Document:

Interim Facility Letter

 Exhibit 10.1 
 INTERIM FACILITY LETTER 
  

			
	From:	  	Citigroup Global Markets Limited and The Royal Bank of Scotland plc (each an “Arranger” and together the “Arrangers”);
		
	and from:	  	Citibank International Plc and The Royal Bank of Scotland plc (each an “Underwriter” and together the “Underwriters”);
		
	To:	  	Tarvalón, S.L. (“Bidco”), a limited liability corporation with legal domicile at Calle Don Ramon de la Cruz, 17, 1o Izq, Madrid 28001, with Tax Identification
Number (“N.I.F.”) B-84658202, incorporated by virtue of a public deed granted by the Spanish Public Notary Mr. Felipe-Jesus Carrion Herrero on 22nd March 2006 under number 364 of his file and registered at the Spanish Commercial Registry under Volume 22, 553, Book 0, Sheet 132, Section 8, Page M-403155;
		
	and to:	  	Smithfield Foods, Inc. (“Smithfield”) a corporation incorporated under the laws of the state of Virginia, USA.
		
		  	4 August 2006

 Dear Sirs, 
  

	1.	INTERPRETATION 

 Words and expressions defined in
Appendix 1 to this letter shall have the same meaning when used in this letter or in the Appendices to this letter. 
  

	2.	THE MAKING OF AN INTERIM TERM LOAN 

  

	 	(a)	The obligations of each Interim Lender to participate in the Interim Term Loan are subject to the conditions precedent that: 

  

	 	(i)	on the date on which that Interim Term Loan is to be made the Arrangers have received (or waived the requirement to receive) all of the documents and evidence set out in Appendix 4
(Conditions Precedent), in form and substance satisfactory to them (acting reasonably); 

  

	 	(ii)	on the date on which that Interim Term Loan is to be made the Representations are correct; 

  

 1 

	 	(iii)	no Default is continuing or would result from the making of the Interim Term Loan; and 

  

	 	(iv)	it is not illegal or contrary to applicable law or regulation for such Interim Lender to participate in the Interim Term Loan. 

  

	 	(b)	The proceeds of the Interim Term Loan are to be applied, directly or indirectly (including by way of on-loans), in or towards: 

  

	 	(i)	payment to the Vendor of the purchase price for the Acquisition (including any adjustment thereof); 

  

	 	(ii)	the refinancing of certain existing indebtedness of the Business and the Jean Caby Group; 

  

	 	(iii)	payment of all non-periodic costs, fees and expenses, stamp, registration and other Taxes incurred by or on behalf of Bidco or any other member of the Group in connection with the
Acquisition (and the financing thereof) and the Transaction Documents or as contemplated by the Structure Memorandum; and 

  

	 	(iv)	the general corporate purposes of the Group. 

  

	3.	NATURE OF AN INTERIM FINANCE PARTY’S RIGHTS AND OBLIGATIONS 

  

	 	(a)	Each Interim Lender will participate in the Interim Term Loan in the proportion which its relevant Interim Commitment bears to the Total Interim Commitments immediately before the
making of the Interim Term Loan. 

  

	 	(b)	Unless all the Interim Finance Parties agree otherwise: 

  

	 	(i)	the obligations of an Interim Finance Party under the Interim Documents are several; 

  

	 	(ii)	failure by an Interim Finance Party to perform its obligations does not affect the obligations of any other Party under the Interim Documents; 

  

	 	(iii)	no Interim Finance Party is responsible for the obligations of any other Interim Finance Party under the Interim Documents; 

  

	 	(iv)	the rights of an Interim Finance Party under the Interim Documents are separate and independent rights; 

  

	 	(v)	an Interim Finance Party may, except as otherwise stated in the Interim Documents, separately enforce those rights; and 

  

	 	(vi)	a debt arising under the Interim Documents to an Interim Finance Party is a separate and independent debt. 

  

 2 

	4.	UTILISATION 

  

	4.1	Giving of Drawdown Requests 

  

	 	(a)	Bidco may borrow the Interim Term Loan by giving to the Underwriters a duly completed Drawdown Request, provided that the Drawdown Request is received by the Underwriters before
10.00 a.m. (London time) one Business Day (or as otherwise agreed) before: 

  

	 	(i)	the proposed Drawdown Date; and 

  

	 	(ii)	the earlier of: 

  

	 	(1)	the latest date that Completion can occur in accordance with the Acquisition Agreement; and 

  

	 	(2)	15 August 2006. 

 A Drawdown Request is, once given,
irrevocable. 
  

	 	(b)	Bidco may only make one Drawing under the Interim Term Facility. 

  

	4.2	Completion of Requests 

 A Drawdown Request for the
Interim Term Loan will not be regarded as having been duly completed unless the Drawdown Date is the Completion Date and is also a Business Day and the amount of the Interim Term Loan requested does not exceed the Interim Term Facility. 

 

	5.	REPAYMENT AND PREPAYMENT 

 Bidco must repay (or, in
the case of (c) to (f) inclusive, prepay) the Interim Term Loan in full on the earliest of: 
  

	 	(a)	90 days after the Drawdown Date; 

  

	 	(b)	the date of written demand from the Arrangers (acting on the instructions of all the Interim Lenders) following the occurrence of a Default which is continuing;

  

	 	(c)	such date as Bidco may select on 1 Business Day prior written notice to the Arrangers or as otherwise agreed with the Interim Lenders; 

  

	 	(d)	the date on which any person or group of associated persons (being persons acting in concert (within the meaning set out in the City Code of Takeovers and Mergers) and/or any
connected persons (as defined in the Income and Corporation Taxes Act of 1988) of those persons) become entitled to exercise more than 50 per cent. of the votes exercisable at a general meeting of Smithfield; 

  

	 	(e)	the date, if any, on which Oaktree and Smithfield collectively cease to own, directly or indirectly, 50.1 per cent. of the issued share capital of Bidco; and

  

 3 

	 	(f)	the date on which Smithfield ceases to own, directly or indirectly, at least 331/3 per cent. of the issued share capital of Bidco.

 The Interim Term Loan shall be repaid or prepaid together with accrued but unpaid interest and all other amounts due under
the Interim Documents. 
  

	6.	INTEREST 

  

	6.1	Calculation of interest 

 The rate of interest on
the Interim Term Loan for each Interest Period is the percentage rate per annum equal to the aggregate of: 
  

	 	(a)	the Margin; 

  

	 	(b)	EURIBOR for such Interest Period; and 

  

	 	(c)	Mandatory Costs (if any). 

  

	6.2	Accrual and payment of interest 

 Interest will
accrue by reference to successive Interest Periods and will be capitalised at the end of each Interest Period and added to the amount of the Interim Term Loan. All accrued interest shall be immediately due and payable when the Interim Term Loan
becomes due and payable. 
  

	6.3	Interest on overdue amounts 

 If Bidco fails to pay
when due any amount payable by it under the Interim Documents, it must promptly on demand by the Arrangers pay interest on the overdue amount from its due date up to the date of actual payment, both before, on and after judgment. Interest on an
overdue amount is payable at a rate which is one per cent. per annum above the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted part of the Interim Term Loan. Interest (if unpaid) on an
overdue amount will be compounded with that overdue amount at the end of each seven day period but will remain immediately due and payable. 
  

	6.4	Interest Calculation 

 Interest shall be paid in
Euros and shall accrue from day to day and be calculated on the basis of the actual number of days elapsed and a 360 day year. 
  

	7.	REPRESENTATIONS AND UNDERTAKINGS 

  

	7.1	Representations 

 On the Drawdown Date, each Obligor
makes the Representations in favour of the Interim Finance Parties. 
  

	7.2	Undertakings 

 As and upon the date of this letter,
each Obligor undertakes to the Interim Finance Parties as set out in the Undertakings. 
  

 4 

	8.	TAXES 

  

	8.1	Gross-Up 

  

	 	(a)	Each Obligor must make all payments by it without any Tax Deduction, unless a Tax Deduction is required by law. 

  

	 	(b)	If any Obligor or an Interim Lender (in respect of a payment payable to that Interim Lender) becomes aware that that Obligor must make a Tax Deduction (or that there is any change
in the rate or the basis of a Tax Deduction) it shall promptly notify the Parties. 

  

	 	(c)	If any Tax Deduction is required by law to be made by any Obligor: 

  

	 	(i)	the amount of the payment due from that Obligor will automatically be increased to an amount which (after taking into account any Tax Deduction) leaves an amount equal to the amount
which would have been due if no Tax Deduction had been required; and 

  

	 	(ii)	that Obligor will: 

  

	 	(A)	make the relevant Tax Deduction and ensure that it does not exceed the minimum amount required by law; 

  

	 	(B)	pay to the relevant Taxation authorities that Tax Deduction and any payment required in connection with it within the time allowed by law; and 

  

	 	(C)	within thirty days of making any Tax Deduction or any payment required in connection with it, deliver to the relevant Interim Lender evidence reasonably satisfactory to that Interim
Lender that such Tax Deduction has been made or (as applicable) such payment paid to the appropriate Taxation authorities. 

  

	8.2	Tax Indemnity 

  

	 	(a)	Each Obligor shall (within five Business Days of demand by the Arrangers) pay to an Interim Lender an amount equal to the loss, liability or cost which that Interim Lender
determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Interim Lender in respect of an Interim Document. 

  

	 	(b)	Paragraph (a) above shall not apply: 

  

	 	(i)	to any loss, liability or cost for, or on account of, Tax assessed on an Interim Lender under the law of the jurisdiction in which: 

  

	 	(A)	that Interim Lender is incorporated or, if different, in which that Interim Lender is treated as resident for tax purposes; or 

  

	 	(B)	that Interim Lender’s Facility Office is located in respect of amounts received or receivable in that jurisdiction; 

  

 5 

	 	(ii)	if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Interim Lender; or

  

	 	(iii)	to the extent a loss, liability or cost is compensated for by payment of an amount under paragraph 8.1 (Gross-Up). 

  

	 	(c)	An Interim Lender making, or intending to make, a claim under paragraph (a) above shall promptly notify each Obligor of the event which has given, or will give, rise to the
claim. 

  

	8.3	Tax Credit 

 If an Obligor makes a Tax Payment and
an Interim Lender determines in its sole opinion that it has received, utilised and retained a Tax Credit attributable to that Tax Payment, that Interim Lender shall pay to that Obligor an amount which that Interim Lender determines in its sole
opinion will leave such Interim Lender (after that payment by it) in the same after-Tax position as it would have been in if the Tax Payment had not been required to be made by that Obligor. 
  

	8.4	Tax Affairs 

 Nothing in this letter obliges any
Interim Lender to disclose any information to any person regarding its Tax affairs or computations or interferes with the right of any Interim Lender to arrange its Tax affairs in whatever manner it thinks fit or obliges any Interim Lender to
investigate or claim any Tax Credit. 
  

	8.5	Assistance 

 Each Interim Lender will, if required
to do so by Bidco, complete such forms and certificates as may be necessary to enable Bidco to pay interest on the Interim Term Loan without being required to make a Tax Deduction. 
  

	9.	CHANGE IN CIRCUMSTANCES 

  

	9.1	Increased Costs 

  

	 	(a)	If the introduction of, or a change in, or a change in the interpretation, administration or application of, any law, regulation or treaty occurring after the date of this letter,
or compliance with any law, regulation or treaty made after the date of this letter results in any Interim Lender (a “Claiming Party”) or any Affiliate of it incurring any Increased Cost (as defined in paragraph (d) below):

  

	 	(i)	the Claiming Party will notify Bidco and the Arrangers of the circumstances giving rise to that Increased Cost as soon as reasonably practicable after becoming aware of it and will
as soon as reasonably practicable provide a certificate confirming the amount of that Increased Cost; and 

  

	 	(ii)	within five Business Days of demand by the Claiming Party, Bidco will pay to the Claiming Party the amount of any Increased Cost incurred by it (or any Affiliate of it).

  

 6 

	 	(b)	Bidco will not be obliged to compensate any Claiming Party under paragraph (a) above in relation to any Increased Cost: 

  

	 	(i)	to the extent already compensated for by payment of any Mandatory Costs or under paragraph 8 (Taxes) (or would have been so compensated but for an exception in paragraph 8.2
(Tax Indemnity)); or 

  

	 	(ii)	attributable to a change in the rate of Tax on the overall net income of the Claiming Party (or any Affiliate of it) or of the branch or office though which it lends the Interim
Term Loan; or 

  

	 	(iii)	attributable to the breach by the Claiming Party of any law, regulation or treaty. 

  

	 	(c)	If any Affiliate of an Interim Lender suffers a cost which would have been recoverable by that Interim Lender under this paragraph 9.1 if that cost had been imposed on that Interim
Lender, that Interim Lender shall be entitled to recover the amount of that cost under this paragraph 9.1 on behalf of the relevant Affiliate. 

  

	 	(d)	In this letter “Increased Cost” means: 

  

	 	(i)	an additional or increased cost; 

  

	 	(ii)	a reduction in any amount due, paid or payable to the Claiming Party under any Interim Document; or 

  

	 	(iii)	a reduction in the rate of return on the Claiming Party’s (or its Affiliate’s) overall capital, 

 suffered or incurred by a Claiming Party (or any Affiliate of it) as a result of it having entered into or performing its obligations under any Interim
Document or making or maintaining its participation in the Interim Term Loan. 
  

	9.2	Mitigation 

  

	 	(a)	If circumstances arise which entitle an Interim Lender: 

  

	 	(i)	to receive payment of an additional amount under paragraph 8 (Taxes); or 

  

	 	(ii)	to demand payment of any amount under paragraph 9.1 (Increased Costs), 

 then that Interim Lender will take all reasonable steps to mitigate the effect of those circumstances (including by transferring its rights and obligations under the Interim Documents to an Affiliate or changing its
Facility Office). 
  

	 	(b)	No Interim Lender will be obliged to take any such steps or action if to do so is likely in its opinion (acting in good faith) to be unlawful or to have an adverse effect on its
business, operations or financial condition or breach its banking policies or require it to disclose any confidential information. 

  

 7 

	 	(c)	Bidco shall, within three Business Days of demand by the relevant Interim Lender, indemnify such Interim Lender for any reasonable costs or expenses incurred by it as a result of
taking any steps or action under this paragraph. 

  

	 	(d)	This paragraph does not in any way limit, reduce or qualify the obligations of any Obligor under the Interim Documents. 

  

	10.	PAYMENTS 

  

	10.1	Place 

 Unless otherwise specified in an Interim
Document, on each date on which payment is to be made by any Party under an Interim Document, such Party shall pay, in the required currency, for value on the due date at such time and in such funds specified by the Interim Lenders as are customary
at that time for settlement of transactions in the relevant currency in the place of payment. All such payments shall be made to the account specified by the relevant Party for that purpose in London, New York or such other place as the relevant
Parties may agree. 
  

	10.2	Currency of Payment 

  

	 	(a)	Subject to paragraphs (b) to (d) (inclusive) below, any amount payable by any Obligor under the Interim Documents shall be paid in Euros. 

  

	 	(b)	Each payment in respect of losses shall be made in the currency in which the losses were incurred. 

  

	 	(c)	Each payment under paragraphs 8.1 (Gross-Up), 8.2 (Tax Indemnity) or 9.1 (Increased Costs) shall be made in the currency in which such costs, expenses or Taxes
are incurred. 

  

	 	(d)	Any amount expressed to be payable in a currency other than Euros shall be paid in that other currency. 

  

	10.3	No Set-off or Counterclaim 

 All payments made or to
be made by each Obligor under the Interim Documents must be paid in full without set-off or counterclaim. 
  

	10.4	Business Days 

  

	 	(a)	If any payment would otherwise be due under any Interim Document on a day which is not a Business Day, that payment shall be due on the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not). 

  

	 	(b)	During any such extension of the due date for payment of any principal or overdue amount, or any extension of the Interest Period, interest shall accrue and be payable at the rate
payable on the original due date. 

  

 8 

	10.5	Application of Moneys 

 If any Interim Lender
receives a payment that is insufficient to discharge all amounts then due and payable by any Obligor under any Interim Document, the Interim Lender shall apply that payment towards the obligations of the Obligors under the Interim Documents in the
following order: 
  

	 	(i)	first, in payment pro rata of any fees, costs and expenses of the Arrangers due but unpaid; 

  

	 	(ii)	second, in payment pro rata of any fees, costs and expenses of the Interim Lenders and any accrued interest, due but unpaid; 

  

	 	(iii)	third, in payment pro rata of any accrued interest in respect of the Interim Term Facility, due but unpaid; 

  

	 	(iv)	fourth, in payment pro rata of any principal due but unpaid; and 

  

	 	(v)	fifth, in payment pro rata of any other amounts due but unpaid under the Interim Documents. 

  

	11.	INDEMNITIES 

  

	11.1	General Indemnity 

 Each Obligor will indemnify each
Interim Lender within five Business Days of demand against any loss or liability which that Interim Lender reasonably incurs as a result of: 
  

	 	(a)	the occurrence of any Default; 

  

	 	(b)	the operation of paragraph 12 (Pro Rata Payments); 

  

	 	(c)	any failure by any Obligor to pay any amount due under an Interim Document on its due date; 

  

	 	(d)	the drawing not being made for any reason (other than as a result of the default or negligence of that Interim Lender) on the Drawdown Date specified in the Drawdown Request
requesting that drawing; or 

  

	 	(e)	the Interim Term Loan being repaid or prepaid otherwise than on the last day of an Interest Period provided that, if such repayment or prepayment from the proceeds of a financing
provided by the Interim Lenders, then the Parties shall work together in good faith to ensure, as far as reasonably practicable, that no breakage costs will be payable as a result of such refinancing, 

 including any loss on account of funds borrowed, contracted for or utilised to fund the Interim Term Loan or other amount payable under any Interim
Document. 
  

	11.2	Currency Indemnity 

  

	 	(a)	If: 

  

	 	(i)	 any amount payable by any Obligor under any Interim Document is received by any Interim Lender (or by an Arranger on behalf of any 

  

 9 

	 	 
Interim Lender) in a currency (the “Payment Currency”) other than that agreed in the relevant Interim Document (the “Agreed
Currency”), and the amount produced by such Interim Lender converting the Payment Currency so received into the Agreed Currency is less than the required amount of the Agreed Currency; or 

  

	 	(ii)	any amount payable by any Obligor under any Interim Document has to be converted from the Agreed Currency into another currency for the purpose of making, filing, obtaining or
enforcing any claim, proof, order or judgment, 

 then each Obligor will, as an independent obligation, within five Business
Days of demand indemnify the relevant Interim Lender to whom that sum is owed for any reasonable loss or liability incurred by it as a result of the conversion. 
  

	 	(b)	Any conversion required will be made at the prevailing rate of exchange on the date and in the market determined by the relevant Interim Lender, acting reasonably, as being most
appropriate for the conversion. The Obligors will also pay the reasonable costs of the conversion. 

  

	 	(c)	Each Obligor waives any right it may have in any jurisdiction to pay any amount under any Interim Document in a currency other than that in which it is expressed to be payable in
that Interim Document. 

  

	12.	PRO RATA PAYMENTS 

  

	12.1	Recoveries 

 Subject to paragraph 12.3
(Exceptions to Sharing), if any amount owing by any Obligor under any Interim Document to an Interim Lender (the “Recovering Interim Lender”) is discharged by payment, set-off or any other manner other than in accordance with
paragraph 10 (Payments) (the amount so discharged being a “Recovery”) then: 
  

	 	(a)	within three Business Days of receipt of the Recovery, the Recovering Interim Lender shall notify details of such Recovery to the Arrangers; 

  

	 	(b)	the Arrangers shall determine whether the amount of the Recovery is in excess of the amount which such Recovering Interim Lender should have received had such amount been paid under
paragraph 10 (Payments) (any such excess amount being the “Excess Recovery”); 

  

	 	(c)	within three Business Days of demand the Recovering Interim Lender shall pay to the Arrangers an amount equal to the Excess Recovery; 

  

	 	(d)	the Arrangers shall treat that payment as if it was a payment made by an Obligor to the Interim Lenders under paragraph 10 (Payments) and distribute it to the Interim Lenders
(other than the Recovering Interim Lender) accordingly; and 

  

 10 

	 	(e)	the Recovering Interim Lender shall be subrogated to the rights of the Interim Lenders which have shared in the payment under sub-paragraph (d) above and if for any reason the
Recovering Interim Lender is unable to rely on such rights of subrogation, the amount of the Excess Recovery shall be treated as not having been paid and (without double counting) the relevant Obligor will owe the Recovering Interim Lender a debt
(immediately due and payable) in an amount equal to the Excess Recovery. 

  

	12.2	Notification of Recovery 

 If any Recovery has to be
wholly or partly refunded by the Recovering Interim Lender after it has paid any amount to the Arrangers under paragraph 12.1(c) (Recoveries), each Interim Lender to which any part of the Excess Recovery (or amount in respect of it) was
distributed will, on request from the Recovering Interim Lender, pay to the Recovering Interim Lender that Interim Lender’s pro rata share of the amount (including any related interest) which has to be refunded by the Recovering Interim Lender.

  

	12.3	Exceptions to Sharing 

 Notwithstanding paragraph
12.1 (Recoveries), no Recovering Interim Lender will be obliged to pay any amount to the Arrangers or any other Interim Lender in respect of any Recovery: 
  

	 	(a)	if it would not after that payment have a valid claim against an Obligor in an amount equal to the Excess Recovery; or 

  

	 	(b)	which it receives as a result of legal proceedings taken by it to recover any amounts owing to it under the Interim Documents, which proceedings have been notified to the other
Interim Finance Parties and where the Interim Lender concerned had a right and opportunity to, but does not, either join in those proceedings or promptly after receiving notice commence and diligently pursue separate proceedings to enforce its
rights in the same or another court. 

  

	12.4	No Security 

 The provisions of this paragraph 12
shall not constitute a charge by any Interim Lender over all or any part of any amount received or recovered by it under any of the circumstances mentioned in this paragraph 12. 
  

	13.	SET-OFF 

  

	13.1	Set-off Rights 

 Without prejudice to its rights at
law, at any time any amount under any Interim Document (including but not limited to the Interim Term Loan) is immediately due and payable, an Interim Finance Party may at any time set off any obligation due and payable by any Obligor to it under an
Interim Document (to the extent beneficially owned by that Interim Finance Party) against any obligation then due for payment owed by it to that Obligor, regardless of currency, place of payment or booking branch of either obligation. The Interim
Finance Party may convert either obligation at a market rate of exchange in its ordinary course of business in order to effect such set-off. 
  

 11 

	14.	NOTICES 

  

	14.1	Mode of Service 

  

	 	(a)	Any notice, demand, consent or other communication (a “Notice”) made under or in connection with any Interim Document must, unless otherwise stated, be in writing
and made by letter, fax or telex or any other electronic communication approved by the Arrangers. 

  

	 	(b)	The address and fax number of each Party (and person for whose attention the Notice is to be sent) for the purposes of Notices given under or in connection with the Interim
Documents are, in the case of the Obligors: 

  

			
	Address:	  	 Tarvalón, S.L. and Smithfield Foods, Inc.
 200
Commerce Street
 Smithfield
 Virginia 23430
 USA

		
	Fax number:	  	+1 757 365 3045
		
	Attention:	  	Carey Dubois and Michael Flemming

  

	 	(i)	in the case of the Arrangers and the Underwriters: 

  

			
	Address:	  	 Citigroup Global Markets Limited
 C/O Citigroup Global
Markets Inc.
 388 Greenwich Street, NY, NY 10013
 USA

		
	Fax number:	  	+1 646 291 5700
		
	Attention:	  	David Harris
		
	Address:	  	 The Royal Bank of Scotland plc
 Lending
Operations
 101 Park Ave 6th Floor
 New York, NY 10178

USA

		
	Fax number:	  	+1 212 401 1336
		
	Attention:	  	Steven Imbriaco
		
	Address:	  	 Citibank International Plc
 UK Loans Processing
Unit
 5th Floor
 33 Canada Square
 London E14 5LB
 UK

		
	Fax number:	  	+44 20 7942 7512
		
	Attention:	  	Citibank International Plc London, Loan Processing Unit

  

 12 

	 	(ii)	any other address and facsimile number notified in writing by that party for this purpose to the Arrangers (or in the case of the Arrangers, notified by the Arrangers to the other
parties) by not less than five Business Days’ notice. 

  

	 	(c)	Any Notice given to the Arrangers will be effective only: 

  

	 	(i)	if it is marked for the attention of the department or officer specified by the Arrangers for receipt of Notices; and 

  

	 	(ii)	when actually received by the Arrangers. 

  

	14.2	Deemed Service 

  

	 	(a)	Subject to paragraph (b) below, a Notice will be deemed to be given as follows: 

  

	 	(i)	if by letter delivered personally, when delivered; 

  

	 	(ii)	if by letter sent by post, five days after posting (first class or equivalent postage prepaid in a correctly addressed envelope); 

  

	 	(iii)	if by fax, when received in legible form; 

  

	 	(iv)	if by e-mail, fax or telex or any other electronic communication, when received in legible form; and 

  

	 	(v)	if by posting to an electronic website, at the time of notification to the relevant recipient of such posting or (if later) the time when the recipient was given access to such
website. 

  

	 	(b)	A Notice given in accordance with paragraph (a) above but received on a non-working day or after business hours in the place of receipt will only be deemed to be given on the
next working day in that place. 

  

	14.3	Language 

  

	 	(a)	Any Notice must be in English. 

  

	 	(b)	All other documents provided under or in connection with any Interim Document must be: 

  

	 	(i)	in English; or 

  

 13 

	 	(ii)	if not in English, accompanied by a certified English translation, in which case the English translation will prevail unless the document is a constitutional, statutory or other
official document. 

  

	15.	CONFIDENTIALITY 

  

	 	(a)	Each Interim Finance Party will keep the Interim Documents and any information supplied to it by or on behalf of any Obligor under the Interim Documents confidential, provided that
it may disclose any such document or information: 

  

	 	(i)	which is publicly available (other than by breach of this paragraph 17 by such Interim Finance Party); 

  

	 	(ii)	if and to the extent required by law or regulation or at the request of an administrative authority (including any tax or bank supervisory authority); 

  

	 	(iii)	to its auditors and professional advisors; 

  

	 	(iv)	to any direct or indirect shareholder of Bidco or any Group Company; 

  

	 	(v)	in connection with any legal or arbitration proceedings; 

  

	 	(vi)	for the purpose of obtaining any consent, making any filing, registration or notarisation or paying any stamp or registration tax or fee in connection with any of the Interim
Documents; 

  

	 	(vii)	with the agreement of Bidco; or 

  

	 	(viii)	to any Affiliate to the extent required as part of such Interim Finance Party’s credit control process. 

  

	 	(b)	This paragraph 15 replaces any previous confidentiality undertaking given by any Interim Finance Party in connection with this letter prior to it becoming a Party other than the
confidentiality letter dated on or about the date of this letter relating to the disclosure of information under the Acquisition Agreement. 

  

	16.	CHANGES TO PARTIES 

  

	16.1	No Transfers by Obligors 

 No Obligor may assign,
novate or transfer all or any part of its rights and obligations under any Interim Documents. 
  

	16.2	Transfers by Interim Lenders 

  

	 	(a)	An Interim Lender may subject to paragraph (b) below assign its rights and/or obligations under any Interim Document. 

  

	 	(b)	An Interim Lender may not assign or transfer its rights and/or obligations under any Interim Document without the prior written consent of Bidco, unless such assignment is to an
Affiliate of that Interim Lender and is at no cost to the Obligors. 

  

 14 

	17.	GUARANTEE AND INDEMNITY 

  

	17.1	Guarantee and indemnity 

 The Guarantor irrevocably
and unconditionally jointly and severally: 
  

	 	(a)	guarantees to each Interim Finance Party punctual performance by Bidco of all Bidco’s obligations under the Interim Documents; 

  

	 	(b)	undertakes with each Interim Finance Party that whenever Bidco does not pay any amount when due under or in connection with any Interim Document, the Guarantor shall immediately on
demand pay that amount as if it was the principal obligor; and 

  

	 	(c)	indemnifies each Interim Finance Party immediately on demand against any cost, loss or liability suffered by that Interim Finance Party if any obligation guaranteed by it is or
becomes unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount which that Interim Finance Party would otherwise have been entitled to recover. 

  

	17.2	Continuing Guarantee 

 This guarantee is a
continuing guarantee and will extend to the ultimate balance of sums payable by Bidco under the Interim Documents, regardless of any intermediate payment or discharge in whole or in part. 
  

	17.3	Reinstatement 

 If any payment by Bidco or any
discharge given by an Interim Finance Party (whether in respect of the obligations of Bidco or any security for those obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event: 
  

	 	(a)	the liability of the Guarantor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and 

  

	 	(b)	each Interim Finance Party shall be entitled to recover the value or amount of that security or payment from the Guarantor, as if the payment, discharge, avoidance or reduction had
not occurred. 

  

	17.4	Waiver of defences 

 The obligations of the
Guarantor under this paragraph 17 will not be affected by an act, omission, matter or thing which, but for this paragraph 17, would reduce, release or prejudice any of its obligations under this paragraph 17 (without limitation and whether or not
known to it or any Interim Finance Party) including: 
  

	 	(a)	any time, waiver or consent granted to, or composition with, Bidco or other person; 

  

	 	(b)	the release of Bidco or any other person under the terms of any composition or arrangement with any creditor of any member of the Group; 

  

 15 

	 	(c)	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, Bidco or
other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; 

  

	 	(d)	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of Bidco or any other person; 

  

	 	(e)	any amendment, novation, supplement, extension (whether of maturity or otherwise) or restatement (in each case, however fundamental and of whatsoever nature) or replacement of a
Interim Document or any other document or security; 

  

	 	(f)	any unenforceability, illegality or invalidity of any obligation of any person under any Interim Document or any other document or security; or 

  

	 	(g)	any insolvency or similar proceedings. 

  

	17.5	Guarantor Intent 

 Without prejudice to the
generality of paragraph 17.4 (Waiver of Defences), the Guarantor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the
Interim Documents and/or any facility or amount made available under any of the Interim Documents for the purposes of or in connection with any of the following (other than, for the avoidance of doubt, any refinancing of the Interim Term Loan):
business acquisitions of any nature; increasing working capital; enabling investor distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new
borrowers; any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing. 
  

	17.6	Immediate recourse 

 The Guarantor waives any right
it may have of first requiring any Interim Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Guarantor under this paragraph 17.
This waiver applies irrespective of any law or any provision of a Interim Document to the contrary. 
  

	17.7	Appropriations 

 Until all amounts which may be or
become payable by the Obligors under or in connection with the Interim Documents have been irrevocably paid in full, each Interim Finance Party (or any trustee or agent on its behalf) may: 
  

	 	(a)	refrain from applying or enforcing any other moneys, security or rights held or received by that Interim Finance Party (or any trustee or agent on its behalf) in respect of those
amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Guarantor shall not be entitled to the benefit of the same; and 

  

 16 

	 	(b)	hold in an interest-bearing suspense account any money received from the Guarantor or on account of the Guarantor’s liability under this paragraph 17. 

 

	17.8	Deferral of Guarantors’ rights 

 Until all
amounts which may be or become payable by the Obligors under or in connection with the Interim Documents have been irrevocably paid in full and unless the Arrangers otherwise direct, the Guarantor will not exercise any rights which it may have by
reason of performance by it of its obligations under the Interim Documents: 
  

	 	(a)	to be indemnified by Bidco; and/or 

  

	 	(b)	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Interim Finance Parties under the Interim Documents or of any other
guarantee or security taken pursuant to, or in connection with, the Interim Documents by any Interim Finance Party. 

  

	17.9	Additional security 

 This guarantee is in addition
to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Interim Finance Party. 
  

	17.10 	Covenant to release 

 At the time upon which all
amounts payable by the Obligors under or in connection with the Interim Documents have been irrevocably paid in full, the Interim Lenders shall at the request and at the cost and expense of the Guarantor, take any action necessary to release the
Guarantor from its obligations under this letter. 
  

	18.	PARTIAL INVALIDITY 

 If any provision of the Interim
Documents is or becomes illegal, invalid or unenforceable in any jurisdiction that shall not affect the validity or enforceability in that jurisdiction of any other term of the Interim Documents or the validity or enforceability in other
jurisdictions of that or any other term of the Interim Documents. 
  

	19.	COUNTERPARTS 

 This letter may be executed in any
number of counterparts and all of those counterparts taken together shall be deemed to constitute one and the same instrument. 
  

	20.	GOVERNING LAW 

 This letter is, and any dispute or
proceedings arising out of or relating to this letter shall be, governed by English law. 
  

 17 

	21.	JURISDICTION 

  

	21.1	Submission to Jurisdiction 

  

	 	(a)	For the benefit of each Interim Finance Party, each Obligor agrees that the courts of England have exclusive jurisdiction to hear, decide and settle any dispute or proceedings
arising out of or relating to any Interim Document (including as to existence, validity or termination) (each a “Dispute”) and for the purpose of enforcement of any judgment against assets. Each Obligor irrevocably submits to the
jurisdiction of the English courts. 

  

	 	(b)	Nothing in paragraph (a) above limits or prevents any Interim Finance Party from taking proceedings against any Obligor in any other court nor shall the taking of proceedings
in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law. 

  

	21.2	Forum Convenience 

 Each Obligor: 
  

	 	(a)	agrees that the courts of England are the most appropriate and convenient courts to settle any Dispute and waives any objection to the courts of England on grounds of inconvenient
forum or otherwise; and 

  

	 	(b)	agrees that a judgment or order of an English court in connection with a Dispute is conclusive and binding on it and may be enforced against it in the courts of any other
jurisdiction. 

  

	21.3	Service of Process 

 Without prejudice to any other
mode of service permitted by law, each Obligor: 
  

	 	(a)	irrevocably appoints Chanford Limited (Company Number 5864607) as its agent for service of process in connection with any Dispute before the English courts;

  

	 	(b)	agrees that service of any claim, form, notice or other document for the purpose of any proceedings shall be duly served upon it if delivered or sent by registered post to Chanford
Limited at FAO: Michael Cole / Charles Griffith, C/O Hunton & Williams, 30 St Mary Axe, London, EC3A 8EP or such other address in England or Wales as Bidco may notify from time to time to the Arrangers by not less than five Business Days
notice; and 

  

	 	(c)	agrees that failure by such agent to notify Bidco of such proceedings or claim, form, notice or other document will not invalidate the proceedings or service of such claim, form,
notice or other document. 

 Each Obligor may irrevocably appoint another company incorporated in England as its agent for
service of process provided that the details of such company are notified in writing to the Arrangers at or prior to the making of such appointment. 
  

 18 

	
	Yours faithfully,
	
	 /s/ Cyril Terjiman

	For and on behalf of
	Citigroup Global Markets Limited (as Arranger)
	
	 /s/ Michaela V. Galluzzo

	For and on behalf of
	The Royal Bank of Scotland plc (as Arranger)
	
	 /s/ Cyril Terjiman

	For and on behalf of
	Citibank International Plc (as Underwriter)
	
	 /s/ Michaela V. Galluzzo

	For and on behalf of
	The Royal Bank of Scotland plc (as Underwriter)

  

 19 

			
	Accepted and Agreed.
	
	For and on behalf of
	Tarvalón S.L.
		
	Signed:	 	 /s/ Michael H. Cole

	Name:	 	Michael H. Cole
	Title:	 	Director
	
	Date: 3 August 2006
	
	For and on behalf of
	Smithfield Foods, Inc
		
	Signed:	 	 /s/ C. Larry Pope

	Name:	 	C. Larry Pope
	Title:	 	President and Chief Operating Officer
	
	Date: 3 August 2006

  

 20 

 APPENDIX 1 
 INTERPRETATION 
  

	1.	Definitions 

 In this letter: 
 “Acquisition” means the acquisition by Bidco and its Subsidiaries of the Business. 
 “Acquisition Agreement” means the agreement dated 26 June 2006 governing the terms of the Acquisition and made between the Vendor,
Bidco and Smithfield together with all other documents, transfers and instruments entered into by the Vendor, Bidco and Smithfield and executed or to be executed pursuant to, or in connection with, the Acquisition (in each case as amended, waived or
varied from time to time). 
 “Affiliate” means, in relation to any person, a Subsidiary or a Holding Company of that person
or any other Subsidiary of that Holding Company. 
 “Authorisation” means an authorisation, consent, approval, resolution,
licence, exemption, filing or registration. 
 “Business” has the meaning given to that term in the Acquisition Agreement.

 “Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for general business in London, New
York and (in relation to any date for payment or purchase of euro) any TARGET Day. 
 “Completion” means completion of the
Acquisition in accordance with the Acquisition Agreement. 
 “Completion Date” means the date on which Completion takes
place. 
 “Default” means an event or circumstance set out in Part III (Default) of Appendix 5. 
 “Drawdown Date” means the date of or proposed date for the making of the Drawing. 
 “Drawdown Request” means a duly completed signed notice requesting the Interim Term Loan in the form set out in Appendix 2 (Form of
Drawdown Request) to this letter. 
 “Drawing” means the drawing by Bidco of the Interim Term Loan. 
 “EURIBOR” means, in relation to the Interim Term Loan: 
  

	 	(a)	for the first Interest Period, the average of the rates offered by each of the Underwriters at 11am (Brussels time) on the day falling one Business Day prior to the Drawdown Date
for the offering of deposits in Euro for a comparable amount for a period comparable to that Interest Period; and 

  

 21 

	 	(b)	for each subsequent Interest Period, the applicable screen rate of 11am (Brussels time) on the Rate Fixing Day for the offering of deposits in Euro for a period comparable to that
Interest Period. 

 “Euro” or “EUR” mean the single currency unit of the Participating Member
States. 
 “Existing Smithfield Group” means Smithfield and its Subsidiaries (other than Holdco and its Subsidiaries).

 “Facility Office” means the office through which an Interim Lender will perform its obligations under the Interim Facility
notified to the Arrangers in writing by not less than five Business Days’ notice. 
 “Financial Indebtedness” means any
indebtedness (without double counting and for the avoidance of doubt excluding any Subsidiaries) for or in respect of: 
  

	 	(a)	monies borrowed; 

  

	 	(b)	any amount raised by acceptance under any acceptance credit facility or by a bill discounting or factoring credit facility; 

  

	 	(c)	any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; 

  

	 	(d)	any lease or hire purchase contract or other agreement which in each case would, in accordance with the generally accepted accounting principles in the jurisdiction of incorporation
of the relevant company, be treated as a finance or capital lease; 

  

	 	(e)	receivables sold or discounted (other than any receivables to the extent they are sold or discounted on a non-recourse basis); 

  

	 	(f)	any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative
transaction, only the marked to market value shall be taken into account); 

  

	 	(g)	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial
institution; 

  

	 	(h)	an advance or deferred purchase agreement if such agreement was entered into primarily as a method of raising finance; 

  

	 	(i)	any arrangement entered into primarily as a method of raising finance pursuant to which an asset sold or otherwise disposed of by an Obligor or a member of the Existing Smithfield
Group may be re-acquired by an Obligor or a member of the Existing Smithfield Group (whether following the exercise of an option or otherwise); 

  

 22 

	 	(j)	any amount raised under any other transaction (including a forward sale or purchase agreement) having the principal commercial effect of a borrowing; and 

 

	 	(k)	any liability in respect of any guarantee or indemnity or similar assurance against financial loss for any of the items referred to in the preceding paragraphs of this definition.

 “Financial Statements” means Smithfield’s audited financial statements for its financial year ended
30 April 2006. 
 “Guarantor” means Smithfield. 
 “Group” means Bidco and its Subsidiaries for the time being. 
 “Holdco” means Bacarreto, S.L. 
 “Holding Company” means in relation to any person, any other body corporate or other entity of which it is a Subsidiary. 
 “Interest Period” means a period of 1 or 2 weeks or 1 month as selected by Bidco in consultation with the Underwriters or such other period as Bidco and the Underwriters may agree. 
 “Interim Commitment” means: 
  

	 	(a)	for each Underwriter in respect of the Interim Term Facility, EUR164,488,662.50 and the amount of any other Interim Commitment in respect thereof so designated which it acquires;
and 

  

	 	(b)	for any other Interim Lender, the amount of any Interim Commitment it acquires, 

 in each case to the extent not cancelled, reduced or transferred by it or to it under this letter. 
 “Interim Documents” means this letter and any other document designated as an “Interim Document” by the Arrangers and Bidco. 
 “Interim Finance Parties” means the Underwriters, a group of banks or financial institutions that are regularly engaged in or established for the making of, or purchasing or investing in, loans and/or
debt securities which become Interim Lenders pursuant to paragraph 16 (Changes to Parties) and the Arrangers. 
 “Interim
Lender” means: 
  

	 	(a)	at the date of this letter, each of the Underwriters; and 

  

	 	(b)	any other person to whom any participation or interest in any Interim Term Loan is assigned after the date of this letter under paragraph 16 (Changes to Parties),

  

 23 

 provided that in each case it has an outstanding Interim Commitment or participation in any Interim Term
Loan or any amount is (actually or contingently) owed to or by it under the Interim Documents in this capacity. 
 “Interim Term
Loan” means the principal amount of the borrowing under the Interim Term Facility as increased pursuant to paragraph 6.2 (Accrual and payment of interest) or the principal amount outstanding of that borrowing at any time (as so
increased). 
 “Interim Term Facility” means the term loan facility made available in accordance with this letter being EUR
328,977,325. 
 “Jean Caby” means Jean Caby SAS, a company incorporated in France. 
 “Jean Caby Group” means Smithfield France SAS and its Subsidiaries. 
 “Majority Interim Lenders” means, at any time, Interim Lenders whose Interim Commitments then aggregate more than 662/3 per cent. of the Total Interim Commitments. 
 “Mandatory Costs” means the percentage rate per annum
calculated by the Arrangers in accordance with Appendix 3 (Calculation of the Mandatory Costs) to this letter. 
 “Margin” means 2.5% per annum. 
 “Material Adverse Effect” means a material adverse effect on
or change in: 
  

	 	(a)	the business or financial condition of Smithfield and its Subsidiaries taken as a whole; or 

  

	 	(b)	the ability of Smithfield to perform its payment obligations under any of the Interim Documents. 

 “Material Subsidiary” means, at any time a Subsidiary of Smithfield which: 
  

	 	(a)	has earnings before interest, tax, depreciation and amortisation representing five per cent. or more of the consolidated earnings before interest, tax, depreciation and amortisation
of Smithfield and its Subsidiaries; or 

  

	 	(b)	has gross assets (excluding intra-group items) representing five per cent. or more of the gross assets of Smithfield and its Subsidiaries taken as a whole. 

“Oaktree” means OCM Luxembourg EPOF Meats Holdings SARL and OCM Luxembourg OPPS Meats Holdings SARL and any Affiliates or funds
managed or advised by it and their or any subsequent successors, assignees or transferees. 
 “Obligors” means Bidco and
Smithfield. 
 “Participating Member State” means any member state of the European Communities that adopts or has adopted the
Euro as its lawful currency in accordance with the legislation of the European Community relating to Economic and Monetary Union. 
  

 24 

 “Party” means a party to this letter. 
 “Rate Fixing Day” means the second TARGET Day before the first day of any period for which an interest rate is to be determined.

 “Relevant Jurisdiction” means, in relation to an Obligor: 
  

	 	(a)	its jurisdiction of incorporation; and 

  

	 	(b)	any jurisdiction where it conducts its business. 

 “Representation” means a representation set out in Part I (Representation) of Appendix 5. 
 “Reservations” means the principle that equitable remedies may be granted or refused at the discretion of the court, the limitation on enforcement by laws relating to insolvency, reorganisation and other laws generally
affecting the rights of creditors, the time barring of claims under any applicable limitation statutes, the possibility that an undertaking to assume liability for or to indemnify a person against non-payment of UK stamp duty may be void, defences
of set-off or counterclaim and similar principles, rights and defences under the laws of any jurisdiction in which the relevant obligation may have to be performed and any other reservations or qualifications as to matters of law which are referred
to in any legal opinion referred to in Appendix 4 (Conditions Precedent). 
 “Security Interest” means any mortgage,
charge (fixed or floating), pledge, lien, hypothecation or other security interest. 
 “Structure Memorandum” means the
structure paper entitled “Project Slice” describing in outline the Group (following Completion) and the Acquisition and prepared by the Guarantor in the agreed form. 
 “Subsidiary” means in relation to a company or corporation a company or corporation: 
  

	 	(a)	which is controlled, directly or indirectly, by the first-mentioned company or corporation; 

  

	 	(b)	more than half the issued share capital of which is beneficially owned, directly or indirectly, by the first-mentioned company or corporation; or 

  

	 	(c)	which is a Subsidiary of another Subsidiary of the first-mentioned company or corporation, 

 and, for these purposes, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to
determine the composition of a majority of its board of directors or equivalent body. 
 “TARGET” means Trans-European
Automated Real-time Gross Settlement Express Transfer payment system. 
  

 25 

 “TARGET Day” means any day on which TARGET is open for the settlement of payments in
Euro. 
 “Tax” means any present or future tax, levy, impost, duty or other charge or withholding of a similar nature
(including any interest, penalty or fine payable in connection with any failure to pay or delay in paying any of the same) and “Taxation” shall be construed accordingly. 
 “Tax Credit” means a credit against, or a relief or remission for, or repayment of, any Tax. 
 “Tax Deduction” means a deduction or withholding for or on account of Tax from any payment under an Interim Document. 
 “Tax Payment” means either the increase in a payment made by an Obligor to an Interim Finance Party under paragraph 8.1 (Gross-Up)
or a payment under paragraph 8.2 (Tax Indemnity). 
 “Total Interim Commitments” means at any time the aggregate of
all the Interim Commitments. 
 “Transaction Documents” means the Interim Documents and the Acquisition Agreement.

 “Undertaking” means an undertaking set out in Part II (Undertakings) of Appendix 5. 
 “VAT” means value added tax as provided for in the Value Added Tax Act 1994 or any subordinate legislation and any other tax of a similar
nature. 
 “Vendor” means Sara Lee Corporation. 
  

	2.	Other References 

  

	 	(a)	In this letter, unless a contrary intention appears, a reference to: 

  

	 	(i)	“agreed form” means a document which is in a form agreed and/or approved by or on behalf of Bidco and the Arrangers; 

  

	 	(ii)	an “agreement” includes any legally binding arrangement, contract, deed or instrument (in each case whether oral or written); 

  

	 	(iii)	an “amendment” includes any amendment, supplement, variation, novation, modification, replacement or restatement and “amend” and “amended” shall
be construed accordingly; 

  

	 	(iv)	“assets” includes properties, assets, businesses, undertakings, revenues and rights of every kind, present or future, actual or contingent, and any interest in any
of the above; 

  

 26 

	 	(v)	a “disposal” includes any sale, transfer, lease, licence or other disposal, whether voluntary or involuntary and “dispose” will be construed
accordingly; 

  

	 	(vi)	a “guarantee” includes: 

  

	 	(A)	an indemnity, counter-indemnity, guarantee or assurance against loss in respect of any indebtedness of any person; and 

  

	 	(B)	any other obligation of any person, whether actual or contingent: 

  

	 	(I)	to pay, purchase, provide funds (whether by the advance of money to, the purchase of or subscription for shares or other investments in any person, the purchase of assets or
services, the making of payments under an agreement or otherwise) for the payment of, to indemnify against the consequences of default in the payment of, or otherwise be responsible for, any indebtedness of any other person; or

  

	 	(II)	to be responsible for the performance of any obligations by or the solvency of any other person, 

 and “guaranteed”, “guarantor” and “Guarantor” shall be construed accordingly; 
  

	 	(vii)	“including” means including without limitation and “includes” and “included” shall be construed accordingly;

  

	 	(viii)	“indebtedness” includes any obligation (whether incurred as principal or surety and whether present or future, actual or contingent) for the payment or repayment of
money; 

  

	 	(ix)	“losses” includes losses, actions, damages, claims, proceedings, costs, demands, expenses (including legal and other fees) and liabilities of any kind and
“loss” shall be construed accordingly; 

  

	 	(x)	a “month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

  

	 	(A)	(subject to sub-paragraph (C) below) if any such period would otherwise end on a day which is not a Business Day, it shall end on the next Business Day in the same calendar
month or, if there is none, on the preceding Business Day; 

  

	 	(B)	if there is no numerically corresponding day in the month in which that period is to end, that period shall end on the last Business Day in that later month; and

  

 27 

	 	(C)	if the Interest Period begins on the last Business Day of a calendar month, the Interest Period shall end on the last Business Day in the calendar month in which the Interest Period
is to end, 

 and references to “months” shall be construed accordingly; 
  

	 	(xi)	to a Default being “outstanding” means that such Default is continuing and has not been remedied or waived; 

  

	 	(xii)	an Interim Lender’s “participation” or “share” in a Drawing means the amount of its share in any Interim Term Loan; 

 

	 	(xiii)	a “person” includes any individual, trust, firm, fund, company, corporation, partnership, joint venture, government, state or agency of a state or any undertaking
or other association (whether or not having separate legal personality) or any two or more of the foregoing; and 

  

	 	(xiv)	a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but if not having the force of law
compliance with which is customary) of any governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation. 

  

	 	(b)	In this letter, unless a contrary intention appears: 

  

	 	(i)	a reference to a Party includes a reference to that Party’s successors and permitted assignees or permitted transferees but does not include that Party if it has ceased to be a
party under this letter; 

  

	 	(ii)	references to paragraphs, clauses, subclauses and appendices are references to, respectively, paragraphs, clauses and subclauses of and appendices to this letter and references to
this letter include its appendices; 

  

	 	(iii)	a reference to (or to any specified provision of) any agreement (including any of the Interim Documents) is to that agreement (or that provision) as amended from time to time
(unless such amendment is contrary to the terms of any Interim Document); 

  

	 	(iv)	a reference to a statute, statutory instrument or provision of law is to that statute, statutory instrument or provision of law, as it may be applied, amended or re-enacted from
time to time; 

  

	 	(v)	a reference to a time of day is to London (England) time; 

  

	 	(vi)	the index to and the headings in this letter are for convenience only and are to be ignored in construing this letter; and 

  

	 	(vii)	words imparting the singular include the plural and vice versa. 

  

 28 

 APPENDIX 2 
 FORM OF DRAWDOWN REQUEST 
 To: Citibank International Plc
and The Royal Bank of Scotland plc as the Underwriters 
 From: Tarvalón, S.L. 
 Date: [•] 
 EUR 328,977,325 Interim Facility Letter 
 dated 4 August 2006 (the “Interim Facility Letter”) 
  

	1.	We refer to the Interim Facility Letter. This is a Drawdown Request. Words and expressions defined in the Interim Facility Letter shall have the same meanings when used in this
Drawdown Request. 

  

	2.	We wish to borrow the Interim Term Loan in an amount of EUR 328,977,325 on the following terms: 

  

	 	(a)	Drawdown Date: [•] 

  

	 	(b)	Amount: EUR 328,977,325 

  

	3.	Our [payment/delivery] instructions are: [•]. 

  

	4.	We confirm that each condition precedent under the Interim Facility which must be satisfied in order to drawdown the Interim Term Loan is (or will be on the proposed Drawdown Date)
so satisfied, that the Representations are correct as at today’s date and will be correct on the Drawdown Date and that no Default has occurred which is continuing. 

  

	5.	This Drawdown Request is irrevocable. 

 By: 
 Tarvalón S.L. 
  

 29 

 APPENDIX 3 
 CALCULATION OF THE MANDATORY COSTS 
  

	1.	The Mandatory Cost is an addition to the interest rate to compensate Interim Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the
Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 

  

	2.	On the first day of each Interest Period (or as soon as possible thereafter), the Arrangers shall calculate, as a percentage rate, a rate (the “Additional Cost
Rate”) for each Interim Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the Arrangers as a weighted average of the Interim Lenders’ Additional Cost Rates (weighted in proportion to the
percentage participation of each Interim Lender in the Interim Term Loan) and will be expressed as a percentage rate per annum. 

  

	3.	The Additional Cost Rate for any Interim Lender lending from a Facility Office in a country that has the euro as its currency will be the percentage notified by that Interim Lender
to the Arrangers. This percentage will be certified by that Interim Lender in its notice to the Arrangers to be its reasonable determination of the cost (expressed as a percentage of that Interim Lender’s participation in the Interim Term Loan
made from that Facility Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office. 

  

	4.	The Additional Cost Rate for any Interim Lender lending from a Facility Office in the United Kingdom will be calculated by the Arrangers as follows: 

  

	 	(a)	in relation to a sterling Interim Term Loan: 

  

					
		 	 AB + C (B –D) + E × 0.01
	 	per cent. per annum
		 	100 – (A + C)	 

  

	 	(b)	in relation to a Interim Term Loan in any currency other than sterling: 

  

					
		 	 E × 0.01
	 	per cent. per annum.
		 	300	 

 Where: 
  

	 	A	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Interim Lender is from time to time required to maintain as an interest
free cash ratio deposit with the Bank of England to comply with cash ratio requirements. 

  

	 	B	is the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the Interim Term Loan is an unpaid sum, the additional rate of interest specified in
paragraph 6.3 (Interest on overdue amounts) payable for the relevant Interest Period on the Interim Term Loan. 

  

 30 

	 	C	is the percentage (if any) of Eligible Liabilities which that Interim Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	 	D	is the percentage rate per annum payable by the Bank of England to the Arrangers on interest bearing Special Deposits. 

  

	 	E	is designed to compensate Interim Lenders for amounts payable under the Fees Rules and is calculated by the Arrangers as being the average of the most recent rates of charge
supplied by the Interim Lenders to the Arrangers pursuant to paragraph 7 below and expressed in pounds per £1,000,000. 

  

	5.	For the purposes of this Schedule: 

  

	 	(a)	“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998
or (as may be appropriate) by the Bank of England; 

  

	 	(b)	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in
respect of the payment of fees for the acceptance of deposits; 

  

	 	(c)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
pursuant to the Fees Rules but taking into account any applicable discount rate); and 

  

	 	(d)	“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 

  

	6.	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places. 

  

	7.	If requested by the Arrangers, each Interim Lender shall, as soon as practicable after publication by the Financial Services Authority, supply to the Arrangers, the rate of charge
payable by that Interim Lender to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as being the average of
the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank. 

  

	8.	In addition, each Interim Lender shall supply any information required by the Arrangers for the purpose of calculating its Additional Cost Rate. In particular, but without
limitation, each Interim Lender shall supply the following information on or prior to the date on which it becomes an Interim Lender: 

  

	 	(a)	the jurisdiction of its Facility Office; and 

  

	 	(b)	any other information that the Arrangers may reasonably require for such purpose. 

  

 31 

 Each Interim Lender shall promptly notify the Arrangers of any change to the information provided by it
pursuant to this paragraph. 
  

	9.	The percentages of each Interim Lender for the purpose of A and C above and the rates of charge of each Interim Lender for the purpose of E above shall be determined by the
Arrangers based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless an Interim Lender notifies the Arrangers to the contrary, each Interim Lender’s obligations in relation to cash ratio
deposits and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office. 

  

	10.	The Arrangers shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Interim Lender and shall be entitled
to assume that the information provided by any Interim Lender pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

  

	11.	The Arrangers shall distribute the additional amounts received as a result of the Mandatory Cost to the Interim Lenders on the basis of the Additional Cost Rate for each Interim
Lender based on the information provided by each Interim Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8 above. 

  

	12.	Any determination by the Arrangers pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to an Interim Lender shall,
in the absence of manifest error, be conclusive and binding on all Parties. 

  

	13.	The Arrangers may from time to time, after consultation with Bidco and the Interim Lenders, determine and notify to all Parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces
all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties. 

  

 32 

 APPENDIX 4 
 CONDITIONS PRECEDENT 
 CONDITIONS PRECEDENT TO INITIAL UTILISATION

	1.	The Obligors 

  

	 	(a)	A copy of the constitutional documents of each of the Obligors. 

  

	 	(b)	A copy of a resolution of the board of directors (or equivalent) of each of the Obligors: 

  

	 	(i)	approving the terms of, and the transactions contemplated by, the Interim Documents to which it is a party and resolving that it execute the Interim Documents to which it is a
party; 

  

	 	(ii)	authorising a specified person or persons to execute the Interim Documents to which it is a party on its behalf; and 

  

	 	(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Drawdown Request) to be signed and/or
despatched by it under or in connection with the Interim Documents to which it is a party. 

  

	 	(c)	If applicable, a copy of a resolution of the board of directors (or equivalent) or if applicable, a committee of the board of directors of the relevant company, establishing the
committee referred to in sub–paragraph (b) above. 

  

	 	(d)	A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above in relation to the Interim Documents. 

  

	 	(e)	A certificate of each of the Obligors (signed by the chief executive officer, the chief financial officer or a director) confirming (without personal liability) that borrowing or
guaranteeing, as appropriate, the Total Interim Commitments would not cause any borrowing, guarantee or similar limit, binding on the Obligors (where relevant), to be exceeded. 

  

	 	(f)	A formalities certificate from each of the Obligors certifying (without personal liability) that each copy document which is not an original or an officially certified copy relating
to it specified in this paragraph 1 of Appendix 4 is correct and complete. 

  

	2.	Interim Documents 

  

	 	(a)	This letter executed by the Obligors. 

  

	 	(b)	The Acquisition Agreement executed by the parties thereto. 

  

 33 

	3.	Legal opinions 

 The following legal opinions, each
addressed to the Interim Lenders. 
  

	 	(a)	A legal opinion of Clifford Chance LLP as to English law. 

  

	 	(b)	A legal opinion of Clifford Chance LLP as to Spanish law. 

  

	 	(c)	A legal opinion of external Virginian counsel to Smithfield as to Virginian law. 

  

	4.	Other documents and evidence 

  

	 	(a)	Evidence that any process agent has accepted its appointment. 

  

	 	(b)	Any information and evidence required by the Arrangers to comply with anti-money laundering regulations and their standard “know your client” procedures.

  

	 	(c)	A certificate of Bidco (signed by an officer or a director) certifying (without personal liability) that: 

  

	 	(i)	the conditions (other than payment of the purchase price) to the Acquisition have been satisfied or waived; 

  

	 	(ii)	no material provision of the Acquisition Agreement and no provision of the Acquisition Agreement relating to conditionality has been amended, varied, novated, supplemented,
superseded, waived or terminated without the consent of the Arrangers save for any amendments, waivers or any other variations that are not materially adverse to the Interim Lenders or that are approved by the Interim Lenders;

  

	 	(iii)	all costs, fees, expenses hereby due and payable by Bidco to the Arrangers, the Arrangers, or the Interim Lenders have been paid or will be paid immediately following Drawdown; and

  

	 	(iv)	the Jean Caby Group has been contributed to Bidco or one of its Subsidiaries. 

  

	 	(d)	Drawdown Requests relating to any Drawing to be made on the Completion Date. 

  

	 	(e)	The Structure Memorandum. 

  

	 	(f)	The Financial Statements. 

  

 34 

 APPENDIX 5 
 Part I 
 Representations 
  

	1.	Reliance 

 Each Obligor makes the representations
and warranties in this Part I to each Interim Finance Party in respect of itself. 
  

	2.	Incorporation 

 It is a limited liability company
duly incorporated and validly existing under the laws of its jurisdiction of incorporation. 
  

	3.	Power and Authority 

  

	 	(a)	It has the power to enter into, deliver and perform its obligations under, each Transaction Document to which it is or will be a party. No limit on its powers will be exceeded as a
result of any borrowing or the giving of any guarantee by it under the Transaction Documents. 

  

	 	(b)	It has, or will as soon as reasonably practicable and in any case by the time required, have taken all necessary corporate action to authorise its entry into and delivery of and the
performance by it of its obligations under each Transaction Document to which it is party and the transactions contemplated by those Transaction Documents. 

  

	4.	No Conflict 

 The entry into and delivery of and the
performance of its obligations under, each Transaction Document to which it is a party do not and will not conflict with: 
  

	 	(a)	any law or regulation applicable to it; 

  

	 	(b)	any of its constitutional documents; or 

  

	 	(c)	any agreement the breach of which will have a Material Adverse Effect unless either a waiver of such breach has been granted or is being requested in good faith or the relevant
Obligor is in good faith discussing the replacement of such contract with the parties thereto. 

  

	5.	Obligations Binding 

 Subject to the Reservations,
the obligations expressed to be assumed by it under each Transaction Document to which it is a party constitute its legal, valid, binding and enforceable obligations. 
  

 35 

	6.	Consents 

 Subject to the Reservations, all
Authorisations have been obtained and are in full force and effect (or will be in full force and effect when required): 
  

	 	(a)	for the entry into and delivery of, and the exercise of its rights under, each Transaction Documents to which it is a party except where failure to obtain any such Authorisation
could not reasonably be expected to be materially prejudicial to the Interim Finance Parties; 

  

	 	(b)	subject to any qualifications as to admissibility contained in the legal opinions referred to in paragraph 3 of Part I of Appendix 4 (Conditions Precedent), to make any
Interim Document to which it is a party admissible in evidence in its Relevant Jurisdictions; or 

  

	 	(c)	necessary for the conduct of business by it in all respects as presently conducted except to the extent failure to obtain those Authorisations could reasonably be expected not to
have a Material Adverse Effect. 

  

	7.	Holding Company 

 Bidco is a holding company that
before the Closing Date has not traded, or incurred any material liabilities or material commitments other than in each case in connection with the Transaction Documents or as set out in the Structure Memorandum and, in each case, the transactions
contemplated thereunder (other than in respect of professional fees). 
  

	8.	Financial Statements 

 The Financial Statements were
prepared in accordance with the generally accepted accounting principles in the United States consistently applied and give a true and fair view of Smithfield’s financial condition and operations during the relevant financial year. 

 

 36 

 Part II 
 Undertakings 
  

	1.	Acquisitions 

 Bidco will not acquire or subscribe
for any shares, securities or ownership interests in any person, or acquire any business other than pursuant to the Acquisition Agreement and the transactions contemplated thereby or as consented to by the Underwriters or as contemplated by the
Structure Memorandum and the transactions contemplated thereby. 
  

	2.	Negative Pledge 

 Bidco will not create or permit to
subsist any Security Interest over any of its assets, other than (where relevant): 
  

	 	(a)	any Security Interest arising in the ordinary course of day to day business of the relevant company; 

  

	 	(b)	any lien arising by operation of law; 

  

	 	(c)	any Security Interest to which the Underwriters have consented; 

  

	 	(d)	any Security Interest in respect of cash balances of Bidco given as part of cash pooling arrangements entered into by Bidco; and 

  

	 	(e)	any Security Interest required to satisfy any Authorisation required to carry on Bidco’s business. 

  

	3.	Indebtedness 

 Bidco will not incur or allow to
remain outstanding any Financial Indebtedness, other than: 
  

	 	(a)	Financial Indebtedness owed to the Interim Lenders under the Interim Documents or as consented to by the Underwriters; 

  

	 	(b)	Financial Indebtedness as contemplated in the Structure Memorandum (and the transactions contemplated thereby) or incurred under the Acquisition Agreement in respect of any
adjustment or claim thereunder; 

  

	 	(c)	Financial Indebtedness not exceeding, in aggregate, EUR 10,000,000 incurred as a result of loans from Smithfield and/or Oaktree to Bidco the proceeds of which are used for the
general corporate purposes of the Group; 

  

	 	(d)	Financial Indebtedness incurred by Bidco in respect of cash pooling arrangements entered into by Bidco. 

  

 37 

	4.	Disposals 

 Bidco will not dispose of any of its
assets, save in each case to the extent that the disposal is: 
  

	 	(i)	approved by the Underwriters; 

  

	 	(ii)	in the ordinary course of day to day business; or 

  

	 	(iii)	as contemplated in the Structure Memorandum. 

  

	5.	Smithfields banking facilities 

 Smithfield will
not, and will procure that each of its Subsidiaries shall not, agree to, or seek, any waiver or amendment of the term of any banking facility to which it is a party and under which a facility or facilities of more than US$20,000,000 are made
available without the agreement of the Underwriters. 
  

	6.	Pari Passu 

 Each Obligor will ensure that its
obligations under the Interim Documents rank at all times at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

  

	7.	The Acquisition Agreement 

 Bidco and Smithfield
will not, without the prior consent of the Underwriters, amend (or permit to be amended) or waive any provision of the Acquisition Agreement where that amendment or waiver is materially adverse to the interests of the Interim Lenders under the
Interim Documents. 
  

	8.	Loans or credit 

 Save as set out in the Structure
Memorandum and the transactions contemplated thereby, Bidco will not be a creditor in respect of any Financial Indebtedness other than: 
  

	 	(a)	as consented to by the Underwriters; 

  

	 	(b)	in respect of Financial Indebtedness under the Acquisition Agreement; 

  

	 	(c)	loans made by Bidco to any of its Subsidiaries; and 

  

	 	(d)	loans made by Bidco in respect of cash pooling arrangements entered into by Bidco. 

  

	9.	Holding Company 

 Save as set out in the Structure
Memorandum and the transactions contemplated thereby, Bidco shall not trade or carry on any business, or incur any material liabilities or commitments other than in each case in connection with: 
  

	 	(a)	the payment of professional fees and administration costs in the ordinary course of business as a holding company; 

  

 38 

	 	(b)	the Transaction Documents and the transactions contemplated thereunder; and 

  

	 	(c)	the provision of administrative services (excluding treasury services) to its Subsidiaries of a type customarily provided by a holding company to its Subsidiaries.

  

	10.	Information 

 Each Obligor will supply to the
Arrangers: 
  

	 	(a)	such information in respect of their financial condition, the Acquisition, the Business and related matters as they may reasonably request; 

  

	 	(b)	promptly on despatch of the same, copies of all material notices or other commitments sent by any Obligor to: 

  

	 	(i)	its shareholders generally (or any class of them); or 

  

	 	(ii)	all, or a class of, its creditors (including but not limited to information relating to existing banking facilities) and related matters as they may reasonably request;

  

	 	(c)	notice of any potential or actual Default promptly upon becoming aware of the same (unless the Obligor is aware that notification has already been provided by another Obligor).

  

 39 

 Part III 
 Default 
  

	1.	List of Events 

 Each of the events or circumstances
set out in this Part III is a Default, whether or not the occurrence of the event or circumstance concerned is outside the control of the Obligors. 
  

	2.	Payment Default 

 An Obligor does not pay on the due
date any amount payable by it under the Interim Documents in the manner required under the Interim Documents unless failure to pay is caused by administrative or technical error and payment is made within 5 Business Days. 
  

	3.	Breach of other Obligations 

 Any Obligor does not
comply with any Undertaking and such non-compliance is, if capable of remedy, not remedied within 15 Business Days of the earlier of: 
  

	 	(a)	the relevant Obligor becoming aware of such failure to comply; and 

  

	 	(b)	written notice being given by the Interim Lenders to the relevant Obligor of such failure to comply. 

  

	4.	Misrepresentation 

 A Representation is incorrect or
misleading and, if the underlying circumstances are capable of remedy, such underlying circumstances are not remedied within 7 Business Days of the earlier of: 
  

	 	(a)	the relevant Obligor becoming aware of such failure to comply; and 

  

	 	(b)	written notice being given by the Interim Lenders to the relevant Obligor of such failure to comply. 

  

	5.	Insolvency 

 An Obligor or any of Smithfield’s
Material Subsidiaries: 
  

	 	(a)	stops or suspends payment of its debts or admits in writing its inability to pay its debts as they fall due or a moratorium is declared in relation to any of its indebtedness;

  

	 	(b)	is, or for the purpose of any applicable law is deemed, or is declared by any relevant court to be, unable to pay its debts as they fall due; 

  

	 	(c)	by reason of actual or anticipated financial difficulties begins negotiations with its creditors generally with a view to rescheduling of its indebtedness generally;

  

 40 

	 	(d)	enters into any agreement for the rescheduling of its indebtedness generally by reason of, or with a view to avoiding, actual or anticipated financial difficulties but excluding for
the avoidance of doubt an agreement for the refinancing of the Interim Facility. 

  

	6.	Insolvency Proceedings 

  

	 	(a)	Any of the following occurs in respect of any Obligor: 

  

	 	(i)	any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, examiner, receiver, administrative receiver, administrator or similar officer is appointed in respect
of it or any of its assets; 

  

	 	(ii)	a petition is presented, an application to court is made, or documents are filed with a court, by any person, for the purpose of appointing a liquidator, trustee in bankruptcy,
judicial custodian, compulsory manager, examiner, receiver, administrative receiver, administrator or other similar officer in respect of it or any of its assets save where such petition is presented, application made or document filed on a
frivolous or vexatious basis and any related action is discharged, stayed or dismissed within 20 Business Days of commencement and before the date on which it is advertised; 

  

	 	(iii)	any meeting of its directors, shareholders or creditors is convened for the purpose of considering any resolution for (or whether to petition for or file documents with a court for)
its winding-up, liquidation, administration or dissolution or for seeking relief under any applicable insolvency law or any such meeting passes such a resolution; 

  

	 	(iv)	any corporate action, or other formal step or formal procedure is taken or commenced with a view to a composition, assignment or arrangement with its creditors generally; or

  

	 	(v)	an order is made for its administration, liquidation, winding-up or other relief under any applicable insolvency law. 

  

	7.	Similar Events Elsewhere 

 There occurs in relation
to an Obligor or any of Smithfield’s Material Subsidiaries or any of their respective assets in any country or territory in which it is incorporated or carries on business or to the jurisdiction of whose courts it or any of its assets are
subject, any event or circumstance which corresponds to any of those mentioned in paragraphs 5 (Insolvency) and 6 (Insolvency Proceedings). 
  

	8.	Creditors’ process 

 Any expropriation,
attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of: 
  

	 	(a)	Smithfield or any other member of the Existing Smithfield Group having an aggregate value of US$25,000,000 (or its equivalent in other currencies); or 

  

 41 

	 	(b)	Bidco having an aggregate value of US$5,000,000 (or its equivalent in other currencies), 

 and, in each case, the same is not discharged within 20 Business Days. 
  

	9.	Unlawfulness and invalidity 

  

	 	(a)	It is or becomes unlawful for any Obligor to perform any of its material obligations under the Interim Documents and which materially and adversely effects the interests of the
Interim Lenders under the Interim Documents and this is not remedied within 10 Business Days after written notice of such illegality is given to such Obligor. 

  

	 	(b)	Any material obligation or obligations of any Obligor under any Interim Documents are not (subject to the Reservations) or cease to be legal, valid, binding or enforceable and the
cessation materially and adversely effects the interests of the Interim Lenders under the Interim Documents and the cessation continues for a period of at least 10 Business Days after written notice of the same is given to such Obligor.

  

	10.	Repudiation and rescission of agreements 

 Any
Obligor rescinds or repudiates an Interim Document in a way which is materially adverse to the interest of the Interim Lenders. 
  

	11.	Cross default 

  

	 	(a)	Any Financial Indebtedness of one or more members of the Existing Smithfield Group is not paid when due nor within any originally applicable grace period. 

 

	 	(b)	Any Financial Indebtedness one or more members of the Existing Smithfield Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of
an event of default (however described). 

  

	 	(c)	Any creditor of one or more members of the Existing Smithfield Group becomes entitled to declare any Financial Indebtedness of one or more members of the Existing Smithfield Group
due and payable prior to its specified maturity as a result of an event of default (however described). 

  

	 	(d)	No Default will occur under this paragraph 11 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to
(c) above is less than US$25,000,000 (or its equivalent in any other currency or currencies). 

  

	12.	Material Adverse Change 

 Any event or circumstance
occurs which has a Material Adverse Effect. 
  

 42 

 CONTENTS 
  

					
	Clause	  	Page
	 1.
	  	 Interpretation
	  	1
			
	 2.
	  	 The Making Of An Interim Term Loan
	  	1
			
	 3.
	  	 Nature Of An Interim Finance Party’s Rights And Obligations
	  	2
			
	 4.
	  	 Utilisation
	  	3
			
	 5.
	  	 Repayment And Prepayment
	  	3
			
	 6.
	  	 Interest
	  	4
			
	 7.
	  	 Representations And Undertakings
	  	4
			
	 8.
	  	 Taxes
	  	5
			
	 9.
	  	 Change In Circumstances
	  	6
			
	 10.
	  	 Payments
	  	8
			
	 11.
	  	 Indemnities
	  	9
			
	 12.
	  	 Pro Rata Payments
	  	10
			
	 13.
	  	 Set-Off
	  	11
			
	 14.
	  	 Notices
	  	12
			
	 15.
	  	 Confidentiality
	  	14
			
	 16.
	  	 Changes To Parties
	  	14
			
	 17.
	  	 Guarantee And Indemnity
	  	15
			
	 18.
	  	 Partial Invalidity
	  	17
			
	 19.
	  	 Counterparts
	  	17
			
	 20.
	  	 Governing Law
	  	17
			
	 21.
	  	 Jurisdiction
	  	18
		
	 APPENDIX 1 INTERPRETATION
	  	21
		
	 APPENDIX 2 FORM OF DRAWDOWN REQUEST
	  	29
		
	 APPENDIX 3 CALCULATION OF THE MANDATORY
COSTS
	  	30
		
	 APPENDIX 4 CONDITIONS PRECEDENT
	  	33
		
	 APPENDIX 5
	  	35
	 Part I Representations
	  	35
	 Part II Undertakings
	  	37
	 Part III Default
	  	40

  

 iAMENDED AND RESTATED CONTRIBUTION AGREEMENT

 Exhibit 10.2 
 AMENDED AND RESTATED CONTRIBUTION AGREEMENT 
 BY AND AMONG 
 TARVALÓN, S.L., 
 BACARRETO,
S.L. 
 SFDS GLOBAL HOLDINGS BV, 
 OCM LUXEMBOURG EPOF MEATS HOLDINGS SARL, 
 OCM LUXEMBOURG OPPS MEATS HOLDINGS SARL, 

AND 
 OCM LUXEMBOURG EPOF SARL
(FOR PURPOSES OF SECTION 7.3 AND ARTICLE IX ONLY) 
 AND 
 SMITHFIELD FOODS, INC. (FOR THE PURPOSES OF ARTICLES VII AND IX ONLY) 
 August 7, 2006 

 TABLE OF CONTENTS 
  

					
	 ARTICLE I DEFINITIONS
	  	2
	 1.1
	    	Accounts	  	2
	 1.2
	    	Affiliate	  	3
	 1.3
	    	Agreement	  	3
	 1.4
	    	Approval	  	3
	 1.5
	    	Assets	  	3
	 1.6
	    	Assignment Agreement	  	3
	 1.7
	    	Books and Records	  	3
	 1.8
	    	Class A Board Members	  	3
	 1.9
	    	Class B Board Members	  	3
	 1.10
	    	Class A HoldCo Shares	  	3
	 1.11
	    	Class B HoldCo Shares	  	3
	 1.12
	    	Closing	  	3
	 1.13
	    	Closing Date	  	3
	 1.14
	    	Company	  	4
	 1.15
	    	Confidentiality and Exclusivity Agreement	  	4
	 1.16
	    	Constituent Documents	  	4
	 1.17
	    	Contracts	  	4
	 1.18
	    	Contributed Shares	  	4
	 1.19
	    	Debt	  	4
	 1.20
	    	Earn-Out Agreement	  	4
	 1.21
	    	Effective Time of Closing	  	4
	 1.22
	    	Employment Regulations	  	4
	 1.23
	    	Environment	  	4
	 1.24
	    	Environmental Consents	  	4
	 1.25
	    	Environmental Laws	  	4
	 1.26
	    	Environmental Matters	  	4
	 1.27
	    	EPOF	  	5
	 1.28
	    	EPOF HoldCo Shares	  	5
	 1.29
	    	EPOF Purchased Shares	  	5
	 1.30
	    	EPOF Shares	  	5
	 1.31
	    	EPOF Target Debt	  	5
	 1.32
	    	Equipment	  	5
	 1.33
	    	Exchange Act	  	5
	 1.34
	    	Expenses	  	5
	 1.35
	    	Financial Statements	  	5
	 1.36
	    	FrenchCo Business	  	5
	 1.37
	    	FrenchCo Intellectual Property Rights	  	5
	 1.38
	    	GAAP	  	5
	 1.39
	    	Governmental Authority	  	5
	 1.40
	    	Hazardous Materials	  	5
	 1.41
	    	HoldCo Shares	  	6
	 1.42
	    	Industry Wide Plan	  	6
	 1.43
	    	Intellectual Property	  	6
	 1.44
	    	Inventory	  	6

  

 i 

					
	 1.45
	    	Knowledge of Smithfield	  	6
	 1.46
	    	Law	  	6
	 1.47
	    	Letter Agreement	  	6
	 1.48
	    	Liabilities	  	6
	 1.49
	    	Lien	  	6
	 1.50
	    	Losses	  	6
	 1.51
	    	Material Adverse Effect	  	7
	 1.52
	    	Oaktree	  	7
	 1.53
	    	OCM	  	7
	 1.54
	    	OCM Indemnified Parties	  	7
	 1.55
	    	OPPS	  	7
	 1.56
	    	OPPS HoldCo Shares	  	7
	 1.57
	    	OPPS Purchased Shares	  	7
	 1.58
	    	OPPS Shares	  	7
	 1.59
	    	OPPS Target Debt	  	7
	 1.60
	    	Permits	  	7
	 1.61
	    	Person	  	7
	 1.62
	    	Properties	  	7
	 1.63
	    	Purchase Agreement	  	8
	 1.64
	    	Retirement Benefit	  	8
	 1.65
	    	Sara Lee/DE	  	8
	 1.66
	    	Shares	  	8
	 1.67
	    	Site	  	8
	 1.68
	    	SLC	  	8
	 1.69
	    	SLE	  	8
	 1.70
	    	Smithfield	  	8
	 1.71
	    	Smithfield France	  	8
	 1.72
	    	Smithfield HoldCo Initial Shares	  	8
	 1.73
	    	Smithfield HoldCo Shares	  	8
	 1.74
	    	Smithfield Indemnified Parties	  	8
	 1.75
	    	Smithfield Initial Shares	  	8
	 1.76
	    	Smithfield Shares	  	8
	 1.77
	    	Smithfield Target Debt	  	8
	 1.78
	    	State Social Security Plan	  	9
	 1.79
	    	Stockholders Agreement	  	9
	 1.80
	    	Subsidiaries	  	9
	 1.81
	    	Target Company IT Systems	  	9
	 1.82
	    	Target Employee Benefit Plan	  	9
	 1.83
	    	Tax	  	9
	 1.84
	    	Tax Regulations	  	9
	 1.85
	    	Tax Return	  	9
	 1.86
	    	Third-Party Intellectual Property Rights	  	9
	 1.87
	    	Third Party Right	  	9
	 1.88
	    	Transaction Material Adverse Effect	  	10
	 1.89
	    	Tri-Artisan	  	10

  

 ii 

					
	 ARTICLE II CONTRIBUTION AND SHARE ISSUANCE
	  	10
	 2.1
	    	Contribution to the Company and Share Issuance	  	10
	 2.2
	    	Contribution to HoldCo and Share Issuance	  	12
	 2.3
	    	Deliveries at Closing	  	14
	 2.4
	    	Company Directors	  	16
	 2.5
	    	Deliveries Post Closing by HoldCo	  	17
	 2.6
	    	Registration with Companies Registry	  	17
		
	 ARTICLE III WARRANTIES OF SMITHFIELD
	  	17
	 3.1
	    	Organization of Smithfield	  	17
	 3.2
	    	Smithfield Authorization; Execution and Delivery; Enforceability	  	17
	 3.3
	    	No Violation or Conflict by Smithfield	  	18
	 3.4
	    	Title to Contributed Shares	  	18
	 3.5
	    	Organization of the Company and HoldCo	  	18
	 3.6
	    	Company and HoldCo Authorization; Execution and Delivery; Enforceability	  	18
	 3.7
	    	No Violation or Conflict by the Company or HoldCo	  	18
	 3.8
	    	Organization and Authority of Smithfield France	  	19
	 3.9
	    	Capitalization	  	19
	 3.10
	    	No Violation or Conflict by Smithfield France	  	19
	 3.11
	    	Subsidiaries	  	19
	 3.12
	    	Sufficiency of Assets	  	19
	 3.13
	    	Financial Statements	  	19
	 3.14
	    	Liabilities at Effective Time of Closing	  	20
	 3.15
	    	Authorizations, Valid Obligations, Filings and Consents	  	20
	 3.16
	    	Smithfield, the Shares and Smithfield France and Subsidiaries	  	20
	 3.17
	    	Organizational Documents of Smithfield France and the Subsidiaries	  	20
	 3.18
	    	Absence of Changes	  	20
	 3.19
	    	Statutory Books	  	21
	 3.20
	    	Accounting Records	  	21
	 3.21
	    	Securities Exchange Act	  	21
	 3.22
	    	Borrowings and Mortgages	  	22
	 3.23
	    	Sureties	  	22
	 3.24
	    	Grants	  	22
	 3.25
	    	Licenses	  	23
	 3.26
	    	Compliance	  	23
	 3.27
	    	The Business Assets	  	23
	 3.28
	    	Consents, Approvals and Compliance with Laws	  	25
	 3.29
	    	No Broker	  	25
	 3.30
	    	Contractual Matters	  	25
	 3.31
	    	Litigation	  	27
	 3.32
	    	Investigations	  	27
	 3.33
	    	Insolvency, etc.	  	27
	 3.34
	    	IP/IT	  	28
	 3.35
	    	Real Estate	  	29
	 3.36
	    	Environmental	  	31
	 3.37
	    	Employment	  	32
	 3.38
	    	Retirement Benefits	  	34

  

 iii 

					
	 3.39
	    	Tax Matters	  	35
	 3.40
	    	Value of Smithfield France	  	35
		
	 ARTICLE IV WARRANTIES OF EPOF AND OPPS
	  	35
	 4.1
	    	EPOF Warranties	  	35
	 4.2
	    	OPPS Warranties	  	36
		
	 ARTICLE V COVENANTS
	  	37
	 5.1
	    	Conduct of Business of Smithfield France and the Subsidiaries	  	37
	 5.2
	    	Access to Information	  	37
	 5.3
	    	Commercially Reasonable Efforts	  	37
	 5.4
	    	Public Announcements	  	37
	 5.5
	    	Confidentiality and Exclusivity Agreement	  	37
	 5.6
	    	Target Debt	  	38
		
	 ARTICLE VI CONDITIONS PRECEDENT TO CLOSING
	  	38
	 6.1
	    	Conditions Precedent to Obligations of OCM	  	38
	 6.2
	    	Conditions Precedent to Obligations of Smithfield	  	39
		
	 ARTICLE VII INDEMNITIES AND ADDITIONAL COVENANTS
	  	39
	 7.1
	    	Smithfield’s Indemnity	  	39
	 7.2
	    	OCM’s Indemnity	  	41
	 7.3
	    	Additional OCM Indemnity	  	42
	 7.4
	    	Company Indemnity	  	42
	 7.5
	    	Further Assurances	  	42
		
	 ARTICLE VIII TERMINATION; WAIVER
	  	43
	 8.1
	    	Termination	  	43
	 8.2
	    	Effect of Termination	  	43
	 8.3
	    	Waiver; Extension	  	43
		
	 ARTICLE IX MISCELLANEOUS
	  	44
	 9.1
	    	Entire Agreement; Amendment	  	44
	 9.2
	    	Expenses	  	44
	 9.3
	    	Governing Law; Consent to Jurisdiction	  	44
	 9.4
	    	Assignment	  	45
	 9.5
	    	Notices	  	45
	 9.6
	    	Counterparts; Headings	  	46
	 9.7
	    	Specific Performance	  	47
	 9.8
	    	Interpretation	  	47
	 9.9
	    	Severability	  	47
	 9.10
	    	No Reliance	  	47
	 9.11
	    	Survival; Exhibits	  	47
	 9.12
	    	Oaktree	  	47

  

 iv 

 EXHIBITS 
  

			
	Exhibit 1.19	 	Earn-Out Agreement
	Exhibit 1.75	 	Stockholders Agreement
	Exhibit 3.9	 	Capitalization
	Exhibit 3.11	 	Subsidiaries

  

 v 

 AMENDED AND RESTATED CONTRIBUTION AGREEMENT 
 AMENDED AND RESTATED CONTRIBUTION AGREEMENT, made as of the 7th day of August, 2006, by and among Tarvalón, S.L., a private limited company
organized under the laws of Spain (the “Company”), Bacarreto, S.L., a private limited company organized under the laws of Spain (“HoldCo”), SFDS Global Holdings BV, a private limited liability company organized
under the laws of the Netherlands (“Smithfield”), OCM Luxembourg EPOF Meats Holdings SARL, a société à responsibilité limitée organized under the laws of Luxembourg (“EPOF”), OCM
Luxembourg OPPS Meats Holdings SARL, a société à responsibilité limitée organized under the laws of Luxembourg (“OPPS” and collectively with EPOF, “OCM”) and, for the purposes of
Section 7.3 and Article IX only, OCM Luxembourg EPOF SARL, a société à responsibilité limitée organized under the laws of Luxembourg (“Oaktree”) and, for the purposes of Articles VII
and IX only, Smithfield Foods, Inc. (“Parent”). 
 RECITALS 
 WHEREAS, Smithfield has organized the Company solely for the purpose of consummating the transactions contemplated by that certain Agreement (as
amended or supplemented, the “Purchase Agreement”), dated June 26, 2006, among Parent, the Company and Sara Lee Corporation (“SLE”), providing for the purchase by the Company of SLE’s and its
Affiliates’ European meats business, and is the holder of 3,200 Shares (as defined herein); 
 WHEREAS, Smithfield has organized
HoldCo to serve as the parent holding company of the Company; 
 WHEREAS, on June 29, 2006, the Company, Smithfield, Oaktree and
Parent entered into the Contribution Agreement (the “Original Contribution Agreement”) providing for certain contributions of cash and stock to the Company; 
 WHEREAS, the parties desire to amend and restate the Original Contribution Agreement; 
 WHEREAS, in consideration of the partial payment of the purchase price under the Purchase Agreement, (a) Smithfield has agreed to acquire
from SLE and its Affiliates €50,000,000 million of debt obligations incurred by Affiliates of SLE in connection with the European Business (as defined in the Purchase Agreement) (the “Smithfield Target Debt”), (b) EPOF has
agreed to acquire from SLE and its Affiliates €74,723,539 million of debt obligations incurred by Affiliates of SLE in connection with the European Business (the “EPOF Target Debt”) and (c) OPPS has agreed to acquire from
SLE and its Affiliates €34,166,461 million of debt obligations from certain entities incurred by Affiliates of SLE in connection with the European Business (the “OPPS Target Debt”); 
 WHEREAS, Smithfield desires to (a) contribute to the Company all of the shares of capital stock of Smithfield France SAS (“Smithfield
France”) held by Smithfield and its Affiliates (with a deemed gross enterprise value of €120 million, which includes €20 million of debt (the “Debt”)) in exchange for Shares and (b) contribute the Smithfield
Target Debt to the Company in exchange for Shares; 

 WHEREAS, EPOF desires to contribute the EPOF Target Debt to the Company in exchange for Shares;

 WHEREAS, OPPS desires to contribute the OPPS Target Debt to the Company in exchange for Shares; 
 WHEREAS, following the contribution to the Company by (i) Smithfield of Smithfield France and the Smithfield Target Debt, (ii) EPOF of
the EPOF Target Debt and (iii) OPPS of the OPPS Target Debt, (x) Smithfield desires to sell to EPOF and EPOF desires to acquire from Smithfield 1,098 Shares (the “EPOF Purchased Shares”) out of the Smithfield Initial
Shares, equivalent to 34.31% of the share capital of the Company before the share capital increase contemplated by Section 2.1(b) and (y) Smithfield desires to sell to OPPS and OPPS desires to acquire from Smithfield 502 Shares (the
“OPPS Purchased Shares”) out of the Smithfield Initial Shares, equivalent to 15.69% of the share capital of the Company before the share capital increase contemplated by Section 2.1(b); 
 WHEREAS, following the transactions described above, EPOF shall own 34.31% of the outstanding Shares, OPPS shall own 15.69% of the outstanding
Shares and Smithfield shall own 50% of the outstanding Shares; 
 WHEREAS, each of (i) EPOF, OPPS and Smithfield desire to
contribute their ownership interests in the Company to HoldCo in exchange for a ratable percentage of HoldCo Shares (as defined herein) and (ii) Smithfield, EPOF, OPPS and HoldCo desire to enter into the Earn-Out Agreement; 
 WHEREAS, immediately following such exchange, (a) Smithfield desires to sell to EPOF and EPOF desires to acquire from Smithfield, 1,098
HoldCo Shares out of the Smithfield Initial HoldCo Shares, equivalent to 34.31% of the share capital of the HoldCo before the share capital increase contemplated by Section 2.2(d) and (b) Smithfield desires to sell to OPPS and OPPS
desires to acquire from Smithfield, 502 HoldCo Shares out of the Smithfield Initial HoldCo Shares, equivalent to 15.69% of the share capital of the Company before the share capital increase contemplated by Section 2.2(d); and 

WHEREAS, following the transactions described above, EPOF shall own 34.31% of the outstanding HoldCo Shares, OPPS shall own 15.69% of the
outstanding HoldCo Shares and Smithfield shall own 50% of the outstanding HoldCo Shares; 
 NOW, THEREFORE, in consideration of the
foregoing and of the mutual covenants, conditions and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, it hereby is agreed that: 
 ARTICLE I 
 DEFINITIONS

 When used in this Agreement, the following terms shall have the meanings specified: 
 1.1 Accounts. “Accounts” shall mean all accounts receivable, notes receivable and associated rights owned by Smithfield France and the
Subsidiaries. 
  

 2 

 1.2 Affiliate. “Affiliate” shall mean, with respect to any Person, any other Person
directly, or indirectly through one or more intermediaries, controlling, controlled by or under common control with such Person. As used in this definition of the term “Affiliate” and elsewhere herein with respect to any Affiliate of any
Person, “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a Person,
whether through the ownership of voting securities, by voting trust, contract or similar arrangement, as trustee or executor, or otherwise. 
 1.3 Agreement. “Agreement” shall mean this Amended and Restated Contribution Agreement, together with the Exhibits attached hereto, as the same may be amended from time to time in accordance with the terms hereof.

 1.4 Approval. “Approval” shall mean approval or qualification by and/or due registration with the appropriate taxation,
social security, supervisory, fiscal or other applicable regulatory authorities in the relevant state or jurisdiction, in order to obtain tax approved, favored or qualified status in the relevant jurisdiction, and Approved shall be construed
accordingly. 
 1.5 Assets. “Assets” shall mean all of the assets of Smithfield France and the Subsidiaries, including,
without limitation, the Accounts, Books and Records, Contracts, Equipment, Intellectual Property, Inventory, Permits and Real Property. 
 1.6 Assignment Agreement. “Assignment Agreement” shall have the meaning given to such term in Section 5.6. 
 1.7 Books and Records. “Books and Records” shall mean original or true and complete copies of all of the books, records, ledgers, files, data and information of Smithfield France and the Subsidiaries. 
 1.8 Class A Board Members. “Class A Board Members” shall have the meaning given to such term in Section 2.2(e). 
 1.9 Class B Board Members. “Class B Board Members” shall have the meaning given to such term in Section 2.2(e). 

1.10 Class A HoldCo Shares. “Class A HoldCo Shares” shall have the meaning given to such term in Section 2.2(e).

 1.11 Class B HoldCo Shares. “Class B HoldCo Shares” shall have the meaning given to such term in Section 2.2(e).

 1.12 Closing. “Closing” shall mean the conference to be held at 10:00 a.m., local time, on the Closing Date, at the
offices of Hunton & Williams LLP located at 200 Park Avenue, New York, New York 10166, or at such other time and place as the parties may mutually agree. 
 1.13 Closing Date. “Closing Date” shall mean the date on which the transactions contemplated by the Purchase Agreement are consummated. 
  

 3 

 1.14 Company. “Company” shall have the meaning given to such term in the Preamble
hereto. 
 1.15 Confidentiality and Exclusivity Agreement. “Confidentiality and Exclusivity Agreement” shall mean the letter
agreement, dated May 4, 2006, between Smithfield Foods, Inc. and Oaktree. 
 1.16 Constituent Documents. “Constituent
Documents” shall mean the articles of association and bylaws (or similar organizational documents) of any entity. 
 1.17
Contracts. “Contracts” shall mean all material contracts, agreements, leases, licenses, relationships and commitments, written or oral, to which Smithfield France or any of the Subsidiaries are a party or by which any of them are
bound, and that are required to conduct the business of Smithfield France and the Subsidiaries. 
 1.18 Contributed Shares.
“Contributed Shares” shall mean all of the shares of capital stock of Smithfield France held by Smithfield. 
 1.19 Debt.
“Debt” shall have the meaning given to such term in the Recitals hereto. 
 1.20 Earn-Out Agreement. “Earn-Out
Agreement” shall mean that certain Earn-Out Agreement to be entered into between Smithfield, EPOF, OPPS and HoldCo, substantially in the form of Exhibit 1.20 attached hereto. 
 1.21 Effective Time of Closing. “Effective Time of Closing” shall mean 12:01 AM, local time, on the Closing Date. 
 1.22 Employment Regulations. “Employment Regulations” shall mean the Transfer of Undertaking (Protection of Employment) Regulations
1981. 
 1.23 Environment. “Environment” shall mean all or part of any of the following media, namely air (including the air
within buildings or other natural or man-made structures above or below ground), water and land and any living organisms or systems supported by those media. 
 1.24 Environmental Consents. “Environmental Consents” shall mean any material permit, license, authorization, approval or consent required under Environmental Laws for the carrying on of the FrenchCo
Business or the use of, or any activities or operations carried out at, any Site owned or occupied by Smithfield France or the Subsidiaries. 
 1.25 Environmental Laws. “Environmental Laws” shall mean all international, European Union, national, state, federal, regional or local laws (including common law, statute law, civil and criminal law and including codes of
practice and guidance notes which are of mandatory effect) which are in force and binding at the date of this Agreement, to the extent that they relate to Environmental Matters. 
 1.26 Environmental Matters. “Environmental Matters” shall mean all matters relating to the pollution, protection of or prevention of
harm to the Environment. 
  

 4 

 1.27 EPOF. “EPOF” shall have the meaning given to such term in the Preamble hereto.

 1.28 EPOF HoldCo Shares. “EPOF HoldCo Shares” shall have the meaning given to such term in Section 2.2(g).

 1.29 EPOF Purchased Shares. “EPOF Purchased Shares” shall have the meaning given to such term in the Recitals hereto.

 1.30 EPOF Shares. “EPOF Shares” shall have the meaning given to such term in Section 2.1(e). 
 1.31 EPOF Target Debt. “EPOF Target Debt “ shall have the meaning given to such term in the Recitals hereto. 
 1.32 Equipment. “Equipment” shall mean all machinery, vehicles, equipment, furniture, fixtures, furnishings, parts, tools, engineering
and other items of tangible personal property owned or leased by Smithfield France and the Subsidiaries and that are required to conduct the business of Smithfield France and the Subsidiaries. 
 1.33 Exchange Act. “Exchange Act” shall have the meaning given to such term in Section 3.21. 
 1.34 Expenses. “Expenses” shall have the meaning given to such term in Section 9.2. 
 1.35 Financial Statements. “Financial Statements” shall mean the unaudited financial statements of the FrenchCo Business for the three
fiscal years ended April 27, 2003, May 2, 2004 and May 1, 2005 containing consolidated statements of operations for the fiscal years 2003, 2004 and 2005 and consolidated balance sheets as of April 27, 2003, May 2,
2004 and May 1, 2005. 
 1.36 FrenchCo Business. “FrenchCo Business” shall mean the business of Smithfield France and
the Subsidiaries. 
 1.37 FrenchCo Intellectual Property Rights. “FrenchCo Intellectual Property Rights shall have the meaning
give to such term in Section 3.34 hereof. 
 1.38 GAAP. “GAAP” shall mean generally accepted accounting principles as
in effect in the United States as of the date of the subject financial statement. 
 1.39 Governmental Authority. “Governmental
Authority” shall mean the government of any nation, state, city, locality or other political subdivision thereof, any multinational organization, and any entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government and any executive official thereof. 
 1.40 Hazardous Materials. “Hazardous Materials” shall
have the meaning given to such term in Section 3.36. 
  

 5 

 1.41 HoldCo Shares. “HoldCo Shares” shall mean the shares (“participaciones
sociales”) of capital stock of HoldCo. 
 1.42 Industry Wide Plan. “Industry Wide Plan” shall mean any scheme,
plan, fund or arrangement which provides Retirement Benefits to or in respect of employees in which employers may participate even if they are not within the same corporate group as the other participating employers whether under a collective
bargaining agreement or otherwise, other than state social security plans in any relevant jurisdiction. 
 1.43 Intellectual Property.
“Intellectual Property” shall mean all material (a) inventions (whether patentable or unpatentable and whether or not reduced to practice), improvements thereto and patents, patent applications and patent disclosures, together with
reissuances, continuations, continuations-in-part, revisions, extensions and reexaminations thereof, (b) trademarks, service marks, trade dress, logos, trade names and corporate names, together with translations, adaptations, derivations and
combinations thereof and including all goodwill associated therewith and applications, registrations and renewals in connection therewith, (c) copyrightable works, copyrights and applications, registrations and renewals in connection therewith,
(d) trade secrets and confidential business information (including ideas, research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications,
customer and supplier lists, pricing and cost information and business and marketing plans and proposals), (e) computer software (including data and related documentation), (f) other proprietary rights, (g) rights as a licensee or
authorized user of the intellectual property of any third party and (h) copies and tangible embodiments thereof (in whatever form or medium). 
 1.44 Inventory. “Inventory” shall mean all raw materials, work in progress and finished goods, wherever located, owned by Smithfield France and the Subsidiaries in connection with the FrenchCo Business. 
 1.45 Knowledge of Smithfield. “Knowledge of Smithfield” shall mean the actual knowledge of, after all reasonable inquiry by, C. Larry
Pope, Richard J. M. Poulson, Dan G. Stevens and Robert Sharpe I. 
 1.46 Law. “Law” shall mean any federal, state, local or
other law or governmental requirement of any kind, and the rules, regulations and orders promulgated thereunder. 
 1.47 Letter
Agreement. “Letter Agreement” shall have the meaning given to such term in Section 5.6 hereof. 
 1.48 Liabilities.
“Liabilities” shall have the meaning given to such term in Section 3.13. 
 1.49 Lien. “Lien” shall mean any
mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien (statutory or other) or preference, priority, right of first refusal, restriction on transfer, right or other security interest or preferential arrangement or adverse
claim of any kind or nature whatsoever. 
 1.50 Losses. “Losses” shall have the meaning given to such term in
Section 7.1 hereof. 
  

 6 

 1.51 Material Adverse Effect. “Material Adverse Effect” shall mean a material adverse
change in or effect on the financial condition, business, properties, results of operations or prospects of Smithfield France and the Subsidiaries, taken as a whole; provided, however, that “Material Adverse Effect” shall not
include the effect of any change or effect arising out of or attributable to (a) the markets in which Smithfield France and the Subsidiaries operate generally, (b) general economic or political conditions (including those effecting the
securities markets), (c) the public announcement of this Agreement or the Purchase Agreement or of the consummation of the transactions contemplated hereby and thereby, (d) any change arising in connection with acts of war (whether or not
declared), sabotage or terrorism, military actions or the escalation thereof or other force majeure events occurring after the date hereof or (e) changes in Laws or accounting rules. 
 1.52 Oaktree. “Oaktree” shall have the meaning given to such term in the Recitals hereto. 
 1.53 OCM. “OCM” shall have the meaning given to such term in the Preamble hereto. 
 1.54 OCM Indemnified Parties. “OCM Indemnified Parties” shall have the meaning given to such term in Section 7.1 hereof.

 1.55 OPPS. “OPPS” shall have the meaning given to such term in the Preamble hereto. 
 1.56 OPPS HoldCo Shares. “OPPS HoldCo Shares” shall have the meaning given to such term in Section 2.2(g). 
 1.57 OPPS Purchased Shares. “OPPS Purchased Shares” shall have the meaning given to such term in the Recitals hereto. 
 1.58 OPPS Shares. “OPPS Shares” shall have the meaning given to such term in Section 2.1(e). 
 1.59 OPPS Target Debt. “OPPS Target Debt “ shall have the meaning given to such term in the Recitals hereto. 
 1.60 Permits. “Permits” shall have the meaning given to such term in Section 3.26. 
 1.61 Person. “Person” shall mean any individual, sole proprietorship, trust, estate, executor, legal representative, unincorporated
association, association, institution, corporation, company, partnership, limited liability company, limited liability partnership, joint venture, government, Governmental Authority, and any regulatory or self-regulatory authority or agency or other
entity. 
 1.62 Properties. “Properties” shall mean all real property owned or leased by Smithfield France or any
Subsidiary, together with the improvements located thereon, including all appurtenant rights, claims and interests, which is used in and is material to the conduct of the FrenchCo Business. 
  

 7 

 1.63 Purchase Agreement. “Purchase Agreement” shall have the meaning given to such term
in the Recitals hereto. 
 1.64 Retirement Benefit. “Retirement Benefits” shall mean any pension, allowance, lump sum,
gratuity or similar benefit provided or to be provided on or after retirement, death, disability or leaving service (whether voluntary or not) in respect of an employee’s employment. This does not include post retirement medical and dental and
other healthcare and welfare benefits, termination indemnities and any benefits provided under an arrangement the sole purpose of which is to provide benefits on the accidental injury or death of an employee. 
 1.65 Sara Lee/DE. “Sara Lee/DE” shall have the meaning given to such term in Section 5.6. 
 1.66 Shares. “Shares” shall mean the shares (“participaciones sociales”) of capital stock of the Company. 

1.67 Site. “Site” shall have the meaning given to such term in Section 3.36. 
 1.68 SLC. “SLC” shall have the meaning given to such term in Section 5.6. 
 1.69 SLE. “SLE” shall have the meaning given to such term in the Recitals hereto. 
 1.70 Smithfield. “Smithfield” shall have the meaning given to such term in the Preamble hereto. 
 1.71 Smithfield France. “Smithfield France” shall have the meaning given to such term in the Recitals hereto. 
 1.72 Smithfield HoldCo Initial Shares. “Smithfield HoldCo Initial Shares” shall mean the 3,200 HoldCo Shares owned by Smithfield prior
to the increase of capital of HoldCo pursuant to Section 2.2(d). 
 1.73 Smithfield HoldCo Shares. “Smithfield HoldCo
Shares” shall have the meaning given to such term in Section 2.2(g). 
 1.74 Smithfield Indemnified Parties.
“Smithfield Indemnified Parties” shall have the meaning given to such term in Section 7.2 hereof. 
 1.75 Smithfield
Initial Shares. “Smithfield Initial Shares” shall mean the Shares owned by Smithfield prior to the increase of capital of the Company pursuant to Section 2.1(b). 
 1.76 Smithfield Shares. “Smithfield Shares” shall have the meaning given to such term in Section 2.1(e). 
 1.77 Smithfield Target Debt. “Smithfield Target Debt” shall have the meaning given to such term in the Recitals hereto. 
  

 8 

 1.78 State Social Security Plan. “State Social Security Plan” shall mean any Retirement
Benefit plans that are operated by state entities to which Smithfield France or any of the Subsidiaries are required to contribute under Law. 
 1.79 Stockholders Agreement. “Stockholders Agreement” shall mean that certain Stockholders Agreement, to be entered into as of the Closing Date, among HoldCo, Smithfield, EPOF and OPPS, substantially in the form of Exhibit
1.79. 
 1.80 Subsidiaries. “Subsidiaries” shall mean, collectively, Jean Caby SAS and Dispranor SARL and
“Subsidiary” shall mean either one of the foregoing. 
 1.81 Target Company IT Systems. “Target Company IT
Systems” shall mean all computer hardware (including network and communications equipment) and software (including associated preparatory materials, user manuals and other related documentation) owned, used, leased or licensed by Smithfield
France and the Subsidiaries. 
 1.82 Target Employee Benefit Plan. “Target Employee Benefit Plan” shall mean, in any
jurisdiction, any scheme, fund, arrangement, plan or agreement, custom or practice (whether funded or unfunded) under which Smithfield or Smithfield France or any of the Subsidiaries provides, is liable or contingently liable to provide or has
agreed to provide (or to which Smithfield or Smithfield France or any of the Subsidiaries contributes, is liable or contingently liable to contribute or has agreed to contribute to the provision) of any Retirement Benefits for or in respect of any
employee but excluding any State Social Security or Industry-Wide Plan . 
 1.83 Tax. “Tax” shall mean any tax (including
income tax, profit tax, withholding tax, précompte, capital gains tax, value-added tax, sales tax, property tax, gift tax, real estate tax, excise tax, retirement, unemployment, CSG, CRDS and social security contributions in any applicable
jurisdiction), tariff or duty (including any stamp or customs duty) and any fine, penalty, interest or addition to tax imposed, assessed or collected by or under the authority of any governmental body; and Taxes shall be construed accordingly.

 1.84 Tax Regulations. “Tax Regulations” shall mean any Tax or custom law, statute, decree, ordinance, rule, order or
other text of application of the said law applicable in a given country as well as any international treaty (including the derivative law – directive, regulations or others – of this treaty). 
 1.85 Tax Return. “Tax Return” shall mean any return, report, information return, statement, declaration or other document (including any
related or supporting information) filed or required to be filed with any Governmental Authority in connection with any determination, assessment or collection of any Tax or other administration of any laws, regulations or administrative
requirements. 
 1.86 Third-Party Intellectual Property Rights. “Third Party Intellectual Property Rights” shall have the
meaning give to such term in Section 3.34 hereof. 
 1.87 Third Party Right. “Third Party Right” shall mean any
interest or equity of any person (including any right to acquire, option or right of pre emption or conversion or similar rights or agreements) or any mortgage, charge, pledge, lien, assignment, hypothecation, security 
  

 9 

 
interest, title retention, right of set off, trust arrangement for the purpose of providing security or any other security agreement or arrangement of any
kind, or any agreement to create any of the above. 
 1.88 Transaction Material Adverse Effect. “Transaction Material Adverse
Effect” shall mean a material adverse change in or effect on the financial condition, business, properties, results of operations or prospects of (i) the European Business and (ii) Smithfield France and the Subsidiaries, taken as a
whole; provided, however, that “Transaction Material Adverse Effect” shall not include the effect of any change or effect arising out of or attributable to (a) the markets in which the European Business or Smithfield
France and the Subsidiaries operate generally, (b) general economic or political conditions (including those effecting the securities markets), (c) the public announcement of this Agreement or the Purchase Agreement or of the consummation
of the transactions contemplated hereby and thereby, (d) any change arising in connection with acts of war (whether or not declared), sabotage or terrorism, military actions or the escalation thereof or other force majeure events occurring
after the date hereof or (e) changes in Laws or accounting rules. 
 1.89 Tri-Artisan. “Tri-Artisan” shall have the
meaning given to such term in Section 4.1(d). 
 ARTICLE II 
 CONTRIBUTION AND SHARE ISSUANCE 
 2.1 Contribution to the Company and Share
Issuance 
  

	 	(a)	At the Closing: 

  

	 	(i)	Smithfield shall contribute to the Company the Contributed Shares. 

  

	 	(ii)	Smithfield shall contribute to the Company the Smithfield Target Debt. 

  

	 	(iii)	EPOF shall contribute to the Company the EPOF Target Debt. 

  

	 	(iv)	OPPS shall contribute to the Company the OPPS Target Debt. 

 (b) For the implementation of the steps foreseen in Section 2.1(a)(i) at the Closing, Smithfield in its capacity as shareholder of the Company shall call a general shareholders meeting and shall resolve to increase the
Company’s share capital in the amount of €12,499,999.00 in order to issue the following Shares 
 (i) in
consideration of Smithfield’s contribution pursuant of the Contributed Shares, Smithfield shall subscribe for and receive 12,499,999 new ordinary Shares with a nominal value of €1 each of the same class and series as the Smithfield Initial
Shares, free and clear of all Liens, paying a total issuance premium of €87,500,001; 
  

 10 

 For the avoidance of doubt it is stated that the issuance premium is not to be paid in cash but is the
difference between the nominal value of the Shares received and the value given to the contribution contemplated by Section 2.1(a)(i). The increase in share capital of the Company pursuant to this Section 2.1(b) shall be
documented by a notarial public deed. 
 (c) For the implementation of the steps foreseen in Sections 2.1(a)(ii), 2.1(a)(iii)
and 2.1(a)(iv) at the Closing, Smithfield in its capacity as shareholder of the Company shall call a general shareholders meeting and shall resolve to increase the Company’s share capital in the amount of €24,999,999.00 in order to
issue the following Shares, first, to Smithfield and, second, following completion of the first step, to EPOF and OPPS: 
 (i)
in consideration of Smithfield’s contribution pursuant to Section 2.1(a)(ii), Smithfield shall subscribe for and receive 6,250,000 new ordinary Shares with a nominal value of €1 each of the same class and series as the
Smithfield Initial Shares, free and clear of all Liens, paying a total issuance premium of €43,750,000; and 
 (ii)
immediately following the transaction in Section 2.1(c)(i): 
 (A) in consideration of EPOF’s contribution
pursuant to Section 2.1(a)(iii), EPOF shall subscribe for and receive 12,866,804 new ordinary Shares with a nominal value of €1 each of the same class and series as the Smithfield Initial Shares, free and clear of all Liens, paying
a total issuance premium of €61,856,735; and 
 (B) in consideration of OPPS’s contribution pursuant to
Section 2.1(a)(iv), OPPS shall subscribe for and receive 5,883,195 new ordinary Shares with a nominal value of €1 each of the same class and series as the Smithfield Initial Shares, free and clear of all Liens, paying a total
issuance premium of €28,283,266. 
 For the avoidance of doubt, the issuance premiums payable in this Section 2.1(c) will not be
paid in cash but shall rather be represented by the difference in value between the nominal value of the Shares received by the contributor and the determined value of the contribution by such contributor. The increase in share capital of the
Company pursuant to this Section 2.1(c) shall be documented by a notarial public deed. 
 (d) Immediately following the
transactions contemplated by Section 2.1(a), 2.1(b) and 2.1(c), Smithfield shall sell to EPOF and EPOF shall acquire from Smithfield, free and clear of all Liens, the EPOF Purchased Shares out of the Smithfield Initial
Shares, equivalent to 34.31% of the share capital of the Company before the share capital increases contemplated by Sections 2.1(b) and 2.1(c), with a nominal value of €1 per Share and (ii) Smithfield shall sell to OPPS and
OPPS shall acquire from Smithfield, free and clear of all Liens, the OPPS Purchased Shares, out of the Smithfield Initial Shares, equivalent to 15.69 % of the share capital of the Company before the share capital increases contemplated by
Section 2.1(b) and 2.1(c), with a nominal value of €1 per Share. Such sales shall be documented by notarial public deeds. The price for the transfer of these 1,600 Shares, equivalent to 50% of the Smithfield Initial Shares,
shall be the nominal value of such shares (i.e., €1 per Share). The Company shall acknowledge such transfer at the Closing. 
  

 11 

 (e) After completion of the matters described in this Section 2.1, Smithfield shall own
18,751,599 Shares, equivalent to 50% of the outstanding Shares (the “Smithfield Shares”), EPOF shall own 12,867,902 Shares equivalent to 34.31% (the “EPOF Shares”) of the outstanding Shares and OPPS shall own
5,883,697 Shares, equivalent to 15.69% (the “OPPS Shares”) of the outstanding Shares, with each party owning Shares that confer the same rights and obligations upon each shareholder. 
 2.2 Contribution to HoldCo and Share Issuance 
 (a) Immediately following the transactions contemplated by Section 2.1, Smithfield shall (i) contribute the Smithfield Shares to HoldCo and (ii) enter into the Earn-Out Agreement. 
 (b) Immediately following the transactions contemplated by Section 2.1, EPOF shall (i) contribute the EPOF Shares to HoldCo and
(ii) enter into the Earn-Out Agreement. 
 (c) Immediately following the transactions contemplated by Section 2.1, OPPS
shall (i) contribute the OPPS Shares to HoldCo and (ii) enter into the Earn-Out Agreement. 
 (d) For the implementation of the
steps foreseen in Section 2.2(a), Section 2.2 (b) and Section 2.2 (c): 
 (i)
Smithfield in its capacity as sole shareholder of HoldCo shall hold a general shareholders meeting and shall resolve to increase HoldCo’s share capital in the amount of €38,833,978.00 in order to issue, in consideration of the
contributions pursuant to Sections 2.2(a), 2.2(b) and 2.2(c), 38,833,978 new HoldCo Shares; and 
 (ii)
(A) Smithfield shall subscribe for and receive 19,416,989 new ordinary HoldCo Shares with a nominal value of €1 each of the same class and series as the Smithfield Initial HoldCo Shares, free and clear of all Liens, other than as
contemplated by the Stockholders Agreement or in the By-laws of the HoldCo, paying a total issuance premium of €110,029,604.33 (B) EPOF shall subscribe for and receive 13,324,512 new HoldCo Shares with a nominal value of €1 each of
the same class and series as the Smithfield Initial HoldCo Shares, free and clear of all Liens, other than as contemplated by the Stockholders Agreement or in the By-laws of the HoldCo, paying a total issuance premium of €75,505,568.00, and
(C) OPPS shall subscribe for and receive 6,092,477 new HoldCo Shares with a nominal value of €1 each of the same class and series as the Smithfield Initial HoldCo Shares, free and clear of all Liens, other than as contemplated by the
Stockholders Agreement or in the By-laws of the HoldCo, paying a total issuance premium of €34,524,036.33. For the avoidance of doubt it is stated that the issuance premiums are not to be paid in cash but is the difference between the nominal
value of the HoldCo Shares received and the value given to the contribution of the Shares by each party. 
  

 12 

 The increase in share capital of HoldCo pursuant to this Section 2.2(d) shall be documented
by a notarial public deed. The parties acknowledge that the contribution of the Smithfield Shares, the EPOF Shares and the OPPS Shares to HoldCo shall be subject to the condition precedent that the notarial deeds documenting the increase in share
capital of the Company contemplated by Section 2.1 shall have been accepted for registration by the Companies Registry. The parties shall take all necessary actions, subject to applicable Law, to give full effectiveness to the transfers
of Shares to HoldCo contemplated by this Section 2.2, including carrying out any and all steps and to granting any complementary public instruments, deeds, and documents that may be required to cause the full registration of the notarial
public deeds documenting the increases in the share capital of the Company contemplated by Section 2.1. 
 (e) In the same
general shareholders meeting stated as per Section 2.2(d), Smithfield shall resolve, inter alia, (A) to establish that the managing body of HoldCo shall be a Board of Directors composed of six (6) members and shall, pursuant to
the process contemplated by the Stockholders Agreement, appoint the nominees of Smithfield and OCM as new members of the Board of HoldCo; and (B) to amend the By-Laws of HoldCo to reflect, as applicable, the terms and provisions of the
Stockholders Agreement to the extent permitted or required by Law. In order to adapt the By-laws to the terms and provisions of the Stockholders Agreement, Smithfield shall, as sole shareholder of HoldCo, resolve to convert the HoldCo Shares into
two classes of stock (Class A (the “Class A HoldCo Shares”) and Class B (the “Class B HoldCo Shares”)). The Class A HoldCo Shares and the Class B HoldCo Shares shall convey exactly the same rights and
obligations upon each shareholder and each such HoldCo Share shall possess one (1) vote; provided, however, that (i) (a) the Class A HoldCo Shares shall have the right to nominate three (3) persons for election
to the Board of Directors (equivalent to 50% of the number of members) (hereinafter “Class A Board Members”) and (b) the Class B HoldCo Shares shall have the right to nominate three (3) persons for election to the Board of
Directors (equivalent to 50% of the number of members) (hereinafter “Class B Board Members”); (ii) the Chairman and Vice-secretary, as one group, and the Vice-chairman and Secretary, as another group, shall be appointed on a
rotating basis for two (2) year terms, such that the Class A Board Members shall initially propose for appointment the Chairman and Vice-secretary and that the Class B Board Members shall initially propose for appointment the Vice-chairman
and Secretary; and (iii) providing that certain decisions of the Board of Directors shall require the approval of two (2) Class A Board Members and two (2) Class B Board Members. In the event that there is any conflict between
the provisions of the Stockholders Agreement and the rights given to the Class A HoldCo Shares and the Class B HoldCo Shares which adversely affects the rights of either Smithfield or OCM (or both of them) under the Stockholders Agreement, the
parties shall cause the By-laws to be amended to remove the distinction between Class A HoldCo Shares and Class B HoldCo Shares. Additionally, in the event that the Companies Registry does not accept the amendments to the By-laws contemplated
by this Section 2.2(e), the parties shall negotiate in good faith to prepare a set of By-laws which is both consistent with the terms of the Stockholders Agreement and as contemplated by this Section 2.2(e) which will be
acceptable to the Companies Registry. 
 As a consequence of the conversion of Shares into two classes of stock, the general shareholders
meeting shall allocate the new HoldCo Shares as follows: 
 (i) In consideration for the Smithfield Initial HoldCo Shares,
Smithfield shall receive 1,600 Class A HoldCo Shares and 1,600 Class B HoldCo Shares. 
  

 13 

 (ii) In consideration for the 19,416,989 ordinary HoldCo Shares received by Smithfield as
a consequence of the share capital increase foreseen in Section 2.2(d), Smithfield shall receive 19,416,989 Class A HoldCo Shares. 
 (iii) In consideration for the 13,324,512 ordinary HoldCo Shares received by EPOF as a consequence of the share capital increase foreseen in Section 2.2(d), EPOF shall receive 13,324,512 Class B HoldCo
Shares. 
 (iv) In consideration for the 6,092,477 ordinary HoldCo Shares received by OPPS as a consequence of the share
capital increase foreseen in Section 2.2(d), OPPS shall receive 6,092,477 Class B HoldCo Shares. 
 (f) Immediately following the
transactions contemplated by Section 2.2(a) through 2.1(e), Smithfield shall sell to EPOF and EPOF shall acquire from Smithfield, free and clear of all Liens, 1,098 Class B HoldCo Shares, received by Smithfield upon the conversion of the
Smithfield Initial HoldCo Shares into Class B HoldCo Shares and equivalent to 34.31% of the share capital of HoldCo before the share capital increase contemplated by Section 2.2(d), with a nominal value of €1 per Class B HoldCo
Share and (ii) Smithfield shall sell to OPPS and OPPS shall acquire from Smithfield, free and clear of all Liens, 502 Class B HoldCo Shares, stemming out of the conversion of the Smithfield Initial HoldCo Shares into Class B HoldCo Shares
equivalent to 15.69% of the share capital of HoldCo before the share capital increase contemplated by Section 2.2(d), with a nominal value of €1 per Class B HoldCo Share. Such sales shall be documented by notarial public deeds. The
price for the transfer of these 1,600 Class B HoldCo Shares shall be the nominal value of such shares (i.e., €1 per Class B HoldCo Share). HoldCo shall acknowledge such transfer at the Closing. 
 (g) After completion of the matters described in this Section 2.2, Smithfield shall own 19,418,589 Class A HoldCo Shares (the
“Smithfield HoldCo Shares”), equivalent to 50% of the outstanding HoldCo Shares, EPOF shall own 13,325,610 Class B HoldCo Shares (the “EPOF HoldCo Shares”), equivalent to 34.31% of the outstanding HoldCo Shares, and
OPPS shall own 6,092,979 Class B HoldCo Shares (the “OPPS HoldCo Shares”), equivalent to 15.69% of the outstanding HoldCo Shares, with each party owning HoldCo Shares that confer the same rights and obligations upon each
shareholder. 
 2.3 Deliveries at Closing 
 (a) By Smithfield. (i) At the Closing, Smithfield shall deliver to the Company the following items, each (where applicable) properly executed and dated as of the Closing Date and in form and substance
reasonably satisfactory to the Company and: (A) the Contributed Shares, along with duly-executed stock powers (or equivalent instruments of transfer) therefor, to convey the Contributed Shares to the Company; (B) the Smithfield Target
Debt; and (C) the certificate contemplated by Section 6.1(d) hereof; and (ii) immediately following the transactions contemplated by Section 2.2, Smithfield shall deliver to HoldCo, EPOF and OPPS, the following
items, each (where applicable) properly executed and dated as of the Closing Date and in form and substance reasonably satisfactory to HoldCo, EPOF and OPPS: (A) the Earn-Out Agreement and (B) the Stockholders Agreement. 
  

 14 

 (b) By EPOF. (i) At the Closing, EPOF shall deliver to the Company the following items, each
(where applicable) properly executed and dated as of the Closing Date and in a form reasonably satisfactory to the Company: (A) the EPOF Target Debt; and (B) the certificate contemplated by Section 6.2(c) hereof; and
(ii) immediately following the transactions contemplated by Section 2.2, EPOF shall deliver to HoldCo, Smithfield and OPPS the following items, each (where applicable) properly executed and dated as of the Closing Date and in form
and substance reasonably satisfactory to HoldCo, Smithfield and OPPS: (A) the Earn-Out Agreement; and (B) the Stockholders Agreement. 
 (c) By OPPS. (i) At the Closing, OPPS shall deliver to the Company the following items, each (where applicable) properly executed and dated as of the Closing Date and in a form reasonably satisfactory to the Company and/or
Smithfield, as applicable: (A) the OPPS Target Debt; and (B) the certificate contemplated by Section 6.2(c) hereof; and (ii) immediately following the transactions contemplated by Section 2.2, OPPS shall
deliver to HoldCo, Smithfield and EPOF the following items, each (where applicable) properly executed and dated as of the Closing Date and in form and substance reasonably satisfactory to HoldCo, Smithfield and EPOF: (A) the Earn-Out Agreement;
and (B) the Stockholders Agreement. 
 (d) By the Company. 
 (i) At the Closing, the Company shall deliver to Smithfield the following items, each (where applicable) properly executed and dated as of
the Closing Date and in a form reasonably satisfactory to Smithfield: (A) a certificate issued by the Chairman and the Secretary of the Board of the Company (or equivalent officer) confirming the terms of the share capital increases described
under Sections 2.1(b) and 2.1(c) above; and (B) a copy of the notarial public deeds documenting the share capital increases described under Sections 2.1(b) and 2.1(c) above. 
 (ii) At the Closing, the Company shall deliver to EPOF the following items, each (where applicable) properly executed and dated as of the
Closing Date and in a form reasonably satisfactory to EPOF: (A) a certificate issued by the Chairman and the Secretary of the Board of the Company (or equivalent officers) confirming the terms of the share capital increase described under
Section 2.1(c) and the purchase by EPOF of the EPOF Purchased Shares as described in Section 2.1(d); and (B) a copy of the notarial public deed documenting the share capital increase described under
Section 2.1(c) above. 
 (iii) At the Closing, the Company shall deliver to OPPS the following items, each (where
applicable) properly executed and dated as of the Closing Date and in a form reasonably satisfactory to OPPS: (A) a certificate issued by the Chairman and the Secretary of the Board of the Company (or equivalent officers) confirming the terms
of the share capital increase described under Section 2.1(c) and the purchase by OPPS of the OPPS Purchased Shares as described in Section 2.1(d); and (B) a copy of the notarial public deed documenting the share capital
increase described under Section 2.1(c) above. 
  

 15 

 (e) By HoldCo 
 (i) Immediately following the transactions contemplated by Section 2.2, HoldCo shall deliver to Smithfield the following
items, each (where applicable) properly executed and dated as of the Closing Date and in a form reasonably satisfactory to Smithfield: (A) a certificate issued by the Chairman and the Secretary of the Board of HoldCo (or equivalent officers)
confirming (1) the terms of the share capital increase described under Section 2.2(d) above and (2) that Smithfield owns 1,600 Class A HoldCo Shares and it is entitled to receive 19,416,989 new Class A HoldCo Shares
as contemplated by Section 2.2(d), and that such ownership of 1,600 Class A HoldCo Shares by Smithfield is recorded in the Registry Book of Shares of HoldCo; (B) the Earn-Out Agreement; (C) the Stockholders Agreement; and
(D) a copy of the notarial public deed documenting the share capital increase described under Section 2.2(d) above, and documenting the rest of resolutions described under Section 2.2(e) above. 
 (ii) Immediately following the transactions contemplated by Section 2.2, HoldCo shall deliver to EPOF the following items,
each (where applicable) properly executed and dated as of the Closing Date and in a form reasonably satisfactory to EPOF: (A) a certificate issued by the Chairman and the Secretary of the Board of HoldCo (or equivalent officers) confirming
(1) the terms of the share capital increase described under Section 2.2(d) above, (2) the purchase by EPOF of the HoldCo Shares as described in Section 2.2(f), and (3) that EPOF owns 1,098 Class B HoldCo Shares
and it is entitled to receive 13,324,512 new Class B HoldCo Shares as contemplated by Section 2.2(d), and that such ownership of 1,098 Class B HoldCo Shares by EPOF is recorded in the Registry Book of Shares of HoldCo; (B) the
Earn-Out Agreement; (C) the Stockholders Agreement; and (D) a copy of the notarial public deed documenting the share capital increase described under Section 2.2(d) above, and documenting the rest of resolutions described under
Section 2.2(e) above. 
 (iii) Immediately following the transactions contemplated by Section 2.2,
HoldCo shall deliver to OPPS the following items, each (where applicable) properly executed and dated as of the Closing Date and in a form reasonably satisfactory to OPPS: (A) a certificate issued by the Chairman and the Secretary of the Board
of HoldCo (or equivalent officers) confirming (1) the terms of the share capital increase described under Section 2.2(d) above, (2) the purchase by OPPS of the HoldCo Shares as described in Section 2.2(f), and
(3) that OPPS owns 502 Class B HoldCo Shares and it is entitled to receive 6,092,477 new Class B HoldCo Shares as contemplated by Section 2.2(d), and that such ownership of 502 Class B HoldCo Shares by OPPS is recorded in the
Registry Book of Shares of HoldCo; (B) the Earn-Out Agreement; (C) the Stockholders Agreement; and (D) a copy of the notarial public deed documenting the share capital increase described under Section 2.2(d) above, and
documenting the rest of resolutions described under Section 2.2(e) above. 
 2.4 Company Directors. At Closing, HoldCo in
its capacity as sole shareholder of the Company shall hold a general shareholders’ meeting and shall resolve, inter alia, to appoint the nominees of OCM as new members of the Board of the Company pursuant to the terms of the Stockholders
Agreement, or alternatively to appoint a managing body of the Company with an 

  

 16 

 
even number of members that respects an equal distribution of positions, Smithfield being entitled to appoint 50% of the members of that managing body and
OCM being entitled to appoint the remaining 50% of the members of that managing body. 
 2.5 Deliveries Post Closing by HoldCo.
Immediately following the registration with the Companies Registry of the notarial public deeds contemplated by Section 2.2(d), HoldCo shall deliver (i) to Smithfield, properly executed and in a form reasonably satisfactory to
Smithfield, a certificate issued by the Chairman and the Secretary of the Board of HoldCo (or equivalent officers) confirming that Smithfield owns the Smithfield HoldCo Shares as contemplated by Section 2.2(g); (ii) to EPOF,
properly executed and in a form reasonably satisfactory to EPOF, a certificate issued by the Chairman and the Secretary of the Board of HoldCo (or equivalent officers) confirming that EPOF owns the EPOF HoldCo Shares as contemplated by
Section 2.2(g); and (iii) to OPPS, properly executed and in a form reasonably satisfactory to OPPS, a certificate issued by the Chairman and the Secretary of the Board of HoldCo (or equivalent officers) confirming that OPPS owns the
OPPS HoldCo Shares as contemplated by Section 2.2(g). 
 2.6 Registration with Companies Registry 
 (a) All parties commit to achieve the registration with the Companies Registry (Registro Mercantil) of the share capital increases in Sections
2.1(b), 2.1(c) and 2.2(d). 
 (b) In case of any problems with the registration of such share capital increases, all
parties commit to take all necessary steps and sign any required agreements or resolutions to correct the situation and cause such share capital increases to be registered. 
 (c) During any period in which such registrations have not been completed, including in the case of the contribution by Smithfield, EPOF and OPPS to
HoldCo of Shares in the Company where the Shares created by the capital increase have not yet been registered, the parties agree that they shall be bound by the terms of the Stockholders Agreement in regards to HoldCo and the Company as if the
registration had taken place. 
 ARTICLE III 
 WARRANTIES OF SMITHFIELD 
 Smithfield hereby warrants to OCM, the Company and HoldCo that:

 3.1 Organization of Smithfield. Smithfield is a private limited liability company duly organized, validly existing and in good
standing under the laws of the Netherlands and has full corporate power to enter into this Agreement and to perform its obligations hereunder. 
 3.2 Smithfield Authorization; Execution and Delivery; Enforceability. The execution, delivery and performance by Smithfield of this Agreement, and of all of the other documents and instruments required hereby from Smithfield, are
within the corporate power of Smithfield and have been duly authorized by all necessary corporate action of Smithfield. This Agreement has been duly executed and delivered by Smithfield. This Agreement is, and the other documents and instruments
required hereby to which Smithfield is a party will be, when executed and delivered by the parties thereto, the valid and binding obligations of Smithfield, enforceable 

  

 17 

 
against Smithfield in accordance with their respective terms, except as such enforceability may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting generally the enforcement of creditors’ rights and (b) the availability of equitable remedies (whether in a proceeding in equity or at law). 
 3.3 No Violation or Conflict by Smithfield. The execution, delivery and performance of this Agreement, and the consummation of the transactions
contemplated herein, do not and will not conflict with or violate (a) any material Law, judgment, order or decree binding on Smithfield or (b) the Constituent Documents of Smithfield. 
 3.4 Title to Contributed Shares. Smithfield owns, or will at the Closing own, of record and beneficially good and valid title to the Contributed
Shares, free and clear of any and all Liens. Upon delivery of the certificates representing the Contributed Shares to the Company at the Closing and upon Smithfield’s receipt of the consideration contemplated by Section 2.1(a)
hereof therefor, good and valid title to the Contributed Shares, free and clear of all Liens, will pass to the Company. 
 3.5
Organization of the Company and HoldCo. Each of the Company and HoldCo is a private limited company duly organized, validly existing and in good standing under the laws of Spain and has full corporate power to enter into this Agreement and to
perform its obligations hereunder. Other than as contemplated by this Agreement, (i) neither the Company nor HoldCo has any liabilities in respect of any Person and (ii) prior to entering into this Agreement, each of the Company and HoldCo
has been a dormant company and has not assumed any obligation or commitment and has not carried out any activity other than, in the case of the Company, entering into the Purchase Agreement and the Original Contribution Agreement and other than
transactions among the Company, on the one hand, and EPOF and/or OPPS on the other hand. 
 3.6 Company and HoldCo Authorization;
Execution and Delivery; Enforceability. The execution, delivery and performance by each of the Company and HoldCo of this Agreement, and of all of the other documents and instruments required hereby from the Company and HoldCo, are within the
corporate power of the Company or HoldCo, as the case may be, and have been duly authorized by all necessary corporate action of the Company and HoldCo. This Agreement has been duly executed and delivered by each of the Company and HoldCo. This
Agreement is, and the other documents and instruments required hereby to which the Company or HoldCo is a party will be, when executed and delivered by the parties thereto, the valid and binding obligations of each of the Company and HoldCo,
enforceable against each of the Company and HoldCo in accordance with their respective terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting
generally the enforcement of creditors’ rights and (a) the availability of equitable remedies (whether in a proceeding in equity or at law). 
 3.7 No Violation or Conflict by the Company or HoldCo. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated herein, do not and will not conflict with
or violate any (a) Law, judgment, order or decree binding on the Company or HoldCo or (b) the Constituent Documents of the Company or HoldCo. 
  

 18 

 3.8 Organization and Authority of Smithfield France. Smithfield France is duly organized, validly
existing and in good standing under the laws of France. Smithfield France has full corporate power to carry on its business as it is now being conducted and to own, operate and hold under lease its assets and properties as, and in the places where,
such properties and assets now are owned, operated or held. 
 3.9 Capitalization. The authorized equity capitalization of Smithfield
France is set forth on Exhibit 3.9 attached hereto. The Contributed Shares represent all of the issued and outstanding capital stock of Smithfield France, have been duly and validly authorized and issued and are fully paid and non-assessable. There
are no options, warrants or other rights to subscribe for or purchase any capital stock of Smithfield France or securities convertible into or exchangeable for, or which otherwise confer on the holder any right to acquire, any capital stock of
Smithfield France, nor is Smithfield France committed to issue any such option, warrant or other right. 
 3.10 No Violation or Conflict
by Smithfield France. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated herein, do not and will not conflict with or violate any (a) Law, judgment, order or decree binding on
Smithfield France or (b) the Constituent Documents of Smithfield France. 
 3.11 Subsidiaries. All of the outstanding shares of
capital stock and other equity securities of the Subsidiaries have been validly issued and are fully paid and nonassessable, and are owned, directly or indirectly, by Smithfield France, free and clear of all Liens. There are no options, warrants or
other rights to subscribe for or purchase any capital stock of the Subsidiaries or securities convertible into or exchangeable for, or which otherwise confer on the holder any right to acquire, any capital stock of the Subsidiaries, nor are any of
the Subsidiaries committed to issue any such option, warrant or other right. The name and jurisdiction of incorporation or organization of each Subsidiary is set forth on Exhibit 3.11 attached hereto. The Subsidiaries represent all of the
subsidiaries (direct and indirect) of Smithfield France. 
 3.12 Sufficiency of Assets. The Assets constitute, in all material
respects, all tangible and intangible assets, contracts and rights used in the FrenchCo Business as such business is presently conducted. 
 3.13 Financial Statements. The Financial Statements are true and correct in all material respects, present fairly the financial condition of Smithfield France and the Subsidiaries as of the periods presented, and were prepared in
accordance with generally accepted accounting principles as in effect in France as of the date of the subject Financial Statements applied on a basis consistent with Smithfield France’s and the Subsidiaries’ past practice and delivered to
OCM with a reconciliation to GAAP. The statements of operations included in the Financial Statements are true and correct in all material respects, present fairly the results of operations for such periods, and were prepared in accordance with
generally accepted accounting principles as in effect in France as of the date of the subject Financial Statements applied on a basis consistent with Smithfield France’s and the Subsidiaries’ past practice and delivered to OCM with a
reconciliation to GAAP. Neither Smithfield France nor the Subsidiaries were subject to any liability or obligation, whether absolute or contingent, accrued or unaccrued, asserted or unasserted, known or unknown, or otherwise (collectively
“Liabilities”) other than (i) Liabilities 

  

 19 

 
reflected on the Financial Statements or disclosed in the notes thereto, (ii) Liabilities incurred in the ordinary course of business consistent with
past practice subsequent to the date of the most recent balance sheet included in the Financial Statements and (iii) such other Liabilities as would not reasonably be expected to, individually or in the aggregate, constitute a Material Adverse
Effect. 
 3.14 Liabilities at Effective Time of Closing. Other than the Debt, Smithfield France will be contributed to the Company on
a debt-free basis with no third party or intercompany loans, no underfunded pension obligations and no other liabilities generated outside of the ordinary course of the FrenchCo Business. Smithfield France will be contributed to the Company with
customary levels of working capital. 
 3.15 Authorizations, Valid Obligations, Filings and Consents. 
 (a) Smithfield has obtained all governmental, statutory, regulatory or other consents, licenses or authorizations required to empower it to enter into and
perform its obligations under this Agreement where failure to obtain them would materially and adversely affect its ability to enter into or perform its obligations under this Agreement. 
 (b) Entry into and performance by Smithfield of this Agreement will not breach any contract or agreement by which it is bound where the breach would
materially and adversely affect Smithfield’s ability to enter into or perform its obligations under this Agreement. 
 3.16
Smithfield, the Shares and Smithfield France and Subsidiaries. No person has entered into any agreement or arrangement whereby any person has the right (exercisable now or in the future and whether contingent or not) to call for the creation,
allotment or issue of any share or loan capital in Smithfield France or any of the Subsidiaries (including by way of option or under any right of conversion or pre-emption). There are no commitments by Smithfield France or any of the Subsidiaries to
issue any shares of Smithfield France or any Subsidiary. There are no outstanding obligations of Smithfield France or any of the Subsidiaries to repurchase, redeem or otherwise acquire any Shares. Smithfield is entitled to freely transfer (or
procure the transfer of) the Contributed Shares. 
 3.17 Organizational Documents of Smithfield France and the Subsidiaries. All
material returns, particulars, resolutions and other documents required under the Law of Smithfield France’s or such Subsidiary’s jurisdiction of incorporation to be delivered on behalf of Smithfield France or such Subsidiary to, or to be
registered with, the relevant commercial registry have been made and delivered or registered. 
 3.18 Absence of Changes. Since the
date of the last Financial Statements: 
 (a) and during the period to the date of this Agreement, there has been no Material Adverse Effect;

 (b) the operation of the FrenchCo Business and Smithfield France and each of the Subsidiaries has been carried on only in the ordinary
course and no material transaction has been entered into (other than the entering into of that certain Trademark License Agreement between Jean Caby SAS and Weight Watchers International), no material liability has been assumed and no material
payment has been made which is not in the ordinary course of business; 
  

 20 

 (c) no dividend or other distribution has been declared, authorized, paid or made, nor has there been any
reduction of paid-up share capital, by Smithfield France or any of the Subsidiaries (except for any dividends provided for in the Financial Statements); 
 (d) neither Smithfield France nor any of the Subsidiaries has issued or agreed to issue any share or loan capital or other securities, including, without limitation, bonds and profit certificates; 
 (e) neither Smithfield France nor any of the Subsidiaries has borrowed or raised any money in the nature of a borrowing or taken any borrowing facility
(other than (i) the Debt and (ii) through the cash pooling arrangements of Smithfield and its Affiliates); and 
 (f) neither
Smithfield France nor any of the Subsidiaries has repaid any borrowing or indebtedness in advance of its stated maturity. 
 3.19
Statutory Books. The statutory books (including all registers and minute books) of Smithfield France and each of the Subsidiaries required to be kept by applicable Laws in its jurisdiction of incorporation have been maintained in all material
respects in accordance with such Laws and no notice or allegation that any of them is incorrect or should be rectified has been received. 
 3.20 Accounting Records. The accounting records of Smithfield France and each of the Subsidiaries required to be kept by applicable Laws in its jurisdiction of incorporation have been maintained in accordance with such applicable
Laws and are up-to-date in all material respects. 
 3.21 Securities Exchange Act. To the Knowledge of Smithfield, the management of
Smithfield has: 
 (a) designed and implemented disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) to ensure that material information relating to the FrenchCo Business is made known to the management of Smithfield by others within the FrenchCo Business; and

 (b) disclosed in relation to the FrenchCo Business, based on its most recent evaluation prior to the date hereof, to Smithfield’s
external auditors and the audit committee of its Board of Directors: 
 (i) any significant deficiencies and material
weaknesses in the design or operation of internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) which are reasonably likely to adversely affect Smithfield’s ability to record, process, summarize and
report financial data; and 
  

 21 

 (ii) any fraud, whether or not material, that involves management or other employees who
have a significant role in Smithfield’s internal controls over financial reporting. 
 Since the date of the last Financial Statements,
any material change in internal control over financial reporting relating to the FrenchCo Business required by the Exchange Act to be disclosed in the reports filed by Smithfield with the Securities and Exchange Commission has been so disclosed.

 3.22 Borrowings and Mortgages. Since the date of the last Financial Statements: 
 (a) No guarantee, mortgage, charge, pledge, lien, assignment or other security (other than a lien arising by operation of law in the ordinary course of
business) over or affecting the whole or any material part of the undertaking or assets of Smithfield France or any of the Subsidiaries has been given or entered into by Smithfield France or any of the Subsidiaries and there is no agreement or
commitment to give or create any. 
 (b) Neither Smithfield France nor any of the Subsidiaries has any outstanding loan capital, has lent any
money that has not been repaid, or has any material debts owing to Smithfield France or any of the Subsidiaries other than debts that have arisen in the ordinary course of business. 
 (c) Neither Smithfield France nor any of the Subsidiaries has: 
 (i) factored any of its debts or discounted any of its debts or engaged in any financing of a type which would need to be shown or
reflected in the Financial Statements; or 
 (ii) waived any material right of set-off it may have against any third party,
other than in the ordinary course of business. 
 (d) No indebtedness of Smithfield France or any of the Subsidiaries is due and payable and
no security over any of the assets of Smithfield France or any of the Subsidiaries is now enforceable, whether by virtue of the stated maturity date of the indebtedness having been reached or otherwise. Neither Smithfield France nor any of the
Subsidiaries has received any notice whose terms have not been complied with and/or carried out in all material respects from any creditor requiring any payment to be made and/or intimating the enforcement of any security which it may hold over the
assets of Smithfield France or such Subsidiary. 
 3.23 Sureties. No person has given any guarantee of or security for any overdraft,
loan or loan facility granted to Smithfield France or any of the Subsidiaries that remains in effect. Neither Smithfield France nor any of the Subsidiaries has given, or agreed to give, any guarantee or security for the benefit of any third party
that remains in effect. 
 3.24 Grants. During the period of three years ending on the date of this Agreement, neither Smithfield
France nor any of the Subsidiaries has applied for or received any grant or allowance from any authority or agency. Entry into and performance by Smithfield of this Agreement will not, to the Knowledge of Smithfield, result in a breach or default by
Smithfield France or any Subsidiary with respect to any grant or allowance from any authority or agency or trigger any obligation to accelerate the reimbursement of any grant or allowance. 
  

 22 

 3.25 Licenses. None of Smithfield, Smithfield France or the Subsidiaries has received any written
notice in the three years ending on the date of this Agreement (and for the purposes of Section 6.1, the three years ending on the Closing Date) or any other written notice which is still outstanding, from a Governmental
Authority alleging that Smithfield France or any of the Subsidiaries has not obtained any material license, permission, authorization (public or private) or consent required for carrying on the FrenchCo Business effectively in the places and in the
manner in which it is carried on at the date of this Agreement in accordance with all applicable Laws (each a “Permit” and collectively, “Permits”). A Permit is material for this purpose if failure to obtain it
would have either: 
 (a) a cost (including, for these purposes, a loss of profit) to the FrenchCo Business of more than €200,000; or

 (b) a cost (including, for these purposes, a loss of profit) to the FrenchCo Business, when added to the cost of any failure to obtain any
other Permit, of more than €500,000. 
 3.26 Compliance. In the 24 months prior to the date of this Agreement (and for the
purposes of Section 6.1, the 24 months prior to the Closing Date), or any such longer period with respect to which a notice of non-compliance remains unresolved as at either such date: 
 (a) Smithfield France and each of the Subsidiaries has conducted its business and corporate affairs in all material respects in accordance with its
Constituent Documents and Permits. 
 (b) There has been no default by Smithfield France or any of the Subsidiaries under any order, decree
or judgment of any court or any Governmental Authority which applies to the FrenchCo Business (or any part of it) where either: 
 (i) any such single default has had or is likely to have a cost (including, for these purposes, a loss of profit) to the FrenchCo Business of more than €200,000; or 
 (ii) any such defaults together have had or are likely to have a cost (including, for these purposes, a loss of profit) to the FrenchCo
Business of more than €500,000. 
 3.27 The Business Assets 
 For the purposes of this Section 3.27, a “material asset” shall mean an asset with a book value in the Financial Statements in
excess of €200,000 or any two or more assets, whether or not related, with an aggregate book value in the Financial Statements in excess of €500,000. 
 (a) Ownership. Smithfield France and the Subsidiaries own (both legally and beneficially) or have a legal entitlement to use all material assets currently used to carry on 

  

 23 

 
the FrenchCo Business (the “relevant assets”) and each such owned relevant asset is free from all Liens except for: 
 (i) title retention provisions in respect of goods and materials supplied to Smithfield France or such Subsidiaries in the ordinary course
business; and 
 (ii) Liens arising in the ordinary course of business by operation of Law. 
 Neither Smithfield France nor any of the Subsidiaries has (outside the ordinary and normal course of business) disposed of, or agreed to dispose of, any
material asset of the FrenchCo Business included in the Financial Statements. 
 (b) Possession. All material assets necessary and/or
currently used to carry on the FrenchCo Business as currently carried on are in the possession or under the control of Smithfield France or the Subsidiaries. 
 (c) Insurances. Neither Smithfield France nor any of the Subsidiaries has made any claim in excess of €5,000,000 under any policy of insurance which is still outstanding. The premia in respect of such
insurances have been paid and, to the Knowledge of Smithfield, all the insurance policies held by Smithfield France and the Subsidiaries are in full force and effect and are not void or voidable and nothing has been done by a beneficiary thereof
which has made or is likely to make any of them void or voidable. 
 (d) Product Liability. Other than in the ordinary course of
business, neither Smithfield France nor any of the Subsidiaries has manufactured or sold any products which were or are or will become defective in quality or which did not or do not comply in any material respect with any warranty or representation
expressly or implicitly made by or binding on Smithfield France or any of the Subsidiaries or which do not comply in all material respects with all applicable regulations, standards and requirements. There are no material outstanding claims against
Smithfield France or any of the Subsidiaries in respect of defects in quality of any of the products supplied by the FrenchCo Business and, to the Knowledge of Smithfield, there are no circumstances which are likely to give rise to any such claim,
where either: 
 (i) any such single claim has had or is likely to have a cost (including, for these purposes, a loss of
profit) to the FrenchCo Business of more than €200,000; or 
 (ii) any such claims together have had or are likely to
have a cost (including, for these purposes, a loss of profit) to the FrenchCo Business of more than €500,000. 
 Other than in the
ordinary course of business, there have been no product recalls in relation to any of the products of the FrenchCo Business in the three years prior to the date of this Agreement (and for purposes of Section 6.1, the
three years ending on the Closing Date) other than in relation to any facts, matters or circumstances generally affecting the industry in which the FrenchCo Business operates and, to the Knowledge of Smithfield, there are no circumstances which
are likely to give rise to any such product recalls. 
  

 24 

 3.28 Consents, Approvals and Compliance with Laws. Smithfield France and the Subsidiaries have
been granted and there are now in force all Permits necessary for the carrying on of the FrenchCo Business and there are no material breaches of any such Permits and, to the Knowledge of Smithfield, there are no circumstances which indicate that any
of the Permits will or are likely to be revoked or not renewed, in whole or in part, in the ordinary course of events. The FrenchCo Business has been conducted in all material respects in accordance with all material applicable Laws. 
 3.29 No Broker. Neither Smithfield France nor any Subsidiary has any liability to any broker, investment banker or other person for any
broker’s, finder’s or other similar fee or commission in connection with the transactions contemplated herein, based upon arrangements made by or on behalf of Smithfield or any Affiliate thereof. 
 3.30 Contractual Matters. For the purposes of this Section 3.30, a contract is material if it is either: (x) one of the top
ten customer contracts by annual revenue in each jurisdiction in which the FrenchCo Business operates provided it also represents five per cent. (5%) or more of the revenue of the FrenchCo Business in that jurisdiction; or (y) one of the
top ten supplier contracts by annual expenditure in each jurisdiction in which the FrenchCo Business operates provided it also represents five per cent. (5%) or more of the expenditure of the FrenchCo Business in that jurisdiction on inventory
or raw materials or is with a sole source supplier. 
 (a) Material Contracts. 
 (i) No material contract has been terminated, neither Smithfield France nor any of the Subsidiaries has received written notice from any
counterparty to the material contracts of its intention to terminate a material contract and, to the Knowledge of Smithfield, no such counterparties have threatened to terminate a material contract. 
 (ii) Subject to each counterparty to a material contract having the legal right and power to enter into and perform its obligations
thereunder and no counterparty thereto being in default thereunder, each material contract to which Smithfield France or any of the Subsidiaries is a party is in full force and effect in all material respects and is enforceable in all material
respects in accordance with its terms, except as such enforceability may be limited by: 
 (A) bankruptcy, insolvency,
reorganization, moratorium or similar Laws relating to or affecting generally the enforcement of creditors’ rights; 
 (B) the availability of equitable remedies (whether in a proceeding in equity or at law); and 
 (C) the inclusion in
any such material contract of any restraint of trade or similar protective covenant. 
 (b) Relevant Contracts. Neither Smithfield
France nor any of the Subsidiaries is a party to: 
 (i) any contract which is not in the ordinary course of business;

  

 25 

 (ii) any contract which is with Smithfield or any of its Affiliates and is not on an
arm’s length basis; 
 (iii) an agreement for the future purchase or sale of real property; 
 (iv) an agreement which is a profit (or loss) sharing agreement, or any partnership, joint venture or other similar contract providing for
the formation of any such relationship or involving an equity investment by Smithfield France or any of the Subsidiaries; 
 (v) an agreement containing any covenant or provision that materially restricts the operation of the FrenchCo Business as currently carried on or otherwise limits in any material respect the freedom of Smithfield France or any of the
Subsidiaries to compete other than with Smithfield France or any of the Subsidiaries in any line of business or with any Person or in any area or to purchase goods or services from any person; 
 (vi) an agreement relating to the acquisition or disposition of any business or material portion thereof (whether by merger, sale of
shares, sale of assets or otherwise), in each case involving total consideration of €500,000 or more; 
 (vii) an
agreement relating to any settlement of any material litigation or containing any provision providing for an “earn-out”, contingent purchase price or similar contingent payment obligation on the part of Smithfield France or any of the
Subsidiaries under which any such entity has continuing obligations to make aggregate payments in excess of €500,000; 
 (viii) an agreement containing any limitation on the ability of Smithfield France or any Subsidiary to declare or pay dividends; or 
 (ix) any other contract (other than on a purchase order basis in the ordinary course of business) that: 
 (A) involves the payment by any party to such contract of annual consideration in excess of €1,000,000 or, in the case of contracts for the purchase and sale of inventory or raw materials, annual consideration in
excess of €2,500,000; or 
 (B) which cannot be terminated by less than six months’ notice without payment of a
material penalty by Smithfield France or any Subsidiary, 
 other than any such contract or agreement which is also a material contract (each a
“relevant contract”). 
 (c) Purchase Orders. Neither Smithfield France nor any of the Subsidiaries has received notice from
any customer of the FrenchCo Business which does business with any 

  

 26 

 
of Smithfield France or the Subsidiaries on a purchase order basis that such customer intends to either (i) terminate its relationship with the FrenchCo
Business or (ii) modify the volume or monetary value of goods or services it purchases from the FrenchCo Business that would, in either case, reasonably be expected to, individually or in the aggregate, constitute a Material Adverse Effect.

 (d) Defaults. 
 (i) Neither Smithfield France nor any of the Subsidiaries is in material default under any material contract or relevant contract to which it is a party and, to the Knowledge of Smithfield, there are no facts, matters or circumstances which
are reasonably likely to give rise to such default. 
 (ii) To the Knowledge of Smithfield, no counterparty to a material
contract or relevant contract did not have the legal right and power to enter into and perform its obligations thereunder or is in material default thereunder. 
 (iii) To the Knowledge of Smithfield, no event has occurred, is subsisting nor is likely to arise which, with the giving of notice and/or
lapse of time, would constitute or result in a material default or the acceleration of any material obligation of Smithfield France or any of the Subsidiaries under any material contract or any relevant contract. 
 3.31 Litigation. Neither Smithfield France nor any of the Subsidiaries is involved as a party in any material litigation, arbitration or
administrative proceedings and no such proceedings have been threatened in writing by or against Smithfield France or any of the Subsidiaries. For this purpose: 
 (a) material means any single proceeding which (if successful) is likely to result in a cost, benefit or value to the FrenchCo Business of more than €500,000 or two or more proceedings, whether or not related,
which (if successful) are likely to result in an aggregate cost, benefit or value of €2,500,000; and 
 (b) any proceedings for
collection by Smithfield France or any of the Subsidiaries of debts arising in the ordinary course of business are excluded. 
 3.32
Investigations. To the Knowledge of Smithfield, neither Smithfield France nor any of the Subsidiaries is subject to any order, judgment, direction, investigation or other proceedings by any Governmental Authority which may prevent or delay
the fulfillment of any of the conditions set forth in Section 6.1. Neither Smithfield, nor Smithfield France or any of the Subsidiaries has received written notice of any material investigation by a Governmental Authority which is
current or pending concerning Smithfield France or any of the Subsidiaries. 
 3.33 Insolvency, etc. 
 (a) Insolvency. Neither Smithfield, nor Smithfield France or any of the Subsidiaries is insolvent or bankrupt under the Laws of its jurisdiction of
incorporation or unable to pay its debts as they fall due. 
  

 27 

 (b) Winding Up. Neither Smithfield, nor Smithfield France or any of the Subsidiaries has received
any written notice that an order has been made, petition presented or meeting convened for the winding up of Smithfield or Smithfield France or any of the Subsidiaries or for the appointment of any provisional liquidator. 
 (c) Administration and Receivership. Neither Smithfield, Smithfield France nor any Subsidiary has received any written notice concerning the
appointment of a receiver (including any administrative receiver or the equivalent to a receiver or administrative receiver in the relevant jurisdiction) in respect of the whole or any material part of the property, assets and/or undertaking of the
FrenchCo Business. 
 (d) Arrangements with Creditors etc. There are no proceedings in relation to any compromise or arrangement with
creditors or any winding up, bankruptcy or insolvency proceedings concerning Smithfield France or any of the Subsidiaries and no events have occurred which, under applicable Laws, would be reasonably likely to justify any such cases or proceedings.
None of Smithfield or any of its Affiliates nor Smithfield France or any Subsidiary has made any voluntary arrangement with any of its creditors in the two years prior to the date of this Agreement. 
 (e) Enforcement of Security. No steps have been taken to enforce any security over any assets comprising part of the FrenchCo Business of
Smithfield France or any of the Subsidiaries and, to the Knowledge of Smithfield, no event has occurred which would give rise to a right to enforce such security. 
 3.34 IP/IT 
 (a) Intellectual Property.  
 (i) Except as, individually or in the aggregate, would not constitute a Material Adverse Effect, there are no bona fide claims pending, or
to the Knowledge of Smithfield, threatened against Smithfield France or any Subsidiary (A) to the effect that the manufacture, sale, licensing or use of any product as now used, sold or licensed or proposed for use, sale or license by
Smithfield France or any Subsidiary, infringes on any copyright, patent, trademark, trade name, service mark or trade secret of any third party; (B) against the use by Smithfield France or any Subsidiary of any copyrights, patents, trademarks,
trade names, service marks, trade secrets, technology, know-how or computer software programs and applications used in the FrenchCo Business as currently conducted; (C) challenging the ownership, validity or effectiveness of any of the FrenchCo
Intellectual Property Rights material to Smithfield France and the Subsidiaries, taken as a whole; or (D) challenging the license or legally enforceable right to use of the Third-Party Intellectual Property Rights by Smithfield France or any
Subsidiary. Except as, individually or in the aggregate, would not constitute an Transaction Material Adverse Effect, Smithfield France and each Subsidiary owns, or is licensed to use (in each case free and clear of any Liens), all Intellectual
Property currently used in its business as presently conducted. 
  

 28 

 (ii) As used in this Agreement, the term (A) “Third-Party Intellectual
Property Rights” shall mean any rights to Intellectual Property owned by any third party, and (B) “FrenchCo Intellectual Property Rights” shall mean the Intellectual Property owned or used by Smithfield France or any
Subsidiary. 
 (b) Licenses In. Neither Smithfield France nor any of the Subsidiaries has received written notice alleging that
Smithfield France or any of the Subsidiaries is in breach constituting grounds for termination of any material License In. For the purpose of this Section 3.34(b), a material License In means a license that contains aggregate payment
obligations and/or rights to receive monies by any party of €50,000 or more. 
 (c) Infringement by Third Parties. To the
Knowledge of Smithfield, there has been no infringement by any third party of any of the FrenchCo Intellectual Property Rights, nor any third party breach of confidence, passing off or actionable act of unfair competition in relation to the FrenchCo
Business. 
 (d) Information Technology. 
 (i) The Target Company IT Systems are either owned by, or licensed or leased to, Smithfield France or any of the Subsidiaries and neither Smithfield France nor any Subsidiary has received written notice from a third
party alleging that it is in default under any of those licenses or leases that contain aggregate payment obligations and/or rights to receive monies by any party of €50,000 or more; and 
 (ii) there has been no material unplanned disruption to, or critical failure in, the operation or performance of the Target Company IT
Systems during the 24 months prior to the date of this Agreement. 
 3.35 Real Estate 
 (a) General. The Properties comprise all the land and buildings owned, leased, controlled, occupied or used by Smithfield or Smithfield
France or any of the Subsidiaries in relation to the FrenchCo Business. Smithfield France and the Subsidiaries are legally and beneficially entitled to the Properties. 
 (b) Possession and Occupation. Smithfield France or a Subsidiary is in possession and actual occupation of the whole of each of the Properties on an exclusive basis, none of which is vacant, and no other person
is in or actually or conditionally entitled to possession, occupation, use or control of any of the Properties. 
 (c) Title. There is
no material Third Party Right in or over or affecting any of the Properties other than Permitted Liens and there is no agreement or commitment to give any material Third Party Rights or create any of them. Smithfield France or a Subsidiary is
absolutely entitled to each of the Properties and the proceeds of transfer of them. All buildings, structures, improvements and fixtures located on, under, over or within the Properties, taken as a whole, are, in all material respects, sufficient
for the uses for which they are currently used. 
  

 29 

 (d) Adverse Interests 
 (i) None of the Properties is subject to any matter which materially adversely affects Smithfield France’s or the relevant
Subsidiary’s ability to continue to carry on its existing business from any Property substantially in the manner as at present. 
 (ii) Neither Smithfield nor Smithfield France or any Subsidiary has received notice of breach of any covenant, restriction, condition or obligation (whether statutory or otherwise) which is material and affects the Properties. 

(e) Outgoings. The Properties are not subject to the payment of any outgoings other than the usual rates and taxes and, in the case of
leaseholds, rent, insurance rent and service charge and all outgoings have been paid when due and neither Smithfield nor Smithfield France or any Subsidiary has received notice that any payments are disputed. 
 (f) Disputes. There are no material unresolved disputes, liabilities, claims, complaints or demands relating to or in respect of the Properties or
their use and, to the Knowledge of Smithfield, there is no matter which could lead to any such dispute, liability, claim, complaint or demand being issued or made. 
 (g) Planning Matters. The current use of each of the Properties is an authorized use under any legislation intended to control or regulate the construction, demolition, alteration or use of land or
buildings or to preserve or protect the national heritage and any orders, by-laws or regulations made or granted under any of them. 
 (h)
Property Liabilities. Neither Smithfield France nor any of the Subsidiaries has any actual or contingent obligation or liabilities in relation to any freehold or leasehold property other than under its existing title to the Properties.

 (i) Leasehold Properties. In relation to those Properties which are leasehold: 
 (i) the unexpired residue of the term granted by the lease under which each leasehold Property is held is vested in Smithfield France or a
Subsidiary; 
 (ii) in relation to each lease, Smithfield France or the relevant Subsidiary has not received notice of any
breach of covenants, restrictions, stipulations and other encumbrances and none of Smithfield, Smithfield France or any Subsidiary has received notice alleging a material breach of any covenants, conditions and agreements contained in the relevant
leases, whether on the part of the tenant or otherwise, 
 (iii) no rent is currently under review; 
 (iv) neither Smithfield France nor any Subsidiary has commuted any rent or other payment or paid any rent or other payment ahead of the
due date for payment; 
 (v) no surety has been released, expressly or by implication; and 
 (vi) no tenancy is being continued after the contractual expiry date whether pursuant to statute or otherwise. 
  

 30 

 3.36 Environmental 
 For the purpose of this Section 3.36, material shall be deemed to refer to facts, matters, circumstances, issues or events, which have resulted in, or are likely to result in, a single cost to the FrenchCo
Business of more than €500,000 or an aggregate cost to the FrenchCo Business of more than €2,500,000. 
 (a) Compliance with
Environmental Laws. To the Knowledge of Smithfield: 
 (i) within the period of three years prior to Closing, Smithfield
France and each of the Subsidiaries has complied in all material respects with Environmental Laws and there are no facts or circumstances which may lead to any material breach of any Environmental Laws relating to any activities or operations
carried on at any site owned or occupied by Smithfield France or any of the Subsidiaries in relation to the FrenchCo Business (each a “Site”); 
 (ii) there are no material claims or proceedings pending against Smithfield France or any of the Subsidiaries with respect to any breach
of or liability under Environmental Laws relating to the FrenchCo Business; 
 (iii) neither Smithfield, Smithfield France nor
any of the Subsidiaries has received any written statutory complaints or statutory notices alleging or specifying any material breach of or material liability under any Environmental Laws relating to the FrenchCo Business; 
 (iv) neither Smithfield France nor any of the Subsidiaries has expressly, or to the Knowledge of Smithfield, by operation of Law, assumed
or undertaken or agreed to assume or undertake responsibility for any liability of any other person arising under or relating to Environmental Laws and the FrenchCo Business or any Site or other property (including properties now or previously
owned, operated or leased by Smithfield France or any of the Subsidiaries), including any obligation for investigation, corrective or remedial action; 
 (v) no material work, repairs, remediation, construction or capital expenditure is either: 
 (A) currently required by Environmental Law; or 
 (B) based on current circumstances, likely to be required, under
any Environmental Law or in order to carry on lawfully the FrenchCo Business or to use any Site in accordance with applicable Environmental Laws. 
 (b) Hazardous Materials. To the Knowledge of Smithfield: 
 (i) there exists no substance that is listed,
defined or regulated as a harmful or hazardous substance under applicable Environmental Laws, including, without limitation, petroleum and its by-products and friable asbestos (collectively, “Hazardous Materials”), present in, on or
under the Sites; and 
  

 31 

 (ii) there are no facts, circumstances, events, or incidents relating to the Sites or any
properties previously owned or operated by Smithfield France or any of the Subsidiaries, including any release of Hazardous Materials, that are likely to: 
 (A) result in any material environmental liability to the Company, HoldCo or Smithfield France or any of the Subsidiaries after Closing; 
 (B) prevent or materially interfere with the operation of the FrenchCo Business in compliance with all applicable Environmental Laws by
Smithfield prior to Closing and by the Company or HoldCo from and after Closing, in each case as the FrenchCo Business is currently being conducted by Smithfield; or 
 (C) materially impact or affect the use of any of the Sites by Smithfield France or any of the Subsidiaries. 
 (c) Environmental Consents. All material Environmental Consents required in relation to the FrenchCo Business and the Properties have been
obtained and are being complied with in all material respects. 
 3.37 Employment 
 (a) Trade Unions. Neither Smithfield France nor any of the Subsidiaries is involved in any actual or threatened (in writing) industrial or trade
dispute with any trade union or other body. 
 (b) Notice on Termination. Unless applicable Laws do not permit such notice, there
exists no written or unwritten contract of employment with any employee that cannot be terminated by Smithfield France or the relevant Subsidiary on three months notice or less without giving rise to a claim for material damages or compensation
(other than a statutory redundancy payment or the equivalent in any relevant jurisdiction). No executive officer or plant manager has given or received notice terminating his contract of employment where such notice is due to expire on or after
Closing. No person employed in the FrenchCo Business has been dismissed (directly or indirectly) at any time in the three months preceding Closing for a reason related to the transfer under the Employment Regulations of the FrenchCo Business
from Smithfield to the Company at the Closing Date or the transactions contemplated by this Agreement. 
 (c) Records. Smithfield
France and each of the Subsidiaries has maintained records regarding the service of each employee (including details of the terms of employment, payments of statutory sick pay and maternity pay, disciplinary and grievance matters, health and safety
matters, income tax and social security contributions, wage and time records) which are current in all material respects. 
 (d)
Disclosure of Schemes etc. Except for State Social Security Plans in the relevant jurisdiction, there do not exist any retirement, superannuation, provident, death or disability schemes for directors or employees or any obligations to
or in respect of any present or past directors or employees with regard to redundancy, death, sickness or disability pursuant to which Smithfield France or any of the Subsidiaries is or may become liable to make any payments. 
  

 32 

 (e) Transaction Payments. No employee, officer, worker or consultant will be entitled by reason of
the transactions contemplated herein to any one-off payment or similar, or to terminate his service in the FrenchCo Business on other than his normal contractual terms and, to the Knowledge of Smithfield, no executive officer or plant manager who is
in receipt of remuneration in excess of €30,000 per annum will give notice terminating his employment as a result of the provisions of this Agreement. Since the date of the last Financial Statements, no agreement has been reached with any
officer, employee, trade union or other body representing employees that will or may on a future date result in a material increase in the level of remuneration or benefits payable to the employees. 
 (f) Previous Transfers. In the 12 months preceding the date of this Agreement, Smithfield France and the Subsidiaries have not failed to or
incurred any liability for failure to provide information or to consult with employees under any employment legislation. 
 (g) Variations
to Employment Contracts. Neither Smithfield France nor any of the Subsidiaries has made any offer of employment or engagement to work in the FrenchCo Business that has not yet been accepted, or that has been accepted but the employment or
engagement has not yet started (except to any of the employees) other than in the ordinary course of business. 
 (h) Proceedings. No
person working or who have worked for the FrenchCo Business under contracts of employment or contacts for services in the last 6 years have issued or threatened (in writing) to issue any court, employment tribunal or other proceedings against
Smithfield or any of its Affiliates or any officer or employee thereof (i) which actual or threatened proceedings (including any grievance or disciplinary proceedings and any appeal) remain unresolved at the date of this Agreement and
(ii) the liability in connection thereunder is not reserved for in the Financial Statements. 
 (i) Discrimination. There are no
terms or conditions under which any officer, worker or employee is employed by the FrenchCo Business, nor to the Knowledge of Smithfield has anything occurred or not occurred prior to Closing with respect to the FrenchCo Business, that may give rise
to any material claim for sex discrimination, race discrimination, sexual orientation discrimination or discrimination on the grounds of religion or belief, disability discrimination or equal pay under the Laws of any relevant jurisdiction to the
extent applicable whether by such officer, worker or employee or a prospective officer, worker or employee or otherwise. In the 12 months preceding this Agreement there has in relation to the FrenchCo Business been no recommendation made by an
employment tribunal nor any investigation by any body responsible for investigating or enforcing matters relating to any form of discrimination. 
 (j) Health and safety. In the 12 months preceding the date of this Agreement no improvement or prohibition notice has been served in connection with the conduct of the FrenchCo Business by any body responsible for health and safety
matters in respect of any employee. Neither Smithfield France nor any Subsidiary has incurred any liability in respect of any accident or injury which is not fully covered by insurance, subject to any retention or deductible relating thereto.

  

 33 

 3.38 Retirement Benefits 
 (a) Retirement Benefits/Seller Employee Benefit Plans. Neither Smithfield France nor any of the Subsidiaries provides or contributes to or is
liable to provide or contribute to the provision of Retirement Benefits for or in respect of any employee, other than Retirement Benefits that are customary in their industry. 
 (b) No Proposals. No proposal exists and no agreement has been made to establish any other arrangement for providing any Retirement Benefits or to
continue or increase any Retirement Benefits under any Target Employee Benefit Plan for or in respect of any employee, or to maintain any such Retirement Benefits or the level of any such Retirement Benefits generally for any period. 
 (c) Approval. Any Target Employee Benefit Plan that is capable of Approval is Approved on the date of this Agreement, and nothing has been done or
omitted to be done and there are no circumstances which would or might result in any Target Employee Benefit Plan ceasing to have Approval. 
 (d) Due Payment. All amounts which have fallen due to be paid to or in respect of the Target Employee Benefit Plans and/or State Social Security Plan and/or Industry-Wide Plan by Smithfield France or any of the Subsidiaries on or
before the date of this Agreement (including all insurance premiums, taxes and expenses) have been duly paid in full. 
 (e)
Compliance. Smithfield France and each of the Subsidiaries are currently in compliance in all material respects with their respective obligations under the Target Employee Benefit Plans, State Social Security Plans and Industry-Wide Plans,
and each Target Employee Benefit Plan is currently administered and operated in all material respects in accordance with all applicable Laws, guidelines and requirements (including the requirements of any tax, fiscal, social security, supervisory
and regulatory authorities) and the provisions of the relevant Target Employee Benefit Plan’s governing documentation. 
 (f)
Disputes and Investigations. Other than routine claims for benefits, there are no actions, suits, claims, disputes, complaints or proceedings outstanding, pending or threatened against any Target Employee Benefit Plan or, to the Knowledge of
Smithfield, against the trustees, managers, administrators, custodians or fiduciaries of any Target Employee Benefit Plan or against Smithfield France or any of the Subsidiaries in respect of any act, event, omission or other matter arising out of
or in connection with any Target Employee Benefit Plan and/or against Smithfield France or any of the Subsidiaries in respect of any State Social Security Plan or Industry-Wide Plan which are in each case material and, to the Knowledge of
Smithfield, there are no circumstances which could or might give rise to any such action, suit, claim, dispute, complaint or proceedings. 
 (g) Defined Contribution Seller Employee Plans. Neither Smithfield France nor any of the Subsidiaries has any unfunded liability (actual or contingent, present or future) to any person under or in connection with any funded defined
contribution benefits under any Target Employee Benefit Plan. 
  

 34 

 3.39 Tax Matters 
 (a) Each of Smithfield France and the Subsidiaries comply and have complied, for periods open for Tax audit or claims under the applicable statutes of limitation, with the Tax Regulations and, more particularly, and
without limitation, have filed on a timely basis all returns and reports in respect of Taxes for which they may be liable. Such Tax Returns have been true and complete in all material respects and do not contain any significant errors, inaccurate
statements or lapses. 
 (b) All Taxes required to be paid by each of Smithfield France and the Subsidiaries that were due and payable prior
to the date hereof have been timely paid or are being contested in good faith by appropriate proceedings. Each of Smithfield France and the Subsidiaries have made sufficient provisions in the Financial Statements for the payment of all Taxes which
may become due in relation to periods prior to December 31, 2005. 
 (c) For the fiscal years ended April 27,
2003, May 2, 2004 and May 1, 2005 and for all other full or partial fiscal years to and including the date hereof, no deficiencies for any Taxes have been assessed against any of Smithfield France and the Subsidiaries, and (other than
one ongoing audit with respect to the deductibility of certain insurance expenses) there has been no audit or investigation by any Tax authority with respect to any of Smithfield France and the Subsidiaries and, to the Knowledge of Smithfield, no
such audit or investigation is currently pending. 
 (d) None of Smithfield France and the Subsidiaries benefits from a specific Tax regime
subordinated to compliance with any undertaking whatsoever. 
 3.40 Value of Smithfield France. Smithfield is solely responsible for
the value given to the Contributed Shares for the purposes of the increase of the capital of the Company described in Section 2.1. The value given to the Contributed Shares in connection with the share capital increase is fair,
reasonable and is properly supported by the real value of the Contributed Shares, and any challenge of the value by any interested party would be unsuccessful. 
 ARTICLE IV 
 WARRANTIES OF EPOF AND OPPS 
 4.1 EPOF Warranties. EPOF hereby warrants to Smithfield, the Company and Holdco that: 
 (a) Organization. EPOF is a société à responsibilité limitée duly organized, validly existing and in good standing
under the laws of Luxembourg and has full power to enter into this Agreement and to perform its obligations hereunder. 
 (b) Authorization;
Execution and Delivery; Enforceability. The execution, delivery and performance by EPOF of this Agreement, and of all of the other documents and instruments required hereby from EPOF, are within the power of EPOF and have been duly 

  

 35 

 
authorized by all necessary action of EPOF. This Agreement has been duly executed and delivered by EPOF. This Agreement is, and the other documents and
instruments required hereby to which EPOF is a party will be, when executed and delivered by the parties thereto, the valid and binding obligations of EPOF, enforceable against EPOF in accordance with their respective terms, except as such
enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting generally the enforcement of creditors’ rights and (b) the availability of equitable remedies (whether in
a proceeding in equity or at law). 
 (c) No Violation or Conflict by EPOF. The execution, delivery and performance of this Agreement by
EPOF, and the consummation of the transactions contemplated herein, do not and will not (a) conflict with or violate any Law, judgment, order or decree binding on EPOF or (b) the Constituent Documents of EPOF. 
 (d) No Broker. Other than Tri-Artisan Partners LLC (“Tri-Artisan”), neither EPOF nor any of its Affiliates has any liability to any
broker, investment banker or other person for any broker’s, finder’s or other similar fee or commission in connection with the transactions contemplated herein, based upon arrangements made by or on behalf of EPOF and all fees and expenses
of Tri-Artisan shall be paid solely by EPOF. 
 4.2 OPPS Warranties. OPPS hereby warrants to Smithfield, the Company and Holdco that:

 (a) Organization. OPPS is a société à responsibilité limitée duly organized, validly existing and in
good standing under the laws of Luxembourg and has full power to enter into this Agreement and to perform its obligations hereunder. 
 (b)
Authorization; Execution and Delivery; Enforceability. The execution, delivery and performance by OPPS of this Agreement, and of all of the other documents and instruments required hereby from OPPS, are within the power of OPPS and have been duly
authorized by all necessary action of OPPS. This Agreement has been duly executed and delivered by OPPS. This Agreement is, and the other documents and instruments required hereby to which OPPS is a party will be, when executed and delivered by the
parties thereto, the valid and binding obligations of OPPS, enforceable against OPPS in accordance with their respective terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or affecting generally the enforcement of creditors’ rights and (b) the availability of equitable remedies (whether in a proceeding in equity or at law). 
 (c) No Violation or Conflict by OPPS. The execution, delivery and performance of this Agreement by OPPS, and the consummation of the transactions
contemplated herein, do not and will not (a) conflict with or violate any Law, judgment, order or decree binding on OPPS or (b) the Constituent Documents of OPPS. 
 (d) No Broker. Other than Tri-Artisan, neither OPPS nor any of its Affiliates has any liability to any broker, investment banker or other person for any
broker’s, finder’s or other similar fee or commission in connection with the transactions contemplated herein, based upon arrangements made by or on behalf of OPPS and all fees and expenses of Tri-Artisan shall be paid solely by OPPS.

  

 36 

 ARTICLE V 
 COVENANTS 
 5.1 Conduct of Business of Smithfield France and the Subsidiaries. Except as
otherwise expressly contemplated by this Agreement, during the period from the date of this Agreement to the Effective Time of Closing, Smithfield shall cause Smithfield France and the Subsidiaries to conduct their respective operations according to
their ordinary and usual course of business and consistent with past practice, and Smithfield shall cause Smithfield France and the Subsidiaries to use their commercially reasonable efforts to preserve intact their business organization, to keep
available the services of their officers and employees and to maintain existing relationships with licensors, licensees, suppliers, contractors, distributors, customers and others having material business relationships with them. 
 5.2 Access to Information. Between the date of this Agreement and the Effective Time of Closing, OCM and its authorized representatives will be
given reasonable access to (a) Smithfield France and the Subsidiaries and (b) the Books and Records of Smithfield France and the Subsidiaries. Smithfield shall also provide representatives of OCM with reasonable access upon request to
other personnel of Smithfield France and the Subsidiaries and to Smithfield France’s and the Subsidiaries’ premises; provided, however, that any such access shall be conducted in a mutually satisfactory manner that is
intended to preserve the confidentiality of the transactions contemplated herein prior to Closing. All such information shall be kept confidential in accordance with the Confidentiality and Exclusivity Agreement. 
 5.3 Commercially Reasonable Efforts. Subject to the terms and conditions herein provided, each of the parties hereto agrees to use its
commercially reasonable efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things necessary, proper and advisable under applicable Law that are necessary to consummate and make effective the transactions
contemplated by this Agreement and the Purchase Agreement, including, without limitation, obtaining debt financing for the Company. 
 5.4
Public Announcements. Smithfield and OCM shall consult with each other before the issuance of any press release or the making of any other public statement with respect to this Agreement or any of the transactions contemplated herein. Neither
Smithfield nor OCM shall issue any such press release or make any such public statement prior to such consultation or as to which Smithfield or OCM reasonably objects, except as may be required by Law or by obligations pursuant to any listing
agreement with any national securities exchange or inter-dealer quotation system. 
 5.5 Confidentiality and Exclusivity Agreement.
Notwithstanding the execution of this Agreement, the Confidentiality and Exclusivity Agreement shall remain in full force and effect through the earlier to occur of (a) the expiration of the Confidentiality and Exclusivity Agreement in
accordance with its terms or (b) the Effective Time of Closing, at which time the Confidentiality and Exclusivity Agreement shall terminate and be of no further force and effect. 
  

 37 

 5.6 Target Debt. Pursuant to (i) Section (b)(ii)(e) of that certain Letter Agreement, dated
August 4, 2006 (the “Letter Agreement”), among SLE, Parent, Tarvalón, EPOF, OPPS, Sara Lee/DE France S.A.S. (“Sara Lee/DE”), Smithfield and Sara Lee Charcuterie S.A. (“SLC”) and
(ii) Article II of that certain Claim Assignment Agreement, dated as of August 4, 2006 (the “Assignment Agreement”) by and between Sara Lee/DE, SLC, Tarvalón, EPOF, OPPS and Smithfield, each of EPOF, OPPS,
Smithfield and Tarvalón agreed to jointly and severally to perform (or procure the performance of) all further acts and things, and execute and deliver (or procure the execution and delivery of) all such further documents, at EPOF’s,
OPPS’s, Smithfield’s and Tarvalón’s cost, as may be required by law or as may be necessary or reasonably desirable to implement the transactions contemplated by the Letter Agreement and the Assignment Agreement. Each of EPOF,
OPPS, Smithfield and Tarvalón agrees to indemnify the other parties, their affiliates and their respective members, directors, officers, employees and agents against, and agrees to hold each of them harmless from, any damage, loss, liability,
cost, charge, fee, penalty, tax or expense (including reasonable expenses of investigation and reasonable attorneys’ fees and expenses) incurred or suffered by them arising out of, or relating to, the breach by such party of
(x) Section(b)(ii)(e) of the Letter Agreement and/or (y) Article II of the Assignment Agreement. 
 ARTICLE VI 
 CONDITIONS PRECEDENT TO CLOSING 
 6.1
Conditions Precedent to Obligations of OCM. Each and every obligation of OCM to be performed at the Closing shall be subject to the satisfaction, or waiver by OCM, at or prior to the Closing, of the following express conditions precedent:

 (a) the warranties of Smithfield contained in Article III hereof shall be true and correct as of the date hereof and as of the Closing Date
as though made on the Closing Date (without regard to any Material Adverse Effect or materiality qualifiers contained therein), except (i) to the extent such warranties expressly speak as of an earlier date, in which case as of such earlier
date and (ii) for those failures to be true and correct that would not, individually or in the aggregate have, or be reasonably likely to have, a Transaction Material Adverse Effect; 
 (b) Smithfield and/or the Company, as the case may be, shall, in all material respects, have performed all obligations and complied with all covenants
necessary to be performed or complied with by them or it on or before the Effective Time of Closing; 
 (c) since the date of this Agreement,
there shall have occurred no changes, events or circumstances which would, individually or in the aggregate, constitute a Transaction Material Adverse Effect, it being understood that Smithfield shall not waive the condition contained in Clause
3.1(b) of the Purchase Agreement without OCM’s prior written consent; 
 (d) OCM shall have received a certificate of the President or
any Vice President of Smithfield, in a form reasonably satisfactory to counsel for OCM, certifying fulfillment of the matters referred to in paragraphs (a), (b) and (c) of this Section 6.1; 
  

 38 

 (e) no investigation, suit, action or other proceeding shall be pending before any Governmental Authority
that seeks restraint, prohibition, damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby, or that otherwise questions the validity or legality of this Agreement or the consummation of
the transactions contemplated hereby; and 
 (f) the transactions contemplated by the Purchase Agreement shall be consummated simultaneously
with the Closing. 
 6.2 Conditions Precedent to Obligations of Smithfield. Each and every obligation of Smithfield to be performed at
the Closing shall be subject to the satisfaction, or waiver by Smithfield, at or prior to the Closing, of the following express conditions precedent: 
 (a) the warranties of each of EPOF and OPPS contained in Article IV hereof shall be true and correct in all respects (as to warranties qualified or limited by the word “material” or phrases of like
import) and in all material respects (as to warranties not so limited or qualified) when made and at and as of the Closing Date with the same force and effect as if those warranties had been made at and as of such time except to the extent such
warranties speak as of a specified earlier date, then as of such earlier date; 
 (b) each of EPOF and OPPS shall, in all material respects,
have performed all obligations and complied with all covenants necessary to be performed or complied with by them before the Effective Time of the Closing; 
 (c) Smithfield shall have received a certificate of a Director of each of EPOF and OPPS, in a form reasonably satisfactory to counsel for Smithfield, certifying fulfillment of the matters referred to in paragraphs
(a) and (b) of this Section 6.2; 
 (d) the transactions contemplated by the Purchase Agreement shall be consummated
simultaneously with the Closing; and 
 (e) no investigation, suit, action or other proceeding shall be pending before any Governmental
Authority that seeks restraint, prohibition, damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby, or that otherwise questions the validity or legality of this Agreement or the
consummation of the transactions contemplated hereby. 
 ARTICLE VII 
 INDEMNITIES AND ADDITIONAL COVENANTS 
 7.1 Smithfield’s Indemnity

 (a) Each of Smithfield and Parent hereby indemnifies and holds (x) EPOF, OPPS and their respective Affiliates (other than the Company)
(collectively, the “OCM Indemnified Parties”) and (y) the Company harmless from and against, and agrees to defend promptly the OCM Indemnified Parties and the Company from and reimburse the OCM Indemnified Parties and the
Company for, any and all losses, damages, costs, expenses, liabilities, obligations and claims of any kind, including, without limitation, reasonable 

  

 39 

 
attorneys’ fees and other legal costs and expenses but excluding, except as expressly set forth herein, any claims for punitive, consequential, special
or incidental damages (hereinafter referred to collectively as “Losses”) (including, for the purposes of indemnification of the Company, claims for lost profits, and diminution in value of Smithfield France and the Subsidiaries in
reference to the value of Smithfield France and the Subsidiaries determined for the purposes of Article II of this Agreement), that (A) in the case of any OCM Indemnified Party, that any OCM Indemnified Party and (B) in the case of the
Company, the Company may at any time suffer or incur, or become subject to, as a result of or in connection with (i) any breach or inaccuracy of any of the warranties made by Smithfield in or pursuant to this Agreement without regard to any
Material Adverse Effect or materiality qualifier or monetary threshold therein and (ii) any breach or failure of Smithfield to carry out, perform, satisfy and discharge any of its covenants, agreements, undertakings, liabilities or obligations
under this Agreement or under any of the documents and instruments delivered by Smithfield pursuant to this Agreement; provided, that (1) the OCM Indemnified Parties shall have the right to indemnification pursuant to clause
(i) above only for those warranties set forth in Sections 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.8, 3.9, 3.29 and 3.40 of this Agreement and (2) in no event shall Smithfield
and Parent be liable to pay duplicate Losses to each of (x) the OCM Indemnified Parties and (y) the Company in respect of any single claim for Losses; provided, further, that the Company shall have the first priority to make
any claim for indemnification. Neither Smithfield nor Parent shall be required to indemnify, hold harmless, defend or reimburse the OCM Indemnified Parties or the Company pursuant to Section 7.1(a)(i) hereof in respect of the warranties
made by Smithfield unless such right to indemnification is asserted by an OCM Indemnified Party or the Company by notice to Smithfield within the following time periods: 
 (A) with respect to the warranties set forth in Sections 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.8, 3.9, 3.29 and 3.40 hereof, without time limitation; and 

(B) with respect to all other warranties set forth in Article III hereof, within three (3) years after the Closing Date. 
 Notwithstanding the foregoing, neither Smithfield nor Parent shall be required to indemnify, hold harmless, defend or reimburse any OCM Indemnified Party
or the Company pursuant to this Section 7.1(a) unless and until the amount of all Losses for which indemnification is sought by either party with respect thereto shall exceed, in the aggregate, €3,000,000, at which point Smithfield
and Parent will be obligated to indemnify the OCM Indemnified Parties or the Company, as the case may be, for all additional Losses in excess thereof; provided, however, that Smithfield’s and Parent’s obligation to indemnify,
hold harmless, defend or reimburse the OCM Indemnified Parties and the Company for any Losses incurred in connection with this Section 7.1(a) shall in no event exceed €24,000,000 in the aggregate in respect thereof. 
 (b) The amounts for which Smithfield and Parent shall be liable under Section 7.1(a) of this Agreement shall be net of any insurance proceeds
received by any OCM Indemnified Party or the Company in connection with the facts giving rise to the right of indemnification. 
  

 40 

 (c) In the event a claim against any OCM Indemnified Party or the Company arises that is covered by the
indemnity provisions of Section 7.1(a) of this Agreement, notice shall be given promptly by such OCM Indemnified Party or the Company to Smithfield and Parent; provided, however, that the failure to give notice as required
by this Section 7.1(c) shall not result in a waiver of any right to indemnification hereunder except to the extent that Smithfield’s and Parent’s ability to defend against the event with respect to which indemnification is
sought is actually prejudiced by the failure of the OCM Indemnified Party or the Company to give such notice promptly. Provided that Smithfield and Parent admit in writing to the party seeking indemnification that such claim is covered by the
indemnity provisions of Section 7.1(a) hereof, Smithfield and Parent shall have the right to contest and defend by all appropriate legal proceedings such claim and to control all settlements (unless the party seeking indemnification
agrees to assume the cost of settlement and to forgo such indemnity) and to select lead counsel to defend any and all such claims at the sole cost and expense of Smithfield and Parent; provided, however, that neither Smithfield nor
Parent may effect any settlement that could result in any cost, expense or liability to, or have any adverse effect upon, any OCM Indemnified Party or the Company unless such party consents in writing to such settlement and Smithfield and Parent
agree to indemnify such party therefor. The party seeking indemnification may select counsel to participate in any defense, in which event such counsel shall be at the sole cost and expense of such party. In connection with any such claim, action or
proceeding, the parties shall cooperate with each other and provide each other with access to relevant books and records in their possession. 
 7.2 OCM’s Indemnity 
 (a) OCM hereby indemnifies and holds (x) Smithfield and its Affiliates (other than the
Company) (the “Smithfield Indemnified Parties”) and (y) the Company harmless from and against, and agrees to defend promptly the Smithfield Indemnified Parties and the Company from and reimburse the Smithfield Indemnified
Parties and the Company for, any and all Losses (including, for the purposes of indemnification of the Company, claims for lost profits and diminution in value) that (A) in the case of the Smithfield Indemnified Parties, the Smithfield
Indemnified Parties or (B) in the case of the Company, the Company may at any time suffer or incur, or become subject to, as a result of or in connection with (i) any breach or inaccuracy of any of the warranties made by OCM in or pursuant
to this Agreement without regard to any materiality qualifier therein and (ii) any breach or failure by OCM to carry out, perform, satisfy and discharge any of its covenants, agreements, undertakings, liabilities or obligations under this
Agreement or under any of the documents and instruments delivered by OCM pursuant to this Agreement; provided, that in no event shall OCM be liable to pay duplicate Losses to each of (x) the Smithfield Indemnified Parties and
(y) the Company in respect of any single claim for Losses; provided, further, that the Company shall have the first priority to make any claim for indemnification. Notwithstanding the foregoing, OCM shall not be required to
indemnify, hold harmless, defend or reimburse Smithfield pursuant to this Section 7.2(a) unless and until the amount of all Losses for which indemnification is sought with respect thereto shall exceed, in the aggregate, €3,000,000,
at which point OCM will be obligated to indemnify the Smithfield Indemnified Parties for all additional Losses with respect thereto; provided, however, that OCM’s obligation to indemnify, hold harmless, defend or reimburse the
Smithfield Indemnified Parties and the Company for any Losses incurred in connection with this Section 7.2(a) shall in no event exceed €24,000,000 in the aggregate in respect thereof. 
  

 41 

 (b) The amounts for which OCM shall be liable under Section 7.2(a) of this Agreement shall be
net of any insurance proceeds received by a Smithfield Indemnified Party or the Company in connection with the facts giving rise to the right of indemnification. 
 (c) In the event a claim against any Smithfield Indemnified Party or the Company arises that is covered by the indemnity provisions of Section 7.2(a) of this Agreement, notice shall be given promptly by
such Smithfield Indemnified Party or the Company to OCM; provided, however, that the failure to give notice as required by this Section 7.2(c) shall not result in a waiver of any right to indemnification hereunder except to
the extent that OCM’s ability to defend against the event with respect to which indemnification is sought is actually prejudiced by the failure of the Smithfield Indemnified Party or the Company to give such notice promptly. Provided that OCM
admits in writing to the party seeking indemnification that such claim is covered by the indemnity provisions of Section 7.2(a) hereof, OCM shall have the right to contest and defend by all appropriate legal proceedings such claim and to
control all settlements (unless the party seeking indemnification agrees to assume the cost of settlement and to forgo such indemnity) and to select lead counsel to defend any and all such claims at the sole cost and expense of OCM; provided,
however, that OCM may not effect any settlement that could result in any cost, expense or liability to, or have any adverse effect upon, any Smithfield Indemnified Party or the Company unless such party consents in writing to such settlement
and OCM agrees to indemnify such party therefor. The party seeking indemnification may select counsel to participate in any defense, in which event such counsel shall be at the sole cost and expense of such party. In connection with any such claim,
action or proceeding, the parties shall cooperate with each other and provide each other with access to relevant books and records in their possession. 
 7.3 Additional OCM Indemnity. Oaktree hereby indemnifies and holds Parent harmless from and against with respect to, and agrees to reimburse Parent for, one-half (1/2) of any and all Losses that Parent may
at any time actually suffer or actually incur pursuant to Clause 36 of the Purchase Agreement or that certain side letter, dated June 26, 2006, among Parent, the Company and Sara Lee Corporation relating to termination fee matters (the
“Termination Fee Letter”); provided, that notwithstanding anything to the contrary in this Agreement, Oaktree will have no direct performance obligations under the Purchase Agreement other than the obligations to pay the amounts
described in this Section 7.3. For the avoidance of doubt, no third party shall have the right to make any claim against Oaktree by operation of this Section 7.3. 
 7.4 Company Indemnity. Each of the Company and HoldCo hereby indemnifies and holds their respective directors harmless from and against, and
agrees to reimburse the directors for, any and all Losses that any such Person may at any time suffer or incur, or become subject to, as a result of any claim made by any third party regarding the valuation of Smithfield France and the Subsidiaries
for the purposes of Article II hereof. The directors of each of the Company and HoldCo shall be third party beneficiaries for the purposes of this Section 7.4. 
 7.5 Further Assurances. In case at any time after the Closing Date any further action is necessary or desirable to carry out the purposes of this
Agreement, each of the parties to this Agreement will take, without additional consideration, such further action (including the execution and delivery of such further instruments and documents) as any other party reasonably may request. 

 

 42 

 ARTICLE VIII 
 TERMINATION; WAIVER 
 8.1 Termination. This Agreement may be terminated and the transactions
contemplated herein may be abandoned at any time prior to the Effective Time of Closing: 
 (a) by mutual written consent of Smithfield and
OCM; 
 (b) by Smithfield at any time following Smithfield becoming aware that either EPOF or OPPS has breached any warranty or covenant
contained in this Agreement in any material respect, if Smithfield has notified OCM of the breach and the breach has continued without cure for a period of 20 days after the notice of breach; 
 (c) by OCM at any time following OCM becoming aware that Smithfield has breached any warranty or covenant contained in this Agreement in any material
respect, if OCM has notified Smithfield of the breach and the breach has continued without cure for a period of 20 days after the notice of breach; 
 (d) by Smithfield or OCM, if the Purchase Agreement has been terminated in accordance with its terms; 
 (e) by Smithfield or OCM,
if any court of competent jurisdiction or other Governmental Authority shall have issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated herein and such order,
decree, ruling or other action shall have become final and nonappealable; or 
 (f) by OCM if, immediately prior to Closing, OCM, acting
reasonably and in good faith, determines that a Material Adverse Change (as defined in the Purchase Agreement) has occurred and is continuing and OCM (i) provides notice of such determination immediately thereafter to Smithfield and
(ii) describes in such notice with specificity the basis for OCM’s determination. 
 8.2 Effect of Termination. If this
Agreement is terminated pursuant to Section 8.1 hereof, this Agreement shall forthwith become void and have no effect, without any liability on the part of any party or its directors, officers or shareholders; provided,
however, that nothing contained in this Section 8.2 shall (a) relieve any party from liability for any breach of this Agreement or from its obligations under the proviso to Section 9.2 hereof or (b) relieve
Oaktree of its obligations pursuant to Section 7.3 hereof; provided, further, however, that any termination of this Agreement shall not preclude Smithfield from consummating the transactions contemplated by the
Purchase Agreement. 
 8.3 Waiver; Extension. At any time prior to the Effective Time, each of EPOF and Smithfield may
(a) extend the time for the performance of any of the obligations or other acts of the other party, (b) waive any inaccuracies in the warranties of the other party contained in this Agreement or in any document delivered pursuant to this
Agreement or waive compliance with 

  

 43 

 
any of the covenants, agreements or conditions of the other party contained in this Agreement. Any agreement on the part of a party to any such extension or
waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of those
rights. 
 ARTICLE IX 
 MISCELLANEOUS 
 9.1 Entire Agreement; Amendment. This Agreement and the documents referred to herein (including the
Confidentiality and Exclusivity Agreement) and to be delivered pursuant hereto constitute the entire agreement between the parties pertaining to the subject matter hereof, and supersede all prior and contemporaneous agreements, understandings,
negotiations and discussions of the parties, whether oral or written, and there are no warranties or other agreements between the parties in connection with the subject matter hereof, except as specifically set forth herein or therein. No amendment,
supplement, modification, waiver or termination of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provision of this Agreement, whether or not similar, nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. 
 9.2 Expenses. The Company shall promptly reimburse each party following the Closing for all out-of-pocket fees and expenses incurred by such party that are associated with the transactions contemplated hereby
and by the Purchase Agreement, including, without limitation, all actual, out-of-pocket due diligence and related costs and expenses, fees and expenses of legal and accounting advisors, consultants and financing fees and expenses (and, in the case
of Smithfield, investment banking advisory fees) (“Expenses”); provided, that in the event of the termination of this Agreement pursuant to Article VIII, Smithfield and Oaktree shall each bear 50% of the aggregate Expenses of
the parties. 
 9.3 Governing Law; Consent to Jurisdiction. This Agreement shall be construed and interpreted according to the laws of
the State of New York, without regard to the conflicts of law rules thereof; provided, however, that Sections 5-1401 and 5-1402 of the New York General Obligations Law shall apply to this Agreement. Each of the parties hereto, in
respect of itself and its properties, agrees to be subject to (and hereby irrevocably submits to) the nonexclusive jurisdiction of any United States federal court sitting in the Borough of Manhattan, New York City, New York in respect of any suit,
action or proceeding arising out of or relating to this Agreement or the transactions contemplated herein, and irrevocably agrees that all claims in respect of any such suit, action or proceeding may be heard and determined in any such court. Each
of the parties hereto irrevocably waives, to the fullest extent it may effectively do so under applicable Law, any objection to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such
suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Either party hereto may make service on the other party by sending or delivering a copy of the process to the party to be served at the address and in
the manner provided for the giving of notices in Section 9.5 hereof. Nothing in this Section 9.3, however, shall affect the right of any party to bring any action or proceeding arising out of or relating to this Agreement in any
other court within the United States or to serve legal process in any other manner permitted by Law or in equity. 
  

 44 

 9.4 Assignment. This Agreement and each party’s respective rights hereunder may not be assigned by
operation of Law or otherwise at any time except as expressly set forth herein without the prior written consent of the other party. 
 9.5
Notices. All communications, notices and disclosures required or permitted by this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by messenger or by overnight delivery service, or when mailed
by registered or certified United States mail, postage prepaid, return receipt requested, or when received via telecopy, telex or other electronic transmission, in all cases addressed to the person for whom it is intended at his address set forth
below or to such other address as a party shall have designated by notice in writing to the other party in the manner provided by this Section 9.5: 
  

			
	If to Smithfield:	  	SFDS Global Holdings BV
		
		  	c/o Smithfield Foods, Inc.
		  	499 Park Avenue, 6th Floor
		  	New York, New York 10022
		  	Attention:     Richard J. M. Poulson, Esq.
		  	   Executive Vice President, General Counsel and

		  	   Senior Advisor to the Chairman

		  	Facsimile:      (212) 758-8421
		
	With a copy to:	  	Smithfield Foods, Inc.
		  	200 Commerce Street
		  	Smithfield, VA 23430
		  	Attention:     Michael H. Cole, Esq.
		  	   Vice President, Secretary and

		  	   Deputy General Counsel

		  	Facsimile:     (757) 365-3025
		
	And to:	  	Hunton & Williams LLP
		  	Riverfront Plaza, East Tower
		  	951 East Byrd Street
		  	Richmond, VA 23219
		  	Attention:     Gary E. Thompson
		  	Facsimile:     (804) 788-8218
		
	If to EPOF:	  	OCM Luxembourg EPOF Meats Holdings SARL
		  	67 Boulevard Grand-Duchesse Charlotte
		  	L-1331 Luxembourg
		  	Telecopy:     00 352 264 582 94
		  	Attention:     Justin Bickle
		  	   Szymon Dec

  

 45 

			
	With a copy to:	  	Skadden, Arps, Slate, Meagher & Flom LLP
		  	Four Times Square
		  	New York, New York 10036
		  	Telecopy:     212-735-2000
		  	Attention:     Eileen T. Nugent
		
	If to OPPS:	  	OCM Luxembourg OPPS Meats Holdings SARL
		  	67 Boulevard Grand-Duchesse Charlotte
		  	L-1331 Luxembourg
		  	Telecopy:     00 352 264 582 94
		  	Attention:     Pedro Urquidi
		  	   Chris Boehringer

		
	With a copy to:	  	Skadden, Arps, Slate, Meagher & Flom LLP
		  	Four Times Square
		  	New York, New York 10036
		  	Telecopy:     212-735-2000
		  	Attention:     Eileen T. Nugent
		
	If to Oaktree:	  	OCM Luxembourg EPOF SARL
		  	67 Boulevard Grand-Duchesse Charlotte
		  	L-1331 Luxembourg
		  	Telecopy:     00 352 264 582 94
		  	Attention:     Justin Bickle
		  	   Szymon Dec

		
	With a copy to:	  	Skadden, Arps, Slate, Meagher & Flom LLP
		  	Four Times Square
		  	New York, New York 10036
		  	Telecopy:     212-735-2000
		  	Attention:     Eileen T. Nugent

 9.6 Counterparts; Headings. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but such counterparts shall together constitute but one and the same Agreement. The Table of Contents and Article and Section headings in this Agreement are inserted for convenience of reference only and shall not
constitute a part hereof. Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of an executed counterpart to this Agreement. 
  

 46 

 9.7 Specific Performance. The parties hereto agree that irreparable damage would occur in the
event any of the provisions of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy at Law or equity. 
 9.8 Interpretation. Unless the context requires otherwise, all words used in this Agreement in the singular number shall extend to and include the
plural, all words in the plural number shall extend to and include the singular and all words in any gender shall extend to and include all genders. All references to contracts, agreements, leases or other understandings or arrangements shall refer
to oral as well as written matters. The specificity of any warranty contained herein shall not be deemed to limit the generality of any other warranty contained herein. All references to the “date of this Agreement” or the “date
hereof” shall be to June 29, 2006 unless specifically noted. 
 9.9 Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner adverse to either party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner, to the end that the transactions contemplated hereby are fulfilled to the extent possible. 
 9.10 No Reliance. Except as set forth in Sections 7.1, 7.2 and 7.4 hereof with respect to the OCM Indemnified Parties, the
Smithfield Indemnified Parties and the directors of the Company, as applicable, no third party is entitled to rely on any of the warranties and agreements contained in this Agreement. Except as set forth in Sections 7.1, 7.2 and
7.4 hereof with respect to OCM Indemnified Parties, Smithfield Indemnified Parties and the directors of the Company, as applicable, no party to this Agreement assumes any liability to any third party because of any reliance on the warranties
and agreements of the parties hereto contained in this Agreement. 
 9.11 Survival; Exhibits. The warranties of each party hereto
shall be deemed to be material and to have been relied upon by the other parties, notwithstanding any investigation heretofore or hereafter made by the other parties, and shall survive the Closing to the extent and for such time as is necessary to
enable the parties to enforce their respective rights to indemnification under this Agreement. Nothing in the Exhibits hereto shall be deemed adequate to disclose an exception to a warranty made herein, unless such Exhibit identifies the exception
with reasonable particularity. 
 9.12 Oaktree. Except as expressly set forth in Section 7.3 and Article IX hereof,
Oaktree shall have no obligations under this Agreement or the Original Contribution Agreement. 
 [Remainder of Page Intentionally Left Blank]

  

 47 

 IN WITNESS WHEREOF, the parties have caused this Contribution Agreement to be duly executed as of
the day and year first above written. 
  

					
	TARVALÓN, S.L.
		
		 	 /s/ Michael H. Cole

	Name:	 	  

	Its:	 	  

	
	BACARRETO, S.L.
		
		 	 /s/ Michael H. Cole

	Name:	 	  

	Its:	 	  

	
	SFDS GLOBAL HOLDINGS BV
			
		 	By:	 	Trust International Management
		 		 	(T.I.M.) B.V.
		 	Its:	 	Managing Director
		
		 	 /s/ M.F. Selhorst

		 	Name:	 	 M.F. Selhorst

		 	Its:	 	 Managing Director

		
		 	 /s/ S.R. Bark

		 	Name:	 	 S.R. Bark

		 	Its:	 	 Attorney-in-Fact

	
	OCM LUXEMBOURG EPOF MEATS HOLDINGS SARL
	
	 /s/ Justin Bickle

	Director
	
	 /s/ Jean Fell

	Director
	
	  

	Director
	
	OCM LUXEMBOURG OPPS MEATS HOLDINGS SARL
	
	 /s/ Jean Fell

	Director
	
	 /s/ Christopher Boehringer

	Director
	
	 /s/ Pedro Urquidi

	Director

			
	For the purposes of Articles VII and IX only:
	
	SMITHFIELD FOODS, INC.
		
		 	 /s/ Michael H. Cole

	Name:	 	  

	Its:	 	  

	
	For the purposes of Section 7.3 and Article IX only:
	
	OCM LUXEMBOURG EPOF SARL
	
	 /s/ Justin Bickle

	Director
	
	 /s/ Jean Fell

	Director
	
	  

	Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]