Document:

Subsidiary Guaranty Agreement

 Exhibit 10.47 
  
 SUBSIDIARY GUARANTY 
  
 Dated as of December 20, 2002 
  
 From 
  
 THE GUARANTORS NAMED HEREIN 
  
 and 
  
 THE ADDITIONAL GUARANTORS
REFERRED TO HEREIN 
  
 as Guarantors 
  
 in favor of 
  
 THE SECURED PARTIES REFERRED TO IN 
 THE CREDIT AGREEMENT REFERRED TO HEREIN 
  

 T A B L E  O F  C O
N T E N T S 
  

	 Section

	 	 	  	Page

			
	 Section 1.
	 	 Guaranty; Limitation of Liability
	  	1
			
	 Section 2.
	 	 Guaranty Absolute
	  	2
			
	 Section 3.
	 	 Waivers and Acknowledgments
	  	3
			
	 Section 4.
	 	 Subrogation
	  	4
			
	 Section 5.
	 	 Payments Free and Clear of Taxes, Etc.
	  	5
			
	 Section 6.
	 	 Representations and Warranties
	  	6
			
	 Section 7.
	 	 Covenants
	  	6
			
	 Section 8.
	 	 Amendments, Guaranty Supplements, Etc.
	  	7
			
	 Section 9.
	 	 Notices and Other Communications; Facsimile Copies.
	  	7
			
	 Section 10.
	 	 No Waiver; Remedies
	  	8
			
	 Section 11.
	 	 Right of Set-off
	  	8
			
	 Section 12.
	 	 Indemnification
	  	9
			
	 Section 13.
	 	 Subordination
	  	9
			
	 Section 14.
	 	 Continuing Guaranty; Assignments under the Credit Agreement
	  	10
			
	 Section 15.
	 	 Execution in Counterparts
	  	11
			
	 Section 16.
	 	 Effective Date. This Guaranty shall become effective, without further action or notification on the party of any Guarantor or
any Secured Party, on and as of the Time of Merger.
	  	11
			
	 Section 17.
	 	 Governing Law; Jurisdiction; Waiver of Jury Trial, Etc.
	  	11
			
	 Section 18.
	 	 Waiver of Jury Trial
	  	11
		
	 Exhibit A - Guaranty Supplement
	  	 

  
  

	 	 	i	 	 

 SUBSIDIARY GUARANTY 
  
 SUBSIDIARY GUARANTY dated as of December 20, 2002 made by the Persons listed on the signature pages hereof under the caption
“Guarantor” and the Additional Guarantors (as defined in Section 8(b)) (such Persons so listed and the Additional Guarantors being, collectively, the “Guarantors” and, individually, each a
“Guarantor”) in favor of the Secured Parties (as defined in the Credit Agreement referred to below). 
  
 PRELIMINARY STATEMENT. SKF Foods Inc., a Delaware corporation (the “Borrower”), is party to a Credit Agreement dated as of
December 20, 2002 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; the capitalized terms defined therein and not otherwise defined herein being used herein as
therein defined) with certain Lenders party thereto, Bank of America, N.A. (“Bank of America”) as Administrative Agent, Collateral Agent, Swingline Lender and Issuing Lender, the other Lenders party thereto, JPMorgan Chase
Bank, as Syndication Agent, Harris Trust and Savings Bank, Morgan Stanley & Co. Incorporated and UBS Warburg LLC, as Co-Documentation Agents and Banc of America Securities LLC and J.P. Morgan Securities Inc., as Joint Book Managers. Each
Guarantor will derive substantial direct and indirect benefits from the transactions contemplated by the Credit Agreement. It is a condition precedent to the making of Loans and the issuance of Letters of Credit by the Lenders under the Credit
Agreement and the entry by any Lender or Affiliate thereof into any Permitted Secured Swap Contract with any Loan Party or Subsidiary thereof (each such Swap Contract being a “Secured Swap Contract”) from time to time after
the occurrence of the Merger that each Guarantor shall have executed and delivered this Guaranty. 
  
 NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make Loans and to issue Letters of Credit under the Credit
Agreement and the Secured Parties entering into Secured Swap Contracts from time to time, each Guarantor, jointly and severally with each other Guarantor, hereby agrees as follows: 
  
 Section 1. Guaranty; Limitation of Liability. (a) Each Guarantor hereby absolutely, unconditionally and irrevocably
guarantees the punctual payment when due, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all Obligations of each other Loan Party or other Guarantor now or hereafter existing under
or in respect of the Loan Documents (including, without limitation, any extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or contingent, and whether for
principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such Obligations being the “Guaranteed Obligations”), and agrees to pay any and all reasonable expenses (including,
without limitation, fees and expenses of counsel) incurred by the Administrative Agent or any other Secured Party in enforcing any rights under this Guaranty or any other Loan Document to the extent such Secured Party is entitled to reimbursement of
any such expenses by any Loan Party or Guarantor pursuant to the terms of the relevant Loan Document. Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute part of the
Guaranteed Obligations and would be owed by any other Loan Party or other Guarantor to any Secured Party under or in respect of the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a 
  

 bankruptcy, reorganization or similar proceeding involving such other Loan Party or other Guarantor. 
  
 (b) Each Guarantor, and by its acceptance of this Guaranty, the
Administrative Agent and each other Secured Party, hereby confirms that it is the intention of all such Persons that this Guaranty and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of the
Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the Obligations of each Guarantor hereunder. To effectuate the
foregoing intention, the Administrative Agent, the other Secured Parties and the Guarantors hereby irrevocably agree that the Obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the
Obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance. 
  
 (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to any Secured Party under
this Guaranty, the Heinz Guaranty or the DMFC Guaranty, to the extent applicable, or any other guaranty, such Guarantor will contribute, to the maximum extent permitted by law, such amounts to each other Guarantor, Heinz or DMFC, as the case may be,
and each other guarantor so as to maximize the aggregate amount paid to the Secured Parties under or in respect of the Loan Documents. 
  
 Section 2. Guaranty Absolute. Each Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of the
Loan Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Secured Party with respect thereto. The Obligations of each Guarantor under or in respect of
this Guaranty are independent of the Guaranteed Obligations or any other Obligations of any other Loan Party or Guarantor under or in respect of the Loan Documents, and a separate action or actions may be brought and prosecuted against each
Guarantor to enforce this Guaranty, irrespective of whether any action is brought against the Borrower or any other Loan Party or Guarantor or whether the Borrower or any other Loan Party or Guarantor is joined in any such action or actions. The
liability of each Guarantor under this Guaranty shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of
the following: 
  
 (a) any lack of validity or
enforceability of any Loan Document or any agreement or instrument relating thereto; 
  
 (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any other
Obligations of any other Loan Party or Guarantor under or in respect of the Loan Documents, or any other amendment or waiver of or any consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed
Obligations resulting from the extension of additional credit to any Loan Party or any of its Subsidiaries or otherwise; 
  

	 	 	2	 	 

 (c) any taking, exchange, release or non-perfection of any Collateral or any other
collateral, or any taking, release or amendment or waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations; 
  

(d) any manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations,
or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations or any other Obligations of any Loan Party or Guarantor under the Loan Documents or any other assets of any Loan Party
or any of its Subsidiaries; 
  
 (e) any change,
restructuring or termination of the corporate structure or existence of any Loan Party or any of its Subsidiaries; 
  
 (f) any failure of any Secured Party to disclose to any Loan Party or other Guarantor any information relating to the business, condition
(financial or otherwise), operations, performance, properties or prospects of any other Loan Party or Guarantor now or hereafter known to such Secured Party (each Guarantor waiving any duty on the part of the Secured Parties to disclose such
information); 
  
 (g) the failure of any other
Person to execute or deliver this Guaranty, any Guaranty Supplement (as hereinafter defined) or any other guaranty or agreement or the release or reduction of liability of any Guarantor or other guarantor or surety with respect to the Guaranteed
Obligations; or 
  
 (h) any other circumstance
(including, without limitation, any statute of limitations) or any existence of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, any Loan Party, any Guarantor or any
other guarantor or surety. 
  
 This Guaranty shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by any Secured Party or any other Person upon the insolvency, bankruptcy or reorganization of the Borrower or
any other Loan Party or Guarantor or otherwise, all as though such payment had not been made. 
  
 Section 3. Waivers and Acknowledgments. (a) Each Guarantor hereby unconditionally and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for performance, notice of
nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that any Secured Party protect, secure, perfect or insure any Lien or any
property subject thereto or exhaust any right or take any action against any Loan Party, any Guarantor or any other Person or any Collateral. 
  
 (b) Each Guarantor hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is continuing in
nature and applies to all Guaranteed Obligations, whether existing now or in the future. 
  

	 	 	3	 	 

 (c) Each Guarantor hereby unconditionally and irrevocably waives (i) any defense arising by reason of any
claim or defense based upon an election of remedies by any Secured Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such
Guarantor or other rights of such Guarantor to proceed against any of the other Loan Parties, any other Guarantor, any other guarantor or any other Person or any Collateral and (ii) any defense based on any right of set-off or counterclaim against
or in respect of the Obligations of such Guarantor hereunder. 
  
 (d) Each Guarantor acknowledges that the Collateral Agent may, without notice to or demand upon such Guarantor and without affecting the liability of such Guarantor under this Guaranty, foreclose under any mortgage by nonjudicial sale, and
each Guarantor hereby waives any defense to the recovery by the Collateral Agent and the other Secured Parties against such Guarantor of any deficiency after such nonjudicial sale and any defense or benefits that may be afforded by applicable law.

  
 (e) Each Guarantor hereby unconditionally and irrevocably
waives any duty on the part of any Secured Party to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Loan Party or any of
its Subsidiaries now or hereafter known by such Secured Party. 
  
 (f) Each Guarantor acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by the Loan Documents and the Secured Swap Contracts and that the waivers set forth in Section
2 and this Section 3 are knowingly made in contemplation of such benefits. 
  
 Section 4. Subrogation. Each Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against the Borrower, any other Loan Party, any other
Guarantor or any other insider guarantor that arise from the existence, payment, performance or enforcement of such Guarantor’s Obligations under or in respect of this Guaranty or any other Loan Document, including, without limitation, any
right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of any Secured Party against the Borrower, any other Loan Party, any other Guarantor or any other insider guarantor
or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Borrower, any other Loan Party, any other Guarantor or any
other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall have been paid in full in cash, all Letters of Credit and all Secured Swap Contracts shall have expired or been terminated and the Commitments shall have expired or been terminated. If any amount shall be paid to
any Guarantor in violation of the immediately preceding sentence at any time prior to the latest of (a) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty, (b) the latest date of expiration,
cancellation or termination of all Letters of Credit and all Secured Swap Contracts (or the cash collateralization thereof in a manner satisfactory to the Secured Parties) and (c) the termination of all Commitments, such amount shall be received and
held in trust for the benefit 
  

	 	 	4	 	 

 of the Secured Parties, shall be segregated from other property and funds of such Guarantor and shall forthwith be paid
or delivered to the Administrative Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or
unmatured, in accordance with the terms of the Loan Documents, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. If (i) all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall have been paid in full in cash, (ii) all of the Commitments have been terminated and (iii) all Letters of Credit and all Secured Swap Contracts shall have expired or been cancelled or terminated (or have been cash
collateralized in a manner satisfactory to the Secured Parties), the Secured Parties will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment made by such Guarantor pursuant to this Guaranty. 
  
 Section 5. Payments Free and Clear of Taxes, Etc. (a) Unless otherwise
required by law, any and all payments made by any Guarantor under or in respect of this Guaranty or any other Loan Document shall be made, in accordance with Section 4.1 of the Credit Agreement, free and clear of and without deduction for any
and all present or future Taxes. If any Guarantor shall be required by any law to deduct any Taxes from or in respect of any sum payable under this Guaranty or any other Loan Document to any Secured Party, (i) the sum payable by such Guarantor shall
be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 5), such Secured Party receives an amount equal to the sum it would have received had no
such deductions been made, (ii) such Guarantor shall make all such deductions, (iii) such Guarantor shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law and (iv) within 30 days
after the date of such payment, such Guarantor shall furnish to the Administrative Agent (which shall forward the same to the relevant Secured Party) the original or a certified copy of a receipt evidencing payment thereof or other evidence of
payment satisfactory to the Administrative Agent. 
  
 (b) In
addition, each Guarantor agrees to pay any and all present or future Other Taxes that arise from any payment made by or on behalf of such Guarantor under or in respect of this Guaranty or any other Loan Document or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, this Guaranty and the other Loan Documents. 
  
 (c) If any Guarantor shall be required to deduct or pay any Taxes or Other Taxes from or in respect of any sum payable under any Loan Document to any
Secured Party, such Guarantor, as the case may be, shall also pay to the relevant Secured Party, at the time interest is paid, such additional amount that such Secured Party specifies is necessary to preserve the after-tax yield (after factoring in
all taxes, including taxes imposed on or measured by net income) that such Secured Party would have received if such Taxes or Other Taxes had not been imposed. 
  

(d) Each Guarantor will indemnify each Secured Party for (i) the full amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or
asserted by any 
  

	 	 	5	 	 

 jurisdiction on amounts payable under this Section 5) paid by such Secured Party, (ii) amounts payable under
Section 5(c), and (iii) any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. Payment under this Section 5(d) shall be made within 30 days from the date such Secured Party makes a demand therefor. 
  
 (e) If any Guarantor is required to pay additional amounts to any Secured Party pursuant to this Section 5, then such
Secured Party shall use reasonable efforts (consistent with internal policy and legal and regulatory restrictions) to change the jurisdiction of its Lending Office so as to reduce or eliminate any such additional payment by the Guarantor which may
thereafter accrue, if such change in the good faith judgment of such Secured Party is not otherwise materially disadvantageous to such Secured Party. 
  
 (f) If any Guarantor pays any additional amounts in respect of any Taxes or Other Taxes pursuant to this Section 5 which results in any Secured
Party actually receiving from the taxing authority imposing such Taxes or Other Taxes a refund of such Taxes or Other Taxes, such Secured Party shall within 90 days of receipt of such refund pay to the Guarantor an amount equal to the amount of such
refund actually received by such Secured Party and reasonably attributable to Taxes or Other Taxes that have been paid by the Guarantor under this Section 5 with respect to such refund, net of all out of pocket expenses and without any
interest; provided that each Secured Party shall only be required to pay to the Guarantor such amounts as such Secured Party, as the case may be, in its good faith judgment, determines are attributable to Taxes or Other Taxes paid by the
Guarantor. 
  
 (g) Without prejudice to the survival of any other
agreement of the Guarantor hereunder or under any other Loan Documents, the agreements and obligations of the Guarantor contained in this Section 5 shall survive the payment in full of the Guaranteed Obligations. 
  
 Section 6. Representations and Warranties. Each Guarantor hereby makes
each representation and warranty made in the Loan Documents by the Borrower with respect to such Guarantor and each Guarantor hereby further represents and warrants as follows: 
  
 (a) There are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or
waived. 
  
 (b) Such Guarantor has, independently
and without reliance upon any Secured Party and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Guaranty and each other Loan Document to which it is or is to be a
party, and such Guarantor has established adequate means of obtaining from each other Loan Party and Guarantor on a continuing basis information pertaining to, and is now and on a continuing basis will be completely familiar with, the business,
condition (financial or otherwise), operations, performance, properties and prospects of such other Loan Party and Guarantor. 
  
 Section 7. Covenants. Each Guarantor covenants and agrees that, so long as any part of the Guaranteed Obligations shall remain unpaid, any Letter
of Credit shall be outstanding, 
  

	 	 	6	 	 

 any Lender shall have any Commitment or any Secured Swap Contracts shall be in effect, such Guarantor will perform and
observe, and cause each of its Subsidiaries to perform and observe, all of the terms, covenants and agreements set forth in the Loan Documents on its or their part to be performed or observed or that the Borrower has agreed to cause such Guarantor
or such Subsidiaries to perform or observe. 
  
 Section 8.
Amendments, Guaranty Supplements, Etc. (a) No amendment or waiver of any provision of this Guaranty and no consent to any departure by any Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by
the Required Lenders and each of the Guarantors and acknowledged by the Administrative Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and signed by all of the Lenders, (a) reduce or limit the obligations of any Guarantor hereunder, release any Guarantor hereunder or otherwise limit any Guarantor’s
liability with respect to the Obligations owing to the Secured Parties under or in respect of the Loan Documents, (b) postpone any date fixed for payment hereunder or (c) change the number of Secured Parties or the percentage of (x) the Commitments,
(y) the aggregate unpaid principal amount of the Loans or (z) the aggregate Effective Amount of outstanding Letters of Credit that, in each case, shall be required for the Secured Parties or any of them to take any action hereunder. 
  
 (b) Upon the execution and delivery by any Person of a guaranty supplement in
substantially the form of Exhibit A hereto (each, a “Guaranty Supplement”), (i) such Person shall be referred to as an “Additional Guarantor” and shall become and be a Guarantor hereunder, and each
reference in this Guaranty to a “Guarantor” shall also mean and be a reference to such Additional Guarantor, and each reference in any other Loan Document to a “Subsidiary Guarantor” shall also mean
and be a reference to such Additional Guarantor, and (ii) each reference herein to “this Guaranty”, “hereunder”, “hereof” or words of like import referring to this Guaranty, and
each reference in any other Loan Document to the “Subsidiary Guaranty”, “thereunder”, “thereof” or words of like import referring to this Guaranty, shall mean and be a reference
to this Guaranty as supplemented by such Guaranty Supplement. 
  
 Section 9. Notices and Other Communications; Facsimile Copies. 
  
 (a) General. Unless otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in writing (including by facsimile transmission). All such written notices shall be
mailed, faxed or delivered to the applicable address, facsimile number or (subject to subsection (c) below) electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made
to the applicable telephone number, as follows: 
  
 (i) if to any Guarantor, addressed to it in care of the Borrower at the Borrower’s address, facsimile number, electronic mail address or telephone number specified on Schedule 11.2 of the Credit Agreement or to such other
address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties; 
  

	 	 	7	 	 

 (ii) if to any Agent or any Lender, at its address, facsimile number, electronic mail
address or telephone number specified on Schedule 11.2 of the Credit Agreement or to such other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties;

  
 (iii) if to any Lender or Affiliate thereof
party to any Secured Swap Contract, to the address, facsimile number, electronic mail address or telephone number as shall be specified in the Secured Swap Contract to which it is a party, and 
  
 (iv) if to any other party, at such other address as shall
be designated by such party in a written notice to each other party. 
  
 All such
notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party
hereto; (B) if delivered by mail, four Business Days after deposit in the mails (certified or registered), postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail
(which form of delivery is subject to the provisions of subsection (c) below), when delivered. In no event shall a voicemail message be effective as a notice, communication or confirmation hereunder. 
  
 (b) Effectiveness of Facsimile Documents and Signatures. Loan
Documents may be transmitted and/or signed by facsimile. The effectiveness of such document and signatures shall, subject to applicable law, have the same force and effect as manually-signed original and shall be binding on each Guarantor. The
Administrative Agent may also require that any such document and signatures be confirmed by a manually-signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any
facsimile document or signature. 
  
 (c) Electronic
Communications. Notices and other communications to the Secured Parties hereunder may be delivered or furnished by electronic communications (including e-mail and Internet or intranet websites) pursuant to procedures approved by the
Administrative Agent. The Administrative Agent or the Guarantor may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications. 
  
 Section 10. No Waiver; Remedies. No failure on the part of any Secured Party to exercise, and no delay in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 
  
 Section 11. Right of Set-off. In addition to any right or remedy of the Secured Parties provided by law, if an Event of Default exists, or the
Loans have been accelerated, each Secured Party is authorized at any time and from time to time, without prior notice to any 
  

	 	 	8	 	 

 Guarantor, any such notice being waived by such Guarantor to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final) at any time held by, and other indebtedness at any time owing by, such Secured Party or any Affiliate of such Secured Party to or for the credit or the account of such
Guarantor against any and all Obligations then due and owing to such Secured Party and each Affiliate of such Secured Party and each Secured Party and Affiliate thereof is hereby irrevocably authorized to permit such set-off and application. Each
Secured Party agrees promptly to notify the relevant Guarantor and the Administrative Agent after any such set-off and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such
set-off and application.. 
  
 Section 12. Indemnification.
(a) Without limitation on any other Obligations of any Guarantor or remedies of the Secured Parties under this Guaranty, and whether or not the transactions contemplated by the Credit Agreement are consummated, each Guarantor shall, to the fullest
extent permitted by law, indemnify and hold harmless each Indemnified Person from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, charges, expenses and disbursements
(including Attorney Costs) of any kind or nature whatsoever which may be imposed on, incurred by or asserted against any Indemnified Person in connection with or as a result of any failure of any Guaranteed Obligations to be the legal, valid and
binding obligations of any Loan Party or Guarantor enforceable against such Loan Party or Guarantor in accordance with their terms. 
  
 (b) Each Guarantor hereby also agrees that none of the Indemnified Persons shall have any liability (whether direct or indirect, in contract, tort or
otherwise) to any of the Guarantors or any of their respective Affiliates or any of their respective officers, directors, employees, agents and advisors, and each Guarantor hereby agrees not to assert any claim against any Indemnified Party on any
theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the Facilities, the actual or proposed use of the proceeds of the Loans or the Letters of Credit, the Transaction Documents or any
of the transactions contemplated by the Transaction Documents. 
  
 (c) Without prejudice to the survival of any of the other agreements of any Guarantor under this Guaranty or any of the other Loan Documents, the agreements and obligations of each Guarantor contained in Section 1(a) (with respect to
enforcement expenses), the last sentence of Section 2, Section 5 and this Section 12 shall survive the payment in full of the Guaranteed Obligations and all of the other amounts payable under this Guaranty. 
  
 Section 13. Subordination. Each Guarantor hereby subordinates any and
all debts, liabilities and other Obligations owed to such Guarantor by each other Loan Party and Guarantor (the “Subordinated Obligations”) to the Guaranteed Obligations to the extent and in the manner hereinafter set forth
in this Section 13: 
  
 (a) Prohibited
Payments, Etc. Except during the continuance of any Event of Default (including the commencement and continuation of any Insolvency Proceeding relating to any other Loan Party or Guarantor) and so long as the Administrative Agent has delivered
written notice to the Guarantor of the Required Lenders’ intent to exercise their rights under this Section 13, each Guarantor may receive regularly scheduled 
  

	 	 	9	 	 

 
payments from any other Loan Party or other Guarantor on account of the Subordinated Obligations. After the occurrence and during the continuance of any
Event of Default (including the commencement and continuation of any Insolvency Proceeding relating to any other Loan Party or Guarantor), and so long as the Administrative Agent has delivered written notice to such Guarantor of the Required
Lenders’ intent to exercise their rights under this Section 13, no Guarantor shall demand, accept or take any action to collect any payment on account of the Subordinated Obligations. 
  
 (b) Prior Payment of Guaranteed Obligations. In any
Insolvency Proceeding relating to any other Loan Party or Guarantor, each Guarantor agrees that the Secured Parties shall be entitled to receive payment in full in cash of all Guaranteed Obligations (including all interest and expenses accruing
after the commencement of an Insolvency Proceeding, whether or not constituting an allowed claim in such proceeding (“Post Petition Interest”)) before such Guarantor receives payment of any Subordinated Obligations.

  
 (c) Turn-Over. After the occurrence
and during the continuance of any Default (including the commencement and continuation of any Insolvency Proceeding relating to any other Loan Party or Guarantor), each Guarantor shall, if the Administrative Agent so requests in writing, collect,
enforce and receive payments on account of the Subordinated Obligations as trustee for the Secured Parties and deliver such payments to the Administrative Agent on account of the Guaranteed Obligations (including all Post Petition Interest),
together with any necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Guaranty. 
  
 (d) Administrative Agent Authorization. After the
occurrence and during the continuance of any Event of Default (including the commencement and continuation of any Insolvency Proceeding relating to any other Loan Party or Guarantor) and so long as written notice has been delivered to the relevant
Guarantor of the Required Lenders’ intent to exercise their rights under this Section 13, the Administrative Agent is authorized and empowered (but without any obligation to so do), in its discretion, (i) in the name of each Guarantor,
to collect and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Guaranteed Obligations (including any and all Post Petition Interest), and (ii) to require each Guarantor (A) to
collect and enforce, and to submit claims in respect of, Subordinated Obligations and (B) to pay any amounts received on such obligations to the Administrative Agent for application to the Guaranteed Obligations (including any and all Post Petition
Interest). 
  
 Section 14. Continuing Guaranty; Assignments
under the Credit Agreement. This Guaranty is a continuing guaranty and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty,
(ii) the latest date of expiration, cancellation or termination of all Letters of Credit and all Secured Swap Contracts (or the cash collateralization thereof in a manner satisfactory to the Secured Parties), and (iii) the termination of all
Commitments, (b) be binding upon the Guarantor, its successors and assigns and (c) inure to the benefit of and be enforceable 
  

	 	 	10	 	 

 
by the Secured Parties and their successors, transferees and assigns. Without limiting the generality of clause (c) of the immediately preceding sentence,
any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under the Credit Agreement (including, without limitation, all or any portion of its Commitments, the Loans owing to it and the Note or Notes held by
it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party herein or otherwise, in each case as and to the extent provided in Section 11.7 of the Credit
Agreement. No Guarantor shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Secured Parties. 
  
 Section 15. Execution in Counterparts. This Guaranty and each amendment, waiver and consent with respect hereto may be executed in any number of
counterparts and by different parties thereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 Section 16. Effective Date. This Guaranty shall become effective,
without further action or notification on the party of any Guarantor or any Secured Party, on and as of the Time of Merger. 
  
 Section 17. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. (a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAW OF THE STATE OF NEW YORK; PROVIDED THAT THE SECURED PARTIES SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
  
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF
THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS. EACH GUARANTOR
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT
OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. EACH GUARANTOR WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW. 
  
 Section 18. Waiver of Jury Trial EACH GUARANTOR WAIVES ITS RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS GUARANTY, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY
TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT 
  

	 	 	11	 	 

 TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. EACH GUARANTOR AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED
BY A COURT WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, EACH GUARANTOR FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR
IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENT, RENEWAL, SUPPLEMENT OR MODIFICATION TO THIS GUARANTY AND THE
OTHER LOAN DOCUMENTS. 
  

	 	 	12	 	 

 IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written. 
  

	GUARANTORS
	
	MIKE MAC IHC, INC.
		
	 By
	 	  

	 	 	 Title:

	
	STAR-KIST SAMOA, INC.
		
	 By
	 	  

	 	 	 Title:

	
	DLM FOODS L.L.C.
		
	 By
	 	  

	 	 	 Title:

	
	MARINE TRADING PACIFIC, INC.
		
	 By
	 	  

	 	 	 Title:

	
	STAR-KIST MAURITIUS, INC.
		
	 By
	 	  

	 	 	 Title:Agreement of Termination

 Exhibit 10.1 
  
 July 21, 2003 
  
 Charles K. Crovitz 
  
 Dear Chuck: 
  
 This letter
confirms and constitutes the entire agreement between you and The Gap, Inc. and all of its subsidiaries and affiliates (hereafter collectively referred to as the “Company”) concerning the termination of your employment with the Company
(the “Agreement”). 
  
 1.    TERMINATION OF EMPLOYMENT: 
  
 a.    Resignation:    You hereby resign your employment with the Company, including as an officer and/or
director of the Company and its direct and indirect subsidiaries, effective July 25, 2003 (the “Termination Date”). On or before the Termination Date, you will be paid all your accrued and unpaid salary and accrued and unused paid time
off. 
  
 b.    Benefits:    Your current benefit plan coverages will end on July 31, 2003, including health, dental, disability and life insurance coverage. Under federal COBRA laws, you may receive
medical and dental benefits (at your own expense) for up to 18 months after the Termination Date. Your participation in ESPP, GapShare and Executive Deferred Compensation will end on the Termination Date. Any cash balance you have in ESPP will be
refunded to you without interest approximately four to six weeks after the end of the month of the Termination Date. A GapShare distribution form will be sent to you within 30 days of the Termination Date. Four to six weeks after the Termination
Date, you will begin to receive distributions in the Executive Deferred Compensation Plan per your election. 
  
 c.    Stock:    All unvested stock options will be canceled on the Termination Date. All outstanding vested
options must be exercised within three months after the Termination Date. 
  
 d.    Company Property:    On or before the Termination Date, you agree to return to Gap Inc. all company property, including all keys, building passes, equipment,
documents, materials or property of any description, or any reproduction of such materials, containing or pertaining to any of the Company’s Confidential Information, as defined in section 3a. 
  
 e.    Expenses:    You must
reconcile all outstanding expenses by the Termination Date. 

 Charles K. Crovitz 
 July 21,
2003 
  Page
 2
 
  
 2.    THE COMPANY’S PROMISES TO YOU: 
  
 In consideration for the promises made by you in this Agreement, the Company agrees to the following: 
  
 a.    Income
Continuation:    The Company will continue to make bi-weekly payments to you based on your current base salary ($550,000.00) and will subsidize your COBRA medical premium (collectively “Income Continuation”), for up
to one year (“Income Continuation Period”), subject to the following conditions: (1) prior to receiving any Income Continuation you must execute this Agreement; (2) during the Income Continuation Period, you agree to abide by all terms of
this Agreement; (3) if you accept new employment or establish any other professional relationship (e.g. a consulting relationship) for which you are compensated during the Income Continuation period or if you breach any of your obligations to the
Company, Income Continuation payments will cease effective on your acceptance or breach as described herein; and (4) you agree to inform the Company within five days of your acceptance of new employment or other compensated relationship. However, if
you wish to enter into new employment or accept other compensation, and the compensation (including salary, bonus, and fees) you will receive is less than what you would otherwise receive as Income Continuation, the Company, based on your request in
advance, may consider and at its sole option elect to continue to pay to you the difference between what you would otherwise receive in Income Continuation payments and the new compensation amount for the remainder of the Income Continuation Period.

  
 b.    Bonus:    You will be eligible to receive the Executive MICAP bonus for the first six months of the current fiscal year (ending August 2, 2003). The occurrence of, amount and time for
payment of such bonus, if any, will be consistent with the terms and conditions of MICAP and determined on the basis of the Company’s financial results. Payment for the bonus will be in September 2003. 
  
 c.    Financial Planning
Assistance:    The Company will reimburse you for 50% of the expense for your financial counseling currently provided by the AYCO Company through July 31, 2004, provided you have made payment in full directly to AYCO.

  
 d.    Tax
Withholding:    You acknowledge and agree that all payments made pursuant to this Agreement shall be subject to withholding of all applicable taxes. 
  
 3.    YOUR PROMISES TO THE COMPANY:

  
 In consideration for the benefits described in section 2
above, you agree to the following: 
  
 a.    Confidentiality and Trade Secrets:    You agree and acknowledge that because of your position and employment with the Company, you have acquired non-public information related to the
Company and its operations (“Confidential Information”). You acknowledge that Confidential Information constitutes valuable, special and unique assets of the Company, access and knowledge of which were and are essential to the performance
of your duties during your employment. Except as required to perform such duties, and except as required by law or process of law (in which case you will provide at least ten business days advance written notice 

 Charles K. Crovitz 
 July 21,
2003 
  Page
 3
 
  
 
and reasonable opportunity for the Company to object to any such disclosure), you agree not to directly or indirectly (1) make use in any way of any
Confidential Information or (2) divulge, distribute or otherwise convey any Confidential Information to any person or entity in any form. You also acknowledge and agree that this obligation will survive and continue beyond the Termination Date.

  
 Confidential Information includes trade secrets and other
confidential or proprietary business, financial, technical, strategic, marketing, legal, personnel or other information, whether or not your work product, in written, graphic, oral or other tangible or intangible forms, including, but not limited to
strategic plans, specifications, records, data, computer programs, drawings, diagrams, models, vendor or customer names or lists, business or marketing plans, studies, analyses, projections and reports, communications by or to attorneys (including
attorney client privileged communications), memoranda and other materials prepared by attorneys or under their direction (including attorney work product), and software systems and processes. Any information that is not readily or properly available
to the public shall be considered to be a trade secret and confidential and proprietary. 
  
 b.    Release:    You hereby release and discharge the Company, its current and former officers, directors, employees, representatives, attorneys, subsidiaries, insurers,
predecessors, affiliates, successors, and agents from any and all claims, liabilities or obligations of every kind and nature, whether now known or unknown, suspected or unsuspected, which you ever had, or now have, including but not limited to all
claims arising out of or in connection with your employment or termination of employment, work or services for the Company. This release includes all federal and state statutory claims, federal and state common law claims (including those for
contract and tort), and claims under any federal or state anti-discrimination statute or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964 (as amended), the Age Discrimination in Employment Act, 42 U.S.C. sections
1981 and 1983, the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, the California Constitution, the California Fair Employment and Housing Act, the California Unfair Competition Act (California Business and
Professions Code section 17200 et seq.), the California Unruh Act, and the California Labor Code. This release does not extend to any claim for indemnification against liability for acts or omissions committed in the course and scope of your
employment with the Company to which you otherwise may be entitled pursuant to Delaware General Corporation Law, the Company’s certificate of incorporation, the Company’s bylaws, or the Company’s directors’ and officers’
liability insurance coverage. 
  
 You also understand that Section
1542 of the Civil Code of the State of California provides as follows: 
  
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected the settlement with the
debtor;” 
  
 and in signing this Agreement, you hereby waive and relinquish
all rights you may have under Section 1542 of the Civil Code of the State of California, or any similar statute or law. 

 Charles K. Crovitz 
 July 21,
2003 
  Page
 4
 
  
 c.    Non-Solicit:    Until July 25, 2004, you will not directly or indirectly solicit or otherwise induce employees of the Company to become employed by you or any business with which you are
affiliated; nor will you directly or indirectly solicit or induce employees of the Company to leave the Company. 
  
 d.    Good Will and Nondisparagement:    You agree to act in a manner that protects the positive image of
the Company and its employees, not to speak badly of the Company or any of its employees, and not to act in any manner that is harmful to the Company’s business interests. 
  
 e.    Consulting Services and Cooperation:    You agree to provide consulting
services and to be reasonably available to the Company as requested to respond to requests for information for an average of 20 hours per month during the Income Continuation Period. 
  
 f.    Execution of Documents:    Immediately upon request by the
Company’s General Counsel, you will execute all documents required by the Company reasonably related to your employment, transition or termination of employment by or affiliation with the Company, its affiliates, and direct and indirect
subsidiaries, including all directorships. 
  
 g.    Abide by Company Policies:    You agree to abide by and comply with all applicable Gap Inc. policies, including, but not limited to, those contained in the Code of Business Conduct.

  
 4.    MISCELLANEOUS 
  
 The intent of this Agreement is to mutually, amicably and finally resolve
and compromise all issues and claims related to your employment and termination. The execution of this Agreement shall not in any way be considered an admission of liability on the part of the Company. 
  
 If there is any dispute over the terms, enforcement or obligations under this
Agreement, the prevailing party shall be entitled to recover from the other party reasonable attorneys fees and/or costs incurred to enforce this Agreement. 
  
 This Agreement constitutes our entire agreement regarding your termination and supersedes any previous agreements or understandings, if any, between us.
This is a legally binding Agreement. You are advised to consult with an attorney prior to signing the Agreement. You have 21 days to consider this Agreement (after which it will be withdrawn), but you may sign it sooner. If after carefully reviewing
this Agreement, it correctly sets forth our agreement, please acknowledge this by signing both original Agreements where indicated below. One Agreement is for your files. Please return the other to me. After signing this Agreement you may revoke it
within seven days. In order to do so, you must notify me in writing within seven days after the date you sign this Agreement that you intend to revoke it or you will be forever bound by the terms of this Agreement. This Agreement will not be
effective until the seven-day period has elapsed. 

 Charles K. Crovitz 
 July 21,
2003 
  Page
 5
 
  
 If you have any
questions, please contact me. 
  

	Sincerely,	 	 	 	 Agreed

			
	/S/    KATIE ROSSON        	 	 	 	/S/    CHARLES K. CROVITZ        
	
	 	 	 	

	 Katie Rosson
 Senior Vice
President
 Human Resources
	 	 	 	Charles K. Crovitz
				
	 	 	 	 	 	 	July 21, 2003
	 	 	 	 	 	 	

	 	 	 	 	 	 	Date

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