Document:

Stockholders Agreement

STOCKHOLDER’S AGREEMENT 
 
DATED AS OF 
 
May 7, 2014 
 
AMONG 
 
PAPA MURPHY’S HOLDINGS, INC.
 
AND 
 
LEP PAPA MURPHY’S HOLDINGS, LLC

THIS STOCKHOLDER’S AGREEMENT (this “Agreement”)
dated as of May 7, 2014 among:
(i)    Papa Murphy’s Holdings Inc., a Delaware corporation (the “Company”); and
(ii)    LEP Papa Murphy’s Holdings, LLC (collectively, with its permitted assignees as contemplated by Section 4.01(b), “Lee Equity”).
W I T N E S S E T H :
WHEREAS, in connection with underwritten initial public offering of Common Stock of the Company (the “Initial Public Offering”), it is the intention of the parties hereto to enter into this Agreement to govern Lee Equity’s rights with respect to the Company.
NOW, THEREFORE, for good and valuable consideration the sufficiency and adequacy of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE 1
DEFINITIONS
SECTION 1.01.      Definitions.  
(a)    The following terms, as used herein, have the following meanings:
“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such Person; provided that no securityholder of the Company shall be deemed an Affiliate of any other securityholder solely by reason of an investment in the Company.  For the purpose of this definition, the term “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.
“Board” means the board of directors of the Company.
“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York City are authorized by law to close.
“Change in Control” means any transaction whereby (i) any Person or Persons or “group” (other than Lee Equity and its Affiliates) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, in one or a series of transactions, of more than 50% of the total voting power 

    

or economic interest of the Company (or any entity which controls the Company or which is a successor to all or substantially all of the assets of the Company), including by way of issuance, merger, consolidation, tender or exchange offer or otherwise, or (ii) all or substantially all of the consolidated assets of the Company and its Subsidiaries are sold to any Person or Persons or “group” (other than Lee Equity and its Affiliates).   For the avoidance of doubt, neither the Initial Public Offering nor any secondary public offering shall be deemed a Change in Control.
“Charter” means the Fifth Amended and Restated Certificate of Incorporation of the Company, as the same may be amended from time to time.
“Common Stock” means the Company’s common stock, par value $0.01 per share, and any stock into which such Common Stock may thereafter be converted, changed, reclassified or exchanged.
“Company Securities” means (i) the Common Stock, (ii) any preferred stock, (iii) any other common stock issued by the Company and (iv) any securities convertible into or exchangeable for, or options, warrants or other rights to acquire, Common Stock or any other common stock issued by the Company.
“Credit Agreement” means that certain Credit Agreement, dated as of October 25, 2013, by and among PMI Holdings Inc. as borrower and the lender parties thereto, as in effect as of the date hereof (and without giving effect to any future modification, amendment or supplement thereof).
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Lee Equity Nominees” means the members of the Board designated by Lee Equity.
“Leverage Ratio” has the meaning ascribed to such term in the Credit Agreement.
“Person” means an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.
“Securities Act” means the Securities Act of 1933, as amended.
“Stockholder” means each Person (other than the Company) who, at any relevant determination date, shall be a party to or bound by this Agreement (as may be amended from time to time) so long as such Person shall “beneficially own” (as such term is defined in Rule 13d-3 of the Exchange Act) any Company Securities.

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“Subsidiary” means, with respect to any Person, any entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person.
“Transfer” means, with respect to any Company Securities, (i) when used as a verb, to sell, assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such Company Securities or any participation or interest therein, whether directly or indirectly, or agree or commit to do any of the foregoing and (ii) when used as a noun, a direct or indirect sale, assignment, disposition, exchange, pledge, encumbrance, hypothecation, or other transfer of such Company Securities or any participation or interest therein or any agreement or commitment to do any of the foregoing.
(b)    Other Definitional and Interpretive Matters.  Unless otherwise expressly provided, for purposes of this Agreement, the following rules of interpretation shall apply:
Headings.  The provision of a Table of Contents, the division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are for convenience of reference only and shall not affect or be utilized in construing or interpreting this Agreement.  All references in this Agreement to any “Section” are to the corresponding Section of this Agreement unless otherwise specified.
Herein.  The words such as “herein,” “hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires.
Including.  Wherever the word “include,” “includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”.
ARTICLE 2
CORPORATE GOVERNANCE
SECTION 2.01.      Board of Directors; Board Nominees; Committees.  
(a)    Concurrently with the Initial Public Offering, the Board shall consist of seven (7) directors comprised of the following: (i) the Lee Equity Nominees shall be Benjamin Hochberg, Yoo Jin Kim, Thomas H. Lee, and Achi Yaffe (ii) the independent director shall be John Shafer and (iii) the final two (2) directors shall be Ken Calwell and John Barr.  The Chairman of the Board shall be John Barr.  No later than the first anniversary of the Initial Public Offering, the Board shall be increased in size to nine (9) directors and shall be comprised of the following: (i) the Lee Equity Nominees, (ii) 

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the independent directors shall be John Shafer and four (4) other independent directors, and (iii) the final two directors shall be Ken Calwell and John Barr.
(b)    From and after the first anniversary of the Initial Public Offering, so long as Lee Equity owns: (i) 20% or more of the issued and outstanding Common Stock of the Company (excluding any subsequent acquisition of Common Stock, other than Common Stock acquired from the Company in a privately negotiated transaction), Lee Equity shall be entitled to designate to the Board at least two (2) of the Board’s nine (9) directors or (ii) less than 20%, but at least 10% of the issued and outstanding Common Stock of the Company (excluding any subsequent acquisition of Common Stock, other than Common Stock acquired from the Company in a privately negotiated transaction), Lee Equity shall be entitled to designate to the Board at least one (1) of the Board’s nine (9) directors. 
(c)    The Company agrees to cause each individual designated pursuant to this Section 2.01 or Section 2.02 to be nominated to serve as a director on the Board, or as Chairman of the Board, and to take all other necessary actions (including calling a special meeting of the Board and/or stockholders or expanding the size of the Board) to ensure that the composition of the Board is as set forth in this Section 2.01 and to otherwise implement the provisions of this Section 2.01 and Section 2.02.  For the avoidance of doubt, the Company agrees to expand the size of the Board to ensure that that the composition of the Board is as set forth in Sections 2.01(a) and 2.01(b).
SECTION 2.02.      Vacancies.  If, as a result of death, disability, retirement, resignation, removal or otherwise, there shall exist or occur any vacancy of a Lee Equity Nominee on the Board, Lee Equity may designate another individual (the “Replacement Nominee”) to fill such vacancy and serve as a director on the Board.
SECTION 2.03.      Reimbursement of Director Expenses.  The Company shall reimburse all reasonable and documented out-of-pocket expenses incurred by the Lee Equity Nominees in connection with traveling by first or business class on a commercial air carrier to and from and attending meetings of the Board and while conducting business at the request of the Company.  
SECTION 2.04.      Corporate Opportunities.  In furtherance of, and without limiting what is set forth in the Charter, except as may be otherwise expressly agreed in writing by the Company and Lee Equity and its Affiliates, the Company, on behalf of itself and its subsidiaries, renounces any interest or expectancy of the Company and its subsidiaries in, or in being offered an opportunity to participate in, business opportunities, which are from time to time presented to Lee Equity or any of its managers, officers, directors, agents, stockholders, members, partners, Affiliates and subsidiaries (other than the Company and its Subsidiaries), even if the opportunity is one that the Company or its Subsidiaries might reasonably be deemed to have pursued or had the ability or desire to pursue if granted the opportunity to do so, and no such person or 

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entity shall be liable to the Company or any of its Subsidiaries for breach of any fiduciary or other duty, as a director or officer or otherwise, by reason of the fact that such person or entity pursues or acquires such business opportunity, directs such business opportunity to another person or entity or fails to present such business opportunity, or information regarding such business opportunity, to the Company or its Subsidiaries unless, in the case of any such person who is a director or officer of the Company, such business opportunity is expressly offered to such director or officer in writing solely in his or her capacity as a director or officer of the Company.  The alteration, amendment, addition to or repeal of this Section 2.04, shall not eliminate or reduce the effect of this Section 2.04 in respect of any business opportunity first identified or any other matter occurring, or any cause of action, suit or claim that, but for this Section 2.04, would accrue or arise, prior to such alteration, amendment, addition, repeal or adoption. 
SECTION 2.05.     Approvals.  For so long as Lee Equity and its Affiliates own 25% or more of the issued and outstanding Common Stock of the Company (excluding any subsequent acquisition of Common Stock, other than Common Stock acquired from the Company in a privately negotiated transaction), the Company and its Subsidiaries shall not take any of the following actions without the prior written consent of Lee Equity:
(a)    issue Company Securities or equity securities of any of the Company’s Subsidiaries other than the granting of options or shares of Common Stock to members of the Company’s management or the issuance of shares of Common Stock in connection with the exercise of such options;
(b)    declare or pay any non-pro rata dividends or other non-pro rata distributions in respect of the Company Securities;
(c)    incur any indebtedness for borrowed money (other than indebtedness incurred under that certain existing revolver of up to $10,000,000 under the Credit Agreement or in connection with the refinancing of the Company’s existing indebtedness) that would cause the Leverage Ratio to exceed 4.5x at the time of such incurrence;
(d)        effect any merger, recapitalization, issuance of Company Securities or other adjustment in voting rights, in one or any series of related transactions, if such event would result in a Change in Control of the Company;
(e)        adopt a new equity-based incentive plan, make any increase to the maximum number of shares of Common Stock available to participants in the Company’s existing equity-based incentive plans or materially change the vesting schedule, or terminate any of the Company’s existing equity-based incentive plans;
(f)    make any material investment in, or acquire or dispose of, any material assets or entity (other than investments in wholly-owned subsidiaries), in each 

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case in excess of $25,000,000, or enter into any material joint ventures, partnerships or similar arrangements;
(g)    hire or terminate the employment of the Chief Executive Officer of the Company (the “CEO”);
(h)    materially increase the salary of the CEO (other than increases for standard cost of living adjustments) or make any material change to the bonus structure applicable to the CEO as is in effect as of the date hereof;
(i)    amend the Charter or bylaws of the Company in any manner adverse to Lee Equity;
(j)    materially change the Company’s business of being the owner and/or franchisor of stores and restaurants that sell or serve pizza and other food items; or
(k)    change the number of directors of the Company.
ARTICLE 3
CONFIDENTIAL INFORMATION
SECTION 3.01.    Confidentiality.  
(a)    The Company acknowledges and agrees that (i) Lee Equity may disclose Confidential Information to its Affiliates, representatives and advisors, (ii) any Lee Equity Nominee may disclose Confidential Information to Lee Equity and its Affiliates, representatives and advisors, (iii) Lee Equity and its Affiliates may disclose Confidential Information if requested or required by law, judicial or governmental order, deposition, interrogatory, subpoena, civil investigation, demand, discovery request or similar process (provided that if such disclosure is requested rather than required under applicable law, Lee Equity shall, to the extent permitted by applicable law, promptly notify the Company prior to any such disclosure to the extent practicable and cooperate with the Company, at the Company’s sole cost and expense, in any attempts it may make to obtain a protective order or other appropriate assurance that confidential treatment will be afforded the Confidential Information) and (iv) for so long as Lee Equity own 10% or more of the issued and outstanding Common Stock of the Company (excluding any subsequent acquisition of Common Stock, other than Common Stock acquired from the Company in a privately negotiated transaction), Lee Equity and its Affiliates (a) will be granted access to customary non-public information of the Company and members of the Company’s management team as reasonably requested by Lee Equity and (b) may disclose Confidential Information to any potential purchaser of the Company that executes a customary confidentiality agreement that includes a prohibition on trading on material non-public information (and Lee Equity shall provide the Company with prompt 

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written notice after execution thereof).  Except as set forth in this Section 3.01, Lee Equity will not disclose Confidential Information to any third party.
(b)    “Confidential Information” shall mean any confidential or proprietary information relating to the business or affairs of the Company or any of its Affiliates, including, but not limited to, information relating to financial statements, customer identities, potential customers, employees, sales representatives, suppliers, servicing methods, equipment programs, strategies and information, analyses, profit margins or other proprietary information used by the Company or any of its Affiliates; provided, however, that Confidential Information does not include any information which is in the public domain or becomes known in the industry through no wrongful act on the part of Lee Equity; provided that Confidential Information shall not include information that (i) is or becomes generally known to the public other than as a result of a disclosure by Lee Equity in violation of this Agreement, (ii) is or was available to Lee Equity on a non-confidential basis prior to its disclosure to Lee Equity, or (iii) was or becomes available to Lee Equity on a non-confidential basis from a source other than the Company or a Board member, which source is or was (at the time of receipt of the relevant information) not bound by a confidentiality agreement with the Company or another person.
ARTICLE 4
MISCELLANEOUS
SECTION 4.01.      Binding Effect; Assignability; Benefit.  
(a)    This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors, legal representatives and permitted assigns.
(b)    Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by any party hereto pursuant to any Transfer of Company Securities or otherwise; provided, however, that in connection with any Transfer of Company Securities by Lee Equity (i) to any of its Affiliates or (ii) of 10% or more of the issued and outstanding Common Stock of the Company in a privately negotiated transaction (a “Third Party Transfer”), in each case Lee Equity may assign all or any portion of its rights as set forth in Article 2 and Article 3 to any such transferee who agrees to be bound by this Agreement; provided, further, however, that in the case of a Third Party Transfer, the requisite ownership thresholds set forth in this Agreement shall apply to such third party transferee based on the number of shares of Common Stock of the Company received by such third party transferee from Lee Equity in such Third Party Transfer (and excluding any prior or subsequent acquisitions of Common Stock by such transferee via an open market transaction). Lee Equity shall provide the Company with prompt written notice following a Third Party Transfer.  Except for Section 2.04 and Section 4.12, nothing in this Agreement, expressed 

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or implied, is intended to confer on any Person other than the parties hereto, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 
SECTION 4.02.      Notices.  All notices, requests and other communications to any party shall be in writing and shall be delivered in person, mailed by certified or registered mail, return receipt requested, or sent by facsimile transmission,
If to the Company, to:
Papa Murphy’s Holdings, Inc.
8000 NE Parkway Drive, Suite 350
Vancouver, WA 98662
Attention:  Victoria Blackwell
Fax:  (360) 397-6665

If to Lee Equity, to:

Lee Equity Partners, LLC
650 Madison Avenue, 21st Floor
New York, New York  10022
Attention:  Yoo Jin Kim
Fax:  (646) 781-3700

In each case with a copy to:

Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153
Attention:  Douglas P. Warner, Esq.
Fax:  (212) 310-8007

or, in each case, at such other address or fax number as such party may hereafter specify for the purpose of notices hereunder by written notice to the other parties hereto.  All notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt.  Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.  Any notice, request or other written communication sent by facsimile transmission shall be confirmed by certified or registered mail, return receipt requested, posted within one (1) Business Day, or by personal delivery, whether courier or otherwise, made within two (2) Business Days after the date of such facsimile transmissions.

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Any Person that hereafter becomes a Stockholder shall provide its address and fax number to the Company, which shall promptly provide such information to each other Stockholder.
SECTION 4.03.      Waiver; Amendment; Termination.  
(l)    No provision of this Agreement may be waived except by an instrument in writing executed by the party against whom the waiver is to be effective.  No provision of this Agreement may be amended or otherwise modified except by an instrument in writing executed by the Company and Lee Equity.
(m)    This Agreement shall terminate upon, (i) the written request of Lee Equity or (ii) such time as Lee Equity or its Affiliates or any transferee of Lee Equity or its Affiliates who agrees to be bound by this Agreement pursuant to Section 4.01(b) owns less than 10% in the aggregate of the issued and outstanding Common Stock of the Company.
SECTION 4.04.      Fees and Expenses.  The Company shall pay the costs and expenses incurred in connection with (i) the preparation, negotiation and execution of this Agreement and (ii) Lee Equity’s enforcement of its rights and remedies set forth in this Agreement. 
SECTION 4.05.      Governing Law.  This Agreement, and all claims or causes of action (whether at law, in equity, in contract, in tort or otherwise) based upon, arising out of, related to or otherwise in connection with this Agreement or the transactions contemplated hereby, shall be exclusively governed by, and construed in accordance with, the internal laws of the State of Delaware, without giving effect to principles or rules of conflict of laws to the extent such principles or rules would require or permit the application of laws of another jurisdiction (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement).
SECTION 4.06.      Jurisdiction.  The parties hereby agree that any suit, action or proceeding (whether at law, in equity, in contract, in tort or otherwise) seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement) shall be exclusively brought in the United States District Court for the Southern District of New York or any New York State court sitting in New York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any case of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of New York, and each of the parties hereby irrevocably consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and 

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irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 4.03 shall be deemed effective service of process on such party.
SECTION 4.07.      Waiver of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING (WHETHER AT LAW, IN EQUITY, IN CONTRACT, IN TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
SECTION 4.08.      Specific Enforcement; Cumulative Remedies.  The parties hereto acknowledge that money damages may not be an adequate remedy for violations of this Agreement and that any party, in addition to any other rights and remedies which the parties may have hereunder or at law or in equity, may, in his or its sole discretion, apply to a court of competent jurisdiction for specific performance or injunction or such other relief as such court may deem just and proper in order to enforce this Agreement or prevent any violation hereof and, to the extent permitted by applicable law, each party waives any objection to the imposition of such relief.  All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such rights, powers or remedies by such party.
SECTION 4.09.      Entire Agreement.  This Agreement and any exhibits and other documents referred to herein constitute the entire agreement and understanding among the parties hereto in respect of the subject matter hereof and thereof and supersede all prior and contemporaneous agreements and understandings, both oral and written, among the parties hereto, or between any of them, with respect to the subject matter hereof and thereof.
SECTION 4.10.      Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.  Upon such a determination, the parties 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 so that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

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SECTION 4.11.      Counterparts; Effectiveness.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
SECTION 4.12.      No Recourse.  Notwithstanding anything that may be expressed or implied in this Agreement, and notwithstanding the fact that the entity comprising Lee Equity is a limited liability company, each party to this Agreement covenants, agrees and acknowledges that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against any of Lee Equity’s current or future directors, officers, employees, general or limited partners, members, managers or trustees, or any partner, member, manager or trustee, as such, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any of Lee Equity’s current or future officers, agents, employees, directors, managers, members, or any Affiliates or assignees thereof, as such, for any obligation of Lee Equity under this Agreement or any documents or instruments delivered in connection with this Agreement for any claim based on, in respect of or by reason of such obligations or their creation (in each case, except in the case of any such Person trading on material non-public Confidential Information in violation of Section 3.01 and applicable law).
       [The remainder of this page is intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

PAPA MURPHY’S HOLDINGS, INC.

By:    /s/ Ken Calwell______________________
Name: Ken Calwell
Title:   Chief Executive Officer and President

LEP PAPA MURPHY’S HOLDINGS, LLC

By:    /s/ Joseph B. Rotberg_________________
Name:  Joseph B. Rotberg
Title:   Chief Financial Officer

[SIGNATURE PAGE TO STOCKHOLDER’S AGREEMENT]EX 10.4 -4thAmendmentto2ndARCreditAgreement

Exhibit 10.4

FOURTH AMENDMENT TO 
SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 28, 2014 (this "Amendment"), is among SMITHFIELD FOODS, INC., a Virginia corporation (the "Company"), the subsidiary guarantors party hereto, the banks and other lending institutions party hereto, and COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A. "RABOBANK NEDERLAND", NEW YORK BRANCH, as administrative agent (in such capacity, the "Administrative Agent").
RECITALS:

The Company, certain of its subsidiaries as guarantors, certain of the banks and other lending institutions party thereto and the Administrative Agent have entered into that certain Second Amended and Restated Credit Agreement dated as of June 9, 2011 (as amended by (i) that certain First Amendment to Second Amended and Restated Credit Agreement dated as of January 31, 2013, that certain Increased Commitment Supplement dated as of January 31, 2013, (ii) that certain Consent and Second Amendment to Second Amended and Restated Credit Agreement dated as of July 12, 2013, and (iii) that certain Consent and Third Amendment to Second Amended and Restated Credit Agreement dated as of January 16, 2014, the "Agreement").  
The Company has informed the Administrative Agent and the Lenders that in order to address certain current market conditions affecting the commodity risk management activities of the Company and its Subsidiaries, the Company desires to (i) increase the maximum aggregate amount of Liens on cash or Permitted Investments of the Company or any Restricted Subsidiary securing obligations under permitted Swap Agreements pursuant to Section 6.02(h)(i) of the Agreement from $250,000,000 to $350,000,000 and (ii) increase the maximum aggregate amount of other Liens on cash or Permitted Investments posted to the issuers of letters of credit, bank guaranties or providers of Banking Services or Swap Agreements to secure the obligations of the Company or any Loan Party pursuant to Section 6.02(t)(ii) of the Agreement from $50,000,000 to $100,000,000.  
NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows effective as of the date hereof unless otherwise indicated:
ARTICLE 1. 
 
Definitions
Section 1.1.    Definitions.  Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Agreement, as amended hereby.
ARTICLE 2.     
 
Amendments
Section 2.1.    Amendment to Section 6.02(h) (Swap Agreement Liens; CNMV Guaranty Liens).  Section 6.02(h) of the Agreement is hereby amended by deleting both references to “$250,000,000” in clause (i) thereof and inserting, in each such instance, “$350,000,000” in lieu thereof.

Section 2.2.    Amendment to Section 6.02(t) (Other Liens).  Section 6.02(t) of the Agreement is hereby amended by deleting the reference to “$50,000,000” in clause (ii) thereof and inserting “$100,000,000” in lieu thereof.
ARTICLE 3.    
Conditions Precedent
Section 3.1.    Conditions.  The effectiveness of this Amendment is subject to the satisfaction (or waiver in accordance with Section 9.02 (Waiver; Amendments) of the Agreement) of the following conditions precedent:
(a)    The Administrative Agent shall have received from each Loan Party and the Required Lenders either (i) a counterpart of this Amendment signed and delivered on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy or other electronic transmission of a signed signature page to this Amendment) that such party has signed and delivered a counterpart of this Amendment; and
(b)    All proceedings taken in connection with the matters contemplated by this Amendment and all documentation and other legal matters incident thereto shall be satisfactory to the Administrative Agent and its legal counsel.
ARTICLE 4.     
 
Ratifications, Representations and Warranties
Section 4.1.    Acknowledgements; Ratification and Reaffirmations.  
(a)    The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Agreement and except as expressly modified and superseded pursuant to Article 2 of this Amendment, the terms and provisions of the Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect; 
(b)    Each Loan Party, the Administrative Agent, and the Lenders party hereto agree that the Agreement as amended hereby and the other Loan Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective terms;  
(c)    Each Loan Party acknowledges and agrees that this Amendment constitutes a Loan Document for all purposes under the Agreement and the other Loan Documents; and
(d)    Each Loan Party hereby reaffirms each of the agreements, covenants and undertakings set forth in the Agreement and each and every other Loan Document executed in connection therewith or pursuant hereto, as amended and modified hereby, as if such Loan Party was making said agreements, covenants and undertakings on the date hereof.
Section 4.2.    Representations and Warranties.  Each Loan Party represents and warrants to the Administrative Agent and the Lenders as follows:  (a)  no Default exists, (b) the representations and warranties set forth in the Agreement are true and correct in all material respects (or, in the case of any representation and warranty qualified by materiality, in all respects) on and as of the date hereof with the same effect as though made on and as of such date except with respect to any representations and warranties limited by their terms to an earlier date (in which case such representation and warranty shall be true and correct in all 

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 2

material respects as of such earlier date, or in the case of any representation and warranty qualified by materiality, in all respects as of such earlier date) and (c) it has all requisite power and authority to execute, deliver and perform it obligations under this Amendment.  IN ADDITION, TO INDUCE THE ADMINISTRATIVE AGENT AND THE LENDERS TO AGREE TO THE TERMS OF THIS AMENDMENT, EACH LOAN PARTY REPRESENTS AND WARRANTS THAT AS OF THE DATE OF ITS EXECUTION OF THIS AMENDMENT THERE ARE NO CLAIMS OR OFFSETS AGAINST OR RIGHTS OF RECOUPMENT WITH RESPECT TO OR DEFENSES OR COUNTERCLAIMS TO ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS AND IN ACCORDANCE THEREWITH IT:
(a)    WAIVER.  WAIVES ANY AND ALL SUCH CLAIMS, OFFSETS, RIGHTS OF RECOUPMENT, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE OF ITS EXECUTION OF THIS AMENDMENT; AND
(b)    RELEASE.  RELEASES AND DISCHARGES THE ADMINISTRATIVE AGENT AND THE LENDERS, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SHAREHOLDERS, AFFILIATES AND ATTORNEYS (COLLECTIVELY THE "RELEASED PARTIES") FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, RIGHTS, CAUSES OF ACTION OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, IN LAW OR EQUITY, WHICH ANY LOAN PARTY EVER HAD, NOW HAS, CLAIMS TO HAVE OR MAY HAVE AGAINST ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF AND FROM OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY.
ARTICLE 5.     
 
Miscellaneous
Section 5.1.    Survival of Representations and Warranties.  All representations and warranties made in this Amendment or any other Loan Document including any Loan Document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by the Administrative Agent or any Lender or any closing shall affect the representations and warranties or the right of the Administrative Agent or any Lender to rely upon them.
Section 5.2.    Reference to Agreement.  Upon and after the effectiveness of Article 2 of this Amendment, each reference to the Agreement in each of the Loan Documents, including the Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Agreement as amended hereby, are amended so that any reference in such Loan Documents to the Agreement shall mean a reference to the Agreement as amended hereby.
Section 5.3.    Expenses of Administrative Agent.  As provided in Section 9.03(a) (Expense Reimbursement) of the Agreement, the Company agrees to pay all reasonable and documented out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto, including without limitation, the reasonable costs and fees of Administrative Agent's legal counsel.
Section 5.4.    Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 3

Section 5.5.    Governing Law.  This Amendment and all other Loan Documents executed pursuant hereto shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof, but giving effect to federal laws applicable to national banks.  This governing law election has been made by the parties in reliance (at least in part) on Section 5–1401 of the General Obligations Law of the State of New York, as amended (as and to the extent applicable), and other applicable law.
Section 5.6.    Successors and Assigns.  This Amendment is binding upon and shall inure to the benefit of the Administrative Agent, each Lender, each Loan Party, and their respective successors and permitted assigns, except no Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lenders.  Any assignment or other transfer made in violation of this Section shall be void.
Section 5.7.    Counterparts.  This Amendment may be executed in one or more counterparts and on telecopy or other electronically reproduced counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic communication shall be effective as delivery of a manually executed counterpart of this Amendment. 
Section 5.8.    Effect of Waiver.  No consent or waiver, express or implied, by Administrative Agent or any Lender to or for any breach of or deviation from any covenant, condition or duty hereunder by the Company or any other Loan Party shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition or duty.
Section 5.9.    Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
ARTICLE 6.    
Section 6.1.    Entire Agreement.  This Amendment and all other instruments, documents and agreements executed and delivered in connection with this Amendment embody the final, entire agreement among the parties hereto and supersede any and all prior commitments, agreements, representations and understandings, whether written or oral, relating to this Amendment, and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto.
Section 6.2.    Required Lenders.  Pursuant to Section 9.02 (Waiver; Amendments) of the Agreement, the Agreement may be modified as provided in this Amendment with the agreement of the Required Lenders which means Lenders having Credit Exposures and unused Commitments representing more than 50% of the Aggregate Credit Exposures and unused Commitments (such percentage applicable to a Lender, herein such Lender's "Required Lender Percentage").  For purposes of determining the effectiveness of this Amendment, each Lender's Required Lender Percentage is set forth on Schedule 6.11 hereto.

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 4

Executed as of the date first written above.
COMPANY:

Smithfield Foods, Inc., a Virginia corporation

By:    /s/ Timothy Dykstra__________________
Name:    Timothy Dykstra
Title:    Vice President and Corporate Treasurer

OTHER LOAN PARTIES:

Brown's Realty Partnership, a North Carolina general partnership
Carroll's Realty Partnership, a North Carolina general partnership 
Smithfield-Carroll's Farms, a Virginia general partnership

		
	By:
	Murphy-Brown, LLC, as a general partner of each

By:    /s/ Timothy P. Dykstra        
Name:      Timothy P. Dykstra    
Title:    Vice President     

Armour-Eckrich Meats LLC,  a Delaware limited liability company
Farmland Foods, Inc., a Delaware corporation
John Morrell & Co., a Delaware corporation
Murphy-Brown LLC, a Delaware limited liability company
Murphy Farms of Texhoma, Inc., an Oklahoma corporation
Patrick Cudahy, LLC, a Delaware limited liability company
Premium Pet Health, LLC,  a Delaware limited liability company
Premium Standard Farms, LLC,  a Delaware limited liability company
Smithfield Global Products Inc., a Delaware corporation
The Smithfield Packing Company, Incorporated,  a Delaware corporation
Smithfield Purchase Corporation, a North Carolina corporation
Smithfield Transportation Co., Inc., a Delaware corporation
Stefano Foods, Inc., a North Carolina corporation
SFRMH Liquidation, Inc. (f/k/a RMH Foods, Inc.), a Delaware corporation

By:    /s/ Timothy P. Dykstra        
Name:    Timothy P. Dykstra    
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 5

Jonmor Investments, Inc., a Delaware corporation
Patcud Investments, Inc., a Delaware corporation
SFFC, INC., a Delaware corporation
SF Investments, Inc., a Delaware corporation

By:    /s/ Jeffrey A. Porter__________________                  
Name:    Jeffrey A. Porter
Title:    President

ADMINISTRATIVE AGENT AND LENDERS:

COÖPERATIEVE CENTRALE
RAIFFEISEN-BOERENLEENBANK B.A.,
"RABOBANK NEDERLAND", NEW
YORK BRANCH, as Administrative Agent 

By:    /s/ Jeff Geisbauer______________________
Name:    Jeff Geisbauer
Title:    Executive Director

By:    /s/ Pamela Beal________________________
Name:    Pamela Beal
Title:    Executive Director

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 6

JPMORGAN CHASE BANK, N.A., as a Lender

By:  /s/ Tony Yung            ______________
Name:    Tony Yung
Title:    Executive Director

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 7

BARCLAYS BANK PLC, as a Lender

By:/s/ Marguerite Sutton            
Name:    Marguerite Sutton
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 8

AGFIRST FARM CREDIT BANK, as a Lender

By: /s/ Steven J. O’Shea        
Name:    Steven J. O’Shea
Title:    Vice President

Voting Participants:

Farm Credit Bank of Texas

By:  /s/ Chris M. Levine        
Name:    Chris M. Levine
Title:    Vice President

 

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 9

GOLDMAN SACHS BANK USA, as a Lender

By: /s/ Ashwin Ramakrishna            
Name:    Ashwin Ramakrishna
Title:    Authorized Signatory

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 10

BANK OF MONTREAL, as a Lender

By: /s/ Philip Langheim            
Name:    Philip Langheim
Title:    Managing Director

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 11

MORGAN STANLEY BANK, N.A., as a Lender

By: /s/ Jason Lipschitz        ______
Name:    Jason Lipschitz
Title:    Authorized Signatory

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 12

COBANK, ACB, as a Lender

By: /s/ Hal Nelson            
Name:    Hal Nelson
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 13

SOCIETE GENERALE, as a Lender

By:  /s/ Barbara Paulson                
Name:    Barbara Paulson
Title:    Managing Director

By:                        
Name:                        
Title:                        

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 14

U.S. BANK NATIONAL ASSOCIATION, 
as a Lender

By:  /s/ Harry J. Brown                
Name:    Harry J. Brown
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 15

AGSTAR FINANCIAL SERVICES, PCA, 
as a Lender

By: /s/ Troy Mostaert            
Troy Mostaert, Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 16

NORTHWEST FARM CREDIT SERVICES, PCA, 
as a Lender

By: /s/ Mark Westfall                
Name:    Mark Westfall
Title:    VP

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 17

BANK OF AMERICA, N.A., 
as a Lender

By: /s/ David L. Catherall                
Name:    David L. Catherall
Title:    Managing Director

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 18

UNITED FCS, PCA D/B/A FCS COMMERCIAL FINANCE GROUP, as a Lender

By: /s/ Lisa Caswell            
Name:    Lisa Caswell
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 19

FARM CREDIT MID-AMERICA, PCA, f/k/a FARM CREDIT SERVICES OF MID-AMERICA, PCA, as a Lender

By: /s/ Ralph Bowman            
Name:    Ralph Bowman    
Title:    Vice President Capital Markets

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 20

SANTANDER BANK, N.A.,
as a Lender

By: /s/ Carlos A. Calixto            
Name:    Carlos A. Calixto
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 21

ING CAPITAL LLC, 
as a Lender

By: /s/ W. Leroy Startz            
Name:    W. Leroy Startz
Title:    Director

By: /s/ William B. Redmond                
Name:    William B. Redmond
Title:    Managing Director

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 22

CREDIT AGRICOLE CORPORATE AND
 INVESTMENT BANK, as a Lender

By:    /s/ Elvis Grgurovic________________
Name:    Elvis Grgurovic
Title:    Director

By:    /s/ Rachel Tresser________________
Name:    Rachel Tresser
Title:    Director

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 23

COMPASS BANK, 
as a Lender

By: /s/ Christopher Griffin_____________
Name:    Christopher Griffin
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 24

FARM CREDIT SERVICES OF AMERICA, PCA,
as a Lender

By: /s/ Bruce Dean        _________
Name:    Bruce Dean
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 25

AMERICAN AGCREDIT, PCA (successor by merger to Farm Credit Services of the Mountain Plains, PCA), as a Lender

By: /s/ Janice T. Thede            
Name:    Janice T. Thede
Title:    Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 26

1ST FARM CREDIT SERVICES, PCA, 
as a Lender

By: /s/ Lee Fuchs        
Name:    Lee Fuchs
Title:    Vice President, Capital Markets Group

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 27

GREENSTONE FARM CREDIT SERVICES, ACA/FLCA, as a Lender

By: /s/ Alfred S. Compton, Jr.        
Name:    Alfred S. Compton, Jr.
Title:    SVP/Managing Director

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 28

FARM CREDIT WEST, PCA, 
as a Lender

By:                        
Ben Madonna, Vice President

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 29

FARMERS BANK, 
as a Lender

By:                        
Name:                        
Title:                        

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 30

GENERAL ELECTRIC CAPITAL CORPORATION, as a Lender

By: /s/ Nita Jain              
Name:    Nita Jain
Title:    Duly Authorized Signatory

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Page 31

Schedule 6.11
to
Smithfield Foods, Inc.
Fourth Amendment to Second Amended and Restated Credit Agreement

Required Lender Percentage 

	
				
	Lender
	Required Lender 
Percentage Held
	Lenders Agreeing to 
Consent Letter(insert % from prior column if Lender signs Consent Letter then total % in this column)

	Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. "Rabobank Nederland", New York Branch
	7.695451510
	%
	7.695451510%

	Barclays Bank PLC
	6.390243900
	%
	6.390243900%

	AgFirst Farm Credit Bank
	11.707317070
	%
	11.707317070%

	Goldman Sachs Bank USA
	4.780487810
	%
	4.780487810%

	Bank of Montreal
	4.780487810
	%
	4.780487810%

	Morgan Stanley Bank, N.A.
	2.926829270
	%
	2.926829270%

	CoBank, ACB
	8.548450930
	%
	8.548450930%

	JPMorgan Chase Bank, N. A.
	4.780487810
	%
	4.780487810%

	Societe Generale
	4.780487810
	%
	4.780487810%

	U.S. Bank National Association
	4.195121950
	%
	4.195121950%

	AgStar Financial Services, PCA
	3.414634150
	%
	3.414634150%

	Northwest Farm Credit Services, PCA
	3.414634150
	%
	3.414634150%

	Bank of America, N.A.
	3.219512200
	%
	3.219512200%

	United FCS, PCA d/b/a FCS Commercial Finance Group
	2.682926830
	%
	2.682926830%

	Farm Credit Mid-America, PCA (fka Farm Credit Services of Mid-America, PCA)
	2.682926830
	%
	2.682926830%

	Santander Bank, N.A.
	2.682926830
	%
	2.682926830%

	ING Capital LLC
	2.365853660
	%
	2.365853660%

	Credit Agricole Corporate and Investment Bank
	2.731707320
	%
	2.731707320%

	Compass Bank
	2.146341460
	%
	2.146341460%

	Farm Credit Services of America, PCA
	2.365853660
	%
	2.365853660%

	American AgCredit, PC
	2.146341460
	%
	2.146341460%

	1st Farm Credit Services, PCA
	3.219512200
	%
	3.219512200%

	GreenStone Farm Credit Services, ACA/FLCA
	2.243902440
	%
	2.243902440%

	Farm Credit West, PCA
	1.951219510
	%
	 

	Farmers Bank
	0.487804880
	%
	0.487804880%

	General Electric Capital Corporation
	1.658536585%

	

	1.658536585%

	TOTAL
	100.00
	%
	98.048780480%

Schedule 6.11 to Fourth Amendment to Second Amended and Restated Credit Agreement

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