Document:

Exhibit 10.6

 

THIRD
AMENDED AND RESTATED GUARANTY

 

This Third Amended and
Restated Guaranty (as amended, supplemented or otherwise modified in accordance
with the terms hereof and in effect from time to time, this “Guaranty”)
is made as of the 15th day of November, 2005 by Bunge Limited, a company
incorporated under the laws of Bermuda (together with any successors or assigns
permitted hereunder, “BL” or “Guarantor”) to JPMorgan Chase Bank,
N.A. in its capacity as the administrative agent (together with its successors
and assigns, the “Administrative Agent”) under the Third Amended and
Restated Revolving Credit Agreement, dated as of November 15, 2005 (as amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, the “Credit Agreement”), among Bunge Limited Finance
Corp., a Delaware corporation (“BLFC”), the Administrative Agent and the
financial institutions from time to time party thereto (each a “Lender”
and collectively, the “Lenders”), for the benefit of the Lenders. This
Guaranty amends and restates that certain Second Amended and Restated Guaranty,
dated as of June 28, 2004, by BL to the Administrative Agent.

 

WITNESSETH:

 

WHEREAS, pursuant to the
Credit Agreement the Lenders have agreed to make revolving loans denominated in
Dollars and Euros (the “Loans”) to BLFC from time to time;

 

WHEREAS, the execution
and delivery of this Guaranty is a condition precedent to the effectiveness of
the Credit Agreement;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein, the
parties hereby agree as follows:

 

Section 1.                                            Definitions. For all purposes of this Guaranty, except as otherwise
expressly provided in Annex A hereto or unless the context otherwise requires,
capitalized terms used herein shall have the meanings assigned to such terms in
the Credit Agreement.

 

Section 2.                                            Guaranty. The Guarantor
hereby unconditionally and irrevocably guarantees (collectively, the “Guaranty
Obligations”) (a) the prompt and punctual payment of all amounts due and
owing (whether at the stated maturity, by acceleration, or otherwise) in
respect of Loans made by the Lenders to BLFC under the Credit Agreement and the
other Loan Documents and (b) to the extent not timely paid, all fees, expenses
and indemnifications of the Lenders and the Administrative Agent owed by BLFC
under the Credit Agreement and the other Loan Documents, in any case described
in (a) or (b) above whether direct or indirect, absolute or contingent, due or
to become due, or now existing or hereafter incurred. All payments by the
Guarantor under this Guaranty shall be made in Euros (if made with respect to
principal of and interest on Loans denominated in Euros) or Dollars (if made
with respect to any other amount) and (i) with respect to Loans, shall be made
to the Administrative Agent for disbursement pro rata to the Lenders in
accordance with their respective Aggregate Exposure Percentages, (ii) with

 

 

respect to fees, expenses
and indemnifications owed to the Lenders, shall be made to the Administrative
Agent for disbursement pro rata to the Lenders in accordance with their
respective Aggregate Exposure Percentages and (iii) with respect to fees,
expenses and indemnifications owed to the Administrative Agent, shall be made
to the Administrative Agent. This Guaranty shall remain in full force and
effect until the Guaranty Obligations are paid in full and the Commitments are
terminated, notwithstanding that from time to time prior thereto BLFC may be
free from any payment obligations under the Loan Documents.

 

Section 3.                    Guaranty
Absolute. The Guarantor guarantees that the
Guaranty Obligations will be paid, regardless of any applicable law, regulation
or order now or hereinafter in effect in any jurisdiction affecting any of such
terms or the rights of the Administrative Agent or any Lender with respect
thereto. The liability of the Guarantor under this Guaranty shall be absolute
and unconditional irrespective of:

 

(a)                                  Any
lack of validity or enforceability of or defect or deficiency in the Credit
Agreement, any Transaction Document or Loan Document or any other agreement or
instrument executed in connection with or pursuant thereto;

 

(b)                                 Any
change in the time, manner, terms or place of payment of, or in any other term
of, all or any of the Guaranty Obligations, or any other amendment or waiver of
or any consent to departure from the Credit Agreement, any Transaction Document
or Loan Document or any other agreement or instrument relating thereto or
executed in connection therewith or pursuant thereto;

 

(c)                                  Any
sale, exchange or non-perfection of any property standing as security for the
liabilities hereby guaranteed or any liabilities incurred directly or
indirectly hereunder or any setoff against any of said liabilities, or any
release or amendment or waiver of or consent to departure from any other
guaranty, for all or any of the Guaranty Obligations;

 

(d)                                 The
failure of the Administrative Agent or a Lender to assert any claim or demand
or to enforce any right or remedy against BLFC or any other Person hereunder or
under the Credit Agreement or any Transaction Document or any Loan Document;

 

(e)                                  Any
failure by BLFC in the performance of any obligation with respect to the Credit
Agreement or any other Loan Document;

 

(f)                                    Any
bankruptcy of BLFC;

 

(g)                                 Any
other circumstance which might otherwise constitute a defense available to, or
a discharge of, the Guarantor, BLFC or any other Person (including any other
guarantor) that is a party to any document or instrument executed in respect of
the Guaranty Obligations; or

 

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(h)                                 Any
limitation of BLFC’s obligations pursuant to subsection 8.16(b) of the
Credit Agreement.

 

The obligations of the
Guarantor under this Guaranty shall not be affected by the amount of credit
extended to BLFC, any repayment by BLFC to the Administrative Agent or the
Lenders (in each case, other than the full and final payment of all of the
Guaranty Obligations), allocation by the Administrative Agent or the Lenders of
any repayment, any compromise or discharge of the Guaranty Obligations, any
application, release or substitution of collateral or other security therefore,
release of any guarantor, surety or other person obligated in connection with
any document or instrument executed in respect of the Guaranty Obligations, or
any further advances to BLFC.

 

Section 4.                                            Waiver.
The Guarantor hereby waives (a) promptness, diligence, notice of acceptance,
presentment, demand, protest, notice of protest and dishonor, notice of
default, notice of intent to accelerate, notice of acceleration and any other
notice with respect to any of the Guaranty Obligations and this Guaranty, and
(b) any requirement that the Administrative Agent or the Lenders protect,
secure, perfect or insure any security interest or Lien on any property subject
thereto or exhaust any right or take any action against BLFC or any other
Person or entity or any collateral or that BLFC or any other Person or entity
be joined in any action hereunder. All dealings between the Borrower or the
Guarantor, on the one hand, and the Administrative Agent and the Lenders, on
the other hand, shall likewise be conclusively presumed to have been had or
consummated in reliance upon this Guaranty. Should the Administrative Agent
seek to enforce the obligations of the Guarantor hereunder by action in any
court, the Guarantor waives any necessity, substantive or procedural, that a
judgment previously be rendered against BLFC or any other Person, or that any
action be brought against BLFC or any other Person, or that BLFC or any other
Person should be joined in such cause. Such waiver shall be without prejudice
to the Administrative Agent at its option to proceed against BLFC or any other
Person, whether by separate action or by joinder. The Guarantor further
expressly waives each and every right to which it may be entitled by virtue of
the suretyship law of the State of New York or any other applicable
jurisdiction.

 

Section 5.                                            Several
Obligations. The obligations of the
Guarantor hereunder are separate and apart from BLFC or any other Person (other
than the Guarantor), and are primary obligations concerning which the Guarantor
is the principal obligor. The Guarantor agrees that this Guaranty shall not be
discharged except by payment in full of the Guaranty Obligations, termination
of the Commitments and complete performance of the obligations of the Guarantor
hereunder. The obligations of the Guarantor hereunder shall not be affected in
any way by the release or discharge of BLFC from the performance of any of the
Guaranty Obligations, whether occurring by reason of law or any other cause,
whether similar or dissimilar to the foregoing.

 

Section 6.                                            Subrogation
Rights. If any amount shall be paid to the
Guarantor on account of subrogation rights at any time when all the Guaranty
Obligations shall not have been paid in full, such amount shall be held in
trust for the benefit of the Administrative Agent and shall forthwith be paid
to the Administrative Agent to be applied to the Guaranty Obligations as

 

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specified in the Loan Documents. If (a) the Guarantor
makes a payment to the Administrative Agent of all or any part of the Guaranty
Obligations and (b) all the Guaranty Obligations have been paid in full and the
Commitments have terminated, the Administrative Agent will, at the Guarantor’s
request, execute and deliver to the Guarantor appropriate documents, without
recourse and without representation or warranty of any kind whatsoever,
necessary to evidence the transfer by subrogation to the Guarantor of any
interest in the Guaranty Obligations resulting from such payment by the
Guarantor. The Guarantor hereby agrees that it shall have no rights of
subrogation with respect to amounts due to the Administrative Agent or the
Lenders until such time as all obligations of BLFC to the Lenders and the
Administrative Agent have been paid in full, the Commitments have been
terminated and the Credit Agreement has been terminated.

 

Section 7.                    Representations
and Warranties. The Guarantor hereby represents and warrants as follows:

 

(a)                                  Financial
Condition.

 

(i)                                     The
consolidated balance sheet of the Guarantor and its consolidated Subsidiaries
as at December 31, 2004 and the related consolidated statements of income for
the fiscal year ended on such date, reported on by the Guarantor’s independent
public accountants, copies of which have heretofore been furnished to the
Administrative Agent, are complete and correct, in all material respects, and
present fairly the financial condition of the Guarantor and its consolidated
Subsidiaries as at such date, and the results of operations for the fiscal year
then ended. Such financial statements, including any related schedules and
notes thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved (except as approved by the external auditors
and as disclosed therein, if any).

 

(ii)                                  Except
as disclosed in Schedule VI attached hereto, neither the Guarantor nor its
consolidated Subsidiaries had, at the date of the most recent balance sheet
referred to above, any material guarantee obligation, contingent liability (as
defined in accordance with GAAP), or any long-term lease or unusual forward or
long-term commitment, including, without limitation, any interest rate or
foreign currency swap or exchange transaction, which is not reflected in the
foregoing statements or in the notes thereto, except for guarantees,
indemnities or similar obligations of the Guarantor or consolidated Subsidiary
supporting obligations of one Subsidiary to another Subsidiary.

 

(iii)                               During the period from
December 31, 2004 to and including the date hereof, except as disclosed in
Schedule VI attached hereto, neither the Guarantor nor its consolidated
Subsidiaries has sold, transferred or otherwise disposed of any material part
of its business or property, nor has it purchased or otherwise acquired any
business or property (including any capital stock of any other Person) material
in relation to the consolidated financial

 

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condition of the
Guarantor and its consolidated Subsidiaries at December 31, 2004.

 

(b)                                 No
Change. Since December 31, 2004, except as disclosed in Schedule I hereof,
there has been no development or event which has had or could, in the Guarantor’s
good faith reasonable judgment, reasonably be expected to have a Material
Adverse Effect.

 

(c)                                  Corporate
Existence; Compliance with Law. The Guarantor and each of its Subsidiaries
(i) is duly organized and validly existing under the laws of the jurisdiction
of its incorporation, (ii) has the corporate power and authority, and the legal
right, to own and operate its property, to lease the property it operates as
lessee and to conduct the business in which it is currently engaged, (iii) is
duly qualified under the laws of each jurisdiction where its ownership, lease
or operation of property or the conduct of its business requires such
qualification, except where the failure to be so duly qualified could not
reasonably be expected to have a Material Adverse Effect, and (iv) is in
compliance with all Requirements of Law and Contractual Obligations, except any
non-compliance which could not reasonably be expected to have a Material
Adverse Effect.

 

(d)                                 Corporate
Power; Authorization; Enforceable Obligations. The Guarantor and each of
its Subsidiaries has the corporate power and authority, and the legal right, to
make, deliver and perform this Guaranty and each of the other Loan Documents
and Transaction Documents to which it is a party and to borrow thereunder and
has taken all necessary corporate action to authorize (i) the borrowings on the
terms and conditions of the Loan Documents and Transaction Documents, (ii) the
execution, delivery and performance of this Guaranty and each of the other Loan
Documents and Transaction Documents and (iii) the remittance of payments in the
applicable Approved Currency of all amounts payable hereunder and thereunder. No
consent or authorization of, filing with, notice to or other act by or in
respect of, any Governmental Authority or any other Person is required in
connection with the borrowings under the Loan Documents or Transaction
Documents, the remittance of payments in the applicable Approved Currency in
accordance with the terms hereof and thereof or with the execution delivery,
performance, validity or enforceability of this Guaranty and each of the other
Loan Documents and Transaction Documents. This Guaranty and each of the other
Loan Documents and Transaction Documents to which they are a party have been
duly executed and delivered on behalf of the Guarantor and each of its
Subsidiaries. Each of this Guaranty and each of the other Loan Documents and
Transaction Documents to which they are a party constitutes a legal, valid and
binding obligation of the Guarantor and each of its Subsidiaries enforceable
against the Guarantor and each of its Subsidiaries in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or law).

 

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(e)                                  No
Legal Bar. The execution, delivery and performance by the Guarantor of this
Guaranty, and by it and each of its Subsidiaries of the other Loan Documents
and Transaction Documents to which each such entity is a party, the borrowings
thereunder and the use of the proceeds thereof will not violate any Requirement
of Law or Contractual Obligation or any agreement, instrument or other
undertaking to which the Guarantor or its Subsidiaries is a party or by which
it is bound and will not result in, or require, the creation or imposition of
any Lien on any of the properties or revenues of any of the Guarantor or its
Subsidiaries pursuant to any such Requirement of Law or agreement, instrument
or undertaking.

 

(f)                                    No
Material Litigation. Except as disclosed in Schedule VII attached hereto,
no litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of the Guarantor,
threatened by or against the Guarantor or any of its Subsidiaries or against
any of their respective properties or revenues (a) with respect to this
Guaranty or the other Loan Documents and Transaction Documents or any of the
transactions contemplated hereby or (b) which could reasonably be expected to
have a Material Adverse Effect.

 

(g)                                 Ownership
of Property; Liens. The Guarantor and each of its Subsidiaries has good
record and marketable title in fee simple to, or a valid leasehold interest in,
all its material real property, and good title to, or a valid leasehold
interest in, all its other material property except for defects in title which
would not have a Material Adverse Effect, and none of the property is subject
to any Lien, other than Permitted Liens.

 

(h)                                 Environmental
Matters. The Guarantor and its Subsidiaries have obtained all permits,
licenses and other authorizations that are necessary to operate their
respective business and required under all applicable Environmental Laws,
except where the failure to do so would not reasonably be expected to have a
Material Adverse Effect. Except as set forth on Schedule II, (i) Hazardous
Materials have not at any time been generated, used, treated or stored on,
released or disposed of on, or transported to or from, any property owned,
leased, used, operated or occupied by the Guarantor or any of its Subsidiaries
or, to the best of the Guarantor’s knowledge, any property adjoining or in the
vicinity of any such property except in compliance with all applicable
Environmental Laws other than where the failure to do so would not reasonably
be expected to have a Material Adverse Effect and (ii) there are no past,
pending or threatened (in writing) Environmental Claims against the Guarantor
or any of its Subsidiaries or any property owned, leased, used, operated or
occupied by the Guarantor or any of its Subsidiaries that individually or in
the aggregate would reasonably be expected to have a Material Adverse Effect. The
operations of the Guarantor and its Subsidiaries are in compliance in all
material respects with all terms and conditions of the required permits, licenses,
certificates, registrations and authorizations, and are also in compliance in
all material respects with all other limitations, restrictions, conditions,
standards, prohibitions, requirements, obligations, schedules and timetables
contained in the Environmental

 

6

 

Laws, except where
the failure to do so would not reasonably be expected to have a Material
Adverse Effect.

 

(i)                                     No
Default. Except with respect to the Indebtedness set forth on Schedule III,
neither the Guarantor nor any of its Subsidiaries is in default under or with
respect to any agreement, instrument or undertaking to which it is a party or
by which it is bound in any respect which could reasonably be expected to have
a Material Adverse Effect. No Series 2002-1 Early Amortization Event, Potential
Series 2002-1 Early Amortization Event, Event of Default or Default has
occurred and is continuing.

 

(j)                                     Taxes.
Under the laws of Bermuda, the execution, delivery and performance by the
Guarantor of this Guaranty and by it and each of its Subsidiaries of the other
Loan Documents and Transaction Documents to which they are a party and all
payments of principal, interest, fees and other amounts hereunder and
thereunder are exempt from all income or withholding taxes, stamp taxes,
charges or contributions of Bermuda or any political subdivision or taxing
authority thereof, irrespective of the fact that the Administrative Agent or
any of the Lenders may have a representative office or subsidiary in Bermuda. The
Guarantor is validly obligated to make all payments due under this Guaranty and
each of its Subsidiaries is validly obligated to make all payments due under
the other Loan Documents and Transaction Documents free and clear of any such
tax, withholding or charge so that the Administrative Agent and the Lenders
shall receive the amounts due as if no such tax, withholding or charge had been
imposed.

 

(k)                                  Pari
Passu Status. The obligations of the Guarantor hereunder constitute direct,
general obligations of the Guarantor and rank at least pari  passu
(in priority of payment) with all other unsecured, unsubordinated obligations
of the Guarantor resulting from any indebtedness for borrowed money or
guarantee.

 

(l)                                     Purpose
of Advances. The proceeds of the Loans under the Credit Agreement shall be
used by BLFC solely to make advances under the Series 2002-1 VFC.

 

(m)                               Information.
All information (including, with respect to the Guarantor, without limitation,
the financial statements required to be delivered pursuant hereto), which has
been made available to the Administrative Agent or any Lender by or on behalf
of the Guarantor in connection with the transactions contemplated hereby and
the other Loan Documents and Transaction Documents is complete and correct in
all material respects and does not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
contained therein not materially misleading in light of the circumstances under
which such statements were made.

 

(n)                                 Designated
Obligors. On the date hereof, BL directly or indirectly owns the percentage
of the voting stock of each Designated Obligor (other than BL) set forth on
Schedule IV hereto.

 

7

 

(o)                                 Restrictions
on Designated Obligors. There is no legal or regulatory restriction on the
ability of any Designated Obligor to pay dividends to the Guarantor out of
earnings at such times as such Designated Obligor is not deemed to be insolvent
pursuant to the laws of its jurisdiction of incorporation nor any legal or
regulatory restriction preventing the Guarantor from converting such dividend
payments to an Approved Currency.

 

(p)                                 Federal
Regulations. No part of the proceeds of any advances under the Investor
Certificates will be used for “purchasing” or “carrying” any “margin stock”
within the respective meanings of each of the quoted terms under Regulation U
of the Board of Governors of the Federal Reserve System of the United States as
now and from time to time hereafter in effect.

 

(q)                                 Investment
Company Act. The Guarantor is not an “investment company”, or a company “controlled”
by an “investment company”, within the meaning of the 1940 Act.

 

(r)                                    Solvency.
The Guarantor is, individually and together with its Subsidiaries, Solvent.

 

(s)                                  Consideration.
The Guarantor has received, or will receive, direct or indirect benefit from
the making of this Guaranty.

 

The Guarantor agrees that
the foregoing representations and warranties shall be deemed to have been made
by the Guarantor on the date of each borrowing by BLFC under the Credit
Agreement on and as of such date.

 

Section 8.                    Covenants.

 

8.1                                 Affirmative
Covenants. The Guarantor hereby agrees that, so long as (i) any Loan
remains outstanding and unpaid or any other amount is owing to the
Administrative Agent or any Lender under the Credit Agreement or (ii) the
Commitments have not been terminated:

 

(a)                                  Financial
Statements. The Guarantor shall furnish to the Administrative Agent (who
shall furnish a copy to each Lender):

 

(i)                                     promptly
after each annual meeting of the Guarantor, but in any event within ninety (90)
days after the end of each fiscal year of the Guarantor, a copy of the audited
consolidated balance sheet of the Guarantor and its consolidated Subsidiaries
at the end of such year and related audited consolidated statements of income
and retained earnings and of cash flows for such year, setting forth in each
case in comparative form the figures for the previous year, certified by

 

8

 

independent public
accountants reasonably acceptable to the Administrative Agent;

 

(ii)                                  as
soon as available, but in any event not later than forty-five (45) days after
the end of each of the first three quarters of each fiscal year of the
Guarantor, the unaudited consolidated balance sheet of the Guarantor as at the
end of such quarter and the related unaudited consolidated statement of income
for such quarter and the portion of the fiscal year through the end of such quarter,
setting forth in each case in comparative form the figures for the previous
year, each in the form reasonably acceptable to the Administrative Agent,
certified by the chief financial officer of the Guarantor; and

 

(iii)                               such
additional financial and other information as the Administrative Agent (at the
request of any Lender or otherwise) may from time to time reasonably request;

 

all such financial
statements furnished under clause (i) above to be complete and correct in all
material respects and prepared in reasonable detail in accordance with GAAP
applied consistently throughout the periods reflected therein and with prior
periods (except as approved by such accountants or officer, as the case may be,
and disclosed therein).

 

(b)                                 Quarterly
Compliance Certificates. The Guarantor shall, within forty-five (45) days
after the end of each of the first three fiscal quarters of each fiscal year
and ninety (90) days after the end of each fiscal year, furnish to the
Administrative Agent its certificate signed by its chief financial officer
stating that, to the best of such officer’s knowledge, during such period each
of the Guarantor and BLFC has observed or performed all of its covenants and
other agreements, and satisfied every condition contained in this Guaranty and
the other Loan Documents and Transaction Documents and any other related
documents to be observed, performed or satisfied by each of them, and that such
officer has obtained no knowledge of any Series 2002-1 Early Amortization
Event, Potential Series 2002-1 Early Amortization Event, Event of Default or
Default except as specified in such certificate and showing in reasonable
detail the calculations evidencing compliance with the covenants in subsection
8.2(a).

 

(c)                                  Conduct
of Business and Maintenance of Existence. The Guarantor shall, and shall
cause each of the Designated Obligors to: 
(i) except as permitted by subsection 8.2(b), preserve, renew and
keep in full force and effect its corporate existence; and (ii) take all
reasonable action to maintain all rights, privileges and franchises necessary
or desirable in the normal conduct of its business, except where the failure to
maintain the same would not have a Material Adverse Effect.

 

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(d)                                 Compliance
with Laws and Contractual Obligations; Authorization. The Guarantor shall,
and shall cause each of its Subsidiaries to, comply in all respects with all
Requirements of Law and Contractual Obligations, except where failure to so
comply would not have a Material Adverse Effect, and the Guarantor shall
obtain, comply with the terms of and do all that is necessary to maintain in
full force and effect all authorizations, approvals, licenses and consents
required in or by any applicable laws and regulations to enable it lawfully to
enter into and perform its obligations under this Guaranty or to ensure the
legality, validity, enforceability or admissibility in evidence of this and the
other Loan Documents and Transaction Documents.

 

(e)                                  Maintenance
of Property; Insurance. The Guarantor shall, and shall cause each of its
Subsidiaries to, keep all property useful and necessary in its business in good
working order and condition, except where failure to do so would not have a
Material Adverse Effect; and maintain with financially sound and reputable
insurance companies insurance on all its property in at least such amounts and
against at least such risks as are customary for the Guarantor’s type of
business.

 

(f)                                    Inspection
of Property; Books and Records. The Guarantor shall, and shall cause each
of the Designated Obligors to, keep proper books of records and account in
which full, true and correct entries in conformity with GAAP and all
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities; and permit representatives of the
Administrative Agent and each Lender to visit and inspect any of its properties
and examine and make abstracts from any of its books and records at any time
and as often as may reasonably be desired, provided that the Administrative
Agent and each Lender has given reasonable prior written notice and the
Administrative Agent and each Lender has executed a confidentiality agreement
reasonably satisfactory to the Guarantor.

 

(g)                                 Notices.
The Guarantor shall give notice to the Administrative Agent promptly after
becoming aware of the same, of (i) the occurrence of any Series 2002-1 Early
Amortization Event, Potential Series 2002-1 Early Amortization Event, Event of
Default or Default; (ii) any changes in taxes, duties or other fees of Bermuda
or any political subdivision or taxing authority thereof or any change in any
laws of Bermuda, in each case, that may affect any payment due under this
Guaranty or the other Loan Documents and Transaction Documents; (iii) any
change in such Guarantor’s public or private debt ratings by a Rating Agency;
and (iv) any development or event which has had, or which the Guarantor in its
good faith judgment believes will have, a Material Adverse Effect.

 

10

 

(h)                                 Pari
Passu Obligations. The Guarantor shall ensure that its obligations
hereunder at all times constitute direct, general obligations of the Guarantor
ranking at least pari  passu in right of payment with all other
unsecured, unsubordinated Indebtedness (other than Indebtedness that is
preferred by mandatory provisions of law) of the Guarantor.

 

(i)                                     Maintenance
of Designated Obligors. The Guarantor will not and will not permit any of
its Subsidiaries directly or indirectly to convey, sell, transfer or otherwise
dispose of, or grant any Person an option to acquire, in one transaction or a
series of transactions more than 50% of the voting stock of a Designated
Obligor (other than BL) unless such conveyance, sale, transfer or disposition
does not cause a Series 2002-1 Early Amortization Event, Potential Series
2002-1 Early Amortization Event, Event of Default or Default and either (i)
such conveyance, sale, transfer or disposition is among the Guarantor and its
Subsidiaries or (ii) (A) the Guarantor or such Subsidiary uses the net proceeds
of such stock conveyance, sale, transfer or disposition to repay in full the
aggregate principal and interest due and owing with respect to all Intercompany
Loans outstanding as to which the Designated Obligor is the Obligor and (B) to
the extent such net proceeds exceed the amounts required to be paid pursuant to
clause (A), the Guarantor or such Subsidiary either (1) reinvests or enters
into a contract to reinvest all such excess net proceeds in productive
replacement fixed assets of a kind then used or usable in the business of the
Guarantor or any of its Subsidiaries or (2) uses such excess net proceeds to
make payments on the Guarantor’s or its Subsidiaries’ other Indebtedness.

 

(j)                                     Payment
of Taxes. The Guarantor shall pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all
taxes, assessments and similar governmental charges imposed on it, its incomes,
profits or properties, except where the amount or validity thereof is currently
being contested in good faith by appropriate proceedings and reserves to the
extent required by GAAP with respect thereto have been provided on the books of
the Guarantor.

 

(k)                                  Environmental
Laws. Unless, in the good faith judgment of the Guarantor, the failure to
do so would not reasonably be expected to have a Material Adverse Effect, the
Guarantor will comply in all material respects, and cause each of its
Subsidiaries to comply in all material respects, with the requirements of all
applicable Environmental Laws and will immediately pay or cause to be paid all
costs and expenses incurred in such compliance, except such costs and expenses
which are being contested in good faith by appropriate proceedings if the
Guarantor or such Subsidiary, as applicable, is maintaining adequate reserves
(in the good faith judgment of the management of the Guarantor) with respect
thereto in accordance with GAAP. Unless the failure to do so would not
reasonably be expected to have a Material Adverse Effect, the

 

11

 

Guarantor shall not, nor
shall it permit or suffer any of its Subsidiaries to, generate, use,
manufacture, refine, transport, treat, store, handle, dispose of, transfer,
produce or process Hazardous Materials other than in the ordinary course of
business and in material compliance with all applicable Environmental Laws, and
shall not, and shall not permit or suffer any of its Subsidiaries to, cause or
permit, as a result of any intentional or unintentional act or omission on the
part of the Guarantor or any Subsidiary thereof, the installation or placement
of Hazardous Materials in material violation of or actionable under any
applicable Environmental Laws onto any of its property or suffer the material
presence of Hazardous Materials in violation of or actionable under any
applicable Environmental Laws on any of its property without having taken
prompt steps to remedy such violation. Unless its failure to do so would not
reasonably be expected to have a Material Adverse Effect, the Guarantor shall,
and shall cause each of its Subsidiaries to, promptly undertake and diligently
pursue to completion any investigation, study, sampling and testing, as well as
any cleanup, removal, remedial or other action required of the Guarantor or any
Subsidiary under any applicable Environmental Laws in the event of any release
of Hazardous Materials.

 

(l)                                  ERISA.
The Guarantor shall give notice to the Administrative Agent:

 

(i)                                     ERISA
Events. Promptly and in any event within ten (10) days after the Guarantor
or any ERISA Affiliate knows or has reason to know that any ERISA Event has
occurred, a statement of the Chief Financial Officer of the Guarantor or such
ERISA Affiliate describing such ERISA Event and the action, if any, that the
Guarantor or such ERISA Affiliate has taken and proposes to take with respect
thereto;

 

(ii)                                  Plan
Terminations. Promptly and in any event within two (2) Business Days after
receipt thereof by the Guarantor or any ERISA Affiliate, copies of each notice
from the PBGC stating its intention to terminate any Plan or to have a trustee
appointed to administer any Plan; and

 

(iii)                               Multiemployer Plan Notices. Promptly and in any event within five (5)
Business Days after receipt thereof by the Guarantor or any ERISA
Affiliate from the sponsor of a Multiemployer Plan, copies of each notice
concerning (A) the imposition of Withdrawal Liability by any such Multiemployer
Plan, (B) the reorganization or termination, within the meaning of Title IV of
ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred,
or that may be incurred, by the Guarantor of any ERISA Affiliate in connection
with any event described in clause (A) or (B) above.

 

12

 

8.2                              Negative
Covenants. The Guarantor hereby agrees that, so long as (i) any Loan
remains outstanding and unpaid or any other amount is owing to the
Administrative Agent or any Lender under the Credit Agreement or (ii) the
Commitments have not been terminated:

 

(a)                                  the
Guarantor shall not at any time permit:

 

(i)                                     its
Consolidated Net Worth (as calculated at the end of each fiscal quarter of the
Guarantor) to be less than U.S.$1,350,000,000;

 

(ii)                                  the
ratio of its consolidated Adjusted Net Debt to consolidated Adjusted
Capitalization (each as calculated at the end of each fiscal quarter of the
Guarantor) to be greater than 0.635:1.0; and

 

(iii)                               the
ratio of its total consolidated current assets to total consolidated current
liabilities, each as calculated at the end of each fiscal quarter of the
Guarantor and as determined in accordance with GAAP, to be less than 1.1 to
1.0.

 

(b)                                 Limitation
of Fundamental Changes. The Guarantor shall not enter into any transaction
of merger, consolidation or amalgamation (other than any merger of any
Subsidiary with and into the Guarantor so long as the Guarantor shall be the
surviving or continuing corporation) or liquidate, wind up or dissolve itself
(or suffer any liquidation or dissolution), or convey, sell, lease, assign,
transfer or otherwise dispose of, all or substantially all of its property,
business or assets.

 

(c)                                  Liens.
The Guarantor shall not nor shall it permit any Subsidiary to create or suffer
to exist any Lien (including, without limitation, any equivalent created or
arising under the laws of any jurisdiction in which the Guarantor or a
Subsidiary does business), upon or with respect to any of its present or future
property including any asset, revenue, or right to receive income or any other
property, whether tangible or intangible, real or personal (all of the
foregoing hereinafter called “Property”), in each case to secure
Indebtedness unless the Guaranty Obligations are equally and ratably secured,
except:  (i) Liens for current taxes,
assessments or other governmental charges which are not delinquent or remain
payable without any penalty, or the validity of which is contested in good
faith by appropriate proceedings upon stay of execution of the enforcement
thereof or upon posting a bond in connection therewith; (ii) any Lien pursuant
to any order or attachment or similar legal process arising in connection with
court proceedings; provided that the execution or other enforcement
thereof is effectively stayed or a sufficient bond had been posted and the
claims secured thereby are being contested at the time in good faith by
appropriate proceedings; (iii) any Liens securing bonds posted with respect to
and in compliance with

 

13

 

clauses (i) and (ii)
above; (iv) any Liens securing the claims of mechanics, laborers, workmen,
repairmen, materialmen, suppliers, carriers, warehousemen, landlords, or
vendors or other claims provided for by mandatory provisions of law which are
not yet due and delinquent, or are being contested in good faith by appropriate
proceedings; (v) Liens which are Excluded Liens (as defined below); (vi)
any Lien on any Property securing Indebtedness incurred or assumed solely for
the purpose of financing all or any part of the cost of constructing or
acquiring such Property, which Lien attaches to such Property concurrently with
or within ninety (90) days after the construction, acquisition or completion of
a series of related acquisitions thereof; (vii) Liens existing immediately
prior to the execution of this Guaranty and set forth in Schedule V to this
Guaranty; (viii) Liens to secure bonds posted in order to obtain stays of
judgments, attachments or orders, the existence of which bonds would not
otherwise constitute an Event of Default; (ix) Liens on Property existing prior
to the acquisition of such Property or the acquisition of any Subsidiary that
is the owner of such Property; (x) Liens created by a Subsidiary in favor of
the Guarantor or a Subsidiary; (xi) Liens on any accounts receivable from or
invoices to export customers (including, but not limited to, Subsidiaries) and
the proceeds thereof; (xii) Liens on rights under contracts to sell, purchase
or receive commodities to or from export customers (including, but not limited
to, Subsidiaries) and the proceeds thereof; (xiii) Liens on cash deposited as
collateral in connection with financings where Liens are permitted under clause
(xi) and (xii) of this subsection 8.2(c); (xiv) Liens extending,
renewing or replacing, in whole or in part Liens permitted pursuant to clauses
(i) through (xi), so long as the principal amount of the Indebtedness secured
by such Lien does not exceed its original principal amount; (xv) minor survey
exceptions or minor encumbrances, easements or reservations, or rights of
others for rights-of-way, utilities and other similar purposes, or zoning or
other restrictions as to the use of real properties, which are necessary for
the conduct of the activities of the Guarantor or the Subsidiaries or which
customarily exist on properties of corporations engaged in similar activities
and similarly situated and which do not in any event materially impair their
use in the operation of the business of the Guarantor or the Subsidiaries;
(xvi) Liens incurred pursuant to the Loan Documents and Transaction Documents;
(xvii) Liens on accounts receivable and other related assets arising in
connection with transfers thereof to the extent such transfers are treated as
true sales of financial assets under FASB Statement No. 140, as in effect from
time to time; and (xviii) Liens (other than Liens otherwise permitted by
clauses (i) through (xvii) above) incurred by the Guarantor or a Subsidiary
which, at the time incurred do not, together with all other Liens incurred by
the Guarantor and the Subsidiaries (other than Liens otherwise permitted by
clauses (i) through (xvii) above) secure an aggregate principal amount
exceeding (at the time such Lien is issued or created) $250,000,000
(collectively, Liens described in clauses (i)-(xviii) are referred to herein as
“Permitted Liens”); provided,  however, that Indebtedness
incurred in connection with any permitted sale and leaseback transactions which
are treated as debt in

 

14

 

accordance with generally
accepted accounting principles applicable to such Subsidiary will be included
in such determination and treated as being secured by Liens not otherwise
permitted by clauses (i) through (xvii). For purposes of interpreting the terms
of this Guaranty, (A) the phrases “accounts receivable from or invoices to
export customers” and “contracts to sell, purchase or receive commodities to
(from) export customers” shall refer to invoices or accounts receivable derived
from the sale of, or contracts to sell, purchase or receive wheat, soybeans or
other commodities or products derived from the processing of wheat, soybeans or
other commodities, by or to the Guarantor or a Subsidiary that have been or are
to be exported from the country of origin whether or not such sale is made by a
Subsidiary or to any of its Subsidiaries; and (B) property of a party to a
corporate reorganization which is not the Guarantor or a Subsidiary shall be
deemed “acquired” by the Guarantor or such Subsidiary as part of such corporate
reorganization even if the Guarantor or Subsidiary, as the case may be, is not
the surviving entity.

 

As used in this subsection, the term “Excluded Lien”
shall mean any Lien (i) granted by the Guarantor or any Subsidiary to secure
(A) loans from banks controlled by governmental agencies or (B) loans from
other lenders in connection with government programs, or (ii) which secures
Indebtedness owing to a Person by any of its Subsidiaries.

 

(d)                                 Restrictions
on Dividends or Loans by Designated Obligors. The Guarantor shall not
permit any Designated Obligor to enter into any agreement restricting the
payment of dividends or the making of loans by it to the Guarantor or to any
other Designated Obligor, except that the Guarantor may permit a
Designated Obligor to be party to agreements (i) limiting the payment of
dividends by such Designated Obligor following a default or an event of default
under such agreement and (ii) requiring the compliance by such Designated
Obligor with specified net worth, working capital or other similar financial
tests and (iii) restricting loans to be made by such Designated Obligor to any
other Obligor or the Guarantor to such loans which accrue interest at a rate
greater than or equal to such lending Designated Obligor’s average cost of
funds as determined in good faith by the Board of Director of such Designated
Obligor.

 

(e)                                  Intercompany
Loans. Notwithstanding any provision to the contrary set forth in the
Transaction Documents (including, without limitation, clause (s) of the
definition of “Eligible Loan” in Annex X), the Guarantor (i) shall not permit
any Seller to sell, transfer, assign or otherwise convey any Intercompany Loan
to Bunge Funding under the Sale Agreement that has a maturity in excess of six (6)
years and (ii) shall either cause a Seller, the Company or the Trustee to
demand repayment of all outstanding principal and accrued interest under each
Intercompany Loan or cause a Seller to refinance such

 

15

 

amounts by making a new
Intercompany Loan to the applicable Obligor within six (6) years from the date
of such Intercompany Loan.

 

Section 9.                                            Amendments. No amendment or waiver of any provision of this Guaranty
nor consent to any departure by the Guarantor therefrom shall in any event be
effective unless such amendment or waiver shall be in writing and signed by the
Guarantor and the Administrative Agent. Such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

 

Section 10.                                      Notices,
Etc. All notices, demands, instructions and
other communications required or permitted to be given to or made upon any
Person pursuant hereto shall be in writing and shall be personally delivered or
sent by registered, certified or express mail, postage prepaid, return receipt
requested, or by facsimile transmission, and shall be deemed to be given for
purposes of this Guaranty, in the case of a notice sent by registered,
certified or express mail, on the date that such writing is actually delivered
to the intended recipient thereof in accordance with the provisions of this Section
10, or in the case of facsimile transmission, when received and
telephonically confirmed. Unless otherwise specified in a notice sent or
delivered in accordance with the foregoing provisions of this Section 10,
notices, demands, instructions and other communications in writing shall be
given to or made upon the subject parties at their respective Notice Addresses
(or to their respective facsimile transmission numbers) or at such other
address or number as any party may notify to the other parties in accordance
with the provisions of this Section 10.

 

Section 11.                                      No
Waiver; Remedies. No failure on
the part of the Administrative Agent to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

 

Section 12.                                      Costs
and Expenses. The Guarantor agrees to pay, and cause to be paid, on demand all
costs and expenses actually incurred by the Administrative Agent in connection
with the enforcement of this Guaranty including, without limitation, the fees
and out-of-pocket expenses of outside counsel to the Administrative Agent with
respect thereto. The agreements of the Guarantor contained in this Section
12 shall survive the payment of all other amounts owing hereunder or under
any of the other Guaranty Obligations.

 

Section 13.                                      Separability. Should any clause, sentence, paragraph, subsection or
Section of this Guaranty be judicially declared to be invalid, unenforceable or
void, such decision will not have the effect of invalidating or voiding the
remainder of this Guaranty, and the parties hereto agree that the part or parts
of this Guaranty so held to be invalid, unenforceable or void will be deemed to
have been stricken herefrom and the remainder will have the same force and
effectiveness as if such part or parts had never been included herein.

 

16

 

Section 14.                                      Captions.
The captions in this Guaranty have been inserted for convenience only and shall
be given no substantive meaning or significance whatever in construing the
terms and provisions of this Guaranty.

 

Section 15.                                      Successors
and Assigns. This Guaranty shall (a) be binding upon the Guarantor and its
successors and assigns and (b) inure to the benefit of and be enforceable by
the Administrative Agent and its successors, transferees and assigns; provided,
however, that any assignment by the Guarantor of its obligations
hereunder shall (i) be subject to the prior written consent of all the Lenders
at their complete discretion, and (ii) only be made to a one hundred percent
(100%) owned Affiliate of the Guarantor.

 

Section 16.                                      Limitation
by Law. All rights, remedies and powers provided in this Guaranty may be
exercised only to the extent that the exercise thereof does not violate any
applicable provision of law, and all the provisions of this Guaranty are
intended to be subject to all applicable mandatory provisions of law which may
be controlling and to be limited to the extent necessary so that they will not
render this Guaranty invalid, unenforceable, in whole or in part, or not
entitled to be recorded, registered or filed under the provisions of any
applicable law.

 

Section 17.                                      Substitution
of Guaranty. Subject to the prior written consent of all the Lenders at
their complete discretion, the Guarantor shall, during the term of this
Guaranty, be permitted at its option to provide collateral to the
Administrative Agent or another form of credit support as a substitute for its
obligations under this Guaranty. The Guarantor agrees to execute whatever
security or credit support documents the Administrative Agent reasonably
requests in order to effectuate the provisions of this Section 17.

 

Section 18.              GOVERNING
LAW; FOREIGN PARTY PROVISIONS.

 

(a)                                  THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(b)                                 Consent
to Jurisdiction. The Guarantor irrevocably submits to the jurisdiction of
any New York state or U.S. federal court sitting in the Borough of Manhattan,
The City of New York, in any action or proceeding relating to its obligations,
liabilities or any other matter arising out of or in connection with this
Guaranty or the other Loan Documents and Transaction Documents. The Guarantor hereby
irrevocably agrees that all claims in respect of any such action or proceeding
may be heard and determined in such New York state or U.S. federal court. The
Guarantor also hereby irrevocably waives, to the fullest extent permitted by
law, any objection to venue or the defense of an inconvenient forum to the
maintenance of any such action or proceeding in any such court.

 

(c)                                  Appointment
for Agent for Service of Process. The Guarantor hereby (i) irrevocably
designates and appoints its Chief Financial Officer (from time to time) at its
principal executive offices at 50 Main Street, White Plains, New York 10606

 

17

 

(the “Authorized
Agent”), as its agent upon which process may be served in any suit, action or
proceeding described in the first sentence of subsection 18(b) hereof
and represents and warrants that the Authorized Agent has accepted such
designation and (ii) agrees that service of process upon the Authorized Agent
and written notice of said service to the Guarantor mailed or delivered to its
Secretary at its registered office at 2 Church Street, Hamilton, Bermuda, shall
be deemed in every respect effective service of process upon the Guarantor in
any such suit or proceeding. The Guarantor further agrees to take any and all
action, including the execution and filing of any and all such documents and
instruments, as may be necessary to continue such designation and appointment
of the Authorized Agent in full force and effect so long as the Guaranty is in
existence.

 

(d)                                 Waiver
of Immunities. To the extent that the Guarantor or any of its properties,
assets or revenues may have or may hereafter become entitled to, or have
attributed to them, any right of immunity, on the grounds of sovereignty, from
any legal action, suit or proceeding, from set-off or counterclaim, from the
jurisdiction of any court, from service of process, from attachment upon or
prior to judgment, or from attachment in aid of execution of judgment, or from
execution of judgment, or other legal process or proceeding for the giving of
any relief or for the enforcement of any judgment, in any jurisdiction in which
proceedings may at any time be commenced, with respect to its obligations,
liabilities or any other matter under or arising out of or in connection with
this Guaranty or any other Loan Documents and Transaction Documents, the
Guarantor hereby irrevocably and unconditionally, to the extent permitted by
applicable law, waives and agrees not to plead or claim any such immunity and consents
to such relief and enforcement.

 

(e)                                  Foreign
Taxes. Any payments by the Guarantor to the Administrative Agent hereunder
shall be made free and clear of, and without deduction or withholding for or on
account of, any and all present and future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereinafter imposed, levied, collected, withheld or assessed by Bermuda or any
other jurisdiction in which the Guarantor has an office from which payment is
made or deemed to be made, excluding (i) any such tax imposed by reason of the
Administrative Agent, having some connection with any such jurisdiction other
than its participation as the Administrative Agent under the Loan Documents and
Transaction Documents, and (ii) any income or franchise tax on the overall net
income of the Administrative Agent imposed by the United States or by the State
of New York or any political subdivision of the United States or of the State
of New York on the office of the Administrative Agent through which it is
acting in connection with this transaction (all such non-excluded taxes, “Foreign
Taxes”). If the Guarantor is prevented by operation of law or otherwise
from paying, causing to be paid or remitting that portion of amounts payable
hereunder represented by Foreign Taxes withheld or deducted, then amounts
payable under this Guaranty shall, to the extent permitted by law, be increased
to such amount as is necessary to yield and remit to the Administrative Agent
an amount which, after

 

18

 

deduction of all
Foreign Taxes (including all Foreign Taxes payable on such increased payments)
equals the amount that would have been payable if no Foreign Taxes applied.

 

(f)                                    Judgment
Currency. The obligations of the Guarantor in respect of any sum due to the
Administrative Agent or any Lender hereunder or any holder of the obligations
owing hereunder (the “Applicable Creditor”) shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than the currency
in which such sum is stated to be due hereunder (the “Agreement Currency”),
be discharged only to the extent that, on the Business Day following receipt by
the Applicable Creditor of any sum adjudged to be so due in the Judgment
Currency, the Applicable Creditor may in accordance with normal banking
procedures in the relevant jurisdiction purchase the Agreement Currency with
the Judgment Currency; if the amount of the Agreement Currency so purchased is
less than the sum originally due to the Applicable Creditor in the Agreement
Currency, the Guarantor as a separate obligation and notwithstanding any such
judgment, agrees to indemnify the Applicable Creditor against such loss. The
obligations of the Guarantor contained in this Section shall survive the
termination of this Guaranty and the Credit Agreement and the payment of all
other amounts owing hereunder and thereunder.

 

Section 19.                                      Reinstatement.
This Guaranty shall be reinstated to the extent of payments made to the Guarantor
as reimbursement of amounts advanced by the Guarantor hereunder. The Guarantor
agrees that this Guaranty shall continue to be effective or be reinstated, as
the case may be, if at any time any part of any payment of principal of, or
interest on, the Guaranty Obligations is stayed, rescinded or must otherwise be
restored by the Administrative Agent upon the bankruptcy or reorganization of
BLFC or any other Person.

 

Section 20.                                      JPMorgan
Chase Conflict Waiver. JPMorgan Chase acts as Administrative Agent and
Lender and may provide other services or facilities from time to time (the “JPMorgan
Chase Roles”). The Guarantor and each other party hereto acknowledges and
consents to any and all JPMorgan Chase Roles, waives any objections it may have
to any actual or potential conflict of interest caused by JPMorgan Chase’s
acting as Administrative Agent or as Lender hereunder and acting as or
maintaining any of the JPMorgan Chase Roles, and agrees that in connection with
any JPMorgan Chase Role, JPMorgan Chase may take, or refrain from taking, any
action which it in its discretion deems appropriate.

 

Section 21.                                      Setoff.
In addition to any rights now or hereafter granted under applicable law and not
by way of limitation of any such rights, upon the occurrence of an Event of
Default or a Series 2002-1 Early Amortization Event, each Lender is hereby
authorized at any time or from time to time, without notice to the Guarantor or
to any other Person, any such notice being hereby expressly waived, to set off
and to appropriate and apply any and all deposits (general or special) and any
other indebtedness at any time held or owing by such Lender, to or for the
credit or the account of the Guarantor against and on account of the
obligations and liabilities of the Guarantor to such Lender, as applicable,
under this Guaranty or any other Loan Document, including, without limitation,
all claims of any nature or description arising out of or

 

19

 

connected with this Guaranty or any other Loan
Document, irrespective of whether or not such Lender shall have made any demand
hereunder and although said obligations, liabilities or claims, or any of them,
shall be contingent or unmatured.

 

If any Lender, whether by setoff
or otherwise, has payment made to it under this Guaranty or any other Loan
Document upon its Loans in a greater proportion than that received by any other
Lender, such Lender agrees, promptly upon demand, to purchase a portion of the
Loans held by the other Lenders so that after such purchase each Lender will
hold its ratable proportion of Loans.

 

20

 

IN WITNESS WHEREOF, the
Guarantor has caused this Third Amended and Restated Guaranty to be duly
executed by its officers thereunto duly authorized, as of the date first
written above.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BUNGE LIMITED,

  
	
   

  	
  a Bermuda company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
										

 

 

Schedule I

 

Material
Developments

 

None

 

SI-1

 

Schedule II

 

Environmental
Matters

 

This Schedule II
to the Guaranty hereby incorporates by reference all disclosure related to
environmental matters set forth in BL’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2004, which was filed on March 16, 2005.

 

SII-1

 

Schedule III

 

Defaulted
Facilities

 

None

 

SIII-1

 

Schedule IV

 

Designated
Obligors

 

	
  Name

  	
   

  	
  Percentage Directly or Indirectly

  Owned by BL

  	
   

  
	
  Bunge Limited

  	
   

  	
  —

  	
   

  
	
  Bunge Global
  Markets Inc.

  	
   

  	
  100

  	
  %

  
	
  Bunge N.A.
  Holdings, Inc.

  	
   

  	
  100

  	
  %

  
	
  Bunge North
  America, Inc.

  	
   

  	
  100

  	
  %(1)

  
	
  Koninklijke
  Bunge B.V.

  	
   

  	
  100

  	
  %

  
	
  Bunge Argentina
  S.A.

  	
   

  	
  100

  	
  %

  
	
  Bunge Brasil
  S.A.

  	
   

  	
  83.22

  	
  %

  
	
  Bunge S.A.

  	
   

  	
  100

  	
  %

  
	
  Bunge
  Fertilizantes International Limited

  	
   

  	
  83.22

  	
  %

  
	
  Bunge Alimentos
  S.A.

  	
   

  	
  83.22

  	
  %

  
	
  Bunge
  Fertilizantes S.A. (Brazil)

  	
   

  	
  83.22

  	
  %

  
	
  Ceval
  International Limited

  	
   

  	
  83.22

  	
  %

  

 

(1)          Bunge
Limited owns 100% of Bunge Corporation Limited (“BCL”).  BCL owns 100% of Bunge N.A. Holdings, Inc. (“Bunge
N.A. Holdings”).  Bunge North
America, Inc. has two shareholders: (1) Bunge N.A. Holdings owns 95.3% of Bunge
North America, Inc.’s common stock and (2) BCL owns 4.7% of Bunge North
America, Inc.’s common stock.

 

SIV-1

 

Schedule V

 

Permitted
Liens

 

	
  Subsidiary/Joint 

  Ventures

  	
   

  	
  Facility

  	
   

  	
  Amount

  Outstanding

  	
   

  	
  Description of Collateral

  
	
  Bunge Argentina S.A.

  	
   

  	
  IFC Loan

  	
   

  	
  $

  	
  5.0 million

  	
   

  	
  Land, buildings and shares of Terminal Bahia
  Blanca

  
	
  Terminal 6 and Terminal 6I (unconsolidated joint
  ventures)

  	
   

  	
  IFC Loan (Bunge’s share)

  	
   

  	
  $

  	
  10.1 million

  	
   

  	
  Shares of stock of Terminal 6

  
	
  Bunge Alimentos S.A.

  	
   

  	
  Bank

  	
   

  	
  $

  	
  10.8 million

  	
   

  	
  Land, buildings and equipment

  
	
  Bunge Fertilizantes S.A./ Fosfertil S.A.

  	
   

  	
  BNDES (various)

  	
   

  	
  $

  	
  103.3 million

  	
   

  	
  Land, equipment, buildings and shares of stock of
  Fosfertil S.A. and Ultrafertil

  
	
   

  	
   

  	
  IFC

  	
   

  	
  $

  	
  15.8 million 

  	
   

  	
  Land and equipment

  
	
   

  	
   

  	
  Other

  	
   

  	
  $

  	
  5.4 million

  	
   

  	
  Land and buildings

  

 

SV-1

 

Schedule VI

 

Material
Contingent Liabilities and Material Disposition or Acquisition of Assets

 

This Schedule VI
to the Guaranty hereby incorporates by reference all disclosures set forth in
the Form 10-Q that was filed by BL on August 9, 2005.

 

SVI-1

 

Schedule VII

 

Material
Litigation

 

This
Schedule VII to the Guaranty hereby incorporates by reference all disclosure
related to legal proceedings set forth in BL’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2004, which was filed on March 16, 2005.

 

SVII-1

 

ANNEX A

 

“Adjusted
Capitalization”:  the sum of the
Guarantor’s Consolidated Net Worth and the Guarantor’s consolidated Adjusted Net
Debt.

 

“Adjusted
Net Debt”:  with respect to any Person on
any date of determination, (a) the aggregate principal amount of Indebtedness
of such Person on such date minus (b) the sum of all cash, marketable
securities and Liquid Inventory of such Person on such date.

 

“BL”:  Bunge Limited, a company organized under the
laws of Bermuda, and its successors and permitted assigns.

 

“BLFC”:  Bunge Limited Finance Corp., a Delaware
corporation, and its successors and permitted assigns.

 

“Bunge
Funding”: Bunge Funding, Inc., a Delaware corporation, and its successors and
permitted assigns.

 

“Consolidated
Net Worth”:  the Net Worth of the
Guarantor and its consolidated Subsidiaries determined on a consolidated basis
in accordance with GAAP, plus minority interests in Subsidiaries.

 

“Credit
Agreement”:  as defined in the preamble
hereto.

 

“Dollars” and “$”:  dollars in lawful currency of the United
States.

 

“Environmental
Claim”:  any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, claims, liens,
notices of non-compliance or violation, investigations or proceedings relating
in any way to any Environmental Law or any permit issued under any such law
(hereinafter “Claims”), including, without limitation, (a) any and all Claims by
governmental or regulatory authorities for enforcement, cleanup, removal,
response, remedial or other actions or damages pursuant to any applicable
Environmental Law and (b) any and all Claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting or arising from alleged or actual injury or threat
of injury to the environment by reason of a violation of or liability arising
under any Environmental Law.

 

A-1

 

“Environmental
Law”:  any and all federal, state, local
or foreign laws, rules, orders, regulations, statutes, ordinances, codes,
decrees, requirements of any Governmental Authority or other Requirements of
Law (including common law) regulating, relating to or imposing liability or
standards of conduct concerning protection of human health or the environment,
as now or may at any time hereafter be in effect.

 

“ERISA
Event”:  (a) (i) the occurrence of a
reportable event, within the meaning of Section 4043 of ERISA, with respect to
any Plan unless the 30-day notice requirement with respect to such event has
been waived by the PBGC or (ii) the requirements of Section 4043(b) of ERISA
apply with respect to a contributing sponsor, as defined in Section 4001(a)(13)
of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12)
or (13) of Section 4043(c) of ERISA is reasonably expected to occur with
respect to such Plan within the following 30 days; (b) the application for a
minimum funding waiver with respect to a Plan; (c) the provision by the
administrator of any Plan of a notice of intent to terminate such Plan,
pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect
to a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation
of operations at a facility of the Guarantor or any ERISA Affiliate in the
circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by the
Guarantor or any ERISA Affiliate from a Multiple Employer Plan during a plan
year for which it was a substantial employer, as defined in Section 4001(a)(2)
of ERISA; (f) the conditions for imposition of a lien under Section 302(f) of
ERISA shall have been met with respect to any Plan; (g) the adoption of an amendment
to a Plan requiring the provision of security to such Plan pursuant to Section
307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a
Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or
condition described in Section 4042 of ERISA that constitutes grounds for the
termination of, or the appointment of a trustee to administer, such Plan.

 

“Euro” and “EUR”:  the single lawful currency introduced at the
start of the third stage of the European Economic and Monetary Union pursuant
to a treaty establishing the European Union (as amended from time to time).

 

“Excluded
Lien”:  as defined in subsection
8.2(c).

 

“Foreign
Taxes”:  as defined in subsection
18(e).

 

“GAAP”:  generally accepted accounting principles in
the United States as in effect from time to time.

 

“Guarantor”:  BL.

 

A-2

 

“Guaranty”:  as defined in the preamble hereto.

 

“Guaranty
Obligations”:  as defined in Section 2.

 

“Hazardous
Materials”:  (a) any petroleum or
petroleum products, radioactive materials, asbestos in any form that is or
could become friable, urea formaldehyde foam insulation, transformers or other
equipment that contain dielectric fluid containing levels of polychlorinated
biphenyls, and radon gas; (b) any chemicals, materials or substances defined as
or included in the definition of “hazardous substances,” “hazardous waste,” “hazardous
materials,” “extremely hazardous waste,” “restricted hazardous waste,” “toxic
substances,” “toxic pollutants,” “contaminants,” or “pollutants,” or words of
similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, exposure to which is prohibited, limited or
regulated by any governmental authority having jurisdiction over the Guarantor
or its Subsidiaries and the manufacturing, trading or extraction of which
constitutes a material portion of the business of the Guarantor or any of its
Subsidiaries.

 

“Hedge
Agreements”:  all interest rate swaps,
caps or collar agreements or similar arrangements dealing with interest rates
or currency exchange rates or the exchange of nominal interest obligations
either generally or under specific contingencies.

 

“Indebtedness”:  as to any Person, without duplication, (a)
all obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (c)
all obligations of such Person to pay the deferred purchase price of property,
except trade accounts payable arising in the ordinary course of business, (d)
all obligations of such Person as lessee which are capitalized in accordance
with GAAP, (e) all obligations of such Person created or arising under any
conditional sales or other title retention agreement with respect to any
property acquired by such Person (including without limitation, obligations
under any such agreement which provides that the rights and remedies of the
seller or lender thereunder in the event of default are limited to repossession
or sale of such property), (f) all obligations of such Person with respect to
letters of credit and similar instruments, including without limitation
obligations under reimbursement agreements, (g) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has existing right,
contingent or otherwise, to be secured by) a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person, (h) all net
obligations of such Person in respect of equity derivatives and Hedge
Agreements and (i) all guarantees by such Person of Indebtedness of others
(other than guarantees of obligations of direct or indirect Subsidiaries of
such Person).

 

“Intercompany
Loans”:  Loans, as defined in Annex X to
the Pooling Agreement.

 

A-3

 

“Investor
Certificates”:  as defined in Annex X to
the Pooling Agreement.

 

“JPMorgan
Chase Roles”:  as defined in Section 20.

 

“Judgment
Currency”:  as defined in subsection
18(f).

 

“Lien”:  with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, encumbrance, charge or security interest in or on
such asset and (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement relating to such
asset.

 

“Liquid
Inventory”:  as to the Guarantor and its
consolidated Subsidiaries at any time, its inventory at such time of
commodities which are traded on any recognized commodities exchange, valued
depending on the type of such commodity at either (a) the lower of cost or the
market value at such time or (b) the market value at such time.

 

“Multiple
Employer Plan”:  a single employer plan,
as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
employees of the Guarantor or any ERISA Affiliate and at least one Person other
than the Guarantor and the ERISA Affiliates or (b) was so maintained and in
respect of which the Guarantor or any ERISA Affiliate could have liability
under Section 4064 or 4069 of ERISA in the event such plan has been or were to
be terminated.

 

“Net
Worth”:  with respect to any Person, the
sum of such Person’s capital stock, capital in excess of par or stated value of
shares of its capital stock, retained earnings and any other account which, in
accordance with GAAP, constitutes stockholders’ equity, excluding any treasury
stock.

 

“Notice
Address”:  

 

	
  Administrative Agent:

  	
   

  	
  JPMORGAN CHASE BANK,
  N.A.

  270 Park Avenue, 4th Floor

  New York, NY 10017

  Attention: Teri Streusand

  Tel. No: (212) 270-9803

  Telecopy: (212) 270-3279

  

 

A-4

 

	
  Guarantor:

  	
   

  	
  BUNGE LIMITED

  50 Main Street

  White Plains, New York 10606

  Attention: Morris Kalef

  Tel. No: (914) 684-3440

  Telecopy: (914) 684-3283

  

 

“Obligor”:
as defined in Annex X to the Pooling Agreement.

 

“Permitted
Lien”:  as defined in subsection
8.2(c).

 

“Plan”:  a Single Employer Plan or a Multiple Employer
Plan.

 

“Property”:
as defined in subsection 8.2(c).

 

“Seller”:
as defined in Annex X to the Pooling Agreement.

 

“Single
Employer Plan”:  a single employer plan,
as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
employees of the Guarantor or any ERISA Affiliate and no Person other than the
Guarantor and the ERISA Affiliates or (b) was so maintained and in respect of
which the Guarantor or any ERISA Affiliate could have liability under Section
4069 of ERISA in the event such plan has been or were to be terminated.

 

“Solvent”
and “Solvency”:  with respect to any
Person on a particular date, that on such date (a) the fair value of the
property of such Person is greater than the total amount of liabilities,
including, without limitation, contingent liabilities, of such Person, (b) the
present fair salable value of the assets of such Person is not less than the
amount that will be required to pay the probable liability of such Person on
its debts as they become absolute and matured, (c) such Person does not intend
to, and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay such debts and liabilities as they mature and (d) such
Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person’s property would constitute
an unreasonably small capital. The amount of contingent liabilities at any time
shall be computed as the amount that, in the light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

 

“Transaction
Documents”:  as defined in Annex X to the
Pooling Agreement.

 

A-5Exhibit 10.10

 

BUNGE
LIMITED

EQUITY
INCENTIVE PLAN

 

AWARD AGREEMENT

 

- Notice of Nonqualified Stock Option Grant -

 

Effective as of the Date of
Grant set forth below, the Participant named below is hereby awarded a
nonqualified stock option to purchase the number of Shares set forth below (the
“Nonqualified Stock
Option”) under the Bunge Limited Equity Incentive Plan (the “Plan”), subject to
the terms and conditions of the Plan and this Award Agreement (this “Award Agreement”).  This Award Agreement consists of this Notice
of Nonqualified Stock Option Grant (the “Grant Notice”) and the attached Terms and
Conditions Applicable to Nonqualified Stock Options (the “Terms and Conditions”).  Defined terms not explicitly defined in this
Award Agreement but defined in the Plan shall have the same definitions as in
the Plan.

 

Participant Information:

 

	
  Name:

  	
  Address:

  
	
   

  	
   

  

 

Summary of Nonqualified Stock Option Terms:

 

	
  Date of Grant:

  	
   

  	
  Shares subject to the
  Nonqualified Stock Option:

  
	
  Vesting Schedule: See Terms and Conditions.

  	
   

  	
  Exercise Price per Share:                  U.S.$          .

  
	
  Expiration Date:

  	
   

  	
   

  
	
  Ten (10) years from the Date of Grant, unless
  earlier terminated as provided herein.

  

 

The Participant and Bunge
Limited, a company organized under the laws of Bermuda, and any successor
thereto (“Bunge”),
agree that this Nonqualified Stock Option is granted under and subject to the
terms and conditions of the Plan and this Award Agreement, and that this
Nonqualified Stock Option is granted for no consideration other than the
Participant’s services.  The Participant
acknowledges that he or she has reviewed the Plan and this Award Agreement in
their entirety and has had an opportunity to obtain the advice of counsel and a
qualified tax advisor prior to executing this Award Agreement.  The Participant hereby agrees to comply with
the terms and conditions of the Plan and this Award Agreement and accepts as
binding, conclusive and final all decisions or interpretations of the Board
upon any questions relating to the Plan and this Award Agreement.

 

The Participant indicates
acceptance of the Nonqualified Stock Option, subject to the terms and
conditions set forth in the Plan and the Award Agreement, by signing this Grant
Notice and returning it to the undersigned representative of Bunge no later
than             ,
2005.  If a signed copy of this Grant
Notice is not received by such date, this Award shall be void and of no force
and effect.

 

	
  BUNGE
  LIMITED

  	
  PARTICIPANT

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Flávio Sá Carvalho

  	
   

  	
  [NAME]

  	
   

  
	
  Title:

  	
  Chief Personnel Officer

  	
   

  
							

 

 

BUNGE
LIMITED

EQUITY
INCENTIVE PLAN

 

AWARD AGREEMENT

 

- Terms and Conditions Applicable to
Nonqualified Stock Options -

 

1.                                      Grant.  Subject to the terms and conditions of this
Award Agreement, the Company has elected to grant the Participant a Nonqualified
Stock Option as of the Date of Grant.

 

2.                                      Vesting.  The Participant may exercise the Nonqualified
Stock Option only with respect to the portion thereof that has vested.  Except as otherwise provided in Section 5
herein, the Nonqualified Stock Option granted under this Award Agreement shall
vest as to one-third (1/3) of the Shares subject to the Nonqualified Stock
Option on each of the first, second and third anniversaries of the Date of
Grant (each, a “Vesting
Date”), provided
the Participant has remained in the continuous employment of the Company
through the applicable Vesting Date.  Any
fractions resulting from the application of the vesting schedule shall be
aggregated, and the Shares subject to the Nonqualified Stock Option resulting
therefrom may be exercised starting from the first Vesting Date.  No exercise may occur after 5:00 p.m.
(New York City time) on the Expiration Date.

 

3.                                      Exercise Procedures.

 

(a)                                  Notice of Exercise. 
Subject to the limitations set forth in this Award Agreement, including,
without limitation, automatic termination and forfeiture of the Nonqualified
Stock Option pursuant to Section 8 of the Plan, the Participant may
exercise the vested portion of the Nonqualified Stock Option, in whole or in
part, by submitting a written notice in the form attached hereto as Exhibit A
to the Company at its corporate headquarters (or by following such other
procedures as the Company may from time to time indicate in writing to the
Participant).  The exercise date (the “Exercise Date”) shall
be the date on which the Secretary of Bunge receives a written notice of
exercise, duly completed and submitted by the Participant (or his or her
beneficiary, if applicable), relating to the Nonqualified Stock Option, if such
notice is received by 5:00 p.m. (New York City time).  Otherwise
the Exercise Date shall be the following business day.  The
Participant shall deliver, or arrange for delivery, to the Company, at the time
of giving the notice, payment in a form permissible under Section 4 of
this Award Agreement for the full amount of the Exercise Price.

 

(b)                                 Issuance
of Shares.  After receiving a proper
notice of exercise, Bunge shall cause to be issued the Shares as to which the
Nonqualified Stock Option has been exercised.

 

(c)                                  Period of Exercise. 
Subject to the limitations of this Award Agreement, Nonqualified Stock
Options shall be exercisable until the Expiration Date.  Any Nonqualified Stock Options that have not
been exercised by 5:00 p.m. (New York City time) on the Expiration Date
shall expire and be automatically cancelled.

 

(d)                                 Withholding
Taxes.  The Company shall be entitled
to require the Participant, prior to delivery of any Shares upon exercise, to
remit to the Company an amount sufficient to satisfy any U.S. federal, state,
local and/or foreign income tax, social or other applicable payroll tax
withholding requirements.  The Company
may, in its sole discretion, permit the Participant, after the delivery of
Shares to the Participant, to satisfy U.S. federal, state, local and/or foreign
income tax, social or other applicable payroll taxes by directing the Company
to repurchase Shares that were issued to such Participant in accordance with all applicable
laws and pursuant to any such rules as the Committee may establish from
time to time.

 

 

4.                                      Payment for Shares.  In order to exercise the
Nonqualified Stock Option, the Participant may tender payment in the following
forms:

 

(a)                                  Cashless
Exercise.  Subject to such rules and
procedures as may be adopted by the Committee, and subject to applicable law all or part of the Exercise Price and any
withholding taxes may be paid by the delivery (on a form prescribed by the
Company) of an irrevocable direction:

 

(i)                                     to a securities broker to sell Shares and to
deliver all or part of the sales proceeds to Bunge; or

 

(ii)                                  to pledge Shares to a securities broker or
lender, as security for a loan, and to deliver all or part of the loan proceeds
to Bunge.

 

(b)                                 Cash.  All or part of the Exercise
Price may be paid in cash or cash equivalents.

 

(c)                                  Currently Owned Shares. 
Subject to all applicable law and in Bunge’s sole discretion, all or any
part of the Exercise Price may be paid by surrendering whole Shares that are
already owned by the Participant.  Such
Shares shall be surrendered to Bunge in good form for transfer and shall be
valued at their Fair Market Value on the date when the Nonqualified Stock
Option is exercised.  The Participant
shall not surrender Shares in payment of the Exercise Price if such action would
cause Bunge to recognize compensation expense (or additional compensation
expense) with respect to the Nonqualified Stock Option for financial reporting
purposes.

 

(d)                                 Cash/Share
Combination.  Subject to all
applicable law and in Bunge’s sole discretion, all or any part of the Exercise
Price may be paid through a combination of the alternatives above.

 

5.                                      Termination of Employment. 
Except as otherwise provided in this Section 5, the terms
applicable in the event of the Participant’s termination of employment with the
Company shall be governed by Section 8(d) of the Plan; provided, that in no event shall the
Nonqualified Stock Option be exercisable after the end of the Expiration
Date.  In the event of the Participant’s
termination of employment due to the such Participant’s early retirement prior
to age 65 (as defined under the Company’s applicable retirement policies), the
Nonqualified Stock Option, to the extent not yet vested, shall become
immediately vested and exercisable. 
Thereafter, the vested portion of the Nonqualified Stock Option shall
remain exercisable by the Participant until the third anniversary of the date
of the Participant’s termination of employment. 
Any portion of the Nonqualified Stock Option that is not timely
exercised shall lapse and become void.

 

6.                                      General Terms.

 

(a)                                  Transferability.  The
Nonqualified Stock Option is not transferable by the Participant, except by
will or by the laws of descent and distribution or pursuant to a domestic
relations order, if applicable. 
Notwithstanding the foregoing, by delivering written notice to Bunge, in
a form satisfactory to Bunge, the Participant may designate a third party who,
in the event of the Participant’s death, shall thereafter be entitled to
exercise the Nonqualified Stock Option.

 

(b)                                 Award Not a Service Contract.  Neither
this Award Agreement nor the Nonqualified Stock Option granted hereunder is an
employment or service contract, and nothing in this Award Agreement shall be
deemed to create in any way whatsoever any obligation on the part of the

 

2

 

Participant to continue in
the employ of the Company, or of the Company to continue the Participant’s
employment.  In addition, nothing in this
Award Agreement shall obligate the Company or the shareholders, the Board, officers
or employees of Bunge or any other entity constituting the Company to continue
any relationship that the Participant might have as a director, advisor,
employee or consultant for the Company.

 

(c)                                  Restrictive Covenants; Cooperation
Obligations.

 

(i)                                     Confidentiality.  The
Participant understands and acknowledges that in the course of his or her
employment, the Participant shall have access to and shall learn information
proprietary to Bunge, its parent companies and subsidiaries (individually and
as a group, the “Bunge
Group”) that concerns the technological innovations, operation
and methodology of the Bunge Group, including, without limitation, business
plans, financial information, protocols, proposals, manuals, clinical
procedures and guidelines, scientific data, computer source codes, programs,
software, know-how and specifications, copyrights, trade secrets, market
information, Developments (as hereinafter defined), data and customer
information (collectively, “Proprietary Information”). “Developments” shall
mean all data, discoveries, findings, reports, designs, inventions,
improvements, methods, practices, techniques, developments, programs, concepts
and ideas, whether or not patentable, relating to the present or planned
activities, or the products and services of the Bunge Group.  The Participant hereby agrees that during the
period beginning on the Date of Grant and continuing in perpetuity thereafter,
the Participant shall keep confidential and shall not disclose any such
Proprietary Information to any third party, except as required to fulfill his
or her duties in connection with employment by the Bunge Group, and shall not
misuse, misappropriate or exploit such Proprietary Information in any way.  The restrictions contained herein shall not
apply to any information which (i) was already available to the public at
the time of disclosure, or subsequently became available to the public,
otherwise than by breach of this Award Agreement or (ii) the disclosure of
which was required by order of any court or administrative agency.  Upon any termination of the Participant’s
employment with the Bunge Group, the Participant hereby agrees to return
immediately to the Bunge Group all Proprietary Information and copies thereof
in the possession of the Participant.

 

(ii)                                  No
Competing Employment.  During the
period beginning on the Date of Grant and continuing until the end of the
twelfth month following the Participant’s termination of employment for any
reason with the Bunge Group (such period to be referred to as the “Restricted Period”), the Participant
shall not, without the prior written consent of Bunge, directly or indirectly,
whether as owner, consultant, employee, partner, venturer, or agent, through
stock ownership, investment of capital, lending of money or property, rendering
of services, or otherwise (except ownership of less than 5% of the number of
shares outstanding of any securities which are publicly traded), (A) compete
with the Bunge Group, or (B) provide services to, whether as an employee
or consultant, or own, manage, operate, control, participate in or be connected
with (as a shareholder, partner, or similar owner) any corporation, firm,
partnership, joint venture, sole proprietorship or other entity which competes
with the Bunge Group, except for the aforementioned ownership of less than 5%
of any publicly traded securities.  The Restricted Period shall be extended by
the length of any period during which the Participant is in breach of any of
the terms of this Section 6(c)(ii).

 

3

 

(iii)                               Restrictions on
Solicitation.  During the Restricted Period, and except as
required pursuant to the Participant’s duties to the Bunge Group in connection
with the employment relationship, the Participant shall not, directly or
indirectly:  (i) solicit or contact
any customer of the Bunge Group (or any other entity that the Participant knows
is a potential customer with respect to specific products of the Bunge Group
and with which the Participant has had contact during the period of his or her
employment with the Bunge Group) for any commercial pursuit that to the
knowledge of the Participant is in competition with the Bunge Group or that to
the knowledge of the Participant is contemplated from time to time during the
period of his or her employment with the Bunge Group by any corresponding
business plan; (ii) take away or interfere or attempt to interfere with
any custom, trade, business or patronage of the Bunge Group, or induce, or
attempt to induce, any employees, agents or consultants of or to the Bunge
Group to do anything from which the Participant is restricted by reason of this
Section 6(c); or (iii) offer or aid others to offer employment to
employees of the Bunge Group, or interfere or attempt to interfere with any
employees of the Bunge Group.  The
Restricted Period shall be extended by the length of any period during which
the Participant is in breach of any of the terms of this Section 6(c)(iii).

 

(iv)                              Application of Covenants.  The
activities described in this Section 6(c) shall be prohibited
regardless of whether undertaken by the Participant in an individual or
representative capacity, and regardless of whether performed for the
Participant’s own account or for the account of any other individual, partnership,
firm, corporation or other business organization (other than Bunge).

 

(v)                                 Injunctive Relief. 
Without limiting the remedies available to Bunge, the Participant
acknowledges that a breach of any of the covenants contained in this Section 6(c) may
result in irreparable injury to Bunge for which there is no adequate remedy at
law, that it shall not be possible to measure damages for such injuries
precisely and that, in the event of such a breach or threat thereof, Bunge
shall be entitled to seek a temporary restraining order or a preliminary or
permanent injunction restraining the Participant from engaging in activities
prohibited by this Section 6(c) or such other relief as may be
required to specifically enforce any of the covenants in this Section 6(c).

 

(d)                                 Plan Document
Controls.  In the event of any conflict between the provisions of this Award
Agreement and those of the Plan, the provisions of the Plan shall control.

 

(e)                                  Applicable Law.  This
Award Agreement shall be governed by and subject to the laws of the State of
New York and to all applicable laws and to the approvals by any
governmental or regulatory agency as may be required.

 

(f)                                    Validity.  The invalidity or
unenforceability of any provision of this Award Agreement shall not affect the
validity or enforceability of any other provision of this Award Agreement,
which shall remain in full force and effect. 
The parties intend that any offending provision shall be enforced to the
fullest extent to which it is enforceable, that any unenforceable portion
thereof be severed from this Award Agreement, and that this Award Agreement, as
modified to sever any such unenforceable portion, shall be enforced to the
fullest extent permitted by law.  In
the event that all or any portion of the Nonqualified Stock Option is forfeited
pursuant to the terms of the Plan or this Award Agreement, such forfeiture
shall be automatic and shall not require any further action by the Participant
or the Company.

 

4

 

(g)                                 Notices.  All notices and other communications provided
for herein shall be in writing and shall be delivered by hand, telecopy or
facsimile transmission or sent by certified or registered mail, return receipt
requested, postage prepaid, addressed, if to the Participant, to the attention
of the Participant at the mailing address set forth on the Notice of
Nonqualified Stock Option Grant which is part of this Award Agreement (or to
such other address as the Participant shall have specified to Bunge in writing)
and, if to Bunge, to it at its principal offices which are currently located at
50 Main Street, 6th Floor, White Plains, New York 10606, attention Chief
Personnel Officer.  All such notices
shall be conclusively deemed to be received and shall be effective, (i) if
delivered by hand, upon receipt, (ii) if sent by telecopy or facsimile
transmission, upon confirmation of receipt by the sender of such transmission
or (iii) if sent by registered or certified mail, on the fifth day after
the day on which such notice is mailed.

 

(h)                                 Waiver.  The waiver by either party of compliance with
any provision of this Award Agreement by the other party shall not operate or
be construed as a waiver of any other provision of this Award Agreement, or of
any subsequent breach of such party of a provision of this Award Agreement.

 

(i)                                     Committee Decisions Final.  Any
dispute or disagreement which shall arise under, or as a result of, or pursuant
to, or in connection with, the interpretation or construction of the terms of
this Award Agreement or the Nonqualified Stock Option granted hereunder shall
be determined by the Committee, and any such determination (including, without
limitation, any determination of Fair Market Value) and any other determination
by the Committee under or pursuant to this Award Agreement and any
interpretation by the Committee of the terms of the Nonqualified Stock Option
shall be final and binding on all persons affected thereby.

 

(j)                                     Amendments.  The Committee shall
have the power to alter or amend the terms of this Award Agreement as set forth
herein from time to time, in any manner consistent with the provisions of Section 14
of the Plan, and any alteration or amendment of the terms of the Award by the
Committee shall, upon adoption, become and be binding on all persons affected
thereby without requirement for consent or other action with respect thereto by
any such person; provided, however, that, except as contemplated by Section 14
of the Plan, no such alteration or amendment may, without the consent of the
Participant, adversely affect the rights of the Participant under this
Award.  The Committee shall give written
notice to the Participant of any such alteration or amendment as promptly as
practicable after the adoption thereof. 
Notwithstanding any provision herein to the contrary, the Board shall
have the broad authority to amend this Award to take into account changes in
applicable tax laws, securities laws, accounting rules and other
applicable state and Federal laws.

 

(k)                                  Entire Agreement; Headings.  This
Award Agreement and the other related documents expressly referred to herein
set forth the entire agreement and understanding between the parties
hereto.  The headings of sections and
subsections herein are included solely for convenience of reference and shall
not affect the meaning of any of the provisions of this Award Agreement.

 

(l)                                     Counterparts.  This
Award Agreement may be executed in two or more counterparts, each of which
shall be deemed to be an original but all of which together shall constitute
one and the same instrument.

 

(m)                               Market Standoff Agreement.  The
Participant, if requested by Bunge and an underwriter of Common Stock (or other
securities) of Bunge, agrees not to sell or otherwise transfer or dispose of
any Common Stock (or other securities) of Bunge held by the Participant during
the period requested by the underwriter managing any public offering of Common
Stock (or other securities) of Bunge following the effective date of a
registration statement of Bunge filed under the U.S. Securities Act

 

5

 

of 1933, as amended, provided
that all similarly situated officers and directors of Bunge are required to
enter into similar agreements.  Such
agreement shall be in writing in a form satisfactory to Bunge and such
underwriter.  Bunge may impose
stop-transfer instructions with respect to the shares (or other securities)
subject to the foregoing restriction until the end of such period.

 

(n)                                 Share Ownership Guidelines.  The
Optionee, if subject to Bunge’s share ownership guidelines, agrees to comply
with the conditions and restrictions imposed by such guidelines with respect to
any Shares obtained in connection with the exercise of any Nonqualified Stock
Option.

 

(o)                                 Securities Laws Compliance.  No
Shares shall be issued or transferred under this Award Agreement unless the
Committee determines that such issue or transfer is in compliance with all
applicable U.S. federal, state and/or foreign securities laws and regulations,
including without limitation, Bermuda laws and regulations.

 

(p)                                 Change in Control.  Upon
a Change in Control, the Optionee’s Nonqualified Stock Option shall be subject
to Section 13(b) of the Plan.

 

6

 

Exhibit A

 

BUNGE
LIMITED

EQUITY
INCENTIVE PLAN

NOTICE OF
EXERCISE

 

The undersigned Participant hereby elects to exercise the Nonqualified
Stock Option (“Option”) with respect to the number
of Shares set forth below:

 

1.                                      Participant Information.

 

	
  Participant:

  
	
  Social Security Number:

  
	
  Work Location:

  
	
  Daytime Phone Number:

  

 

2.                                      Details
of Exercises.

 

	
  Date of

  Grant

  	
   

  	
  Number of Options to be

  Exercised

  	
   

  	
  Per Share Exercise

  Price (US $)

  	
   

  	
  Total Exercise Cost

  (US $)

  	
   

  	
  Method of Payment of Exercise
  Cost

  (select from methods “a” through “d”

  in section 4 below)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3.                                      Exercise Information.

 

o  Exercise my
Option upon receipt of this Notice of Exercise.

o  Exercise my Option when a Bunge
common share attains a price of $         on
the New York Stock Exchange Composite Index.

 

4.                                      Method of Payment of
Exercise Cost.  (Indicate form
of payment.)

 

a. Cashless
Exercise:

 

o  Subject to Bunge’s approval and
applicable laws, I irrevocably elect to have a
securities broker sell Shares and to deliver all or part of the sales proceeds
to Bunge pursuant to the Bunge cashless exercise program.

 

o  Sell    of the
Shares

 

o  Sell only enough Shares to satisfy
the Total Exercise Cost and/or tax withholding.

 

b. Check:

 

o  I enclose a cashier’s check or bank check in
the amount of the Total Exercise Cost and/or tax withholding.

 

c. Currently
Owned Shares:

 

o  Subject to
the approval of Bunge and applicable laws, I elect to surrender Shares that I
already own to satisfy the Total Exercise Cost and/or tax withholding.  The effectiveness of this Notice of Exercise
is contingent upon Bunge’s receipt of such Shares.

 

d.  Cash/Share Combination:

 

o  Subject
to the approval of Bunge and applicable laws, I elect to satisfy the Total
Exercise Cost and/or tax withholding through a combination of the above alternatives,
as described below:

 

 

 

5.                                      Tax Information.

 

o  I
am subject to U.S. income taxes.

o  I
am not subject to U.S. income taxes.

 

Tax Consequences.  I
UNDERSTAND THAT I MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF THE
EXERCISE OF THE OPTION.  I REPRESENT THAT
I HAVE CONSULTED WITH MY TAX CONSULTANT(S) IN CONNECTION WITH SUCH EXERCISE AND
THAT I AM NOT RELYING ON BUNGE FOR ANY TAX ADVICE.

 

 

6.                                      Employment Status.

 

o  I
am currently employed or provide services to Bunge.

 

o  My
employment with, or service to, Bunge terminated on                             .

 

I acknowledge and agree that the terms of the Award
Agreement (which is hereby incorporated by reference) under which the Option
was granted govern the terms and conditions applicable to the Option and the
exercise thereof.

 

	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  Signature of Participant

  

 

This is to verify our receipt and acceptance of this Notice of Exercise
and full payment of the Total Exercise Cost.

 

	
   

  	
  BUNGE LIMITED

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  Authorized Signature

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