Document:

BridgeRevolverCommitmentLetter

EXECUTION VERSION

	
		
	Morgan Stanley Senior Funding, Inc. 
1585 Broadway
New York, New York 10036
	J.P. Morgan Securities LLC
JPMorgan Chase Bank, N.A.
383 Madison Avenue
New York, New York 10179

June 2, 2014

Tyson Foods, Inc.
2200 W. Don Tyson Parkway
Springdale, AR 72762

Attention:      Susan White
Vice President and Treasurer

Project Hobbit
$6,750,000,000 364-Day Senior Unsecured Bridge Facility
$1,000,000,000 364-Day Senior Unsecured Revolving Credit Facility
Amended and Restated Commitment Letter

Ladies and Gentlemen:

You (“you” or the “Borrower”) have advised Morgan Stanley Senior Funding, Inc. (“MSSF”), J.P. Morgan Securities LLC (“JPMS”), JPMorgan Chase Bank, N.A. (“JPMorgan”, and together with MSSF and each party that becomes a party to this Commitment Letter as an additional “Commitment Party” pursuant to Section 2 hereof, collectively, the “Commitment Parties”, “we” or “us”) that you intend to consummate the acquisition (the “Acquisition”) of a company previously identified to us and code named Hobbit (the “Target”, and together with its subsidiaries, the “Acquired Business”) as described in the proposal letter (the “Proposal Letter”) dated May 29, 2014 (the “Original Commitment Date”) submitted by you to the Board of Directors of the Target, which Acquisition will be consummated pursuant to an Agreement and Plan of Merger to be entered into among the Borrower, a wholly-owned domestic subsidiary of the Borrower and the Target (the “Acquisition Agreement”). After giving effect to the Acquisition, the Target will be a wholly-owned subsidiary of the Borrower.
In that connection, you have advised us that in connection with the Acquisition you intend to obtain (a) up to $6,750,000,000 of gross proceeds from the issuance by the Borrower of unsecured debt, term loans, equity, equity-linked or other securities (the “Permanent Financing”) and/or (b) to the extent the Borrower does not issue or incur or borrow the Permanent Financing up to such amount on or prior to the Closing Date (as defined below), loans under a 364-day senior unsecured bridge facility (the “Bridge Facility”) in an aggregate principal amount not to exceed $6,750,000,000 (as such amount may be reduced pursuant to the “Mandatory Prepayments and Commitment Reductions” section of the Bridge Facility Term Sheet) on the terms set forth in this letter and in the Summary of Terms and Conditions attached hereto as Exhibit A (including the Annex attached thereto) (the “Bridge Facility Term Sheet”).  
In addition, you have advised us that you intend to amend the Credit Agreement, dated as of August 9, 2012, among you, as borrower, the subsidiary borrowers party thereto, the lenders party thereto and JPMorgan, as administrative agent, to, among other things, permit the consummation of the 

    
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Transactions (as defined below) without resulting in the occurrence of a default or event of default under the Existing Revolving Facility (as amended, restated, amended and restated, supplemented or modified prior to the Original Commitment Date, the “Existing Revolving Facility” and the amendment thereto, the “Amendment”).  In connection with the foregoing, you agree to use commercially reasonable efforts to effect the Amendment as soon as reasonably practicable following the Original Commitment Date; provided, however, that if the effective date of the Amendment (or the effective date of any other waiver, consent or other agreement or arrangement pursuant to which the Transactions are permitted to be consummated without resulting in the occurrence of a default or event of default under the Existing Revolving Facility) (any such date, the “Amendment Effective Date”) does not occur on or prior to the Closing Date, you intend to terminate the Existing Revolving Facility and obtain replacement financing pursuant to a 364-day revolving credit facility (the “364-Day Revolving Credit Facility”, and together with the Bridge Facility, the “Facilities”) with $1,000,000,000 in aggregate commitments and on the terms set forth in this letter and in the Summary of Terms and Conditions attached hereto as Exhibit B (including the Annex attached thereto) (the “364-Day Revolving Credit Facility Term Sheet”).  
The Acquisition, the issuance or incurrence or borrowing of the Permanent Financing, the Bridge Facility, the Amendment, the 364-Day Revolving Credit Facility and the transactions contemplated by or related to the foregoing are collectively referred to herein as the “Transactions”. The date of the consummation of the Acquisition and on which the Facilities shall be available is referred to herein as the “Closing Date”.
1.  Commitments.  MSSF is pleased to commit to provide, severally and not jointly, 72.5% of the aggregate principal amount of each of (i) the Bridge Facility on the terms set forth in this letter and the Bridge Facility Term Sheet and (ii) the 364-Day Revolving Credit Facility on the terms set forth in this letter and the 364-Day Revolving Credit Facility Term Sheet, and JPMorgan is pleased to commit to provide, severally and not jointly, 27.5% of the aggregate principal amount of each of (i) the Bridge Facility on the terms set forth in this letter and the Bridge Facility Term Sheet and (ii) the 364-Day Revolving Credit Facility on the terms set forth in this letter and the 364-Day Revolving Credit Facility Term Sheet, in the case of each Facility, subject to the applicable Conditions Precedent to Availability of Loans set forth in Exhibit C (the “Conditions Precedent Exhibit” and, together with the Bridge Facility Term Sheet, the 364-Day Revolving Credit Facility Term Sheet, and Exhibits D and E hereto, the “Term Sheets” and collectively with this letter, this “Commitment Letter”); provided that, (x) the amount of the Bridge Facility and the aggregate commitments of the Commitment Parties hereunder for the Bridge Facility shall be automatically reduced at any time on or after the Original Commitment Date as set forth in the section titled “Mandatory Prepayments and Commitment Reductions” of the Bridge Facility Term Sheet and (y) the aggregate commitments of the Commitment Parties hereunder for the 364-Day Revolving Credit Facility shall be automatically terminated and/or permanently reduced at any time on or after the Original Commitment Date as set forth in the section titled “Mandatory Commitment Reductions” of the 364-Day Revolving Credit Facility Term Sheet. MSSF and JPMorgan are referred to herein collectively as the “Initial Commitment Parties”.
It is understood that (i) MSSF and JPMS shall act as joint lead arrangers and joint bookrunners (in such capacities, the “Arrangers”), (ii) MSSF shall act as sole administrative agent for the Bridge Facility and the 364-Day Revolving Credit Facility (in such capacities, the “Administrative Agent”) and (iii) JPMorgan shall act as sole syndication agent for the Bridge Facility and the 364-Day Revolving Credit Facility.  You agree that no other agents, co-agents, arrangers or bookrunners will be appointed, no other titles will be awarded and no compensation will be paid in connection with either Facility, unless you and we shall agree.  It is further agreed MSSF will have “upper left” placement, and JPMS will have placement immediately to the right of MSSF, in all documentation used in connection with each Facility and shall have all roles and responsibilities customarily associated with such placement.

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Notwithstanding anything to the contrary contained in this Commitment Letter, the Definitive Documentation (as defined in the Conditions Precedent Exhibit), the Fee Letter or any other letter agreement or undertaking concerning the financing of the Acquisition, (a) the only conditions to closing and funding of our commitments hereunder on the Closing Date shall be those set forth in the Conditions Precedent Exhibit, and upon satisfaction (or waiver) of such conditions the initial funding (to the extent requested by the Borrower in accordance with the respective terms thereof) of the Bridge Facility and the 364-Day Revolving Credit Facility shall occur (it being understood that there are no conditions (implied or otherwise) to the commitments hereunder, including compliance with the terms of this Commitment Letter, the Fee Letter and the Definitive Documentation, other than those that are expressly stated herein to be conditions to the initial funding of the Bridge Facility and the 364-Day Revolving Credit Facility on the Closing Date as set forth in the Conditions Precedent Exhibit) and (b) the only representations relating to the Borrower, the Target and their respective subsidiaries and their respective businesses the accuracy of which shall be a condition to availability of the Bridge Facility and the 364-Day Revolving Credit Facility on the Closing Date shall be (i) the Acquisition Agreement Representations (as defined in the Conditions Precedent Exhibit) and (ii) the Specified Representations (as defined in the Conditions Precedent Exhibit).
2.  Syndication.  The Arrangers reserve the right, prior to or after execution of the Bridge Documentation or the 364-Day Revolving Credit Facility Documentation (each as defined in the Conditions Precedent Exhibit), in consultation with you, to syndicate all or a part of our commitments under the Facilities, in each case, to one or more financial institutions and/or lenders (such financial institutions and/or lenders to the Bridge Facility, the “Bridge Lenders” and such financial institutions and/or lenders to the 364-Day Revolving Credit Facility, the “364-Day Revolving Lenders” and, together with the Bridge Lenders, the “Lenders”) in accordance with the terms hereof, which syndication shall be managed by the Arrangers in consultation with the Borrower; provided, however, that, notwithstanding anything else to the contrary contained herein, (a) until the earlier of (i) the date that is 45 days after the Original Commitment Date and (ii) the Closing Date (such date, the “Specified Date”), the selection of Lenders by the Arrangers shall be subject to the Borrower’s approval in its sole discretion (it being understood and agreed that such approval shall not be required with respect to any Lender that is a party to the Borrower’s Existing Revolving Facility or is otherwise identified in writing as an approved Lender by the Borrower and the Arrangers prior to the Original Commitment Date), (b) following the Specified Date, if and for so long as a Successful Syndication (as defined in the Fee Letter) has not been achieved, the selection of Lenders by the Arrangers shall be in consultation with the Borrower (it being understood and agreed that such lenders selected by the Arrangers pursuant to this clause (b) shall be limited (unless otherwise consented to by the Borrower) to commercial and investment banks, in each case, whose senior, unsecured, long-term indebtedness has an “investment grade” rating by not less than two of Standard & Poor’s Rating Services, Moody’s Investor Service, Inc. and Fitch Ratings Ltd.) and (c) following the achievement of a Successful Syndication, the Borrower shall have the applicable consent rights with respect to assignments of commitments and loans under the Facilities as set forth in the Term Sheets; provided, further, that in no event shall any Lender be a competitor (or a reasonably identifiable affiliate of such competitor) of the Borrower and its subsidiaries or otherwise be an institution that is identified as an ineligible Lender in writing by the Borrower to the Arrangers prior to the Original Commitment Date (each such person a “Disqualified Institution” and collectively, the “Disqualified Institutions”).  
The Initial Commitment Parties’ commitments hereunder with respect to the Bridge Facility shall be reduced dollar for dollar, allocated as set forth in Section 2 of the Fee Letter, as and when commitments for the Bridge Facility are received from Bridge Lenders to the extent that each such Bridge Lender becomes (i) party to this Commitment Letter as an additional “Commitment Party” with respect to the Bridge Facility pursuant to a joinder agreement or other documentation, in each case reasonably satisfactory to the Arrangers and you or (ii) party to the Bridge Documentation as a “Lender” thereunder.  The Initial Commitment Parties’ commitments hereunder with respect to the 364-Day Revolving Credit Facility shall be reduced dollar for dollar, allocated as set forth in Section 2 of the Fee Letter, as and when 

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commitments for the 364-Day Revolving Credit Facility are received from 364-Day Revolving Lenders to the extent that each such 364-Day Revolving Lender becomes (i) party to this Commitment Letter as an additional “Commitment Party” with respect to the 364-Day Revolving Credit Facility pursuant to a joinder agreement or other documentation, in each case reasonably satisfactory to the Arrangers and you or (ii) party to the 364-Day Revolving Credit Facility Documentation as a “Lender” thereunder.  It is understood that on the Closing Date, each Initial Commitment Party’s obligation to fund its respective commitment under each of the Bridge Facility and the 364-Day Revolving Credit Facility shall be limited to such Initial Commitment Party’s then-outstanding commitment (as such commitment may have been reduced as set forth in the preceding sentence).  The Arrangers intend to commence syndication efforts with respect to the Facilities promptly upon the execution of this Commitment Letter by the parties hereto (but not before the public announcement of the Transactions by you), and you agree to use your commercially reasonable efforts to actively assist the Arrangers until the earlier of (a) 90 days after the Closing Date and (b) the achievement of a Successful Syndication in completing a syndication reasonably satisfactory to the Arrangers and you as soon as practicable after your acceptance hereof.  Such assistance shall include (a) your using commercially reasonable efforts to ensure that the Arrangers’ syndication efforts benefit from your existing lending and investment banking relationships, (b) direct contact between senior management and advisors of the Borrower, on the one hand, and the proposed Lenders, on the other hand, at reasonable times and intervals and in such manner to be mutually agreed, (c) your assistance in the preparation of a confidential information memorandum and other reasonably available and customary marketing materials with respect to you and your subsidiaries (other than materials the disclosure of which would violate a confidentiality agreement or waive attorney-client privilege) to be used in connection with the syndication and (d) the hosting, with the Arrangers, of one or more meetings or conference calls with prospective Lenders, at times and locations to be mutually agreed upon, as deemed reasonably necessary by the Arrangers.  Until the earlier of (a) 90 days after the Closing Date and (b) the achievement of a Successful Syndication, you agree that there shall be no competing offering, placement or arrangement of any commercial bank or other syndicated credit facilities by or on behalf of the Borrower or any of its subsidiaries that could reasonably be expected to impair the primary syndication of the Facilities in any material respect, other than (i) the Amendment, (ii) the Facilities, (iii) any borrowings under the Existing Revolving Facility (including pursuant to extensions, modifications and replacements thereof) up to $1.25 billion, to the extent that each of MSSF and JPMS is offered a role to act as an active joint lead arranger having committed to provide, severally and not jointly, an amount equal to that of the other “top-tier lenders” in connection with any such extension, modification or replacement, (iv) any borrowings under existing ordinary course foreign credit lines (including any renewal, extension or replacement thereof), (v) indebtedness permitted to be incurred under the Acquisition Agreement, and (vi) any purchase money indebtedness, capital lease obligations, industrial revenue bonds and similar obligations, in each case in the ordinary course of business.  In addition, you agree to use commercially reasonable efforts to obtain ratings giving effect to the Transactions at least 10 business days prior to the Closing Date from Moody’s Investor Services, Inc. (“Moody’s”), Standard & Poor’s Ratings Group, a division of The McGraw Hill Corporation (“S&P”) and Fitch Ratings (“Fitch”) with respect to the senior unsecured debt of the Borrower.  The Arrangers, subject to your rights and the applicable limitations set forth in this Section 2 of the Commitment Letter, will manage all aspects of the syndication in consultation with you, including, without limitation, decisions as to the selection of institutions to be approached and when they will be approached, when their commitments will be accepted, which institutions will participate and the allocations of the commitments among the Lenders and the amount and distribution of fees among the Lenders.  In acting in their respective capacities as Arrangers, each Arranger will have no responsibility other than to arrange the syndication as set forth herein and shall in no event be subject to any fiduciary or other implied duties.  To assist the Arrangers in their syndication efforts, you agree to (and in the case of the Acquired Business, consistent with the terms of the Acquisition Agreement, to use commercially reasonable efforts to) promptly prepare and provide to us all customary and reasonably available financial and other information with respect to the Borrower, and to the extent reasonably practicable and subject to the limitations and compliance with the terms of the Acquisition Agreement, the Acquired Business and each of their respective subsidiaries (which, 

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notwithstanding the foregoing, shall include if and when required to be delivered by Rule 3-05 of Regulation S-X and the rules and regulations of the Securities Act of 1933, as amended (the “Securities Act”), audited consolidated annual financial statements of the Acquired Business, as well as unaudited interim consolidated financial statements (which shall have been reviewed by the independent accountants for the Acquired Business as provided in Statement on Auditing Standards No. 100) prepared in accordance with U.S. GAAP) and the Transactions, including, without limitation, customary projections concerning the Borrower and its subsidiaries prepared by the Borrower (together with any estimates, forecasts, budgets or other forward looking information concerning the Borrower and its subsidiaries prepared by the Borrower, the “Projections”), as the Arrangers may reasonably request in connection with the arrangement and syndication of the Facilities; provided, that each of the foregoing to the extent relating to the Acquired Business may only be required (x) if and to the extent consistent with, and subject to the limitations and compliance with the terms of, the Acquisition Agreement or (y) are otherwise available, or may be derived from information available, to you.  Notwithstanding anything to the contrary in this Commitment Letter or the Fee Letter, neither the commencement nor the completion of any syndication of the Facilities shall constitute a condition precedent to the availability of the Facilities on the Closing Date or at any time thereafter.  Each of the Arrangers and the Borrower agrees to use its commercially reasonable efforts to negotiate, execute and deliver the Bridge Documentation promptly following the execution of this Commitment Letter.
You agree that the Arrangers may make available any Information (as defined below) and Projections (collectively, the “Company Materials”) to potential Lenders by posting the Company Materials on IntraLinks, the Internet or another similar electronic system (the “Platform”). You further agree to assist, at the reasonable request of the Arrangers, in the preparation of a version of a confidential information memorandum and other customary marketing materials and presentations to be used in connection with the syndication of the Facilities to potential Lenders who do not wish to receive material non-public information (within the meaning of the United States federal securities laws) with respect to the Borrower, the Target or their respective subsidiaries, consisting exclusively of information or documentation that is either (a) publicly available (or contained in the prospectus or other offering memorandum for any securities to be issued by the Borrower in connection with the Transactions) or (b) not material with respect to the Borrower, the Target or their respective subsidiaries or any of their respective securities for purposes of foreign (if applicable), United States federal and state securities laws (all such information and documentation being “Public Lender Information”).  Any information and documentation that is not Public Lender Information is referred to herein as “Private Lender Information.”  You further agree, at our reasonable request, to identify any document to be disseminated by the Arrangers to any Lender or potential Lender in connection with the syndication of each Facility as containing solely Public Lender Information (provided that the Borrower has been afforded an opportunity to comply with the applicable Securities and Exchange Commission (“SEC”) disclosure obligations).  Unless identified by you as containing solely Public Lender Information, each document to be disseminated by the Arrangers will be deemed to be Private Lender Information unless you, after receipt thereof, advise the Arrangers otherwise in writing.  You acknowledge and agree that the following documents may be distributed to potential Lenders (other than Disqualified Institutions) who wish to receive only Public Lender Information unless, after receipt thereof, you or your counsel advise the Arranger in writing (including by email) within a reasonable time prior to their intended distribution to the contrary (provided that you have been given a reasonable opportunity to review such documents and comply with any applicable SEC disclosure obligations): (i) drafts and final Definitive Documentation; (ii) administrative materials prepared by the Arrangers for potential Lenders (e.g., a lender meeting invitation, allocations and/or funding and closing memoranda); and (iii) notification of changes in the terms of either Facility. Notwithstanding the foregoing, it is understood and agreed that the Company Materials and the Private Lender Information are both subject to the confidentiality provisions in this Commitment Letter.   

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3.  Information.  You hereby represent (with respect to information relating to the Acquired Business, to your knowledge) that (a) all written information (other than the Projections or information of a general economic or industry specific nature) (the “Information”) that has been or will be made available to us or any of our affiliates or any Lender or any potential Lender by you, or any of your representatives is or will be, when taken as a whole, complete and correct in all material respects and does not or will not, when furnished and taken as a whole, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made, after giving effect to all supplements or updates thereto and (b) the Projections that have been or will be made available to us or any of our affiliates or any Lender or potential Lender by you or any of your representatives have been or will be prepared in good faith based upon assumptions believed by you to be reasonable at the time made and furnished (it being understood that such Projections are not to be viewed as facts, are subject to significant uncertainties and contingencies, any of which are beyond your control, that actual results during the period or periods covered by such Projections may differ significantly from the projected results and such differences may be material, and that no assurance can be given that any particular Projection will be realized).  You agree to supplement (and, with respect to the Acquired Business, to use commercially reasonable efforts to supplement) the Information and Projections from time to time until the later of (i) the Closing Date and (ii) the date that is the earlier of (x) a Successful Syndication and (y) 90 days after the Closing Date, if you become aware that any of the representations in the previous sentence would be incorrect if such Information and/or Projections were being furnished at such time so that the representations and covenants in the immediately preceding sentence remain correct.  You acknowledge that we will be entitled to use and rely on the Information and Projections without independent verification thereof.
We reserve the right to employ the services of one or more of our affiliates in providing services contemplated by this Commitment Letter and to allocate, in whole or in part, to such affiliates certain fees payable to us in such manner as we and our affiliates may agree.  You acknowledge that, subject to Section 8 below, we may share with any of our affiliates participating in the Transactions, and such affiliates may share with us, any information related to the Transactions, you and your subsidiaries or the Acquired Business or any of the matters contemplated hereby in connection with the Transactions.  
4.  Fees.  As consideration for our commitment hereunder and the Arranger’s agreement to perform the services described herein, you agree to pay the non-refundable fees set forth in the Term Sheets, in the Amended and Restated Fee Letter delivered herewith from MSSF, JPMorgan and JPMS to you relating to the Facilities and dated the date hereof (the “Fee Letter”) and in any other fee agreements agreed to by the relevant parties hereto.
5.  Indemnity and Expenses; Other Activities.  You agree (a) to indemnify and hold harmless each Commitment Party and its affiliates and each officer, director, employee, advisor and agent of each Commitment Party or its affiliates (each, an “indemnified person”) from and against any and all losses, claims, damages and liabilities to which any such indemnified person may become subject arising out of or in connection with this Commitment Letter, the Fee Letter, the Facilities, the use of the proceeds thereof, the Transactions or any related transaction or any claim, litigation, investigation or proceeding relating to any of the foregoing, regardless of whether any indemnified person is a party thereto and regardless of whether brought by a third party or by the Borrower or any of its affiliates (any of the foregoing, a “Proceeding”), and to reimburse each indemnified person within 30 days after receipt of a reasonably detailed written invoice therefor (together with documentation supporting such reimbursement request) for any reasonable and documented out-of-pocket expenses incurred in connection with investigating, defending, preparing to defend or participating in any such Proceeding (but limited in the case of legal fees and expenses, to the reasonable fees, disbursements and other charges of (i) a single counsel selected by the Arrangers for all such indemnified persons, taken as a whole, and (ii) solely in the case of a potential or actual conflict of interest, one additional counsel to all affected indemnified persons, 

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taken as a whole (and, if reasonably necessary, one local counsel for each relevant jurisdiction for all such indemnified persons, taken as a whole, as the Arrangers may deem appropriate in their good faith judgment)), provided that the foregoing indemnity will not, as to any indemnified person, apply to losses, claims, damages, liabilities or related expenses to the extent (i) they are found by a final, nonappealable judgment of a court of competent jurisdiction to arise from the bad faith, willful misconduct or gross negligence of such indemnified person (or of such indemnified person’s affiliates, officers, directors, employees, advisors or agents), (ii) they arise as a result of such indemnified person’s (or such indemnified person’s affiliates’, officers’, directors’, employees’, advisors’ or agents’) material breach of its obligations under this Commitment Letter or the Fee Letter or (iii) they relate to disputes solely among indemnified persons that are not arising out of any act or omission by you or any of your affiliates, other than claims against any agent, arranger, bookrunner or other similar role under any Facility in its capacity as such, and (b) to reimburse each Commitment Party and its affiliates within 30 days (or, if the invoice relates to reimbursements in connection with the Transactions and such invoice was submitted at least 2 business days prior to the Closing Date, within 2 business days) after receipt of a reasonably detailed written invoice (together with documentation supporting such reimbursement request) for all reasonable and documented out-of-pocket expenses (but, limited in the case of legal fees and expenses, to the reasonable fees, disbursements and other charges of (i) a single counsel selected by the Arrangers for all such persons, taken as a whole, and (ii) solely in the case of a potential or actual conflict of interest, one additional counsel to all such affected persons, taken as a whole (and, if reasonably necessary, one local counsel for each relevant jurisdiction for all such persons, taken as a whole, as the Arrangers may deem appropriate in their good faith judgment)) incurred in connection with the Facilities and any related documentation (including, without limitation, this Commitment Letter, the Fee Letter and the Definitive Documentation) or the administration, amendment, modification or waiver thereof or the enforcement of any rights or remedies hereunder.  Notwithstanding any other provision of this Commitment Letter, no party shall be liable (i) for any damages arising from the use by unintended recipients of Information or other materials obtained through electronic, telecommunications or other information transmission systems, except to the extent any such damages are found by a final, nonappealable judgment of a court of competent jurisdiction to arise from the gross negligence, bad faith or willful misconduct of, or material breach of this Commitment Letter or the Fee Letter by, such indemnified person (or such indemnified person’s affiliates, officers, directors, employees, advisors or agents) or other party, or (ii) for any special, indirect, consequential or punitive damages in connection with the Commitment Letter, the Fee Letter, the Facilities, the use of the proceeds thereof, the Transactions or any related transaction; provided, that nothing contained in this sentence shall limit your indemnification obligations to the extent set forth hereinabove to the extent such special, indirect, consequential or punitive damages are included in any third party claim in connection with which such indemnified person is entitled to indemnification hereunder.  
Notwithstanding anything to the contrary contained herein, you shall not be liable for any settlement of any Proceeding effectuated without your prior written consent (such consent not to be unreasonably withheld or delayed), but, if settled with your written consent, or if there is a final judgment by a court of competent jurisdiction against an indemnified person in any such Proceeding for which you are required to indemnify such indemnified person pursuant to the preceding paragraph, you agree to indemnify and hold harmless each indemnified person from and against any and all losses, claims, damages, liabilities and expenses by reason of such settlement or judgment in accordance with the preceding paragraph.  You shall not, without the prior written consent of the affected indemnified person (which consent shall not be unreasonably withheld or delayed), settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any Proceeding in respect of which indemnification may be sought hereunder unless such settlement, compromise, consent or termination (i) includes an unconditional release of each indemnified person from all liability arising out of such Proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of such indemnified person.   Notwithstanding the foregoing paragraphs, each indemnified person shall be obligated to refund or return any and all amounts paid by you under the paragraph above to such 

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indemnified person for any losses, claims, damages, liabilities or expenses to the extent such indemnified person is not (or is found not to be) entitled to payment of such amounts in accordance with the terms hereof.  
You acknowledge that each Commitment Party and its affiliates (the term “Commitment Party” as used below in this paragraph being understood to include such affiliates) may be providing debt financing, equity capital or other services (including, without limitation, financial advisory services) to other companies in respect of which you may have conflicting interests or a commercial or competitive relationship with and otherwise. In particular, you acknowledge that each of Morgan Stanley & Co. LLC (“MS&Co.”) and JPMS is acting as a buy-side financial advisor to you in connection with the Transactions. You agree not to assert or allege any claim based on actual or potential conflict of interest arising or resulting from, on the one hand, the engagement of MS&Co. or JPMS in such capacity and our obligations hereunder, on the other hand.  The Initial Commitment Parties and each other Commitment Party hereto (i) acknowledge the retention of each of MS&Co. and JPMS as a buy-side financial advisor to the Borrower and (ii) acknowledge that such retention does not create any fiduciary duties or fiduciary responsibilities to it on the part of MSSF, JPMS or their respective affiliates.  No Commitment Party will use confidential information obtained from you by virtue of the transactions contemplated hereby or other relationships with you in connection with the performance by the Commitment Parties of services for other companies, and no Commitment Party will furnish any such information to other companies or their advisors.  You also acknowledge that no Commitment Party has any obligation to use in connection with the transactions contemplated hereby, or to furnish to you, confidential information obtained from other companies. You acknowledge that each Commitment Party is acting pursuant to a contractual relationship on an arm’s length basis, and the parties hereto do not intend that any Commitment Party or its affiliates act or be responsible as a fiduciary to the Borrower, its management, stockholders, creditors or any other person. The Borrower hereby expressly disclaims any fiduciary relationship and agrees that it is responsible for making its own independent judgments with respect to any transactions (including the Transactions) entered into between it and the Commitment Parties. The Borrower also acknowledges that no Commitment Party has advised and none is advising the Borrower as to any legal, accounting, regulatory or tax matters, and that the Borrower is consulting its own advisors concerning such matters to the extent it deems appropriate.
6.  Governing Law, etc.  This Commitment Letter shall be governed by, and construed in accordance with, the law of the State of New York; provided, that, notwithstanding the preceding sentence and the governing law provisions in this Commitment Letter, the Fee Letter and the Definitive Documentation, it is understood and agreed that the interpretation of (i) an “Acquired Business Material Adverse Effect” (as defined in the Conditions Precedent Exhibit) and whether an “Acquired Business Material Adverse Effect” (as defined in the Conditions Precedent Exhibit) has occurred, (ii) the accuracy of any representation made by the Acquired Business and whether as a result of any inaccuracy thereof you (or an affiliate) have the right (without regard to any notice requirement) to terminate your (or its) obligations (or to refuse to consummate the transactions) under the Acquisition Agreement and (iii) whether the transactions have been consummated in accordance with the terms of the Acquisition Agreement, in each case, shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware.  The parties hereto hereby waive any right they may have to a trial by jury with respect to any claim, action, suit or proceeding arising out of or contemplated by this Commitment Letter.  The parties hereto submit to the exclusive jurisdiction of the federal and New York State courts located in the County of New York in connection with any dispute related to, contemplated by, or arising out of this Commitment Letter and agree that any service of process, summons, notice or document by registered mail addressed to such party shall be effective service of process for any suit, action or proceeding relating to any such dispute; provided that, with respect to any suit, action or proceeding arising out of or relating to the Acquisition Agreement or the transactions contemplated thereby and which do not involve any claims by or against us or the Lenders or to which we or the Lenders are not otherwise a party, this 

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sentence shall not override any jurisdiction provisions set forth in the Acquisition Agreement.  The parties hereto irrevocably and unconditionally waive any objection to the laying of venue of any such suit, action or proceeding brought in any such court and agree that any final judgment in any such suit, action or proceeding brought in any such court shall be conclusive and may be enforced in other jurisdictions by suit upon the judgment or in any other manner provided by law. 
7.  PATRIOT Act.  We hereby notify you that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (October 26, 2001), as amended) (the “PATRIOT Act”), the Commitment Parties and the other Lenders may be required to obtain, verify and record information that identifies you and each Guarantor, which information includes your and each such Guarantor’s name and address, and other information that will allow the Commitment Parties and the other Lenders to identify you and each such Guarantor in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective for each Commitment Party and the other Lenders.
8.  Confidentiality.  This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter nor the Fee Letter nor any of their terms or substance shall be disclosed, directly or indirectly, to any other person except (a) to your subsidiaries and your and their respective officers, directors, employees, stockholders, partners, members, accountants, attorneys, agents and advisors who are involved in the consideration of this matter on a confidential basis, (b) as may be compelled in a legal, judicial or administrative proceeding or as otherwise required by law or requested by a governmental authority (in which case you agree to the extent permitted under applicable law to inform us promptly thereof), (c) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Commitment Letter, the Fee Letter, or the transactions contemplated thereby or enforcement hereof and thereof, (d) (i) this Commitment Letter (including the Term Sheets), (ii) to the extent redacted in a customary manner, the Fee Letter, and (iii) a generic description of the sources and uses (in a manner that does not disclose the amount of any individual fees paid in connection with the Transactions), in each case, may be disclosed to the Target and its officers, directors, employees, accountants, attorneys, agents and advisors on a confidential basis, (e) with respect to the Commitment Letter only, to rating agencies, (f) you may disclose the existence of the Fee Letter and a generic description of the sources and uses (in a manner that does not disclose the amount of any individual fees paid in connection with the Transactions) in connection with the Transactions as part of any projections or pro forma information in customary marketing materials or (g) after your acceptance of this Commitment Letter and the Fee Letter, you may disclose this Commitment Letter (but not the Fee Letter) and the existence of the Fee Letter and the types of provisions (but not the economic terms and not the amount of any individual fees paid in connection with the Transactions (other than a generic description of the sources and uses)) contained therein in filings with the SEC and other applicable regulatory authorities and stock exchanges, as required by law.  The foregoing restrictions shall cease to apply in respect of the Commitment Letter (but not the Fee Letter) one year following the termination of this Commitment Letter in accordance with its terms.  
Each Commitment Party will treat as confidential all confidential information provided to it hereunder or in connection with the Transactions, including, without limitation, the Company Materials and the Information and shall use such confidential information solely for the purpose of providing the services contemplated hereby in connection with the Transactions; provided, that nothing herein shall prevent such person from disclosing any such information (i) to any Lenders or participants or prospective Lenders or participants (other than any Disqualified Institution or other prospective Lender or participant to whom you have affirmatively declined to provide your consent (to the extent such consent is required hereunder) to the assignment of Loans or Commitments hereunder) and any direct or indirect contractual counterparties to any swap or derivative transaction relating to the Borrower or its obligations under either Facility, in each case, who have agreed to be bound by the confidentiality obligations of this Commitment Letter or otherwise acknowledge and accept that such information is being disseminated on 

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a confidential basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to you and the Arrangers, including, without limitation, as agreed in any confidential information memorandum or other marketing or offering materials) in accordance with the standard syndication processes of the Arrangers or customary market standards for dissemination of such type of information, which shall in any event require “click-through” or other affirmative actions on the part of recipient to access such information (collectively, “Specified Counterparties”), (ii) to its officers, directors, employees, stockholders, partners, members, accountants, attorneys, agents, advisors and to actual or prospective assignees and participants directly involved in the Transactions on a confidential basis, (iii) as may be compelled in legal, judicial or administrative proceeding or as otherwise required by law or requested by a governmental authority (in which case such person agrees to the extent permitted under applicable law to inform you promptly thereof), (iv) to any rating agency on a confidential basis, (v) as requested by any state, federal or foreign authority or examiner regulating banks or banking, (vi) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Commitment Letter, the Fee Letter, or the transactions contemplated thereby or enforcement hereof and thereof, (vii) to any of its affiliates directly involved in the Transactions and on a confidential basis and (viii) to the extent such confidential information becomes publicly available (x) other than as a result of a breach of this provision or (y) to it from a source, other than the Borrower on a non-confidential basis, which it has no reason to believe has any confidentiality or fiduciary obligation to the Borrower with respect to such information; provided, that the foregoing obligations of the Commitment Parties shall remain in effect until the earlier of (i) one year from the date hereof, and (ii) the execution and delivery of the Definitive Documentation by the parties thereto, at which time any confidentiality undertaking in the Definitive Documentation shall supersede the provisions in this paragraph.
9.  Miscellaneous.  This Commitment Letter shall not be assignable by you without our prior written consent (and any purported assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto and the indemnified persons.  We may assign our commitments and agreements hereunder, in whole or in part, to any of our respective affiliates (it being understood and agreed that no such assignment to an affiliate shall reduce the amount of our commitments hereunder or otherwise relieve, release or novate us from our obligations hereunder except as expressly provided for in Section 2 above) and, subject to the applicable requirements set forth in Section 2 above, to any proposed Lender prior to the Closing Date.  This Commitment Letter may not be amended or waived except by an instrument in writing signed by you and us.  This Commitment Letter may be executed in any number of counterparts, each of which shall be an original, and all of which, when taken together, shall constitute one agreement.  Delivery of an executed signature page of this Commitment Letter by electronic transmission (including in “.pdf” or “.tif” format) shall be effective as delivery of a manually executed counterpart hereof.  This Commitment Letter and the Fee Letter are the only agreements that have been entered into among us with respect to the Facilities and set forth the entire understanding of the parties with respect thereto.  No individual has been authorized by any Commitment Party or its affiliates to make any oral or written statements that are inconsistent with this Commitment Letter or the Fee Letter.
Each of the parties hereto agrees that each of this Commitment Letter and the Fee Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including any obligation to negotiate the Definitive Documentation in good faith (it being acknowledged and agreed that the effectiveness and funding of the Facilities is subject to the conditions precedent specified in the Conditions Precedent Exhibit, including the execution and delivery of the Definitive Documentation by the parties hereto in a manner consistent with this Commitment Letter (including the Documentation Principles)).  It is understood and agreed that nothing contained in this Commitment Letter or the Fee Letter obligates you or any of your affiliates to consummate the Acquisition or draw down any portion of the Facilities.  

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The compensation, reimbursement, indemnification, confidentiality, syndication and clear market provisions contained herein and in the Fee Letter shall remain in full force and effect regardless of whether Definitive Documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or our commitments hereunder; provided, that your obligations under this Commitment Letter (other than (i) your obligations with respect to the syndication and clear markets provisions, which shall survive only until the until the earlier of (a) 90 days after the Closing Date and (b) the achievement of a Successful Syndication, and (ii) confidentiality, which shall terminate in accordance with Section 8 hereof) shall automatically terminate and be of no further force and effect (and be superseded by the Definitive Documentation) on the Closing Date and you shall be released from all liability hereunder in connection therewith at such time.  You may terminate our commitments hereunder at any time subject to the provisions of the immediately preceding sentence.
If the foregoing correctly sets forth our agreement, please indicate your acceptance of this Commitment Letter and the Fee Letter by returning to us executed counterparts hereof and of the Fee Letter prior to 11:59 p.m. (New York City time) on the date hereof.  If the Commitment Letter and Fee Letter have not been executed and returned as described in the preceding sentence by such earlier time, then the Commitment Parties’ offer hereunder shall terminate at such earlier time.  After your execution and delivery to us of this Commitment Letter and the Fee Letter, our outstanding commitments with respect to (x) the 364-Day Revolving Credit Facility shall automatically terminate upon the occurrence of the Amendment Effective Date and (y) each Facility in this Commitment Letter shall automatically terminate upon the earliest to occur of (i) with respect to the Bridge Facility, the execution and delivery of the Bridge Documentation, and with respect to the 364-Day Revolving Credit Facility, the execution and delivery of the 364-Day Revolving Credit Facility Documentation, in each case, by all parties thereto, (ii) (A) if the execution and delivery of the Acquisition Agreement does not occur on or prior to September 30, 2014, then September 30, 2014 or (B) if the execution and delivery of the Acquisition Agreement does occur on or prior to September 30, 2014, then upon the earlier to occur of (I) the applicable termination date under the Acquisition Agreement by which date the Borrower or its applicable subsidiary is no longer obligated to consummate the Acquisition thereunder and (II) the date that is six months following the date of the Acquisition Agreement, (such applicable date, the “Commitment Termination Date”), in each case, if the Closing Date shall not have occurred on or prior thereto, (iii) the closing of the Acquisition without the use of the Bridge Facility or the 364-Day Revolving Facility, as applicable and (iv) the date of the abandonment by you of the Acquisition or the date of termination of your obligations under the Acquisition Agreement to consummate the Acquisition in accordance with its terms; provided that the termination of any commitment pursuant to this sentence does not prejudice your rights and remedies in respect of any breach of this Commitment Letter or the Fee Letter that occurred prior to any such termination.
This Commitment Letter supersedes and replaces in its entirety that certain previous commitment letter dated as of May 29, 2014 between MSSF and you and such previous commitment letter is of no further effect.
[SIGNATURE PAGES FOLLOW]

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We are pleased to have been given the opportunity to assist you in connection with this important financing.
Very truly yours, 
 
MORGAN STANLEY SENIOR FUNDING, INC. 
 
 
By:  __/s/ Anish Shah______________    
Name: Anish M. Shah 
Title: Authorized Signatory

[Signature Page to A&R Commitment Letter]
    
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J.P. MORGAN SECURITIES LLC 
 
 
By: /s/ Thomas D. Cassin              
Name: Thomas D. Cassin
Title:  Managing Director
JPMORGAN CHASE BANK, N.A. 
 
 
By:  /s/ Tony Yung                          
Name: Tony Yung 
Title: Executive Director

[Signature Page to A&R Commitment Letter]
    
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Accepted and agreed to as of 
the date first written above by: 
 
TYSON FOODS, INC. 
 
 
By: /s/ Susan White             
Name: Susan White 
Title: Vice President & Treasurer

[Signature Page to A&R Commitment Letter]
    
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Exhibit A
TYSON FOODS, INC. 
364-DAY SENIOR UNSECURED BRIDGE FACILITY 
 
Summary of Principal Terms and Conditions 
June 2, 2014
Capitalized terms not otherwise defined herein shall have the same meaning as specified with respect thereto in the Commitment Letter to which this Exhibit A is attached.

		
	I.
	Parties

		
	Borrower:
	Tyson Foods, Inc., a Delaware corporation (the “Borrower”).

Joint Lead Arrangers
		
	and Joint Bookrunners:
	Morgan Stanley Senior Funding, Inc. (“MSSF”) and J.P. Morgan Securities LLC (in such capacities, the “Arrangers”).

		
	Administrative Agent:
	MSSF (in such capacity, the “Administrative Agent”).

		
	Syndication Agent:
	JPMorgan Chase Bank, N.A. (in such capacity, the “Syndication Agent”).

		
	Lenders:
	A syndicate of banks and other financial institutions, but excluding any Disqualified Institution (the “Bridge Lenders”), arranged by the Arrangers in consultation with and, to the extent required pursuant to Section 2 of the Commitment Letter, with the consent of the Borrower.

		
	II.
	Bridge Facility

		
	Facility:
	A 364-day senior unsecured bridge facility (the “Bridge Facility”) in the amount of $6,750,000,000.

		
	Availability:
	The loans (the “Bridge Loans”) shall be made in a single borrowing on the Closing Date and any undrawn commitments under the Bridge Facility shall automatically be terminated on the Closing Date.

		
	Maturity:
	The Bridge Loans shall mature and be payable in full on the date that is 364 days after the Closing Date.  There shall be no amortization with respect to the Bridge Loans.

		
	Guarantee:
	The indebtedness, obligations and liabilities of the Borrower arising under or in connection with the Bridge Documentation (the “Borrower Obligations”) will be unconditionally guaranteed by Tyson Fresh Meats, Inc. (“TFM”).

In the event that any direct or indirect subsidiary of the Borrower shall guarantee the Existing Revolving Facility or any Material Indebtedness (as defined in the Existing Revolving Facility) of the Borrower, such subsidiary shall also provide a guarantee of 

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the Borrower Obligations (any such subsidiary, together with TFM, the “Guarantors” and, the Guarantors, together with the Borrower, the “Credit Parties”).
Following (i) the redemption, defeasance, prepayment or repayment of the Borrower’s senior notes due 2016 (the “2016 Notes”), (ii) the termination of TFM’s guarantee of the 2016 Notes in full or (iii) a merger of TFM into the Borrower (so long as the Borrower is the surviving entity), the guarantee of TFM shall be released, provided that TFM at such time does not guarantee the Existing Revolving Facility or any other Material Indebtedness (as defined in the Existing Revolving Facility) of the Borrower (unless any such guarantee of the Existing Revolving Facility or other Material Indebtedness of the Borrower shall also be released at such time).
		
	Purpose:
	The proceeds of the Bridge Loans shall be used to finance the Transactions and fees and expenses in connection therewith.

		
	III.
	Certain Payment Provisions

		
	Fees and Interest Rates:
	As set forth on Annex I.

Optional Prepayments and
		
	Commitment Reductions:
	Bridge Loans may be prepaid by the Borrower and commitments may be reduced by the Borrower with prior written notice in minimum amounts of $2,500,000 (and integral multiples of $1,000,000 in excess thereof), in each case without premium or penalty (other than customary break funding indemnification, on terms consistent with the Existing Revolving Facility).  Bridge Loans prepaid may not be reborrowed.

Mandatory Prepayments and
		
	Commitment Reductions:
	The following amounts shall be applied to prepay the Bridge Loans (and, prior to the Closing Date, the commitments under the Bridge Facility, pursuant to the Commitment Letter and Bridge Documentation, shall be automatically and permanently reduced by such amounts):

(a)    100% of the net proceeds received (including into escrow) from any sale or issuance of debt securities or incurrence of other debt for borrowed money (other than (i) Excluded Debt (as defined below) and (ii) debt described in clause (b) below) and equity securities or equity-linked securities (other than issuances (i) pursuant to employee stock or other compensation plans and grants to employees made in the ordinary course of business, (ii) by the Borrower’s subsidiaries to the Borrower or its other subsidiaries and (iii) directors’ qualifying shares and/or other nominal amounts required to be held by persons other than the Borrower or its subsidiaries under applicable law), in each case on or after the Original Commitment Date by the Borrower or any of its subsidiaries and subject to other exceptions to be mutually agreed; 

    
    
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(b)    100% of the committed amount of or (without duplication) 100% of the net proceeds of loans under any term loan facility or term bank debt entered into after the Original Commitment Date for which the Borrower or any of its subsidiaries is the borrower in which the conditions precedent to the availability of such facility on the Closing Date are, taken as a whole, not less favorable to the Borrower than such conditions in the Bridge Facility (other than Excluded Debt); and
(c)    100% of the net proceeds (for one or more transactions in an aggregate amount in excess of $100,000,000 and to the extent not reinvested within six months following receipt thereof (or if the Borrower or its subsidiaries have committed to reinvest such proceeds within such six month period, to the extent not reinvested within three months following such six month period)) of any sale or other disposition (including as a result of casualty or condemnation) in each case on or after the Original Commitment Date by the Borrower or any of its subsidiaries of any assets, except for the sale of inventory or other assets in the ordinary course of business and other exceptions to be mutually agreed.
For the purpose hereof, “Excluded Debt” means (i) intercompany debt among the Borrower and/or its subsidiaries, (ii) existing ordinary course foreign credit lines (including any renewal, extension or replacement thereof), (iii) credit extensions under the Existing Revolving Facility (including pursuant to extensions, modifications or replacements (including the 364-Day Revolving Credit Facility) thereof) up to $1.25 billion, (iv) commercial paper issuances, (v) the Amendment, (vi) purchase money indebtedness, capital lease obligations, industrial revenue bonds and similar obligations, in each case, incurred in the ordinary course of business, (vii) leasing activities in the ordinary course of business and (viii) other debt for borrowed money (other than the Permanent Financing) in an aggregate principal amount up to $100,000,000.  
 
Amounts prepaid pursuant to any mandatory prepayment of the Bridge Loans may not be reborrowed.
		
	IV.
	Certain Conditions

		
	Initial Conditions:
	The Bridge Facility shall be available on the Closing Date, subject to the satisfaction (or waiver) of the conditions precedent set forth in the Conditions Precedent Exhibit.

		
	V.
	Certain Documentation Matters

The Bridge Documentation shall contain representations, warranties, covenants and events of default (including qualifications and exceptions), in each case substantially consistent with the Existing Revolving Facility (except as otherwise specified herein) and otherwise customary for financings of this type or as otherwise agreed by the Borrower 

    
    
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and the Arrangers (it being understood and agreed that the Bridge Documentation shall: (a) not contain any representations and warranties, covenants and events of default that are not contained in the Existing Revolving Facility or as expressly set forth in this Term Sheet and be no less favorable to the Borrower and its subsidiaries than the corresponding provisions of the Existing Revolving Facility; (b) not be subject to any conditions to the availability and initial funding other than those conditions set forth in the Conditions Precedent Exhibit; (c) give due regard to any changes to the Existing Revolving Facility as are required to reflect the Transactions and the operational and strategic requirements of the Borrower as a result of the Transactions as may be mutually and reasonably agreed; and (d) reflect the amendments to the Existing Revolving Facility set forth on Exhibit D to the Commitment Letter but only to the extent such amendments are made to the Existing Revolving Facility pursuant to the Amendment on or prior to the execution of the Bridge Documentation and, in any event, shall be no less favorable to the Borrower and its subsidiaries than the corresponding provisions of the Existing Revolving Facility (clauses (a) through (d), collectively, the “Documentation Principles”) and limited to:
Representations and
		
	Warranties:
	Corporate existence and power; compliance with law; corporate authorization, no contravention, governmental authorization; enforceable obligations; taxes; financial matters; no material adverse change since September 28, 2013; litigation; subsidiaries; liens; no defaults; Investment Company Act; use of proceeds, margin regulations; assets; labor matters; environmental matters; disclosure; ERISA; insurance; solvency; OFAC, FCPA, and PATRIOT Act (in each case, subject to exceptions and materiality qualifiers as set forth in the Existing Revolving Facility or, with respect to OFAC, FCPA and PATRIOT Act, as otherwise agreed by the Borrower and the Arrangers) each to be made on the date of the Bridge Documentation and the borrowing under the Bridge Facility.

		
	Affirmative Covenants:
	Compliance with laws; use of proceeds; payment of obligations; insurance; preservation of each Credit Party’s corporate existence; conduct of business; access; keeping of books; maintenance of properties; financial statements; reporting requirements; notices regarding ERISA, environmental compliance and notice; governmental authorizations; and guarantee requirement (in each case, subject to exceptions, thresholds and materiality qualifiers as set forth in the Existing Revolving Facility); provided that Section 5.11 of the Existing Revolving Facility (Collateral Trigger Date) and any related definitions or other provisions (including those applicable provisions in Section 5.12 of the Existing Revolving Facility)) (collectively, the “Collateral Trigger Date Provisions”) shall not be included in the Bridge Documentation.

		
	Financial Covenants:
	Limited to:

    
    
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(a) a maximum debt to capitalization ratio of 0.60 to 1.00; and
(b) a minimum EBITDA to interest ratio of 3.75 to 1.00.
		
	Negative Covenants:
	Limitations on: liens; mergers, consolidations, liquidations and dissolutions; sales of all or substantially all assets; transactions with affiliates; indebtedness; sale-leasebacks; changes in fiscal year; hedging arrangements (with exceptions for hedging arrangements in the ordinary course not for speculative purposes); negative pledge clauses and clauses restricting subsidiary distributions; and changes in lines of business (in each case, subject to exceptions, thresholds and materiality qualifiers as set forth in the Existing Revolving Facility); provided that (i) the limitations in the final paragraph of Section 6.01(a) restricting the Borrower or any subsidiary from (x) incurring Debt for Borrowed Money if the Debt to Capitalization Ratio Indebtedness would exceed, on a pro forma basis, $3,500,000,000 and (y) incurring Debt to Capitalization Ratio Indebtedness if the aggregate amount of such Debt to Capitalization Ratio Indebtedness of the Subsidiaries that are not Subsidiary Guarantors for which Domestic Subsidiaries are directly or indirectly liable would exceed $100,000,000, in each case, shall not be included (the amendments described in this proviso, collectively, the “Negative Covenant Amendments”).

Unless otherwise defined in the Commitment Letter, all terms used within this “Negative Covenants” shall have the same meaning as specified with respect thereto in the Existing Revolving Facility and all section references shall be references to sections of the Existing Revolving Facility.
		
	Events of Default:
	Nonpayment of principal when due; nonpayment of interest, fees or other amounts after five business days; material inaccuracy of representations and warranties; violation of covenants (subject, in the case of certain affirmative covenants, to a grace period of 30 days after notice); cross-default to Material Indebtedness; bankruptcy events; certain ERISA events; material monetary judgments; invalidity of the Bridge Documentation or the Guarantors’ guarantee (or asserted invalidity by any Credit Party); and change in control (in each case, subject to exceptions, thresholds, materiality qualifiers and grace periods as set forth in the Existing Revolving Facility); provided that the event of default provisions relating to the Collateral Trigger Date Provisions shall not be included (collectively, the “Event of Default Amendments”).

Without limiting (and subject to) the conditions set forth in the Conditions Precedent Exhibit, the occurrence of an event of default (other than with respect to a payment or bankruptcy event of default) shall not entitle the Lenders to terminate the Commitments prior to the Closing Date.  The acceleration of the Bridge Loans shall be permitted at any time after they have been funded only to the extent that an event of default is outstanding and continuing at such time.

    
    
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	Voting:
	Amendments, waivers and consents with respect to the Bridge Documentation shall require the approval of Bridge Lenders (that are not “Defaulting Lenders”) holding not less than a majority of the aggregate amount of the Bridge Loans and commitments under the Bridge Facility, except that (a) the consent of each Bridge Lender affected thereby shall be required with respect to (i) reductions in the amount or extensions of the maturity of any Bridge Loan of such Bridge Lender, (ii) reductions in the rate of interest or any fee or extensions of any due date thereof owing to such Bridge Lender, (iii) increases in the amount or extensions of the expiry date of such Bridge Lender’s commitment and (iv) modifications to certain pro rata provisions of the Bridge Documentation and (b) the consent of 100% of the Bridge Lenders shall be required (i) with respect to modifications to any of the voting percentages and (ii) to (A) permit any Credit Party to assign its rights under the Bridge Documentation or (B) release any guarantor from its guarantee obligations, in each case except as otherwise permitted in the Bridge Documentation.

The Bridge Documentation shall contain customary provisions for replacing non-consenting Bridge Lenders in connection with amendments and waivers thereof requiring the consent of all Bridge Lenders or of all Bridge Lenders directly affected thereby so long as Bridge Lenders holding at least 66% of the aggregate amount of the Bridge Loans and unused commitments shall have consented to such amendment or waiver.
Assignments and
		
	Participations:
	Bridge Lenders will be permitted to assign (other than to any Disqualified Institution), in minimum amounts of $5,000,000 (or if less, the total amount of their commitments), all or a portion of their Bridge Loans and commitments with the prior written consent (not to be unreasonably withheld) of (a) the Borrower, unless (i) the assignee is a Bridge Lender or an affiliate of a Bridge Lender or an Approved Fund (as defined in the Existing Revolving Facility) (each a “Lender Affiliate”), (ii) such consent is not required pursuant to the syndication provisions of the Commitment Letter,  or (iii) (x) prior to the Closing Date, an event of default under the Bridge Documentation for non-payment or bankruptcy has occurred and is continuing or (y) on or after the Closing Date, an event of default under the Bridge Documentation has occurred and is continuing, and (b) the Administrative Agent, unless the assignee is a Lender Affiliate. Assignments will be by novation, i.e. assignees will succeed to the rights and obligations of the assigning Bridge Lenders. Participations will be without restriction (other than no participations can be made to Disqualified Institutions), and participants will be entitled to yield and increased cost protection to the same extent as (but no greater than) the participating Bridge Lenders. Voting rights of participants will be limited as set forth in the Existing Revolving Facility.  The Administrative Agent shall not have any responsibility or obligation to determine whether any Bridge Lender or potential Bridge Lender is a Disqualified Institution and the Administrative Agent shall 

    
    
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have no liability with respect to any assignment or participation made to a person that is a Disqualified Institution; it being understood that the Administrative Agent shall confirm that the requirements of any assignment documentation are satisfied. Promissory notes shall be issued under the Bridge Facility only upon request.

		
	Defaulting Lender:
	The Bridge Documentation shall contain “Defaulting Lender” provisions customary for facilities of this type.

		
	Yield Protection:
	The Bridge Documentation will contain provisions (a) protecting the Bridge Lenders against increased costs or loss of yield resulting from changes in reserve, tax, capital adequacy, liquidity and other requirements of law and from the imposition of or changes in withholding or other taxes and (b) indemnifying the Bridge Lenders for “breakage costs” in connection with, among other things, any prepayment of Eurocurrency Loans on a day other than the last day of an interest period with respect thereto, in each case substantially consistent with the Existing Revolving Facility. The Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III (and all requests, rules, guidelines or directives promulgated under each of the foregoing or issued in connection therewith) shall be deemed to be changes in law referred to in clause (a) above regardless of the date enacted, adopted or issued.  

Expenses and
		
	Indemnification:
	The Borrower shall pay, (a) all reasonable out-of-pocket expenses of the Administrative Agent, the Syndication Agent and the Arrangers and their affiliates associated with the syndication of the Bridge Facility and the preparation, execution, delivery and administration of the Bridge Documentation and any amendment or waiver with respect thereto (including the reasonable fees, disbursements and other charges of a single counsel selected by the Administrative Agent and of such special and local counsel, as the Administrative Agent may deem appropriate in its good faith discretion)) and (b) all out-of- pocket expenses of the Administrative Agent and the Bridge Lenders (including the fees, disbursements and other charges of counsel) in connection with the enforcement of the Bridge Documentation.

The Administrative Agent, the Syndication Agent the Arrangers and the Bridge Lenders (and their affiliates and their respective officers, directors, employees, advisors and agents) will have no liability for, and will be indemnified and held harmless against, any loss, liability, cost or expense incurred in respect of the Bridge Facility or the use or the proposed use of proceeds thereof (except to the extent found in a final nonappealable judgment by a court of competent jurisdiction to have resulted from the bad faith, gross negligence or willful misconduct of the indemnified party); provided that in connection therewith the Borrower shall only be responsible for the fees, charges and disbursements of a single counsel selected by the Administrative Agent and of such special and local counsel as the 

    
    
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Administrative Agent may deem appropriate in its good faith discretion, except that if any indemnified person concludes that its interests conflict with those of other indemnified persons, the Borrower shall also be responsible for the fees, charges and disbursements of separate counsel for such indemnified person.
		
	Governing Law and Forum:
	State of New York; provided, that, notwithstanding the preceding sentence and the governing law provisions in the Bridge Documentation, it is understood and agreed that the interpretation of (i) an “Acquired Business Material Adverse Effect” (as defined in the Conditions Precedent Exhibit) and whether an “Acquired Business Material Adverse Effect” (as defined in the Conditions Precedent Exhibit) has occurred, (ii) the accuracy of any representation made by the Acquired Business and whether as a result of any inaccuracy thereof you (or an affiliate) have the right (without regard to any notice requirement) to terminate your (or its) obligations (or to refuse to consummate the transactions) under the Acquisition Agreement and (iii) whether the transactions have been consummated in accordance with the terms of the Acquisition Agreement, in each case, shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware; provided, further, that, with respect to any suit, action or proceeding arising out of or relating to the Acquisition Agreement or the transactions contemplated thereby and which do not involve any claims by or against us or the Bridge Lenders or to which we or the Bridge Lenders are not otherwise a party, this sentence shall not override any jurisdiction provisions set forth in the Acquisition Agreement.

Counsel to the 
Administrative Agent, the
Syndication Agent and
		
	the Arrangers:
	Weil, Gotshal & Manges LLP.

    
    
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Annex I to Exhibit A
Interest and Certain Fees
		
	Interest Rate Options:
	The Borrower may elect that the Bridge Loans bear interest at a rate per annum equal to (a) the ABR plus the Applicable Margin or (b) the Eurocurrency Rate plus the Applicable Margin.

As used herein:
“ABR” means, for any day, a rate per annum equal to the greatest of (i) the rate of interest publicly announced by MSSF as its prime rate in effect on such day at its principal office in New York City (the “Prime Rate”), (ii) the federal funds effective rate on such day plus 0.50% per annum and (iii) the Eurocurrency 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% per annum; provided that, for the avoidance of doubt, the Eurocurrency Rate for any day shall be based on the rate appearing on the Reuters LIBOR 01 page (or on any successor or substitute page of such page) at approximately 11:00 a.m. London time on such day. Any change in the ABR due to a change in the Prime Rate, the federal funds effective rate or the Eurocurrency Rate shall be effective from and including the effective date of such change in the Prime Rate, the federal funds effective rate or the Eurocurrency Rate, respectively. Bridge Loans bearing interest based upon the ABR will be available on same-day notice if requested by 12:00 noon, New York City time.
“Applicable Margin” means a spread based upon the Applicable Ratings, as set forth in the table appearing at the end of this Annex I.
“Eurocurrency Rate” means the rate at which deposits in the London interbank market in U.S. dollars for one, two, three or six months, as selected by the Borrower, are quoted on the Reuters LIBOR 01 page (or on any successor or substitute page of such page). The applicable Eurocurrency Rate will be adjusted for U.S. statutory reserve requirements for eurocurrency liabilities, if any (presently zero).
The “Applicable Ratings” in effect at any time shall be (1) the Facility Ratings, if available from each of S&P, Moody’s and Fitch, and (2) if the Facility Ratings are not available from each rating agency, the Corporate Ratings.
The “Corporate Ratings” in effect at any time shall be (1) the Borrower’s corporate credit rating (or at any time when there is no corporate credit rating in effect, the Borrower’s Index Rating) from S&P, (2) the Borrower’s corporate family rating (or at any time when there is no corporate family rating in effect, the Borrower’s Index Rating) from Moody’s and (3) the Borrower’s 

    
US_ACTIVE:\44489948\11\99980.0025

- 2 -

issuer default rating (or at any time when there is no issuer default rating in effect, the Borrower’s Index Rating) from Fitch.
The “Index Rating” means, for any rating agency at any time, the rating then in effect from such rating agency applicable to the Borrower’s senior, unsecured, non-credit enhanced (other than by guarantees of subsidiaries that also guarantee the obligations under the Bridge Facility) long-term debt for borrowed money.
The “Facility Ratings” in effect at any time shall be the ratings of the Bridge Facility, if any, from S&P, Moody’s and Fitch.
		
	Interest Payment Dates:
	In the case of Bridge Loans bearing interest based upon the ABR (“ABR Loans”), quarterly in arrears.

In the case of Bridge Loans bearing interest based upon the Eurocurrency Rate (“Eurocurrency Loans”), on the last day of each relevant interest period and, in the case of any interest period longer than three months, on each successive date three months after the first day of such interest period.

		
	Commitment Fees:
	The Borrower shall pay, or cause to be paid, commitment fees (the “Commitment Fees”) to each Bridge Lender under the Bridge Facility calculated at a rate per annum equal to the Applicable Commitment Fee Rate, as determined in accordance with the grid below based on the Corporate Ratings then in effect, on the daily average undrawn commitments of such Bridge Lender under the Bridge Facility, accruing during the period commencing on the later of (i) the date that is 45 days following the Original Commitment Date and (ii) the date of execution of the Bridge Documentation, payable quarterly in arrears and upon final repayment or termination of the Bridge Facility:

	
		
	Corporate Ratings 
(S&P, Moody’s and Fitch)
	Applicable Commitment Fee Rate

	at least BBB- and Baa3 and BBB-
	0.175%

	less than BBB- or Baa3 or BBB-
	0.250%

		
	Duration Fees:
	The Borrower shall pay, or cause to be paid, duration fees (the “Duration Fees”) for the account of each Bridge Lender in amounts equal to the applicable percentage, as determined in accordance with the grid below based on the Corporate Ratings then in effect, of the principal amount of the Bridge Loan of such Bridge Lender outstanding at the close of business, New York City time, on each date set forth in the grid below, payable on each such date:

    
US_ACTIVE:\44489948\11\99980.0025

- 3 -

	
				
	Duration Fee

	Corporate Ratings 
(S&P, Moody’s and Fitch)
	90 days after the Closing Date
	180 days after the Closing Date
	270 days after the Closing Date

	at least BBB- and Baa3 and BBB-
	0.50%
	0.75%
	1.00%

	less than BBB- or Baa3 or BBB-
	0.75%
	1.00%
	1.50%

		
	Default Rate:
	At any time when any Credit Party is in default in the payment of any amount of principal due under the Bridge Facility, the overdue amount shall accrue interest at 2% above the rate otherwise applicable thereto.  Upon any payment default in connection with overdue interest, fees and other amounts, such overdue amounts shall accrue interest at 2% above the rate applicable to ABR Loans.  

		
	Rate and Fee Basis:
	All per annum rates shall be calculated on the basis of a year of 360 days (or 365/366 days, in the case of ABR Loans the interest rate payable on which is then based on the Prime Rate) for actual days elapsed.

    
US_ACTIVE:\44489948\11\99980.0025

TYSON FOODS, INC.
PRICING GRID
	
									
	Applicable Ratings (S&P, Moody’s and Fitch)
	Applicable Margin

	Closing Date through 89 days after Closing Date
	90 days after Closing Date through 179 days after Closing Date
	180 days after Closing Date through 269 days after Closing Date
	270 days after Closing Date and thereafter

	ABR Loans
	Eurocurrency Loans
	ABR Loans
	Eurocurrency Loans
	ABR Loans
	Eurocurrency Loans
	ABR Loans
	Eurocurrency Loans

	Rating Level 1: BBB+/Baa1/BBB+ or above
	25.0 bps
	125.0 bps
	50.0 bps
	150.0 bps
	75.0 bps
	175.0 bps
	125.0 bps
	225.0 bps

	Rating Level 2: BBB/Baa2/BBB
	50.0 bps
	150.0 bps
	75.0 bps
	175.0 bps
	100.0 bps
	200.0 bps
	150.0 bps
	250.0 bps

	Rating Level 3: BBB-/Baa3/BBB-
	75.0 bps
	175.0 bps
	100.0 bps
	200.0 bps
	125.0 bps
	225.0 bps
	175.0 bps
	275.0 bps

	Rating Level 4: BB+/Ba1/BB+
	100.0 bps
	200.0 bps
	125.0 bps
	225.0 bps
	175.0 bps
	275.0 bps
	225.0 bps
	325.0 bps

	Rating Level 5: BB/Ba2/BB or lower or unrated
	150.0 bps
	250.0 bps
	175.0 bps
	275.0 bps
	225.0 bps
	325.0 bps
	275.0 bps
	375.0 bps

In the event of split Rating Levels, the Applicable Margin will be based upon the Rating Level in effect for two of the rating agencies, or, if all three rating agencies have different Rating Levels, then the Applicable Margin will be based upon the Rating Level that is between the Rating Levels of the other two rating agencies.

    
US_ACTIVE:\44489948\11\99980.0025

Exhibit B
TYSON FOODS, INC. 
364-DAY SENIOR UNSECURED REVOLVING CREDIT FACILITY 
 
Summary of Principal Terms and Conditions 
June 2, 2014
Capitalized terms not otherwise defined herein shall have the same meaning as specified with respect thereto in the Commitment Letter to which this Exhibit B is attached.

		
	I.
	Parties

		
	Borrower:
	Tyson Foods, Inc., a Delaware corporation (the “Company”) and certain subsidiaries of the Company to be mutually determined (the “Subsidiary Borrowers” and, together with the Company, the “Borrowers”).

Joint Lead Arrangers
		
	and Joint Bookrunners:
	Morgan Stanley Senior Funding, Inc. (“MSSF”) and J.P. Morgan Securities LLC (in such capacities, the “Arrangers”).

		
	Administrative Agent:
	MSSF (in such capacity, the “Administrative Agent”).

		
	Syndication Agent:
	JPMorgan Chase Bank, N.A. (in such capacity, the “Syndication Agent”).

		
	Lenders:
	A syndicate of banks and other financial institutions, but excluding any Disqualified Institution (the “364-Day Revolving Lenders”), arranged by the Arrangers in consultation with and, to the extent required pursuant to Section 2 of the Commitment Letter, with the consent of the Company.

		
	II.
	364-Day Revolving Credit Facility

		
	Facility:
	A 364-day senior unsecured revolving credit facility (the “364-Day Revolving Credit Facility”; the commitments thereunder being called the “Revolving Commitments” and the loans thereunder being called the “Revolving Loans”) in the amount of $1,000,000,000.

		
	Availability:
	The 364-Day Revolving Credit Facility will be available for borrowings by the Borrowers on a revolving basis during the period commencing on the Closing Date and ending on the Facility Termination Date (as defined below).  Revolving Loans may be repaid and re-borrowed until the Facility Termination Date. 

		
	Maturity:
	The “Facility Termination Date” shall be the date that is 364 days after the Closing Date.

		
	Guarantee:
	The indebtedness, obligations and liabilities of the Borrowers arising under or in connection with the 364-Day Revolving 

    
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Credit Documentation (the “Borrower Obligations”) will be unconditionally guaranteed jointly and severally by the Company and Tyson Fresh Meats, Inc. (“TFM”).
In the event that any direct or indirect subsidiary of the Company shall guarantee any Material Indebtedness (as defined in the Existing Revolving Facility) of the Company, such subsidiary shall also provide a guarantee (any such subsidiary, together with TFM, the “Guarantors”).
Following (i) the redemption, defeasance, prepayment or repayment of the Company’s senior notes due 2016 (the “2016 Notes”), (ii) the termination of TFM’s guarantee of the 2016 Notes in full or (iii) a merger of TFM into the Company (so long as the Company is the surviving entity), the guarantee of TFM shall be released, provided that TFM at such time does not guarantee any other Material Indebtedness (as defined in the Existing Revolving Facility) of the Company (unless any such guarantee of other Material Indebtedness of the Company shall also be released at such time).
		
	Purpose:
	The proceeds of the Revolving Loans shall be used for general corporate purposes of the Company and its subsidiaries.

		
	III.
	Certain Payment Provisions

		
	Fees and Interest Rates:
	As set forth on Annex I.

Optional Prepayments and
		
	Commitment Reductions:
	Substantially consistent with the Existing Revolving Facility.

Mandatory Commitment
		
	Reductions:
	The Revolving Commitments shall be automatically:

    
(i) terminated in full, upon the occurrence of the Amendment Effective Date; and
    
(ii) permanently reduced by 100% of the committed amount of or (without duplication) 100% of the net proceeds of loans under any revolving credit facility or revolving bank debt entered into after the Original Commitment Date for which the Company or any of its domestic subsidiaries is the borrower (other than commitments and net proceeds of loans under the Existing Revolving Facility, in effect as of the Original Commitment Date).
		
	IV.
	Certain Conditions

		
	Initial Conditions:
	The 364-Day Revolving Credit Facility shall be available on the Closing Date, subject to the satisfaction (or waiver) of the conditions precedent set forth in the Conditions Precedent Exhibit.

		
	On-Going Conditions:
	Substantially consistent with the Existing Revolving Facility.

    
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	V.
	Certain Documentation Matters

The 364-Day Revolving Credit Documentation shall contain representations, warranties, covenants and events of default (including qualifications and exceptions), in each case substantially consistent with the Existing Revolving Facility (except as otherwise specified herein) and otherwise customary for financings of this type or as otherwise agreed by the Borrower and the Arrangers (it being understood and agreed that the 364-Day Revolving Credit Documentation shall be subject to the Documentation Principals) and limited to the following:
Representations and
		
	Warranties:
	Substantially consistent with the Existing Revolving Facility; provided that representations and warranties related to OFAC, FCPA and the Patriot Act (collectively, the “OFAC/FCPA Representations”) shall be included.

		
	Affirmative Covenants:
	Substantially consistent with the Existing Revolving Facility; provided that the Collateral Trigger Date Provisions shall not be included in the 364-Day Revolving Credit Documentation.

		
	Financial Covenants:
	Limited to:

(a) a maximum debt to capitalization ratio of 0.60 to 1.00; and
(b) a minimum EBITDA to interest ratio of 3.75 to 1.00.
		
	Negative Covenants:
	Substantially consistent with the Existing Revolving Facility; provided that the Negative Covenant Amendments shall be made to the 364-Day Revolving Credit Facility.

		
	Events of Default:
	Substantially consistent with the Existing Revolving Facility; provided that the Event of Default Amendments shall be made to the 364-Day Revolving Credit Facility.

		
	Voting:
	Substantially consistent with the Existing Revolving Facility.

Assignments and
		
	Participations:
	Substantially consistent with the Existing Revolving Facility; provided that the Borrower’s consent to assignments shall not be required to the extent not required pursuant to the syndication provisions of the Commitment Letter.

		
	Defaulting Lender:
	Substantially consistent with the Existing Revolving Facility.

		
	Yield Protection:
	Substantially consistent with the Existing Revolving Facility.

Expenses and
		
	Indemnification:
	Substantially consistent with the Existing Revolving Facility.

		
	Governing Law and Forum:
	State of New York; provided, that, notwithstanding the preceding sentence and the governing law provisions in the 364-Day Revolving Credit Documentation, it is understood and agreed that the interpretation of (i) a “Acquired Business Material Adverse Effect” (as defined in the Conditions Precedent Exhibit) 

    
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- 4 -

and whether an “Acquired Business Material Adverse Effect” (as defined in the Conditions Precedent Exhibit) has occurred, (ii) the accuracy of any representation made by the Acquired Business and whether as a result of any inaccuracy thereof you (or an affiliate) have the right (without regard to any notice requirement) to terminate your (or its) obligations (or to refuse to consummate the transactions) under the Acquisition Agreement and (iii) whether the transactions have been consummated in accordance with the terms of the Acquisition Agreement, in each case, shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware; provided, further, that, with respect to any suit, action or proceeding arising out of or relating to the Acquisition Agreement or the transactions contemplated thereby and which do not involve any claims by or against us or the 364-Day Revolving Lenders or to which we or the 364-Day Revolving Lenders are not otherwise a party, this sentence shall not override any jurisdiction provisions set forth in the Acquisition Agreement.
Counsel to the 
Administrative Agent, the
Syndication Agent and
		
	the Arrangers:
	Weil, Gotshal & Manges LLP.

    
US_ACTIVE:\44489948\11\99980.0025

Annex I to Exhibit B
Interest and Certain Fees
		
	Interest Rate Options:
	The Borrowers may elect that the Revolving Loans bear interest at a rate per annum equal to (a) the ABR plus the Applicable Margin or (b) the Eurocurrency Rate plus the Applicable Margin.

As used herein:
“ABR” means, for any day, a rate per annum equal to the greatest of (i) the rate of interest publicly announced by MSSF as its prime rate in effect on such day at its principal office in New York City (the “Prime Rate”), (ii) the federal funds effective rate on such day plus 0.50% per annum and (iii) the Eurocurrency 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% per annum; provided that, for the avoidance of doubt, the Eurocurrency Rate for any day shall be based on the rate appearing on the Reuters LIBOR 01 page (or on any successor or substitute page of such page) at approximately 11:00 a.m. London time on such day. Any change in the ABR due to a change in the Prime Rate, the federal funds effective rate or the Eurocurrency Rate shall be effective from and including the effective date of such change in the Prime Rate, the federal funds effective rate or the Eurocurrency Rate, respectively. Revolving Loans bearing interest based upon the ABR will be available on same-day notice if requested by 12:00 noon, New York City time.
“Applicable Margin” means a spread based upon the Applicable Ratings, as set forth in the table appearing at the end of this Annex I.
“Eurocurrency Rate” means the rate at which deposits in the London interbank market in U.S. dollars for one, two, three or six months, as selected by the applicable Borrower, are quoted on the Reuters LIBOR 01 page (or on any successor or substitute page of such page). The applicable Eurocurrency Rate will be adjusted for U.S. statutory reserve requirements for eurocurrency liabilities, if any (presently zero).
The “Applicable Ratings” in effect at any time shall be (1) the Facility Ratings, if available from each of S&P, Moody’s and Fitch, and (2) if the Facility Ratings are not available from each rating agency, the Corporate Ratings.
The “Corporate Ratings” in effect at any time shall be (1) the Company’s corporate credit rating (or at any time when there is no corporate credit rating in effect, the Company’s Index Rating) from S&P, (2) the Company’s corporate family rating (or at any time when there is no corporate family rating in effect, the Company’s Index Rating) from Moody’s and (3) the Company’s 

US_ACTIVE:\44489948\11\99980.0025

- 2 -

issuer default rating (or at any time when there is no issuer default rating in effect, the Company’s Index Rating) from Fitch.
The “Index Rating” means, for any rating agency at any time, the rating then in effect from such rating agency applicable to the Company’s senior, unsecured, non-credit enhanced (other than by guarantees of subsidiaries that also guarantee the obligations under the 364-Day Revolving Credit Facility) long-term debt for borrowed money.
The “Facility Ratings” in effect at any time shall be the ratings of the 364-Day Revolving Credit Facility, if any, from S&P, Moody’s and Fitch.
		
	Interest Payment Dates:
	In the case of Revolving Loans bearing interest based upon the ABR (“ABR Loans”), quarterly in arrears.

In the case of Revolving Loans bearing interest based upon the Eurocurrency Rate (“Eurocurrency Loans”), on the last day of each relevant interest period and, in the case of any interest period longer than three months, on each successive date three months after the first day of such interest period.

		
	Facility Fee:
	A Facility Fee (the “Facility Fee”) will accrue and be payable to the 364-Day Revolving Lenders on the aggregate commitments under the 364-Day Revolving Credit Facility, whether used or unused (and on Revolving Loans outstanding under the 364-Day Revolving Credit Facility), during the period commencing on the date of execution of the credit agreement for the 364-Day Revolving Credit Facility, and will be payable in arrears at the end of each calendar quarter and at maturity. The rates at which the Facility Fees accrue will be based upon the Applicable Ratings, as set forth in the table appearing at the end of this Annex I.

		
	Default Rate:
	At any time when any Credit Party is in default in the payment of any amount of principal due under the 364-Day Revolving Credit Facility, the overdue amount shall accrue interest at 2% above the rate otherwise applicable thereto.  Upon any payment default in connection with overdue interest, fees and other amounts, such overdue amounts shall accrue interest at 2% above the rate applicable to ABR Loans.  

		
	Rate and Fee Basis:
	All per annum rates shall be calculated on the basis of a year of 360 days (or 365/366 days, in the case of ABR Loans the interest rate payable on which is then based on the Prime Rate) for actual days elapsed.

US_ACTIVE:\44489948\11\99980.0025

TYSON FOODS, INC.
PRICING GRID
	
				
	Applicable Ratings (S&P, Moody’s and Fitch)
	Applicable Margin
	Facility Fee

	ABR Loans
	Eurocurrency Loans
	 

	Rating Level 1: BBB+/Baa1/BBB+ or above
	0.0 bps
	100.0 bps
	12.5 bps

	Rating Level 2: BBB/Baa2/BBB
	10.0 bps
	110.0 bps
	15.0 bps

	Rating Level 3: BBB-/Baa3/BBB-
	30.0 bps
	130.0 bps
	20.0 bps

	Rating Level 4: BB+/Ba1/BB+
	50.0 bps
	150.0 bps
	25.0 bps

	Rating Level 5: BB/Ba2/BB or lower or unrated
	82.5 bps
	182.5 bps
	30.0 bps

In the event of split Rating Levels, the Applicable Margin and Facility Fee will be based upon the Rating Level in effect for two of the rating agencies, or, if all three rating agencies have different Rating Levels, then the Applicable Margin and Facility Fee will be based upon the Rating Level that is between the Rating Levels of the other two rating agencies.

US_ACTIVE:\44489948\11\99980.0025

Exhibit C
TYSON FOODS, INC.
364-DAY SENIOR UNSECURED BRIDGE FACILITY
364-DAY SENIOR UNSECURED REVOLVING CREDIT FACILITY

Conditions Precedent to Availability of Loans

Capitalized terms not otherwise defined herein shall have the same meaning as specified with respect thereto in the Commitment Letter to which this Exhibit C is attached. 

The commitments of the Lenders in respect to the Facilities and the extension of credit thereunder shall be conditioned upon satisfaction (or waiver) of the following conditions precedent on or before the Commitment Termination Date:

1.    With respect to the Bridge Facility, the negotiation, execution and delivery by the Borrower and Guarantor of the definitive documentation for the Bridge Facility, consistent with the applicable terms of the Commitment Letter and taking into account the Documentation Principles (the “Bridge Documentation”); with respect to the 364-Day Revolving Credit Facility, the negotiation, execution and delivery by the Borrowers and Guarantor of the definitive documentation for the 364-Day Revolving Credit Facility, consistent with the applicable terms of the Commitment Letter and taking into account the Documentation Principles (the “364-Day Revolving Credit Facility Documentation” and, together with the Bridge Documentation, the “Definitive Documentation”); provided that (a) the Definitive Documentation shall be on terms, in a form and not include any changes to the Existing Revolving Facility that would, in any case, impair the availability or effectiveness of the Facilities if the conditions set forth in this Exhibit C are satisfied and (b) if on or prior to the Closing Date any direct or indirect subsidiary of the Company (other than TFM) shall guarantee the Existing Revolving Facility or any Material Indebtedness (as defined in the Existing Revolving Facility) of the Company, such subsidiary shall be required to substantially concurrently (or, if later upon the execution of the Definitive Documentation) guarantee the Bridge Facility and 364-Day Revolving Credit Facility.  

2.    The Acquisition Agreement shall have been executed by the Borrower and the Target in form and substance reasonably satisfactory to the Arrangers.  Prior to or substantially concurrently with the initial funding under the Facilities, the Acquisition shall be consummated in accordance with the terms and conditions of the Acquisition Agreement and no provision of the Acquisition Agreement shall have been waived, amended, supplemented or otherwise modified, and no consent or request by the Company or any of its subsidiaries shall have been provided thereunder, in each case which is materially adverse to the interests of the Commitment Parties without each Arranger’s prior written consent (such consent not to be unreasonably withheld, delayed or conditioned). Without limiting the foregoing, it is understood that any increase, by more than the Maximum Purchase Price Percentage (as defined in the Fee Letter), of the purchase consideration for the Acquisition set forth in the Proposal Letter shall be considered materially adverse to the interests of the Commitment Parties.

3.    The Arrangers shall have received: (i) unaudited consolidated and (to the extent publicly available) consolidating balance sheets and related statements of income, stockholders’ equity and cash flows of the Company and its subsidiaries for each subsequent fiscal quarter ended subsequent to September 28, 2013 and at least 45 days prior to the Closing Date; (ii) to the extent provided to the Company by the Target or otherwise publicly available prior to the Closing Date, unaudited consolidated and consolidating balance sheets and related statements of income, stockholders’ equity and cash flows of the Target and its subsidiaries for each subsequent fiscal quarter ended subsequent to June 29, 2013 and at least 45 days prior to the Closing Date; and (iii) if, and to the extent required by Rule 3-05 of Regulation S-X, customary pro forma financial statements of the Company which meet the requirements of Regulation S-X under the Securities Act and all other accounting rules and regulations of the SEC 

    
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- 2 -

promulgated thereunder and required to be included in a Registration Statement under such Act on Form S-3.

4.    The Lenders, the Administrative Agent, the Syndication Agent, the Commitment Parties and the Arrangers shall have received all fees required to be paid and due on the Closing Date, and all expenses for which invoices have been presented at least 2 business days prior to the Closing Date, on or prior the Closing Date.

5.    The Administrative Agent shall have received: (A) (i) legal opinions from such counsel to the Company as may be reasonably required by the Administrative Agent, (ii) corporate organizational documents, good standing certificates (to the extent applicable in the jurisdiction of organization of the Borrower(s) and the Guarantors) and secretary certificates and officer certificates, (iii) certificates from the chief financial officer or other officer of equivalent duties of the Company demonstrating the solvency (on a consolidated basis) of the Company and its subsidiaries as of the Closing Date, on a pro forma basis for the Transactions, substantially in the form of Exhibit E to this Commitment Letter, (iv) corporate or other applicable resolutions with respect to the Borrower(s) and the Guarantors approving the Transactions, and (v) borrowing notices, each of the items specified in clauses (a)(i) through (a)(v) as is customary for transactions of this type and, to the extent applicable, in substantially the same form as used in the Existing Revolving Facility (as revised to give effect to this Commitment Letter); and (B) at least 3 business days prior to the Closing Date, documentation required under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT ACT, to the extent reasonably requested by any Lender at least 10 business days prior to the Closing Date.

6.    There shall exist no default or event of default under the Definitive Documentation with respect to (a) non-payment of principal and interest, (b) bankruptcy, (c) cross-default to the Existing Revolving Facility (whether as a result of the Amendment or the replacement thereof with the 364-Day Revolving Credit Facility; it being understood that the purpose of the 364-Day Revolving Credit Facility is to take out the Existing Revolving Facility in the event the Amendment is not obtained) or (d) breach of any financial covenant or covenant with respect to (i) maintenance of corporate existence of the Company, (ii) indebtedness or (iii) liens, at the time of or after giving effect to the extensions of credit under the Facilities on the Closing Date (collectively, the “Specified Defaults”).

7.    The following representations shall be true and correct as of the Closing Date:  (i) the representations made by or on behalf of the Acquired Business in the Acquisition Agreement, but only to the extent that the Company (or a subsidiary) has the right to terminate its obligations to consummate the Acquisition under the Acquisition Agreement as a result of a breach of such representations in the Acquisition Agreement (the “Acquisition Agreement Representations”) and (ii) the Specified Representations (as defined below), it being understood that the commitments of the Lenders in respect of the Facilities and the extensions of credit thereunder on the Closing Date shall not be conditioned on the accuracy or correctness of any representation or warranty other than as set forth in this paragraph 7.  For purposes hereof, “Specified Representations” means the representations and warranties in the form of the Existing Revolving Facility relating to (a) corporate existence and power, (b) corporate authorization and enforceability of the Definitive Documentation, (c) no contravention of the Definitive Documentation with organizational documents or any material applicable law or order of any court or governmental authority, (d) accuracy and completeness of the Company’s historical financial statements in accordance with generally accepted accounting principles in all material respects, (e) solvency, (f) Federal Reserve margin regulations, (g) the Investment Company Act and (h) OFAC, FCPA and Patriot Act. 

8.    There not having occurred since June 29, 2013 any event, circumstance, condition, change or effect that, individually or in the aggregate, constitutes a Acquired Business Material Adverse Effect (as defined below).  For the purposes hereof, “Acquired Business Material Adverse Effect” shall have the meaning set forth in the Acquisition Agreement as of the date of execution thereof by the Borrower and the Target in form and substance reasonably satisfactory to the Arrangers.

    
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9.    The Borrower shall, as of the Closing Date, be in pro forma compliance (giving effect to the Transactions) with each of the financial covenants set forth in the “Financial Covenants” sections of the Term Sheets.

10.    Solely with respect to the 364-Day Revolving Credit Facility (i) the Amendment Effective Date shall not have occurred and (ii) the outstanding loans and other obligations under the Existing Revolving Facility shall have been repaid and the commitments thereunder shall have been terminated.

    
US_ACTIVE:\44489948\11\99980.0025

Exhibit D
TYSON FOODS, INC.
364-DAY SENIOR UNSECURED BRIDGE FACILITY
364-DAY SENIOR UNSECURED REVOLVING CREDIT FACILITY

Amendments to the Existing Revolving Facility

Article III – Representations and Warranties – Add OFAC, FCPA and PATRIOT Act representations and warranties consistent with those to be agreed by the Borrower and the Arrangers in connection with the Bridge Facility and the 364-Day Revolving Credit Facility in accordance with the Terms Sheets.

Article VI - Affirmative Covenants

		
	•
	Section 5.07 (Compliance with Laws) - Delete requirement for the Company to make all reasonable efforts to ensure that all of its tenants, contractors etc. comply with laws

		
	•
	Section 5.10 (Governmental Authorizations) - Delete provision 

		
	•
	Section 5.11 (Collateral Trigger Date) - Delete provision 

		
	•
	Section 5.12 (Further Assurances) - Delete provision 

Article VI - Negative Covenants

		
	•
	Section 6.01 (Indebtedness)

		
	◦
	Delete limitation on Debt to Capitalization Ratio Indebtedness for Borrowed Money of $3.64Bn prior to October 31, 2013 and $3.5Bn thereafter 

		
	◦
	Delete limitation on Debt to Capitalization Ratio Indebtedness of Subsidiaries that are not Subsidiary Guarantors for which Domestic Subsidiaries are directly or contingently liable of $100MM 

		
	◦
	Add Priority Debt (subsidiary debt and liens) basket of 15% of Consolidated Net Tangible Assets 

		
	•
	Section 6.02 (Liens) 

		
	o
	Delete restriction in the introductory sentence on assigning or selling income or revenues

		
	o
	Delete limitation on Liens on cash, cash equivalents or marketable securities under Swap Agreements to $300MM 

		
	o
	Replace $100MM general Liens basket with a Priority Debt basket of 15% of Consolidated Net Tangible Assets 

		
	•
	Section 6.03 (Fundamental Changes; Business Activities) – Amend to permit the Company to merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, as long as the Company is the surviving entity 

		
	•
	Section 6.04 (Asset Sales) - Replace with general basket of 25% of Total Assets 

		
	•
	Section 6.05 (Sale/Leaseback Transactions) - Delete provision 

		
	•
	Section 6.08 (Restrictive Agreements) - Delete provision

		
	•
	Section 6.10 (Debt to Capitalization Ratio) – Increase the maximum Debt to Capitalization Ratio of 0.50 to 1.00 to 0.60 to 1.00

		
	•
	Section 6.11 (Change in Fiscal Periods) - Delete provision 

Article VII - Events of Default 

		
	•
	Delete clause (m) (Invalidity of Loan Document) 

		
	•
	Delete clause (p) (Failure of Perfection of Lien)

    
US_ACTIVE:\44489948\11\99980.0025

Exhibit E
TYSON FOODS, INC.
364-DAY SENIOR UNSECURED BRIDGE FACILITY
364-DAY SENIOR UNSECURED REVOLVING CREDIT FACILITY

Form of Solvency Certificate
[●][●], 20[●]
This Solvency Certificate is being executed and delivered pursuant to Section [●] of that certain [●] (as amended, restated, amended and restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”; the terms defined therein being used herein as therein defined).
I, [●], the [Chief Financial Officer/equivalent officer] of the Borrower, in such capacity and not in an individual capacity, hereby certify as follows: 
		
	1.
	I am generally familiar with the businesses and assets of the Borrower and its subsidiaries, taken as a whole, and am duly authorized to execute this Solvency Certificate on behalf of the Borrower pursuant to the Credit Agreement; and

		
	2.
	As of the date hereof and after giving effect to the Transactions and the incurrence of the indebtedness and obligations being incurred in connection with the Credit Agreement and the Transactions, that, (i) the sum of the debt (including contingent liabilities) of the Borrower and its subsidiaries, taken as a whole, does not exceed the fair value of the present assets of the Borrower and its subsidiaries, taken as a whole; (ii) the present fair saleable value of the assets of the Borrower and its subsidiaries, taken as a whole, is not less than the amount that will be required to pay the probable liabilities (including contingent liabilities) of the Borrower and its subsidiaries, taken as a whole, on their debts as they become absolute and matured; (iii) the capital of the Borrower and its subsidiaries, taken as a whole, is not unreasonably small in relation to the business of the Borrower or its subsidiaries, taken as a whole, contemplated as of the date hereof; and (iv) the Borrower and its subsidiaries, taken as a whole, do not intend to incur, or believe that they will incur, debts (including current obligations and contingent liabilities) beyond their ability to pay such debts as they mature in the ordinary course of business.  For the purposes hereof, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

[Remainder of page intentionally left blank]

US_ACTIVE:\44489948\11\99980.0025

IN WITNESS WHEREOF, I have executed this Solvency Certificate on the date first written above.

By:    ______________________________ 
Name:  [●] 
Title:   [Chief Financial Officer/equivalent officer]

    
US_ACTIVE:\44489948\11\99980.0025Exhibit 10.1 Agreement DSS

EXHIBIT 10.1
CHANGE IN CONTROL
THIS CHANGE IN CONTROL AGREEMENT (this "Agreement"), is entered into and effective as of the date shown on the signature page hereof, by and between Union Bank, a Vermont-chartered financial institution (the “Bank”), and David S. Silverman (the “Executive”).
BACKGROUND
The Boards of Directors of the Bank and the Parent (as defined below) consider the establishment and maintenance of a sound and vital management team to be essential to protecting and enhancing the best interests of the Bank, the Parent and the Parent’s shareholders;

Upon recommendation of the Compensation Committee of the Parent’s Board of Directors, the Boards of the Bank and the Parent have determined that it is in the best interests of the Bank, the Parent and the Parent’s shareholders to ensure that the Bank and the Parent will have the continued dedication and impartial service and advice of the Executive, notwithstanding the possibility, threat or occurrence of a Change in Control (as defined below);

The Boards and the Compensation Committee believe that it is important to diminish the inevitable distraction of the Executive that would result from the personal uncertainties and risks created by a pending, threatened or actual Change in Control and to encourage the Executive to continue to devote the Executive’s full attention, services and dedication to the Bank and the Parent in such circumstances by providing the Executive with certain contractual compensation and benefit arrangements upon the termination of the Executive’s employment during a specified period following a Change in Control; and

The Executive and the Bank wish to enter into this Agreement in order to accomplish the foregoing objectives. 

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, intending to be legally bound hereby, the Bank and the Executive (collectively, the "Parties" and, individually, a "Party") hereby agree as follows: 

ARTICLE I
DEFINITIONS AND RULES OF INTERPRETATION
Section 1.01 Definitions. In addition to the capitalized terms defined elsewhere in this Agreement, the following definitions shall apply, unless the context clearly indicates otherwise: 

		
	•
	“Affiliate” of any Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such Person.  For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person or entity, whether through the ownership of voting securities or otherwise; and the terms “controlling” and “controlled” shall have correlative meanings.  Without limiting the generality of the foregoing, the Affiliates of the Bank include the Parent and any other direct or indirect Subsidiaries (if any) of the Parent.

		
	•
	“Base Salary” means the higher of (i) the annual base salary of the Executive in effect immediately prior to a Change in Control; or (ii) the annual base salary of the Executive in effect immediately prior to the Executive’s Date of Termination.

1

		
	•
	“Bonus Amount” means the higher of (i) the amount of the Executive’s target annual cash bonus (but not the Executive’s maximum possible cash bonus) under the Incentive Plan for the year in which the Executive’s Date of Termination occurs, on the assumptions that (A) the Bank achieves (but does not exceed) its performance target, (B) the Executive achieves (but does not exceed) all individual performance criteria, and (C) assumed full year end results will be calculated based on annualized year-to-date results as of the most recent quarter end prior to the Date of Termination; or (ii) the amount of the cash bonus paid to the Executive under the Incentive Plan with respect to the annual performance period for the calendar year prior to the year in which the Change in Control occurred; or (iii) the amount of the cash bonus paid to the Executive under the Incentive Plan with respect to the performance period for calendar year prior to the year in which the Executive’s Date of Termination occurs.

		
	•
	“Business Combination” has the meaning specified in the definition of “Change in Control.”

		
	•
	"Cause" means any one or more of the following: 

		
	(i)
	the willful and continued failure of the Executive to perform substantially the Executive's duties with the Bank or its Affiliates (other than any such failure resulting from the Executive's Disability or any such failure subsequent to delivery to the Executive of a Notice of Termination without Cause or subsequent to delivery by the Executive of a Notice of Termination for Good Reason to the Bank) provided that (a) the Board has delivered to the Executive a written demand for substantial performance which specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive's duties and provides the Executive with at least thirty (30) consecutive calendar days to correct such failure and (b) the Executive has failed to correct such failure within such 30 day period to the reasonable satisfaction of the Board; or

		
	(ii)
	the Executive willfully engages in illegal conduct or gross misconduct which is demonstrably and materially injurious to the Bank or its Affiliates; or

		
	(iii)
	the Executive is convicted of, or enters a plea of nolo contendere to, a felony; or

		
	(iv)
	the Executive willfully engages in misconduct that would justify immediate dismissal under any Code of Conduct applicable to the Bank’s employees generally or any special Code of Conduct expressly applicable to the Executive by virtue of his officer title with the Bank or any Affiliate. 

For purposes of this definition, no act or failure to act by the Executive shall be considered "willful" unless done or omitted to be done by the Executive in bad faith and without reasonable belief that the Executive's action or omission was in the best interests of the Bank and its Affiliates. Any act or failure to act based upon authority given pursuant to a resolution duly adopted by the Board of the Bank or of an Affiliate, based upon the advice of counsel for the Bank or an Affiliate, or based upon the instructions of another officer (if any) having seniority of title over the Executive, shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Bank and its Affiliates. 
		
	•
	"Change in Control" means the occurrence of any one of the following events: 

		
	(i)
	If Incumbent Directors (as defined below) cease for any reason to constitute at least a majority of the Parent Board; or

2

		
	(ii)
	If any Person is or becomes a "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of Parent Voting Securities (as defined below) representing more than fifty percent (50%) of the combined voting power of the Parent Voting Securities; provided, however, that notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred by virtue of any of the following acquisitions of Parent Voting Securities: (A) by the Parent or any Affiliate of the Parent; (B) by any employee benefit plan or trust sponsored, maintained or created by the Parent, the Bank or any Affiliate; (C) by any underwriter temporarily holding Parent Voting Securities pursuant to an offering of such securities; (D) pursuant to a Business Combination that is deemed to be Non-Qualifying Transaction (as defined in subparagraph (iii) of this definition below); (E) pursuant to any acquisition by the Executive or by any group of persons including the Executive (or any entity controlled by the Executive or any group of persons including the Executive); (F) any increase in a beneficial owner’s percentage of outstanding Parent Voting Securities as a result of a repurchase of securities by the Parent, or (G) pursuant to a transaction in which Parent Voting Securities are acquired from the Parent, if a majority of the Incumbent Directors approves a resolution providing expressly that the acquisition pursuant to this clause (G) shall not be deemed to constitute a Change in Control under this subparagraph (ii); or

		
	(iii)
	Consummation of a merger, consolidation, share exchange or similar form of corporate transaction involving the Parent or the Bank (a "Business Combination"), unless immediately following such Business Combination all three of the following conditions are satisfied: (A) immediately following consummation of the Business Combination more than fifty percent (50%) of the total voting power of the corporation resulting from such Business Combination (the "Surviving Corporation") or, if applicable, its ultimate parent corporation (the "Surviving Parent Corporation") is held by Persons who were the holders of Parent Voting Securities outstanding immediately prior to such Business Combination; (B) no person (other than any employee benefit plan or trust sponsored, maintained or created by the Surviving Corporation or the Surviving Parent Corporation is or becomes the beneficial owner, directly or indirectly, of thirty percent (30%) or more of the total voting power of the outstanding voting securities of the Surviving Parent Corporation (or, if there is no Surviving Parent Corporation, the Surviving Corporation); and (C) at least a majority of the members of the board of directors of the Surviving Parent Corporation (or, if there is no Surviving Parent Corporation, the Surviving Corporation) are individuals who were Incumbent Directors of the Parent at the time of the Parent Board's approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a "Non-Qualifying Transaction"); or

		
	(iv)
	Consummation of the sale of all or substantially all of the assets of the Parent or the Bank to an entity not owned or controlled (directly or indirectly) by the Parent’s shareholders; or

		
	(v)
	Liquidation or dissolution of the Parent or the Bank.

		
	•
	“Code” means the Internal Revenue Code of 1986, as amended.

		
	•
	“Confidential Information” means any information, knowledge, or data of any nature and in any form (including information that is electronically transmitted or stored on any form of electronic storage media) relating to the past, current, or prospective business or operations of the Bank and its Affiliates, that at the time or times concerned is not generally known to persons engaged in the financial services business (other than information known by such persons through a violation of an 

3

obligation of confidentiality to the Bank or its Affiliates), whether produced by the Bank and its Affiliates or any of their consultants, agents, or independent contractors, or by the Executive, and whether or not marked confidential, including without limitation information relating to the Bank’s or its Affiliates’ actual or prospective products and services, business plans, business acquisitions, Board, management or operational policies and procedures, product or service or market research and development ideas, methods or techniques, training methods and materials, and other operational methods or techniques, quality assurance procedures or standards, operating procedures, files, plans, specifications, proposals, charts, graphs, support data, trade secrets, consultants’ reports, employment or personnel data, marketing data, strategies or techniques, financial reports, budgets, projections, cost analyses, price lists, formulae and analyses, employee lists, customer records, customer lists, customer prospect lists, proprietary computer software, and internal notes and memoranda relating to any of the foregoing.

		
	•
	"Date of Termination" means (1) the effective date on which the Executive's employment by the Bank terminates (including by reason of Disability), as specified in a prior written notice by the Bank or the Executive (as the case may be) to the other, subject, however, to compliance with applicable notice and cure periods, or (2) if the Executive's employment by the Bank terminates by reason of death, the date of death of the Executive.

		
	•
	"Disability" means the Executive's inability to perform the Executive's then-existing duties with the Bank or its Affiliates on a full-time basis for at least one hundred eighty (180) consecutive days as a result of the Executive's incapacity due to physical or mental illness, as determined by a physician chosen by mutual agreement of the Executive and the Bank. Termination of the Executive’s employment by reason of his Disability after the occurrence of a Change in Control shall be deemed to constitute a Qualifying Termination unless the Bank has complied with Section 6.02.

		
	•
	“Exchange Act” means the Securities Exchange Act of 1934, as amended.

		
	•
	"Good Reason" means, without the Executive's express written consent, the occurrence of any of the following events after a Change in Control: 

		
	(i)
	(A) any change in the duties or responsibilities (including reporting responsibilities) of the Executive that is inconsistent in any material and adverse respect with the Executive's positions, duties, responsibilities or status with the Bank or its Affiliates immediately prior to such Change in Control, whether or not accompanied by a change in job or officer title, or (B) a material and adverse change in the Executive's titles or offices with the Bank or its Affiliates as existing immediately prior to such Change in Control;

		
	(ii)
	(A) a material reduction by the Bank in the Executive's rate of annual base salary as in effect immediately prior to such Change in Control (or as such annual base salary may be increased from time to time thereafter), or (B) the failure by the Bank to pay the Executive an annual cash bonus (if any) in respect of the year in which such Change in Control occurs;

		
	(iii)
	any requirement that the Executive be based at any office location that is more than fifty (50) “driving” miles from the Executive's primary Bank office location at the time of the Change in Control;

		
	(iv)
	the failure of the Bank or its Affiliates to continue in effect any material employee benefit plan, compensation plan, welfare benefit plan or other material fringe benefit plan in which the Executive is participating immediately prior to such Change in Control or the taking of any action 

4

by the Bank or its Affiliates which would materially and adversely affect the Executive's participation in or reduce the Executive's benefits under any such plan, unless (A) the Executive is permitted to participate in other plans providing the Executive with substantially equivalent benefits in the aggregate or (B) the Executive’s benefits are reasonably commensurate with those paid to other officers of the Surviving Corporation holding similar job responsibilities and officer titles; or
		
	(v)
	the failure of the Parent or the Bank to obtain the written assumption (and, if applicable, the guarantee) of this Agreement from any successor (and Surviving Parent Corporation) as contemplated in Section 7.02; 

provided, however, that any of the foregoing events or conditions shall be deemed to constitute Good Reason only if (A) the Executive provides written notice to the Bank of the event or condition alleged to constitute Good Reason within ninety (90) days following the Executive's knowledge of such event or condition constituting Good Reason, and (B) such event or condition shall remain uncured for a period of thirty (30) days after such notice is given. The Parties intend that a termination of the Executive’s employment for Good Reason shall constitute an involuntary Separation from Service for purposes of Section 409A and this provision shall be interpreted in a manner consistent with such intention.

		
	•
	“Incentive Plan” means the Union Bank Short-Term Incentive Performance Plan, and shall include any successor or comparable short-term incentive plan adopted by the Bank, the Parent or any Surviving Corporation or Surviving Parent Corporation, as the case may be.

		
	•
	“Incumbent Director” means (A) any individual who, on the date of this Agreement, is a member of the Board of the Parent; (B) any individual becoming a director of the Parent subsequent to the date of this Agreement, whose election or nomination for election was approved by a vote of at least two-thirds (2/3) of the Incumbent Directors then on the Parent Board (either by a specific vote or by approval of the proxy statement of the Parent in which such person is named as a nominee for director).

		
	•
	“Non-Qualifying Transaction” has the meaning specified in the definition of “Change in Control.”

		
	•
	“Parent Voting Securities” means the capital stock of the Parent entitled to vote in the election of directors.

		
	•
	 “Person” means a natural person, company, limited partnership, general partnership, limited liability company or partnership, joint venture, association, trust, bank, trust company, land trust, business trust or other organization, whether or not a legal entity, and a government or agency or political subdivision thereof; provided, however, that for purposes of the definitions of “Change in Control” and “Affiliate,” “Person” shall be as defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

		
	•
	"Protection Period" means the two (2) year period beginning with a Change in Control and ending two (2) years following such Change in Control.

		
	•
	"Qualifying Termination" means a termination of the Executive's employment after a Change in Control and during the Protection Period in a manner that constitutes a Separation from Service under Section 409A, for any reason other than (i) by the Bank (A) with Cause, or (B) on account of the 

5

Executive’s Disability (subject to compliance with Section 6.02), or (ii) by the Executive without Good Reason; or (iii) as a result of the death or Retirement of the Executive. 

Notwithstanding anything in this Agreement to the contrary, if (i) the Executive’s employment is terminated prior to a Change in Control for reasons that would have constituted a Qualifying Termination under the preceding paragraph if they had occurred following a Change in Control, (ii) the Executive reasonably demonstrates that such termination (or event constituting Good Reason) was at the request of a third party who had indicated an intention or taken steps reasonably calculated to effect a Change in Control, and (iii) a Change in Control involving such third party (or a party competing with such third party to effectuate a Change in Control) does occur within one hundred and eighty (180) days thereafter, then (for purposes of this Agreement) the date immediately prior to the date of such termination of employment (or event constituting Good Reason) shall be treated as a Change in Control and the Executive’s termination shall be treated as a Qualifying Termination for all purposes of this Agreement.

		
	•
	"Retirement" means the voluntary termination of the Executive's employment with the Bank and its Affiliates: (A) on or after the first of the month coincident with or next following the Executive's attainment of age sixty-five (65), or (B) on such later date as may be provided in a written agreement between the Bank and the Executive.

		
	•
	“Revocation Period” means the period for revocation by the Executive of an executed Waiver and Release following a Qualifying Termination, as provided in Exhibit A hereto.

		
	•
	“Section 409A” means Section 409A of the Code, and the regulations and other guidance promulgated thereunder.

		
	•
	“Separation from Service” has the meaning set forth in Section 409A.

		
	•
	"Subsidiary" means any corporation or other entity in which the Parent or the Bank: (A) has a direct or indirect ownership interest of fifty percent (50%) or more of the total combined voting power of then-outstanding securities or equity interests of such corporation or other entity entitled to vote generally in the election of directors, or (B) has the right to receive fifty percent (50%) or more of the distribution of profits or fifty percent (50%) of the assets upon liquidation or dissolution.

		
	•
	“Surviving Corporation” and “Surviving Parent Corporation” have the meanings specified in the definition of “Change in Control.”

Section 1.02. Employment with Affiliates.  The Parties acknowledge that as of the date hereof, the Executive is employed as a senior officer of the Bank.  In the event that during the term of this Agreement the Executive becomes employed instead by the Parent or any other Affiliate, references in this Agreement to the Executive’s employment with the Bank shall be deemed to apply to the Executive’s employment with the Parent or other Affiliate, as the case may be, and the Bank shall obtain the written assumption of its obligations hereunder from the Parent or other Affiliate, as the case may be.

Section 1.03. No Offsets or Required Mitigation. The Bank’s obligation to make the payments provided for in Article 3 of this Agreement and otherwise to perform its obligations hereunder shall be absolute and unconditional and shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that the Bank or any of its Affiliates may have against the Executive or any third party.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation 

6

of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Executive obtains other employment.

ARTICLE 2
TERM OF AGREEMENT; NO EFFECT ON EMPLOYMENT STATUS

Section 2.01. Term of Agreement; Evergreen Renewal. This Agreement shall take effect on the date hereof and shall continue in effect through December 31, 2014; provided, however, that commencing on January 1, 2015 and each January 1 thereafter (“Anniversary Date”), the term shall automatically be extended for one (1) additional year unless, not later than one year prior to the Anniversary Date, the Bank shall have given written notice of its decision not to extend the term; and further provided, however, that if a Change in Control shall have occurred during the term (including prior to expiration of any renewal term), the term of this Agreement shall be automatically extended to expire on the last day of the twenty-fourth (24th) month following the month in which such Change in Control occurred, notwithstanding the prior giving of any notice of non-renewal. Notwithstanding anything in this Agreement to the contrary, the term of this Agreement shall terminate automatically if the Executive or the Bank terminates the Executive's employment for any reason prior to a Change in Control.

Section 2.02. “At Will” Employment. The Executive acknowledges that the Executive is employed by the Bank as an "employee at will" and that nothing in this Agreement shall be deemed to change the Executive's status as an employee at will or to entitle the Executive to continued employment with the Bank or any of its Affiliates. If the Executive's employment with the Bank and its Affiliates terminates prior to a Change in Control (except as otherwise expressly provided in the definition of “Qualifying Termination” set forth in Section 1.01 above) or this Agreement is cancelled through nonrenewal pursuant to Section 2.01, the Executive shall have no further rights under this Agreement.

ARTICLE 3
BENEFITS UPON QUALIFYING TERMINATION OF EMPLOYMENT

Section 3.01. Change in Control Cash Payment. If, during the Protection Period, the Executive's employment with the Bank terminates pursuant to a Qualifying Termination, then the Bank shall pay to the Executive a lump sum cash amount equal to the sum of (i) two hundred percent (200%) of the Executive's Base Salary; plus (ii) two hundred percent (200%) of the Executive's Bonus Amount; plus (iii) an amount equal to the employer contributions made by the Bank or its Affiliates under the Bank’s 401(k) and profit sharing plan for the account of the Executive with respect to the last completed plan year immediately prior to the Change in Control, including any employer matching contributions, “safe harbor” contributions and profit sharing contributions.

Section 3.02. Continued Health Insurance Coverage. If, during the Protection Period, the Executive's employment with the Bank terminates pursuant to a Qualifying Termination, for a period of twenty-four (24) months following the Date of Termination, the Bank shall continue to provide to the Executive (and the Executive's dependents, if applicable), at the Bank’s sole expense, the same level of medical insurance benefits upon substantially the same terms and conditions (including contributions required by the Executive, if any, for such benefits) as existed immediately prior to the Executive's Date of Termination (or, if more favorable to the Executive, as such benefits and terms and conditions existed immediately prior to the Change in Control); provided, however, that if the Executive is not eligible to continue to participate in the Bank or Parent plan providing such benefits, the Bank or Parent shall otherwise pay for and provide equivalent medical insurance coverage. Notwithstanding the foregoing, in the event the Executive becomes re-employed with another employer and becomes eligible to receive medical insurance benefits from such employer that are 

7

substantially equivalent to the benefits provided under this Section, the medical insurance benefits described herein shall terminate.

Notwithstanding anything to the contrary herein, the foregoing provisions are intended to provide a minimum standard for provision of health insurance benefits for the Executive following a Qualifying Termination and, accordingly, such provisions shall supplement, but shall not replace or supersede, any additional or more generous health insurance benefits the Company or the Bank, as the case may be, is otherwise required to provide under any other contract, plan or arrangement, or under applicable law.

Section 3.03.  Outplacement Services.  In addition to the other benefits provided to the Executive upon a Qualifying Termination, during the ninety (90) day period following expiration of the Revocation Period, the Bank will provide to the Executive appropriate outplacement services from a service provider mutually agreed upon by the Bank and the Executive; provided, however, that the Bank’s obligation under this Section shall be limited to the expenditure of $5,000 for such outplacement services.

Section 3.04. Equity-Based Compensation and Other Compensation and Benefits. Any equity-based awards (whether to be settled in cash or stock) held by the Executive under any equity-based plan of the Parent, including any outstanding awards under the Company’s 2008 Incentive Stock Option Plan, 2014 Equity Incentive Plan, or any successor equity-based plans, will be governed by the provisions of the respective plan.

Section 3.05. Withholding Taxes. The Bank shall withhold from all payments due to the Executive hereunder all taxes which, by applicable federal, state, local or other law, the Bank is required to withhold therefrom.

Section 3.06 Reduction of Benefits in Certain Cases. Notwithstanding any contrary provision set forth in this Agreement, the Bank's payments to the Executive hereunder shall be reduced to the extent required under Article 4 of this Agreement.

Section 3.07. Payment to Beneficiaries.  If the Executive dies after the occurrence of a Qualifying Termination, but prior to the payment of all of the severance payments required by this Article, then all remaining severance payments will be paid to the beneficiary designated in writing by the Executive at the same time, and in the same amount, as would have been payable to the Executive. The designation of a beneficiary for purposes of this Article 3 will be revocable during the lifetime of the Executive. If the Executive does not designate a beneficiary under this Agreement, the beneficiary will be deemed to be the same person that the Executive designated with respect to the Executive’s group life insurance program maintained by the Bank or its Affiliates.

Section 3.08.    Waiver and Release; Timing of Payment.  Notwithstanding anything in this Agreement to the contrary, as a condition to receiving any payments or benefits under Sections 3.01, 3.02 and 3.03 of this Agreement by reason of a Qualifying Termination, (i) the Executive (or in the case of the Executive’s death after a Qualifying Termination, the executor of the Executive’s estate) must execute a Waiver and Release of claims, in the form set forth on Exhibit A attached hereto, and (ii) such waiver and release must be delivered to the Bank no later than forty-five (45) days after the date of the Qualifying Termination, and (iii) such waiver and release must not have been revoked by the Executive within the Revocation Period.  Subject to compliance with the foregoing requirements and (if applicable) to delay if required under the last two sentences of Section 4.02, the Bank shall make the cash payment to the Executive hereunder on the sixtieth (60th) day (and no earlier or later) following the Executive’s Date of Termination.

8

Section 3.09.    Right to Other Compensation and Benefits not Affected.  The Change in Control payment and benefits provided under Sections 3.01, 3.02 and 3.03 are in addition to, and not in lieu of, any other compensation, benefits and expense reimbursement to which the Executive may otherwise be entitled as a result of his or her Separation from Service to the extent not theretofore paid or deferred through the Date of Termination, including, without limitation, (i) any base salary and bonuses which have been earned and are payable; (ii) the dollar value of any accrued, unused vacation time; (iii) any vested benefits under the terms of any annual incentive, retirement, pension, deferred compensation, supplemental retirement or savings, 401(k), profit sharing or other employee benefit plan of the Bank or any Affiliate; and (iv) reimbursement for the Executive’s reasonable business expenses incurred prior to the Executive’s Separation from Service, in accordance with the Bank’s ordinary reimbursement policies.

ARTICLE 4 
LIMITATIONS ON PAYMENT OF BENEFITS

Section 4.01. No Excess Parachute Payments.
		
	(i)
	Notwithstanding anything to the contrary in this Agreement, if the Tax Consultant (as defined below) determines that any Payment (as defined below) to the Executive would be subject to the Excise Tax (as defined below), the Tax Consultant shall determine the Reduced Amount. For purposes of the Tax Consultant’s calculation, the value of a Payment shall mean the economic present value of a Payment as of the date of the Change in Control (or such other date as required pursuant to Section 280G of the Code), as determined by the Tax Consultant pursuant to Section 280G using the discount rate required by Section 280G(d)(4).

		
	(ii)
	The Tax Consultant shall provide to the Bank and the Executive a copy of its calculation. All determinations made by the Tax Consultant under this Section 4.01 shall be binding upon the Bank and the Executive and shall be made within thirty (30) days after a termination of the Executive's employment. All fees and expenses of the Tax Consultant pursuant to this Section 4.01 shall be borne solely by the Bank.

		
	(iii)
	For purposes of this Section 4.01, the following definitions shall apply:

		
	(A)
	“Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.

		
	(B)
	“Payment” shall mean any payment or distribution by the Bank in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive that is contingent on a Change in Control, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise.

		
	(C)
	“Reduced Amount” shall mean the greatest amount of Payments that can be paid to the Executive that would not result in the imposition of the Excise Tax upon the Executive.

		
	(D)
	“Tax Consultant” shall mean an independent accounting firm or independent tax counsel designated by the Bank and reasonably acceptable to the Executive.

Section 4.02. 409A Compliance.
		
	(i)
	The payments and benefits provided under this Agreement are designed to comply with one or more of the exceptions to Section 409A. To the extent that such payments do not comply with one or more of the exceptions to Section 409A, the Bank may, in its sole and absolute discretion, 

9

reduce or delay payments hereunder or make other such modifications with respect to the pay and benefits hereunder as it reasonably deems necessary to comply with one or more of the exceptions to Section 409A.  Notwithstanding the terms of this Agreement, if the Executive is a “specified employee” under Section 409A, only amounts exempt from Section 409A as a “short term deferral” or under the “separation pay” exception, as both terms are defined under the regulations under Section 409A, will be paid within the time specified in Section 3.08.  Any amounts payable to a “specified employee” and not eligible for an exemption from Section 409A as a short-term deferral or separation pay will be paid not earlier than six months after the Executive’s Separation from Service.  Any amount delayed in accordance with the previous sentence will be paid in a lump sum in the seventh month following a separation from service or, if earlier, upon the Executive’s death.
		
	(ii)
	All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Bank or incurred by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year. Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

		
	(iii)
	To the extent that any payment or benefit described in this Agreement constitutes non-qualified deferred compensation under Section 409A, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall be payable only upon the Executive’s separation from service. The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

Section 4.03. Certain Regulatory Prohibitions. If the Bank or any of its Affiliates is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Act or equivalent provisions relating to a regulator with supervisory authority over any of the Affiliates), all obligations under this Agreement will terminate as of the date of default, but this Article 8 will not affect any vested rights of the Parties.  Notwithstanding any other provision of the Agreement, neither the Bank nor any of its Affiliates will have any obligation to make any payments to the Executive if such payments would be prohibited by applicable federal or state law, including without limitation Part 359 of the regulations of the Federal Deposit Insurance Corporation (12 CFR § 359 et seq.) or any successor provision.

ARTICLE 5
CERTAIN COVENANTS OF THE EXECUTIVE

Section 5.01. Non-Disparagement. Following a Qualifying Termination and subject to satisfaction of the Bank’s payment obligations under Article 3 of this Agreement, the Executive will not, in writing or orally, or through conduct, disparage, deprecate, discredit or vilify the Bank or any of its Affiliates, or the services, products, customers, or employees of the Bank or any of its Affiliates. These prohibitions include, without limitation, any such statements made through use of social media sites, such as Facebook or Twitter, or through postings on internet websites or chat rooms.

Section 5.02. Non-Disclosure of Confidential Information. Following a Qualifying Termination and subject to satisfaction of the Bank’s payment obligations under Article 3 of this Agreement, for a period of two years after the Date of Termination, the Executive agrees (i) not to communicate, divulge or make 

10

available to any Person (other than the Bank or its Affiliates) any such Confidential Information, except upon the prior written authorization of the Bank or as may be required by law or legal process; and (ii) to deliver promptly to the Bank any Confidential Information in the Executive’s possession, including any duplicates thereof and any notes or other records the Executive has prepared with respect thereto. In the event that the provisions of any applicable law or the order of any court would require the Executive to disclose or otherwise make available any Confidential Information, the Executive will give the Bank prompt prior written notice of such required disclosure and an opportunity to contest the requirement of such disclosure or apply for a protective order with respect to such Confidential Information by appropriate proceedings.

Section 5.03.    Non-Competition and Non-Solicitation Obligations.  Following a Qualifying Termination and subject to satisfaction of the Bank’s payment obligations under Article 3 of this Agreement, for a period of one (1) year following the Executive’s Date of Termination, the Executive will not, directly or indirectly,
		
	(i)
	accept employment from, or act as a consultant or advisor to, any other financial institution, lender, trust company or other financial service provider entity (a “Competitor”) at any business office of such Competitor (including without limitation any bank branch, loan production office, trust office or operations center), located within a fifty (50) “air” mile radius from Morrisville, Vermont; or

		
	(ii)
	suggest to or advise any customer of the Bank to withdraw, curtail, or cancel his or her or its business with the Bank; or

		
	(iii)
	call on, cause, suggest, or induce others to call on, any customer of the Bank or otherwise solicit their business; or

		
	(iv)
	solicit, entice, hire, or attempt to hire or employ any employee of the Bank or the Parent.

During the one year period following the Executive’s Date of Termination, the Executive shall inform any prospective employer that the Executive is bound by the restrictions in this Section 5.03.

Section 5.04.    Acknowledgment and Intent of the Parties.  The parties hereto acknowledge that they have carefully considered the nature and scope of this Agreement.  The activities, period and area covered by Section 5.03 are expressly acknowledged and agreed to be fair, reasonable and necessary.  To the extent that any covenant contained in Section 5.03 is held to be invalid, illegal or unenforceable because of the extent of activities, duration of such covenant, the geographic area covered thereby, or otherwise, the parties agree that the court making such determination shall reform such covenant to include as much of its nature and scope as will render it enforceable and, in its reduced form, said covenant shall be valid, legal and enforceable to the fullest extent of the law.  The parties further acknowledge that any Surviving Corporation or Surviving Parent Corporation shall have the benefit of, and be entitled to enforce, the covenants of the Executive contained in this Article 5 to the same extent as the Bank and its Affiliates.

ARTICLE 6
TERMINATION PROCEDURES

Section 6.01. Notice of Termination.  On or after the occurrence of a Change in Control, any purported termination of the Executive’s employment (other than by reason of death or Retirement) shall be communicated by written Notice of Termination from one Party to the other Party in accordance with Section 8.01 of this Agreement.  For purposes of this Agreement, a “Notice of Termination” shall mean a written notice that indicates the specific termination provision in this Agreement relied upon, and, if applicable, the Notice shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination 

11

of the Executive’s employment under the provision so indicated.  Further, (i) a Notice of Termination by either Party to the other shall describe any applicable cure period and the conduct or event that would constitute a satisfactory cure; and (ii) a Notice of Termination by the Bank for Cause shall include a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board that was called and held for the purpose of considering the termination (after reasonable notice to the Executive and an opportunity for the Executive, together with his counsel, to be heard by the members of the Board), finding that, in the informed, reasonable, good faith judgment of the Board, the Executive was guilty of conduct set forth in the definition of Cause in Section 1.01 and specifying in reasonable detail the facts supporting such determination.

In addition to the foregoing, in connection with any termination of the Executive’s Employment following a Change in Control, the Bank shall comply with its ordinary and customary procedures then in effect for employee discipline and termination to the extent then applicable to the Executive, including any applicable provisions for progressive discipline, notice of performance deficiencies and notice and cure periods.

Section 6.02. Notice of Termination Due to Disability.  A Disability shall be deemed the reason for the termination by the Bank of the Executive’s employment (and therefore not a Qualifying Termination) following a Change in Control or within 180 days prior to a Change in Control, as the case may be, only if the Bank shall have given the Executive a Notice of Termination for Disability, and, within thirty (30) business days after the Notice of Termination is given, the Executive shall not have returned to the full-time performance of the Executive’s duties.

ARTICLE 7
SUCCESSORS; BINDING AGREEMENTS

Section 7.01. Successors Bound. This Agreement shall not be terminated by any Business Combination. In the event of any Business Combination, the provisions of this Agreement shall be binding upon the Surviving Corporation, and such Surviving Corporation shall be treated as the Bank and its Affiliates hereunder.

Section 7.02. Written Assumption of Successor.  The Bank agrees that, in connection with any Business Combination, the Bank or the Parent will cause any successor entity to the Bank or the Parent unconditionally to assume (and, for any Surviving Parent Corporation in such Business Combination, to guarantee), by written instrument delivered to the Executive (or if the Executive dies after a Qualifying Termination, the Executive's beneficiaries or estate), all of the obligations of the Bank hereunder. Failure of the Bank to obtain such assumption or guarantee prior to the effectiveness of any such Business Combination that constitutes a Change in Control shall be a breach of this Agreement and shall constitute Good Reason hereunder and, further, shall entitle the Executive to payment of compensation from the Bank in the same amount and on the same terms as the Executive would be entitled to receive hereunder as if the Executive's employment had been terminated following a Change in Control by reason of a Qualifying Termination. For purposes of implementing this Section 7.02, the date on which any such Business Combination becomes effective shall be deemed the date Good Reason occurs and shall be the Date of Termination, if so requested by the Executive, subject, however, to prior notice and expiration of any cure period required hereunder in connection with a termination for Good Reason.

Section 7.03. Binding Effect; Rights of Executive’s Successors.  This Agreement shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive dies while any amounts would be payable to the Executive hereunder if the Executive had continued to live, all such amounts (unless otherwise provided herein) shall be paid in accordance with the terms of this Agreement to such person or persons 

12

appointed in writing by the Executive to receive such amounts or, if no person is so appointed, to the Executive's estate.
ARTICLE 8
MISCELLANEOUS
Section 8.01. Notices.
		
	(i)
	All notices, requests, demands, waivers, instructions or other communications required or permitted under this Agreement shall be in writing and will be deemed to have been duly given only if mailed or hand delivered to a party at the following address:            

If to Bank:
Union Bank
PO Box 667
Morrisville, VT 05661
Attn:  Chairman of Board

If to Executive, to the address on file from time to time with the Human Resources Office of the Bank or the Surviving Corporation, as the case may be,
or such other address or to the attention of such other Person as the recipient party shall have specified by prior written notice to the sending party. Any notice under this Agreement will be deemed to have been given when so hand delivered or, if mailed, upon the earlier of written confirmation of receipt, or three (3) days after deposit in the U.S. Mail, postage prepaid.

		
	(ii)
	A written notice of the Executive's termination of employment by the Bank for Cause or due to Disability or by the Executive for Good Reason, as the case may be, to the other Party shall comply with Article 6 hereof. 

Section 8.02. Severability. Any term or provision of this Agreement that is found by a court of competent jurisdiction to be invalid or unenforceable shall not affect the validity or enforceability of the remaining terms and provisions hereof.  Any invalid or unenforceable provision shall be modified to the extent necessary to allow for enforceability and to give effect to the original intent of the parties to the extent possible.

Section 8.03. Complete Agreement.  This Agreement and any documents expressly referred to herein embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 

Section 8.04. Reimbursement of Executive’s Enforcement Expenses. If any contest or dispute shall arise under this Agreement involving the alleged failure or refusal of the Bank or any of its Affiliates to perform fully in accordance with the terms hereof, the Bank shall reimburse the Executive for all reasonable legal fees and expenses, if any, incurred by the Executive with respect to such contest or dispute, together with interest in an amount equal to the Wall Street Journal prime rate from time to time in effect (but in no event higher than the legal rate permissible under applicable law), such interest to accrue from the date the Bank becomes obligated to pay such fees and expenses through the date of payment thereof; provided, however, that this Section 8.04 shall apply only if (and to the extent that) the Bank is held to have breached or violated its duties and obligations hereunder to the Executive.

Section 8.05.    Source of Payments.  All payments provided under this Agreement shall be paid in cash from the general funds of the Bank, and no special or separate fund shall be established, and no other segregation of assets made, to assure payment.  To the extent that the Executive or any beneficiary of the Executive 

13

acquires a right to receive payments from the Bank hereunder, such right shall be that of an unsecured creditor of the Bank. 

Section 8.06. Survival. Articles 3 and 5 and Article 7 (to the extent that payments or benefits are owed as a result of a Qualifying Termination that occurs during the Protection Period) and Section 8.04 shall survive the termination of this Agreement. 

Section 8.07. Governing Law; Venue. The interpretation, construction and performance of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Vermont without regard to the principle of conflicts of laws. The Parties hereby agree that exclusive venue for all litigation arising hereunder lies solely with the state courts of Vermont and each Party hereby submits and agrees to the personal jurisdiction of such Vermont state courts. 

Section 8.08. Counterparts; Delivery by Fax or Email. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. Any executed counterpart may be delivered by fax or by email and such counterpart delivered by fax or by attachment to email shall be deemed an original.   No Party shall raise the use of a fax machine or email to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a fax machine or email as a defense to the formation or enforceability of a contract and each such Party forever waives any such defense. 

Section 8.09. Amendment; Waiver. No provision of this Agreement may be modified or waived unless such modification or waiver is agreed to in writing and signed by the Executive and by a duly authorized officer of the Bank. No waiver by either Party (at any time) of any breach by the other Party of, or compliance with, any condition or provision of this Agreement to be performed by such other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Except as otherwise expressly set forth in this Agreement, the failure by the Executive or the Bank to insist upon strict compliance with any provision of this Agreement or to assert any right the Executive or the Bank may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

IN WITNESS WHEREOF, the Bank has caused this Change in Control Agreement to be executed by a duly authorized officer of the Bank and the Executive has executed this Agreement, intending it to be legally effective between them, as of the 2nd day of June, 2014. 
	
				
	 
	UNION BANK
	 

	 
	By: 
	 
	 

	 
	 
	Name: Kenneth D. Gibbons
Title:   Chairman of the Board
	 

	
			
	 
	EXECUTIVE
	 

	 
	 
	 

	 
	Signature 
	 

	 
	Name: David S. Silverman
	 

ATTACHMENT: EXHIBIT A - WAIVER AND RELEASE
Executive acknowledges receipt of the form of Waiver and Release attached hereto as Exhibit A:
_________
(initial)

14

EXHIBIT A
WAIVER AND RELEASE

THIS WAIVER AND RELEASE (this “Waiver and Release”) is executed and delivered by _________________________________ (the “Executive”) pursuant to Section 3.08 of a Change in Control Agreement dated ____, 20__ between the Executive and Union Bank (the “Bank”) (the “CIC Agreement”);

Section 1. Termination of Employment; Effective Date of Release. The Executive acknowledges that the Executive's employment has been or will be terminated on ________, 20__ in accordance with the CIC Agreement and that the Executive is required to timely execute and deliver this Waiver and Release in order to receive the payment of certain severance benefits under the CIC Agreement following a Qualifying Termination of employment (as defined in the CIC Agreement). Subject to Section 6 of this Waiver and Release, this Waiver and Release is effective on the date of execution shown on the signature page and will continue in effect thereafter.

Section 2.  Released Parties; Release and Waiver of Claims, Actions, Etc. In consideration of the payments to be made and the benefits to be received by the Executive pursuant to Sections 3.01, 3.02 and 3.03 of the CIC Agreement (the “Severance Benefits”) which the Executive acknowledges includes payments and benefits in addition to payments and benefits the Executive otherwise would be entitled to receive, the Executive, on behalf of himself/herself, his/her heirs, representatives, agents and assigns hereby COVENANTS AND AGREES NOT TO SUE OR OTHERWISE VOLUNTARILY PARTICIPATE IN ANY LAWSUIT AGAINST, FULLY RELEASES, INDEMNIFIES, HOLDS HARMLESS and OTHERWISE FOREVER DISCHARGES 

		
	(i)
	the Bank,

		
	(ii)
	any companies controlled by, controlling or under common control with the Bank, and any predecessors, successors or assigns to the foregoing (together with the Bank, the “Union Affiliates”) 

		
	(iii)
	the Union Affiliates' compensation, benefit, incentive (including, but not limited to, individual incentive, annual incentive, long-term incentive and annual bonus), pension, welfare, equity compensation and other plans and arrangements, and any predecessor or successor to any such plans and arrangements (including the sponsors, administrators, fiduciaries and advisors of any such plan and/or arrangements), and

		
	(iv)
	any of the Union Affiliates' current or former officers, directors, agents, executives, employees, attorneys, insurers, shareholders, predecessors, successors or assigns (the parties referred to in the foregoing clauses (i) through (iv) are referred to herein collectively as the “Released Parties”) 

from any and all actions, charges, claims, demands, damages or liabilities of any kind or character whatsoever, whether known or unknown, which the Executive now has or may have had, directly or indirectly based on or arising out of the Executive's employment relationship with the Union Affiliates or the termination of that employment relationship, through the date of execution of this Waiver and Release, whether arising under statute or common law, including the laws governing torts and contracts. 

Section 3.  Specific Laws and Categories of Claims Waived and Released. Without limiting the generality of the scope of the waiver and release contained in Section 2 above, but subject to Section 4 below, (i) the Executive understands and agrees that in the event the Executive files a charge or complaint with the federal 

1

Equal Employment Opportunity Commission, or any similar state agency, the federal Occupational Safety and Health Administration, or any similar state agency or the federal Department of Labor or any state department of labor, the Executive shall not be entitled to any monetary relief, reinstatement, remuneration, damages, back pay, front pay, or compensation whatsoever from the Union Affiliates as a result of such charge or complaint; and (ii) the Executive understands and agrees that by executing and delivering this Waiver and Release he is waiving and releasing any and all actions and causes of action, suits, debts, claims, complaints and demands of any kind whatsoever, in law or in equity, relating directly or indirectly to Executive employment with the Union Affiliates or the termination of that employment, including, but not limited to, the following:
    
		
	(a)
	(A) Any claims relating to the Executive's hiring, employment or termination; (B) any claims relating to any alleged discrimination, harassment or retaliation on any basis; (C) any claims arising from any legal restrictions on an employer's right to separate its employees; (D) any claims for compensation and benefits; (E) any claim on account of, arising out of or in any way connected with the alleged termination of the Executive's employment without “cause” or for “good reason”; (F) any claim on account of, arising out of or in any way connected with any medical, dental, life insurance or other welfare benefit plan or any pension or equity compensation plan; (G) any claim of breach of employee handbooks, manuals or other policies; and (H) any claim of wrongful or constructive discharge; and

		
	(b)
	Those arising under any law relating to sex, age, race, color, religion, handicap or disability, harassment, veteran status, sexual orientation, retaliation, or national origin discrimination including, without limitation, any rights or claims arising under Title VII of the Civil Rights Act of 1866 and 1964, as amended, 42 U.S.C.§§ 1981 and 2000(e),et seq.; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967 (the “ADEA”), as amended, 29 U.S.C. §§ 621, et seq., as amended by the Older Workers Benefit Protection Act (the “OWBPA”); the Employee Retirement Income Security Act of 1974; the Family and Medical Leave Act, 29 U.S.C. §§ 2601 et seq.; the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§12,101, et seq.; Sections 806 and 1107 of the Sarbanes-Oxley Act of 2002; the Fair Labor Standards Act of 1938, 29 U.S.C. §§ 201, et seq.; the National Labor Relations Act, 29 U.S.C. §§151, et seq.; the Occupational Safety and Health Act, 29 U.S.C. §§ 651, et seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101, et seq.; and any similar state or local laws, as any such federal or state or local laws may be amended from time to time; and

		
	(c)
	Any claim for reinstatement, compensatory damages, back pay, front pay, interest, punitive damages, special damages, legal and/or attorneys' fees, expenses and litigation costs including expert fees.

Section 4. Limited Matters Excluded from Waiver and Release. Notwithstanding anything herein to the contrary, excluded from this Waiver and Release are the following: (i) the Executive's rights of indemnification and directors and officers liability insurance coverage, if any, to which the Executive was entitled immediately prior to the date of the Executive’s termination of employment with the Union Affiliates, in connection with his/her service as an officer or director of any of the Union Affiliates; (ii) the Executive's rights under Articles 3 and 7 of the CIC Agreement which are intended to survive termination of employment; (iii) the Executive’s right under the ADEA to challenge the validity of this Waiver and Release in a court of law; (iv) any claims arising after the Executive signs this Waiver and Release; and (v) any other claims that cannot be waived by law.

2

Section 5.  OWBPA Compliance. The Executive acknowledges that this Waiver and Release is intended to comply fully with the requirements of the Older Workers Benefit Protection Act (29 U.S.C. § 626) and any similar federal or state law governing the release of claims. Accordingly, the Executive hereby acknowledges, represents and agrees that:

		
	(i)
	The Bank has advised the Executive to consult with his/her own attorney regarding the execution of this Waiver and Release and the Executive has read and fully understands all of the provisions of this Waiver and Release.

		
	(ii)
	The Executive has at least forty-five (45) days in which to review and consider this Waiver and Release.

		
	(iii)
	The Executive waives any right to assert any claim or demand for reemployment with the Union Affiliates.

		
	(iv)
	(If applicable) The Executive acknowledges receipt of the attached OWBPA Notice containing the titles and ages of employees who are eligible and ineligible for this program in the Executive's decisional unit.

		
	(v)
	The Executive is voluntarily signing this Waiver and Release.

Section 6.  Seven Day Revocation Period. Executive has a period of seven (7) calendar days following the execution and delivery to the Bank of this Waiver and Release (the “Revocation Period”) during which Executive may revoke this Waiver and Release by delivering timely notice of revocation to the Bank.  To be effective, any such revocation must be in writing, signed by the Executive and received by the Bank prior to 5:00 p.m. (Eastern) on the last day of the Revocation Period at the following address:

Union Bank
PO Box 667
Morrisville, VT 05661
Attn:  Chairman of the Board

; provided, however, that if the seventh day is not a business day, the Revocation Period shall extend to 5:00 p.m. (Eastern) on the next business day.

Once the Revocation Period has expired, this Waiver and Release shall become effective and irrevocable. The Executive understands that if he/she revokes this Waiver and Release during the seven day revocation period, it will be null and void in its entirety, and Executive shall not be entitled to any payment under the CIC Agreement. 
    
Section 7. Enforcement Rights and Remedies of the Union Affiliates. 
 In the event that the Executive breaches or threatens to breach any provision of this Waiver and Release, he/she agrees that the Union Affiliates shall be entitled to seek any and all equitable and legal relief provided by law, specifically including immediate and permanent injunctive relief. The Executive hereby waives any claim that any of the Union Affiliates has an adequate remedy at law. In addition, and to the extent not prohibited by law, the Executive agrees that the Union Affiliates shall be entitled to an award of all costs and attorneys' fees incurred by the Union Affiliates in any successful effort to enforce the terms of this Waiver and Release. The Executive agrees that the foregoing relief shall not be construed to limit or otherwise restrict the Union Affiliates’ ability to pursue any other remedy provided by law, including the recovery of any actual, compensatory or punitive damages. Moreover, if the Executive pursues any claims against the Union Affiliates 

3

subject to the foregoing Waiver and Release, Executive agrees to immediately reimburse the Union Affiliates for the value of all Severance Benefits received to the fullest extent permitted by law. 

Section 8. No Admission of Liability or Wrongdoing.  
The Executive acknowledges that this Waiver and Release is entered into solely for the purpose of ending his employment relationship with the Union Affiliates on an amicable basis and shall not be construed as an admission of liability or wrongdoing by the Executive or the Bank or other Union Affiliate. 

Section 9. Binding Effect.  Each of the promises and obligations contained in this Waiver and Release shall be binding upon and shall inure to the benefit of the heirs, executors, administrators, assigns and successors in interest of the Executive. The benefits of this Waiver and Release shall inure to the Union Affiliates and the other Released Parties and to their respective heirs, executors, administrators, assigns and successors in interest.  Further, the Executive acknowledges that each of the Union Affiliates and other Released Parties is an intended beneficiary of this Waiver and Release.

Section 10. Provisions Severable. 
The Executive agrees that each and every paragraph, sentence, clause, term and provision of this Waiver and Release is severable and that, if any portion of this Waiver and Release should be deemed not enforceable for any reason, such portion shall be stricken and the remaining portion or portions thereof should continue to be enforced to the fullest extent permitted by applicable law.

Section 11. Governing Law. This Waiver and Release shall be interpreted, enforced and governed under the laws of the State of Vermont, without regard to any applicable state's choice of law provisions.

Section 12. No Reliance. The Executive represents and acknowledges that in signing this Waiver and Release he does not rely, and has not relied, upon any representation or statement made by the Union Affiliates or by any of the Union Affiliates’ employees, officers, agents, shareholders, directors or attorneys with regard to the subject matter, basis or effect of this Waiver and Release other than those specifically contained herein.

BY SIGNING BELOW, I ACKNOWLEDGE THAT 
		
	•
	I HAVE READ THIS WAIVER AND RELEASE CAREFULLY; 

		
	•
	I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY CONCERNING THIS DOCUMENT AND ITS LEGAL CONSEQUENCES; AND 

		
	•
	I UNDERSTAND THAT THIS WAIVER AND RELEASE INCLUDES A COMPLETE RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST EACH OF THE RELEASED PARTIES EXCEPT AS EXPRESSLY EXCLUDED IN SECTION 4 ABOVE.

IN WITNESS WHEREOF, the Executive has signed this Waiver and Release and hereby acknowledges his/her intent to be bound by its terms and conditions, on this __ day of _________, 20 __.

	
		
	EXECUTIVE
	 

	 
	 

	Signature 
	 

	Print Name: 
	 

	Date: 
	 

4

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