants at no cost to the A Warrantholder. 

        

 (iv)          Valid Issuance.  All shares of Common Stock issued upon the proper exercise or surrender of the A Warrants in conformity with this Agreement shall be validly issued, fully paid and nonassessable. 

 

 (v)           Date of Issuance.  Each person or entity in whose name any such certificate for shares of Common Stock is issued shall, for all purposes, be deemed to have become the holder of record of such shares on the date on which the A Warrants were surrendered and payment of the A Warrant Price was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open. 

	
  

	
1.

	
Adjustments.

 

 (a)           Stock Dividends; Stock Splits.  If, after the date hereof, and subject to the provisions of Section 2(f) below, the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock, or by a split of shares of Common Stock, or other similar event, then, on the effective date of such stock dividend, stock split or similar event, the number of shares of Common Stock issuable on exercise of the A Warrants shall be increased in proportion to such increase in outstanding shares of Common Stock. 

 

  

- 3 -

  

 

 (b)           Aggregation of Shares.  If, after the date hereof, and subject to the provisions of Section 2(f) below, the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of shares of Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of Common Stock issuable on exercise of the A Warrants shall be decreased in proportion to such decrease in outstanding shares of Common Stock. 

 

 (c)           Adjustments in A Warrant Price.  Whenever the number of shares of Common Stock purchasable upon the exercise of the A Warrants is adjusted, as provided in Sections 2(a) and 2(b), the A Warrant Price shall be adjusted (to the nearest cent) by multiplying such A Warrant Price, immediately prior to such adjustment, by a fraction, (i) the numerator of which shall be the number of shares of Common Stock purchasable upon the exercise of the A Warrants immediately prior to such adjustment, and (ii) the denominator of which shall be the number of shares of Common Stock so purchasable immediately thereafter. 

 

 (d)           Extraordinary Dividends.  If the Company, at any time during the Exercise Period, shall pay a dividend in cash, securities or other assets to the holders of Common Stock (or other shares of the Company’s capital stock into which the A Warrants are convertible), other than (i) as described in Sections 2(a), 2(b) or 2(e), or (ii) regular quarterly or other periodic dividends (any such non-excluded event being referred to herein as an “Extraordinary Dividend”), then the A Warrant Price shall be decreased, effective immediately after the effective date of such Extraordinary Dividend, by the amount of cash and/or the fair market value (as determined by the Company’s Board of Directors, in good faith) of any securities or other assets paid on each share of Common Stock in respect of such Extraordinary Dividend in order that subsequent thereto upon exercise of the A Warrants the A Warrantholder may obtain the equivalent benefit of such Extraordinary Dividend. 

 

 (e)           Replacement of Securities upon Reorganization, Etc.  In case of any reclassification or reorganization of the outstanding shares of Common Stock (other than a change covered by Sections 2(a) or 2(b) hereof or one that solely affects the par value of such shares of Common Stock), or, in the case of any merger or consolidation of the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding shares of Common Stock), or, in the case of any sale or conveyance to another corporation or entity of the assets or other property of the Company as an entirety or substantially as an entirety, in connection with which the Company is dissolved, the A Warrants shall thereafter represent the right to purchase and receive, upon the basis and upon the terms and conditions specified in the A Warrants and in lieu of the shares of Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the A Warrants holder would have received if such A Warrants holder had exercised his, her or its A Warrants immediately prior to such event; and if any reclassification also results in a change in shares of Common Stock covered by Sections 2(a) or 2(b), then such adjustment shall be made pursuant to Sections 2(a), 2(b), 2(c) and this Section 2(e). The provisions of this Section 2 shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers. 

 

   

- 4 -

  

 

 (f)           Notices of Changes in A Warrants.  Upon every adjustment of the A Warrant Price or the number of shares issuable upon exercise of the A Warrants, the Company shall give written notice thereof to each registered holder, which notice shall state the A Warrant Price resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of the A Warrants, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified in Sections 2(a), 2(b), 2(d) or 2(e) the Company shall give written notice to each A Warrants holder, at the last address set forth for such holder in the A Warrants register, of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event. 

 

 (g)           Form of A Warrant.  The form of A Warrant need not be changed because of any adjustment pursuant to this Section 2, and A Warrants issued after such adjustment may state the same A Warrant Price and the same number of shares as is stated in the A Warrants initially issued pursuant to this Agreement. However, the Company may, at any time, in its sole discretion, make any change in the form of A Warrants that the Company may deem appropriate and that does not affect the rights of holders thereof, and any A Warrants thereafter issued or countersigned, whether in exchange or substitution for outstanding A Warrants or otherwise, may be in the form as so changed. 

 

 (h)           Notice of Certain Transactions.  In the event that the Company shall propose to (i) offer the holders of its Common Stock rights to subscribe for or to purchase any securities convertible into shares of Common Stock or shares of stock of any class or any other securities, rights or options, (ii) issue any rights, options or warrants entitling the holders of Common Stock to subscribe for shares of Common Stock or (iii) make a tender offer, redemption offer or exchange offer with respect to the Common Stock, the Company shall send to the A Warrant holders a notice of such proposed action or offer. Such notice shall be mailed to the registered holders at their addresses as they appear in the A Warrants register, which shall specify the record date for the purposes of such dividend, distribution or rights, or the date such issuance or event is to take place and the date of participation therein by the holders of Common Stock, if any such date is to be fixed, and shall briefly indicate the effect of such action on the Common Stock and on the number and kind of any other shares of stock and on other property, if any, and the number of shares of Common Stock and other property, if any, issuable upon exercise of the A Warrants and the A Warrant Price after giving effect to any adjustment pursuant to this Section 2 which would be required as a result of such action. Such notice shall be given as promptly as practicable after the Company has determined to take any such action and (x) in the case of any action covered by clause (i) or (ii) above, at least 10 days prior to the record date for determining the holders of the Common Stock for purposes of such action or (y) in the case of any other such action, at least 20 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of Common Stock, whichever shall be the earlier. 

 

 (i)            Other Events.  If any event occurs as to which the foregoing provisions of this Section 2 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Company’s Board of Directors, fairly and adequately protect the purchase rights of the registered holders of the A Warrants in accordance with the essential intent and principles of such provisions, then the Company shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Company, to protect such purchase rights as aforesaid. 

 

   

- 5 -

  

 

 3.            Transfer and Exchange of A Warrants. 

 

 (a)           Registration of Transfer.  The Company shall register the transfer, from time to time, of any outstanding A Warrants into the A Warrant register, upon surrender of such A Warrants for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, new A Warrants representing an equal aggregate number of A Warrants shall be issued and the old A Warrants shall be cancelled by the Company. 

 

 (b)           Procedure for Surrender of A Warrants.  A Warrants may be surrendered to the Company, together with a written request for exchange or transfer, and, thereupon, the Company shall issue in exchange therefor one or more new A Warrants as requested by the registered holder of the A Warrants so surrendered, representing an equal aggregate number of A Warrants; provided, however, that, in the event the A Warrants surrendered for transfer bear a restrictive legend, the Company shall not cancel such A Warrants and issue new A Warrants in exchange therefor until the Company has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the new A Warrants must also bear a restrictive legend. 

 

 (c)           Service Charges.  No service charge shall be made for any exchange or registration of transfer of A Warrants. 

 

4.             Redemption.

 

 (a)           Redemption.  Subject to the penultimate and final sentences of this Section 4(a) and from and after one year following the issuance of the A Warrants, not less than all of the outstanding A Warrants may be redeemed, at the option of the Company, at any time thereafter after they become exercisable and there is an effective registration statement covering the shares of Common Stock issuable upon exercise of the A Warrants current and available and prior to their expiration, upon the notice referred to in Section 4(b), in whole but not in part, at the price of $0.01 per A Warrant (“Redemption Price”), provided that the closing sales price of a share of Common Stock has been equal to or greater than 150% of the A Warrant Price (as adjusted pursuant to Section 2(c) hereof) for any 20 trading days within a 30 consecutive trading day period ending on the third business day prior to the date on which notice of redemption is given.  Notwithstanding anything to the contrary contained herein, the Company shall not call the A Warrants for redemption unless there is an effective registration statement under the Act relating to the shares of Common Stock issuable upon exercise of the A Warrants current and available throughout the “30-day redemption period” and a prospectus is available. 

 

 (b)           Date Fixed for, and Notice of, Redemption.  In the event the Company shall elect to redeem all of the A Warrants, the Company shall fix a date for the redemption. Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than 30 days prior to the date fixed for redemption to the registered holders of the A Warrants to be redeemed at their last addresses as they shall appear on the A Warrant Register. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder received such notice. 

 

  

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 (c)           Exercise After Notice of Redemption.  The A Warrants may be exercised in accordance with Section 1 of this Agreement at any time after notice of redemption shall have been given by the Company pursuant to Section 4(b) hereof and prior to the time and date fixed for redemption. On and after the redemption date, the registered holders of the A Warrants shall have no further rights except to receive, upon surrender of the A Warrants, the Redemption Price. 

 

 5.            Other Provisions Relating to Rights of Holders of A Warrants. 

 

 (a)           No Rights as Stockholder.  The A Warrants do not entitle the registered holder thereof to any of the rights of a stockholder of the Company, including, without limitation, the right to receive dividends or other distributions, to exercise any preemptive rights, or to vote, consent or receive notice as stockholders in respect of the meetings of stockholders or the election of directors of the Company or any other matter. 

 

 (b)           Lost, Stolen, Mutilated or Destroyed A Warrant Certificates.  If any A Warrant Certificate is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may in its discretion impose (which terms shall, in the case of a mutilated A Warrant Certificate, include the surrender thereof), issue a new A Warrant Certificate of like denomination, tenor and date as the A Warrant Certificate so lost, stolen, mutilated or destroyed. Any such new A Warrant Certificate shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed A Warrant Certificate shall be at any time enforceable by anyone. 

 

 (c)           Reservation of Common Stock.  The Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that will be sufficient to permit the exercise in full of all outstanding A Warrants issued pursuant to this Agreement. 

 

 (d)           Registration of Common Stock.  The Company agrees that prior to the commencement of the Exercise Period, it shall use its best efforts to prepare and file with the Securities and Exchange Commission a post-effective amendment to the registration statement, or a new registration statement, for the registration under the Act of the Common Stock issuable upon exercise of the A Warrants, and it shall take such action as is necessary to qualify for sale, in those states in which the A Warrants were initially offered by the Company, the Common Stock issuable upon exercise of the A Warrants. In either case, the Company will use its best efforts to cause the same to become effective on or prior to the commencement of the Exercise Period and to maintain the effectiveness of such registration statement and ensure that a prospectus is available for delivery to the A Warrant holders until the expiration of the A Warrants in accordance with the provisions of this Agreement.  Except as provided in Section 1(c)(ii) of this A Warrant Certificate, the A Warrants shall not be exercisable and the Company shall not be obligated to issue Common Stock unless, at the time a holder seeks to exercise A Warrants, a prospectus related to the Common Stock issuable upon exercise of the A Warrants is current and the Common Stock has been registered or qualified under the laws of the state of residence of the holder of the A Warrants or unless the issuance of the Common Stock is deemed to be exempt from such requirements.  In addition, the Company agrees to use its best efforts to register such securities under the blue sky laws of the states of residence of exercising A Warrant holders, if permitted by the blue sky laws of such jurisdictions, in the event that an exemption is not available. 

 

  

- 7 -

  

 

 (e)           Notices.  Any notice, statement or demand authorized by this Certificate to be given or made by the Company or by the holder of the A Warrants to or on the Company shall be delivered by hand or sent by registered or certified mail or overnight courier service, addressed (until another address is provided in writing by the Company) as follows: 

 

Good Times Restaurants Inc.

 

601 Corporate Circle

 

Golden, CO 80401

 

Attn:  President and CEO

 

 

Any notice, sent pursuant to this Certificate shall be effective, if delivered by hand, upon receipt thereof by the party to whom it is addressed, if sent by overnight courier, on the next business day of the delivery to the courier, and if sent by registered or certified mail on the third day after registration or certification thereof.

 

 (f)           Applicable Law.  The validity, interpretation, and performance of this Certificate and of the A Warrants shall be governed in all respects by the laws of the State of Nevada, without giving effect to any conflict of laws principles. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating in any way to this Certificate and to the A Warrants shall be brought and enforced in the courts of the State of Nevada or the United States District Court for the District of Nevada, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 5(e) hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. 

 

GOOD TIMES RESTAURANTS INC.

 

 

 

	
By:

	  	  
	  	  	  
	  	
Boyd E. Hoback, President & CEO

	  

 

                                                                

 

 

	
By:

	  	  
	  	  	  
	  	
Susan M. Knutson, Secretary

	  

 

  

- 8 -

  

 

GOOD TIMES RESTAURANTS INC.

 

SUBSCRIPTION FORM

 

(To Be Executed by the A Warrantholder in Order to Exercise A Warrants)

 

 

 

 The undersigned A Warrantholder hereby irrevocably elects to exercise __________ A Warrants represented by this A Warrant Certificate, and to purchase the shares of Common Stock issuable upon the exercise of such A Warrants.  Payment shall take the form of (check applicable box): 

 

 o in lawful money of the United States by certified check made payable to the Company or by wire transfer of immediately available funds to an account designated by the Company; or 

 

 

 o if permitted by the terms of the A Warrant Certificate, the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section 1(c)(ii), to exercise the A Warrants with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 1(c)(ii). 

 

 

 The undersigned A Warrantholder requests that certificates for such shares shall be issued in the name of: 

 

	
Name:   

	  	  
	  	  	  
	
Address:   

	  	  
	  	  	  
	  	  	  
	  	  	  
	
Tax Identification Number:   

	  	  

 

 

and be delivered to:

 

 

 

	
Name:   

	  	  
	  	  	  
	
Address:   

	  	  
	  	  	  
	  	  	  

 

 

 and, if the number of A Warrants shall not be all the A Warrants evidenced by this A Warrant Certificate, that a new A Warrant Certificate for the balance of such A Warrants be registered in the name of, and delivered to, the A Warrantholder at the address stated below. 

 

 

	
Dated:

	  	  	  	  	
Signature: 

	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	
Address

 

  

- 9 -

  

 

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	  	  	  	  	  	
  Tax Identification Number

 

Signature Guaranteed:

 

 

 

	  	  

 

 

 THE SIGNATURE TO THIS A WARRANT EXERCISE FORM MUST CORRESPOND TO THE NAME WRITTEN UPON THE FACE OF THIS A WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR CHICAGO STOCK EXCHANGE. 

 

 

 

 

 

 

  

- 10 -

  

 

GOOD TIMES RESTAURANTS INC.

 

ASSIGNMENT

 

 (To Be Executed by the A Warrantholder in Order to Assign A Warrants) 

 

 

 

For Value Received, ____________________ hereby sells, assigns and transfers unto:

 

 

	
Name:   

	  	  
	  	  	  
	
Address:   

	  	  
	  	  	  
	  	  	  
	  	  	  
	
Tax Identification Number:   

	  	  

 

 _________ of the A Warrants represented by this A Warrant Certificate, and hereby irrevocably constitutes and appoints ____________________ Attorney to transfer this A Warrant Certificate on the books of the Company, with full substitution in the premises. 

 

 

                                                             

 

	
Dated:

	  	  	  	  	
Signature: 

	  	  

 

 

 

 

Signature Guaranteed:

 

 

 

 

	  	  

 

 

 THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND TO THE NAME WRITTEN UPON THE FACE OF THIS A WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR CHICAGO STOCK EXCHANGE. 

 

 

- 11 -

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