Document:

Exhibit 4.8

 EXHIBIT 4.8 
  

SMITHFIELD FOODS, INC. 
  

  
 AMENDED AND RESTATED 
 NOTE PURCHASE AGREEMENT 
  

  
 DATED AS
OF OCTOBER 29, 2004 
  
 $25,000,000 RESET RATE SERIES O 5/10 YEAR SENIOR SECURED NOTES 
 $30,000,000 ADJUSTABLE RATE SERIES P 5/10 YEAR SENIOR SECURED NOTES 
  
 Guarantied By: 
  
 Brown’s of Carolina LLC 
 Brown’s Farms, LLC 
 Brown’s
Realty Partnership 
 Carroll’s Foods of Virginia LLC 
 Carroll’s Foods LLC 
 Carroll’s Realty Partnership 
 Cattle Production Systems, Inc. 
 Central Plains Farms LLC 
 Circle Four LLC 
 Coddle Roasted Meats, Inc. 
 Gwaltney of Smithfield, Ltd. 
 Hancock’s Old Fashioned Country Ham, Inc. 
 Iowa Quality Meats, Ltd. 
 John Morrell & Co. 
 Lykes Meat Group, Inc. 
 Moyer Packing Company 
 Murphy-Brown LLC 
 Murphy Farms LLC

 North Side Foods Corp. 
 Packerland Holdings, Inc. 
 Packerland Processing Company, Inc. 
 Packerland-Plainwell, Inc. (f/k/a Murco Foods, Inc.) 
 Patrick Cudahy
Incorporated 
 Premium Pork, Inc. 
 Quarter M Farms LLC 
 Quik-To-Fix Foods, Inc. 
 SFFC, Inc. 
 Smithfield Purchase
Corporation 
 Stadler’s Country Hams, Inc. 
 Sun Land Beef Company 
 Sunnyland, Inc. 
 Smithfield-Carroll’s Farms 
 The Smithfield Companies, Inc.

 The Smithfield Packing Company Incorporated 
 Smithfield Packing Real Estate, LLC 
 Smithfield Packing Realty Partnership 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	 1.
	  	BACKGROUND; AMENDMENT AND RESTATEMENT.	  	1
				
	 	  	1.1	  	Background.	  	1
	 	  	1.2	  	Agreement of Noteholders to Amendment and Restatement; Closing Date.	  	2
	 	  	1.3	  	Failure To Deliver, Failure of Conditions.	  	2
	 	  	1.4	  	Expenses.	  	2
	 	  	1.5	  	Collateral; Release.	  	3
			
	 2.    
	  	WARRANTIES AND REPRESENTATIONS.	  	3
				
	 	  	2.1	  	Material Adverse Change.	  	3
	 	  	2.2	  	Financial Statements; Debt.	  	4
	 	  	2.3	  	Subsidiaries and Affiliates.	  	4
	 	  	2.4	  	Pending Litigation.	  	5
	 	  	2.5	  	Title to Properties; UCC Matters.	  	5
	 	  	2.6	  	Patents, Trademarks, Licenses, etc.	  	6
	 	  	2.7	  	Taxes.	  	6
	 	  	2.8	  	Full Disclosure.	  	7
	 	  	2.9	  	Corporate Organization and Authority.	  	7
	 	  	2.10	  	Restrictions on Company and Subsidiaries.	  	7
	 	  	2.11	  	Compliance with Law.	  	8
	 	  	2.12	  	Pension Plans.	  	8
	 	  	2.13	  	USA Patriot Act, Etc.	  	10
	 	  	2.14	  	Certain Laws.	  	10
	 	  	2.15	  	Environmental Compliance.	  	10
	 	  	2.16	  	Transaction is Legal and Authorized; Obligations are Enforceable.	  	11
	 	  	2.17	  	Governmental Consent.	  	12
	 	  	2.18	  	No Defaults.	  	12
	 	  	2.19	  	Company and the Guarantors.	  	12
	 	  	2.20	  	Solvency.	  	12
	 	  	2.21	  	True and Correct Copies.	  	13
	 	  	2.22	  	Joinder Agreement.	  	13
			
	3.	  	CLOSING CONDITIONS.	  	13
				
	 	  	3.1	  	Opinions of Counsel.	  	13
	 	  	3.2	  	Warranties and Representations True.	  	13
	 	  	3.3	  	No Defaults.	  	13
	 	  	3.4	  	Officers’ Certificates.	  	14
	 	  	3.5	  	Other Noteholders.	  	14
	 	  	3.6	  	Expenses.	  	14
	 	  	3.7	  	Ratification by Guarantors.	  	14
	 	  	3.8	  	Other Debt Documents.	  	14
	 	  	3.9	  	Transaction Structuring Fee.	  	14
	 	  	3.10	  	Compliance with this Agreement.	  	14
	 	  	3.11	  	Proceedings Satisfactory.	  	14

  

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	4.	  	PAYMENTS.	  	15
				
	 	  	4.1	  	Interest Payments.	  	15
	 	  	4.2	  	Scheduled Payments.	  	19
	 	  	4.3	  	Offer to Prepay upon Change in Control.	  	20
	 	  	4.4	  	Optional Prepayments.	  	22
	 	  	4.5	  	Notice of Optional Prepayment.	  	22
	 	  	4.6	  	Pro Rata Payments.	  	23
	 	  	4.7	  	Notation of Notes on Prepayment.	  	24
	 	  	4.8	  	No Other Optional Prepayments.	  	24
			
	5.	  	REGISTRATION; SUBSTITUTION OF NOTES.	  	24
				
	 	  	5.1	  	Registration of Notes.	  	24
	 	  	5.2	  	Exchange of Notes.	  	24
	 	  	5.3	  	Replacement of Notes.	  	25
	 	  	5.4	  	Issuance Taxes.	  	25
			
	6.    	  	GENERAL COVENANTS.	  	26
				
	 	  	6.1	  	Payment of Taxes and Claims.	  	26
	 	  	6.2	  	Maintenance of Properties and Corporate Existence	  	26
	 	  	6.3	  	Payment of Notes and Maintenance of Office.	  	27
	 	  	6.4	  	Intentionally Deleted.	  	27
	 	  	6.5	  	Consolidated Working Capital.	  	27
	 	  	6.6	  	Funded Debt to Capitalization Ratio.	  	27
	 	  	6.7	  	Maintenance of Funded Debt.	  	28
	 	  	6.8	  	Consolidated Interest Coverage Ratio; Consolidated Fixed Charges.	  	28
	 	  	6.9	  	Restrictions on Dividends, etc.	  	28
	 	  	6.10	  	Consolidated Net Worth.	  	29
	 	  	6.11	  	Terrorism Sanctions Regulations.	  	29
	 	  	6.12	  	Restricted Payments and Restricted Investments.	  	29
	 	  	6.13	  	Liens.	  	30
	 	  	6.14	  	Merger; Acquisition.	  	33
	 	  	6.15	  	Transfers of Property; Subsidiary Stock.	  	35
	 	  	6.16	  	Trademark Subsidiaries.	  	38
	 	  	6.17	  	Environmental Compliance.	  	39
	 	  	6.18	  	Line of Business.	  	39
	 	  	6.19	  	Transactions with Affiliates.	  	39
	 	  	6.20	  	Tax Consolidation.	  	40
	 	  	6.21	  	ERISA.	  	40
	 	  	6.22	  	Guaranties.	  	41
	 	  	6.23	  	Private Offering.	  	42
			
	7.	  	INFORMATION AS TO COMPANY AND GUARANTORS.	  	42
				
	 	  	7.1	  	Financial and Business Information.	  	42
	 	  	7.2	  	Officer’s Certificates.	  	45
	 	  	7.3	  	Accountants’ Report.	  	46
	 	  	7.4	  	Inspection.	  	46

  

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	8.	  	EVENTS OF DEFAULT.	  	46
				
	 	  	8.1	  	Nature of Events.	  	46
	 	  	8.2	  	Default Remedies.	  	49
	 	  	8.3	  	Annulment of Acceleration of Notes.	  	50
			
	9.	  	INTERPRETATION OF THIS AGREEMENT.	  	50
				
	 	  	9.1	  	Terms Defined.	  	51
	 	  	9.2	  	GAAP.	  	73
	 	  	9.3	  	Directly or Indirectly.	  	73
	 	  	9.4	  	Section Headings, Table of Contents and Construction.	  	74
	 	  	9.5	  	Governing Law.	  	74
			
	10.    	  	MISCELLANEOUS.	  	74
				
	 	  	10.1	  	Communications.	  	74
	 	  	10.2	  	Reproduction of Documents.	  	75
	 	  	10.3	  	Survival.	  	75
	 	  	10.4	  	Successors and Assigns.	  	76
	 	  	10.5	  	Amendment and Waiver.	  	76
	 	  	10.6	  	Payments, When Received.	  	77
	 	  	10.7	  	Entire Agreement.	  	78
	 	  	10.8	  	Duplicate Originals, Execution in Counterpart.	  	78

  

 iii 

 Annexes and Exhibits 
  

					
	Annex 1	  	—	  	Information as to Noteholders
	Annex 2	  	—	  	Information as to Company and Subsidiaries
			
	Exhibit A1	  	—	  	Form of Reset Rate Series O 5/10 Year Senior Secured Note
	Exhibit A2	  	—	  	Form of Adjustable Rate Series P 5/10 Year Senior Secured Note
			
	Exhibit B	  	—	  	Form of Company Counsel’s Closing Opinion
			
	Exhibit C	  	—	  	Form of Company Officer’s Certificate
	Exhibit D	  	—	  	Form of Company Secretary’s Certificate

  

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 SMITHFIELD FOODS, INC. 
  
 AMENDED AND RESTATED 
 NOTE PURCHASE AGREEMENT 
  
 $25,000,000 RESET RATE SERIES O 5/10 YEAR SENIOR SECURED NOTES 
 $30,000,000 ADJUSTABLE RATE SERIES P 5/10 YEAR SENIOR SECURED NOTES 
  
 Dated as of October 29, 2004 
  
 Separately addressed to each of the 
 Noteholders listed on Annex 1 hereto: 
  
 Ladies and Gentlemen: 
  
 SMITHFIELD FOODS, INC., a Virginia corporation (together with its successors and assigns, the “Company”), hereby agrees
with you as follows: 
  
 1. BACKGROUND; AMENDMENT AND RESTATEMENT.

  
 1.1 Background. 
  
 The Company has issued and sold 
  
 (a) twenty-five million dollars ($25,000,000) in aggregate
principal amount of its Reset Rate Series O 5/10 Year Senior Secured Notes (as they may be amended, restated or otherwise modified from time to time, the “Series O Notes” such term to include each Series O Note
delivered from time to time in accordance with any of the Note Purchase Agreements(as defined below)); and 
  
 (b) thirty million dollars ($30,000,000) in aggregate principal amount of its Adjustable Rate Series P 5/10 Year Senior Secured Notes (as
they may be amended, restated or otherwise modified from time to time, the “Series P Notes” such term to include each Series P Note delivered from time to time in accordance with any of the Note Purchase Agreements).

  
 The Series O Notes and the Series P Notes are herein referred to,
individually, as a “Note” and collectively, as the “Notes”. The Notes have been issued pursuant to those separate Note Purchase Agreements each dated as of March 1, 2002 among the Company and the noteholders named
in Annex 1 thereto (as amended by that certain Amendment Agreement No. 1, dated as of December 31, 2002, that certain Amendment Agreement No. 2, dated as of April 4, 2003, that certain Amendment Agreement No. 3, dated as of October 31, 2003, and
that certain Amendment Agreement No. 4, dated as of March 25, 2004, each among the Company and the other parties listed on the signature pages thereto, each an “Existing Note Purchase Agreement” and collectively, the
“Existing Note Purchase Agreements”). The Company represents and warrants to each of you that (i) the register kept by the Company for the registration and transfer of the Notes indicates that each of the Persons named in Annex 1
hereto (collectively, the 

 “Noteholders”) is currently a holder of the outstanding aggregate principal amount of the Notes as of
the date hereof indicated in such Annex and (ii) there are no other Notes outstanding under the Existing Note Purchase Agreements. 
  
 1.2 Agreement of Noteholders to Amendment and Restatement; Closing Date. 
  
 (a) Agreement. Subject to the satisfaction of the conditions set forth in Section 3, you agree, by
execution of this Agreement, that the Existing Note Purchase Agreement is hereby amended and restated in the form of this Agreement 
  
 (b) Closing Date; Restatement Date. The closing of the transactions contemplated by this Agreement is deemed to be March 1, 2002
(the “Closing Date”) and the closing under this Agreement will be held contemporaneously with the execution and delivery of this Agreement (the date of such closing is herein referred to as the “Restatement Date”)
at the office of Bingham McCutchen LLP, One State Street, Hartford, Connecticut, 06103. It is agreed that the Restatement Date shall be October 29, 2004. 
  
 (c) Other Noteholders. Contemporaneously with the execution and delivery hereof, the Company is entering into a separate Amended
and Restated Note Purchase Agreement identical (except for the name, address and signature of the Noteholder party thereto) to this Agreement (this Agreement and such other separate Amended and Restated Note Purchase Agreements, collectively, as may
be amended from time to time, the “Note Purchase Agreements”) with each other Noteholder. 
  
 1.3 Failure To Deliver, Failure of Conditions. 
  
 If on the Restatement Date the conditions specified in Section 3 to be fulfilled have not been fulfilled, you may thereupon elect to be relieved of all
further obligations under this Agreement, without thereby waiving any rights you may have by reason of such nonfulfillment, and the Existing Note Purchase Agreement shall remain in full force. 
  
 1.4 Expenses. 
  
 (a) Generally. Whether or not the transactions
contemplated by this Agreement are consummated, the Company will promptly (and in any event within thirty (30) days of receiving any statement or invoice therefor) pay all fees, expenses and costs relating hereto, including but not limited to:

  
 (i) the cost of reproducing the Financing
Documents; 
  
 (ii) the fees and disbursements of
your special counsel; 
  
 (iii) the fees and
disbursements of the Security Trustee and its counsel; 
  
 (iv) the fees, expenses and costs incurred in complying with each of the conditions to closing set forth in Section 3; 
  

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 (v) all other expenses incurred in connection with the transactions contemplated by this
Agreement; and 
  
 (vi) the expenses relating to
the consideration, negotiation, preparation or execution of any amendments, waivers or consents pursuant to the provisions hereof and of the other Financing Documents, whether or not any such amendments, waivers or consents are executed. 

 
 (b) Counsel. Without limiting the generality of
the foregoing, it is agreed and understood that the Company will pay, on the Restatement Date, the statement for fees and disbursements of your special counsel presented on the Restatement Date and the Company will also pay upon receipt of any
statement thereof, each additional statement for fees and disbursements of your special counsel rendered after the Restatement Date in connection with the matters referred to in Section 1.4(a)(vi). 
  
 (c) Survival. The obligations of the Company under
this Section 1.4 shall survive the payment or prepayment of the Notes and the termination hereof. 
  
 1.5 Collateral; Release. 
  
 The Notes are secured pursuant to and entitled to all of the benefits of the Security Documents. In the event that at any time after the
Restatement Date the Company shall have obtained an Acceptable Rating in respect of its long-term, senior unsecured debt, the Company may give written notice to each holder of Notes (which notice shall include copies of the letters to the Company
from Moody’s and Standard & Poor’s evidencing that such Acceptable Rating has been in full force and effect for the one hundred eighty (180) day period immediately preceding the date of such notice) requesting that the holders of the
Notes direct the Security Trustee to release the Collateral from the security interests created by the Security Documents on a date specified in such notice (the “Collateral Release Date”) that is not less than thirty (30) days and
not more than sixty (60) days after the date of such notice. The holders of the Notes agree to direct the Security Trustee to so release the Collateral, provided that the Collateral Release Conditions have been satisfied and the holders of
the Notes and the Security Trustee shall have received an officer’s certificate, executed by a Senior Officer and dated the Collateral Release Date, specifying that at the time of such release and after giving effect thereto, each of the
Collateral Release Conditions are satisfied. Notwithstanding such release of Collateral, the provisions of Section 6.13 hereof shall continue to apply on and after the Collateral Release Date. 
  
 2. WARRANTIES AND REPRESENTATIONS. 
  
 To induce you to enter into this Agreement, the Company warrants and
represents as follows: 
  
 2.1 Material Adverse Change.

  
 Since the date of the last audited consolidated financial
statements of the Company delivered to each of the Noteholders (or their predecessors in interest), there has been no change 
  

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 in the business, prospects, profits, Properties or condition (financial or otherwise) of the Company, except changes
that, in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
  
 2.2 Financial Statements; Debt. 
  
 (a) Financial Statements. The quarterly and annual financial statements most recently delivered to you pursuant to Section 7.1 of the Existing Note Purchase Agreement have been prepared in accordance with GAAP
consistently applied and present fairly, in all material respects, the consolidated financial position of the Company and its consolidated subsidiaries as of such dates and the results of their operations and cash flows for the periods specified
therein. 
  
 (b) Debt. Part 2.2(b) of
Annex 2 lists all Debt of the Company and the Subsidiaries as of the Closing Date (prior to giving effect to the transactions which occurred on the Closing Date) which Debt is of an outstanding amount, in each case, in excess of fifty thousand
dollars ($50,000), and provides the following information with respect to each item of such Debt: 
  
 (i) the obligor in respect thereof, 
  
 (ii) the holder thereof, 
  
 (iii) the outstanding amount thereof and the interest rate or rates applicable thereto, 
  
 (iv) the portion thereof classified as current in accordance
with GAAP, 
  
 (v) the final maturity thereof,
and 
  
 (vi) the collateral securing such Debt,
if any. 
  
 The aggregate amount of Debt of the Company and the
Subsidiaries as of the Closing Date that is not set forth on Part 2.2(b) of Annex 2 does not exceed two million five hundred thousand dollars ($2,500,000). 
  
 2.3 Subsidiaries and Affiliates. 
  
 Part 2.3 of Annex 2 states: 
  
 (a) the name of each of the Subsidiaries as of the Restatement Date, its jurisdiction of organization and the percentage of its Voting
Stock owned by the Company and each other Subsidiary; and 
  
 (b) the name of each of the Affiliates as of the Restatement Date and the nature of the affiliation. 
  

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 Each of the Company and the Subsidiaries has good and marketable title to all of the shares it purports
to own of the stock of each Subsidiary, free and clear in each case of any Lien. All such shares have been duly issued and are fully paid and nonassessable. 
  
 2.4 Pending Litigation. 
  
 (a) Pending Litigation. There are no proceedings, actions or investigations pending or, to the knowledge of the Company, threatened
against or affecting the Company or any Subsidiary in any court or before any Governmental Authority or arbitration board or tribunal that, in the aggregate for all such proceedings, actions and investigations, could reasonably be expected to have a
Material Adverse Effect. 
  
 (b) No Defaults.
Neither the Company nor any Subsidiary is in default with respect to any judgment, order, writ, injunction or decree of any court, Governmental Authority, arbitration board or tribunal that, in the aggregate for all such defaults, could
reasonably be expected to have a Material Adverse Effect. 
  
 2.5 Title to Properties; UCC Matters. 
  
 (a) Title to Properties. The Company and the Subsidiaries have valid title to all of the Property reflected in the most recent audited consolidated balance sheet referred to in Section 2.2(a) (except as sold or otherwise disposed of
in the ordinary course of business), except for such failures to have valid title as are immaterial in the context of such balance sheet and that, in the aggregate for all such failures, could not reasonably be expected to have a Material Adverse
Effect. 
  
 (b) Leases. All leases
necessary for the conduct of the business of the Company and the Subsidiaries are valid and subsisting and are in full force and effect, except for such failures to be valid and subsisting that, in the aggregate for all such failures, could not
reasonably be expected to have a Material Adverse Effect. 
  
 (c) Liens. All Property of the Company and the Subsidiaries is free from Liens not permitted by Section 6.13. 
  
 (d) UCC Matters. Part 2.5(d) of Annex 2 sets forth with respect to the Company and each Guarantor, as of the Closing Date:

  
 (i) each name under which such Person
conducts or has conducted all or a portion of its business operations, and 
  
 (ii) the location of the principal executive office of each such Person. 
  
 Neither the Company nor any Guarantor has changed its name or the name under which it conducts its business operations within the immediately preceding
period of five (5) years. 
  
 (e) Real Estate
Collateral. Part 2.5(e) of Annex 2 sets forth a list, as of the Closing Date, of each of the real Properties held by each of Packerland, Murco, and Sun 
  

 5 

 Land, and such list sets forth, as of the Closing Date, with respect to each such Property that
constitutes Collateral, the book value and the Company’s good faith estimate of the Fair Market Value thereof. 
  
 2.6 Patents, Trademarks, Licenses, etc. 
  
 Except as set forth on Part 2.6 of Annex 2, as of the Closing Date each of the Company and the Subsidiaries owns, possesses or has the right to use all of
the patents, trademarks, service marks, trade names, copyrights and licenses, and rights with respect thereto, necessary for the present and currently planned future conduct of its business, without any known conflict with the rights of others. The
Trademark Subsidiaries own all such patents, trademarks, service marks, trade names, copyrights and licenses. Part 2.6 of Annex 2 sets forth the identity of each of the Trademark Subsidiaries on the Closing Date. 
  
 2.7 Taxes. 
  
 (a) Returns Filed; Taxes Paid. All tax returns
required to be filed by each of the Company and the Subsidiaries and any other Person with which the Company or any Subsidiary files or has filed a consolidated return in any jurisdiction have in fact been filed on a timely basis, and all taxes,
assessments, fees and other governmental charges upon each of the Company and the Subsidiaries and any such Person, and upon any of their respective Properties, income or franchises, that are due and payable have been paid. As of the Closing Date,
all liabilities of the Company and the Subsidiaries with respect to federal income taxes have been finally determined except with respect to the fiscal years disclosed on Part 2.7 of Annex 2, which are the only fiscal years not closed by the
completion of an audit or the expiration of the statute of limitations. There is currently in effect no tax sharing, tax allocation or similar agreement providing for the manner in which tax payments (whether in respect of federal or state income or
other taxes) owing by the members of the affiliated group of which the Company is the “common parent” (as defined in section 1504 of the IRC) are allocated between any member of such group and any Person other than the Company or a
Subsidiary. 
  
 (b) Book Provisions
Adequate. 
  
 (i) The amount of the liability
for taxes reflected in the most recent balance sheet referred to in Section 2.2(a) is an adequate provision for taxes as of the date of such balance sheet (including, without limitation, any payment due pursuant to any tax sharing agreement) as are
or may become payable by any one or more of the Company, any Subsidiary and the other Persons consolidated with the Company in such financial statements in respect of all tax periods ending on or prior to such dates. 
  
 (ii) As of the Closing Date, neither the Company nor any
Subsidiary knows of any proposed additional tax assessment against it or any such Person that is not reflected in full in the most recent balance sheet referred to in Section 2.2(a). 
  

 6 

 2.8 Full Disclosure. 
  
 The financial statements referred to in Section 2.2(a) do not, nor does any Financing Document or any written statement
furnished by or on behalf of the Company or any Subsidiary to you in connection with the negotiation or the closing of the transactions contemplated by this Agreement, contain any untrue statement of a material fact or omit a material fact necessary
to make the statements contained therein not misleading when viewed in the aggregate. There is no fact that the Company has not disclosed to you in writing that has had or, so far as the Company can now reasonably foresee, could reasonably be
expected to have a Material Adverse Effect. 
  
 2.9 Corporate
Organization and Authority. 
  
 The Company and each
Subsidiary: 
  
 (a) is a corporation, limited
liability company or partnership duly organized, validly existing and in good standing (to the extent that such concept is applicable) under the laws of its jurisdiction of organization; 
  
 (b) has all legal and corporate, limited liability company or partnership, as the case may be, power and
authority to own and operate its Properties and to carry on its business as now conducted and as presently proposed to be conducted; 
  
 (c) has all necessary licenses, certificates and permits to own and operate its Properties and to carry on its business as now conducted
and as presently proposed to be conducted, except where the failure to have such licenses, certificates and permits, in the aggregate, could not reasonably be expected to have a Material Adverse Effect; and 
  
 (d) has duly qualified or has been duly licensed, and is
authorized to do business and is in good standing, as a foreign corporation, limited liability company or foreign partnership, as the case may be, in each state in the United States of America and in each other jurisdiction where the failure to be
so qualified or licensed and authorized and in good standing, in the aggregate for all such failures, could reasonably be expected to have a Material Adverse Effect. 
  
 2.10 Restrictions on Company and Subsidiaries. 
  
 (a) Neither the Company nor any Subsidiary: 
  
 (i) is a party to any contract or agreement, or subject to any charter, bylaw, partnership agreement or
other restriction that, in the aggregate for all such contracts, agreements, constitutive documents and other restrictions (assuming that all such contracts and agreements are performed in accordance with their respective terms), could reasonably be
expected to have a Material Adverse Effect; or 
  
 (ii) has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its Property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 6.13.

  

 7 

 (b) As of the Closing Date, neither the Company nor any Guarantor is a party to any
contract or agreement that restricts the right or ability of the Company or such Guarantor to incur Debt, other than this Agreement and the agreements listed in Part 2.10(b) of Annex 2 (none of which restricts the issuance and sale of the Notes or
the performance of the Company hereunder or under the Notes and none of which restricts the guaranty of the Notes by any of the Guarantors under the Joint and Several Guaranty). 
  
 2.11 Compliance with Law. 
  

Neither the Company nor any Subsidiary: 
  
 (a) is in violation of any law, ordinance, governmental rule or regulation to which it is subject (including, without limitation, those
relating to zoning and planning, building, subdivision, inland wetland and environmental and hazardous waste disposal); or 
  
 (b) has failed to obtain any license, certificate, permit, franchise or other governmental authorization necessary to the ownership of its
Property or to the conduct of its business (including, without limitation, to the extent required, building, zoning, subdivision, traffic and environmental approvals and certificates of occupancy); 
  
 which violations or failures to obtain, in the aggregate, could reasonably be expected to
have a Material Adverse Effect. 
  
 2.12 Pension Plans.

  
 (a) Disclosure. Part 2.12(a) of
Annex 2 identifies as of the Closing Date all ERISA Affiliates and all “employee benefit plans” with respect to which the Company or any “affiliate” of the Company is a “party-in-interest” or in respect of which the
Notes could constitute an “employer security” (“employee benefit plan” and “party-in-interest” have the meanings specified in section 3 of ERISA and “affiliate” and “employer security” have the
meanings specified in section 407(d) of ERISA). 
  
 (b) Prohibited Transactions. The execution and delivery of this Agreement will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to
section 4975(c)(1)(A) through section 4975(D), inclusive, of the IRC. 
  
 (c) Relationship of Vested Benefits to Pension Plan Assets. Except as set forth on Part 2.12(c) of Annex 2, immediately prior to the Closing Date the present value of all benefits, determined as of the most
recent valuation date immediately prior to the Closing Date for such benefits (as provided in Section 6.21(c)), vested under each Pension Plan does not exceed the value of the assets of such Pension Plan allocable to such vested benefits, determined
as of the most recent valuation date (as provided in Section 6.21(c)) immediately prior to the Closing Date. 
  
 (d) ERISA Requirements. Each of the Company and the ERISA Affiliates: 
  
 (i) has fulfilled all obligations under the minimum funding
standards of ERISA and the IRC with respect to each Pension Plan that is not a Multiemployer Plan; 
  

 8 

 (ii) is in compliance in all material respects with all other applicable provisions of
ERISA and the IRC with respect to each Pension Plan and each Multiemployer Plan; and 
  
 (iii) has not incurred any liability under Title IV of ERISA to the PBGC (other than in respect of required insurance premiums, all of
which that are due having been paid), with respect to any Pension Plan, any Multiemployer Plan or any trust established thereunder. 
  
 (e) Accumulated Funding Deficiency. Except as set forth in Part 2.12(e) of Annex 2, no accumulated funding deficiency (as defined
in section 302 of ERISA and section 412 of the IRC), whether or not waived, exists as of the Closing Date with respect to any Pension Plan. 
  
 (f) Reportable Events. No Pension Plan or trust created thereunder has been terminated, and there have been no “reportable
events” (as such term is defined in section 4043 of ERISA), with respect to any Pension Plan or trust created thereunder or with respect to any Multiemployer Plan, which reportable event or events will or could result in the termination of such
Pension Plan or Multiemployer Plan and give rise to a liability of the Company or any ERISA Affiliate in respect thereof. 
  
 (g) Multiemployer Plans. Other than as set forth on Part 2.12(g) of Annex 2, as of the Closing Date neither the Company nor any
ERISA Affiliate is an employer required to contribute to any Multiemployer Plan. Neither the Company nor any ERISA Affiliate has incurred, nor is expected to incur, any withdrawal liability (that has not previously been fully satisfied) under ERISA
with respect to any Multiemployer Plan, the effect of which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. No Multiemployer Plans have been terminated under section 4041A of ERISA, have been placed
in reorganization status under Title IV of ERISA, or have been determined to be “insolvent” (as such term is defined in section 4245 of ERISA). 
  
 (h) Multiple Employer Pension Plans. Neither the Company nor any ERISA Affiliate is a “contributing sponsor” (as such
term is defined in section 4001 of ERISA) in any Multiple Employer Pension Plan and neither the Company nor any ERISA Affiliate has incurred (without fully satisfying the same), or reasonably expects to incur, withdrawal liability in respect of any
Multiple Employer Pension Plan, which withdrawal liability could reasonably be expected to have a Material Adverse Effect. 
  
 (i) Foreign Pension Plan. Except as set forth in Part 2.12(i) of Annex 2, as of the Closing Date no Foreign Pension Plans exist as
of the Closing Date and neither the Company nor any Subsidiary has any present or future obligations in respect of any Foreign Pension Plan. 
  

 9 

 2.13 USA Patriot Act, Etc. 
  
 (a) Neither the Company nor any Subsidiary (i) is a Person described or designated in the Specially
Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (ii) engages in any dealings or transactions with any such Person. The Company and its Subsidiaries are in
compliance, in all material respects, with the USA Patriot Act. 
  
 (b) No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party,
candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended,
assuming in all cases that such Act applies to the Company. 
  
 2.14 Certain Laws. 
  
 The execution and delivery
of this Agreement by the Company and each of the Guarantors and the performance under the Financing Documents by the Company and the Subsidiaries: 
  
 (a) is not subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 1935, as
amended, the Transportation Acts, as amended, or the Federal Power Act, as amended, and 
  
 (b) does not violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or
any Subsidiary. 
  
 2.15 Environmental Compliance.

  
 (a) Compliance. Except as set
forth in Part 2.14(a) of Annex 2, as of the Closing Date neither the Company nor any Subsidiary is in violation of any Environmental Protection Law in effect in any jurisdiction where it currently is doing business or owns Property, except for such
violations that, in the aggregate for all such violations, could not reasonably be expected to have a Material Adverse Effect. 
  
 (b) Liability. Except as set forth in Part 2.14(b) of Annex 2, as of the Closing Date neither the Company nor any Subsidiary is
subject to any liability under any Environmental Protection Law that, in the aggregate for all such liabilities, could reasonably be expected to have a Material Adverse Effect. 
  
 (c) Notices. Except as set forth in Part 2.14(c) of Annex 2, as of the Closing Date neither the
Company nor any Subsidiary has received any: 
  
 (i) notice from any Governmental Authority by which any of its currently or previously owned or leased Properties has been identified in any manner by any Governmental Authority as a hazardous substance disposal or removal site, “Super
Fund” clean-up site, or other clean-up site or candidate for removal or closure pursuant to any Environmental Protection Law; 
  

 10 

 (ii) notice of any Lien arising under or in connection with any Environmental Protection
Law that has attached to any revenues of, or to, any of its currently or previously owned or leased Properties; or 
  
 (iii) communication from any Governmental Authority concerning any action or omission by the Company or such Subsidiary in connection with
its currently or previously owned or leased Properties resulting in the release of any Hazardous Substance or resulting in any violation of any Environmental Protection Law; 
  
 in each case where the effect of which, in the aggregate for all such notices and communications, could reasonably be
expected to have a Material Adverse Effect. 
  
 2.16
Transaction is Legal and Authorized; Obligations are Enforceable. 
  
 (a) Transaction is Legal and Authorized. Each of the execution and delivery of this Agreement by the Company and by each of the Guarantors and compliance by the Company and each of the Guarantors with all of
their respective obligations under the Financing Documents: 
  
 (i) is within the corporate powers of the Company and each of the Guarantors; 
  
 (ii) is legal and does not conflict with, result in any breach in any of the provisions of, constitute a default under, or result in the
creation of any Lien upon any Property of the Company or any Subsidiary under the provisions of, any agreement, charter instrument, bylaw or other instrument to which it is a party or by which it or any of its Property may be bound; and 

 
 (iii) does not give rise to a right or option of any
other Person under any agreement or other instrument, which right or option could reasonably be expected to have a Material Adverse Effect. 
  
 (b) Obligations are Enforceable. This Agreement has been duly authorized by all necessary action on the part of each Obligor and
has been executed and delivered by one or more duly authorized officers of such Obligor, and the obligations of each Obligor set forth herein constitute legal, valid and binding obligations of such Obligor, enforceable in accordance with its terms,
except that the enforceability of the Financing Documents may be: 
  
 (i) limited by applicable bankruptcy, reorganization, arrangement, insolvency, moratorium or other similar laws affecting the enforceability of creditors’ rights generally; and 
  
 (ii) subject to the availability of equitable
remedies. 
  

 11 

 2.17 Governmental Consent. 
  
 Neither the nature of the Company or any Subsidiary, or of any of their respective businesses or Properties, nor any
relationship between the Company or any Subsidiary and any other Person, nor any circumstance in connection with the execution and delivery of this Agreement, is such as to require a consent, approval or authorization of, or filing, registration or
qualification with, any Governmental Authority on the part of the Company or any Guarantor as a condition to the execution and delivery of this Agreement. 
  
 2.18 No Defaults. 
  
 (a) The Agreement. No event has occurred and no condition exists that, upon the execution and delivery of this Agreement, would
constitute a Default or an Event of Default. 
  
 (b) Charter Instruments, Other Agreements. Neither the Company nor any Subsidiary is in violation in any respect of any term of any charter instrument, bylaw, partnership agreement or other constitutive document or instrument.
Neither the Company nor any Subsidiary is in violation in any respect of any term in any agreement or other instrument to which it is a party or by which it or any of its Property may be bound except for such violations that, in the aggregate for
all such violations, could not reasonably be expected to have a Material Adverse Effect. 
  
 2.19 Company and the Guarantors. 
  
 The Company and the Guarantors are operated as part of one consolidated business entity and are directly dependent upon each other for and in connection with their respective business activities and their respective
financial resources. The Company and each of the Guarantors receive direct economic and financial benefits from the Debt outstanding under the Note Purchase Agreements by the Company and the existence of such Debt is in the best interests of the
Company and each of the Guarantors. 
  
 2.20 Solvency.

  
 The fair value of the business and assets of the Company
and each Guarantor will be in excess of the amount that will be required to pay its liabilities (including, without limitation, contingent, subordinated, unmatured and unliquidated liabilities on existing debts, as such liabilities may become
absolute and matured), in each case after giving effect to the transactions contemplated by this Agreement. Neither the Company nor any Guarantor, after giving effect to the transactions contemplated by this Agreement, will be engaged in any
business or transaction, or about to engage in any business or transaction, for which such Person has unreasonably small assets or capital (within the meaning of applicable law, including, without limitation, Section 548 of the United States
Bankruptcy Code), and neither the Company nor any Guarantor has any intent to 
  
 (a) hinder, delay or defraud any entity to which it is, or will become, on or after the Restatement Date, indebted, or 
  

 12 

 (b) incur debts that would be beyond its ability to pay as they mature. 
  
 2.21 True and Correct Copies. 
  
 The Company has delivered to you or your special counsel true and correct
copies of each of the following (including each amendment and restatement entered into in connection herewith): (a) the Credit Facility and any other Revolving Credit Agreement (including, without limitation, all schedules and exhibits thereto and
all agreements delivered in connection therewith) of the Company or any Subsidiary, (b) the 1999 Note Purchase Agreements and (c) the 2000 Note Purchase Agreement. 
  
 2.22 Joinder Agreement. 
  
 Cattle Production Systems, Inc. (f/k/a Beef Production Systems, Inc.) shall have executed and delivered to you or your special counsel (i) that certain
joinder agreement, dated on or before October 29, 2004, by which Cattle Production Systems, Inc. shall become a guarantor under the Joint and Several Guaranty and (ii) that certain joinder agreement, dated on or before October 29, 2004, by which
Cattle Production Systems, Inc. shall become a subsidiary guarantor under the Intercreditor Agreement. 
  
 3. CLOSING CONDITIONS. 
  
 The effectiveness of this Agreement, as to the parties hereto, is subject to the following conditions precedent: 
  
 3.1 Opinions of Counsel. 
  
 You shall have received a closing opinion from McGuireWoods LLP, counsel for the Company and the Guarantors, dated as of the Restatement Date, and
substantially in the form set forth in Exhibit B, and as to such other matters as you may reasonably request. The Company hereby requests and directs its counsel to deliver such closing opinion to you and the other Noteholders. 
  
 3.2 Warranties and Representations True. 
  
 The warranties and representations contained in Section 2 shall be true on
the Restatement Date with the same effect as though made on and as of that date. 
  
 3.3 No Defaults. 
  
 No
“Default” or “Event of Default” (as such terms are defined in the Existing Note Purchase Agreements) shall exist in respect of the Notes, this Agreement or the Existing Note Purchase Agreements. 
  

 13 

 3.4 Officers’ Certificates. 
  
 You shall have received: 
  
 (a) a certificate dated the Restatement Date and signed by the President, a Vice President, the Controller, the Treasurer, an Assistant
Treasurer or the Chief Financial Officer of the Company, substantially in the form of Exhibit C, certifying that the conditions specified in Sections 3.2, Section 3.3, Section 3.8 and Section 3.9 have been fulfilled and that no Default or Event of
Default exists on the Restatement Date; and 
  
 (b) a certificate dated the Restatement Date and signed by the Secretary or an Assistant Secretary of the Company, substantially in the form of Exhibit D, with respect to the matters set forth therein. 
  
 3.5 Other Noteholders. 
  
 None of the other Noteholders shall have failed to execute and deliver a
Note Purchase Agreement on the Restatement Date. 
  
 3.6
Expenses. 
  
 All fees and disbursements required to be paid
on or before the Restatement Date pursuant to Section 1.4 shall have been paid in full. 
  
 3.7 Ratification by Guarantors. 
  
 Each Guarantor shall have executed and delivered the ratification of its obligations under the Joint and Several Guaranty as contemplated on the signature pages to this Agreement. 
  
 3.8 Other Debt Documents. 
  
 The Company shall have delivered to you a true and correct copy of the
agreements referred to in Section 2.21. 
  
 3.9 Transaction
Structuring Fee. 
  
 The Company shall have paid to each
Noteholder a non-refundable transaction restructuring fee equal to five hundredths of one percent (0.05%) of the aggregate principal amount of the Notes held by such Noteholder on the Restatement Date. 
  
 3.10 Compliance with this Agreement. 
  
 Each of the Company and the Guarantors shall have performed and complied
with all agreements and conditions contained herein that are required to be performed or complied with by the Company and the Guarantors on or prior to the Restatement Date, and such performance and compliance shall remain in effect on the
Restatement Date. 
  
 3.11 Proceedings Satisfactory.

  
 All proceedings taken in connection with the transactions
contemplated hereby and all documents and papers relating thereto shall be satisfactory to you and your special counsel. You and your special counsel shall have received copies of such documents and papers as you or they 
  

 14 

 may reasonably request in connection therewith or in connection with your special counsel’s closing opinion, all in
form and substance satisfactory to you and your special counsel. 
  
 4.
PAYMENTS. 
  
 4.1 Interest Payments. 
  
 (a) Series O Notes. The Series O Notes shall bear
interest on the outstanding principal amount thereof at the rate of eight and sixty-three one-hundredths percent (8.63%) per annum and shall be payable to the holders of the Series O Notes, in arrears, monthly on the last day of each month in
each year, commencing on March 31, 2002, until the principal amount of the Series O Notes in respect of which such interest shall have accrued shall become due and payable, and interest shall accrue on any overdue principal (including any overdue
prepayment of principal) and Make-Whole Amount and (to the extent permitted by applicable law) on any overdue installment of interest, at a rate equal to the Series O Rate plus two percent (2%) per annum. 
  
 (b) Series P Notes. The Series P Notes shall bear
interest on the outstanding principal amount thereof at a rate per annum equal to the Series P Rate determined in accordance with Section 4.1(d). Such interest shall be payable to the holders of the Series P Notes, in arrears, as determined
in accordance with Section 4.1(d), until the principal amount of the Series P Notes in respect of which such interest shall have accrued shall become due and payable, and interest shall accrue on any overdue principal (including any overdue
prepayment of principal) and Make-Whole Amount, if applicable, and (to the extent permitted by applicable law) on any overdue installment of interest, at a rate equal to the Series P Variable Rate plus two percent (2%) per annum.

  
 (c) Basis of Computation. Interest on
the Series O Notes shall be computed on the basis of a year of three hundred sixty (360) days comprised of twelve 30-day months. Interest on the Series P Notes shall be computed on the basis of a year of three hundred sixty (360) days and paid for
the actual number of days elapsed, calculated as to each interest period or other period during which interest accrues from and including the first day thereof to and including the last day thereof. Interest determined at the Maximum Legal Rate of
Interest shall be determined in accordance with Applicable Interest Law. 
  
 (d) Determination of Series P Rate. 
  
 (i) Initial Interest Rate; Series P Variable Rate. Notwithstanding the other provisions of this Section 4.1(d) (A) for the period from March 1, 2002 through April 30, 2002 the Series P Rate will be 4.37% per
annum and (B) on April 30, 2002 the Company will pay interest on the Series P Notes in an amount equal to (1) $98,567.77 plus (2) interest accrued at the Series P Rate for the period from March 1, 2002 through April 30, 2002 as provided in
clause (A) above. Except as provided in Section 4.1(d)(ii) and Section 4.1(d)(iii) or if the Company has been notified in writing by the Series P Agent that the right to select the Series P Variable Rate is cancelled or suspended, the Series P Notes
shall bear interest 
  

 15 

 after April 30, 2002 on the outstanding principal amount thereof at the Series P Variable Rate. Interest
on the Series P Notes bearing interest at the Series P Variable Rate after April 30, 2002 shall be payable monthly in arrears on the last day of each calendar month commencing on May 31, 2002. 
  
 (ii) Series P LIBOR Rate. The Company may, at any
time and from time to time, elect for any period after April 30, 2002 to have one or more portions (but no more than four (4) portions at any one time) of the then outstanding Series P Notes, in principal amounts of at least $1,000,000 and multiples
of $500,000, bear interest at one of the three (3) Series P LIBOR Rates at such time, by providing written or telephonic notice of such election on any Banking Day to the Series P Agent, specifying the Series P Three-Month LIBOR Rate, the Series P
Six-Month LIBOR Rate or the Series P Twelve-Month LIBOR Rate that has been selected by the Company and the respective principal amounts of the Series P Notes with respect to such selection is made. If such notice shall have been received by the
Series P Agent not later than 12:00 noon, Central Standard Time, on the date such notice has been delivered, such Series P Notes so selected shall bear interest at the selected Series P LIBOR Rate commencing on the third (3rd) Banking Day following the date such notice shall have been so received; if such notice shall have been received by the Series
P Agent after 12:00 noon, Central Standard Time, on the date such notice has been delivered, such Series P Notes so selected shall bear interest at the selected Series P LIBOR Rate commencing on the fourth (4th) Banking Day immediately following the
date such notice shall have been so received. The Series P LIBOR Rate in respect of any such notice shall be determined on the date such notice shall have been received (regardless of the time of such receipt) by the Series P Agent. 
  
 If the Company, as specified in any such notice, shall
select: (i) the Series P Three-Month LIBOR Rate, then such Series P Notes so selected shall bear interest at the Series P Three-Month LIBOR Rate for a period of ninety (90) days; (ii) the Series P Six-Month LIBOR Rate, then such Series P Notes so
selected shall bear interest at the Series P Six-Month LIBOR Rate for a period of one hundred eighty (180) days; and (iii) the Series P Twelve-Month LIBOR Rate, then such Series P Notes so selected shall bear interest at the Series P Twelve Month
LIBOR Rate for a period of three hundred sixty (360) days. Unless agreed to in writing by the Series P Agent, in no event will the Company be permitted to select any such Series P LIBOR Rates if the last day of any such period ends after July 31,
2006. If the last day of any of such periods is not a Banking Day, such period shall end on the next Banking Day unless such last day falls in the next calendar month, in which case such period shall end on the Banking Day immediately preceding such
last day. If the last day of any such period falls on a day which is not numerically corresponding to the first day of such period such period shall end on the last day of the month which is closest to such last day. Commencing on the first
(1st) day immediately following the final day of each such interest period (each, an “Interest
Period”) and continuing thereafter, the Series P Notes shall bear interest (1) if the Company shall have provided, on or prior to 12:00 noon, Central Standard Time, on the third (3rd) Banking Day 
  

 16 

 immediately prior to such date, written or telephonic notice to the Series P Agent of the applicable
Series P LIBOR Rate so selected in accordance with the immediately preceding paragraph, at the Series P LIBOR Rate selected by the Company in such notice, or (2) in the event the Company shall not have provided any such notice, at either the then
applicable Series P Variable Rate or, if so established as provided in Section 4.1(d)(iii) below, the Series P Fixed Rate. Interest on the Series P Notes bearing interest at a Series P LIBOR Rate shall be payable at ninety (90) day intervals
commencing on the 90th day immediately following the first day of the applicable Interest Period. 
  
 (iii) Series P Fixed Rate. The Company may, at any time and from time to time up to and including July 1, 2006, request for any
period commencing after April 30, 2002 to have one or more portions of the then outstanding Series P Notes, bear interest at the Series P Fixed Rate at such time, by providing written or telephonic notice of such request on any Business Day to the
Series P Agent. Within three (3) Business Days following the receipt of such notice, the Series P Agent shall notify the Company, in writing or by telephone, of the Series P Fixed Rate, the applicable interest period (which in no event will end
later than July 31, 2006 unless agreed to in writing by the Series P Agent) during which such Series P Fixed Rate will be in effect and the portions of the Series P Notes to which the Series P Fixed Rate will be applicable, each of which may be
chosen by the Series P Agent in its sole discretion. The Company shall notify the Series P Agent, in writing or by telephone, of its acceptance or rejection of the Series P Fixed Rate within three (3) Business Days following receipt of notice of
such Series P Fixed Rate. If so accepted, the portion of the Series P Notes designated to bear interest at the Series P Fixed Rate shall bear interest at the Series P Fixed Rate commencing on the first day of the period designated by the Series P
Agent. Interest on Notes bearing interest at the Series P Fixed Rate shall be payable monthly in arrears on the last day of each calendar month. If the Series P Agent fails to respond to such notice within such three (3) Business Day period such
failure shall be deemed to be a rejection of such Series P Fixed Rate. 
  
 (iv) Series P Rate Determination Binding. Each determination of a Series P Rate pursuant to the provisions of this Agreement shall be made by the Series P Agent and shall be conclusive and binding on the
Company and the holders of the Series P Notes in the absence of manifest error. In the case of manifest error, any holder of a Series P Note or the Company may object to such quoted Series P Rate by written notice delivered to the Company or the
Series P Agent, as the case may be, detailing the reasons for such objection. Upon delivery of any such notice of objection, the Series P Agent and the Company shall cooperate to promptly determine the correct Series P Rate and such correct Series P
Rate shall be the then applicable Series P Rate for the applicable Series P Notes. Each of the holders of the Series P Notes and the Company shall make the required adjustments to the amount of interest payable on the first interest payment date
next succeeding the date of the determination of the correct Series P Rate as are necessary to reflect the application of such correct Series P Rate. 
  

 17 

 (v) Inability to Determine Rate. If, in the reasonable opinion of the Series P
Agent, the market for United States dollar deposits in London ceases to function, or it becomes impossible, impractical or illegal to readily, currently and accurately determine the applicable Series P LIBOR Rate, or the applicable Series LIBOR Rate
no longer currently and accurately reflects the market level of interest rates for obligations of a similar nature, term and amount, then the Series P Agent, in each such case, shall forthwith give notice thereof to the Company. If such notice is
given, (A) the interest rate applicable to the Series P Notes shall be the Prime Rate or another rate mutually acceptable to the Company and the Series Agent at such time, determined and effective as of the first day of the relevant interest period,
and (B) each reference herein to the “Series P LIBOR Rate” or “Series P Variable Rate”, as the case may be, shall be deemed thereafter to be a reference to the Prime Rate or such other rate. 
  
 (vi) Reinstatement of Rate. If there has been at any
time an interest rate substituted for the Series P LIBOR Rate or Series P Variable Rate in accordance with Section 4.1(d)(v) and thereafter, in the Series P Agent’s reasonable opinion, the circumstances causing such substitution have ceased,
then the Series P Agent shall promptly notify in writing the Company of such cessation or election, and on the first (1st) Banking Day immediately following the date such notice shall have been delivered, the Series P Notes shall bear interest at
the Series P Variable Rate (determined on such first (1st) Banking Day and redetermined thereafter in accordance with Section 4.1(d)(i)) and the Series P LIBOR Rate shall be determined as originally defined hereby. Nevertheless, the provisions of
Section 4.1(d)(v) shall generally continue to be effective. 
  
 (vii) Indemnity. In the event any payment or prepayment of the Series P Notes is made, in whole or in part, pursuant to Section 4.3, Section 4.4 or Section 8.2, as the case may be, at any time while any Series
P Notes bear interest at one of the Series P LIBOR Rates (other than the last day of the period in which such Series P LIBOR Rate is applicable to such Series P Notes), the Company agrees to pay to the holders of such Series P Notes, in addition to,
and not in lieu of, any other amount due hereunder, on demand by the Series P Agent, such reasonable amount (the “Indemnification Fee”)as shall be sufficient to reimburse and indemnify such holders for any loss (including
loss of earnings and anticipated profits), cost or expense (including, without limitation, costs or losses associated with prepaying or redeploying deposits) incurred as a result of such payment or prepayment. Any demand by the Series P Agent for
payment pursuant to this Section 4.1(d)(vii) shall be accompanied by a schedule setting forth in reasonable detail the computation of any such loss, cost or expense and any Make Whole Amount paid or required to be paid in connection with such
payment or prepayment. Each such schedule delivered to the Company shall constitute prima facie evidence of the Indemnification Fee payable by the Company, absent manifest error. 
  

 18 

 (e) Maximum Rate of Interest. The Company acknowledges and agrees that 12 U.S.C.
section 2205 provides that institutions of the Farm Credit System are not subject to any interest rate limitation imposed by any state constitution or statute or other laws, and that any such limitations are preempted, and therefore any interest
owing under the Notes, to the extent purchased or held by an institution of the Farm Credit System, is not subject to any ceiling. Accordingly, so long as any of the Notes are held by an institution of the Farm Credit System, there shall be no
Maximum Legal Rate of Interest with respect to such Notes. Nonetheless, it is the intention of the Company and holders of the Notes that are not institutions of the Farm Credit System to conform strictly to the Applicable Interest Law. Accordingly,
notwithstanding any provisions to the contrary in this Agreement or in any Note, the aggregate of all interest, and any other charges or consideration constituting interest under Applicable Interest Law, that is taken, reserved, contracted for,
charged or received pursuant to this Agreement or any Notes (other than Notes held by holders that are not institutions of the Farm Credit System) shall under no circumstances exceed the maximum amount of interest allowed by the Applicable Interest
Law. If any interest in excess of such amount is provided for in this Agreement or in any such Notes, then in such event 
  
 (i) the provisions of this Section 4.1(e) shall govern and control, 
  
 (ii) the Company shall not be obligated to pay the amount of such interest to the extent that it is in
excess of the maximum amount of interest allowed by the Applicable Interest Law, 
  
 (iii) any interest paid on any such Notes which is in excess of what is allowed by the Applicable Interest Law shall be deemed a mistake
and canceled automatically and, if theretofore paid, shall be credited to the outstanding principal amount of such Notes, and 
  
 (iv) the effective rate of interest on such Notes shall be automatically subject to reduction to the Maximum Legal Rate of Interest.

  
 If at any time thereafter, the Maximum Legal Rate of Interest is increased,
then, to the extent that it shall be permissible under Applicable Interest Law, the Company shall forthwith pay to the holders of the Notes subject to a prior reduction all amounts (or the permissible part thereof) of such excess interest that the
holders of such Notes would have been entitled to receive pursuant to the terms of this Agreement and such Notes had such increased Maximum Legal Rate of Interest been in effect at all times when such excess interest accrued. To the extent permitted
by the Applicable Interest Law, all sums paid or agreed to be paid to the holders of any Notes for the use, forbearance or detention of the indebtedness evidenced by the Notes shall be amortized, prorated, allocated and spread throughout the full
term of such Notes. 
  
 4.2 Scheduled Payments. 

 
 (a) Series O Notes. In the event the Series O
Notes are not prepaid prior to July 31, 2011, the entire outstanding principal amount and interest due on the Series O Notes shall mature and be due on July 31, 2011. In addition to paying the entire then outstanding principal amount and the
interest due on the Series O Notes on the maturity date thereof (July 31, 2011), the Company shall prepay, and there shall become due and 
  

 19 

 payable, four hundred sixteen thousand six hundred sixty-seven dollars ($416,667) in aggregate principal
amount of the Series O Notes on the last day of January, April, July and October in each year, commencing on April 30, 2002 and ending on April 30, 2011, inclusive. Each such prepayment shall be at one hundred percent (100%) of the amount prepaid,
together with interest accrued thereon to the date of prepayment. In addition, if, no less than one hundred twenty (120) days prior to July 31, 2006, the Company and all of the holders of the Series O Notes outstanding at such time, shall fail to
agree on a new interest rate for the Series O Notes to be applicable after July 31, 2006, the Company shall prepay, and there shall be due and payable, the entire principal amount of the Series O Notes then outstanding, together with accrued
interest, on July 31, 2006, at par. 
  
 (b)
Series P Notes. In the event the Series P Notes are not prepaid prior to July 31, 2011, the entire outstanding principal amount and interest due on the Series P Notes shall mature and be due on July 31, 2011. In addition to paying the entire
then outstanding principal amount and the interest due on the Series P Notes on the maturity date thereof (July 31, 2011), the Company shall prepay, and there shall become due and payable, five hundred thousand dollars ($500,000) in aggregate
principal amount of the Series P Notes on the last day of January, April, July and October in each year, commencing on April 30, 2002 and ending on April 30, 2011, inclusive. Each such prepayment shall be at one hundred percent (100%) of the amount
prepaid, together with interest accrued thereon to the date of prepayment. In addition, if no less than one hundred twenty (120) days prior to July 31, 2006, the Company and all of the holders of the Series P Notes outstanding at such time, shall
fail to agree on an amendment to the definition of “Applicable Margin”, the Company shall prepay, and there shall be due and payable, the entire principal amount of the Series P Notes then outstanding, together with accrued interest, on
July 31, 2006, at par. 
  
 4.3 Offer to Prepay upon Change in
Control. 
  
 (a) Notice and Offer. In
the event of either 
  
 (i) a Change in Control,
or 
  
 (ii) the obtaining of knowledge of a
Control Event by any officer of the Company, 
  
 then the Company
will, within three (3) Business Days of (x) such Change in Control or (y) the obtaining of knowledge of such Control Event (including via the receipt of notice of a Control Event from any holder of Notes), as the case may be, give written notice of
such Change in Control or Control Event to each holder of Notes and, simultaneously with the sending of such written notice, give telephonic advice of such Change in Control or Control Event to an investment officer or other similar representative
or agent of each such holder specified on Annex 1 at the telephone number specified thereon, or to such other Person at such other telephone number as any holder of a Note may specify to the Company in writing. In the event of a Change in Control,
such written notice shall contain, and such written notice shall constitute, an irrevocable offer to prepay all, but not 
  

 20 

 less than all, of the Notes of each Series held by such holder on a date specified in such notice (in
respect of such Change in Control, the “Control Prepayment Date”)that is not less than thirty (30) days and not more than one hundred twenty (120) days after the date of such notice (if the Control Prepayment Date shall not
be specified in such notice, the Control Prepayment Date shall be the thirtieth (30th) day after the date of such notice). In no event will any Obligor take any action, or permit any Affiliate or Subsidiary to take any action, to permit a Change in
Control to occur prior to the Control Prepayment Date. 
  
 (b) Acceptance and Payment. To accept such offered prepayment, a holder of Notes shall cause a notice of such acceptance (which notice of acceptance may be in respect of one or more Series of Notes held by such holder, but which
notice need not treat Notes of all Series held by such holder in the same manner) to be delivered to the Company not later than fourteen (14) days after the date of receipt by such holder of the written offer of such prepayment. If so accepted, such
offered prepayment shall be due and payable on the Control Prepayment Date. Such offered prepayment shall be made at one hundred percent (100%) of the principal amount of such Notes, together with (i) an amount equal to the Make-Whole Amount, if
any, at the time applicable with respect to the principal amount of the Notes of such Series then being prepaid and (ii) interest on the Notes then being prepaid accrued to the Control Prepayment Date. 
  
 (c) Officer’s Certificate. Each offer to prepay
the Notes pursuant to this Section 4.3 will be accompanied by an officer’s certificate, executed by a Senior Officer of each Issuer and dated the date of such offer, specifying: 
  
 (i) the Control Prepayment Date; 
  
 (ii) the principal amount of each Note offered to be prepaid; 
  
 (iii) the estimated interest to be paid on each such Note,
accrued to the Control Prepayment Date; 
  
 (iv)
the estimated Make-Whole Amount with respect to the Series O Notes due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment and, upon request, calculated in consultation with the holders of the
Series O Notes), setting forth the details of such computation; 
  
 (v) that the conditions of this Section 4.3 have been fulfilled; and 
  
 (vi) in reasonable detail, the nature and date or proposed date of the Change in Control. 
  
 Two (2) Business Days prior to the applicable Control Prepayment Date, the
Company shall deliver to each holder of Series O Notes that has accepted such offer of prepayment a certificate of a Senior Financial Officer of any Issuer specifying the calculation of the Make-Whole Amount (as calculated in consultation with the
holders of the Series O Notes) in respect of the Notes of such Series as of the applicable Control Prepayment 
  

 21 

 Date. With respect to any such prepayment of the Series P Notes, the holder or holders thereof to receive
such prepayment shall use good faith efforts to provide the Company with notice of the Make-Whole Amount (if any) due in respect of such prepayment approximately two (2) Business Days prior to such prepayment (provided, however, that the failure of
any such holder to so provide such notice shall not relieve the Company of the obligation to pay such Make-Whole Amount promptly at such later time as such holder shall provide notice to the Company of such amount). 
  
 (d) Effect of Prepayments. Each prepayment of
principal of the Notes of any Series pursuant to this Section 4.3 shall be applied to reduce the principal amount of the Notes of such Series due on the maturity date of the Notes of such Series and to reduce each remaining scheduled required
prepayment of principal (if any) applicable to each such Series required by Section 4.2, apportioned on a ratable basis (based on the principal amount due on each such date) among all such amounts. 
  
 4.4 Optional Prepayments. 
  
 (a) Optional Prepayments. The Company may, on any
scheduled interest payment date after the Restatement Date, prepay the principal amount of the Notes, in part, in integral multiples of one million dollars ($1,000,000), or in whole, in each case together with: 
  
 (i) an amount equal to the Make-Whole Amount, if any, at
such time in respect of the principal amount of the Notes of such Series being so prepaid; and 
  
 (ii) interest on such principal amount then being prepaid accrued to the prepayment date. 
  
 (b) Effect of Prepayments. Each prepayment of
principal of the Notes of any Series pursuant to this Section 4.4 shall be applied to reduce the principal amount of the Notes of such Series due on the maturity date of the Notes of such Series and to reduce each remaining scheduled required
prepayment of principal (if any) applicable to each such Series required by Section 4.2, in inverse order of maturity. 
  
 4.5 Notice of Optional Prepayment. 
  
 The Company will give written notice of any optional prepayment of the Notes to each holder of the Notes not less than fifteen (15) days or more than
sixty (60) days before the date fixed for prepayment, specifying: 
  
 (a) such date (which shall be a scheduled interest payment date); 
  
 (b) that such prepayment is being made pursuant to Section 4.4; 
  
 (c) the principal amount of such holder’s Notes to be prepaid on such date with respect to each Series
of Notes held by such holder; and 
  

 22 

 (d) the interest to be paid on each such Note, accrued to the date fixed for prepayment;

  
 and shall be accompanied by a certificate of a Senior Financial Officer of the
Company as to the estimated Make-Whole Amount with respect to the Series O Notes due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment and, upon request, calculated in consultation with the
holders of the Series O Notes), setting forth the details of such computation. 
  
 Such notice of prepayment shall also certify all facts that are conditions precedent to any such prepayment. Notice of prepayment having been so given, the aggregate principal amount of the Notes specified in such notice, together with the
Make-Whole Amount, if any, and accrued interest thereon shall become due and payable on the specified prepayment date. Two Business Days prior to such prepayment, the Company shall deliver to each holder of the Series O Notes a certificate of a
Senior Financial Officer specifying the calculation of the Make-Whole Amount (as calculated in consultation with the holders of the Series O Notes) in respect of the Notes of such Series as of the specified prepayment date. With respect to any such
prepayment of the Series P Notes, the holder or holders thereof at such time shall use good faith efforts to provide the Company with notice of the Make-Whole Amount (if any) due in respect of such prepayment approximately two Business Days prior to
the scheduled date of such prepayment (provided, however, that the failure of any such holder to so provide such notice shall not relieve the Company of the obligation to pay such Make-Whole Amount promptly at such later time as such holder shall
provide notice to the Company of such amount). 
  
 4.6 Pro Rata
Payments. 
  
 (a) Scheduled Required
Prepayments. If, at the time of any required prepayment of the principal of Notes of any Series made pursuant to Section 4.2 there is more than one Note of such Series outstanding, the aggregate principal amount of such required prepayment shall
be allocated among the Notes of such Series at the time outstanding pro rata in proportion to the respective unpaid principal amounts of all such outstanding Notes of such Series. 
  
 (b) Optional Prepayments. 
  
 (i) Allocation among Series. If, at the time of any optional prepayment of the principal of Notes made
pursuant to Section 4.4 there is more than one Series of Notes outstanding, the Company may: 
  
 (A) prepay the Series P Notes with or without prepaying the Notes of any other Series; or 
  
 (B) prepay the Series O Notes; provided that in the
case of any such prepayment, the aggregate principal amount of such optional prepayment shall be allocated between the Series O Notes and the Series P Notes at the time outstanding pro rata in proportion to the respective unpaid principal
amounts of each such Series. 
  

 23 

 (ii) Allocation within Series. If, at the time of any optional prepayment of the
principal of Notes of any Series made pursuant to Section 4.4 there is more than one Note of such Series outstanding, the aggregate principal amount of such optional prepayment shall be allocated among the Notes of such Series at the time
outstanding pro rata in proportion to the respective unpaid principal amounts of all such outstanding Notes of such Series. 
  
 4.7 Notation of Notes on Prepayment. 
  
 Upon any partial prepayment of a Note, such Note may, at the option of the holder thereof, be 
  
 (a) surrendered to the Company pursuant to Section 5.2 in
exchange for a new Note of the same Series, in a principal amount equal to the principal amount remaining unpaid on the surrendered Note, 
  
 (b) made available to the Company for notation thereon of the portion of the principal so prepaid, or 
  
 (c) marked by such holder with a notation thereon of the
portion of the principal so prepaid. 
  
 In case the entire principal amount of
any Note is prepaid, such Note shall be surrendered to the Company for cancellation and shall not be reissued, and no Note shall be issued in lieu of the prepaid principal amount of any Note. 
  
 4.8 No Other Optional Prepayments. 
  
 Except as provided in Section 4.4, the Company may not make any optional
prepayment (whether directly or indirectly by purchase or acquisition) in respect of the Notes. 
  
 5. REGISTRATION; SUBSTITUTION OF NOTES. 
  
 5.1 Registration of Notes. 
  
 The Company will cause to be kept at its office, maintained pursuant to Section 6.3, a register for the registration and transfer of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and
address of each transferee of one or more Notes shall be registered in the register. The Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof. 
  
 5.2 Exchange of Notes. 
  
 (a) Upon surrender of any Note at the office of the Company
maintained pursuant to Section 6.3 duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of such Note or its attorney duly authorized in writing, the Company will execute and deliver, at the
Company’s expense (except as provided below), new Notes of the same Series in exchange therefor, in denominations of 
  

 24 

 at least five hundred thousand dollars ($500,000) (except as may be necessary to reflect any principal
amount not evenly divisible by five hundred thousand dollars ($500,000)), in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request,
shall be of the same Series as the surrendered Note and shall be substantially in the form of the Exhibit Al or Exhibit A2, as the case may be, corresponding to the Series of the surrendered Note. Each such new Note shall be dated and bear interest
from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp or other
issuance tax or governmental charge imposed in respect of any such transfer of Notes. 
  
 (b) The Company will pay the cost of delivering to or from such holder’s home office or custodian bank from or to the Company,
insured to the reasonable satisfaction of such holder, the surrendered Note and any Note issued in substitution or replacement for the surrendered Note. 
  
 5.3 Replacement of Notes. 
  
 Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership (or of ownership by such Institutional Investor’s nominee) and such loss, theft, destruction or mutilation), and

  
 (a) in the case of loss, theft or
destruction, of indemnity reasonably satisfactory to the Company (provided that if the holder of such Note is an Institutional Investor or a nominee of an Institutional Investor, such Institutional Investor’s own unsecured letter
agreement of indemnity shall be deemed to be satisfactory for such purpose), or 
  
 (b) in the case of mutilation, upon surrender and cancellation thereof, 
  
 the Company at its own expense will execute and, within five (5) Business Days after such receipt, deliver, in lieu thereof, a new Note of
the same Series, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been
paid thereon. 
  
 5.4 Issuance Taxes. 
  
 The Company will pay all taxes (if any) due in connection with the execution
and delivery of this Agreement and in connection with any modification, amendment or waiver of any Financing Document and shall save each holder of Notes harmless without limitation as to time against any and all liabilities with respect to all such
taxes. The obligations of the Company under this Section 5.4 shall survive the payment or prepayment of the Notes and the termination hereof. 
  

 25 

 6. GENERAL COVENANTS. 
  
 The Company covenants and agrees that on and after the Restatement Date and thereafter for so long as any of its obligations under the Note Purchase
Agreements and the Notes shall be outstanding: 
  
 6.1 Payment
of Taxes and Claims. 
  
 The Company shall, and shall cause
each Subsidiary to, pay before they become delinquent, 
  
 (a) all taxes, assessments and governmental charges or levies imposed upon it or its Property, and 
  
 (b) all claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and other like Persons that, if unpaid, might
result in the creation of a Lien upon its Property, 
  
 provided, that
items of the foregoing description need not be paid (x) while being contested in good faith and by appropriate proceedings diligently pursued as long as adequate book reserves have been established and maintained and exist with respect thereto, and
(y) so long as the title of the Company or the Subsidiary, as the case may be, to, and its right to use, such Property, is not materially adversely affected thereby. 
  
 6.2 Maintenance of Properties and Corporate Existence. The Company shall, and shall cause each Subsidiary to,

  
 (a) Property — maintain its
Property in good condition, ordinary wear and tear excepted, and make all necessary renewals, replacements, additions, betterments and improvements thereto, and, in addition to the foregoing, the Guarantors shall collectively, during each year,
either expend or invest an aggregate amount equal to at least fifty percent (50%) of Depreciation determined for the then most recently ended fiscal year of the Company on repairs, maintenance or capital improvements to the “Improvements”
(as such term is defined in the Deeds of Trust); 
  
 (b) Insurance — maintain, with financially sound and reputable insurers accorded a rating by A.M. Best Company of “A” or better and a size rating of “XII” or better (or comparable ratings by any comparable
successor rating agency), insurance (including, without limitation, the insurance required by the Security Documents) with respect to its Property and business against such casualties and contingencies, of such types (including, without limitation,
insurance with respect to losses arising out of Property loss or damage, public liability, business interruption, larceny, workers’ compensation, embezzlement or other criminal misappropriation) and in such amounts as is customary in the case
of corporations of established reputations engaged in the same or a similar business and similarly situated; provided that the Company and the Subsidiaries may maintain one or more systems of self-insurance if adequate reserves are maintained
with respect thereto and if such systems are implemented and operated in a manner consistent with the sound financial practices of similarly situated corporations of established reputations that maintain similar systems of self-insurance;

  

 26 

 (c) Financial Records — maintain sound accounting policies and an adequate
and effective system of accounts and internal accounting controls that will safeguard assets, properly record income, expenses and liabilities and assure the production of proper financial statements in accordance with GAAP; 
  
 (d) Corporate Existence and Rights — do or cause
to be done all things necessary 
  
 (i) to
preserve and keep in full force and effect its existence, rights and franchises, 
  
 (ii) to ensure that the Company legally and beneficially owns one hundred percent (100%) of the capital stock of each of the Guarantors,
and 
  
 (iii) to maintain each Subsidiary as a
Subsidiary, except as otherwise permitted by Section 6.14 and Section 6.15(b); and 
  
 (e) Compliance with Law — not be in violation of any law, ordinance or governmental rule or regulation to which it is subject
(including, without limitation, the USA Patriot Act and any Environmental Protection Law) and not fail to obtain any license, permit, franchise or other governmental authorization necessary to the ownership of its Properties or to the conduct of its
business if such violation or failure to obtain could be reasonably expected to have a Material Adverse Effect. 
  
 6.3 Payment of Notes and Maintenance of Office. 
  
 The Company shall punctually pay, or cause to be paid, the principal of and interest (and Make-Whole Amount, if any) to become due in respect of, the
Notes, as and when the same shall become due according to the terms hereof and of the Notes, and shall maintain an office at the address of the Company set forth in Section 10.1 where notices, presentations and demands in respect hereof and of the
Notes may be made upon it. Such office shall be maintained at such address until such time as the Company shall notify the holders of the Notes of any change of location of such office, which shall in any event be located within the United States of
America. 
  
 6.4 Intentionally Deleted. 
  
 6.5 Consolidated Working Capital. 
  
 The Company shall not at any time permit Consolidated Working Capital to be
less than Two Hundred Fifty Million Dollars ($250,000,000). 
  
 6.6 Funded Debt to Capitalization Ratio. 
  
 The
Company shall not at any time permit Consolidated Funded Debt to exceed sixty-five percent (65%) of Consolidated Total Capitalization. 
  

 27 

 6.7 Maintenance of Funded Debt. 
  
 The Company shall not permit Consolidated Funded Debt, determined as of the end of each fiscal quarter of the Company, to
exceed four hundred percent (400%) of Consolidated EBITDA for the period of four (4) consecutive fiscal quarters of the Company ended at such time. 
  
 6.8 Consolidated Interest Coverage Ratio; Consolidated Fixed Charges. 
  
 (a) The Company shall not permit the ratio of Consolidated EBITDA to Consolidated Interest Expense for any
period of four consecutive fiscal quarters of the Company to be less than 3.00 to 1.00. 
  
 (b) The Company shall not at any time permit the ratio of Consolidated Net Income Available for Fixed Charges (calculated in respect of
the period of eight (8) consecutive fiscal quarters of the Company then most recently ended) to Consolidated Fixed Charges (calculated in respect of such period) to be less than 1.50 to 1.00. 
  
 6.9 Restrictions on Dividends, etc. 
  
 The Company shall not, and shall not permit any Subsidiary to, create or
otherwise cause or suffer to exist or become effective any restriction or encumbrance (other than statutory, regulatory or common law restrictions) on the right or power of any Subsidiary to 
  
 (a) pay dividends or make any other distributions on such
Subsidiary’s stock to the Company or any Subsidiary, 
  
 (b) pay any indebtedness owed by such Subsidiary to the Company or any Subsidiary, 
  
 (c) make loans or pay advances to the Company or any Subsidiary, or 
  
 (d) transfer any of its Property to the Company or any Guarantor; 
  
 provided, however, that: 
  
 (x) a Subsidiary may be subject to an encumbrance or restriction described in
subsection (d) above if such encumbrance or restriction (i) restricts in a customary manner the subletting, assignment or transfer of any property or asset that is subject to a lease, license, or similar contract, (ii) exists by virtue of any
transfer of, agreement to transfer, option, or right with respect to, any property or assets of the Company or any Subsidiary not otherwise prohibited by this Note Purchase Agreement, or (iii) is contained in a security agreement, mortgage or other
similar document securing Debt of the Company or any Subsidiary that is permitted hereunder to the extent such restriction or encumbrance restricts the transfer of the property subject to such agreement, or (iv) ordinary course provisions
restricting the assignability of contracts; 
  

 28 

 (y) a Subsidiary may be subject to restrictions on the payment of dividends or the making of other
distributions on its stock to the Company or the other Subsidiaries so long as such restrictions permit the payment of such dividends and the making of such other distributions that are necessary in order to make any and all payments due (including,
without limitation, any and all amounts due by way of acceleration, required or optional prepayment or otherwise) in connection with the Notes, the Note Purchase Agreements and the other Financing Documents, and any and all indebtedness used to
refinance or repay such indebtedness (without increase as to principal amount or interest rate of such refinancing indebtedness); and 
  
 (z) a Subsidiary may be subject to any such encumbrance and restriction that is not otherwise allowed under subsections (x) and (y) above, so long as the
aggregate contributions to Consolidated EBITDA for the period of four (4) fiscal quarters then most recently ended of all Subsidiaries subject to such encumbrances and restrictions that are not otherwise allowed under subsections (x) and (y) above,
are less than or equal to fifteen percent (15%) of such Consolidated EBITDA; such contribution shall be based on the earnings before interest, taxes, depreciation and amortization of each such Subsidiary for such fiscal year. 
  
 6.10 Consolidated Net Worth. 
  
 The Company shall not at any time permit Consolidated Net Worth, determined
at such time, to be less than the sum of 
  
 (a) one billion four hundred fifty million dollars ($1,450,000,000), plus 
  
 (b) the sum of the Company Fiscal Year Net Worth Increase Amounts calculated for all fiscal years of the Company ended on or after
the Restatement Date. 
  
 6.11 Terrorism Sanctions Regulations.

  
 The Company will not and will not permit any Subsidiary
to (a) become a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (b) engage in any dealings or transactions with any
such Person. 
  
 6.12 Restricted Payments and Restricted
Investments. 
  
 (a) Limitation on
Restricted Payments and Restricted Investments. The Company shall not, and shall not permit any Subsidiary to, at any time declare or make or incur any liability to declare or make any Restricted Payment (other than Restricted Payments comprised
solely of Distributions to the Company or a Wholly-Owned Subsidiary in respect of the capital stock of a Subsidiary (“Permitted Distributions”))or make or authorize any Restricted Investment, unless 
  
 (i) immediately after giving effect to the proposed
Restricted Payment or Restricted Investment, the aggregate amount of all Restricted Payments (other than Permitted Distributions) and Restricted Investments in each case made or authorized after February 1, 2000 does not exceed the sum of

  

 29 

 (A) one hundred million dollars ($100,000,000); plus 
  
 (B) fifty percent (50%) of the aggregate Consolidated Net
Income (or, in case such aggregate Consolidated Net Income shall be a deficit, minus one hundred percent (100%) of such deficit) for the period commencing on February 1, 2000 and ending on the date of such proposed transaction; plus

  
 (C) one hundred percent (100%) of the
aggregate net cash proceeds received by the Company after March 9, 2000 from the issuance or sale of shares of capital stock of the Company (other than Mandatorily Redeemable Stock); plus 
  
 (D) the market value of (but in any event not exceeding the
Fair Market Value of the assets or stock acquired with) the shares of capital stock issued by the Company in payment for the stock or assets of any Person acquired by the Company or any Subsidiary after March 9, 2000 in an arm’s-length
transaction; 
  
 (ii) immediately prior to, and
immediately after giving effect to the proposed Restricted Payment or Restricted Investment, the Company would be permitted by Section 6.6 to incur at least one dollar ($1.00) of additional Funded Debt owed to a Person other than a Subsidiary; and

  
 (iii) immediately prior to, and immediately
after giving effect to, the proposed Restricted Payment or Restricted Investment, no Default or Event of Default exists or would exist. 
  
 (b) Time of Payment of Distributions. The Company shall not, and shall not permit any Subsidiary to, authorize a Distribution on
its capital stock that is not payable within sixty (60) days of authorization. 
  
 (c) Subsidiaries. Each Person that becomes a Subsidiary after the Restatement Date shall be deemed to have made, at the time it
becomes a Subsidiary, all Restricted Investments of such Person existing immediately after it becomes a Subsidiary. 
  
 6.13 Liens. 
  
 (a) Negative Pledge. The Company shall not, and shall not permit any Subsidiary to, cause or permit, or agree or consent to cause
or permit in the future (upon the happening of a contingency or otherwise), any of their Property, whether now owned or hereafter acquired, to be subject to a Lien except: 
  
 (i) Liens securing taxes, assessments or governmental charges or levies or the claims or demands of
materialmen, mechanics, carriers, warehousemen, landlords and other like Persons, provided that the payment thereof is not at the time required by Section 6.1 or by any provision of the other Financing Documents; 
  

 30 

 (ii) Liens incurred or deposits made in the ordinary course of business 
  
 (A) in connection with workers’ compensation,
unemployment insurance, social security and other like laws, and 
  
 (B) to secure the performance of letters of credit, bids, tenders, sales contracts, leases, statutory obligations, surety and performance bonds (of a type other than set forth in Section 6.13(a)(iii)) and other
similar obligations not incurred in connection with the borrowing of money, the obtaining of advances or the payment of the deferred purchase price of Property; 
  
 (iii) Liens 
  
 (A) arising from judicial attachments and judgments, 
  
 (B) securing appeal bonds, supersedeas bonds, or 
  
 (C) arising in connection with court proceedings
(including, without limitation, surety bonds and letters of credit or any other instrument serving a similar purpose), 
  
 provided that the execution or other enforcement of such Liens is effectively stayed and the claims secured thereby are being actively contested
in good faith and by appropriate proceedings, and provided further that the aggregate amount so secured shall not at any time exceed one million dollars ($1,000,000); 
  
 (iv) Liens in the nature of reservations, exceptions, encroachments, easements, rights-of-way, covenants,
conditions, restrictions, leases and other similar title exceptions or encumbrances affecting real Property, provided that such exceptions and encumbrances do not in the aggregate materially detract from the value of such Properties or
materially interfere with the use of such Properties in the ordinary conduct of the owning Person’s business; 
  
 (v) (A) Liens (of a type other than set forth in Section 6.13(a)(ix)) in existence on the Closing Date, more specifically described on
Part 6.13(a)(v) of Annex 2; and 
  
 (B) Liens
securing renewals, extensions and refinancings of Debt secured by the Liens permitted by clause (A) immediately above, provided that the amount of Debt secured by each such Lien is not increased in excess of the amount of Debt outstanding on
the date such Lien was originally created, and none of such Liens is extended to include any additional Property of the Company or any Subsidiary; 
  

 31 

 (vi) on or prior to the Collateral Release Date, Liens on the Collateral 
  
 (A) in favor of the Security Trustee for the benefit of the
holders of the Notes that secure obligations under any of the Financing Documents, and 
  
 (B) constituting Permitted Exceptions; 
  
 (vii) on or prior to the Collateral Release Date, Liens on Property (other than the Collateral) securing Funded Debt (other than Funded
Debt outstanding under the Credit Facility) incurred and permitted to exist in accordance with the provisions of Sections 6.6 and 6.7; 
  
 (viii) Purchase Money Liens, if, after giving effect thereto and to any concurrent transactions: 
  
 (A) each such Purchase Money Lien secures Debt in an amount
not exceeding the cost of acquisition or construction of the particular Property to which such Debt relates; and 
  
 (B) no Default or Event of Default would exist; 
  

(ix) on or prior to the Collateral Release Date, Liens on Property of the Subsidiaries primarily constituting inventory or accounts
that secure obligations arising under Revolving Credit Agreements of the Company or any Subsidiary; and 
  
 (x) after the Collateral Release Date, Liens securing Debt of the Company or any Subsidiary, provided that at the time of the
incurrence thereof and after giving effect thereto and to the concurrent retirement of any other Debt, 
  
 (A) the aggregate outstanding principal amount of all Debt of the Company and the Subsidiaries secured by Liens (including, without
limitation, Liens permitted by Section 6.13(a)(v) and Section 6.13(a)(viii)) would not exceed fifteen percent (15%) of Consolidated Tangible Net Worth, determined at such time; and 
  
 (B) no Default or Event of Default would exist. 
  
 (b) Collateral. Nothing in this Section 6.13 shall be
deemed to permit the Company or any Guarantor to cause or permit, or agree or consent to cause or permit in the future (upon the happening of a contingency or otherwise), any of the Collateral, whether now owned or hereafter acquired, to be subject
to a Lien in violation of the terms of the Security Documents. 
  
 (c) Stock. Notwithstanding anything to the contrary in Section 6.13(a), the Company shall not, and shall not permit any Subsidiary to cause or permit, or agree or consent to cause or permit in the future (upon
the happening of a contingency or otherwise), any of the capital stock of any Subsidiary, whether now owned or hereafter acquired, to be subject to a Lien. 
  

 32 

 (d) Equal and Ratable Lien; Equitable Lien. In case any Property not otherwise the
subject of a prior perfected Lien in favor of the Security Trustee shall be subjected to a Lien in violation of this Section 6.13, the Company shall forthwith make or cause to be made, to the fullest extent permitted by applicable law, provision
whereby the Notes shall be secured equally and ratably with all other obligations secured thereby pursuant to such agreements and instruments as shall be approved by the Required Holders, and the Company shall cause to be delivered to each holder of
a Note an opinion of independent counsel to the effect that such agreements and instruments are enforceable in accordance with their terms, and in any such case the Notes shall have the benefit, to the full extent that, and with such priority as,
the holders may be entitled thereto under applicable law, of an equitable Lien on such Property securing the Notes. Such violation of this Section 6.13 shall constitute an Event of Default hereunder, whether or not any such provision is made
pursuant to this Section 6.13(d). 
  
 (e)
Financing Statements. The Company shall not, and shall not permit any Subsidiary to, sign or file a financing statement under the Uniform Commercial Code of any jurisdiction that names the Company or such Subsidiary as debtor, or sign any
security agreement authorizing any secured party thereunder to file any such financing statement, except, in any such case, a financing statement filed or to be filed to perfect or protect a security interest that the Company or such Subsidiary is
entitled to create, assume or incur, or permit to exist, under the foregoing provisions of this Section 6.13 or to evidence for informational purposes a lessor’s interest in Property leased to the Company or any such Subsidiary. 
  
 6.14 Merger; Acquisition. 
  
 (a) Merger and Consolidation. The Company shall not,
and shall not permit any Subsidiary to, merge with or into, consolidate with, or sell, lease as lessor, transfer or otherwise dispose of all or substantially all of its Property to, any other Person or permit any other Person to merge with or into
or consolidate with it (except (x) for the completion of the Great Lakes Cattle Merger and (y) that a Subsidiary other than a Guarantor may merge into, consolidate with, or sell, lease, transfer or otherwise dispose of all or substantially all of
its assets to, the Company or a Wholly-Owned Subsidiary other than a Guarantor); provided that the foregoing restriction does not apply to the merger or consolidation of the Company with or into, or the sale, lease, transfer or other
disposition by the Company of all or substantially all of its Property to, another corporation, if: 
  
 (i) the corporation that results from such merger or consolidation or that purchases, leases, or acquires all or substantially all of such
Property (the “Surviving Corporation”) is organized under the laws of, and has substantially all of its Property located in, the United States of America or any jurisdiction thereof; 
  

 33 

 (ii) the due and punctual payment of the principal of and Make-Whole Amount, if any, and
interest on all of the Notes, according to their tenor, and the due and punctual performance and observance of all the covenants herein and in the other Financing Documents to be performed and observed by the Company, are expressly assumed by the
Surviving Corporation pursuant to such agreements or instruments as shall be satisfactory to the Required Holders, and the Company shall cause to be delivered to each holder of Notes an opinion of independent counsel (which opinion and counsel are
satisfactory to the Required Holders) to the effect that such agreements and instruments are enforceable in accordance with their terms; 
  
 (iii) immediately prior to, and immediately after the consummation of such transaction, and after giving effect thereto, the Company would
be permitted by Section 6.6 to incur at least one dollar ($1.00) of additional Funded Debt owed to a Person other than a Subsidiary; and 
  
 (iv) immediately prior to, and immediately after the consummation of such transaction, and after giving effect thereto, no Default or
Event of Default exists or would exist. 
  
 (b)
Acquisitions. The Company will not, and will not permit any of its Subsidiaries to consummate any Acquisition or Joint Venture Investment, unless immediately prior to such Acquisition or Joint Venture Investment and after giving effect
thereto, no Default or Event of Default shall have occurred and be continuing, and: 
  
 (i) (a) such transaction is an Acquisition and such Acquisition (if by purchase of assets, merger or consolidation) is effected in such
manner that the acquired business, and the related assets, are owned either by the Company or a Subsidiary and, if effected by merger or consolidation involving the Company, the Company is the continuing or surviving entity and, if effected by
merger or consolidation involving a Subsidiary, the continuing or surviving entity is a Subsidiary; or (b) such transaction is an Acquisition and such Acquisition (if by purchase of stock or partner, member or other ownership interests) is effected
in such manner so that the acquired entity becomes a Subsidiary; and 
  
 (ii) such transaction is an Acquisition or a Joint Venture Investment and immediately after giving effect to such Acquisition or Joint Venture Investment the Company is in compliance with Sections 6.5, 6.6, 6.7, 6.8
and 6.10 (the determination of such compliance to be calculated on a pro forma basis, as at the end of the fiscal quarter most recently ended prior to the date of such Acquisition or Joint Venture Investment for which financial
statements of the Company and its Subsidiaries are available, under the assumption that such Acquisition or Joint Venture Investment and any other Acquisitions or Joint Venture Investments consummated during the twelve-month period ending on such
date shall have occurred, and any Debt in connection therewith shall have been incurred, at the beginning of the applicable period, and under the assumption that interest for such period had been equal to the actual weighted average interest rate in
effect for 
  

 34 

 such period for all loans outstanding under the Credit Facility on the date of such Acquisition or Joint
Venture Investment) and, in the event that the aggregate amount of expenditures in respect of such Acquisition or Joint Venture Investment and of all prior Acquisitions and Joint Venture Investments made during a single fiscal year and not covered
by a certificate delivered under this subclause (ii) exceeds $100,000,000, the Company shall have delivered to each of the holders of Notes a certificate of a Senior Financial Officer showing calculations in reasonable detail to demonstrate
compliance with this subclause (ii) and certifying that prior to such acquisition and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing. 
  
 6.15 Transfers of Property; Subsidiary Stock. 
  
 (a) Transfers of Property. The Company shall not, and shall not permit any Subsidiary to, sell
(including, without limitation, any sale and subsequent leasing as lessee of such Property), lease as lessor, transfer, or otherwise dispose of any Property (individually, a “Transfer” and collectively,
“Transfers”), except 
  
 (i) Transfers of inventory, obsolete or worn-out Property or excess equipment no longer useful in the business of the Company or such Subsidiary, in each case in the ordinary course of business of the Company or such Subsidiary, and the
Smithfield Canada Transfer; 
  
 (ii) Transfers
from a Subsidiary to the Company or to any Guarantor and Transfers from the Company to any Guarantor; and 
  
 (iii) any other Transfer (including a Transfer of Property to any Person and the concurrent rental or lease of such transferred Property
from such Person) at any time of any Property to a Person, other than an Affiliate, for an Acceptable Consideration, if each of the following conditions would be satisfied with respect to such Transfer: 
  
 (A) the sum of 
  
 (I) the current book value of such Property, plus 
  
 (II) the aggregate book value of all other Property of the
Company and the Subsidiaries Transferred (other than in Transfers referred to in the foregoing clause (i) and clause (ii) (collectively, “Excluded Transfers”)) during the period beginning on the first day of the then current
fiscal year of the Company and ended immediately prior to the date of such Transfer, 
  
 would not exceed ten percent (10%) of Consolidated Total Assets determined as at the end of the most recently ended fiscal year of the Company prior to giving effect to such Transfer, 
  
 (B) the sum of 
  

 35 

 (I) the current book value of such Property, plus 
  
 (II) the aggregate book value of all other Property of the
Company and the Subsidiaries Transferred (other than in Excluded Transfers) during the period commencing on October 31, 1999 and ended at the time of such Transfer, 
  
 would not exceed twenty percent (20%) of Consolidated Total Assets determined as at the end of the most recently ended
fiscal year of the Company prior to giving effect to such Transfer, and 
  
 (C) immediately prior to, and immediately after the consummation of such transaction, and after giving effect thereto, no Default or Event of Default exists or would exist, 
  
 provided, that all or any portion of the assets which are the subject
of any Transfer of Property shall be excluded for purposes of clause (A) and clause (B) of this Section 6.15(a)(iii), and such Transfer shall be a Transfer permitted under this Section 6.15(a)(iii) notwithstanding non-compliance with clause (A) and
clause (B) of this Section 6.15(a)(iii), if, within three hundred sixty (360) days after such Transfer, the entire proceeds of all or any portion of such Transfer to be excluded (net of ordinary and reasonable transaction costs and expenses incurred
in connection with such Transfer) are applied by the Company or such Subsidiary to: 
  
 (x) the purchase of operating assets of the Company or any Subsidiary reasonably equal in value to that portion of the Property which is
the subject of such Transfer and is to be excluded of clause (A) and (B) of this Section 6.15 (a) (iii), so long as each such investment shall not have been included in the calculation of any other exclusion of any other Transfer proposed to be
excluded from the operation of clause (A) or clause (B) of this Section 6.15(a)(iii), or 
  
 (y) an optional prepayment of Notes pursuant to Section 4.4. 
  
 Notwithstanding anything to the contrary contained herein, the Company shall not, and shall not permit any Subsidiary to,
sell, lease as lessor, transfer or otherwise dispose of any of the Collateral except as expressly permitted by Section 6.15(c). Nothing in this Section 6.15(a) shall be deemed to permit the Company or any Subsidiary to violate any provisions of
Section 6.16. 
  
 (b) Transfers of Subsidiary
Stock. The Company shall not, and shall not permit any Subsidiary to, Transfer any shares of the capital stock (or any warrants, rights or options to purchase stock or other Securities exchangeable for or convertible into capital stock) of a
Subsidiary (such capital stock, warrants, rights, options and other Securities herein called “Subsidiary Stock”), nor shall any Subsidiary issue, sell or otherwise dispose of any shares of its own Subsidiary Stock,
provided that the foregoing restrictions do not apply to: 
  
 (i) the issuance by a Subsidiary of shares of its own Subsidiary Stock to the Company or a Wholly-Owned Subsidiary; 
  

 36 

 (ii) Transfers by the Company or a Subsidiary of shares of Subsidiary Stock to the
Company or a Wholly-Owned Subsidiary; 
  
 (iii)
the issuance by a Subsidiary of directors’ qualifying shares; and 
  
 (iv) the Transfer of all of the Subsidiary Stock of a Subsidiary owned by the Company and the other Subsidiaries if 
  
 (A) such Transfer satisfies the requirements of Section 6.15(a)(iii); 
  
 (B) in connection with such Transfer the entire investment (whether represented by stock, Debt, claims or
otherwise) of the Company and the other Subsidiaries in such Subsidiary is Transferred to a Person other than the Company or a Subsidiary not simultaneously being disposed of; 
  
 (C) the Subsidiary being disposed of has no continuing investment in any other Subsidiary not
simultaneously being disposed of or in the Company; and 
  
 (D) immediately prior to, and immediately after the consummation of such Transfer, and after giving effect thereto, no Default or Event of Default exists or would exist. 
  
 For purposes of determining the book value of Property constituting
Subsidiary Stock being Transferred as provided in clause (iv) above, such book value shall be deemed to be the aggregate book value of all assets of the Subsidiary that shall have issued such Subsidiary Stock. 
  
 Nothing in this Section 6.15(b) shall be deemed to permit
the Company or any Subsidiary to (x) sell any shares of capital stock of any Subsidiary in violation of Section 6.2(d)(ii) or (y) violate any of the provisions of Section 6.16. 
  
 (c) Transfers of Collateral. The Company shall not, and shall not permit any Subsidiary to, sell or
otherwise Transfer any Property constituting Collateral, except Transfers for an Acceptable Consideration of obsolete or worn-out equipment constituting Collateral, or excess equipment constituting Collateral, in each case that is no longer useful
in the business of the Company or such Subsidiary, if each of the following conditions would be satisfied with respect to such Transfer: 
  
 (i) the sum of 
  
 (A) the current book value of such Property, plus 
  

 37 

 (B) the aggregate book value of all other Property of the Company and the Subsidiaries
Transferred pursuant to this Section 6.15(c) during the period beginning on the first day of the then current fiscal year of the Company and ended immediately prior to the date of such Transfer would not exceed five million dollars ($5,000,000),

  
 (ii) the sum of 
  
 (A) the current book value of such Property, plus

  
 (B) the aggregate book value of all other
Property of the Company and the Subsidiaries Transferred pursuant to this Section 6.15(c) during the period commencing on October 31, 1999 and ended at the time of such Transfer, would not exceed twenty million dollars ($20,000,000) and 

 
 (iii) immediately prior to, and immediately after the
consummation of such transaction, and after giving effect thereto, no Default or Event of Default exists or would exist, 
  
 provided, that all or any portion of the assets which are the subject of any Transfer of Property shall be excluded for purposes of clause (i) and
clause (ii) of this Section 6.15(c) if, within three hundred sixty (360) days after such Transfer, the entire proceeds of such Transfer (net of ordinary and reasonable transaction costs and expenses incurred in connection with such Transfer) are
applied by the Company or such Subsidiary to: 
  
 (x) the purchase of Property of the Company or any Subsidiary reasonably equal in value or use to the Property which is the subject of such Transfer, so long as (1) such Property is subject to a perfected first-priority security interest in
favor of the Security Trustee for the benefit of the holders from time to time of the Notes, (2) such Property constitutes Collateral and (3) each such investment shall not have been included in the calculation of any other exclusion of any other
Transfer proposed to be excluded from the operation of clause (i) or clause (ii) of this Section 6.15(c), or 
  
 (y) an optional prepayment of Notes pursuant to Section 4.4. 
  
 The Company acknowledges and agrees that until applied pursuant to this Section 6.15(c), the net proceeds of any such Transfer of Collateral
by the Company or any Subsidiary shall be held in trust by the Security Trustee pursuant to the terms of the Security Documents. 
  
 6.16 Trademark Subsidiaries. 
  
 (a) Generally. The Company shall not, and shall not permit any Subsidiary other than a Trademark Subsidiary to, own any patents,
trademarks, service marks, trade names, copyrights and other similar licenses and intangibles used or useful in the conduct of the business of the Company or any Subsidiary. 
  

 38 

 (b) Ownership of Trademark Subsidiaries. The Company (i) shall, at all times,
maintain each Trademark Subsidiary as a Wholly-Owned Subsidiary and (ii) shall not permit any of the capital stock of any Trademark Subsidiary to be subject to a Lien. 
  
 (c) No Sale or Merger. The Company shall not permit any Trademark Subsidiary to merge with or into,
consolidate with, or sell, lease, transfer or otherwise dispose of all or substantially all of its Property to, any other Person other than another Trademark Subsidiary, or permit any other Person other than a Trademark Subsidiary to merge with or
into or consolidate with it. The Company shall not permit any Trademark Subsidiary to sell, lease as lessor, license as licensor, transfer or otherwise dispose of any patents, trademarks, service marks, trade names, copyrights and licenses.

  
 (d) No Debt or Liens. The Company
shall not permit any Trademark Subsidiary to cause or permit, or agree or consent to cause or permit in the future (upon the happening of a contingency or otherwise), any of its Property, whether now owned or hereafter acquired, to be subject to a
Lien. The Company shall not at any time permit any Trademark Subsidiary to be or become liable for any Debt or to issue any Mandatorily Redeemable Stock. 
  
 6.17 Environmental Compliance. 
  
 (a) Compliance. The Company shall, and shall cause each Subsidiary to, comply with all Environmental Protection Laws in effect in
each jurisdiction where it is doing business and where the failure to comply with which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 (b) Liability. The Company shall not, and shall not permit any Subsidiary to, permit itself to be
subject to any liability under any Environmental Protection Laws that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
  
 6.18 Line of Business. 
  
 The Company shall not, and shall not permit any Subsidiary to, engage in any business other than businesses engaged in by the Company and the Subsidiaries
on the Closing Date. 
  
 6.19 Transactions with Affiliates.

  
 The Company shall not, and shall not permit any
Subsidiary to, enter into any transaction, including, without limitation, the purchase, sale or exchange of Property or the rendering of any service, with any Affiliate, except in the ordinary course of and pursuant to the reasonable requirements of
the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would obtain in a comparable arm’s length transaction with a Person not an Affiliate. 

 

 39 

 6.20 Tax Consolidation. 
  
 The Company shall not file or consent to the filing of a consolidated tax return with any Person other than a Subsidiary, or
permit the filing of any consolidated tax return by any Subsidiary with any Person other than the Company or another Subsidiary. 
  
 6.21 ERISA. 
  
 (a) Compliance. The Company shall, and shall cause each ERISA Affiliate to, at all times with respect to each Pension Plan,

  
 (i) make timely payment of contributions
required 
  
 (A) to meet the minimum funding
standard set forth in ERISA or the IRC with respect thereto, or 
  
 (B) to be paid as provided for by section 515 of ERISA, and 
  
 (ii) comply with all other applicable provisions of ERISA. 
  
 (b) Relationship of Vested Benefits to Pension Plan Assets. 
  
 (i) The Company shall not at any time permit the present
value of all employee benefits vested under all Morrell Pension Plans to exceed the assets of such Morrell Pension Plans allocable to such vested benefits at such time by more than fifty-five million dollars ($55,000,000), in each case determined
pursuant to Section 6.21(c). 
  
 (ii) The Company
shall not at any time permit the present value of all employee benefits vested under all Pension Plans other than Morrell Pension Plans to exceed the assets of all such Pension Plans other than Morrell Pension Plans allocable to such vested benefits
at such time by more than five percent (5%) of Consolidated Total Liabilities, in each case determined pursuant to Section 6.21(c). 
  
 (c) Valuations. All assumptions and methods used to determine the actuarial valuation of vested employee benefits under Pension
Plans and the present value of assets of Pension Plans shall be reasonable in the good faith judgment of the Company and shall comply with all requirements of law. 
  
 (d) Prohibited Actions. The Company shall not, and shall not permit any ERISA Affiliate to:

  
 (i) engage in any “prohibited
transaction” (as such term is defined in section 406 of ERISA or section 4975 of the IRC) or “reportable event” (as such term is defined in section 4043 of ERISA) that would result in the imposition of a material tax or penalty;

  

 40 

 (ii) incur with respect to any Pension Plan any “accumulated funding
deficiency” (as such term is defined in section 302 of ERISA), whether or not waived; 
  
 (iii) terminate any Pension Plan in a manner that could result in 
  
 (A) the imposition of a Lien on the Property of the Company or any Subsidiary pursuant to section 4068 of
ERISA or 
  
 (B) the creation of any liability
under section 4062 of ERISA; 
  
 (iv) fail to
make any payment required by section 515 of ERISA; or 
  
 (v) be an “employer” (as such term is defined in section 3 of ERISA) required to contribute to any Multiemployer Plan or a “substantial employer” (as such term is defined in section 4001 of ERISA) required to contribute
to any Multiple Employer Pension Plan if, at such time, it could reasonably be expected that the Company or any Subsidiary will incur withdrawal liability in respect of such Multiemployer Plan and such liability, if incurred, together with the
aggregate amount of all other withdrawal liability as to which there is a reasonable expectation of incurrence by the Company or any Subsidiary under any one or more Multiemployer Plans, could reasonably be expected to have a Material Adverse
Effect. 
  
 (e) Foreign Pension Plans. To
the extent that the Company or any Subsidiary is subject to any requirements of any Foreign Pension Plan, the Company shall, and shall cause each such Subsidiary to, comply with such requirements if the failure to so comply would have, either
individually or in the aggregate, a Material Adverse Effect. 
  
 6.22 Guaranties. 
  
 (a) The
Company shall not, and shall not permit any Subsidiary to, be or become liable in respect of any Guaranty except 
  
 (i) Guaranties of Debt which constitutes a part of Consolidated Funded Debt; 
  
 (ii) Guaranties of obligations incurred in the ordinary
course of business of the Company and the Subsidiaries; 
  
 (iii) Guaranties of liabilities which constitute a part of Consolidated Current Liabilities (including, without limitation, Guaranties of obligations of the Company and the Subsidiaries under Revolving Credit
Agreements to the extent such Guaranties are not permitted by clause (i) above); and 
  
 (iv) Guaranties of amounts payable with respect to Operating Rentals constituting a portion of Consolidated Fixed Charges. 
  

 41 

 (b) Notwithstanding the provisions of clause (a) above, the Company shall not permit any
Subsidiary to 
  
 (i) be or become liable for any
Guaranty of Debt of the Company, any other Subsidiary or any Affiliate, or 
  
 (ii) issue any Mandatorily Redeemable Stock, 
  
 in each case unless such Subsidiary enters into an enforceable and unconditional Guaranty of the obligations of the Company under the Notes, upon terms and conditions satisfactory to the Required Holders. Notwithstanding the foregoing
provisions of this Section 6.22, in no event shall the Company or any Subsidiary be or become liable in respect of any Guaranty of Third Party Debt if the indebtedness or other liabilities that are the subject of such Guaranty would not be permitted
pursuant to Section 6.6 or Section 6.7. 
  
 6.23 Private
Offering. 
  
 The Company shall not, and shall not permit any
Subsidiary or any Person acting on its behalf to, offer the Notes or any part thereof or any similar Securities for issuance or sale to, or solicit any offer to acquire any of the same from, any Person so as to bring the issuance and sale of the
Notes within the provisions of section 5 of the Securities Act. 
  
 7.
INFORMATION AS TO COMPANY AND GUARANTORS. 
  
 7.1
Financial and Business Information. The Company shall deliver to each holder of Notes: 
  
 (a) Company Quarterly Statements — as soon as practicable after the end of each quarterly fiscal period in each fiscal year of
the Company (other than the last quarterly fiscal period of each such fiscal year), and in any event within forty-five (45) days thereafter, duplicate copies of: 
  
 (i) consolidated and consolidating balance sheets of the Company and its consolidated subsidiaries, and of
the Company and the Subsidiaries, as at the end of such quarter, and 
  
 (ii) consolidated and consolidating statements of income and cash flows of the Company and its consolidated subsidiaries, and of the Company and the Subsidiaries, for such quarter and (in the case of the second and
third quarters) for the portion of the fiscal year ending with such quarter, setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with
GAAP applicable to quarterly financial statements generally, and certified as complete and correct, subject to changes resulting from year-end adjustments, by a Senior Financial Officer, accompanied by the certificate required by Section 7.2;

  

 42 

 (b) Company Annual Statements — as soon as practicable after the end of each
fiscal year of the Company, and in any event within ninety (90) days thereafter, duplicate copies of: 
  
 (i) a consolidated balance sheet of the Company and its consolidated subsidiaries, and a consolidating balance sheet of the Company and
each Guarantor, as at the end of such year, and 
  
 (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its consolidated subsidiaries, and consolidating statements of income and cash flows of the Company and each Guarantor, for such
year, 
  
 setting forth in each case in comparative form the figures for the
immediately preceding fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by 
  
 (A) in the case of such consolidated financial statements, an audit report thereon of independent certified public accountants of
recognized national standing, which opinion shall state, without qualification, that such financial statements present fairly, in all material respects, the consolidated financial position of the companies being reported upon and their consolidated
results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards,
and that such audit provides a reasonable basis for such opinion in the circumstances, 
  
 (B) a certification by a Senior Financial Officer that such consolidated statements are complete and correct, and 
  
 (C) the certificates required by Section 7.2 and Section
7.3; 
  
 (c) Audit Reports — promptly
upon receipt thereof, a copy of each other report submitted to the Company or any Subsidiary by independent accountants in connection with any management report, special audit report or comparable analysis prepared by them with respect to the books
of the Company or any Subsidiary; 
  
 (d) SEC
and Other Reports — promptly upon their becoming available, a copy of each financial statement, report (including, without limitation, each Quarterly Report on Form 10-Q, each Annual Report on Form 10-K and each Current Report on Form 8-K),
notice or proxy statement sent by the Company or any Subsidiary to stockholders generally and of each regular or periodic report and any registration statement, prospectus or written communication (other than transmittal letters), and each amendment
thereto, in respect thereof filed by the Company or any Subsidiary with, or received by, such Person in connection therewith from, the National Association of Securities Dealers, any securities exchange or the Securities and Exchange Commission or
any successor agency; 
  

 43 

 (e) ERISA —  
  
 (i) promptly (and in any event, within five (5) Business Days) after any officer of the Company becoming
aware of any 
  
 (A) “reportable
event” (as defined in section 4043 of ERISA), or 
  
 (B) “prohibited transaction” (as defined in section 406 of ERISA or section 4975 of the IRC), 
  
 in connection with any Pension Plan or any trust created thereunder, a written notice specifying the nature thereof, what action the Company is taking or
proposes to take with respect thereto and, when known, any action taken by the IRS, the Department of Labor or the PBGC with respect thereto, and 
  
 (ii) promptly (and in any event, within five (5) Business Days) after any officer of the Company becoming aware thereof, written notice of
and, where applicable, a description of 
  
 (A)
any notice from the PBGC in respect of the commencement of any proceedings pursuant to section 4042 of ERISA to terminate any Pension Plan or for the appointment of a trustee to administer any Pension Plan, 
  
 (B) any distress termination notice delivered to the PBGC
under section 4041 of ERISA in respect of any Pension Plan, and any determination of the PBGC in respect thereof, 
  
 (C) the placement of any Multiemployer Plan in reorganization status under Title IV of ERISA, 
  
 (D) any Multiemployer Plan becoming “insolvent”
(as defined in section 4245 of ERISA) under Title IV of ERISA, or 
  
 (E) the whole or partial withdrawal of the Company or any ERISA Affiliate from any Multiemployer Plan and the withdrawal liability incurred in connection therewith; 
  
 (f) Actions, Proceedings — promptly after the
commencement thereof, notice of any action or proceeding relating to the Company or any Subsidiary in any court or before any Governmental Authority or arbitration board or tribunal as to which there is a reasonable probability of an adverse
determination and that, if adversely determined, would have a Material Adverse Effect; 
  
 (g) Certain Environmental Matters — prompt written notice of and a description of any event or circumstance that, had such
event or circumstance occurred or existed prior to the Closing Date, would have been required to be disclosed as an exception to any statement set forth in Section 2.14 and a description of the action that the Company is taking or proposes to take
with respect thereto; 
  

 44 

 (h) Notice of Default or Event of Default — within five (5) Business Days of
any Senior Officer becoming aware of the existence of any condition or event that constitutes a Default or an Event of Default, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes
to take with respect thereto; 
  
 (i) Notice
of Claimed Default — within five (5) Business Days of any Senior Officer becoming aware that the holder of any Note, or of any Debt or any Security of the Company or any Subsidiary, shall have given notice or taken any other action with
respect to a claimed Default, Event of Default, default or event of default, a written notice specifying the notice given or action taken by such holder and the nature of the claimed Default, Event of Default, default or event of default and what
action the Company is taking or proposes to take with respect thereto; 
  
 (j) Information Furnished Under Revolving Credit Agreement — at any time that at least one Revolving Credit Agreement is in effect, at the same time required thereby, a copy of each item required to be
furnished by the Company or any Subsidiary pursuant thereto; 
  
 (k) Other Creditors — promptly upon the request of any holder of Notes, copies of any statement, report or certificate furnished to any holder of Debt of the Company or any Subsidiary to the extent that
the information contained in such statement, report or certificate has not already been delivered to each holder of Notes; 
  
 (l) Rule 144A — with reasonable promptness, upon the request of any holder of Notes, information required to comply with 17
C.F.R. §230.144A, as amended from time to time; and 
  
 (m) Requested Information — with reasonable promptness, such other data and information as from time to time may be reasonably requested by any holder of Notes. 
  
 7.2 Officer’s Certificates. 
  
 Each set of financial statements delivered to each holder of Notes pursuant
to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth: 
  
 (a) Covenant Compliance — the information (including detailed calculations) required in order to establish whether the Company
was in compliance with the requirements of Section 6.4 through Section 6.8, inclusive, and Section 6.10 through Section 6.15, inclusive, during the period covered by the income statement then being furnished (including with respect to each such
Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amounts, ratio or percentage then in existence); and

  

 45 

 (b) Event of Default — a statement that the signer has reviewed the relevant
terms of the Financing Documents and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and the Subsidiaries from the beginning of the accounting period covered by the income
statements being delivered therewith to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition
or event existed or exists, specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 
  
 7.3 Accountants’ Report. 
  
 Each set of annual financial statements delivered pursuant to Section 7.1(b) shall be accompanied by a certificate of the
accountants who certify such financial statements, stating that they have reviewed this Agreement and stating further, whether, in making their audit, such accountants have become aware of any condition or event that then constitutes a Default or an
Event of Default, and, if such accountants are aware that any such condition or event then exists, specifying the nature and period of existence thereof. 
  
 7.4 Inspection. 
  
 The Company shall permit the representatives of each holder of Notes (at the expense of the Company) to visit and inspect any of the Properties of the
Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers,
employees and independent public accountants (former and present) (and by this provision the Company authorizes all such accountants to discuss the finances and affairs of the Company and the Subsidiaries), all at such reasonable times and as often
as may be reasonably requested. 
  
 8. EVENTS OF DEFAULT. 
  
 8.1 Nature of Events. 
  
 An “Event of Default” shall exist if any of the following
occurs and is continuing: 
  
 (a) Principal
and Make-Whole Amount Payments — the Company shall fail to make any payment of principal or Make-Whole Amount on any Note on or before the date such payment is due; or 
  
 (b) Interest Payments — the Company shall fail to make any payment of interest on any Note on or
before the date such payment is due; or 
  
 (c)
Warranties or Representations — any warranty, representation or other material statement by or on behalf of the Company or any Subsidiary contained herein or 
  

 46 

 in any instrument furnished in compliance with or in reference hereto or any of the other Financing
Documents shall have been false or misleading when made or deemed made; or 
  
 (d) Particular Covenant Defaults — the Company or any Subsidiary shall fail to perform or observe any covenant contained in Section 6.4 through Section 6.18, inclusive, Section 6.20, Section 6.22, Section
7.1(h) or Section 7.1(i); or 
  
 (e) Other
Defaults — the Company or any Subsidiary shall fail to comply with any other provision hereof, and such failure continues for more than thirty (30) days after such failure shall first become known to any officer of the Company; or

  
 (f) Default on Debt or Other Security
— 
  
 (i) the Company or any Subsidiary
shall fail to make any payment on any Debt when due; 
  
 (ii) any event shall occur or any condition shall exist in respect of any Debt or any Security of the Company or any Subsidiary, or under any agreement securing or relating to such Debt or Security, that immediately or with the passage of
time or the giving of notice or both: 
  
 (A)
causes (or permits any one or more of the holders thereof or a trustee therefor to cause) such Debt or Security, or a portion thereof, to become due prior to its stated maturity or prior to its regularly scheduled date or dates of payment;

  
 (B) permits any one or more of the holders
thereof or a trustee therefor to elect any of the directors on the Board of Directors of the Company or such Subsidiary; or 
  
 (C) permits any one or more of the holders thereof or a trustee therefor to require the Company or any Subsidiary to repurchase such Debt
or Security from such holder; 
  
 provided that the
aggregate amount of all obligations in respect of all such Debt and Securities referred to in this clause (f) exceeds at such time ten million dollars ($10,000,000); or 
  
 (iii) an “Event of Default” shall have occurred under, and as defined in, any of the other
Financing Documents and be continuing; or 
  
 (g)
Involuntary Bankruptcy Proceedings — 
  
 (i) a receiver, liquidator, custodian or trustee of the Company or any Subsidiary, or of all or any of the Collateral or any material Property of the Company or any Subsidiary, shall be appointed by court order and such order remains in
effect for more than thirty (30) days; or an order for relief shall be entered with respect to the Company or any Subsidiary, or the Company or any Subsidiary, shall be adjudicated insolvent; 
  

 47 

 (ii) any of the Collateral or any material Property of the Company or any Subsidiary
shall be sequestered by court order and such order remains in effect for more than thirty (30) days; or 
  
 (iii) a petition shall be filed against the Company or any Subsidiary under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, and shall not be dismissed within thirty (30) days after such filing; or 
  
 (h) Voluntary Petitions —the Company or any Subsidiary shall file a petition in voluntary
bankruptcy or seeking relief under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or shall consent to the filing
of any petition against it under any such law; or 
  
 (i) Assignments for Benefit of Creditors, etc. — the Company or any Subsidiary shall make an assignment for the benefit of its creditors, or shall admit in writing its inability, or shall fail, to pay its debts generally as they
become due, or shall consent to the appointment of a receiver, liquidator or trustee of the Company or any Subsidiary or of all or any part of the Property of them; or 
  
 (j) Undischarged Final Judgments — final judgment or judgments for the payment of money
aggregating in excess of two million five hundred thousand dollars ($2,500,000) is or are outstanding against one or more of the Company and the Subsidiaries and any one of such judgments shall have been outstanding for more than thirty (30) days
from the date of its entry and shall not have been discharged in full or stayed; or 
  
 (k) Certain Obligations — the undertakings of any Guarantor under the Joint and Several Guaranty shall at any time cease to
constitute the legal, valid and binding obligation of such Guarantor, or any Guarantor or any Person acting by or on behalf of any Guarantor shall deny or disaffirm such Guarantor’s obligations under the Joint and Several Guaranty or any
undertaking of the Company hereunder shall at any time cease to constitute the legal, valid and binding obligation of the Company, enforceable against the Company. 
  
 If any action, condition, event or other matter would, at any time, constitute an Event of Default under any provision of this Section 8.1,
then an Event of Default shall exist, regardless of whether the same or a similar action, condition, event or other matter is addressed in a different provision of this Section 8.1 and would not constitute an Event of Default at such time under such
different provision. 
  

 48 

 8.2 Default Remedies. 
  
 (a) Acceleration on Event of Default. If an Event of Default specified in clause (g), (h) or (i) of
Section 8.1 shall exist, all of the Notes at the time outstanding shall automatically become immediately due and payable together with interest accrued thereon and, to the extent permitted by law, the Make-Whole Amount at such time with respect to
the principal amount of such Notes, and all other amounts due under the Financing Documents, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived, and, if any other Event of Default shall exist, the
holder or holders of at least sixty percent (60%) in principal amount of the Notes then outstanding (exclusive of Notes then owned by any one or more of the Company, any Subsidiary and any Affiliate) may exercise any right, power or remedy permitted
to such holder or holders by law, and shall have, in particular, without limiting the generality of the foregoing, the right to declare the entire principal of, and all interest accrued on, all the Notes then outstanding to be, and such Notes shall
thereupon become, forthwith due and payable, without any presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, and the Company shall forthwith pay to the holder or holders of all the Notes then
outstanding the entire principal of, and interest accrued on, the Notes and, to the extent permitted by law, the Make-Whole Amount at such time with respect to such principal amount of the Notes. 
  
 (b) Acceleration on Payment Default. During the
existence of an Event of Default described in Section 8.1(a) or Section 8.1(b), and irrespective of whether the Notes then outstanding shall have been declared to be due and payable pursuant to Section 8.2(a), any holder of Notes who or that shall
have not consented to any waiver with respect to such Event of Default may, at its option, by notice in writing to the Company, declare the Notes then held by such holder to be, and such Notes shall thereupon become, forthwith due and payable
together with all interest accrued thereon, without any presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, and the Company shall forthwith pay to such holder the entire principal of and interest
accrued on such Notes and, to the extent permitted by law, the Make-Whole Amount at such time with respect to such principal amount of the Notes and all other amounts due under the Financing Documents. 
  
 (c) Valuable Rights. The Company acknowledges, and
the parties hereto agree, that the right of each holder to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) is a valuable right and that the provision for payment of a Make-Whole
Amount by the Company in the event that the Notes of any Series are prepaid or are accelerated as a result of an Event of Default is intended to provide compensation for the deprivation of such right under such circumstances. 
  
 (d) Other Remedies. During the existence of an Event
of Default and irrespective of whether the Notes then outstanding shall have been declared to be due and payable pursuant to Section 8.2(a) or Section 8.2(b) and irrespective of whether any holder of Notes then outstanding shall otherwise have
pursued or be pursuing any other rights or remedies, but subject to the terms and conditions of the Trust Agreement, any 
  

 49 

 holder of Notes may proceed to protect and enforce its rights hereunder, under such Notes and under the
other Financing Documents by exercising such remedies as are available to such holder in respect thereof under applicable law, either by suit in equity or by action at law, or both, whether for specific performance of any agreement contained herein
or in aid of the exercise of any power granted herein, provided that the maturity of such holder’s Notes may be accelerated only in accordance with Section 8.2(a) and Section 8.2(b). 
  
 (e) Nonwaiver and Expenses. No course of dealing on
the part of any holder of Notes nor any delay or failure on the part of any holder of Notes to exercise any right shall operate as a waiver of such right or otherwise prejudice such holder’s rights, powers and remedies. If the Company shall
fail to pay when due any principal of, or Make-Whole Amount or interest on, any Note, or shall fail to comply with any other provision of the Financing Documents, the Company shall pay to each holder of Notes, to the extent permitted by law, such
further amounts as shall be sufficient to cover the costs and expenses, including but not limited to reasonable attorneys’ fees, incurred by such holder in collecting any sums due on such Notes or in otherwise assessing, analyzing or enforcing
any rights or remedies that are or may be available to it. 
  
 8.3 Annulment of Acceleration of Notes. 
  
 If a
declaration is made pursuant to Section 8.2(a), then and in every such case, the holders of at least seventy-six percent (76%) in aggregate principal amount of the Notes then outstanding (exclusive of Notes then owned by any one or more of the
Company, any Subsidiary and any Affiliate) may, by written instrument filed with the Company, rescind and annul such declaration, and the consequences thereof, provided that at the time such declaration is annulled and rescinded: 

 
 (a) no judgment or decree shall have been entered for the
payment of any moneys due on or pursuant hereto or the Notes; 
  
 (b) all arrears of interest upon all the Notes and all other sums payable hereunder and under the Notes (except any principal of, or interest or Make-Whole Amount on, the Notes that shall have become due and payable
by reason of such declaration under Section 8.2(a)) shall have been duly paid; and 
  
 (c) each and every other Default and Event of Default shall have been waived pursuant to Section 10.5 or otherwise made good or cured;

  
 and provided further that no such rescission and annulment shall extend
to or affect any subsequent Default or Event of Default or impair any right consequent thereon. 
  

 50 

 9. INTERPRETATION OF THIS AGREEMENT. 
  
 9.1 Terms Defined. 
  
 As used herein, the following terms have the respective meanings set forth below or set forth in the Section following such term: 
  
 1999 Note Purchase Agreements — means,
collectively, (i) the separate Note Purchase Agreements, dated as of October 27, 1999, as amended up to and including the Restatement Date, between the Company and each of the purchasers named on Annex 1 thereto and (ii) the separate Note Purchase
Agreements, dated as of October 31, 1999, as amended up to and including the Restatement Date, between the Company and each of the purchasers named on Annex 1 thereto. 
  
 2000 Note Purchase Agreement — means, collectively, the separate Note Purchase Agreements, dated
as of June 2, 2000, as amended up to and including the Restatement Date, between the Company and each of the purchasers named on Annex 1 thereto. 
  
 Acceptable Bank — means any commercial bank 
  
 (a) that is organized under the laws of the United States or any state thereof, 
  
 (b) that has capital, surplus and undivided profits
aggregating at least five hundred million dollars ($500,000,000), and 
  
 (c) whose long-term unsecured debt obligations (or the long-term unsecured debt obligations of the bank holding company owning all of the capital stock of such bank) shall be rated “A3” or higher by
Moody’s or “A-” or higher by Standard & Poor’s (or comparable ratings by any comparable successor agency). 
  
 Acceptable Consideration — means, with respect to any Transfer of any Property of the Company or any Subsidiary, cash
consideration, promissory notes or such other consideration (or any combination of the foregoing) as is, in each case, determined by the Board of Directors of the Company or such Subsidiary, in its good faith opinion, to be in the best interests of
the Company and to reflect the Fair Market Value of such Property. 
  
 Acceptable Rating — means a rating of at least Baa2 by Moody’s and, in addition, a rating of at least BBB by Standard & Poor’s. 
  
 Acquisition — means any transaction, or any
series of related transactions, consummated after the Amendment No. 2 Effective Date, by which the Company or any of its Subsidiaries (a) acquires any On-Going Business or all or substantially all of the assets of any Person, whether through
purchase of assets, merger or otherwise, (b) directly or indirectly acquires control of at least a majority (in number of votes) of the securities of a corporation that have ordinary voting power for the election of directors or (c) directly or
indirectly acquires control of at least a majority of the partner, member or other ownership interests of any Person that is not a corporation. 
  
 Affiliate — means, at any time, a Person (other than a Subsidiary) 
  
 (a) that directly or indirectly through one or more
intermediaries controls, or is controlled by, or is under common control with, the Company, 
  

 51 

 (b) that beneficially owns or holds five percent (5%) or more of any class of the Voting
Stock of the Company, or 
  
 (c) five percent
(5%) or more of the Voting Stock (or in the case of a Person that is not a corporation, five percent (5%) or more of the equity interest) of which is beneficially owned or held by the Company or a Subsidiary, 
  
 (d) at such time. 
  
 As used in this definition: 
  
 Control — means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 Agreement, this — means this agreement, as it may be amended or restated from time to time. 

 
 Amendment No. 2 Effective Date — means the “Effective
Date” as defined in that certain Amendment Agreement No. 2 dated as of April 4, 2003 among the Company and each of the holders of the Notes party thereto and consented to by each of the Guarantors. 
  
 Anti-Terrorism Order — means Executive Order No. 13,224 of
September 24, 2001, Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended. 
  
 Applicable Interest Law — means any present or future law (including, without limitation, the law of the United
States of America) that has application to the interest and other charges imposed pursuant to this Agreement and the Notes. 
  
 Applicable Margin — means 250 basis points (or 2.5%). 
  

Arizona Deed of Trust — means that certain deed of trust, security agreement and assignment of rents and leases (as amended from time to
time), in favor of the Security Trustee, executed in connection with the initial issue of the Notes by Sun Land, for Sun Land’s processing facility located in Tolleson, Arizona, securing Sun Land’s indebtedness and obligations under
the Joint and Several Guaranty with the grant of a first-priority lien encumbering Such processing facility. 
  
 Bank Funded Debt Amount — means, at any time, the smallest average daily principal amount of all Debt of the Company and the Subsidiaries
under the Credit Facility which is outstanding during any period of thirty (30) consecutive days selected by the Company falling within the three hundred sixty-five (365) day period ending at such time. 
  
 Banking Day — means, at any time, a day on which the Series P
Agent is open for business, and, if the Series P Rate shall be a Series P LIBOR Rate at such time, a day on which (a) dealings in United States dollar deposits are being carried out in the London interbank market and (b) commercial banks are open
for business in both London and New York City. 
  

 52 

 Board of Directors — means, at any time with respect to any Person, the board of directors of
such Person, or any committee thereof which, in the instance, shall have the lawful power to exercise the power and authority of such board of directors. 
  
 Business Day — means 
  
 (a) with respect to any payment to be made to the holder of any Note under any of the Financing Documents, a day other than a Saturday, a
Sunday or a day on which the bank designated by such holder to receive for such holder’s account payments on such Note is required by law (other than a general banking moratorium or holiday for a period exceeding four (4) consecutive days) to
be closed, and 
  
 (b) for all other purposes, a
day other than a Saturday, a Sunday or a day on which the national banks located in New York City, New York, are required by law (other than a general banking moratorium or holiday for a period exceeding four (4) consecutive days) to be closed.

  
 Capital Lease — means a lease with respect to
which the lessee is required to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP, or for which the amount of the asset and the liability thereunder, as if so capitalized, should be disclosed in a note
to such balance sheet. 
  
 Capital Lease Obligation —
means, with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the lessee under such Capital Lease that would appear as a liability on a balance sheet of such Person prepared in accordance with GAAP.

  
 Change in Control — means the acquisition at any
time after the Closing Date by any Person or group of related Persons of beneficial ownership of more than fifty percent (50%) of the Voting Stock of the Company outstanding (excluding for such purpose Persons who own shares through any employee
benefit plan of the Company or any trust in connection therewith) at such time. 
  
 Closing Date — Section 1.2(b). 
  
 CoBank — means CoBank, ACB, a federally chartered corporation. 
  
 Collateral — shall have the meaning assigned to such term in the Trust Agreement. 
  
 Collateral Release Conditions — means, at any time: 

 
 (a) the Acceptable Rating is in full force and effect,
not having been withdrawn by Moody’s or Standard & Poor’s; 
  
 (b) any and all Liens on Property of the Company or any Guarantor securing Debt incurred under or pursuant to each Revolving Credit Agreement of the Company or any Subsidiary have been released or will be released on
or prior to the Collateral Release Date; 
  

 53 

 (c) the aggregate principal amount of all Debt of the Company and the Subsidiaries
secured by Liens permitted solely by Section 6.13(a)(x) does not exceed fifteen percent (15%) of Consolidated Tangible Net Worth, determined at such time; 
  
 (d) the Company and the holders of the Notes shall have entered into an amendment to the Note Purchase Agreements, in form and substance
satisfactory to the Required Holders, which (i) provides for an amendment to the covenants set forth in Section 6.4 through Section 6.15, inclusive, and (ii) establishes the Company’s obligations concerning its financial condition and results
of operations in a manner which, if complied with, would result in the Company at all times maintaining an Acceptable Rating for its long-term, senior unsecured debt; and 
  
 (e) no Default or Event of Default exists 
  
 in each case as of such time. 
  
 Collateral Release Date — Section 1.5. 
  
 Company — has the meaning specified in the introductory sentence. 
  
 Company Fiscal Year Net Worth Increase Amount — means, for any fiscal year of the Company, the greater of

  
 (i) fifty percent (50%) of Consolidated Net
Income for such fiscal year; and 
  
 (ii) zero
dollars ($0). 
  
 Consolidated Current Assets —
means, at any time, the aggregate amount at which the current assets of the Company and the Subsidiaries would be shown on a consolidated balance sheet for such Persons at such time. 
  
 Consolidated Current Liabilities — means, at any time, the aggregate amount of current liabilities of the
Company and the Subsidiaries as would be shown on a consolidated balance sheet for such Persons at such time including, without limitation, all liabilities of the Company and the Subsidiaries under the Revolving Credit Facilities (other than the
Bank Funded Debt Amount) at such time. 
  
 Consolidated EBITDA
— means, with respect to any fiscal period, the sum of 
  
 (a) Consolidated Net Income, plus 
  
 (b) the aggregate amount of all Consolidated Interest Expense, depreciation, amortization and income taxes, 
  
 (to the extent, and only to the extent, that such aggregate amount was deducted in the computation of Consolidated Net Income), in each case accrued for
such period by the Company, provided that, with respect to any period during which a Person shall have 
  

 54 

 become, or ceased to be, a Subsidiary, or during which the Company or any Subsidiary shall have acquired
or disposed of an On-Going Business, the calculation of Consolidated EBITDA shall, without duplication, (i) include the EBITDA for such period of each Person who shall have become a Subsidiary, and of each On-Going Business acquired by the Company
or any Subsidiary, during such period as if such Person had been a Subsidiary or such On-Going Business had been owned by the Company or a Subsidiary for the entire period, or (ii) exclude the EBITDA for such period of each Person who shall have
ceased to be a Subsidiary, and of each On-Going Business disposed of by the Company or any Subsidiary, at any time after the beginning of such period as if such Person had not been a Subsidiary at any time during the entire period or such On-Going
Business had not been owned or operated by the Company or any Subsidiary at any time during such period. As used in this definition, EBITDA with respect to any Person or On-Going Business for any period shall mean, the net income (after income
taxes) of such Person or On-Going Business for such period, determined in accordance with GAAP plus, to the extent deducted in calculating such net income, amounts attributable to interest, income taxes, depreciation and amortization.

  
 Consolidated Fixed Charges — means, with respect
to any fiscal period, the sum of 
  
 (a) the
amount payable in respect of such fiscal period with respect to interest due on, or with respect to, Debt (including, without limitation, the Notes) owing by or guaranteed by any one or more of the Company and the Subsidiaries and including, without
limitation, amortization of debt discount and expense and imputed interest in respect of Capital Lease Obligations of the Company and the Subsidiaries, plus 
  
 (b) the amount payable in respect of such fiscal period with respect to Operating Rentals payable by any one or more of the Company and
the Subsidiaries, 
  
 determined on a consolidated basis for the
Company and the Subsidiaries for such period. 
  
 Consolidated
Funded Debt — means, at any time, the aggregate amount of Funded Debt of the Company and the Subsidiaries, determined on a consolidated basis for such Persons at such time. 
  
 Consolidated Intangible Assets — means, at any time, the
aggregate amount of Intangible Assets of the Company and the Subsidiaries, determined on a consolidated basis at such time. 
  
 Consolidated Interest Expense — means, for any fiscal period, the consolidated interest expense of the Company and its Subsidiaries accrued
for such fiscal period (including, without limitation, cash or non-cash interest expense or deferred or accrued interest expense, amortization of debt discount and expense and the interest portion of all Capital Lease Obligations during such
period); provided that, with respect to any fiscal period during which a Person shall have become, or ceased to be, a Subsidiary, or during which the Company or any Subsidiary shall have acquired or disposed of an On-Going Business, the calculation
of Consolidated Interest Expense shall (i) include the interest expense for such fiscal period with respect to all Debt incurred in connection with the financing of the acquisition of each Person 
  

 55 

 who shall have become a Subsidiary, and of each On-Going Business acquired by the Company or any Subsidiary, during such
fiscal period as if such Person had been a Subsidiary or such On-Going Business had been acquired by the Company or a Subsidiary, and such Debt incurred, on the first day of such period and such Debt had remained outstanding at all times during such
period, or (ii) exclude the interest expense for such fiscal period in respect of all Debt which shall have been repaid with the proceeds from the disposition of each Person who shall have ceased to be a Subsidiary, and of each On-Going Business
disposed of by the Company or any Subsidiary, at any time after the beginning of such period as if such repayment and disposition had occurred on the first day of such period. 
  
 Consolidated Net Income — means, with respect to any fiscal period, net earnings (or loss) after income taxes of
the Company and the Subsidiaries determined on a consolidated basis for such Persons for such period, provided there shall be excluded: 
  
 (a) any net income or gain (or net loss) during such period from any extraordinary items, and 
  
 (b) the income (or loss) of any Person (other than a
Subsidiary) in which the Company or any Subsidiary has an ownership interest, except to the extent that any such income has been actually received by the Company or such Subsidiary in the form of cash dividends or similar cash distributions.

  
 Consolidated Net Income Available for
Fixed Charges — means, with respect to any fiscal period, the sum of 
  
 (a) Consolidated Net Income, plus 
  
 (b) the aggregate amount of 
  
 (i) income taxes, and 
  
 (ii) Consolidated Fixed
Charges, 
  
 (to the extent, and only to the
extent, that such aggregate amount was reflected in the computation of Consolidated Net Income), 
  
 in each case accrued for such period by the Company and the Subsidiaries, determined on a consolidated basis for such Persons. 

 
 Consolidated Net Worth — means, at any time, the aggregate
amount of shareholders’ equity of the Company and the Subsidiaries as would be shown on a consolidated balance sheet of such Persons at such time. 
  
 Consolidated Tangible Net Worth — means, at any time, the result of 
  
 (a) Consolidated Net Worth, minus 
  
 (b) Consolidated Intangible Assets, 
  

 56 

 determined in each case at such time. 
  
 Consolidated Total Assets — means, at any time, the aggregate amount at which all assets of the Company
and the Subsidiaries would be shown on a consolidated balance sheet for such Persons at such time. 
  
 Consolidated Total Capitalization — means, at any time, the sum of 
  
 (a) Consolidated Net Worth, plus 
  
 (b) Consolidated Funded Debt, 
  
 determined in each case at such time. 
  
 Consolidated Total Liabilities — means, at any time, the
aggregate amount at which all liabilities of the Company and the Subsidiaries (including, without limitation, (a) all Guaranties of Debt by such Persons and (b) all amounts attributable to Mandatorily Redeemable Stock of the Company and the
Subsidiaries to the extent that such Mandatorily Redeemable Stock is redeemable within one year of such time) would be shown on a consolidated balance sheet for such Persons at such time. 
  
 Consolidated Working Capital — means, at any time, the result of 
  
 (a) Consolidated Current Assets, minus 
  
 (b) Consolidated Current Liabilities, 
  
 determined in each case at such time. 
  
 Control Event — means 
  
 (a) the execution by the Company, any Subsidiary or any
Affiliate of any letter of intent with respect to any proposed transaction or event or series of transactions or events that, individually or in the aggregate, could reasonably be expected to result in a Change in Control, 
  
 (b) the execution of any written agreement that, when fully
performed by the parties thereto, would result in a Change in Control, or 
  
 (c) the making of any written offer by any Person to the holders of Voting Stock of the Company which offer, if accepted by the requisite number of such holders, would result in a Change in Control. 
  
 Control Prepayment Date — Section 4.3(a). 
  
 Credit Facility — means that certain Multi-Year Credit
Agreement among the Company, certain of the Subsidiaries, JP Morgan Chase Bank as administrative agent and the lenders party thereto, providing for an aggregate amount of up to nine hundred million dollars ($900,000,000) in loans to the Company, as
it may be amended, supplemented, or modified from time to time 
  

 57 

 and any renewal, increase, extension, refunding, restructuring, replacement or refinancing thereof (whether with the
original administrative agent and lenders or another administrative agent or agents or one or more other lenders and whether provided under the original Multi-Year Credit Agreement or one or more other credit or other agreements). 
  
 Debt — means, at any time, with respect to any Person, without
duplication: 
  
 (a) all obligations of such
Person for borrowed money (including, without limitation, all obligations of such Person evidenced by any debenture, bond, note, commercial paper or Security, but also including all such obligations for borrowed money not so evidenced); 

 
 (b) all obligations of such Person to pay the deferred
purchase price of Property or services, all conditional sale obligations of such Person and all obligations of such Person under any title retention agreements, provided that accounts payable incurred in the ordinary course of business of
such Person shall be excluded from this clause (b); 
  
 (c) all Capital Lease Obligations of such Person; 
  
 (d) all obligations for borrowed money secured by any Lien existing on Property owned by such Person (whether or not such obligations have been assumed by such Person or recourse in respect thereof is available
against such Person); and 
  
 (e) any Guaranty of
such Person of any obligation or liability of another Person of a type described in any of clause (a) through clause (d), inclusive, of this definition. 
  
 Debt of a Person shall include all obligations of such Person of the character described in clause (a) through clause (e) to the extent such Person remains legally liable
in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP. 
  
 Deeds of Trust — means, collectively, the Wisconsin Deed of Trust, the Nebraska Deed of Trust, the Arizona Deed of Trust and the Michigan Deed
of Trust. 
  
 Default — means an event or condition
the occurrence of which would, with the lapse of time or the giving of notice or both, become an Event of Default. 
  
 Depreciation — means, for any fiscal year of the Company, the aggregate amount of depreciation attributable to the “Improvements”
(as such term is defined in the Deeds of Trust) which would be included in the total amount of depreciation that would be shown on a statement of income prepared in respect of the Company and the Subsidiaries on a consolidated basis for such fiscal
year. 
  
 Distribution — means 
  
 (a) any dividend or other distribution, direct or indirect,
on account of capital stock of the Company or any Subsidiary (except dividends payable solely in shares of capital stock other than Mandatorily Redeemable Stock of the Company or such Subsidiary), and 
  

 58 

 (b) any redemption, retirement, purchase or other acquisition, direct or indirect, of any
capital stock of the Company or any Subsidiary, or of any warrants, rights or other options to acquire any shares of such capital stock. 
  
 Environmental Indemnification Agreement — means one or more environmental indemnification agreements, executed in connection with the
original issue of the Notes (as amended from time to time), by each of the Company, Packerland, Murco and Sun Land in favor of the Security Trustee. 
  
 Environmental Protection Law — means any federal, state, county, regional or local law, statute, or regulation (including, without
limitation, the Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Superfund Amendments and Reauthorization Act, all amendments to any of the foregoing and all rules and regulations
issued in connection therewith) enacted in connection with or relating to the protection or regulation of the environment, including, without limitation, those laws, statutes, and regulations regulating the disposal, removal, production, storing,
refining, handling, transferring, processing, or transporting of Hazardous Substances, and any regulations, issued or promulgated in connection with such statutes by any Governmental Authority and any orders, decrees or judgments issued by any court
of competent jurisdiction in connection with any of the foregoing. 
  
 ERISA — means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 ERISA Affiliate — means any corporation or trade or business that 
  
 (i) is a member of the same controlled group of corporations (within the meaning of section 414(b) of the
IRC) as the Company, or 
  
 (ii) is under common
control (within the meaning of section 414(c) of the IRC) with the Company. 
  
 Event of Default — Section 8.1. 
  
 Excluded Transfers — Section 6.15(a)(iii). 
  
 Existing Note Purchase Agreement — Section 1.1. 
  
 Fair Market Value — means, at any time, with respect to any Property, the sale value of such Property that would be realized in an arm’s-length sale at such time between an informed and willing buyer,
and an informed and willing seller, under no compulsion to buy or sell, respectively. 
  
 Financing Documents — means the Note Purchase Agreements, the Notes, the Joint and Several Guaranty, the Security Documents, the Intercreditor Agreement, the Environmental Indemnification Agreement
and the other agreements and instruments to be executed pursuant to the terms of each of such Financing Documents, as each may be amended from time to time. 
  

 59 

 Foreign Pension Plan — means any plan, fund or other similar program 
  
 (a) established or maintained outside of the United States
of America by any one or more of the Company or the Subsidiaries primarily for the benefit of the employees (substantially all of whom are aliens not residing in the United States of America) of the Company or such Subsidiaries which plan, fund or
other similar program provides for retirement income for such employees or results in a deferral of income for such employees in contemplation of retirement, and 
  
 (b) not otherwise subject to ERISA. 
  
 Funded Debt — means, at any time, with respect to any Person, without duplication: 
  
 (a) all Debt of such Person (including, without limitation,
the current portion thereof) that by its terms or by the terms of any instrument or agreement relating thereto matures, or that is otherwise payable or unpaid, more than one (1) year from, or is directly or indirectly renewable or extendible at the
option of such Person to a date more than one (1) year (including, without limitation, an option of the debtor under a revolving credit or similar agreement obligating the lender or lenders to extend credit over a period of more than one (1) year)
from, the date of the creation of such Debt (notwithstanding that such Debt may be under certain contingencies payable on demand or within one (1) year after such date of creation), provided, however, that, with respect to the Company and the
Subsidiaries, such Debt shall exclude the amount outstanding at such time under the Credit Facility and include an amount equal to the Bank Funded Debt Amount at such time; 
  
 (b) all Capital Lease Obligations of such Person; and 
  
 (c) all Debt of such Person of the type specified in clause
(e) of the definition of “Debt,” provided that such Debt of such Person is in respect of or in support of Funded Debt of another Person. 
  
 GAAP — means generally accepted accounting principles as set forth from time to time in the statements, opinions and pronouncements of the
American Institute of Certified Public Accountants and the Financial Accounting Standards Board or in such statements, opinions and pronouncements of such other entities as shall be approved by a significant segment of the accounting profession in
the United States of America. 
  
 Governmental Authority
— means 
  
 (a) the government of

  
 (i) the United States of America and any
state or other political subdivision thereof, or 
  

 60 

 (ii) any jurisdiction (A) in which the Company or any Subsidiary conducts all or any part
of its business or (B) that asserts jurisdiction over the conduct of the affairs or Properties of the Company or any Subsidiary, or 
  
 (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such
government. 
  
 Great Lakes Cattle Merger — means the
merger of The Ohio Feed Lot, Inc. and Great Lakes Cattle Credit Company, LLC, each Wholly-Owned Subsidiaries, into Beef Production Systems, Inc., a Wholly-Owned Subsidiary, pursuant to a Certificate of Merger dated as of August 31, 2004 and filed
with the Secretary of State of the State of Delaware on September 13, 2004 so long as on or prior to October 29, 2004, Cattle Production Systems, Inc. (formerly Beef Production Systems, Inc.) shall have become party as a guarantor to the Joint and
Several Guaranty. 
  
 Guarantor —
means each of Brown’s of Carolina LLC, Brown’s Farms LLC, Carroll’s Foods LLC, Carroll’s Foods of Virginia LLC, Carroll’s Realty, Inc., Carroll’s Realty Partnership, Central Plains Farms LLC, Circle Four LLC, Coddle
Roasted Meats, Inc., Great Lakes Cattle Credit Company, LLC, Gwaltney of Smithfield, Ltd., Hancock’s Old Fashioned Country Ham, Inc., Iowa Quality Meats, Ltd., John Morrell & Co., Lykes Meat Group, Inc., Moyer Packing Company, Murco Foods,
Inc., Murphy-Brown LLC, Murphy Farms LLC, North Side Foods Corp., Packerland Holdings, Inc., Packerland Processing Company, Inc., Patrick Cudahy Incorporated, Premium Pork, Inc., Quarter M Farms LLC, Quik-To-Fix Foods, Inc., SFFC, Inc.,
Smithfield-Carroll’s Farms, Smithfield Packing Real Estate, LLC, Stadler’s Country Hams, Inc., Sun Land Beef Company, Sunnyland, Inc., The Smithfield Companies, Inc. and The Smithfield Packing Company, Incorporated and each other Person
that becomes a “Guarantor” pursuant to the Joint and Several Guaranty. 
  
 Guaranty — means, with respect to any Person (for the purposes of this definition, the “Subject Guarantor”), any obligation (except the endorsement in the ordinary
course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person (the “Primary Obligor”)in any
manner (including, without limitation, obligations that arise as a matter of law or otherwise as a result of such Person’s status as a general partner in a partnership or a holder of equity or other Property interest in a corporation,
partnership, limited liability company or other business operation commonly referred to as a “joint venture”), whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or
otherwise, by the Subject Guarantor: 
  
 (a) to
purchase such indebtedness or obligation or any Property or assets constituting security therefor; 
  
 (b) to advance or supply funds 
  
 (i) for the purpose of payment of such indebtedness or obligation, or 
  
 (ii) to maintain working capital or other balance sheet condition or any income statement condition of the
Primary Obligor or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation; 
  

 61 

 (c) to lease Property or to purchase Securities or other Property or services primarily
for the purpose of assuring the owner of such indebtedness or obligation of the ability of the Primary Obligor to make payment of the indebtedness or obligation; or 
  
 (d) otherwise to assure the owner of the indebtedness or obligation of the Primary Obligor against loss in
respect thereof. 
  
 For purposes of computing the amount of any Guaranty, in
connection with any computation of indebtedness or other liability, it shall be assumed that the indebtedness or other liabilities that are the subject of such Guaranty are direct obligations of the Subject Guarantor. 
  
 Hazardous Substances — means any and all pollutants,
contaminants, toxic or hazardous wastes or any other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage, or filtration of which is or shall be restricted, prohibited or penalized by any applicable law (including, without limitation, asbestos, radon gas, urea formaldehyde
foam insulation, polychlorinated biphenyls, radioactive materials, petroleum and petroleum derivatives and by-products). 
  
 Indemnification Fee — Section 4.1(d)(vii). 
  
 Institutional Investor — means each of the Noteholders, any affiliate of any of the Noteholders, and any holder of Notes that is an
“accredited investor” as defined in Section 2(15) of the Securities Act. 
  
 Intangible Assets — means, with respect to any Person at any time, the following: 
  
 (a) patents, copyrights, trademarks, trade names, service marks, brand names, franchises, goodwill, experimental expenses and other
similar intangibles; 
  
 (b) deferred assets
(other than prepaid taxes, prepaid insurance, prepaid contract payments, prepaid license fees and other prepaid expenses which are refundable); 
  
 (c) unamortized debt discount and expense; and 
  

(d) all other Property which would be considered to be intangible under GAAP. 
  
 Intercreditor Agreement — means that
certain intercreditor agreement (as may be amended from time to time) executed in connection with the original issue of the Notes, among the Company, the Guarantors, the Security Trustee and The JPMorgan Chase Bank (formerly the Chase Manhattan
Bank), with respect to the Credit Facility. 
  

 62 

 Interest Period — Section 4.1(d)(ii). 
  
 Investment — means any investment, made in cash or by
delivery of Property, by the Company or any Subsidiary: 
  
 (a) in any Person, whether by acquisition of stock, indebtedness or other obligation or Security, or by loan, Guaranty, advance, capital contribution or otherwise; or 
  
 (b) in any Property. 
  
 IRC — means the Internal Revenue Code of 1986, together with all
rules and regulations promulgated pursuant thereto, as amended from time to time. 
  
 IRS — means the Internal Revenue Service and any successor agency. 
  
 Joint and Several Guaranty — means that certain Joint and Several Guaranty, executed in connection with the initial issue of the Notes, by
each of the Guarantors in favor of the Security Trustee and the holders of the Notes. 
  
 Joint Venture Investment — means any Investment by the Company or any of its Subsidiaries as a joint venturer or partner in, or lender to, any other Person (other than a Subsidiary) principally engaged in
a business in which the Company and its Subsidiaries are permitted by Section 6.18 to be engaged. 
  
 Lien — means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether
such interest is based on the common law, statute or contract, and including but not limited to the security interest lien arising from a mortgage, deed of trust, encumbrance, pledge, conditional sale or trust receipt or a lease, consignment or
bailment for security purposes, and the filing of any financing statement under the Uniform Commercial Code of any jurisdiction, or an agreement to give any of the foregoing. The term “Lien” includes reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances (including, with respect to stock, stockholder agreements, voting trust agreements, buy-back agreements and all similar
arrangements) affecting Property. For the purposes of this definition, each of the Company and the Subsidiaries is deemed to be the owner of any Property that it shall have acquired or holds subject to a conditional sale agreement, Capital Lease or
other arrangement pursuant to which title to the Property has been retained by or vested in some other Person for security purposes, and such retention or vesting is deemed a Lien. The term “Lien” does not include negative pledge clauses
in agreements relating to the borrowing of money. 
  
 Make-Whole Amount — means, at any time, 
  
 (a) with respect to a principal amount of Series O Notes being prepaid (in whole or in part) or accelerated, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with
respect to the Called Principal of the Notes of such Series over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero; 
  
  

 63 

 (b) with respect to a principal amount of Series P Notes being prepaid (in whole or in
part) or accelerated, an amount sufficient to compensate the holder of such Series P Note for its loss of yield, if any, determined in accordance with the mark-to-market conventions then used by such holder and giving effect the payment of any
Indemnification Fee paid as provided for in Section 4.1(d)(vii) with respect to such prepayment or acceleration. 
  
 For purposes of determining the Make-Whole Amount of the Series O Notes, the following terms have the following meanings: 
  
 Called Principal — means, with
respect to any Series O Note, the principal of such Note that is to be prepaid pursuant to Section 4.3 or Section 4.4, or has become immediately due and payable pursuant to Section 8.2, as the context requires. 
  
 Discounted Value - means, with respect to the
Called Principal of any Series O Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal,
in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Series O Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

  
 Reinvestment Yield - means,
with respect to the Called Principal of any Series O Note, one percent (1.00%) over the yield to maturity implied by (a) the yields reported, as of 10:00 a.m. (New York City time) on the second (2nd) Business Day preceding the Settlement Date with
respect to such Called Principal, on the display designated as “Screens PX1 through PX7” on the Bloomberg Financial Markets Commodities News Screen (or such other display as may replace “Screens PX1 through PX7” on Bloomberg
Financial Markets Commodities News Screen) for actively traded U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (b) if such yields are not reported as of such time
or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity Series Yields reported, for the latest day for which such yields have been so reported as of the second (2nd) Business
Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H. 15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to
the Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (i) converting U.S. Treasury bill quotations to bond-equivalent yields in accordance with accepted financial
practice and (ii) interpolating linearly between (x) the actively traded U.S. Treasury security with maturity closest to and greater than the Remaining Average Life and (y) the actively traded U.S. Treasury security with the maturity closest to and
less than the Remaining Average Life. 
  
 Remaining Average Life - means, with respect to any Called Principal, the number of years (calculated to the nearest one-twelfth (1/12th) year) obtained by dividing (x) such Called Principal into (y) the sum of the products obtained by multiplying (a) the 
  

 64 

 principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the
number of years (calculated to the nearest one-twelfth (1/12th) year) that will elapse between the Settlement Date
with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 
  
 Remaining Scheduled Payments - means, with respect to the Called Principal of any Series O Note, all payments of such Called
Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; provided, if such Settlement Date is prior to
July 31, 2006, it shall be assumed that all amounts outstanding on July 31, 2006 will be fully due and payable on such date; provided further that if such Settlement Date is not a date on which interest payments are due to be made under the
terms of the Series O Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 4.3, Section
4.4 or Section 8.2, as the case may be. 
  
 Settlement Date - means, with respect to the Called Principal of any Series O Note, the date on which such Called Principal is to be prepaid or paid pursuant to Section 4.3, Section 4.4 or Section 8.2, as the case may be.

  
 Mandatorily Redeemable Stock — means, with
respect to any Person, each share of such Person’s capital stock to the extent that it is (a) redeemable, payable or required to be purchased or otherwise retired or extinguished, or convertible into Debt of such Person (i) at a fixed or
determinable date, whether by operation of a sinking fund or otherwise, (ii) at the option of any Person other than such Person or (iii) upon the occurrence of a condition not solely within the control of such Person, such as redemption required to
be made out of future earnings or (b) convertible into other Mandatorily Redeemable Stock of such Person. 
  
 Material Adverse Effect — means, with respect to any event or circumstance (either individually or in the aggregate with all other
events and circumstances), an effect caused thereby or resulting therefrom that would be materially adverse as to, or in respect of 
  
 (a) the business, prospects, profits, Properties or condition (financial or otherwise) of the Company (individually) or the Company and
the Subsidiaries (taken as a whole), 
  
 (b) the
ability of the Company to perform its obligations set forth herein and in the Notes or the ability of any Guarantor to perform its obligations under the Joint and Several Guaranty, or 
  
 (c) any of the rights or remedies of the holders of the Notes under any Financing Document or the
enforceability of any Financing Document against the Company or any Guarantor. 
  
 Maximum Legal Rate of Interest — means, with respect to any Note, the maximum rate of interest that the holder of such Note may from time to time legally charge the Company by agreement and in
regard to which the Company would be prevented successfully from raising the 
  

 65 

 claim or defense of usury under the Applicable Interest Law as now or hereafter construed by courts having appropriate
jurisdiction. The Company acknowledges and agrees that 12 U.S.C. section 2205 provides that institutions of the Farm Credit System are not subject to any interest rate limitation imposed by any state constitution or statute or other laws, and that
any such limitations are preempted, and therefore any interest owing under the Notes, to the extent purchased or held by an institution of the Farm Credit System, is not subject to any ceiling. 
  
 Michigan Deed of Trust — means that certain mortgage,
security agreement and assignment of rents and leases (as amended from time to time), in favor of the Security Trustee, executed in connection with the initial issue of the Notes by Murco with respect to Murco’s processing facility located in
Plainwell, Michigan, securing Murco’s indebtedness and obligations under the Joint and Several Guaranty with the grant of a first-priority lien encumbering such processing facility. 
  
 Moody’s — means Moody’s Investors Service, Inc.

  
 Morrell — means John Morrell & Co., a
Delaware corporation, and its successors and assigns. 
  
 Morrell Pension Plans — means, collectively, the defined benefit Pension Plan administered for salaried employees of Morrell and the defined benefit Pension Plan administered for hourly employees of Morrell, in each case
as maintained on the Closing Date by Morrell. 
  
 Multiemployer
Plan — means any multiemployer plan (as defined in Section 3(37) of ERISA) in respect of which the Company or any ERISA Affiliate is an “employer” (as such term is defined in Section 3(5) of ERISA). 
  
 Multiple Employer Pension Plan — means any employee
benefit plan within the meaning of Section 3(3) of ERISA (other than a Multiemployer Plan), subject to Title IV of ERISA, to which the Company or any ERISA Affiliate and an employer (as such term is defined in Section 3 of ERISA) other than an ERISA
Affiliate or the Company contribute. 
  
 Murco
— means Murco Foods, Inc., a Delaware corporation and a Wholly-Owned Subsidiary. 
  
 Nebraska Deed of Trust — means that certain a deed of trust, security agreement and assignment of rents and leases (as amended from
time to time), in favor of the Security Trustee, executed in connection with the original issue of the Notes by Packerland with respect to Packerland’s processing facility located in Gering, Nebraska, securing Packerland’s
indebtedness and obligations under the Joint and Several Guaranty with the grant of a first-priority lien encumbering such processing facility. 
  
 Note — Section 1.1. 
  
 Noteholders — Section 1.1. 
  
 Note Purchase Agreements — Section 1.2(c). 
  

 66 

 Obligors — means the Company and the Guarantors. 
  
 On-Going Business — means a distinct operating business, whether
operated as a division of a larger business operation or operated independently, which regardless of the form of legal entity owns or operates the assets and has the liabilities, of such business. 
  
 Operating Lease — means any lease other than a Capital Lease.

  
 Operating Rentals — means, at any time, all fixed
and contingent payments (other than amounts constituting the purchase price payable by the lessee to acquire title to the Property which is the subject of a lease) that the lessee is required to make by the terms of any Operating Lease. 

 
 Packerland — means Packerland Processing Company, Inc.
(formerly known as Packerland Packing Company, Inc.), a Delaware corporation and a Wholly-Owned Subsidiary. 
  
 PBGC — means the Pension Benefit Guaranty Corporation and any successor corporation or governmental agency. 
  
 Pension Plan — means, at any time, any “employee
pension benefit plan” (as such term is defined in Section 3(2) of ERISA) maintained at such time by the Company or any ERISA Affiliate for employees of the Company or such ERISA Affiliate, excluding any Multiemployer Plan, but including,
without limitation any Multiple Employer Pension Plan. 
  
 Permitted Distributions — Section 6.12(a). 
  
 Permitted Exceptions — means each of the items constituting a “Permitted Exception” in each of the Deeds of Trust. 
  
 Person — means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof. 
  
 Prime Rate - means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank (or its successor) as its prime rate in effect at its principal office in New York City; each change in the Prime
Rate shall be effective from and including the date such change is publicly announced as being in effect. 
  
 Property - means any interest in any kind of property or asset, whether real, personal or mixed, and whether tangible or intangible.

  
 Purchase Money Lien — means: 
  
 (a) a Lien held by any Person (whether or not the seller of
such Property) on tangible Property (or a group of related items of Property the substantial portion of which are tangible) acquired or constructed by the Company or any Subsidiary, which Lien secures all or a portion of the related purchase price
or construction costs of such Property, provided that such Lien 
  

 67 

 (i) is created contemporaneously with, or within one hundred eighty (180) days of, such
acquisition or construction, 
  
 (ii) encumbers
only Property purchased or constructed after the Closing Date and acquired with the proceeds of the Debt secured thereby, and 
  
 (iii) is not thereafter extended to any other Property; and 
  
 (b) any Lien existing on Property of any corporation at the time it becomes a Subsidiary, provided
that 
  
 (i) no such Lien shall extend to or
cover any Property other than the Property subject to such Lien at the time of any such transaction, and 
  
 (ii) such Lien was not created in contemplation of any such transaction. 
  
 Required Holders — means, at any time, the holder or holders of at least sixty percent (60%) in principal
amount of the Notes at the time outstanding (exclusive of Notes then owned by any one or more of the Company, any Subsidiary or any Affiliate), without regard to Series of such outstanding Notes. 
  
 Restatement Date — Section 1.2(b). 
  
 Restricted Investments — means, at any time, all
Investments except the following: 
  
 (a)
Investments in existence on March 1, 2002 and described on Part 9.1(RI) of Annex 2; 
  
 (b) Investments in certificates of deposit, repurchase agreements and banker’s acceptances issued by an Acceptable Bank, provided
that such obligations mature within one (1) year from the date of acquisition thereof, 
  
 (c) Investments in commercial paper that (i) is rated either “P-1” or higher by Moody’s or “A-1” or higher by
Standard & Poor’s (or comparable ratings by any comparable successor agency) and (ii) mature not more than two hundred seventy (270) days from the date of creation thereof, 
  
 (d) Investments in direct obligations of the United States of America, or any agency thereof, or obligations
unconditionally guaranteed by the United States of America, provided that such obligations mature within one (1) year from the date of acquisition thereof; 
  
 (e) Investments in Property to be used in the ordinary course of business of the Company and the
Subsidiaries; 
  
 (f) Investments in one or more
Subsidiaries or in any corporation that concurrently with such Investment becomes a Subsidiary; and 
  

 68 

 (g) Investments in any joint venture that is engaged in the businesses engaged in by the
Company and the Subsidiaries on the Closing Date, provided that the Company and/or one or more of the Subsidiaries maintains significant control over the business operations of such joint venture. 
  
 Restricted Payment — means 
  
 (a) any Distribution, and 
  
 (b) any Subordinated Payment. 
  
 Revolving Credit Agreement — means, with respect to the Company
or any Subsidiary, a credit or loan agreement to which the Company or such Subsidiary is a party and pursuant to which the Company or such Subsidiary is entitled to obtain working capital loans or other loans from the commercial bank or commercial
banks party thereto, and shall include, without limitation, the Credit Facility. 
  
 Secured Obligations — means 
  
 (a) all obligations and undertakings of the Company in respect of the principal of, and interest and Make-Whole Amount (if any) on, the Notes and under the Note Purchase Agreements and the payment of all other amounts
payable, and all other indebtedness owing, by the Company under each of the Financing Documents, and 
  
 (b) all obligations of each of the Guarantors to or for the benefit of the holders of the Notes under the Joint and Several Guaranty in
respect of the payment obligations of the Company under clause (a) above and any other payment obligations of the Guarantors to or for the benefit of the holders of the Notes under the Joint and Several Guaranty or the other Financing Documents to
which it is a party. 
  
 Securities Act — means the
Securities Act of 1933, as amended. 
  
 Security —
means “security” as defined by Section 2(1) of the Securities Act. 
  
 Security Agreements— means those certain separate security agreements, executed in connection with the original issue of the Notes (each as amended or otherwise modified from time to time), by each of
Packerland, Murco and Sun Land in favor of the Security Trustee, securing the indebtedness and obligations of each such Subsidiaries under the Joint and Several Guaranty with a lien encumbering certain personal property of such Guarantors,
subject only to prior Liens permitted by such security agreements. 
  
 Security Documents — means the Trust Agreement, the Deeds of Trust, the Security Agreements and the other agreements and instruments executed or required to be executed pursuant to the terms of each of such Security Documents,
as each may be amended from time to time. 
  
 Security Trustee
— shall have the meaning assigned to such term in the Trust Agreement. 
  

 69 

 Senior Financial Officer — means the chief financial officer, the principal accounting
officer, the controller or the treasurer of the Company. 
  
 Senior Officer — means the chairman of the Board of Directors, the chief executive officer, the chief operating officer, the president, the chief financial officer, the general counsel or any vice president of the Company.

  
 Senior Subordinated Debt — means, at any
time, the aggregate principal amount of the Company’s Senior Subordinated Notes due 2008 outstanding at such time and any additional Debt of the Company outstanding at such time which has subordination provisions and other terms and conditions
acceptable to the Required Holders. 
  
 Series
— means any either or both of the Series O Notes or Series P Notes. 
  
 Series O Notes — Section 1.1(a). 
  
 Series O Rate — means, at any time, the interest rate applicable to the Series O Notes at such time. 
  
 Series P Agent — means CoBank or such other Person as shall have been appointed to be the Series P Agent by the holders of at least
fifty one percent (51 %) in the principal amount of the Series P Notes (other than Series P Notes held by any one or more of the Company, any Subsidiary or any Affiliate). 
  
 Series P Fixed Rate — means the fixed rate of interest established from time to time by the Series P Agent in
its sole discretion. 
  
 Series P LIBOR Base Rate
— means, on the date of any determination thereof, the per annum London Interbank Offered Rate (adjusted upward to the nearest one thousandth) offered for deposits of United States dollars on such date for an applicable period
equal to: 
  
 (a) with respect to any calculation
of the Series P Variable Rate, one week; 
  
 (b)
with respect to any calculation of the Series P Three-Month LIBOR Rate, ninety (90) days; 
  
 (c) with respect to any calculation of the Series P Six-Month LIBOR Rate, one hundred eighty (180) days; and 
  
 (d) with respect to any calculation of the Series P
Twelve-Month LIBOR Rate, three hundred and sixty (360) days; in each case indicated by Bridge Telerate (page 3750) as having been published by the British Bankers Association at 11:00 a.m. (London time). 
  
 (i) on the date of determination, or if such date is not a
Banking Day, on the most recent Banking Day prior to such date of determination, with respect to the calculation of the Series P Variable Rate, and 
  

 70 

 (ii) on the date of any determination thereof with respect to the calculation of any
Series P LIBOR Rate, or if such rates are no longer indicated by Bridge Telerate (page 3750), or the Company and the Series P Agent agree otherwise, such other Bridge Telerate page or other service as in the reasonable opinion of the Series P Agent
and the Company shall provide equivalent information. 
  
 Series P LIBOR Rate — means any one of the following: the Series P Three Month LIBOR Rate, the Series P Six-Month LIBOR Rate, or the Series P Twelve-Month LIBOR Rate. 
  
 Series P Notes — Section 1.1(b). 
  
 Series P Rate — means, at any time, the interest rate
applicable to the Series P Notes at such time, as determined in accordance with Section 4.1(d). 
  
 Series P Six-Month LIBOR Rate — means, in respect of any date of determination, a rate per annum equal to the Series P LIBOR
Base Rate as of such date of determination for the applicable one hundred eighty (180) day period plus the Applicable Margin on such date of determination. 
  
 Series P Three Month LIBOR Rate — means, in respect of any date of determination, a rate per annum
equal to the Series P LIBOR Base Rate as of such date of determination for the applicable ninety (90) day period plus the Applicable Margin on such date of determination. 
  
 Series P Twelve Month LIBOR Rate — means, in respect of any date of determination, a rate per annum equal
to the Series P LIBOR Base Rate as of such date of determination for the applicable three hundred sixty (360) day period plus the Applicable Margin on such date of determination. 
  
 Series P Variable Rate — means, in respect of any date of determination, the sum of the Series P LIBOR Base Rate
as of such date of determination for the applicable weekly period plus the Applicable Margin on such date of determination. 
  
 Smithfield Canada — means, collectively, Smithfield Canada Limited and 2004171 Ontario Inc., each a corporation governed by the laws of the
Province of Ontario and a Wholly-Owned Subsidiary. 
  
 Smithfield Canada Transfer — means the sale of Smithfield Canada to Maple Leaf Foods, Inc., a corporation governed by the laws of Canada, pursuant to the terms of the Smithfield Canada Transfer Agreement. 
  
 Smithfield Canada Transfer Agreement — means that certain Share
Purchase Agreement dated as of September 24, 2003 between the Company and Maple Leaf Foods, Inc., a copy of which has been delivered to each of the holders of the Notes outstanding on such date, with such amendments and supplements thereto as may be
agreed to by the parties which do not in the aggregate substantially modify the terms of such Share Purchase Agreement so delivered. 
  

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 Standard & Poor’s — means Standard & Poor’s Ratings Group, a
division of McGraw-Hill, Inc. 
  
 Subordinated Payment
— means payments of interest on, or payments or prepayments of principal of, or the setting apart of money for a sinking or other analogous fund for the purchase, redemption, retirement or other acquisition of any principal or interest on
(a) Debt of the Company (including, without limitation, Senior Subordinated Debt) or any Guarantor which is subordinate or junior in right of payment or otherwise to the Debt evidenced by the Notes or the Joint and Several Guaranty or (b) Debt owing
to any Affiliate. 
  
 Subsidiary — means, as to any
Person, any corporation, association or other business entity in which such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group)
ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned
by such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions without the prior approval of such Person or one or more of its
Subsidiaries). Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. 
  
 Subsidiary Stock — Section 6.15(b). 
  
 Sun Land — means Sun Land Beef Company, an Arizona corporation and a Wholly-Owned Subsidiary. 
  
 Surviving Corporation — Section 6.14(a)(i). 
  
 Third Party Debt — means any and all Debt (other than Debt
evidenced by the Notes or the Joint and Several Guaranty). 
  
 Trademark Subsidiary — means a Subsidiary that has no material assets other than: 
  
 (a) patents, trademarks, service marks, trade names, copyrights and other similar licenses and intangibles used or useful in the conduct
of the business of the Company or any Subsidiary; 
  
 (b) intercompany obligations in its favor obtained in respect of the granting of rights to the Company and the other Subsidiaries with respect to the patents, trademarks, service marks, trade names, copyrights and other similar licenses and
intangibles held by it; and 
  
 (c) in the case
of SF Investments, Inc., a Delaware corporation, certain other assets (including, without limitation, the capital stock of Smithfield Companies, Inc.) that are material but in any event whose primary assets are of the type described in clauses (a)
and (b) above. 
  
 Transfer — Section 6.15(a).

  

 72 

 Trust Agreement — means that certain trust agreement (as amended from time to time),
executed in connection with the initial issue of the Notes, by the Company and the Guarantors in favor of the Security Trustee. 
  
 USA Patriot Act — means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. 
  
 Voting Stock — means capital stock of any class or classes of a corporation having power under ordinary
circumstances to vote for the election of members of the board of directors, or Persons performing similar functions (irrespective of whether or not at the time stock of any of the class or classes shall have or might have special voting power or
rights by reason of the happening of any contingency). 
  
 Wholly-Owned Subsidiary — means, at any time, any Subsidiary one hundred percent (100%) of all of the equity Securities (except directors’ qualifying shares) and voting Securities of which are owned by any one or
more of the Company and the other Wholly-Owned Subsidiaries at such time. 
  
 Wisconsin Deed of Trust — means that certain mortgage, security agreement and assignment of rents and leases (as amended from time to time), in favor of the Security Trustee, executed in connection
with the initial issue of the Notes by Packerland with respect to Packerland’s processing facility, warehouse facility and corporate headquarters, each located in Green Bay, Wisconsin, securing Packerland’s indebtedness and
obligations under the Joint and Several Guaranty with the grant of a first-priority lien encumbering such properties. 
  
 9.2 GAAP. 
  
 Where the character or amount of any asset or liability or item of income or expense, or any consolidation or other accounting computation is required to
be made for any purpose hereunder, it shall be done in accordance with GAAP as in effect on the date of, or at the end of the period covered by, the financial statements from which such asset, liability, item of income, or item of expense, is
derived, or, in the case of any such computation, as in effect on the date as of which such computation is required to be determined, provided, that if any term defined herein includes or excludes amounts, items or concepts that would not be
included in or excluded from such term if such term were defined with reference solely to GAAP, such term will be deemed to include or exclude such amounts, items or concepts as set forth herein. 
  
 9.3 Directly or Indirectly. 
  
 Where any provision herein refers to action to be taken by any Person, or
that such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person, including actions taken by or on behalf of any partnership in which such Person is a general partner.

  

 73 

 9.4 Section Headings, Table of Contents and Construction. 
  
 The titles of the Sections and the Table of Contents appear as a matter of
convenience only, do not constitute a part hereof and shall not affect the construction hereof. The words “herein,” “hereof,” “hereunder” and “hereto” refer to this Agreement as a whole and not to any
particular Section or other subdivision. Unless otherwise specified, references to Sections are to Sections of this Agreement, references to Annexes are to Annexes to this Agreement, references to Attachments are to Attachments to this Agreement and
references to Exhibits are to Exhibits to this Agreement. Each covenant contained herein shall be construed (absent an express contrary provision herein) as being independent of each other covenant contained herein, and compliance with any one
covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with one or more other covenants. 
  
 9.5 Governing Law. 
  
 EXCEPT AS SUPERCEDED BY APPLICABLE FEDERAL LAW, THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
INTERNAL VIRGINIA LAW, EXCLUDING CHOICE-OF-LAW PROVISIONS OF SUCH COMMONWEALTH THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH COMMONWEALTH. 
  
 10. MISCELLANEOUS. 
  
 10.1 Communications. 
  
 (a) Method; Address. All communications hereunder or under the Notes shall be in writing and sent by telecopy with receipt thereof
confirmed, or by registered or certified mail with return receipt requested (postage prepaid), or by overnight courier, and shall be addressed, 
  

	 	(i)	if to the Company, 

  
 Smithfield Foods, Inc. 
 200 Commerce Street 
 Smithfield, Virginia 23430 
 Attn: Mr. C. Larry Pope 
 Fax: (757) 365-3023 
  
 or at
such other address as the Company shall have furnished in writing to all holders of the Notes at the time outstanding, 
  

	 	(ii)	if to any Guarantor, 

  
 c/o Smithfield Foods, Inc. 
 200 Commerce Street 
 Smithfield, Virginia 23430 
 Attn: Mr. C. Larry Pope 
 Fax: (757) 365-3023 
  

 74 

 or at such other address as such Guarantor shall have furnished in writing to all holders of the Notes at
the time outstanding, 
  
 (iii) if to any of
the holders of the Notes, 
  
 (A) if such
holders are the Noteholders, at their respective addresses set forth on Annex 1, and further including any parties referred to on Annex 1 that are required to receive notices in addition to such holders of the Notes, and 
  
 (B) if such holders are not the Noteholders, at their
respective addresses set forth in the register for the registration and transfer of Notes maintained pursuant to Section 5.1, 
  
 or to any such party at such other address as such party may designate by notice duly given in accordance with this Section 10.1 to the Company and the
Guarantors (which other address shall be entered in such register). 
  
 (b) When Given. Any communication so addressed and deposited in the United States mail, postage prepaid, by registered or certified mail (in each case, with return receipt requested) shall be deemed to be
received on the third (3rd) succeeding Business Day after the day of such deposit (not including the date of such deposit). Any communication so addressed and delivered otherwise shall be deemed to be received when actually received at the address
of the addressee. 
  
 10.2 Reproduction of Documents.

  
 This Agreement and the other Financing Documents, and all
documents relating hereto and thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by you at the closing of your purchase of the Notes (except the Notes themselves)
and (c) financial statements, certificates and other information previously or hereafter furnished to you or any other holder of Notes, may be reproduced by any holder of Notes by any photographic, photostatic, microfilm, micro-card, miniature
photographic, digital or other similar process and each holder of Notes may destroy any original document so reproduced. The Company and the Guarantors agree and stipulate that any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such holder of Notes in the regular course of business) and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence. 
  
 10.3 Survival. 
  
 All
warranties, representations, certifications and covenants made by the Company and the Guarantors herein and in the other Financing Documents or in any certificate or other instrument delivered by the Company or the Guarantors or on their behalf
pursuant to any of the Financing Documents shall be considered to have been relied upon by you and shall survive the delivery to you of the Notes regardless of any investigation made by you or on your behalf. All statements in any such certificate
or other instrument shall constitute warranties and representations by the Company and the Guarantors hereunder. 
  

 75 

 10.4 Successors and Assigns. 
  
 This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto.
The provisions hereof are intended to be for the benefit of all holders, from time to time, of Notes, and shall be enforceable by any such holder, whether or not an express assignment to such holder of rights hereunder shall have been made by you or
your successor or assign. 
  
 10.5 Amendment and Waiver.

  
 (a) Requirements. This Agreement
may be amended, and the observance of any term hereof may be waived, with (and only with) the written consent of the Company and the Required Holders; provided that no such amendment or waiver of any of the provisions of Section 1 through
Section 4 hereof, inclusive, shall be effective as to any holder of Notes unless consented to by such holder in writing; and provided further that no such amendment or waiver shall, without the written consent of the holders of all Notes
(exclusive of Notes held by the Company or any Subsidiary) at the time outstanding, 
  
 (i) subject to Section 8.2, change the amount or time of any prepayment or payment of principal or Make-Whole Amount or the rate or time
of payment of interest, 
  
 (ii) amend Section 8,

  
 (iii) amend this Section 10.5, or 

 
 (iv) release any Guarantor from its obligations set forth
in the Joint and Several Guaranty. 
  
 The holder of any Note may specify that any
such written consent executed by it shall be effective only with respect to a portion of the Notes held by it (in which case it shall specify, by dollar amount, the aggregate principal amount of Notes with respect to which such consent shall be
effective) and in the event of any such specification such holder shall be deemed to have executed such written consent only with respect to the portion of the Notes so specified. 
  
 (b) Solicitation of Noteholders. 
  
 (i) Solicitation. The Company will not negotiate with any holder of the Notes with respect to a
material matter, nor will it solicit, request or negotiate in writing with respect to any proposed waiver or amendment of any of the provisions hereof or the Notes or any other Financing Document, unless each holder of the Notes (irrespective of the
amount of Notes then owned by it) shall be informed thereof by the Company with sufficient information to enable it to make an informed decision with respect thereto. Executed or true and correct 
  

 76 

 copies of any waiver or consent effected pursuant to the provisions of this Section 10.5 shall be
delivered by the Company to each holder of outstanding Notes forthwith following the date on which the same shall have been executed and delivered by all holders of outstanding Notes required to consent or agree to such waiver or consent.

  
 (ii) Payment. The Company shall not,
directly or indirectly, pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security, to any holder of Notes as consideration for or as an inducement to the entering into by
any holder of Notes of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted, on the same terms, ratably to the holders of all Notes then outstanding.

  
 (iii) Scope of Consent. Any consent
made pursuant to this Section 10.5 by a holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any Subsidiary or any Affiliate and has provided or has agreed to provide such written consent as a condition to such
transfer shall be void and of no force and effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and
the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force and effect, retroactive to the date such amendment or waiver initially took or takes effect, except solely as to such
holder. 
  
 (c) Binding Effect. Except as
provided in Section 10.5(b), any amendment or waiver consented to as provided in this Section 10.5 shall apply equally to all holders of Notes and shall be binding upon them and upon each future holder of any Note and upon the Company whether or not
such Note shall have been marked to indicate such amendment or waiver. No such amendment or waiver shall extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right
consequent thereon. 
  
 10.6 Payments, When Received.

  
 (a) Payments Due on Holidays. If
any payment due on, or with respect to, any Note shall fall due on a day other than a Business Day, then such payment shall be made on the first Business Day following the day on which such payment shall have so fallen due; provided that if
all or any portion of such payment shall consist of a payment of interest, for purposes of calculating such interest, such payment shall be deemed to have been originally due on such first following Business Day, and such interest shall accrue and
be payable to (but not including) the actual date of payment. 
  
 (b) Payments, When Received. Any payment actually received by you before 11:00 a.m., New York time, by federal funds wire transfer on any Business Day, shall be deemed to have been received by you on such day.
Any payment actually received by you at or after 11:00 a.m., New York time, by federal funds wire transfer on 
  

 77 

 any Business Day, shall be deemed to have been received on the next following Business Day. All payments
received by you on a day other than a Business Day, or in a manner other than by federal funds wire transfer, shall be deemed to have been received by you on the Business Day such amounts actually become available to you prior to 11:00 a.m., New
York time. 
  
 10.7 Entire Agreement. 
  
 This Agreement constitutes the final written expression of all of the terms
hereof and is a complete and exclusive statement of those terms. 
  
 10.8 Duplicate Originals, Execution in Counterpart. 
  
 Two or more duplicate originals hereof may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument. This Agreement may be executed in one or more counterparts and
shall be effective when at least one counterpart shall have been executed by each party hereto, and each set of counterparts which, collectively, show execution by each party hereto shall constitute one duplicate original. 
  
 [Remainder of page intentionally left blank. Next page is signature
page.] 
  

 78 

 If this Agreement is satisfactory to you, please so indicate by signing the acceptance at the foot of a
counterpart hereof and returning such counterpart to the Company, whereupon this Agreement shall become binding among us in accordance with its terms. 
  

			
	SMITHFIELD FOODS, INC.
		
	 By:
	 	 /s/ Daniel G. Stevens

	 Name:
	 	 Daniel G. Stevens

	 Title:
	 	 Vice President and Chief Financial Officer

  
 [Singature Page
to Amended and Restated Note Purchase Agreement (O-P)] 

 The undersigned hereby ratify and confirm their obligations pursuant to the Joint and Several Guaranty
(as defined in the foregoing Amended and Restated Note Purchase Agreement (the “Agreement”) and consent to the amendments effected by the Agreement. 
  
 CODDLE ROASTED MEATS, INC. 
 GWALTNEY
OF SMITHFIELD, LTD. 
 HANCOCK’S OLD FASHIONED COUNTRY HAM, INC. 
 IOWA QUALITY MEATS, LTD. 
 JOHN MORRELL & CO. 
 LYKES MEAT GROUP, INC. 
 MOYER PACKING COMPANY 
 NORTH SIDE FOODS CORP. 
 PACKERLAND HOLDINGS, INC. 
 PACKERLAND PROCESSING COMPANY, INC. 
 PACKERLAND-PLAINWELL, INC.
(f/k/a Murco Foods, Inc.) 
 PATRICK CUDAHY INCORPORATED 
 PREMIUM PORK, INC. 
 QUIK-TO-FIX FOODS, INC. 
 SFFC, INC. 
 SMITHFIELD PURCHASE CORPORATION (successor by merger to Carroll’s Realty, Inc.) 
 STADLER’S COUNTRY HAMS, INC. 
 SUN LAND BEEF COMPANY

 SUNNYLAND, INC. 
 THE SMITHFIELD COMPANIES, INC.

 THE SMITHFIELD PACKING COMPANY INCORPORATED 
  

			
	MURPHY-BROWN LLC
	By:	 	John Morrell & Co., as sole member

  
 MURPHY FARMS LLC 
 QUARTER M FARMS LLC 
 CARROLL’S FOODS OF VIRGINIA LLC

 CARROLL’S FOODS LLC 
 CIRCLE FOUR LLC

 CENTRAL PLAINS FARMS LLC 

			
	BROWN’S OF CAROLINA LLC
	By:	 	Murphy-Brown LLC, as sole member
	By:	 	John Morrell & Co., as sole member
	
	BROWN’S FARMS, LLC
	By:	 	Brown’s of Carolina LLC, as sole member
	By:	 	Murphy-Brown LLC, as sole member
	By:	 	John Morrell & Co., as sole member
	
	CARROLL’S REALTY PARTNERSHIP
	By:	 	Smithfield Purchase Corporation, as general partner
	
	SMITHFIELD PACKING REAL ESTATE, LLC
	By:	 	The Smithfield Packing Company Incorporated, as sole member

  
 [Signature Page to
Amended and Restated Note Purchase Agreement (O-P)] 

			
	CATTLE PRODUCTION SYSTEMS, INC.
	By:	 	Packerland Holdings, Inc., as sole member
	
	SMITHFIELD-CARROLL’S FARMS
	By:	 	Smithfield Purchase Corporation, as general partner
	
	BROWN’S REALTY PARTNERSHIP
	By:	 	Brown’s Farms, LLC, its partner
	By:	 	Brown’s of Carolina LLC, its sole member and manager
	By:	 	Murphy-Brown LLC, its sole member and manager
	By:	 	John Morrell & Co., as sole member
	 	 	and
	By:	 	Smithfield Purchase Corporation, its partner
	
	SMITHFIELD PACKING REALTY PARTNERSHIP
	By:	 	Smithfield Packing Real Estate, LLC, its partner
	By:	 	The Smithfield Packing Company, Incorporated, its sole member and manager
	 	 	and
	By:	 	Smithfield Purchase Corporation, its partner

  

			
	By:	 	 /s/ Daniel G. Stevens

	Name:	 	Daniel G. Stevens
	Title:	 	Vice President

  
 [Signature Page to
Amended and Restated Note Purchase Agreement (O-P)] 

 Accepted: 
  

			
	JOHN HANCOCK LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Kenneth Warlick

	Name:	 	Kenneth Warlick
	Title:	 	Managing Director
	
	SIGNATURE 5 L.P.
	By: John Hancock Life Insurance Company, as Portfolio Advisor
		
	By:	 	 /s/ Kenneth Warlick

	Name:	 	Kenneth Warlick
	Title:	 	Managing Director
	
	JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Kenneth Warlick

	Name:	 	Kenneth Warlick
	Title:	 	Managing Director
	
	INVESTORS PARTNER LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Kenneth Warlick

	Name:	 	Kenneth Warlick
	Title:	 	Managing Director
	
	COBANK, ACB
		
	By:	 	 /s/ Jeff Liggett

	Name:	 	Jeff Liggett
	Title:	 	Assistant Vice President

  
 [Signature Page to
Amended and Restated Note Purchase Agreement (O-P)] 

 ANNEX 1 
  
 INFORMATION AS TO NOTEHOLDERS 
  

							
	Current Noteholder	  	 JOHN HANCOCK LIFE INSURANCE COMPANY
		
	 Series of Note: Aggregate Principal
 Amount of
Notes Held
	  	 Series O: $14,883,333
		
	Payment on Account of Note	  	 
		
	            Method	  	 Federal Funds Wire Transfer
		
	             Account Information
	  	 Bank One, Illinois
	 	  	 ABA # 071-100-269
	 	  	 Acct.:	  	John Hancock Collection Account
	 	  	 Acct. #:	  	617423884
		
	 	  	  On order of Smithfield Foods, Inc.; 832248 E# 1
  
  with contemporaneous advice of payment, setting forth the information above and the “Accompanying Information” below,
to:
  
  John Hancock Life Insurance Company
  201 Knollwood Drive, Suite A
  Champaign, IL
61820-7594

	 	  	 Attn:	  	Accounting
			
	 	  	 Fax:	  	217-356-1031

							
			
	Accompanying Information	  	Name of Company:	  	SMITHFIELD FOODS, INC.
			
	 	  	Description of Security:	  	Reset Rate Series O 5/10 Year
	 	  	 	  	 	  	Senior Secured Note due July 31, 2011
			
	 	  	PPN:	  	832248 E# 1
		
	 	  	Due Date and Application (as among principal, premium and interest) of the payment being made:

							
		
	Address for Notices Related to Payments	  	  Via fax and mail to:
  
  John Hancock Life Insurance Company
  201 Knollwood Drive, Suite
A
  Champaign, IL 61820-7594

	 	  	 Attn:	  	Accounting
			
	 	  	 Fax:	  	217-356-1031
		
	 	  	  with a copy to:
  
  John Hancock Life Insurance Company
  200 Clarendon
Street
  Boston, MA 02117

	 	  	 Attn:	  	Bond & Corporate Finance Group, T-57
			
	 	  	 Fax:	  	617-572-1165

  

 Annex 1-1 

					
	Current Noteholder	  	JOHN HANCOCK LIFE INSURANCE COMPANY
		
	Address for All Other Notices	  	Via fax and mail to:
	 	  	  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	 	Bond & Corporate Finance Group, T-57
			
	 	  	Fax:	 	617-572-1165
		
	 	  	 Copies of any notices regarding changes in issuer’s name, address or principal place of business or location of collateral,
via fax and mail, to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	 	Investment Law Division, T-30
			
	 	  	Fax:	 	617-572-9269
		
	Other Instructions	  	JOHN HANCOCK LIFE INSURANCE COMPANY
			
	 	  	By:	 	  

	 	  	Name:	 	 
	 	  	Title:	 	 
		
	Tax Identification Number	  	04-1414660

  

 Annex 1-2 

							
	Current Noteholder	  	SIGNATURE 5 L.P.
		
	 Series of Note: Aggregate Principal
 Amount of
Notes Held
	  	Series O: $3,916,667
		
	Payment on Account of Note	  	 
		
	             Method
	  	Federal Funds Wire Transfer
		
	            Account Information	  	Bank One, Illinois
	 	  	ABA # 071-100-269
	 	  	Acct:	  	John Hancock Collection Account
	 	  	Acct. #:	  	617423884
		
	 	  	 On order of Smithfield Foods, Inc.; 832248 E# 1
  
 with contemporaneous advice of payment, setting forth the information above and the “Accompanying Information” below,
to:
  
 John Hancock Life Insurance Company
 201 Knollwood Drive, Suite A
 Champaign, IL 61820-7594

	 	  	Attn:	  	Accounting
			
	 	  	Fax:	  	217-356-1031

							
			
	Accompanying Information	  	 Name of Company:	  	SMITHFIELD FOODS, INC.
			
	 	  	 Description of Security:	  	Reset Rate Series O 5/10 Year
	 	  	 	  	Senior Secured Note due July 31, 2011
			
	 	  	 PPN:	  	832248 E# 1
		
	 	  	 Due Date and Application (as among principal, premium and interest) of the payment being made:

							
		
	Address for Notices Related to Payments	  	 Via fax and mail to:
  
 John Hancock Life Insurance Company
 201 Knollwood Drive, Suite A

Champaign, IL 61820-7594

				
	 	  	Fax:	  	217-356-1031	  	 
		
	 	  	 with a copy to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Bond & Corporate Finance Group, T-57
			
	 	  	Fax:	  	617-572-1165
		
	Address for All Other Notices	  	 Via fax and mail to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Bond & Corporate Finance Group, T-57
				
	 	  	Fax:	  	617-572-1165	  	 
		
	 	  	 Copies of any notices regarding changes in issuer’s name, address or principal place of business or location of collateral,
via fax and mail, to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Investment Law Division, T-30
			
	 	  	Fax:	  	617-572-9269

  

 Annex 1-3 

					
	Current Noteholder	 	SIGNATURE 5 L.P.
		
	Other Instructions	 	SIGNATURE 5 L.P.
			
	 	 	By:	 	John Hancock Life Insurance Company, as Portfolio Advisor
			
	 	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 
		
	Tax Identification Number	 	None

  

 Annex 1-4 

									
	Current Noteholder	  	JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
		
	 Series of Note: Aggregate Principal
 Amount of
Notes Held
	  	Series O: $587,500
		
	 Payment on Account of Note
	  	 
		
	             Method
	  	Federal Funds Wire Transfer
		
	             Account Information
	  	Bank One, Illinois
	 	  	ABA # 071-100-269
	 	  	Acct.:	  	John Hancock Collection Account
	 	  	Acct. #:	  	617423884
		
	 	  	 On order of Smithfield Foods, Inc.; 832248 E# 1
  
 with contemporaneous advice of payment, setting forth the information above and the “Accompanying Information” below,
to:
  
 John Hancock Life Insurance Company
 201 Knollwood Drive, Suite A
 Champaign, IL 61820-7594

	 	  	Attn:	  	Accounting
			
	 	  	Fax:	  	217-356-1031
			
	 Accompanying Information
	  	Name of Company:	 	SMITHFIELD FOODS, INC.
			
	 	  	Description of Security:	 	Reset Rate Series O 5/10 Year
	 	  	 	 	Senior Secured Note due July 31, 2011
			
	 	  	PPN:	 	832248 E# 1
		
	 	  	Due Date and Application (as among principal, premium and interest) of the payment being made:
		
	Address for Notices Related to Payments	  	 Via fax and mail to:
  
 John Hancock Life Insurance Company
 201 Knollwood Drive, Suite A

Champaign, IL 61820-7594

	 	  	Attn:	  	Accounting
			
	 	  	Fax:	  	217-356-1031
	 	  	  
 with a copy to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Bond & Corporate Finance Group, T-57
			
	 	  	Fax:	  	617-572-1165
		
	Address for All Other Notices	  	Via fax and mail to:
		
	 	  	 John Hancock Life Insurance Company
 200
Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Bond & Corporate Finance Group, T-57
			
	 	  	Fax:	  	617-572-1165
		
	 	  	 Copies of any notices regarding changes in issuer’s name, address or principal place of business or location of collateral,
via fax and mail, to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Investment Law Division, T-30
			
	 	  	Fax:	  	617-572-9269

  

 Annex 1-5 

					
	Current Noteholder	  	JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
		
	Other Instructions	  	JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
			
	 	  	By:	 	  

	 	  	Name:	 	 
	 	  	Title:	 	 
		
	Tax Identification Number	  	04-2664016

  

 Annex 1-6 

									
	Current Noteholder	  	INVESTORS PARTNER LIFE INSURANCE COMPANY
		
	 Series of Note: Aggregate Principal
 Amount of
Notes Held
	  	Series O: $195,833
		
	Payment on Account of Note	  	 
		
	            Method	  	Federal Funds Wire Transfer
		
	             Account Information
	  	Bank One, Illinois
	 	  	ABA # 071-100-269
	 	  	Acct.:	  	John Hancock Collection Account
	 	  	Acct. #:	  	617423884
		
	 	  	 On order of Smithfield Foods, Inc.; 832248 E# 1
  
 with contemporaneous advice of payment, setting forth the information above and the “Accompanying Information” below,
to:
  
 John Hancock Life Insurance Company
 201 Knollwood Drive, Suite A
 Champaign, IL 61820-7594

	 	  	Attn:	  	Accounting
			
	 	  	Fax:	  	217-356-1031
			
	 Accompanying Information
	  	Name of Company:	 	SMITHFIELD FOODS, INC.
			
	 	  	Description of Security:	 	Reset Rate Series O 5/10 Year
	 	  	 	 	Senior Secured Note due July 31, 2011
			
	 	  	PPN:	 	832248 E# 1
		
	 	  	Due Date and Application (as among principal, premium and interest) of the payment being made:
		
	Address for Notices Related to Payments	  	 Via fax and mail to:
  
 John Hancock Life Insurance Company
 201 Knollwood Drive, Suite A

Champaign, IL 61820-7594

	 	  	Attn:	  	Accounting
			
	 	  	Fax:	  	217-356-1031
		
	 	  	 with a copy to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Bond & Corporate Finance Group, T-57
			
	 	  	Fax:	  	617-572-1165
		
	Address for All Other Notices	  	Via fax and mail to:
		
	 	  	 c/o John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Bond & Corporate Finance Group, T-57
			
	 	  	Fax:	  	617-572-1165
		
	 	  	 Copies of any notices regarding changes in issuer’s name, address or principal place of business or location of collateral,
via fax and mail, to:
  
 John Hancock Life Insurance Company
 200 Clarendon Street
 Boston, MA 02117

	 	  	Attn:	  	Investment Law Division, T-30
			
	 	  	Fax:	  	617-572-9269

  

 Annex 1-7 

					
	Current Noteholder	  	INVESTORS PARTNER LIFE INSURANCE COMPANY
		
	Other Instructions	  	INVESTORS PARTNER LIFE INSURANCE COMPANY
			
	 	  	By:	 	  

	 	  	Name:	 	 
	 	  	Title:	 	 
		
	Tax Identification Number	  	13-3072894

  

 Annex 1-8 

									
	Current Noteholder	  	COBANK, ACB
		
	 Series of Note: Aggregate Principal
 Amount of
Notes Held
	  	Series P: $23,500,000
		
	Payment on Account of Note	  	 
		
	             Method
	  	Federal Funds Wire Transfer
		
	             Account Information
	  	CoBank, ACB
	 	  	 Greenwood Village, Colorado
 ABA #
307-088-754
 Reference # 31275522
 On order of Smithfield Foods,
Inc.

			
	 	  	Re:	  	(see “Accompanying Information” below)
			
	 Accompanying Information
	  	Name of Company:	  	SMITHFIELD FOODS, INC.
			
	 	  	Description of Security:	  	Adjustable Rate Series P 5/10 Year
	 	  	 	  	Senior Secured Note due July 31, 2011
			
	 	  	PPN:	  	832248 F# 0
		
	 	  	Due Date and Application (as among principal, premium and interest) of the payment being made:
	  
 Address for Notices Related to
Payments
	  	  
 via mail and facsimile to:
  
 CoBank, ACB
 Department 167
 Denver, CO 80291-0167

	 	  	Attn:	  	Betty Marshall
	 	  	 	  	Syndications Representative
			
	 	  	Fax:	  	303-740-4021
	 	  	  
 with a copy to:
  
 CoBank, ACB
 5500 South Quebec Street
 Greenwood Village, Colorado 80111

	 	  	Attn:	  	Jim Stutzman
			
	 	  	Fax:	  	303-224-2691
	 	  	  
 for all funding and repayment questions
contact:
  
 Darla Moran
 Closing Specialist

			
	 	  	Tel:	  	303-740-4033
	 	  	Fax:	  	303-740-4021
	 	  	  
 Deann Sullivan
 Syndications Manager

			
	 	  	Tel:	  	303-740-4315
	 	  	Fax:	  	303-740-4021

  

 Annex 1-9 

					
	Current Noteholder	  	COBANK, ACB
		
	Address for All Other Notices	  	 CoBank, ACB
 5500 South Quebec
Street
 Greenwood Village, Colorado 80111

	 	  	Attn:	  	        Jim Stutzman
			
	 	  	Fax:	  	        303-224-2691
		
	 	  	 for all loan closing and administration questions contact:
  
 Jim Stutzman
 Vice
President

			
	 	  	Tel:	  	        303-740-6585
	 	  	Fax:	  	        303-224-2691
	 	  	  
 Jeff Liggett
 Sr. Credit Officer

			
	 	  	Tel:	  	        303-740-6470
	 	  	Fax:	  	        303-224-2671
		
	Other Instructions	  	COBANK, ACB
			
	 	  	By:	  	  

	 	  	Name:	  	 
	 	  	Title:	  	 
		
	Tax Identification Number	  	84-1286705

  

 Annex 1-10 

 EXHIBIT Al 
  

[FORM OF RESET RATE SERIES O 5/10 YEAR SENIOR SECURED NOTE] 
  
 SMITHFIELD FOODS, INC. 
  
 RESET RATE SERIES O 5/10 YEAR SENIOR SECURED NOTE 
  

			
	 No. RO-[    ]
	  	[Date]
	 $[            ]
	  	PPN: 832248 E# 1

  
 SMITHFIELD FOODS,
INC., a Virginia corporation (the “Company”), for value received, hereby promises to pay to
[                                ] or registered assigns the principal sum
of [                                ] DOLLARS
($[                    ]) on July 31, 2011 and to pay interest (computed on the basis of a 360-day year comprised of twelve 30-day months)
on the unpaid principal balance thereof from the date of this Note at the Series O Rate as provided in the Note Purchase Agreement referred to below, monthly on the last day of each month in each year, commencing on the payment date next succeeding
the date hereof, until the principal amount hereof shall become due and payable; and to pay on demand interest on any overdue principal (including any overdue prepayment of principal) and Make-Whole Amount, if any, and (to the extent permitted by
applicable law) on any overdue installment of interest, at a rate equal to the lesser of (a) the Maximum Legal Rate of Interest or (b) the Series O Rate plus two percent (2%) per annum. The interest rate payable on this Note is subject
to adjustment as provided in the Note Purchase Agreement referred to below. 
  
 Payments of principal, Make-Whole Amount, if any, and interest shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private
debts to the registered holder hereof at the address shown in the register maintained by the Company for such purpose, in the manner provided in the Note Purchase Agreement referred to below. 
  
 This Note is one of an issue of Series O Senior Secured Notes of the Company
issued in an aggregate principal amount limited to Twenty-Five Million Dollars ($25,000,000) pursuant to the separate Note Purchase Agreements (collectively, as may be amended from time to time, the “Note Purchase Agreement”), each
dated as of March 1, 2002, among the Company and the respective purchasers listed on Annex 1 thereto, and is entitled to the benefits thereof. Capitalized terms used herein and not otherwise defined herein have the meanings specified in the Note
Purchase Agreement. As provided in the Note Purchase Agreement, this Note is subject to prepayment, in whole or in part, in certain cases without a Make-Whole Amount and in other cases with a Make Whole Amount. The Company agree to make the
scheduled required prepayments on account of such Notes in accordance with the provisions of the Note Purchase Agreement. 
  

 Exhibit A1-1 

 This Note is a registered Note and is transferable only by surrender hereof at the principal office of
the Company as specified in the Note Purchase Agreement, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of this Note or his attorney duly authorized in writing. 
  
 Under certain circumstances, as specified in the Note Purchase Agreement, the
principal of this Note (together with any applicable Make-Whole Amount) may be declared due and payable in the manner and with the effect provided in the Note Purchase Agreement. 
  
 The Company waives presentment, protest and demand, notice of protest, demand and dishonor and agree to pay all costs of
collection when incurred (including, without limitation, attorneys’ fees) and to perform and comply with each of the covenants, conditions, provisions and agreements of the undersigned contained in every Financing Document. 
  
 This Note is secured in accordance with, and entitled to the benefits of, the
Security Documents. 
  
 All obligations evidenced by the Note are
guarantied by the Guarantors pursuant to the Joint and Several Guaranty. 
  
 THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAW OF THE COMMONWEALTH OF VIRGINIA, EXCLUDING CHOICE-OF-LAW PROVISIONS OF SUCH COMMONWEALTH THAT WOULD REQUIRE
THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER SUCH COMMONWEALTH. 
  

			
	SMITHFIELD FOODS, INC.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 Exhibit A1-2 

 EXHIBIT A2 
  

[FORM OF ADJUSTABLE RATE SERIES P 5/10 YEAR SENIOR SECURED NOTE] 
  
 SMITHFIELD FOODS, INC. 
  
 ADJUSTABLE RATE SERIES P 5/10 YEAR SENIOR SECURED NOTE 
  

			
	 No. RP-[    ]
	  	[Date]
	 $[            ]
	  	PPN: 832248 F# 0

  
 SMITHFIELD FOODS,
INC., a Virginia corporation (the “Company”), for value received, hereby promises to pay to
[                                ] or registered assigns the principal sum
of [                                ] DOLLARS
($[                    ]) on July 31, 2011 and to pay interest (computed on the basis of a 360-day year and actual days elapsed) on the
unpaid principal balance thereof from the date of this Note at the Series P Rate and on the dates as provided in the Note Purchase Agreement referred to below, until the principal amount hereof shall become due and payable; and to pay on demand
interest on any overdue principal (including any overdue prepayment of principal) and Make-Whole Amount, if any, and (to the extent permitted by applicable law) on any overdue installment of interest, at a rate equal to the rate provided in Section
4 of the Note Purchase Agreement referred to below in respect of such overdue amounts. 
  
 Payments of principal, Make-Whole Amount, if any, and interest shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private
debts to the registered holder hereof at the address shown in the register maintained by the Company for such purpose, in the manner provided in the Note Purchase Agreement referred to below. 
  
 This Note is one of an issue of Series P Senior Secured Notes of the Company
issued in an aggregate principal amount limited to Thirty Million Dollars ($30,000,000) pursuant to the separate Note Purchase Agreements (collectively, as may be amended from time to time, the “Note Purchase Agreement”),
each dated as of March 1, 2002, among the Company and the respective purchasers listed on Annex 1 thereto, and is entitled to the benefits thereof. Capitalized terms used herein and not otherwise defined herein have the meanings specified in the
Note Purchase Agreement. As provided in the Note Purchase Agreement, this Note is subject to prepayment, in whole or in part, in certain cases without a Make-Whole Amount and in other cases with a Make Whole Amount. The Company agrees to make the
scheduled required prepayments on account of such Notes in accordance with the provisions of the Note Purchase Agreement. 
  
 This Note is a registered Note and is transferable only by surrender hereof at the principal office of the Company as specified in the Note Purchase
Agreement, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of this Note or his attorney duly authorized in writing. 
  

 Under certain circumstances, as specified in the Note Purchase Agreement, the principal of this Note
(together with any applicable Make-Whole Amount) may be declared due and payable in the manner and with the effect provided in the Note Purchase Agreement. 
  
 The Company waives presentment, protest and demand, notice of protest, demand and dishonor and agrees to pay all costs of collection when incurred
(including, without limitation, attorneys’ fees) and to perform and comply with each of the covenants, conditions, provisions and agreements of the undersigned contained in every Financing Document. 
  
 This Note is secured in accordance with, and entitled to the benefits of, the
Security Documents. 
  
 All obligations evidenced by the Note are
guarantied by the Guarantors pursuant to the Joint and Several Guaranty. 
  
 THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF VIRGINIA, EXCLUDING CHOICE-OF-LAW PROVISIONS OF SUCH COMMONWEALTH THAT WOULD REQUIRE
THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER SUCH COMMONWEALTH. 
  

			
	SMITHFIELD FOODS, INC.
		
	By:	 	  

	Name:	 	 
	Title:Commonwealth Aluminum Lewisport, LLC Hourly 401K Plan

 Exhibit 4.4 
  

  
 COMMONWEALTH ALUMINUM LEWISPORT, LLC 
  
 HOURLY
401(k) PLAN 
  

  
 Amended and Restated 
 Effective
January 1, 1997 
  

  
 TABLE OF CONTENTS

  

					
	 Section

	  	 	  	Page

	
	ARTICLE 1
	
	PURPOSE AND APPLICABILITY OF PLAN
			
	 1.1
	  	Purpose of Plan	  	1
	 1.2
	  	Applicability of Plan	  	1
	
	ARTICLE 2
	
	DEFINITIONS
			
	 2.1
	  	Account Balance	  	2
	 2.2
	  	Accounting Date	  	2
	 2.3
	  	Accounts	  	2
	 2.4
	  	Actual Deferral Percentage	  	2
	 2.5
	  	Allocable Income	  	2
	 2.6
	  	Average Contribution Percentage	  	2
	 2.7
	  	Beneficiary	  	3
	 2.8
	  	Benefit	  	3
	 2.9
	  	Benefits Committee or Committee	  	3
	 2.10
	  	Benefitting	  	3
	 2.11
	  	Board of Directors	  	3
	 2.12
	  	Break in Service	  	3
	 2.13
	  	Code	  	3
	 2.14
	  	Collective Bargaining Agreement	  	3
	 2.15
	  	Collective Bargaining Unit	  	3
	 2.16
	  	Company	  	3
	 2.17
	  	Compensation	  	4
	 2.18
	  	Contributions	  	4
	 2.19
	  	Direct Rollover	  	4
	 2.20
	  	Directed Account	  	4
	 2.21
	  	Disability or Disabled	  	4
	 2.22
	  	Distributee	  	5
	 2.23
	  	Effective Date	  	5
	 2.24
	  	Elective Deferral	  	5
	 2.25
	  	Elective Deferral Account	  	5
	 2.26
	  	Elective Deferral Contributions	  	5
	 2.27
	  	Eligible Retirement Plan	  	5
	 2.28
	  	Eligible Rollover Distribution	  	5

  

 -i- 

 TABLE OF CONTENTS 
  

					
	 Section

	  	 	  	Page

	 2.29
	  	Employee	  	6
	 2.30
	  	Employee Contribution Account	  	6
	 2.31
	  	Employee Contributions	  	6
	 2.32
	  	Entry Date	  	6
	 2.33
	  	ERISA	  	6
	 2.34
	  	5% Owner	  	7
	 2.35
	  	Forfeitures	  	7
	 2.36
	  	Highly Compensated Employee	  	7
	 2.37
	  	Joinder Agreement	  	7
	 2.38
	  	Leased Employee	  	7
	 2.39
	  	Matching Account	  	8
	 2.40
	  	Matching Contributions	  	8
	 2.41
	  	Normal Retirement Age	  	8
	 2.42
	  	Participant	  	8
	 2.43
	  	Performance Sharing Contribution	  	8
	 2.44
	  	Period of Service or Service	  	8
	 2.45
	  	Period of Severance	  	9
	 2.46
	  	Plan	  	9
	 2.47
	  	Plan Administrator or Administrator	  	9
	 2.48
	  	Plan Year	  	9
	 2.49
	  	Prior Plan	  	9
	 2.50
	  	Profit Sharing Contribution	  	9
	 2.51
	  	Qualified Domestic Relations Order	  	9
	 2.52
	  	Related Company	  	9
	 2.53
	  	Required Beginning Date	  	9
	 2.54
	  	Return on Investment	  	10
	 2.55
	  	Rollover Account	  	10
	 2.56
	  	Rollover Contribution	  	10
	 2.57
	  	Severance From Service	  	10
	 2.58
	  	Sponsoring Company	  	10
	 2.59
	  	Supplemental Contributions	  	10
	 2.60
	  	Trust	  	11
	 2.61
	  	Trust Fund	  	11
	 2.62
	  	Trustee	  	11
	 2.63
	  	Valuation Date	  	11
	 2.64
	  	Year of Service	  	11

  

 -ii- 

 TABLE OF CONTENTS 
  

					
	 Section

	  	 	  	Page

	
	ARTICLE 3
	
	ELIGIBILITY FOR PARTICIPATION
			
	 3.1
	  	Date Employees Become Participants	  	12
	 3.2
	  	Enrollment and Participation	  	12
	 3.3
	  	Eligibility of Rehired Employees	  	12
	 3.4
	  	Eligible Class	  	12
	 3.5
	  	Notice of Participation	  	12
	 3.6
	  	Elective Deferral Election	  	13
	 3.7
	  	Employee Contributions	  	14
	 3.8
	  	Suspension of Elective Deferral Contributions and Employee Contributions	  	15
	 3.9
	  	Provisions of Plan Binding On Participants	  	15
	 3.10
	  	Change In Employment Status	  	16
	 3.11
	  	Correction of Inadvertent Error	  	16
	
	ARTICLE 4
	
	ELECTIVE DEFERRAL, SUPPLEMENTAL, EMPLOYEE,
	PROFIT SHARING AND PERFORMANCE SHARING CONTRIBUTIONS
			
	 4.1
	  	Amount of Contributions	  	17
	 4.2
	  	When Contributions Made	  	19
	 4.3
	  	Limitation on Amount of Contributions	  	19
	 4.4
	  	Payment of Contributions to Trustee	  	19
	 4.5
	  	Form of Contributions	  	19
	 4.6
	  	Return of Contributions	  	19
	 4.7
	  	Payment of Expenses of Plan	  	20
	
	ARTICLE 5
	
	ROLLOVER CONTRIBUTIONS
			
	 5.1
	  	Rollover Contributions	  	21

  

 -iii- 

 TABLE OF CONTENTS 
  

					
	 Section

	  	 	  	Page

	
	ARTICLE 6
	
	ACCOUNTS
			
	 6.1
	  	Allocation of Contributions and Forfeitures to Accounts	  	22
	 6.2
	  	Determination of Account Balances	  	23
	 6.3
	  	Limitations on Elective Deferral Contributions	  	23
	 6.4
	  	Limitations on Matching and Employee Contributions	  	25
	 6.5
	  	Limitations on Annual Additions	  	27
	 6.6
	  	Responsibility for Accounts	  	31
	 6.7
	  	Notice to Participants of Account Balances	  	31
	
	ARTICLE 7
	
	BENEFITS
			
	 7.1
	  	Normal Retirement	  	32
	 7.2
	  	Retirement After Normal Retirement Age	  	32
	 7.3
	  	Death	  	32
	 7.4
	  	Disability	  	32
	 7.5
	  	Severance from Service	  	32
	 7.6
	  	Forfeitures	  	33
	 7.7
	  	Time of Distribution of Benefits	  	33
	 7.8
	  	Distributions of Benefits	  	34
	 7.9
	  	Rollover Election and Rollover Notice	  	36
	 7.10
	  	Additional Distribution Requirements for Elective Deferral and Supplemental Accounts	  	36
	
	ARTICLE 8
	
	LOANS AND WITHDRAWALS
			
	 8.1
	  	Loans to Participants	  	38
	 8.2
	  	Actions Upon Default	  	39
	 8.3
	  	Hardship Withdrawals from Elective Deferral and Rollover Accounts	  	39
	 8.4
	  	Withdrawals From Employee Contribution Accounts	  	41
	 8.5
	  	In-Service Withdrawals After Age 59-1/2	  	41

  

 -iv- 

 TABLE OF CONTENTS 
  

					
	Section

	 	 	  	Page

			
	 	 	ARTICLE 9	  	 
			
	 	 	DESIGNATION OF BENEFICIARY	  	 
			
	9.1	 	Designation Form; Change of Designation; Survival of Beneficiary	  	42
	9.2	 	Distribution If No Beneficiary Designated	  	42
			
	 	 	ARTICLE 10	  	 
			
	 	 	 ORGANIZATION AND RESPONSIBILITIES
 OF THE BENEFITS COMMITTEE
	  	 
			
	10.1	 	Appointment and Tenure of Benefits Committee	  	43
	10.2	 	Organization and Decisions of Benefits Committee	  	43
	10.3	 	Duties of Benefits Committee	  	43
	10.4	 	Benefits Committee Decisions Final and Binding	  	45
	10.5	 	Powers and Authority of Benefits Committee	  	45
	10.6	 	Benefits Committee Directions to Trustee	  	45
	10.7	 	Employment of Counsel, Etc.	  	45
	10.8	 	Payment of Expenses of Benefits Committee	  	46
	10.9	 	Benefits Committee and Trustee to be Furnished Information Concerning Employees	  	46
			
	 	 	ARTICLE 11	  	 
			
	 	 	THE TRUST FUND AND TRUSTEE	  	 
			
	11.1	 	Establishment of Trust Fund	  	47
	11.2	 	No Diversion of Trust Fund	  	47
	11.3	 	Removal or Resignation of Trustee	  	47
	11.4	 	Trust Part of Plan	  	47
	11.5	 	Trustee Powers	  	47
	11.6	 	No Guarantee of Losses in Trust Fund	  	47
	11.7	 	Participant Not to Be Fiduciary	  	47
	11.8	 	Power of Participants To Direct Investment of Accounts	  	47

  

 -v- 

 TABLE OF CONTENTS 
  

					
	Section

	  	 	  	Page

			
	 	  	ARTICLE 12	  	 
			
	 	  	AMENDMENTS TO THE PLAN	  	 
			
	12.1	  	Right Generally to Make Amendments	  	50
	12.2	  	Right to Make Amendments Relating to Qualification of Plan	  	50
	12.3	  	Amendment by Benefits Committee	  	50
			
	 	  	ARTICLE 13	  	 
			
	 	  	RESERVATIONS OF RIGHTS
BY THE COMPANY
AND
LIMITATIONS ON RIGHTS OF PARTICIPANTS	  	 
			
	13.1	  	Plan Voluntary on Part of Company	  	51
	13.2	  	Plan Not Contract of Employment	  	51
			
	 	  	ARTICLE 14	  	 
			
	 	  	TERMINATION OF PLAN	  	 
			
	14.1	  	Events Causing Termination of Plan	  	52
	14.2	  	Procedure Upon Termination	  	52
			
	 	  	ARTICLE 15	  	 
			
	 	  	ADDITION AND WITHDRAWAL OF A COMPANY	  	 
			
	15.1	  	Adoption of Plan by Related Company	  	53
	15.2	  	Withdrawal From Plan by Company	  	53
			
	 	  	ARTICLE 16	  	 
			
	 	  	CHANGE IN EMPLOYMENT	  	 
			
	16.1	  	Participant Transfer From Company to Company	  	54
	16.2	  	Participant Transfer From Company to Related Company	  	54
	16.3	  	Employee Credit for Services With Related Company	  	54

  

 -vi- 

 TABLE OF CONTENTS 
  

					
	Section

	  	 	  	Page

			
	 	  	ARTICLE 17	  	 
			
	 	  	LIMITATIONS ON VESTING
AND
ALIENABILITY OF
BENEFITS	  	 
			
	17.1	  	Participant Interests Limited to Benefits Actually Accrued	  	55
	17.2	  	Spendthrift Clause	  	55
			
	 	  	ARTICLE 18	  	 
			
	 	  	BENEFITS CLAIMS PROCEDURE	  	 
			
	18.1	  	Claims for Benefits	  	56
	18.2	  	Review of Denial of Claims	  	56
	18.3	  	Decision on Review of Denial	  	56
			
	 	  	ARTICLE 19	  	 
			
	 	  	FIDUCIARY RESPONSIBILITIES	  	 
			
	19.1	  	Duties and Obligations of Fiduciaries	  	57
	19.2	  	Allocation of Fiduciary Responsibilities	  	57
			
	 	  	ARTICLE 20	  	 
			
	 	  	INDEMNIFICATION OF CERTAIN FIDUCIARIES	  	 
			
	20.1	  	Rights to Indemnification	  	59
	20.2	  	Advancement of Expenses	  	59
	20.3	  	Determination of Right to Indemnity	  	59
	20.4	  	Other Rights	  	60
	20.5	  	Indemnification By More Than One Company	  	60

  

 -vii- 

 TABLE OF CONTENTS 
  

					
	Section

	  	 	  	Page

			
	 	  	ARTICLE 21	  	 
			
	 	  	MISCELLANEOUS	  	 
			
	21.1	  	Merger or Consolidation of Plan	  	61
	21.2	  	Unclaimed Benefits	  	61
	21.3	  	No Diversion of Trust Fund	  	61
	21.4	  	Construction	  	61
	21.5	  	Gender and Number	  	61
	21.6	  	Discretionary Acts to be Non-Discriminatory	  	61
	21.7	  	Titles and Headings	  	62
	21.8	  	Distributions to Incompetents or Minors	  	62
	21.9	  	Qualified Domestic Relations Order	  	62
	21.10	  	Compliance with the Uniformed Services Employment and Reemployment Rights Act of 1994	  	62
	21.11	  	Appointment of Administrator	  	62
	21.12	  	Effective Date	  	62

  

 -viii- 

  
 COMMONWEALTH ALUMINUM
LEWISPORT, LLC 
  
 HOURLY 401(k) PLAN 
  
 WHEREAS, Commonwealth Aluminum
Corporation, a Delaware corporation with its principal office and place of business in Louisville, Kentucky, adopted the Commonwealth Aluminum Corporation Performance Sharing Plan for Hourly Employees (“Prior Plan”), a profit sharing plan
and trust for the benefit of its eligible employees, which Prior Plan has been amended from time to time; and 
  
 WHEREAS, effective January 1, 2001, Commonwealth Aluminum Lewisport, LLC (“Sponsoring Company”) became the
sponsor of the Prior Plan in connection with a corporate restructuring; and 
  
 WHEREAS, the Board of Directors of the Sponsoring Company has authorized and approved the amendment and restatement of the Prior Plan in the form of the Commonwealth Aluminum
Lewisport, LLC Hourly 401(k) Plan (“Plan”) as set forth herein, to make technical changes to the Plan in order to comply with changes in law. 
  
 NOW, THEREFORE, the Sponsoring Company hereby approves and adopts the Plan, which shall read as
follows: 
  
 ARTICLE 1 
  
 PURPOSE AND APPLICABILITY
OF PLAN 
  
 1.1
PURPOSE OF PLAN. The purpose of the Plan shall continue to be to provide Benefits to Participants upon retirement, Disability, death and Severance from Service, upon the terms and
conditions and subject to the limitations, contained herein. The Plan is hereby designated as a profit sharing plan for purposes of sections 401(a) and 401(k) of the Code. 
  
 1.2 APPLICABILITY OF PLAN. The provisions of the
Plan shall apply only to persons in the employ of the Company on or after the Effective Date. The rights and benefits, if any, of persons who were employed by the Company prior to the Effective Date, but who are not employed on or after the
Effective Date, shall be determined in accordance with the provisions of the Prior Plan in effect on the date their employment terminated. 
  

  
 ARTICLE 2

  
 DEFINITIONS 
  
 The following words and phrases when used herein shall have the meanings set
forth below, unless a different meaning is plainly required by the context: 
  
 2.1 ACCOUNT BALANCE. The fair market value of an Account as of a Valuation Date. 
  
 2.2 ACCOUNTING DATE. The last day of each Plan Year. 
  
 2.3 ACCOUNTS. The accounts established
and maintained under the Plan for a Participant are sometimes referred to collectively as Accounts. 
  
 2.4 ACTUAL DEFERRAL PERCENTAGE. The average of the ratios (expressed as a percentage)
of the Elective Deferral Contribution made on behalf of each Participant for the Plan Year to the Participant’s Compensation. Actual Deferral Percentages shall be calculated to the nearest one hundredth of a percent. The Actual Deferral
Percentage of any Participant who is a Highly Compensated Employee for the Plan Year and who is eligible to have contributions allocated to the Participant’s account under two or more arrangements described in section 401(k) of the Code that
are maintained by the Company or any other employer required to be aggregated with the Company under sections 414(b), (c), (m) or (o) of the Code, shall be determined as if such elective deferrals were made under a single arrangement. 
  
 2.5 ALLOCABLE INCOME. The
allocable income (or loss) for a Plan Year shall be the amount determined by multiplying the income for the Plan Year allocable to Elective Deferral Accounts, Matching Accounts, or Employee Contribution Accounts of a Participant, whichever is
applicable, by a fraction. The numerator of the fraction shall be the amount of excess Elective Deferral Contributions, Matching Contributions, or Employee Contributions, whichever is applicable, made on behalf of the Participant for the Plan Year.
The denominator of the fraction shall be the total Elective Deferral Account Balance, Matching Account Balance, or Employee Contribution Account Balance, whichever is applicable, of the Participant as of the last Valuation Date of the preceding Plan
Year, plus Elective Deferral Contributions, Matching Contributions, or Employee Contributions, whichever is applicable, made during the Plan Year. Allocable Income shall not include allocable income (or loss) for the gap period between the end of
the Plan Year and the date of distribution. 
  
 2.6
AVERAGE CONTRIBUTION PERCENTAGE. The average (expressed as a percentage) of the “contribution percentages” of all Participants who are Highly Compensated Employees to the
contribution percentages of all Participants who are not Highly Compensated Employees. For the purposes of this Section 2.6, “contribution percentages” shall mean the ratio (expressed as a percentage) of the Matching Contributions and
Employee Contributions made on behalf of each Participant for the Plan Year to the Participant’s Compensation. Contribution percentages shall be calculated to the nearest one hundredth of a percent. The contribution percentage of any
Participant who is a Highly Compensated 

  

 -2- 

 
Employee for the Plan Year and who is eligible to have contributions allocated to the Participant’s accounts under two or more arrangements subject to
the rules of section 401(m) of the Code that are maintained by the Company or any employer required to be aggregated with the Company under sections 414(b), (c), (m) or (o) of the Code, shall be determined as if such contributions were made under a
single arrangement. 
  
 2.7
BENEFICIARY. The person or entity entitled pursuant to Articles 7 and 9 to receive a Benefit payable hereunder upon or after a Participant’s death. 
  
 2.8 BENEFIT. The Account Balances of a Participant’s Accounts which are
distributable to the Participant or the Participant’s Beneficiary as provided in Article 7. 
  
 2.9 BENEFITS COMMITTEE OR COMMITTEE. The person or persons designated by
the Board of Directors of Commonwealth Industries, Inc. pursuant to Article 10 as the Benefits Committee. 
  
 2.10 BENEFITTING. A Participant is treated as benefitting under the Plan for any Plan Year in which the Participant
received or is deemed to receive an allocation in accordance with Treas. Reg. § 1.410(b)-3(a). 
  
 2.11 BOARD OF DIRECTORS. The Board of Directors (or other managing body) of each
Company or, where the reference is to a single Board of Directors, the Board of Directors of the Sponsoring Company. 
  
 2.12 BREAK IN SERVICE. A 12-consecutive month Period of Severance, beginning on the
Employee’s Severance from Service date. In the case of an individual who is absent from Service for maternity or paternity reasons, the 12-consecutive month period beginning on the first anniversary of the first date of such absence shall not
constitute a Break in Service. An absence from Service for maternity or paternity reasons means an absence (1) by reason of the pregnancy of the individual, (2) by reason of the birth of a child of the individual, (3) by reason of the placement of a
child with the individual in connection with the adoption of such child, or (4) for purposes of caring for such child for a period beginning immediately following such birth or placement. 
  
 2.13 CODE. The Internal Revenue Code of 1986, as it has been and may be amended from
time to time. Reference to any section of the Code shall include any provision successor thereto. 
  
 2.14 COLLECTIVE BARGAINING AGREEMENT. The collective bargaining contract(s) in force
and effect between the Collective Bargaining Unit and the Company which provides for payments to be made to this Plan, together with any modifications or amendments thereto or extensions thereof. 
  
 2.15 COLLECTIVE BARGAINING
UNIT. United Steelworkers of America Local #7325. 
  
 2.16 COMPANY. The Sponsoring Company and each Related Company which adopts the Plan pursuant to Section 15.1. The term Company shall also include any successor employer to the
Company, 

  

 -3- 

 
whether by merger, purchase of assets or otherwise which adopts the Plan. When used with reference to an Employee or Participant, the term shall mean the
Company employing the Employee or Participant. 
  
 2.17
COMPENSATION. 
  
 (a) General Definition. The base salary or wages for services rendered which are paid by the Company to or for an Employee for a Plan Year which are subject to withholding for federal income tax purposes, plus the amount
deferred by such Employee pursuant to an election made under Section 3.6, under a cafeteria plan maintained by the Company intended to comply with section 125 of the Code or, effective January 1, 2001, under a salary reduction fringe benefit
transportation arrangement maintained by the Company and intended to comply with section 132(f)(4) of the Code. Compensation shall also include overtime, shift differential, rotating shift premium, cost of living adjustments, jury duty, witness pay,
bereavement pay, vacation pay and gainsharing pay. Compensation shall exclude supplemental unemployment benefits, compensation in lieu of vacation time, and any payments for education allowance, Supplemental Contributions and Matching Contributions.
Compensation shall be taken into account only while an Employee is a Participant in the Plan. Compensation shall include only that Compensation which is actually paid to the Participant during the Plan Year. 
  
 (b) Limitation. Compensation shall not include
amounts in excess of $160,000, or such larger amount as may be determined by the Secretary of Treasury pursuant to section 401(a)(17)(B) of the Code. 
  
 (c) Exception to Compensation Definition. Effective January 1, 2001, for purposes of compliance with certain
nondiscrimination tests set forth in sections 401(k), 401(m) and 410(b) of the Code, the Company may use a broader definition of compensation than the definition given under Section 2.17(a), so long as such broader definition of compensation
satisfies the requirements of section 414(s) of the Code and related regulations. 
  
 2.18 CONTRIBUTIONS. Matching Contributions, Employee Contributions, Rollover Contributions, Elective Deferral Contributions, and Supplemental Contributions are sometimes referred
to herein collectively as Contributions. 
  
 2.19
DIRECT ROLLOVER. A payment by the Plan to the Eligible Retirement Plan specified by the Distributee. 
  
 2.20 DIRECTED ACCOUNT. The separate Account established and maintained on behalf of a Participant
pursuant to Section 12.8. 
  
 2.21 DISABILITY
OR DISABLED. A Participant’s incapacity to engage in any substantial gainful activity because of a medically determinable physical or mental impairment which can be expected to result in death,
or to be of long, continued and indefinite duration. Such determination of Disability shall be made by the Benefits Committee with the advice of competent medical authority. All Participants in similar circumstances will be treated alike.

  

 -4- 

 2.22 DISTRIBUTEE. A Distributee includes a Participant, a
Participant’s spouse, surviving spouse or former spouse who is the alternate payee under a Qualified Domestic Relations Order. 
  
 2.23 EFFECTIVE DATE. The effective date of the amendment and restatement of the Prior Plan, which is
January 1, 1997, except as otherwise specifically provided herein. The term shall also mean the effective date of the Joinder Agreement of a Company which adopts the Plan. 
  
 2.24 ELECTIVE DEFERRAL. The amount of a Participant’s Compensation
for a Plan Year which is deferred pursuant to an election under Section 3.6. 
  
 2.25 ELECTIVE DEFERRAL ACCOUNT. The separate Account established and maintained on behalf of a Participant to reflect the Participant’s interest
in the Trust Fund attributable to Elective Deferral Contributions on the Participant’s behalf. 
  
 2.26 ELECTIVE DEFERRAL CONTRIBUTIONS. The contributions of the Company to the Trust
Fund pursuant to Section 4.1(a). 
  
 2.27
ELIGIBLE RETIREMENT PLAN. An individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity
plan described in section 403(a) of the Code, or a qualified plan described in section 401(a) of the Code, that accepts the Distributee’s Eligible Rollover Distribution. However, in the case of an Eligible Rollover Distribution to the surviving
spouse, an Eligible Retirement Plan is an individual retirement account or individual retirement annuity. 
  
 2.28 ELIGIBLE ROLLOVER DISTRIBUTION. A distribution of all or any portion of the
Account Balance of the Distributee, except that an Eligible Rollover Distribution does not include: 
  
 (a) a distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made
for the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee’s designated Beneficiary, or for a specified period of ten years or more; 
  
 (b) a distribution to the extent such
distribution is required under section 401(a)(9) of the Code; 
  
 (c) the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); 
  
 (d) effective for distributions made after
December 31, 1998, a distribution which is a hardship distribution as defined in section 401(k)(2)(B)(i)(IV) of the Code; or 
  
 (e) a distribution that is includable in gross income which, when combined with all other such distributions to the
Distributee during the Plan Year, is reasonably expected to total less than $200. 
  

 -5- 

 2.29 EMPLOYEE. Any person who is a member of the Collective
Bargaining Unit and is classified as an hourly-paid employee, provided, the term Employee shall not include (a) any other person whose employment becomes the subject matter of a collective bargaining agreement between employee representatives and
the Company unless such collective bargaining agreement expressly provides that such person is eligible for participation in the Plan, (b) any person who is a Leased Employee, (c) any person, whether or not deemed a common-law employee, who is not a
Leased Employee but who provides services to the Company pursuant to an agreement between the Company and any other person whether for services of a year or more or for periods of less than one year, or (d) any person classified by the Company as an
independent contractor, whether or not deemed a common-law employee. 
  
 2.30 EMPLOYEE CONTRIBUTION ACCOUNT. The separate Account established and maintained on behalf of a Participant to reflect the Participant’s interest in the Trust Fund
attributable to Employee Contributions. 
  
 2.31
EMPLOYEE CONTRIBUTIONS. The Contributions of a Participant made on an after-tax basis pursuant to Section 3.7. 
  

2.32 ENTRY DATE. 
  
 (a) The Effective Date or the date immediately thereafter when an Employee who has fulfilled
the eligibility requirements commences participation in the Plan. Any Employee who has satisfied the maximum eligibility requirements permissible under ERISA, shall be eligible to commence participation in this Plan no later than the earlier of (1)
or (2) below, as applicable, provided that the Employee has not experienced a Severance from Service: 
  
 (1) The first day of the first Plan Year beginning after the date on which the Employee satisfied such requirements; or 

 
 (2) The date six months after the date on which
the Employee satisfied such requirements. 
  
 (b) Return to Service. If an Employee is not in the active service of the Company as of the Employee’s initial Entry Date, such Employee’s subsequent Entry Date shall be the date the Employee returns to the active
Service of the Company, provided the Employee still meets the eligibility requirements. If an Employee does not enroll as a Participant as of the Employee’s initial Entry Date, the Employee’s subsequent Entry Date shall be the applicable
Entry Date as specified above when the Employee actually enrolls as a Participant. 
  
 2.33 ERISA. The Employee Retirement Income Security Act of 1974, as it has been and may be amended from time to time. Reference to any section of ERISA shall include any provision successor thereto. 

 

 -6- 

 2.34 5% OWNER. Any person who owns (or is considered as owning
within the meaning of section 318 of the Code) more than 5% of the outstanding stock of the Company or stock possessing more than 5% of the total combined voting power of all stock of the Company; or, if the Company is not a corporation, any person
who owns more than 5% of the capital or profits interest in the Company. 
  
 2.35 FORFEITURES. The portion of a Participant’s Matching Account which is subject to forfeiture pursuant to Section 7.6 by reason of the Participant’s Severance from
Service, and any other Forfeitures provided for herein. 
  
 2.36 HIGHLY COMPENSATED EMPLOYEE. 
  
 (a) General Definition. Any Employee who (1) during the Plan Year or the preceding Plan Year was at any time a 5% Owner or
(2) during the preceding Plan Year, received compensation in excess of $80,000 (as adjusted pursuant to sections 414(q) and 415(d) of the Code) and was also in the top-paid group of employees for such preceding Plan Year. For purposes of this
Section 2.36, “compensation” shall include compensation from the Company and any employer required to be aggregated with the Company under section 414(b), (c), (m), or (o) of the Code. The term Highly Compensated Employees includes highly
compensated active employees and highly compensated former employees. 
  
 (b) Highly Compensated Former Employee. Any Employee who (1) separated from service with the Company, or is deemed to have separated from service, prior to the Plan Year, (2) performs no service for the
Company during the Plan Year, and (3) was a Highly Compensated Employee during either the Plan Year in which such separation from service occurred or in any Plan Year ending on or after the Employee’s 55th birthday. 
  
 (c) Inclusion in Top Paid Group. For purposes
of Section 2.36(a), an Employee shall be considered a member of the “top paid group” for any year if such Employee is in the group consisting of the top 20% of the employees of the Company when ranked on the basis of compensation paid
during the year, pursuant to section 414(q)(3) of the Code. 
  
 (d) Application of Section 414(q). For purposes of determining whether an Employee is a Highly Compensated Employee, the provisions of section 414(q) of the Code, and the regulations thereunder, shall
apply. 
  
 2.37 JOINDER
AGREEMENT. The form prescribed by the Benefits Committee pursuant to which a Related Company adopts the Plan, as provided in Section 15.1. 
  
 2.38 LEASED EMPLOYEE. Any person who provides services to the Company
(other than an employee of the Company) if such services are provided pursuant to an agreement between the Company and any other person, such person has performed such services for the Company (or for the Company and related persons determined in
accordance with section 414(n)(6) of the Code) on a substantially full-time basis for a period of at least one year, and such services are performed under the primary direction or 

  

 -7- 

 
control of the Company. Provided, that such Leased Employee shall be treated as an Employee solely for purposes of demonstrating compliance with certain
nondiscrimination tests set forth in section 414(n)(3) of the Code, unless: (a) such Leased Employee is covered under a money purchase pension plan providing a non-integrated employer contribution rate of at least 10% of compensation (as defined in
section 415(c)(3) of the Code, but including amounts contributed pursuant to a salary reduction agreement which are excludable from the employee’s gross income under sections 125, 402(e)(3), 402(h) or 403(b) of the Code), immediate
participation and full and immediate vesting, and (b) not more than 20% of the Company’s employees who are not Highly Compensated Employees are Leased Employees. In determining whether an individual is a Leased Employee, the provisions of
section 414(n) of the Code, and the regulations thereunder, shall apply. 
  
 2.39 MATCHING ACCOUNT. The separate Account established and maintained on behalf of a Participant to reflect the Participant’s interest in the Trust Fund
attributable to Matching Contributions made on the Participant’s behalf. 
  
 2.40 MATCHING CONTRIBUTIONS. Profit Sharing Contributions and Performance Sharing Contributions. 
  
 2.41 NORMAL RETIREMENT AGE. A Participant’s
65th birthday. For an Employee who becomes a Participant after the Employee’s 65th birthday, the Normal Retirement Age shall be the day the Employee becomes a Participant. 
  
 2.42 PARTICIPANT. An eligible Employee
who becomes a Participant. The term shall also include, where appropriate, a former Participant whose service with the Company has terminated when such person is entitled to a Benefit hereunder. 
  
 2.43 PERFORMANCE SHARING
CONTRIBUTION. Contributions of the Company to the Trust Fund pursuant to Section 4.1(e). 
  
 2.44 PERIOD OF SERVICE OR SERVICE. Active employment with
the Company, a predecessor organization of the Company (if the Company maintains the plan of such predecessor organization), or a Related Company. Absence from employment on account of a leave of absence authorized by the Company pursuant to the
Company’s leave policy will be counted as Service provided that such leave of absence is of not more than two years’ duration. Absence from employment on account of active duty with the Armed Forces of the United States will be counted as
Service. If the Employee does not return to active employment with the Company, his or her Service will be deemed to have ceased on the date a representative of the Benefits Committee receives notice that such Employee will not return to the active
Service of the Company. The Company’s leave policy shall be applied in a uniform and nondiscriminatory manner to all Participants under similar circumstances. An Employee’s Period of Service continues until his or her Severance from
Service date. Notwithstanding the foregoing, an Employee’s Period of Service shall include any Period of Severance, beginning on the Employee’s Severance from Service date, which is less than 12 months. Upon re-employment by the Company
after an Employee’s Break in Service, all 

  

 -8- 

 
Service, including Service prior to the Break in Service, shall be aggregated when determining the nonforfeitable percentage of the Employee’s Matching
Account pursuant to Section 7.5(b). 
  
 2.45
PERIOD OF SEVERANCE. A period of time commencing on the Participant’s Severance from Service date and ending on the date such individual is re-employed by the Company. 

 
 2.46 PLAN. Effective January 1, 2001,
the Commonwealth Aluminum Lewisport, LLC Hourly 401(k) Plan provided for herein, as it may be amended from time to time. Prior to January 1, 2001, the Commonwealth Aluminum Corporation Performance Sharing Plan for Hourly Employees, as amended from
time to time. 
  
 2.47 PLAN
ADMINISTRATOR OR ADMINISTRATOR. The Sponsoring Company or other person or persons designated by the Board of Directors of the Sponsoring Company as the Plan Administrator. 

 
 2.48 PLAN YEAR. The
consecutive 12-month period beginning on the first day of January in each year and ending on the last day of December. 
  
 2.49 PRIOR PLAN. The profit sharing plan and trust of the Company, as constituted on the day prior to
the Effective Date. 
  
 2.50 PROFIT
SHARING CONTRIBUTION. Contributions of the Company to the Trust Fund pursuant to Section 4.1(d). 
  
 2.51 QUALIFIED DOMESTIC RELATIONS ORDER. A “qualified domestic
relations order,” as defined in section 414(p) of the Code and section 206(d)(3) of ERISA. 
  
 2.52 RELATED COMPANY. Either (a) a member of a “controlled group of corporations” (as
defined in section 1563(a) of the Code, determined without regard to sections 1563(a)(4) and (e)(3)(C) of the Code, except that, for the purposes of Section 6.5, the phrase “more than 50%” shall be substituted for the phrase “at least
80%” in section 1563(a)(1) of the Code) of which the Company is a member, (b) an unincorporated trade or business which is under common control with the Company, as determined under section 414(c) of the Code, (c) a member of an
“affiliated service group” (as defined under section 414(m) of the Code) of which the Company is a member, (d) any entity required to be aggregated with the Company under section 414(o) of the Code or (e) any other subsidiary or affiliate
of the Company designated by the Board of Directors to be a Related Company. 
  
 2.53 REQUIRED BEGINNING DATE. Effective for Participants who attain age 70-1/2 before January 1, 1996, the first day of April following the calendar
year in which the Participant attains age 70-1/2. Effective January 1, 1997, the Required Beginning Date for Participants, including Participants who attain age 70-1/2 during the 1996 calendar year, shall be determined as follows: 
  
 (a) Non-5% Owners. The first day of April
following the calendar year in which the later of separation from service or age 70-1/2 occurs. 
  

 -9- 

 (b) 5% Owners. For Participants who are 5% Owners at any time during the
Plan Year ending with or within the calendar year in which such Participant attains age 70-1/2, the first day of April following the calendar year in which the Participant attains age 70-1/2. 
  
 (c) Special Election. For Participants who
attain age 70-1/2 on or after January 1, 1996 but prior to January 1, 1999, the Participant’s Required Beginning Date may be as set forth above for Participants who attain age 70-1/2 before January 1, 1996, pursuant to a written election by the
Participant which is filed with the Plan Administrator or its representative. 
  
 2.54 RETURN ON INVESTMENT. The Division Profit expressed as a percentage of the average Long Term Funds Employed in the year. 
  
 2.55 ROLLOVER ACCOUNT.
The separate Account established and maintained on behalf of an Employee to reflect the Employee’s interest in the Trust Fund attributable to the Employee’s Rollover Contributions. 
  
 2.56 ROLLOVER
CONTRIBUTION. A rollover amount or rollover contribution described in sections 402(c)(4) or 408(d)(3) of the Code, or any other amount held on behalf of an Employee in a trust (other than the Trust Fund) which is
part of a plan which is qualified under sections 401(a) and 501(a) of the Code and permits amounts to be transferred to the Trust Fund. Each Rollover Contribution of an Employee shall be maintained in a separate Rollover Account. 
  
 2.57 SEVERANCE FROM
SERVICE. The earliest of (a), (b) or (c) below. 
  
 (a) The date the Employee terminates employment by reason of a quit, discharge, permanent Disability, retirement or death.

  
 (b) The second anniversary of
the first day the Employee is absent from Service for maternity or paternity reasons, as described in Section 2.12. 
  
 (c) The first anniversary of the first day the Employee separates from Service for any other reason such as an authorized
leave of absence, sickness, vacation, etc., after which the Employee does not return to work. 
  
 2.58 SPONSORING COMPANY. Effective January 1, 2001, Commonwealth Aluminum Lewisport, LLC, a Delaware limited liability company, and any successor employer, whether
by merger, purchase of assets or otherwise, who adopts the Plan. Prior to January 1, 2001, the Sponsoring Company was the Commonwealth Aluminum Corporation, a Delaware corporation. 
  
 2.59 SUPPLEMENTAL CONTRIBUTIONS. The contributions of the Company to the
Trust Fund pursuant to Section 4.1(b). A Participant may not elect to receive Supplemental Contributions in cash in lieu of contributions to the Plan, nor shall Supplemental Contributions be available as hardship withdrawals under Section 8.3.

  

 -10- 

 2.60 TRUST. The Trust Agreement effective January 1, 1994, by and
between Commonwealth Industries, Inc. (then known as Commonwealth Aluminum Corporation) and CG Trust Company, and as it may be further amended from time to time. 
  
 2.61 TRUST FUND. All cash, securities or other property held by the
Trustee in the Trust on the date hereof and received hereafter by the Trustee as Contributions and all securities or other property purchased or acquired therewith or therefrom, together with any increase, accretion or accumulation thereon, and
income therefrom, less distributions, payments or expenditures therefrom as authorized herein, which is held in the Trust Fund pursuant to the Plan. 
  
 2.62 TRUSTEE. CG Trust Company and any successor Trustee or Trustees designated in the manner set forth in the Trust,
which accepts the Trust Fund. 
  
 2.63 VALUATION
DATE. Each business day during the Plan Year. 
  
 2.64 YEAR OF SERVICE. A Period of Service equaling 12 months. Service counted in computing Years of Service need not be continuous or consecutive, and
all fractional periods of employment shall be aggregated. 
  

 -11- 

  
 ARTICLE 3

  
 ELIGIBILITY FOR
PARTICIPATION 
  
 3.1 DATE
EMPLOYEES BECOME PARTICIPANTS. 
  
 (a) Participants Eligible on Effective Date. Each Employee who was a Participant in the Prior Plan on the day before the
Effective Date shall continue to be a Participant in the Plan if the Employee is still employed by the Company on the Effective Date. 
  
 (b) Other Employees. Each other Employee shall be eligible to become a Participant as of the date when the Employee first
meets the requirements set forth in both (1) and (2) below. 
  
 (1) the Company classifies the Employee as an hourly-paid employee; and 
  
 (2) the Employee attains membership in the Collective Bargaining Unit. 
  
 3.2 ENROLLMENT AND
PARTICIPATION. Each Employee eligible under Section 3.1 may enroll as of the Employee’s Entry Date by completing and delivering to the Administrator an enrollment form and, if applicable, the Elective Deferral
election for which Section 3.6 provides. The Employee will then become a Participant as of the Employee’s Entry Date. 
  
 3.3 ELIGIBILITY OF REHIRED EMPLOYEES. If the Company rehires an Employee
after a Period of Severance, the following provisions shall apply when determining the Employee’s eligibility again to participate in the Plan: 
  
 (a) If the Employee had met the eligibility requirement(s) specified in Section 3.1 prior to the Employee’s Period of
Severance, the Employee shall become a Participant in the Plan as of the date of re-employment, after completing the applicable form(s), in accordance with Section 3.2. 
  
 (b) If the Employee had not met the eligibility requirement(s) specified in Section 3.1 prior
to the Employee’s Period of Severance, the Employee shall become a Participant in the Plan on the first Entry Date following the Employee’s fulfillment of such eligibility requirement(s). 
  
 3.4 ELIGIBLE CLASS. In
the event a Participant becomes ineligible to participate because the Participant is no longer a member of a class of Employees eligible under Section 3.1, such Employee shall participate immediately upon the Employee’s return to an eligible
class of Employees. In the event that an Employee who is not a member of an eligible class of Employees becomes a member of the eligible class, such Employee shall participate immediately. 
  
 3.5 NOTICE OF
PARTICIPATION. Each Employee shall be notified when such Employee becomes eligible to be a Participant and at such time shall be furnished with (a) a summary of the Plan, (b) 

  

 -12- 

 
a form on which to elect Elective Deferrals, (c) a form for designating a Beneficiary and (d) a form on which to select the investment of Accounts under
Section 12.8. Notwithstanding the foregoing, any election, designation or selection described as being made on a form in this Section 3.5 may be provided by electronic means pursuant to instructions provided by the Benefits Committee or its
representative. 
  
 3.6 ELECTIVE
DEFERRAL ELECTION. 
  
 (a) Amount of Elective Deferral Election. Each Participant shall be entitled to elect, in a whole percentage, that a portion of the Participant’s Compensation earned after such election be deferred
and contributed by the Company to the Plan as a Elective Deferral Contribution, as set forth in Section 4.1(a). A Participant’s Elective Deferral Contribution for a Plan Year shall not exceed the lesser of (1) $9,500 (or such larger amount as
may be determined by the Secretary of Treasury pursuant to sections 402(g) and 415(d) of the Code) or (2) 15% of the Participant’s Compensation for the Plan Year. Effective before January 1, 1998, “14%” shall be substituted for
“15%” in the preceding sentence. 
  
 (b) Manner of Making Elective Deferral Election Upon First Becoming Eligible. An election under this Section 3.6 shall be made at the time and in the manner determined by the Benefits Committee. A Participant who first becomes
eligible to participate pursuant to Section 3.1 shall make an Elective Deferral election on or before the Entry Date on which the Employee becomes a Participant, as determined by the Benefits Committee or its representative. Such election shall
continue in effect until modified or terminated. 
  
 (c) Manner of Initiating, Modifying, Recommencing or Terminating Elective Deferral Election After Becoming Eligible. A Participant may initiate, modify, recommence or terminate an Elective Deferral election twice during the
Plan Year, on January 1 and July 1, by filing a written notice thereof with the Plan Administrator or its representative. Such notice shall be effective, and the Elective Deferral election shall be initiated, modified, recommenced or terminated on
the date specified in such notice or as soon as administratively practicable after the notice, which date must be at least 15 days after such notice is filed. 
  

(d) Excess Elective Deferral Contributions. Anything in Section 3.6(a) to the contrary notwithstanding, Elective Deferral
Contributions which would require the Company to defer more than $9,500 (or such larger amount as may be determined by the Secretary of Treasury pursuant to sections 402(g) and 415(d) of the Code) on behalf of a Participant in the taxable year of
the Participant shall not be honored and shall be returned to the Participant. In determining whether such Elective Deferral Contributions exceed the limit established under sections 402(g) and 415(d) of the Code as in effect on the first day of the
Participant’s taxable year, the following deferrals shall be taken into account: 
  
 (1) elective deferrals made by a Participant under any other qualified cash or deferred arrangement (as defined in section 401(k)
of the Code), 
  
 (2) any employer
contribution to a simplified employee pension (as defined in section 408(k) of the Code), 
  

 -13- 

 (3) any eligible deferred compensation plan under section 457 of the Code,

  
 (4) any plan described under section
501(c)(18) of the Code, and 
  
 (5) any
employer contribution to an annuity contract described in section 403(b) of the Code under a salary reduction agreement. 
  
 The Allocable Income attributable to excess Elective Deferral Contributions for the taxable year of the Participant shall also be returned to the Participant. Such excess
deferrals shall be returned to the Participant if the Participant notifies the Plan Administrator or its representative in writing no later than the March 1 immediately following the close of the Participant’s taxable year for which the excess
Elective Deferral Contribution was received by the Plan. 
  
 3.7 EMPLOYEE CONTRIBUTIONS. 
  
 (a) Amount of Employee Contributions. Each Participant may elect to make Employee Contributions to the Trust Fund for the
Participant’s Employee Contribution Account in an amount equal to not less than 1% nor more than 15% of the Participant’s Compensation; provided, the aggregate amount of Employee Contributions and Elective Deferral Contributions for a Plan
Year shall not exceed 15% of the Participant’s Compensation for the Plan Year. Effective before January 1, 1998, “14%” shall be substituted for “15%” wherever it occurs in the preceding sentence. 
  
 (b) Manner of Making Employee Contribution Election
Upon First Becoming Eligible. A Participant who first becomes eligible to participate pursuant to Section 3.1 shall make an Employee Contribution election on or before the Entry Date on which the Employee becomes a Participant, as determined
by the Benefits Committee or its representative. Such election shall continue in effect until modified or terminated. 
  
 (c) Manner of Initiating, Modifying or Recommencing Employee Contribution Election After Becoming Eligible. Each Participant
may redesignate a new permissible amount as an Employee Contribution twice each Plan Year, on January 1 and July 1, by notifying the Plan Administrator or its representative 30 days before such date. Such redesignation shall be made as if it were an
original designation and shall be effective as of such date. 
  
 (d) Payment of Employee Contributions. Employee Contributions shall be deducted from the Participant’s Compensation while the Participant has a payable deduction order in effect and shall be paid by
the Company to the Trust Fund not less frequently than weekly. 
  
 (e) Vesting in Employee Contribution Account. A Participant shall at all times have a nonforfeitable interest in the Participant’s Employee Contribution Account. 
  
 (f) Allocations to Employee Contribution
Accounts. No Contributions by the Company or Forfeitures shall be allocated to Employee Contribution Accounts, however, investment 

  

 -14- 

 
earnings (or losses) of the Trust Fund shall be allocated to all Employee Contribution Accounts in the same manner provided for all other Accounts, as set
forth in Section 6.2. 
  
 3.8 SUSPENSION
OF ELECTIVE DEFERRAL CONTRIBUTIONS AND EMPLOYEE CONTRIBUTIONS. The following provisions, set for in (a), (b), (c) and (d),
below, shall apply with respect to the suspension of Elective Deferral Contributions and Employee Contributions. The Participant may elect to reactivate the Participant’s Elective Deferral election or payroll deduction order for Employee
Contributions by filing a written notice thereof with the Plan Administrator or its representative. The Elective Deferral election or payroll deduction order for Employee Contributions, as the case may be, shall be reactivated on January 1 or July 1
following the expiration of the suspension periods described below. 
  
 (a) Elective Suspension. A Participant may elect to suspend the Participant’s Elective Deferral election or payroll deduction order for Employee Contributions by filing a written notice thereof at
any time with the Plan Administrator or its representative. The Elective Deferral election or payroll deduction order, as the case may be, shall be suspended on the date specified in such notice, which date must be at least 15 days after the
Participant files the notice. The notice shall specify the period of time during which the suspension remains in effect. Such period may extend indefinitely. 
  

(b) Suspension for Leave. A Participant who is absent from employment on account of an authorized leave of absence or
military leave shall have his Elective Deferral election and payroll deduction order for Employee Contributions suspended during such leave. Such suspension of Contributions shall be effective on the date the payment of Compensation by the Company
to the Participant ceases, and shall remain in effect until the Company resumes payment of Compensation to the Participant. 
  
 (c) Withdrawal Suspension. A Participant who elects a withdrawal in accordance with Article 8 may have the
Participant’s Elective Deferral election or payroll deduction order for Employee Contributions, as applicable, suspended on the date such election becomes effective. Such suspension shall remain in effect for the number of months specified
therein. 
  
 (d) Non-Elective
Suspension. A Participant who ceases to meet the eligibility requirements as specified in Section 3.1, but who remains in the employ of the Company, shall have such Participant’s Elective Deferral election and payroll deduction order of
Employee Contributions, as the case may be, suspended, effective as of the date the Participant ceases to meet the eligibility requirements. Such suspension shall remain in effect until the Participant again meets such eligibility requirements.

  
 3.9 PROVISIONS OF
PLAN BINDING ON PARTICIPANTS. Upon becoming a Participant, a Participant shall be bound then and thereafter by the provisions of the election forms and designation of
Beneficiary form filed by the Participant and by the terms of the Plan, including all amendments thereto. 
  

 -15- 

 3.10 CHANGE IN EMPLOYMENT
STATUS. 
  
 (a) Cease Status as an Employee. Any Participant whose employment becomes the subject matter of a collective bargaining agreement between employee representatives and the Company shall not continue to be a Participant in the
Plan unless such collective bargaining agreement expressly provides that such person is eligible for continued participation in the Plan. If such collective bargaining agreement does not provide for continued participation, then during the period
the Participant does not meet the definition of an Employee, but is still employed by the Company or a Related Company, (a) no further Contributions shall be made by or on behalf of the Participant, (b) earnings and losses shall continue to be
allocated to the Participant’s Accounts as provided in Section 6.2, and (c) Years of Service shall continue to be credited to the Participant. If the Participant becomes a participant in another defined contribution 401(k) or other profit
sharing plan sponsored by the Company or a Related Company, the Participant’s Account Balances may be transferred to the other defined contribution plan in a trustee to trustee transfer at the direction of a member of the Benefits Committee as
soon as practicable after participation commence in the other defined contribution plan and the transfer is approved by an appropriate fiduciary of the other defined contribution plan. 
  
 (b) Commence Status as an Employee. In the event a person employed by the Company does not
meet the definition of an Employee, but later meets the definition of an Employee, such person shall immediately become a Participant if that person has met the eligibility requirements of Section 3.1. If such person has not met the eligibility
requirements of Section 3.1, such person shall become a Participant after satisfying the provisions of Section 3.1. In determining Years of Service, such person shall be credited with all Years of Service as an employee, even though such person did
not meet the definition of Employee during some or all of such period. If the Employee formerly participated in another defined contribution 401(k) or other profit sharing plan sponsored by the Company or a Related Company and then commenced
participation in the Plan, upon the direction of an appropriate fiduciary of the other defined contribution plan and approval by a member of the Benefits Committee, the Participant’s account balances under the other defined contribution plan
shall be transferred to the Plan in a trustee to trustee transfer as soon as practicable after the Employee commences participation in the Plan. Effective January 1, 2002, any Participant whose account balances under such other defined contribution
plan are transferred to the Plan must make an Elective Deferral election in accordance with Section 3.6 and an Employee Contribution election in accordance with Section 3.7 before Elective Deferrals and Employee Contributions, as applicable, will be
contributed on behalf of the Participant. 
  
 3.11
CORRECTION OF INADVERTENT ERROR. Anything in the Plan to the contrary notwithstanding, if a Participant is inadvertently excluded from participation in any Plan Year, or
if the Accounts of any Participant are inadvertently credited or debited with an incorrect amount for any Plan Year, the Benefits Committee shall correct such error as soon as is administratively practicable after the discovery of the error. In the
event an error in the Participant’s Account cannot be corrected in any other manner, the Company shall contribute in the Plan Year in which the error is discovered an amount necessary to place the Participant’s Account in the same position
in which it would have been had the error not been made. 
  

 -16- 

  
 ARTICLE 4

  
 ELECTIVE DEFERRAL,
SUPPLEMENTAL, EMPLOYEE, 
 PROFIT SHARING AND
PERFORMANCE SHARING CONTRIBUTIONS 
  
 4.1 AMOUNT OF CONTRIBUTIONS. 
  
 (a) Elective Deferral Contributions. The Company shall make an Elective Deferral Contribution for each Plan Year for each
Participant in the amount of such Participant’s Elective Deferral for such Plan Year. 
  
 (b) Supplemental Contributions. The Company may make Supplemental Contributions to the Elective Deferral Accounts of
Participants, other than Highly Compensated Employees, in an amount necessary to meet the requirements of Section 6.3. A separate accounting of all Supplemental Contributions shall be made. 
  
 (c) Employee Contributions. The Company shall
make an Employee Contribution for each Plan Year for each Participant in accordance with Section 3.7(d) in the amount of such Participant’s election regarding Employee Contributions unless such Employee Contributions are paid directly to the
Trustee by the Participant. 
  
 (d) Profit
Sharing Contribution. The Company shall make a Profit Sharing Contribution, as set forth below, to the account of each Participant who was an Employee at the end of the prior Plan Year and to each Participant who left the Plan during the
prior Plan Year due to retirement, death, Disability or layoff, in an amount equal to a percentage of the first 6% of Compensation of each Participant in such prior Plan Year and reduced by any Performance Sharing Contributions allocated to such
Participant during such prior Plan Year. The applicable percentage for this Section 4.1(d) shall be calculated as follows, based upon the Company’s performance in the prior Plan Year compared with a Return on Investment (“ROI”)
formula: 
  
 (1) If the previous Plan
Year’s ROI is 11.7% or greater, the applicable percentage shall be equal to 50% of the first 6% of the Participant’s Compensation for such prior Plan Year. 
  
 (2) If the previous Plan Year’s ROI is less than 11.7%, the applicable percentage shall be
determined as follows: 
  

			
	 Actual ROI for prior Plan Year
 (rounded to
the nearest 0.1%)

	  	      Profit Sharing Contribution As A
 Percent of the First 6% of Compensation

	 Less than 10%
	  	 25% minus .25% for each 0.1% by
 which ROI is less
than 10%

		
	 10% and greater
	  	 25% plus 1.5% for each 0.1% by
 which ROI exceeds
10%

  

 -17- 

 (e) Performance Sharing Contributions. The Company shall make a Performance
Sharing Contribution to the Account of each Participant who was an Employee at the end of the prior Plan Year and to each Participant who left the Plan during such prior Plan Year due to retirement, death, Disability or layoff, in an amount equal to
a percentage of the basic Elective Deferral Contribution and Employee Contributions made in such prior Plan Year by or on behalf of each such Participant. For these purposes, basic Elective Deferral Contributions and Employee Contributions are those
which, in total, do not exceed 6% of a Participant’s Compensation. The applicable percentage for this Section 4.1(e) shall be calculated as follows, based upon the Company’s performance in the prior Plan Year compared with a ROI formula:

  
 (1) If the previous year’s ROI is
11.7% or greater, the applicable percentage shall be 50% of the basic Elective Deferral Contributions and Employee Contribution made in such prior Plan Year by or on behalf of each Participant. The Performance Sharing Contribution shall not be
greater than 50% or less than 25% of the basic Elective Deferral Contributions and Employee Contributions made by or on behalf of the Participant in the prior Plan Year; or 
  
 (2) If the previous year’s ROI is less than 11.7%, the applicable percentage shall be determined
as follows: 
  

			
	 Actual ROI for Prior Plan Year
 (rounded to
the nearest 0.1%)

	  	 Applicable Percentage

	 Less than 10%
	  	25%
		
	 10% to 11.7%
	  	 25% plus 1.5% for each 0.1% by which
 actual ROI
exceeds 10%

  
 (f) Special Terms. For purposes of Sections 4.1(d) and 4.1(e), above, “Investment” shall be deemed to be “Long Term Funds Employed,” which means the sum of fixed assets, intangible assets, investments and
other deferred assets less deferred liabilities of an operating nature. Long Term Funds Employed does not include non-current assets arising from activities or functions neither the responsibility of nor under the control of the President of
Commonwealth Aluminum Lewisport, LLC (before January 1, 2001 Commonwealth Aluminum Corporation). “Return on Investment” is defined as the “Division Profit (Attributable Earnings)”expressed as a percentage of the average of Long
Term Funds Employed in the year. The term “Division Profits (Attributable Earnings)” means those profit results deemed to be under the responsibility of and under the control of the President of Commonwealth Aluminum Lewisport, LLC (before
January 1, 2001, Commonwealth Aluminum Corporation). Division Profits (Attributable Earnings) do not include earnings from non-current assets, the LIFO provision, Halco equity/dividends, results of bauxite sales, interest expense and taxes. Division
Profits do include a working 

  

 -18- 

 
capital charge, elimination of depreciation from ending inventories, and, as appropriate, a write down to market of inventories on a FIFO basis. 

 
 4.2 WHEN CONTRIBUTIONS
MADE. A Contribution by the Company shall be deemed made on account of a Plan Year if either (a) the Company designates such amount in writing to the Trustee as payment on account of such Plan Year, or (b) the
Company claims such amount as a deduction on its federal income tax return for such Plan Year. 
  
 4.3 LIMITATION ON AMOUNT OF CONTRIBUTIONS. In no event shall the Contributions provided for in Section 4.1 exceed the
maximum amount deductible under section 404(a) of the Code. 
  
 4.4 PAYMENT OF CONTRIBUTIONS TO TRUSTEE. Matching Contributions, and Supplemental Contributions shall be paid to the Trustee not later than the
time prescribed by law for filing the Company’s federal income tax return (including extensions thereof) for the Plan Year for which the Contribution is being made. Elective Deferral Contributions and Employee Contributions shall be paid to the
Trustee on the date such Elective Deferral Contributions and Employee Contributions may first reasonably be segregated from the assets of the Company, but in no case shall such Elective Deferral Contributions and Employee Contributions be paid to
the Trustee later than 90 days from the last day of the payroll period with respect to which such Elective Deferral Contributions and Employee Contributions were made. Notwithstanding anything in the preceding to the contrary, effective February 3,
1997, Elective Deferral Contributions and Employee Contributions shall be paid to the Trustee on the date such Elective Deferral Contributions and Employee Contributions may first reasonably be segregated from the assets of the Company, but in no
case shall such Elective Deferral Contributions and Employee Contributions be paid to the Trustee later than the 15th business day of the month following the month in which such Elective Deferral Contribution and Employee Contribution is received by
the Company or in which such Elective Deferral Contribution and Employee Contribution would otherwise have been payable to the Participant in cash. 
  
 4.5 FORM OF CONTRIBUTIONS. Contributions by the Company shall be made to the
Trustee in cash or kind, or a combination, as may be determined by the Company from time to time. The amount of any Contributions made in kind shall be based on the fair market value of the property at the time the Contributions are made.

  
 4.6 RETURN OF
CONTRIBUTIONS. 
  
 (a) Contributions Made By Mistake of Fact. In the event a Contribution by the Company, or a portion thereof, is made by reason of a mistake of fact, the Company may direct the Trustee to return that Contribution, or the
portion thereof, provided, the amount must be returned within one year after the payment of the Contribution to the Trustee. 
  
 (b) Contributions Conditioned Upon Qualification of Plan. All Contributions by the Company shall be deemed made conditioned
upon initial qualification of the Plan under section 401 of the Code. If the Commissioner of Internal Revenue determines that the Plan does not so qualify, the Company shall direct the Trustee to return to the Company any Matching Contributions and
Supplemental 

  

 -19- 

 
Contributions, and to the Participants any Elective Deferral Contributions, Employee Contributions or Rollover Contributions made for such Plan Year,
provided, the amount must be returned within one year after the denial of qualification of the Plan, but only if the application for qualification is made by the time prescribed by law for filing the Company’s federal income tax return for the
taxable year in which the Plan is adopted, or such later date as the Secretary of Treasury may prescribe. 
  
 (c) Contributions Conditioned Upon Deductibility. All Contributions by the Company shall be deemed made conditioned upon the
deductibility of the Contribution under section 404 of the Code. To the extent such deduction is disallowed, the Company may direct the Trustee to return the disallowed portion (or all, if the entire Contribution is disallowed), provided, the
disallowed amount must be returned within one year after the disallowance of the deduction. 
  
 (d) No Return of Earnings. Except as otherwise provided with respect to the return of Contributions by the Company
conditioned upon the initial qualification of the Plan, (1) no earnings on a Contribution made by the Company shall be returned to the Company and losses on the Contribution shall reduce the amount to be returned, and (2) no return of a Contribution
made by the Company allocated to a Participant’s Accounts shall be made to the extent that the Accounts would be reduced to less than the balance in the Accounts had the Contributions to be returned not been made. 
  
 4.7 PAYMENT OF
EXPENSES OF PLAN. All necessary expenses that may arise in connection with the administration of the Plan, including, but not limited to, the fees of the Trustee and expenses of the
Benefits Committee as provided in Section 10.8, shall be paid by the Company, except as provided in Section 11.8 or in the Trust. To the extent these expenses are not paid by the Company, they shall be paid by the Trustee from the Trust Fund.
Provided, that where the Trustee is a person who receives full-time pay from the Company, such person shall not receive any compensation from the Trust Fund, except for reimbursement of expenses properly and actually incurred. 
  

 -20- 

  
 ARTICLE 5

  
 ROLLOVER CONTRIBUTIONS

  
 5.1 ROLLOVER
CONTRIBUTIONS. 
  
 (a) Request to Make Rollover Contribution. An Employee may make a written request to the Benefits Committee or its representative that the Employee be entitled to transfer to the Trust Fund a Rollover Contribution received by
such Employee, or to which such Employee is entitled. All such requests shall contain information concerning the type of property constituting the Rollover Contribution and a statement, satisfactory to the Benefits Committee, that the property
constitutes a Rollover Contribution. The Benefits Committee, in its sole discretion, shall determine whether or not the Employee shall be entitled to make a Rollover Contribution. 
  
 (b) Payment of Rollover Contribution. In the event the Benefits Committee permits an Employee
to make a Rollover Contribution, such amount shall be transferred by the Employee to the Trustee. 
  
 (c) Vesting in Rollover Account. An Employee shall at all times have a nonforfeitable interest in the Employee’s
Rollover Account. 
  
 (d) Allocations to
Rollover Accounts. No Contributions by the Company or Forfeitures shall be allocated to Rollover Accounts, however, investment earnings (or losses) of the Trust Fund shall be allocated to all Rollover Accounts in the same manner provided for
all Participants, as set forth in Section 6.2. 
  

 -21- 

  
 ARTICLE 6

  
 ACCOUNTS 
  
 6.1 ALLOCATION OF
CONTRIBUTIONS AND FORFEITURES TO ACCOUNTS. 
  
 (a) Elective Deferral Contributions. Elective Deferral Contributions on behalf of a Participant shall be credited to the
Elective Deferral Account of such Participant as soon as administratively practicable following the date such Elective Deferral Contribution was made. 
  
 (b) Matching Contributions. Matching Contributions shall be credited to the Matching Account of each Participant as soon as
administratively practicable following the date for which such Matching Contributions were made. 
  
 (c) Forfeitures. Any Forfeiture allocated to Matching Accounts shall be credited to Participant Accounts in accordance with
the provisions of Section 7.6. 
  
 (d)
Supplemental Contributions. Supplemental Contributions for a Plan Year shall be allocated as of an Accounting Date among Participants who are not Highly Compensated Employees and who made a Elective Deferral election for the Plan Year in the
ratio that each such Participant’s Compensation for the Plan Year bears to the total Compensation of all such Participants for such Plan Year. 
  
 (e) Employee Contributions. Employee Contributions shall be credited to the Employee Contribution Account of each
Participant on behalf of whom such Contributions are made as soon as administratively practicable following the date such Employee Contributions were made. 
  
 (f) Rollover Contributions. Rollover Contributions shall be credited to the Rollover Account of each Participant on behalf
of whom such Contributions are made as soon as administratively practicable following the date such Rollover Contributions were made. 
  
 (g) Correcting a Coverage or Participation Failure. 
  
 (1) If the Plan would fail to satisfy section 410(b) of the Code for a Plan Year because an
insufficient number of non-excludable Employees are Benefitting under the Plan for such Plan Year, the Company may direct that former Employees who would otherwise not have been eligible for an allocation of Contributions by the Company for such
Plan Year in accordance with Section 6.1 be included as Participants who are eligible for an allocation for such Plan Year. If the Company so directs, the former Employees to be included shall be limited to the number necessary to cause the Plan to
satisfy section 410(b) of the Code. 
  

 -22- 

 (2) The selection of former Employees for inclusion shall be as determined by the
Company when such determination becomes necessary from time to time, but shall be in a manner that does not discriminate in favor of Highly Compensated Employees. 
  
 (3) The inclusion of former Employees in the allocation of Contributions by the Company as set forth
in this Section 6.1(g) shall not be deemed the exclusive method for correcting or preventing the Plan’s failure to satisfy section 410(b) of the Code. Provided, any other method shall be applied in a manner that does not discriminate in favor
of Highly Compensated Employees. 
  
 6.2
DETERMINATION OF ACCOUNT BALANCES. The Trustee shall determine the fair market value of the Trust Fund and the Benefits Committee shall determine the Account Balances as
follows: 
  
 (a) Crediting of
Contributions. As of each Accounting Date there shall be added to each Elective Deferral Account the Supplemental Contributions for such Account since the preceding Accounting Date, provided the Supplemental Contributions shall be allocated
to Elective Deferral Accounts as of the Accounting Date of the Plan Year for which such Supplemental Contribution is made. As of each Valuation Date there shall be added to each Elective Deferral Account, Matching Account, and Rollover Account the
Contributions for such Account since the preceding Valuation Date. 
  
 (b) Reductions for Benefits and Withdrawals. Each Account shall be reduced by the amount of Benefits distributed and withdrawals made from such Account since the preceding Valuation Date. 
  
 (c) Directed Account. The earnings (or losses)
of each Directed Account shall be determined separately and credited to the Directed Account, and all the other adjustments provided herein shall be made to such Directed Account. 
  
 (d) Good Faith Valuation Binding. In determining the value of the Trust Fund and the Accounts,
the Trustee (or other person or entity designated by the Benefits Committee) and the Benefits Committee shall exercise their best judgment, and all such determinations of value (in the absence of bad faith) shall be binding upon all Participants and
Beneficiaries. 
  
 6.3 LIMITATIONS
ON ELECTIVE DEFERRAL CONTRIBUTIONS. 
  
 (a) Actual Deferral Percentage Test. The Actual Deferral Percentage for Highly Compensated Employees shall not exceed the
greater of (1) 1.25 times the Actual Deferral Percentage for the current Plan Year of all other Participants, or (2) the lesser of two percentage points over the Actual Deferral Percentage for the current Plan Year of all other Participants or 2.0
times the Actual Deferral Percentage for the current Plan Year of all other Participants. For purposes of determining whether the Plan satisfies the Actual Deferral Percentage Test, if the Plan satisfies the requirements of sections 401(k),
401(a)(4), or 410(b) of the Code only if aggregated with one or more other plans with the same plan year and using the same Actual Deferral Percentage testing method, or if one or more plans with the same plan year and using the same Actual Deferral
Percentage testing method satisfy such Code sections only if 

  

 -23- 

 
aggregated with this Plan, then this Section 6.3(a) shall be applied by determining the actual deferral percentages of Participants as if all such plans were
a single plan. 
  
 (b) Limitation of
Elective Deferral Contributions. The Company shall by the end of a Plan Year, in a nondiscriminatory fashion and upon notifying the Highly Compensated Employees, limit the Elective Deferral Contributions of Highly Compensated Employees to
the extent necessary to ensure compliance with either of the tests stated in the immediately preceding Subsection 6.3(a). 
  
 (c) Correction of Actual Deferral Percentage Excess. If the Actual Deferral Percentage test is not met for a Plan Year after
all contributions for the Plan Year have been made, the Company shall determine the amount of Actual Deferral Percentage excess with respect to Highly Compensated Employees. Solely to determine the aggregate amount to be distributed, as described
below, and not the amount to be distributed to any individual, the Company shall make this determination in the following manner. First, the Actual Deferral Percentage of the Highly Compensated Employee with the highest Actual Deferral Percentage
shall be reduced to the extent necessary to (1) enable the Plan to satisfy the Actual Deferral Percentage test or (2) cause such employee’s Actual Deferral Percentage to equal the Actual Deferral Percentage of the Highly Compensated Employee
with the next highest Actual Deferral Percentage. Second, this process is repeated until the Actual Deferral Percentage test is satisfied. The aggregate amount of Actual Deferral Percentage excess thus determined shall be distributed by the end of
the Plan Year following the Plan Year for which such Contributions are made. Such aggregate amount of Actual Deferral Percentage excess shall be distributed first, to the Highly Compensated Employees with the highest dollar amounts of Elective
Deferral Contributions, pro rata and including Allocable Income thereon, in an amount equal to the lesser of (A) the aggregate amount of excess contributions for the Plan Year determined according to the manner described above or (B) the amount
necessary to cause the amount of such Employees’ Elective Deferral Contributions to equal the amount of the Elective Deferral Contributions of the Highly Compensated Employees with the next highest dollar amount of Elective Deferral
Contributions. This process is repeated until the aggregate amount distributed under this Section 6.3(c) equals the amount of the Actual Deferral Percentage excess as determined according to the manner described above. The amount of excess
contributions that may be distributed with respect to a Highly Compensated Employee for a Plan Year shall be reduced by the amount of excess deferrals previously distributed to the Highly Compensated Employee for the Highly Compensated
Employee’s taxable year ending with or within such Plan Year, and the amount of excess deferrals that may be distributed with respect to a Highly Compensated Employee for a taxable year is reduced by any excess contributions previously
distributed to the Highly Compensated Employee for the Plan Year beginning with or within the Highly Compensated Employee’s taxable year. Notwithstanding anything in this Section 6.3(c) to the contrary, the Company may, in its discretion, make
a Supplemental Contribution on behalf of Participants other than Highly Compensated Employees to the extent necessary to ensure compliance with the Actual Deferral Percentage test stated in Section 6.3(a). Each eligible Participant shall be 100%
vested in the Participant’s Elective Deferral Account, including any Supplemental Contributions credited thereto, and such Supplemental Contributions shall also be subject to the same distribution restrictions as apply to a Participant’s
Elective Deferral Contributions. 
  

 -24- 

 (d) Recognition of Elective Deferrals. A Participant’s Elective
Deferral election shall be recognized only to the extent that the Elective Deferral Contribution does not exceed the amount permitted under this Section 6.3. A Participant’s Elective Deferral Contributions which are returned as a result of the
application of this Section 6.3 for a Plan Year shall not be taken into account in determining the amount of Matching Contributions to be made for the Participant’s benefit for the Plan Year. To the extent Matching Contributions have already
been made with respect to Elective Deferral Contributions at the time the Elective Deferral Contributions are determined to be excess contributions, such Matching Contributions attributable to Elective Deferral Contributions that are distributed to
the Participant as excess contributions shall be distributed to the Participant at the same time as the Elective Deferral Contributions are returned; provided, that to the extent the Participant does not have a vested interest in such Matching
Contributions, the Participant shall forfeit such Matching Contributions. 
  
 6.4 LIMITATIONS ON MATCHING AND EMPLOYEE CONTRIBUTIONS. 
  
 (a) Average Contribution Percentage Test. In
no event may the Average Contribution Percentage for eligible Participants who are Highly Compensated Employees exceed the greater of (1) 1.25 times the Average Contribution Percentage for the current Plan Year of all other eligible Participants, or
(2) the lesser of two percentage points over the Average Contribution Percentage for the current Plan Year of all other eligible Participants and 2.0 times the Average Contribution Percentage for the current Plan Year of all other eligible
Participants. In the event the Plan satisfies the requirements of section 401(m), 401(a)(4), or 410(b) of the Code only if aggregated with one or more plans with the same plan year and using the same Average Contribution Percentage testing method,
or if one or more other plans with the same plan year and using the same Average Contribution Percentage testing method satisfy such Code sections only if aggregated with this Plan, then this Section 6.4 shall be applied by determining the average
contribution percentages as if all such plans were a single plan. Notwithstanding the above, to the extent the Plan provides for Contributions to be made under a Collective Bargaining Agreement between the Collective Bargaining Unit and the Company,
the Plan automatically passes the Average Contribution Percentage test. 
  
 (b) Correction of Average Contribution Percentage Excess. If the Average Contribution Percentage test is not met for a Plan Year after all contributions for the Plan Year have been made, the excess of
the aggregate amount of the Matching Contributions and Employee Contributions (and any Supplemental Contributions or Elective Deferral Contributions taken into account in computing the Average Contribution Percentages) actually made on behalf of
Highly Compensated Employees for the Plan Year over the maximum amount of such contributions permitted under section 401(m)(2)(A) of the Code shall be considered to be excess aggregate contributions. The Company shall determine the amount of excess
aggregate contributions. Solely to determine the aggregate amount to be distributed and not the amount to be distributed to any individual, the Company shall make this determination in the following manner. First the contribution percentage of the
Highly Compensated Employee with the highest Average Contribution Percentage shall be reduced to the extent necessary to (1) enable the Plan to satisfy the Average Contribution Percentage test or (2) cause such employee’s Average Contribution
Percentage to equal the Average Contribution Percentage of the Highly Compensated Employee with the next highest Average Contribution Percentage. Second, this process is repeated until the Average Contribution 

  

 -25- 

 
Percentage test is satisfied. The aggregate amount of reductions determined in this manner shall be distributed, first, to the Highly Compensated Employees
with the highest dollar amounts of Matching Contributions and Employee Contributions (and any Supplemental Contributions or Elective Deferral Contributions taken into account in computing the Average Contribution Percentages), pro rata and including
any Allocable Income thereon, in an amount equal to the lesser of (A) the total amount of excess aggregate contributions for the Plan Year or (B) the amount necessary to cause such Employees’ Matching Contributions and Employee Contributions
(and any Supplemental Contributions or Elective Deferral Contributions taken into account in computing the Average Contribution Percentages) to equal the amount of the Matching Contributions and Employee Contributions (and any Supplemental
Contributions or Elective Deferral Contributions taken into account in computing the Average Contribution Percentages) of the Highly Compensated Employees with the next highest dollar amount of Matching Contributions and Employee Contributions (and
any Supplemental Contributions or Elective Deferral Contributions taken into account in computing the Average Contribution Percentages). This process is repeated until the aggregate amount thus distributed equals the amount of excess aggregate
contributions. Distribution of excess aggregate contributions will be made after the close of the Plan Year to which the contributions relate, but in any case will be made prior to the close of the Plan Year following the Plan Year for which the
contributions were made. Notwithstanding the foregoing, to the extent a Participant would receive a distribution of excess aggregate contributions which relate to Matching Contributions in which the Participant does not have a vested interest, such
portion of the excess aggregate contributions shall be forfeited. 
  
 (c) Recognition of Employee Contributions. A Participant’s Employee Contribution election shall be recognized only to the extent that the Employee Contribution does not exceed the amount permitted
under this Section 6.4. A Participant’s Employee Contributions which are returned as a result of the application of this Section 6.4 for a Plan Year shall not be taken into account in determining the amount of Matching Contributions to be made
for the Participant’s benefit for the Plan Year. To the extent Matching Contributions have already been made with respect to Employee Contributions at the time the Employee Contributions are determined to be excess contributions, such Matching
Contributions attributable to Employee Contributions that are distributed to the Participant as excess contributions shall be distributed to the Participant at the same time as the Employee Contributions are returned; provided, that to the extent
the Participant does not have a vested interest in such Matching Contributions, the Participant shall forfeit such Matching Contributions. 
  
 (d) Alternate Use Limitation. If the sum of the Actual Deferral Percentage and Average Contribution Percentage of Highly
Compensated Employees exceeds the sum of (1) 1.25 times the greater of (A) the Actual Deferral Percentage of Participants other than the Highly Compensated Employees for the current Plan Year or (B) the Average Contribution Percentage of
Participants other than Highly Compensated Employees under the Plan for the current Plan Year, and (2) the lesser of (A) 2.0 times or (B) two percentage points plus the lesser of the Actual Deferral Percentage or Average Contribution Percentage of
Participants other than Highly Compensated Employees for the current Plan Year, the Average Contribution Percentage of the Highly Compensated Employees will be reduced (beginning with the Highly Compensated Employees whose Average Contribution
Percentage is the highest) so that the limit is not exceeded. “Lesser” is substituted for “greater” in (1), above, and “greater” is 

  

 -26- 

 
substituted for “lesser” after “two percentage points plus the” in (2), above, if such substitutions would result in a larger amount. If
the Company has elected to use the current year testing method, then, in calculating the amount under this Section 6.4(d) for a particular Plan Year, the Non-Highly Compensated Employees’ Actual Deferral Percentage and Average Contribution
Percentage for the Plan Year, instead of for the prior Plan Year, is used. The amount by which the Average Contribution Percentage of each such Highly Compensated Employee is reduced shall be treated as an amount returned pursuant to (b), above.
Anything in the preceding to the contrary notwithstanding, no impermissible multiple use shall result if the Actual Deferral Percentage and Average Contribution Percentage of the Highly Compensated Employees does not exceed 1.25 times the Actual
Deferral Percentage plus the Average Contribution Percentage of all other Participants. 
  
 6.5 LIMITATIONS ON ANNUAL ADDITIONS. 
  
 (a) Definition of Annual Additions. Any provisions in the Plan to the contrary notwithstanding, the “annual
addition” to any Participant’s Matching Account, Employee Contribution Account and Elective Deferral Account shall not exceed the lesser of (1) $30,000 (or such larger amount as may be determined by the Secretary of Treasury pursuant to
section 415(d) of the Code) or (2) 25% of the Participant’s Compensation. The term “annual addition” shall mean the sum of: 
  
 (1) the Participant’s share of Matching Contributions, Supplemental Contributions, and Elective Deferral Contributions for the
Plan Year, 
  
 (2) all Forfeitures
allocated to a Participant’s Account, 
  
 (3) any Employee Contributions for the Plan Year, 
  
 (4) any amounts allocated after March 31, 1984 on behalf of the Participant to an “individual medical account” (as defined in section 415(l)(2) of the Code) which is part of a pension or annuity plan
maintained by the Company, and treated as annual additions to a defined contribution plan, and amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, attributable to post-retirement
medical benefits allocated to the separate account of the Participant if the Participant is a “key employee” (as defined in section 419A(d)(3) of the Code), under a “welfare benefit fund” (as defined in section 419(e) of the
Code) maintained by the Company, and 
  
 (5)
allocations under a simplified employee pension. 
  
 (b) Excess Annual Additions. If as the result of the allocation of Forfeitures, a reasonable error in estimating a Participant’s Compensation, a reasonable error in determining the amount of elective deferrals under
section 402(g)(3) of the Code, or under other limited facts and circumstances which the Commissioner of Internal Revenue finds justify this method of allocation, the annual addition for a Participant would exceed the amount provided for in Section
6.5(a), the excess amount shall be withheld or taken from a Participant’s Accounts in the following order: 
  
 (1) the Employee Contributions and earnings thereon, if any, included in the annual addition shall, to the extent necessary, be
returned to the Participant; then 
  

 -27- 

 (2) the Participant’s share of Matching Contributions shall be reduced to the
extent necessary; then 
  
 (3) the
Elective Deferral Contributions and Supplemental Contributions and earnings (or net of losses) thereon, if any, included in the annual addition shall, to the extent necessary, be returned to the Participant; 
  
 (4) provided, Elective Deferral Contributions and
Supplemental Contributions and earnings (or net of losses) thereon, if any, included in the annual addition may be returned to the Participant prior to the return of the Participant’s share of Matching Contributions at the election of the
Benefits Committee. If such an election is made, the Benefits Committee must apply it uniformly to all Participants in a limitation year. 
  
 (c) Disposition of Excessive Annual Additions. Any amounts withheld or taken from a Participant’s Matching Account
shall be reallocated to the Matching Accounts, whichever is applicable, of all other Participants as of such Accounting Date in the same ratio that Matching Contributions for such Plan Year were allocated to the Matching Accounts of such other
Participants. If, after making the reallocation provided by the immediately preceding sentence, there is any amount remaining which cannot be reallocated because of the limitations on annual additions, such amount shall be maintained in a suspense
account and be allocated in the succeeding Plan Year as though such amount were a Matching Contribution in such Plan Year. In the event of termination of the Plan while such a suspense account is in existence, the amount in such suspense account
shall revert to the Company to the extent it may not be allocated to any Matching Account. In the event that such a suspense account is in existence for a particularly limitation year, it will not share in the allocation of investment gains or
losses. All amounts in such suspense account must be allocated and reallocated to Participant’s Accounts before any Matching Contribution or Employee Contribution which would constitute annual additions may be made to the Plan for that
limitation year. 
  
 (d) Allocation of
Annual Additions When Multiple Plans. If the Company maintains one or more other “defined contribution plans” or “defined benefit plans” (as defined in section 414(i) and (j) of the Code, respectively), the amount of
annual additions which may be allocated on behalf of each Participant under this Plan and under other plans shall not exceed the maximum permissible amount. For the purpose of determining the maximum permissible amount, the annual benefit under a
defined benefit plan shall be reduced to the maximum extent necessary; the annual additions under any other defined contribution plan of the Company shall be reduced to the maximum extent necessary, commencing with any profit sharing plan, next any
profit sharing plan containing a cash or deferred arrangement and then any money purchase pension plan; and, finally, the annual additions under this Plan shall be reduced to the maximum extent necessary. 
  

 -28- 

 (e) No Contributions Causing Allocation to Suspense Account.
Notwithstanding the provisions of this Section 6.5, the Company shall not make a Contribution in an amount that would cause any amount thereof to be allocated to a suspense account as of the date the Contribution is allocated. 
  
 (f) Separate Definition of Compensation. For
the purposes of this Section 6.5, the term “Compensation” shall mean a Participant’s earned income, wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in
cash) for personal services actually rendered in the course of employment with the Company maintaining the Plan to the extent that the amounts are includable in gross income (including, but not limited to commissions paid salesmen, compensation for
services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan (as defined in Treas. Reg. § 1.62-2(c))), but shall
exclude the following: 
  
 (1) Company
contributions to a plan of deferred compensation which are not includable in the employee’s or employer’s contributions under a simplified employee pension plan to the extent such contributions are deductible by the employee, or any
distributions from a plan of deferred compensation; 
  
 (2) amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by the employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture;

  
 (3) amounts realized from the sale,
exchange or disposition of stock acquired under a qualified stock option; and 
  
 (4) other amounts which received special tax benefits, or contributions made by the Company (whether or not under a salary reduction agreement) towards the purchase of an annuity contract described in section
403(b) of the Code (whether or not the contributions are actually excludable from the gross income of the employee). 
  
 For purposes of applying the limitation of this Section 6.5, Compensation for a “limitation year” is the Compensation actually paid or made available during
such year. Effective for Plan limitation years beginning on or after January 1, 1998, the term “Compensation” under this Section 6.5 shall also include any elective deferral (as defined in section 402(g)(3) of the Code), any amount which
is contributed or deferred by the Company at the election of the Employee by reason of sections 125 or 457 of the Code, and effective January 1, 2001, by reason of section 132(f)(4) of the Code. 
  
 (g) Reduction of Annual Additions to Conform to
Section 415. Anything in this Section 6.5 to the contrary notwithstanding, the otherwise permissible annual additions for any Participant under this Plan may be further reduced to the extent necessary, as determined by the Benefits
Committee, to conform to section 415 of the Code, which imposes additional limitations on the benefits payable to Participants who also may be participating in a defined benefit plan maintained by the Company. If an individual is a Participant at
any time in both a defined benefit plan and a defined contribution plan 

  

 -29- 

 
maintained by the Company, the sum of the Participant’s defined benefit plan fraction and defined contribution plan fraction for any Plan Year may not
exceed 1.0. For purposes of this Section 6.5(g), such terms shall have the following meaning: 
  
 (1) The defined benefit plan fraction is a fraction, the numerator of which is the sum of the Participant’s projected annual
benefit under all defined benefit plans (whether or not terminated) maintained by the Company, and the denominator of which is the lesser of (A) 1.25 multiplied by the dollar limitation under section 415(b)(1)(A) of the Code for such Plan Year, or
(B) 1.4 multiplied by the Participant’s average compensation for the three consecutive Plan Years that produce the highest average. Provided, if the Participant was a participant as of the first day of the “limitation year” beginning
after December 31, 1986, in one or more defined benefit plans maintained by the Company which were in existence on May 6, 1986, the denominator of this fraction will not be less than 125 percent of the sum of the annual benefits under such plans
which the Participant had accrued as of the end of the last “limitation year” beginning before January 1, 1987, disregarding any changes in the terms and conditions of the plan after May 5, 1986. The preceding sentence applies only if the
defined benefit plans individually and in the aggregate satisfied the requirements of section 415 of the Code for all “limitation years” beginning before January 1, 1987. The projected annual benefit of a Participant is the
Participant’s normal retirement benefit computed under the Company’s defined benefit plan, assuming that the Participant continues in the employ of the Company until the Participant’s Normal Retirement Age under such plan (or current
age, if later), and the Participant’s compensation is the compensation, as defined in such plan, and the Social Security benefit for the Plan Year remain constant until the Participant’s Normal Retirement Age (or current age, if later).

  
 (2) The defined contribution plan
fraction is a fraction, the numerator of which is the sum of the annual additions to the Participant’s accounts under all defined contribution plans maintained by the Company (whether or not terminated) for the current and all prior Plan Years,
(including the annual additions attributable to all welfare benefit funds, as defined in section 419(e) of the Code, and individual medical accounts, as defined in section 415(l)(2) of the Code, maintained by the Company), and the denominator of
which is the sum of the lesser of the following amounts determined for such Plan Year and for all prior Plan Years during which the Participant was employed by the Company: (A) 1.25 multiplied by the dollar limitation under section 415(c)(1)(A) of
the Code, for such Plan Years; or (B) 1.4 multiplied by the amount which may be taken into account under section 415(c)(1)(B) of the Code for such Plan Years. Provided, if the employee was a participant as of the first day of the “limitation
year” beginning after December 31, 1986, in one or more defined contribution plans maintained by the Company which were in existence on May 6, 1986, the numerator of this fraction will be adjusted if the sum of this fraction and the defined
benefit plan fraction would otherwise exceed 1.0 under the terms of this Plan. Under the adjustment, an amount equal to the product of (1) the excess of the sum of the fractions over 1.0 times (2) the denominator of this fraction, will be
permanently subtracted from the numerator of this fraction. The adjustment is calculated using the fractions as they would be computed as of the end of the last “limitation year” beginning before January 1, 1987, and disregarding any
changes in the terms and conditions of the plan made after May 5, 1986, but using 

  

 -30- 

 
the limitations under section 415 of the Code applicable to the first “limitation year” beginning on or after January 1, 1987. 
  
 (h) Further Reduction in Annual Additions. If
after reducing the annual additions to a Participant’s Accounts, as provided above, the sum of the defined benefit plan fraction and the defined contribution plan fraction still exceed 1.0, the numerator of the defined contribution plan
fraction shall be reduced so that the sum of both fractions shall not exceed 1.0 in any “limitation year” for such Participant. 
  
 (i) Elimination of Certain Limitations. Effective for Plan limitation years beginning on or after January 1, 2000, the
additional limitations imposed by section 415(e) of the Code, as described above, shall no longer apply to the Plan with respect to all Employees participating in the Plan whose Period of Service includes Service after January 1, 2000. In the case
of a Plan Participant whose Benefit under the Plan is subject to the limitations imposed by section 415(e) of the Code prior to its repeal and whose Benefit under the Plan is adjusted to take into account the repeal of section 415(e) of the Code
effective January 1, 2000, such adjustment shall be taken into account in accordance with the rules of Treas. Regs. §1.401(a)(4)-2(c)(ii) for the Plan Year for which such adjustment is made. 
  
 6.6 RESPONSIBILITY FOR
ACCOUNTS. All Accounts shall be established, and records concerning all Accounts shall be maintained, by the Company, or some other person or entity designated by the Company. 
  
 6.7 NOTICE TO PARTICIPANTS
OF ACCOUNT BALANCES. As soon as practicable after each Accounting Date the Benefits Committee or its representative shall give each Participant written notice of the Account Balance of
the Participant’s Accounts as of such Accounting Date. 
  

 -31- 

  
 ARTICLE 7

  
 BENEFITS 
  
 7.1 NORMAL RETIREMENT.
When a Participant retires at or after the Participant’s Normal Retirement Age, the Benefits for such Participant shall equal the Participant’s Account Balances determined after retirement and, if applicable, as soon as practicable
following receipt of the Participant’s distribution request. 
  
 7.2 RETIREMENT AFTER NORMAL RETIREMENT AGE. A Participant who remains in the employ of the Company after attaining Normal Retirement Age shall
continue to be a Participant in the Plan until the date of actual retirement, at which time the Participant’s Benefit shall equal the Participant’s Account Balances determined after retirement and, if applicable, as soon as practicable
following receipt of the Participant’s distribution request. 
  
 7.3 DEATH. The Benefit distributable to the Participant’s Beneficiary shall equal the Participant’s Account Balances determined after the Participant’s death and, if applicable, as soon as
practicable following receipt of the Beneficiary’s distribution request. 
  
 7.4 DISABILITY. If and when the Benefits Committee shall find a Participant to be Disabled while still employed by the Company, then the Participant’s Accounts shall be 100%
nonforfeitable. The Participant’s Benefit shall equal the Participant’s Account Balances as of the Valuation Date coincident with or immediately following the date the Benefits Committee determines the Participant became Disabled;
provided, if the Participant is receiving a deferred distribution, the Participant’s Benefit shall be determined as soon as practicable following receipt of the Participant’s distribution request. 
  
 7.5 SEVERANCE FROM
SERVICE. In the event of the Severance from Service of a Participant, and at all times other than those set out in Sections 7.1 through 7.4, the Participant’s Benefit shall equal the sum of the following:

  
 (a) Nonforfeitable Accounts.
The Account Balances of the Participant’s Employee Contribution Account, Rollover Account and Elective Deferral Account, if applicable. 
  
 (b) Nonforfeitable Percentage of Other Accounts. The nonforfeitable percentage of the Participant’s Matching Account,
determined as follows: 
  

						
	 Nonforfeitable Percentage of
 Matching
Account Balance

	  	Years of Service

	 	 	 
	 Less than 5
	  	0	%	 	 
	 5 or more
	  	100	%	 	 

  

 -32- 

 (c) Valuation of Account Balances. The Account Balances of a Participant
who is entitled to a Benefit upon Severance from Service shall be determined after Severance from Service; provided, if the Participant is receiving a deferred distribution, the Participant’s Benefit shall be determined as soon as practicable
following receipt of the Participant’s distribution request. 
  
 7.6 FORFEITURES. 
  
 (a) Time Forfeitures Occur. Any portion of a Participant’s Matching Account in which the Participant does not have a nonforfeitable interest, upon Severance from Service, shall constitute a
Forfeiture at the time the nonforfeitable portion of the Participant’s Matching Account Balance is distributed, provided, if a Participant has no nonforfeitable interest in the Participant’s Matching Account upon Severance from Service,
such Participant shall be deemed to have received a distribution of zero and the Forfeiture will occur at the time of the Participant’s Severance from Service. If a Participant dies after Severance from Service and if the Benefits Committee or
its representative has notice thereof, then any forfeitable portion of the Participant’s Company or Matching Account shall be forfeited. 
  
 (b) Application of Forfeitures. Forfeitures occurring during a Plan Year shall first be applied under Section 7.6(c) to the
restoration of Forfeitures and then shall be used to reduce the amount of the Matching Contributions by the Company for the Plan Year in which the Forfeiture occurs or to pay expenses of the Plan. 
  
 (c) Restorable Forfeiture. If a Participant
who received a Benefit pursuant to Section 7.5 because of Severance from Service again becomes a Participant in the Plan, and the amount of the Participant’s Matching Account in which the Participant did not have a nonforfeitable interest was
forfeited in accordance with Section 7.6(a), the Company shall then make a Contribution (or Forfeitures of other Participants shall be applied for such Participant) (“Restorable Forfeiture”) for such Participant rehired before incurring
five consecutive one-year Breaks in Service. 
  
 7.7
TIME OF DISTRIBUTION OF BENEFITS. 
  
 (a) Retired, Disabled or Deceased Participant. Benefits payable to a Participant who retires at or after Normal Retirement
Age, or who becomes Disabled and Benefits payable to a Beneficiary because of the Participant’s death, shall be distributed, or distribution shall commence, as soon as practicable following a Participant’s actual retirement, Disability or
death, subject to the provisions of Section 7.8. 
  
 (b) Terminated Participant. Benefits payable to a Participant who incurs a Severance from Service shall be distributed, or distribution shall commence, as soon as practicable following a Participant’s Severance from
Service, subject to the provisions of Section 7.8. 
  
 (c) Date Benefit Payments Commence. Unless the Participant elects otherwise, in no event shall the payment of Benefits to a Participant begin later than the 60th day after the Accounting Date of the Plan Year in which the
latest of the following events occur: 
  
 (1)
The Participant’s Normal Retirement Age or age 65, if earlier. 
  

 -33- 

 (2) The Participant terminates the Participant’s service with the Company.

  
 Notwithstanding the above provisions of this Section 7.7, the failure of a
Participant to consent to a distribution while a Benefit is immediately distributable shall be deemed to be an election to defer commencement of payment of any Benefit sufficient to satisfy the above. Provided, however, notwithstanding the above
provisions of this Section 7.7, Benefits shall commence not later than the Participant’s Required Beginning Date. 
  
 (d) Payments to Alternate Payees. Anything contained in the provisions of Sections 7.7(a) through 7.7(c), to the contrary
notwithstanding, benefits payable to an alternate payee pursuant to a Qualified Domestic Relations Order may be paid prior to the Participant’s death, Disability, Severance from Service or retirement. 
  
 7.8 DISTRIBUTIONS OF
BENEFITS. The following provisions shall apply to distributions from the Plan: 
  
 (a) Form of Distribution of Benefits. 
  
 (1) A Participant’s Benefits shall be paid in the form of a single sum in cash. Benefits in
excess of $5,000 (at the time of distribution) shall not be immediately distributed without the consent of the Participant. Effective before January 1, 2002, “$3,500 (at the time of the distribution or at the time of any prior
distribution)” shall be substituted for “$5,000 (at the time of the distribution)”. 
  
 (2) Effective January 1, 2002, if the Participant’s Benefit is to be distributed in required minimum amounts, the Plan will
apply the minimum distribution requirements of section 401(a)(9) of the Code that were proposed in January 2001, notwithstanding any provision of the Plan to the contrary. This amendment shall continue in effect until the end of the last calendar
year beginning before the effective date of final regulations under section 401(a)(9) of the Code or such other date as may be specified in guidance published by the Internal Revenue Service. 
  
 (3) Effective before January 1, 2002, if the minimum
distribution rules apply to a Participant who has reached the Participant’s Required Beginning Date, then the amount to be distributed each Plan Year must be at least an amount equal to the quotient obtained by dividing the Participant’s
Account Balance by the Participant’s life expectancy or the joint and last survivor expectancy of the Participant and the Participant’s Beneficiary. Such life expectancies shall be computed as of the first day of the Plan Year by the use
of the return multiples contained in regulations under section 72 of the Code. For purposes of this computation, the Participant’s life expectancy shall be recalculated unless the Participant elects otherwise. Recalculation of life expectancy
shall not be more frequently than annually. The life expectancy of a Beneficiary who is not the Participant’s spouse may not be recalculated. If the Participant’s spouse is not the 

  

 -34- 

 
Beneficiary, the method of distribution selected shall assure that at least 50 percent of the present value of the Participant’s Benefit is paid within
the life expectancy of the Participant. The amount distributed each year, commencing with the calendar year in which the Participant attains age 70-1/2, shall not be less than the quotient obtained by dividing the Participant’s Account Balances
by the lesser of (A) the applicable life expectancy of the Participant and the Participant’s Beneficiary, if applicable, or (B) if the Participant’s spouse is not the Beneficiary, the applicable divisor determined from the table set forth
in Proposed Regulations §1.401(a)(9)-2, Q&A4. Subsection (B) of the preceding sentence shall not apply to distributions made after the death of the Participant. 
  
 (4) The minimum distribution required for the calendar year immediately preceding the
Participant’s Required Beginning Date must be made on or before the Participant’s Required Beginning Date. The minimum distribution required for each calendar year thereafter, including the calendar year in which the Participant’s
Required Beginning Date occurs, must be made on or before December 31 of each year. 
  
 (b) Retirement Benefit Cashout. 
  
 (1) Distribution of Benefits of $5,000 or Less. In the event that the present value of a Participant’s Benefit does not exceed
$5,000 (at the time of the distribution) on the date that such Benefit becomes payable, the Retirement Committee shall cause such benefit to be distributed in a single cash sum notwithstanding the election by the Participant under (a), above.
Effective before January 1, 2002, $3,500 (at the time of the distribution or at the time of any prior distribution)” shall be substituted for “$5,000 (at the time of the distribution)” in the preceding sentence. Provided, if a
Participant has begun to receive distributions pursuant to an optional form of benefit under which at least one scheduled periodic distribution is still payable, and if the present value of the Participant’s nonforfeitable accrued Benefit
exceeded $5,000 at the time of the first distribution under that optional form of benefit, then the present value of the Participant’s nonforfeitable accrued Benefit may not be distributed without consent. Effective before January 1, 2002,
“$3,500” shall be substituted for “$5,000” in the preceding sentence. 
  
 (2) Distribution of Benefits in Excess of $5,000. In the event that the present value of a Participant’s Benefit exceeds
$5,000 (at the time of the distribution), such Benefit may be distributed in a single sum only with the written consent of the Participant. The Plan Administrator or its representative shall notify the Participant of the right to defer any
distribution until the Participant’s Benefit is no longer “immediately distributable.” Provided, the consent of the Participant shall not be required for distributions necessary to satisfy section 401(a)(9) or section 415 of the Code.
Effective before January 1, 2002, “$3,500 (at the time of the distribution or at the time of any prior distribution)” shall be substituted for “$5,000 (at the time of the distribution)” in the preceding sentence. Provided, if a
Participant has begun to receive distributions pursuant to an optional form of benefit under which at least one scheduled periodic distribution is still payable, and if the present value of the Participant’s nonforfeitable accrued Benefit
exceeded $5,000 at the time of the first distribution under that optional form of benefit, then the present value of the Participant’s nonforfeitable accrued Benefit may not be distributed without consent. 

  

 -35- 

 
Effective before January 1, 2002, “$3,500” shall be substituted for “$5,000” in the preceding sentence. 
  
 (3) Distribution of Benefits Upon Termination of the
Plan. Upon termination of the Plan, the Participant’s Account Balance(s) under the Plan may, without the written consent of the Participant, be distributed to the Participant. Provided, if the Company or a Related Company maintains another
defined contribution plan (other than an employee stock ownership plan as defined in section 4975(e)(7) of the Code) then the Participant’s Account Balance(s) under the Plan will, without the written consent of the Participant, be transferred
to the other defined contribution plan if the Participant does not consent to an immediate distribution. 
  
 (c) Conflicting Provisions. The provisions of this Section 7.8 shall supersede any conflicting provision of the Plan,
including, without limitation, the provisions of Section 7.7 relating to the time of distribution of Benefits. 
  
 7.9 ROLLOVER ELECTION AND ROLLOVER NOTICE. 
  
 (a) Election to Make Direct Rollover.
Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee’s election under this Section 7.9, a Distributee may elect, at the time and in the manner prescribed by the Benefits Committee, to have any
portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan in a Direct Rollover. 
  
 (b) Recipients to Be Provided With Explanation of Rollovers. Within a reasonable period of time before making any
distribution from the Plan which is an Eligible Rollover Distribution, the recipient shall be provided a written explanation of the provisions under which such distributions will not be subject to federal income tax if transferred to an Eligible
Retirement Plan within 60 days after the date on which the recipient received the distribution. 
  
 7.10 ADDITIONAL DISTRIBUTION REQUIREMENTS FOR ELECTIVE
DEFERRAL AND SUPPLEMENTAL ACCOUNTS. Elective Deferral and Supplemental Accounts, including any Allocable Income thereon, are not distributable to a Participant or a
Participant’s Beneficiary, in accordance with such Participant’s or Beneficiary’s election, earlier than upon Severance from Service, death, or Disability. Such amounts may also be distributed upon any of the following: 
  
 (a) termination of the Plan without the
establishment of another defined contribution plan, other than an employee stock ownership plan (as defined in section 4975(e)(7) of the Code), a simplified employee pension plan (as defined in section 408(k) of the Code) or a SIMPLE IRA plan (as
defined in section 408(p) of the Code); 
  
 (b) only upon a declaration of the Board of Directors with respect to a transaction, the disposition by a corporation to an unrelated corporation of substantially all of the assets (within the meaning of section 409(d)(2) of
the Code) used in a trade or business of such corporation, if such corporation 

  

 -36- 

 
continues to maintain the Plan after the disposition, but only with respect to employees who continue employment with the corporation acquiring such assets;

  
 (c) only upon a declaration of
the Board of Directors with respect to a transaction, the disposition by a corporation to an unrelated entity of such corporation’s interest in a subsidiary (within the meaning of section 409(d)(3) of the Code), if such corporation continues to
maintain the Plan, but only with respect to employees who continue employment with such subsidiary; 
  
 (d) the attainment of age 59-1/2; and 
  
 (e) with respect to a Participant’s Elective Deferral Account, the hardship of the
Participant as described in Section 8.3, provided, that no hardship withdrawal under Section 8.3 shall be allowed with respect to a Participant’s Supplemental Accounts. 
  
 In addition, distributions that are triggered by any of the events enumerated under Sections 7.10(a) through 7.10(c) must be made in a lump
sum. 
  

 -37- 

  
 ARTICLE 8

  
 LOANS AND
WITHDRAWALS 
  
 8.1 LOANS
TO PARTICIPANTS. Upon the application of a Participant, the Benefits Committee or its representative, in its sole discretion and by consistently applying uniform rules and procedures (which are hereby
incorporated by reference), may direct the Trustee to make a loan or loans to such Participant from the Participant’s Elective Deferral Account, Rollover Account and, to the extent vested, Matching Account, upon the following terms and
conditions: 
  
 (a) Definition of
Participant. For purposes of making loans under this Section 8.1, the term Participant shall include only persons who are in the employ of the Company or otherwise are “parties in interest” as defined in section 3(14) of ERISA.

  
 (b) Availability of Loans.
Loans shall be made available to all Participants on a reasonably equivalent basis and shall not be made available to Highly Compensated Employees in an amount greater than the amount made available to other Participants. Notwithstanding the
foregoing, effective January 1, 2002, loans shall not be made available to Participants who are on a leave of absence without pay, a leave of absence on account of short term disability or a leave of absence on account of long term disability.

  
 (c) Limitation on Aggregate Amount of
Loans. The aggregate of the loans to a Participant shall not exceed at any time the lesser of 50% of the amount the Participant would be entitled to under Section 7.5 if the Participant incurred a Severance from Service, or $50,000 reduced
by the excess, if any, of the highest outstanding balance of loans during the one-year period ending on the date before the day the loan is made over the outstanding balances of loans made under Company sponsored qualified plans on the date such
loan is made. For purposes of this limitation, all loans from all plans maintained by the Company or a Related Company are aggregated. 
  
 (d) Investments from Accounts; Interest Rate. All such loans shall be considered investments made from the Accounts of the
Participant to whom the loan is made. Interest shall be charged on such loans at a reasonable rate equal to the prime rate plus 1%. 
  
 (e) Repayment of Loans; Security For Loans. Effective January 1, 2002, all such loans shall be repaid by the Participant by
payroll deduction; provided, additional payments may also be made by the Participant outside of payroll deduction by check delivered directly to the Trustee. Loans shall be repaid when determined by the Benefits Committee or its representative,
provided, under no circumstances shall the term of a loan be longer than five years unless the proceeds of the loan are used to acquire a dwelling unit, which within a reasonable period will be used (determined at the time the loan is made) as a
principal residence of the Participant, in which case the term of such loan shall be determined by the Benefits Committee or its representative. Repayment of all loans shall be in substantially equal payments of principal and interest, made at least
quarterly. The Benefits Committee or its representative 

  

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shall not approve any loan to any Participant from the Plan unless such Participant (1) executes a promissory note for such loan, and (2) secures payment of
principal and interest on such promissory note by an assignment of up to 100% of the Participant’s nonforfeitable interest in the Participant’s Account Balances. Effective January 1, 2002, “50%” shall be substituted for
“100%” in the preceding sentence. 
  
 (f) Suspension of Loan Repayments. Repayment of a loan may be suspended at the discretion of the Benefits Committee or its representative for a period of no more than one year during such time as a Participant is on a leave of
absence, either without pay or at a rate of pay (after income and employment tax withholding) that is less than the amount of the installment payments required under the terms of the loan. However, upon resumption of payments after the leave ends
(or, if earlier, after the first year of the leave), the loan must be reamortized so that the outstanding balance of the loan will be repaid by the latest date permitted under the original repayment schedule for such loan, and the installments due
after the leave ends (or, if earlier, after the first year of the leave) must not be less than those required under the terms of the original loan. Further, loan repayments may also be suspended, and the loan repayment period extended, at the
discretion of the Benefits Committee or its representative as permitted for military service under Section 21.10 of the Plan and section 414(u) of the Code. 
  
 (g) Assignments Deemed Loans. An assignment or pledge of any portion of a Participant’s interest in the Plan, and a
loan, pledge, or assignment with respect to any insurance contract purchased under the Plan, will be treated as a loan under this Section 8.1. 
  
 8.2 ACTIONS UPON DEFAULT. At the direction of the Participant, the Company shall make
periodic deductions from the Participant’s Compensation in order to pay the promissory note as soon as reasonably possible and shall forward all such payments to the Trustee. In the event a Participant defaults in payment of the
Participant’s promissory note, the Trustee shall take such legal action to collect the unpaid portion of the Participant’s promissory note as it deems feasible and, if such action is unsuccessful or not taken, the Trustee shall deduct the
unpaid principal and interest due on the promissory note from the Benefit due the Participant. In the event that the Participant’s Benefit is less than the unpaid principal and interest due on the Participant’s promissory note, the
Participant shall be liable to the Trust for the difference. Notwithstanding the preceding to the contrary, in the event of default, foreclosure on a promissory note and attachment of security shall not occur until a distributable event occurs under
the Plan. In the event a Participant experiences a Severance from Service or otherwise terminates employment prior to repayment of the promissory note, such loan must be repaid prior to or coincident with any distribution of the Participant’s
Account Balance. 
  
 8.3 HARDSHIP
WITHDRAWALS FROM ELECTIVE DEFERRAL AND ROLLOVER ACCOUNTS. 
  
 (a) Reasons for Hardship Withdrawal. The Benefits Committee or its representative may permit a
Participant to make a withdrawal of funds from the Participant’s Elective Deferral Account and, effective January 1, 2001, from the Participant’s Rollover Account which are needed because of (1) medical expenses described in section 213(d)
of the Code incurred by the Participant, the Participant’s spouse or any dependents of the Participant (as defined in section 152 of the Code); (2) costs directly related to the purchase (excluding mortgage payments) of the principal residence

  

 -39- 

 
of the Participant; (3) payments for tuition and related educational expenses for the next 12 months of post-secondary education for the Participant, the
Participant’s spouse, children or dependents; (4) the need to prevent the eviction of the Participant from the Participant’s principal residence or foreclosure on the mortgage of the Participant’s principal residence; (5) death of a
family member; (6) injury, illness or layoff of Participant or Participant’s family member; or (7) under other circumstances as the Commissioner of the Internal Revenue may deem appropriate. For hardship withdrawals on account of Sections (5)
and (6), above, the Participant must show that such distribution is on account of the Participant’s immediate and heavy financial need, in addition to satisfying any other requirements set forth in this Section 8.3. 
  
 (b) Hardship Withdrawal Deemed Necessary. A
distribution will be deemed necessary to satisfy an immediate and heavy financial need if the following requirements are met: 
  
 (1) Limitation on Amount Distributed. The distribution is not in excess of the actual amount of the immediate and heavy financial
need of the Participant, including any amount necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from the distribution pursuant to this Section 8.3. 
  
 (2) Suspension from Making Contributions. Such
Participant shall be suspended for a period of 12 months after the receipt of such hardship distribution from making a Elective Deferral election or any other Employee derived contribution under any other plan maintained by a Company. Such
Participant shall not be allowed to make a Elective Deferral election (for the calendar year following the calendar year of the hardship distribution) in excess of the applicable limit under section 402(g) of the Code for the next taxable year, less
the amount of such Participant’s Elective Deferral Contributions for the taxable year of the hardship distribution. 
  
 (3) All Available Distributions Obtained. The Participant has obtained all distributions possible under the Plan or under any other
plans maintained by the Company. 
  
 (4) All
Available Loans Obtained. The Participant has obtained all loans available under this Plan and all loans under any plans maintained by the Company. 
  
 (c) Request for Hardship Withdrawal. All applications for withdrawals because of hardship shall be in writing on a form
provided by the Benefits Committee and shall contain such information regarding the request as the Benefits Committee may reasonably request. If the Benefits Committee or its representative determines that the withdrawal is justified, it may permit
the Participant to withdraw such amount as the Benefits Committee or its representative, in its sole discretion, determines is necessary to alleviate the hardship, provided, in no event shall any permitted withdrawal exceed the Participant’s
Elective Deferral Contributions (plus income credited on Elective Deferral Contributions as of December 31, 1988), and, effective January 1, 2001, the Participant’s Rollover Account, less prior withdrawals, if any. Any withdrawal made pursuant
to this Section 8.3 shall be made in a manner consistent with Section 7.8. 
  

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 (d) Approval of Hardship Withdrawal. All decisions of the Benefits
Committee or its representative with respect to whether or not a hardship withdrawal is justified or the amount necessary to alleviate the hardship shall be final and conclusive on all persons. 
  
 8.4 WITHDRAWALS FROM EMPLOYEE
CONTRIBUTION ACCOUNTS. A Participant may from time to time, but in no case more than once every 12-consecutive months, on a form furnished by the Benefits Committee, make a withdrawal of all or any
portion of the Account Balance of the Participant’s Employee Contribution Account. If the Participant has effected a loan pursuant to the provisions of Section 8.1, the amount that may be withdrawn hereunder shall be reduced by the outstanding
balance of such loan. Any withdrawal made pursuant to this Section 8.4 shall be made in a manner consistent with Section 7.8. 
  
 8.5 IN-SERVICE WITHDRAWALS AFTER AGE 59-1/2. A Participant who is
an Employee and who has attained age 59-1/2 may withdraw all or a portion of the amount then credited to such Participant’s Elective Deferral Account. In the event that such withdrawal is made, the Participant shall continue to be eligible to
participate in the Plan on the same basis as any other eligible Employee. Any withdrawal made pursuant to this Section 8.5 shall be made in a manner consistent with Section 7.8. 
  

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 ARTICLE 9

  
 DESIGNATION OF
BENEFICIARY 
  
 9.1
DESIGNATION FORM; CHANGE OF DESIGNATION; SURVIVAL OF BENEFICIARY. Each Employee becoming a Participant
hereunder shall designate in writing, in such form and manner as shall be prescribed by the Benefits Committee, one or more Beneficiaries and contingent Beneficiaries of the Benefit which may be payable by reason of such Participant’s death.
Subject to such rules and regulations as the Benefits Committee may promulgate, a Participant may from time to time change such designation of Beneficiary or contingent Beneficiary, provided, no change shall be effective until receipt of the new
designation by the Plan Administrator or its representative. The last effective designation of Beneficiary or contingent Beneficiary shall supersede all prior designations. A designation of Beneficiary shall be effective only if the designated
Beneficiary survives the Participant and any prior designated Beneficiary. Notwithstanding anything in the preceding to the contrary, the spouse of a Participant shall be deemed such Participant’s Beneficiary for purposes of this Article 9 and
such spouse shall be entitled to the Participant’s entire vested Account Balances as of the date of the Participant’s death; provided, that such Participant may designate a Beneficiary other than such spouse if (a) such spouse consent in a
writing witnessed by a Plan representative or acknowledged before a Notary Public and (b) such consent acknowledges the effect of such consent. 
  
 9.2 DISTRIBUTION IF NO BENEFICIARY DESIGNATED. If a
Benefit becomes payable upon the death of a Participant and no Beneficiary has been properly designated, or if the Beneficiary designated shall have predeceased the Participant, the Participant shall be deemed to have designated the following
Beneficiaries (if living at the time of the death of the Participant or designated Beneficiary) in the following order of priority: (a) the spouse of the Participant, (b) the children, including adopted children, of the Participant, in equal shares,
and (c) the estate of the Participant. 
  

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 ARTICLE 10

  
 ORGANIZATION AND
RESPONSIBILITIES 
 OF THE BENEFITS COMMITTEE 

 
 10.1 APPOINTMENT AND
TENURE OF BENEFITS COMMITTEE. The Board of Directors of Commonwealth Industries, Inc. shall appoint three or more persons (or such other number as may be determined from
time to time by the Board of Directors of Commonwealth Industries, Inc.), some or all of whom may be ex officio, to be known as the Benefits Committee or Committee. The Sponsoring Company will notify the Trustee of the names of the members of the
Benefits Committee and of any changes in membership that may take place from time to time. All members of the Benefits Committee shall serve until their resignation or removal by the Board of Directors of Commonwealth Industries, Inc.; provided,
that an ex officio member shall serve until the member’s resignation or removal from the position from the appointment to the Benefits Committee is derived. A member of the Benefits Committee may resign at any time by delivering a written
resignation to the Board of Directors of Commonwealth Industries, Inc. and to the remaining members of the Benefits Committee. Vacancies shall be filled in the same manner as the original appointments. The Board of Directors of Commonwealth
Industries, Inc. may dismiss any member of the Benefits Committee, including an ex officio member, at any time, with or without cause. No compensation shall be paid members of the Benefits Committee from the Trust Fund for their services. If no
Benefits Committee is appointed by the Board of Directors of Commonwealth Industries, Inc., the Sponsoring Company will serve as the Benefits Committee. 
  
 10.2 ORGANIZATION AND DECISIONS OF BENEFITS
COMMITTEE. Every decision and action of the Benefits Committee shall be valid if concurred in by a majority of the members then in office at a meeting or by a unanimous consent in writing (which may include
electronic mail) without a meeting. The Benefits Committee shall select one of its members as chairperson, appoint a secretary (who need not be a member of the Benefits Committee) and any other officers deemed necessary and shall adopt rules
governing its procedures not inconsistent herewith. The Benefits Committee shall keep a permanent record of its meetings and actions. The Benefits Committee may adopt such bylaws and regulations as it deems desirable for the conduct of its affairs.
No member of the Benefits Committee who is also a Participant shall vote or act upon any matter relating solely to the member. The Benefits Committee may authorize one or more of its members to (a) approve benefit payments, loans, and hardship or
other withdrawals, as applicable, (b) serve as the initial reviewer of claims for benefits under the Plan, (c) determine the qualified status of domestic relations orders relating to the Plan, (d) perform other routine acts, and (e) execute any
document on behalf of the Benefits Committee. If such authorization is given, all persons who receive written notification of such authorization shall, until contrary written notice is given to such person, accept and rely upon any document so
executed by such member(s) as representing the action of the Benefits Committee. 
  
 10.3 DUTIES OF BENEFITS COMMITTEE. The Benefits Committee, in addition to the duties otherwise provided for in this Plan, may:

  
 (a) construe and interpret the
Plan and related documents and resolve any ambiguities therein; 
  

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 (b) decide all questions affecting the eligibility of any Employee to
participate herein; 
  
 (c) decide
all questions affecting the amount, manner and time of any Benefit payable hereunder to any Participant or Beneficiary; 
  
 (d) ascertain the persons to whom any death or other Benefit shall be payable under the provisions hereof; 
  
 (e) appoint and remove the Trustee and any
investment managers of the Trust Fund, establish investment guidelines for the Trustee and any investment managers of the Trust Fund, and review the investment performance of the Trustee and investment managers at least once each year; 

 
 (f) authorize and direct all disbursements,
including administrative expenses, by the Trustee from the Trust Fund; 
  
 (g) receive, review and keep on file (as it deems convenient and proper) reports of benefit payments, withdrawals and loans from the Plan and reports of disbursements of expenses from the Plan directed
by the Benefits Committee; 
  
 (h)
receive, review and keep on file (as it deems convenient and proper) reports of the financial condition, and of the receipts and disbursements, of the Trust Fund; 
  
 (i) receive and review any statement of accounts of the Plan made by the record keeper;

  
 (j) upon request, furnish the
Board of Directors or a Company with reports on the administration and funding of the Plan; 
  
 (k) recommend to the Board of Directors of the Sponsoring Company a funding policy and method for carrying out the
objectives of the Plan which is consistent with the requirements of the Plan and applicable law, considering the short and long term financial needs of the Plan; 
  
 (l) in absence of direct information to the contrary, rely upon information provided by a
Participant or Beneficiary or information provided by a Company; 
  
 (m) make final and binding determinations of fact in connection with any questions of fact which may arise under the operation of the Plan; 
  

 -44- 

 (n) make such rules and regulations with reference to the operation of the
Plan as it may deem necessary or advisable, provided, that such rules and regulations shall not be inconsistent with the express terms of the Plan or ERISA; 
  
 (o) prescribe procedures and adopt forms to be used by Participants and Beneficiaries in filing applications for Benefits
and in making elections under the Plan; 
  
 (p) review the denial of claims under Article 18 and make decisions on such review; 
  
 (q) distribute summary plan descriptions, summaries of material modifications and other information to Participants and
affected Beneficiaries about the Plan; 
  
 (r) establish written procedures to determine whether a judgment, decree or order is a Qualified Domestic Relations Order and administer distributions under such judgments, decrees or orders which it determines are Qualified
Domestic Relations Orders pursuant to Section 21.9; and 
  
 (s) make amendments to the Plan as provided under Section 12.3. 
  
 10.4 BENEFITS COMMITTEE DECISIONS FINAL AND
BINDING. The decisions of the Benefits Committee on any matter within its authority shall be made in the sole discretion of the Benefits Committee and shall be final and binding on all parties, including without
limitation, the Company, Participants and Beneficiaries. 
  
 10.5 POWERS AND AUTHORITY OF BENEFITS COMMITTEE. Subject to the limitations of the Plan and related documents (including,
without limitation, any trust agreement or insurance policy or contract) and the rights reserved by the Board of Directors of the Sponsoring Company, the Benefits Committee shall have the authority to control and manage the operation and
administration of the Plan, with all the powers necessary to enable it to carry out its duties properly in this respect, including the limited power to amend the Plan in accordance with the provisions of Section 12.3. 
  
 10.6 BENEFITS COMMITTEE
DIRECTIONS TO TRUSTEE. The Benefits Committee shall direct the Trustee in writing to make distributions from the Trust Fund to Participants, Beneficiaries and alternate payees under
Qualified Domestic Relations Orders who qualify therefor hereunder. Such written direction to the Trustee shall specify the name, Social Security number and address of the Participant or Beneficiary, and the amount and frequency of such payments.
The Trustee may request instructions in writing from the Benefits Committee on other matters and may rely and act thereon. 
  
 10.7 EMPLOYMENT OF COUNSEL, ETC. The Benefits Committee may employ such
counsel, accountants, and other agents as it shall deem necessary or advisable to advise or assist it in the performance of its duties hereunder, and the Benefits Committee may rely upon their respective written opinions or certifications. Such
employment, and the actions taken by any such agents, shall be subject to review and control by the Benefits Committee. Any actions taken by any such agents shall, when within 

  

 -45- 

 
the scope of their employment, be deemed to be actions of the Benefits Committee for all purposes of the Plan. 
  
 10.8 PAYMENT OF EXPENSES
OF BENEFITS COMMITTEE. The reasonable costs and expenses incurred by the Benefits Committee in the performance of its duties hereunder, excluding compensation for services, but
including, without limitation, reasonable fees for legal, accounting and other services rendered, shall be paid by the Trustee from the Trust Fund to the extent not paid by the Company. 
  
 10.9 BENEFITS COMMITTEE AND TRUSTEE TO
BE FURNISHED INFORMATION CONCERNING EMPLOYEES. The Company shall, from time to time, make available to the Benefits Committee such information with respect
to its Employees, their dates of employment, their Compensation and other matters as may be necessary or desirable in connection with the performance by the Benefits Committee of its duties with respect to the Plan. The Benefits Committee shall, in
turn, furnish to the Trustee such information and such rulings and decisions as the Trustee may require or may request in connection with the Trustee’s performance of its duties as Trustee. If the Benefits Committee, within 21 days after being
requested to do so, fails to furnish the Trustee such information, rulings or decisions, then after the expiration of said period, the Trustee may act without such information, ruling or decision or may demand that the Company give it such
information, ruling or decision. 
  

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 ARTICLE 11

  
 THE TRUST
FUND AND TRUSTEE 
  
 11.1 ESTABLISHMENT OF TRUST FUND. The Sponsoring Company has entered into the Trust with the Trustee for the purpose of establishing a trust to invest and
hold the Contributions, and the income and gains thereon, in order to provide the funds which will be used to provide Benefits under the Plan. The Trust Fund shall be received, held in trust, and disbursed by the Trustee in accordance with the
provisions of the Plan and the Trust. 
  
 11.2
NO DIVERSION OF TRUST FUND. No part of the Trust Fund shall be used for, or diverted for purposes other than for, the exclusive benefit of Participants and
their Beneficiaries, or for payment of the expenses of the Plan and Trust. No person shall have any interest in, or right to, the Trust Fund or any part thereof, except as specifically provided for in this Plan or the Trust. 
  
 11.3 REMOVAL OR RESIGNATION
OF TRUSTEE. The Sponsoring Company may remove the Trustee, and the Trustee may resign, at any time upon written notice required by the terms of the Trust and, upon such removal or resignation, the
Sponsoring Company shall designate and appoint a successor Trustee. 
  
 11.4 TRUST PART OF PLAN. The Trust shall be deemed to form a part of the Plan and all rights of Participants or others under this Plan shall be subject to the
provisions of the Trust. 
  
 11.5 TRUSTEE
POWERS. The Trustee shall have the power to hold, invest and reinvest the Trust Funds, all as set forth in the Trust. 
  
 11.6 NO GUARANTEE OF LOSSES IN TRUST
FUND. No Company, the Benefits Committee nor the Trustee guarantees the assets of the Trust Fund from loss or depreciation. 
  
 11.7 PARTICIPANT NOT TO BE FIDUCIARY. A Participant who
elects investment of such Participant’s Directed Account in accordance with Section 11.8, below, shall not be deemed to be a fiduciary by reason of the Participant’s exercise of control over the investment of the Participant’s
Account, and neither the Trustee nor any other person who is otherwise a fiduciary shall be liable for any loss, or by reason of any breach, which results from such Participant’s exercise of control. 
  
 11.8 POWER OF PARTICIPANTS
TO DIRECT INVESTMENT OF ACCOUNTS. 
  
 (a) Election To Invest Accounts. Until such time as the Benefits Committee shall determine otherwise, Participants shall
direct the investment of their Accounts, and such Accounts shall be placed in a Directed Account in the name of each Participant. The Plan is intended to be an “ERISA section 404(c) plan” with respect to such a Directed Account. The
Benefits Committee shall be the fiduciary identified to furnish the information required by the regulations under section 404(c) of ERISA. 

  

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A Participant’s direction of investment of the Participant’s Accounts shall be in writing on a form prescribed by the Benefits Committee. Such
investment direction shall remain in effect until changed by the Participant pursuant to a subsequent allocation given in accordance with the procedure established by the Benefits Committee. A Participant may change the investment directions by
delivery of another form to the Plan Administrator or its representative, and such change in investment direction shall be effective in accordance with the procedures as to frequency or manner of giving investment directions established by the
Benefits Committee, subject to the limitations imposed under (c), below, of this Section 11.8. The Benefits Committee shall forward a copy of any investment direction form of a Participant to the Trustee. If a Participant fails or refuses to
complete an investment direction form, the Participant’s Accounts shall be invested in the Trust Fund at the discretion of the Benefits Committee. 
  
 (b) Expenses of Directed Accounts. Unusual and extraordinary expenses of Directed Accounts, such as brokerage fees,
commissions, additional Trustee fees, etc., shall be charged against the Directed Account. 
  
 (c) Investment Options For Directed Accounts. Participants shall direct the investment of their Directed Account in
investment alternatives specified by the Benefits Committee, so long as the designated percentage for each investment alternative is a whole number, and the sum of the percentages allocated is 100%. Such investment alternatives shall be selected by
the Benefits Committee in its discretion in such a way as to provide Participants with a broad range of investment alternatives as described in the regulations under section 404(c) of ERISA. As it may deem necessary or desirable, the Benefits
Committee also may modify an investment alternative as well as the frequency or the manner of giving investment directions. Subject to the foregoing, the Benefits Committee shall specify the investment alternatives available to Participants such
that Participants may at all times choose from at least three investment alternatives (1) each of which is diversified, (2) each of which has materially different risk and return characteristics, (3) which in the aggregate enable the Participant by
choosing among them to achieve a portfolio with aggregate risk and return characteristics at any point within the range normally appropriate for the Participant, and (4) each of which when combined with investments in the three alternatives tends to
minimize through diversification the overall risk of the investments in a Participant’s Directed Accounts. Notwithstanding any other restriction as to the frequency of giving investment directions imposed by the Benefits Committee, Participants
shall be able to give investment directions at least once in each calendar quarter with respect to the three investment alternatives described above. With respect to any other investment alternative, any restriction on the frequency of giving
investment directions shall comply with the requirements of the regulations under section 404(c) of ERISA. 
  
 (d) Investment Direction Continues After Death or Other Severance from Service. If a Participant (or the Participant’s
Beneficiary) does not receive a distribution of Benefits under the Plan once the Participant (or Beneficiary) is eligible to receive such distribution, the last investment direction given by the Participant (or Beneficiary) will remain in effect
until changed by the Participant (or Beneficiary) pursuant to this Section 12.8. 
  

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 (e) Investment Directions May Be Transmitted Electronically. A Participant
(or a Beneficiary in the case of the Participant’s death) may give investment direction by electronic means pursuant to instructions provided by the Benefits Committee or its representative. 
  

 -49- 

  
 ARTICLE 12

  
 AMENDMENTS TO
THE PLAN 
  
 12.1
RIGHT GENERALLY TO MAKE AMENDMENTS. The Plan may be amended, modified or altered, in whole or in part, at any time and from time to time. The procedure for
amending, modifying or altering the Plan shall be for the Board of Directors or its delegate to approve or ratify the amendment, modification or alteration and for a person or persons authorized by the Board of Directors or its delegate to duly
execute an instrument of writing setting forth the amendment, modification or alteration, provided, that the duties, powers and liabilities of the Trustee shall not thereby be substantially modified without the written consent of the Trustee and any
Benefit which has actually accrued and become payable hereunder shall not be affected thereby, except as provided in Section 12.2. No amendment, modification or alteration shall be made which shall (a) cause or authorize any part of the Trust Fund
to revert or be refunded to the Company, or (b) decrease any Participant’s Account Balances or (c) eliminate an optional form of distribution. In the event an amendment shall alter the nonforfeitable schedule under Section 7.5, the
nonforfeitable percentage of Participants who have been credited with three or more Years of Service shall not be less than the greater of their nonforfeitable percentage under the prior nonforfeitable schedule or the amended nonforfeitable
schedule. Should the Sponsoring Company, at any time, not be in existence as a corporation, the Plan may be amended, modified or altered by action of a majority of the members of the Benefits Committee then surviving as such. 
  
 12.2 RIGHT TO MAKE
AMENDMENTS RELATING TO QUALIFICATION OF PLAN. The Board of Directors or its delegate shall have the unlimited right to approve or ratify the
amendment of the Plan in accordance with the procedure set forth in Section 12.1, at any time, retroactively or otherwise, in such respects and to such extent as may be necessary to qualify it under existing laws and regulations so as to permit the
full deduction for tax purposes of Contributions made hereunder and to meet the requirements of the Code or ERISA and, to the extent necessary to accomplish such purpose, may by such amendment decrease or otherwise affect the rights of Participants
or Beneficiaries to Benefits which have actually accrued and become payable hereunder. 
  
 12.3 AMENDMENT BY BENEFITS COMMITTEE. The Benefits Committee shall also have separate limited authority to modify and amend the Plan in
immaterial respects, including immaterial changes required by law. Provided, no modification or amendment by the Benefits Committee shall (a) significantly increase any required contributions by the Company to the Plan, (b) change the classes of
persons or entities eligible to participate in the Plan, (c) change any method of accrual or benefit formula under the Plan, or (d) adversely affect the tax-favored status of the Plan. 
  

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 ARTICLE 13

  
 RESERVATIONS OF
RIGHTS 
 BY THE COMPANY AND 
 LIMITATIONS ON RIGHTS OF PARTICIPANTS 
  
 13.1 PLAN VOLUNTARY ON
PART OF COMPANY. While it is the intention of the Company that the Plan shall be continued and Contributions made in each year, the Plan is entirely voluntary on the part of the
Company. The Company does not guarantee or promise to pay or cause to be paid any Benefit provided by the Plan and each Participant, Beneficiary or any other person who may claim the right to any payment or Benefit under the Plan shall be entitled
to look only to the Trust Fund for such payment or Benefit and shall not have any right, claim or demand therefor against the Company. 
  
 13.2 PLAN NOT CONTRACT OF EMPLOYMENT. This Plan shall not
be deemed to constitute a contract between the Company and Participants or to be a consideration or inducement for the employment of any Participant or Employee. Nothing contained in the Plan shall be deemed to give any Participant or Employee the
right to be retained in the service of the Company, nor to interfere with the right of the Company to discharge any Participant or Employee at any time, regardless of the effect which such discharge may have upon the Employee as a Participant in the
Plan. 
  

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 ARTICLE 14

  
 TERMINATION OF
PLAN 
  
 14.1 EVENTS
CAUSING TERMINATION OF PLAN. Upon the occurrence of any one or more of the following events, the Plan, subject to the procedures contained in Section 14.2, shall be
terminated: 
  
 (a) Dissolution.
The dissolution of the Company. 
  
 (b)
Discontinuance of Contributions. The complete discontinuance of Contributions by the Company to the Plan. 
  
 (c) Board of Directors’ Action. The adoption of an appropriate resolution by the Board of Directors of the Sponsoring
Company authorizing the termination of the Plan. Upon the adoption of such a resolution, a copy thereof shall be delivered to the Trustee and notice thereof shall be given to Participants. A termination of the Plan as to a Company shall be effected
by the adoption of an appropriate resolution by the Board of Directors of the Company authorizing its termination of participation in the Plan, the delivery of a copy thereof to the Sponsoring Company and Trustee and the giving of written notice of
such termination to all Participants. 
  
 (d) Other Termination. Any other termination or partial termination of the Plan pursuant to section 411(d) of the Code. 
  
 14.2 PROCEDURE UPON TERMINATION. Should any of the events listed in Section 14.1 occur,
the Matching Accounts of each Participant (or, in the case of a partial termination, the Matching Accounts of the Participants affected) at that time, shall become nonforfeitable, but the Plan and the Trust Fund shall be continued until such time as
all Accounts have been fully distributed, at which time the Plan and the Trust Fund shall terminate. Until such time as the Company determines that the Trust Fund shall be terminated, the Trustee shall distribute the Accounts as the Benefits
Committee directs. Upon determination by the Company that the Trust Fund shall terminate, the Trustee shall forthwith proceed to liquidate the assets of the Trust Fund, using the proceeds thereof as follows: 
  
 (a) Payment of Expenses. First, to pay any due
and accrued expenses and liabilities of the Trust Fund and any expenses involved in the termination of the Plan and the Trust Fund, to the extent not paid by the Company. 
  
 (b) Distributions to Participants. Second, to distribute to the Participants as soon as
administratively practicable the amount of their Benefits in the Trust Fund. Provided, no distributions of Elective Deferral Accounts shall be made at a time not otherwise permitted under the Plan. 
  

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 ARTICLE 15

  
 ADDITION AND
WITHDRAWAL OF A COMPANY 
  
 15.1 ADOPTION OF PLAN BY RELATED COMPANY. The Related Companies which have currently adopted the Plan are
set forth at Schedule I. The Board of Directors may designate any Related Company to become a Company thereafter. Any Related Company so designated may adopt the Plan, and become a Company hereunder, by executing a Joinder Agreement which is
approved by the Benefits Committee. Such Related Company shall become a Company hereunder as of an Effective Date provided in the Joinder Agreement, and shall be subject to the terms and provisions of the Plan, with such variations as shall be set
forth in the Joinder Agreement and approved by the Benefits Committee. A Related Company may limit its adoption of the Plan to one or more of its groups of employees, divisions, locations or operations. 
  
 15.2 WITHDRAWAL FROM PLAN
BY COMPANY. 
  
 (a) Procedures for Withdrawal. A Company which wishes to withdraw from the Plan shall deliver to the Benefits Committee a resolution of its Board of Directors which authorizes its withdrawal as a Company
and which indicates the reason or reasons for such withdrawal. The Board of Directors may at any time, in its discretion, determine that a Company (other than the Sponsoring Company) shall no longer participate in the Plan and may direct that the
Company withdraw from the Plan. Withdrawal may take place only on a Valuation Date and notice thereof to the Benefits Committee, or by the Benefits Committee to a Company in the event withdrawal is directed by the Board of Directors, must be
submitted or received at least six months prior to the date the withdrawal is to be effective, unless such time requirement is waived in writing by the Benefits Committee or the Company. 
  
 (b) Withdrawal Treated as Termination. If the withdrawal of a Company is a part of the
complete dissolution of the Company’s business or the discontinuance of participation in the Plan without termination of its business and without the immediate establishment of a new, comparable plan, the provisions of Article 14 shall apply to
such Company’s withdrawal as if the withdrawal were a part of the complete termination of the Plan, but the participation of other Companies hereunder shall not be affected by such withdrawal of a Company. 
  
 (c) Transfer to New Plan. If the withdrawal of
a Company is the result of the establishment of a new, comparable plan for its employees which will immediately upon withdrawal of the Company cover employees of the Company who are covered by the Plan, the Benefits Committee, upon being furnished
evidence of the terms of such new plan and that such new plan has been approved by the Internal Revenue Service as being qualified under the provisions of section 401 of the Code or an opinion of counsel that such new plan is qualified, shall
determine the Account Balances of the Accounts of the Participants employed by that Company. The value of such Account Balances, after reduction for charges and other expenses incurred to process the withdrawal which are not paid by the Company,
shall be transferred to the trustee of the new plan or to the insurance company which is to hold the funds of the new plan, whichever is applicable, in such manner as the Benefits Committee shall direct, but the transfer must be over a period not to
exceed one year following the effective date of the Company’s withdrawal. Notwithstanding the foregoing, the Benefits Committee in its discretion, solely for the benefit and protection of the Participants employed by the Company, may retain the
Account Balances of the Accounts of such Participants in the Plan. Upon completion of the transfer provided for herein, the remaining Companies, the Benefits Committee and the Trustee shall be completely discharged of all responsibility without any
obligation on their part collectively or individually to see the application thereof. 
  

 -53- 

  
 ARTICLE 16

  
 CHANGE IN
EMPLOYMENT 
  
 16.1
PARTICIPANT TRANSFER FROM COMPANY TO COMPANY. A Participant who transfers employment from one Company to another Company shall not be
considered as terminating employment with a Company and shall continue to be a Participant in this Plan without interruption. 
  
 16.2 PARTICIPANT TRANSFER FROM COMPANY TO RELATED
COMPANY. A Participant who transfers employment to a Related Company shall not be considered as terminating participation in the Plan. No further Contributions shall be made by or on behalf of such a Participant and
investment earnings (or losses) of the Trust Fund shall be allocated to the Participant’s Accounts in the manner provided for in Section 6.2. When such a Participant’s employment is terminated with the Related Company on or after attaining
Normal Retirement Age, death, Disability or Severance from Service, the Participant’s Benefit shall be determined as though such event occurred while the Participant was employed by the Company. 
  
 16.3 EMPLOYEE CREDIT FOR
SERVICES WITH RELATED COMPANY. An Employee who transfers employment from a Related Company to a Company shall receive credit for the Employee’s Hours of Service with
such Related Company for the purpose of being eligible to become a Participant, and for the purpose of vesting in the Participant’s Benefit under the Plan. A Participant who retransfers employment to a Company after transferring from a Company
to a Related Company shall again become an active Participant upon the Participant’s reemployment by a Company. 
  

 -54- 

  
 ARTICLE 17

  
 LIMITATIONS ON
VESTING 
  
 AND

  
 ALIENABILITY OF
BENEFITS 
  
 17.1 PARTICIPANT
INTERESTS LIMITED TO BENEFITS ACTUALLY ACCRUED. No Participant shall have any legal right, title or interest in the Trust Fund, or any of
its assets, except in the event and to the extent that a Benefit may actually accrue to such Participant hereunder, and the same limitations shall be applicable with respect to Benefits upon the death of a Participant which may be distributable to a
Beneficiary. 
  
 17.2 SPENDTHRIFT
CLAUSE. Except as provided in Sections 17.2(a) and 17.2(b), no Participant or Beneficiary shall have any right or power to anticipate, pledge, assign, sell, transfer, alienate (by operation of law, legal process or
otherwise) or encumber the interest of such Participant or Beneficiary in the Trust Fund in any manner whatsoever, nor shall such interest in any manner whatsoever be liable for or subject to the debts, liabilities or obligations of such Participant
or Beneficiary, or for claims against such Participant or Beneficiary. 
  
 (a) Qualified Domestic Relations Order. A Participant’s Benefit may be assigned to an alternate payee pursuant to a Qualified Domestic Relations Order, subject to the provisions of Section 10.3(r).

  
 (b) Offset of Benefits.
Effective for judgments, orders, and decrees issued, and settlement agreements entered into, on or after August 5, 1997, a Participant’s Benefits may be offset against an amount that the Participant is ordered or required to pay to the Plan if
such offset meets the requirements provided under section 401(a)(13) of the Code. 
  

 -55- 

  
 ARTICLE 18

  
 BENEFITS CLAIMS
PROCEDURE 
  
 18.1 CLAIMS
FOR BENEFITS. Any claim for Benefits shall be made in writing to the Benefits Committee or its representative. In the event such a claim to all or any part of any Benefit under this Plan shall be
denied, the Benefits Committee or its representative shall provide to the claimant, within 90 days (or such additional period required by special circumstances, but not to exceed an additional 90 days, provided written notice of the extension shall
be furnished to the claimant prior to the commencement of the extension) after receipt of such claim, a written notice setting forth, in a manner calculated to be understood by the claimant: 
  
 (a) The specific reason or reasons for the
denial. 
  
 (b) Specific references
to the pertinent Plan provisions on which the denial is based. 
  
 (c) A description of any additional material or information necessary for the claimant to perfect the claim and an explanation as to why such material or information is necessary. 
  
 (d) An explanation of the Plan’s
procedure for review of the denial of a claim. 
  
 18.2
REVIEW OF DENIAL OF CLAIMS. Within 60 days after receipt of the above material, the claimant may appeal the claim denial to the Benefits Committee for a
full and fair review. Within such 60 days, the claimant or the claimant’s duly authorized representative: 
  
 (a) May request a review upon written notice to the Benefits Committee. 
  
 (b) May review pertinent documents.

  
 (c) May submit issues and
comments in writing. 
  
 18.3 DECISION
ON REVIEW OF DENIAL. A decision by the Benefits Committee will be made not later than 60 days (or such additional period required by special circumstances, but not to
exceed an additional 60 days, provided, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension) after receipt of a request for review. The Benefits Committee’s decision on review shall be
written and shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, with specific references to the pertinent Plan provisions on which the decision is based. 
  

 -56- 

  
 ARTICLE 19

  
 FIDUCIARY RESPONSIBILITIES

  
 19.1 DUTIES AND
OBLIGATIONS OF FIDUCIARIES. All actions by “fiduciaries” (as that term is defined in section 3(21)(A) of ERISA) shall be in accordance with the terms of this Plan insofar as
such documents are consistent with the provisions of Title I of ERISA. Each fiduciary shall act solely in the interest of Participants and Beneficiaries and for the exclusive purpose of providing benefits and defraying reasonable administrative
expenses. Each fiduciary shall discharge the fiduciary’s duties hereunder with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use
in the conduct of an enterprise of a like character and with like aims. 
  
 19.2 ALLOCATION OF FIDUCIARY RESPONSIBILITIES. 
  
 (a) Sponsoring Company. The Sponsoring Company shall be the “named fiduciary” (as defined in section 402(a) of
ERISA) for the following purposes: 
  
 (1)
For the control and management of the operation and administration of the Plan, except for those duties herein specifically allocated to the Benefits Committee, the Plan Administrator, each Company, the Board of Directors or the Trustee.

  
 (2) For the furnishing to the other
fiduciaries hereunder such information related to the administration of the Plan as they may require. 
  
 (3) For the control and management of the Trust Fund to the extent set forth in the Trust Agreement. 
  
 (b) Board of Directors of the Sponsoring
Company. The Board of Directors of the Sponsoring Company shall be the named fiduciary for the purposes of the designation of a Related Company to become a Company as provided in Section 15.1. 
  
 (c) Board of Directors of Each Company. Each
Board of Directors shall be the named fiduciary for the purposes of terminating the participation of its Company in the Plan as provided in Article 14. 
  
 (d) Trustee. The Trustee shall be a named fiduciary to the extent set forth in the Trust Agreement. 
  
 (e) Benefits Committee. The Benefits Committee
shall be the named fiduciary for the purposes of performing the duties set forth in Section 10.3 and such other specific duties provided for in the Plan. 
  

 -57- 

 (f) Separation of Fiduciary Duties. Each fiduciary shall be responsible
only for the specific duties assigned herein and shall not be directly or indirectly responsible for the duties assigned to another fiduciary. 
  

 -58- 

  
 ARTICLE 20

  
 INDEMNIFICATION OF
CERTAIN FIDUCIARIES 
  
 20.1
RIGHTS TO INDEMNIFICATION. The Company shall indemnify each director, officer or employee of the Company who is, or is threatened to be made, a party to any threatened or pending action
or proceeding, whether civil, criminal, administrative or investigative, including actions by or in the right of the Company, by reason of the fact that such director, officer or employee is or was serving at the request of the Company as a
“fiduciary” (as defined by section 3(21)(A) of ERISA) with regard to the Plan, against expenses (including attorneys’ fees), claims, fines, judgments, taxes, causes of action or liability and amounts paid in settlement, actually and
reasonably incurred by such person in connection with such action or proceeding, unless such expense, claim, fine, judgment, taxes, cause of action, liability or amount arose from the person’s gross negligence, fraud or willful breach of the
person’s fiduciary responsibilities under ERISA, except, that with respect to an action by or in the right of the Company, indemnification shall be made only against expenses (including attorneys’ fees). 
  
 20.2 ADVANCEMENT OF
EXPENSES. The Company shall advance all expenses (including attorneys’ fees) incurred by any director, officer or employee described in Section 20.1 in defending a civil, criminal, administrative or
investigative action, suit or proceeding pending the final disposition of such action, suit or proceeding unless (a) the Board of Directors, by a majority vote of a quorum consisting of directors who were not or are not parties to the action, suit
or proceeding concerned or (b) the stockholders determine that, under the circumstances of the individual case, the person by such person’s conduct is not entitled to indemnification under Section 20.1 because of the person’s gross
negligence, fraud or willful breach of such person’s fiduciary responsibilities, upon receipt of an undertaking, with such security as the Board of Directors or stockholders may reasonably require, by or on behalf of the director, officer or
employee to repay such amounts unless it shall ultimately be determined that the person is entitled to be indemnified by the Company as authorized by this Article 20. 
  
 20.3 DETERMINATION OF RIGHT TO
INDEMNITY. To the extent that any director, officer or employee has been successful on the merits or otherwise in the defense of the action, suit or proceeding, or in defense of any claim, issue or matter therein,
referred to in Section 20.1 such person shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection therewith and if such person was advanced expenses as provided in Section
20.2, the undertaking of such person shall be canceled by the Company. If any action, suit or proceeding shall terminate by judgment or order adverse to the director, officer or employee, or settlement, conviction or upon a plea of nolo contendere
or its equivalent, the Board of Directors, or the shareholders, in the same manner provided in Section 20.2 with reference to advancement of expenses, shall (unless ordered by a court to make indemnification) make a determination whether
indemnification of the director, officer or employee is not proper in the circumstances because such person has been guilty of gross negligence, fraud or willful breach of such person’s fiduciary responsibilities and, if it is determined that
the person is so entitled to indemnification, then such person shall be indemnified against expenses (including attorneys’ fees) claims, fines, judgments, taxes, causes of action or liability and amounts paid in settlement, actually and 

  

 -59- 

 
reasonably incurred by such person in connection with such action or proceeding and, if such person was advanced expenses as provided in Section 20.2, the
undertaking of such person shall be canceled. The termination of any action or proceeding by adverse judgment or order, conviction, settlement or plea of nolo contendere or the equivalent, shall not, of itself, create a presumption that the
director, officer or employee was guilty of gross negligence, fraud or willful breach of the fiduciary responsibilities of the director, officer or employee. 
  
 20.4 OTHER RIGHTS. The indemnification provided by this Article 20 shall not be deemed exclusive of
any other rights to which any director, officer or employee may be entitled, and shall continue as to a person who has ceased to be a director, officer or employee and shall inure to the benefit of the personal representative, heirs and legatees of
such a person. 
  
 20.5 INDEMNIFICATION
BY MORE THAN ONE COMPANY. If a director, officer or employee of the Company is entitled to indemnification by more than one Company with respect to any one
action, suit or proceeding, such person shall be indemnified only once and the Companies shall, in their sole discretion, decide how to allocate such indemnification among them. 
  

 -60- 

  
 ARTICLE 21

  
 MISCELLANEOUS 
  
 21.1 MERGER OR CONSOLIDATION
OF PLAN. In the case of any merger or consolidation of the Plan with, or transfer of Plan assets or liabilities to, any other “plan” (as defined in section 3(3) of ERISA), provision shall be
made so that each Participant in the Plan on the date of such merger, consolidation or transfer will receive a benefit immediately after the merger, consolidation or transfer from the other plan if such other plan would then be terminated which is
equal to or greater than the Benefit the Participant would have been entitled to receive immediately prior to the merger, consolidation or transfer under the Plan if the Plan had then been terminated. 
  
 21.2 UNCLAIMED BENEFITS.
Any Benefit payable to or on behalf of a Participant or Beneficiary which is not claimed shall be maintained in an uninvested separate account. If the Participant or Beneficiary with respect to which such separate account has been established cannot
be located after reasonable efforts at the time that the Benefit becomes payable, such Benefit shall be forfeited and applied to the restoration of Forfeitures and, then, shall be applied in the same manner as Forfeitures for such Plan Year as of
the Accounting Date of the Plan Year in which the Participant incurs the Participant’s fifth consecutive Break in Service, or such later date as the Benefits Committee may decide. If the Participant or the Participant’s Beneficiary
subsequently presents a valid claim for the Benefit to the Benefits Committee or its representative, the Company shall cause the Benefit, equal to the amount which was forfeited under this Section 21.2, to be restored by causing an additional
Contribution to be made to the Plan in the necessary amount. 
  
 21.3 NO DIVERSION OF TRUST FUND. In no event shall the Trust Fund be used for, or diverted to, purposes other than the exclusive benefit of the
Participants and Beneficiaries, or in the payment of the expenses of the Trust Fund as set forth herein, except as provided in Section 4.6. 
  
 21.4 CONSTRUCTION. This Plan shall be construed and enforced according to the laws of the Commonwealth of Kentucky,
and all provisions hereunder shall be administered according to the laws thereof, except to the extent preempted by ERISA. It is intended that the Plan meet the requirements of ERISA and the Code and the Plan shall be interpreted and construed,
wherever possible, to comply with the terms of ERISA, the Code, and regulations and rulings issued thereunder. 
  
 21.5 GENDER AND NUMBER. Any words herein used in the masculine or neuter shall read and
be construed in the feminine, masculine or neuter where they would so apply. Words in the singular shall be read and construed as though used in the plural in all cases where they would so apply. 
  
 21.6 DISCRETIONARY ACTS TO
BE NON-DISCRIMINATORY. Any discretionary acts taken under the Plan by the Benefits Committee, the Plan Administrator, the Sponsoring Company, the Company or the Trustee shall be uniform
in their nature, and shall be applicable to all Participants and Employees similarly situated, and no discretionary act shall be taken which is discriminatory under the Code. 
  

 -61- 

 21.7 TITLES AND HEADINGS. Titles of
Articles and headings to Sections are inserted for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles and headings, shall control. 
  
 21.8 DISTRIBUTIONS TO
INCOMPETENTS OR MINORS. In making any distribution to or for the benefit of any minor or incompetent Beneficiary, or incompetent Participant, the Benefits Committee may, but need not,
direct the Trustee to make such distribution to a legal or natural guardian or other relative of such minor or court appointed committee of any incompetent, or to any adult with whom such person temporarily or permanently resides; and any such
guardian, committee, relative or other person shall have full authority and discretion to expend such distribution for the use and benefit of such person; and the receipt of such guardian, committee, relative or other person shall be a complete
discharge to the Trustee, without any responsibility on its part or on the part of the Benefits Committee to see to the application thereof. 
  
 21.9 QUALIFIED DOMESTIC RELATIONS ORDER. The Benefits Committee or its
representative shall have sole discretion in determining whether a judgment, decree or order constitutes a Qualified Domestic Relations Order. 
  
 21.10 COMPLIANCE WITH THE UNIFORMED SERVICES EMPLOYMENT
AND REEMPLOYMENT RIGHTS ACT OF 1994. Notwithstanding any provision of this Plan to the contrary, effective as of December 12, 1994, Contributions, Benefits, and service
credit with respect to qualified military service will be provided in accordance with section 414(u) of the Code. Loan repayments may be suspended under this Plan at the discretion of the Benefits Committee or its representative as permitted under
Section 8.1(f) and section 414(u)(4) of the Code. 
  
 21.11
APPOINTMENT OF ADMINISTRATOR. The Benefits Committee designated by Commonwealth Industries, Inc. shall be the “administrator” for the purposes of ERISA. 
  
 21.12 EFFECTIVE DATE. The
effective date of the amendment and restatement of the Plan shall be the first day of the Plan Year commencing on or after January 1, 1997, unless another effective date is otherwise provided for in a specific provision, in which case such other
effective date shall apply. 
  
 IN
WITNESS WHEREOF, the Sponsoring Company, by its duly authorized officer, has caused the Plan to be executed as of this             
day of February, 2002. 
  

			
	 COMMONWEALTH ALUMINUM
 LEWISPORT, LLC

		
	By:	 	 
	 	 	 Donald L. Marsh, Jr.

	 	 	Executive Vice President,
	 	 	Chief Financial Officer and Secretary

  

 -62- 

 Receipt of an executed copy of the amended and restated Commonwealth Aluminum Lewisport, LLC Hourly 401(k) Plan is hereby
acknowledged. 
  

			
	CG TRUST COMPANY
		
	By:	 	 
		
	 Title:
	 	 

  

 -63- 

  
 FIRST AMENDMENT

 TO THE 
 COMMONWEALTH ALUMINUM LEWISPORT, LLC 
 HOURLY 401(k) PLAN 
  
 THIS FIRST AMENDMENT to the Commonwealth Aluminum Lewisport, LLC Hourly 401(k) Plan (“Plan”), which Plan
was most recently amended and restated in its entirety by Commonwealth Aluminum Lewisport, LLC effective January 1, 1997, amends and modifies the Plan, as follows: 
  
 A. 
  
 Effective January 1, 1997, subsections (b) and (c) of Section 3.6 of the Plan are hereby deleted in their entireties and the following inserted in lieu
thereof: 
  
 (b) Manner of Making Elective
Deferral Election Upon Becoming Eligible. An election under this Section 3.6 shall be made at the time and in the manner determined by the Benefits Committee. A Participant who becomes eligible to participate pursuant to Section 3.1 or
Section 3.3 may make an Elective Deferral election within 31 days after the Participant’s date of hire (or rehire). Such election shall be in writing and shall become effective as soon as administratively practicable after it is filed in the
manner determined by the Benefits Committee. Such election shall continue in effect until modified or terminated. 
  
 (c) Manner of Initiating, Modifying, Terminating or Recommencing Elective Deferral Election After Becoming Eligible. Each
Participant may later initiate, modify or recommence a new permissible amount (not less than 1% of Compensation) as an Elective Deferral twice each Plan Year, effective on January 1 and July 1, by filing a written election in the manner determined
by the Benefits Committee. Such election shall be filed not later than the prior November 30 in the case of a January 1 effective date, or the prior May 31 in the case of a July 1 effective date. Such election shall continue in effect until modified
or terminated. A Participant may terminate an Elective Deferral election by filing a written termination election at any time in the manner determined by the Benefits Committee. Such termination election shall become effective as soon as
administratively practicable after it is filed. 
  

 B. 
  

Effective January 1, 1997, subsections (b) and (c) of Section 3.7 are hereby deleted in their entireties and the following inserted in lieu thereof:

  
 (b) Manner of Making Employee
Contribution Election Upon Becoming Eligible. An election under this Section 3.7 shall be made at the time and in the manner determined by the Benefits Committee. A Participant who becomes eligible to participate pursuant to Section 3.1 or
Section 3.3 may make an Employee Contribution election within 31 days after the Participant’s date of hire (or rehire). Such election shall be in writing and shall become effective as soon as administratively practicable after it is filed in
the manner determined by the Benefits Committee. Such election shall continue in effect until modified or terminated. 
  
 (c) Manner of Initiating, Modifying, Terminating or Recommencing Employee Contribution Election After Becoming Eligible.
Each Participant may later initiate, modify or recommence a new permissible amount (not less than 1% of Compensation) as an Employee Contribution twice each Plan Year, effective on January 1 and July 1, by filing a written election in the
manner determined by the Benefits Committee. Such election shall be filed not later than the prior November 30 in the case of a January 1 effective date, or the prior May 31 in the case of a July 1 effective date. Such election shall continue in
effect until modified or terminated. A Participant may terminate an Employee Contribution election by filing a written termination election at any time in the manner determined by the Benefits Committee. Such termination election shall become
effective as soon as administratively practicable after it is filed. 
  
 C. 
  
 Except as specifically amended
above, the Plan shall remain unchanged and, as amended herein, shall continue in full force and effect. 
  
 IN WITNESS WHEREOF, pursuant to Section 10. of its Charter of Duties and Responsibilities, the Benefits Committee under the Plan has caused this
First Amendment to the Plan to be executed by its duly authorized officer this 19th day of December, 2002. 
  

			
	BENEFITS COMMITTEE
		
	By:	 	 
	 	 	 Leena Ruth Macdonald
 Chairperson

  

 -2- 

 Receipt of an executed copy of this First Amendment to the Commonwealth Aluminum Lewisport, LLC Hourly 401(k) Plan is
hereby acknowledged. 
  

			
	 CIGNA BANK & TRUST COMPANY,
FSB

		
	By:	 	 
		
	 Title:
	 	 

  

 -3-

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