Document:

exv4w1

 

Exhibit 4.1

	 	 	 
	COMMON STOCK	 	
COMMON STOCK

	 	 	 
	C	[GRAPHIC OMITTED — CAPITALSOURCE LOGO]	

CUSIP 14055X 10 2

SEE REVERSE FOR

CERTAIN DEFINITIONS

CAPITALSOURCE INC.

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

THIS CERTIFICATE IS TRANSFERABLE IN CHARLOTTE, NC OR NEW YORK, NY

THIS CERTIFIES THAT

is the owner of

     FULLY PAID AND NONASSESSABLE SHARES OF THE PAR VALUE OF $0.01 EACH OF THE
COMMON STOCK OF

--------------------------------------------------------------------- CAPITALSOURCE INC. ---------------------------------------------------------------------

transferable on the books of the Corporation by the holder hereof in person or
by duly authorized attorney upon surrender of this certificate properly
endorsed. This certificate is not valid unless countersigned and registered by
the Transfer Agent and Registrar.

        WITNESS the facsimile signatures of the duly authorized officers of the
Corporation.

Dated:

	 	 	 
	/s/ Steven A. Museles	 	
/s/ John K. Delaney
	CHIEF LEGAL OFFICER AND SECRETARY	 	
CHAIRMAN AND CEO

	 	 	 
	 	 	
COUNTERSIGNED AND REGISTERED:
	 	 	
WACHOVIA BANK, N.A.
	 	 	
(Charlotte, NC)

	 	 	 
	BY:	 	
TRANSFER AGENT

AND REGISTRAR
	 
	 	 	
AUTHORIZED SIGNATURE

 

[FORM OF REVERSE OF CERTIFICATE]

     A full statement of the powers, designations, preferences and relative,
participating, notional or other special rights of each class of stock or
series thereof of the Corporation and the qualifications, limitations or
restrictions of such preferences and/or rights will be furnished by said
Corporation to any stockholder upon request and without charge.

     The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

  	 	 	 	 	 
	TEN COM	–as tenants in common	  UNIF GIFT MIN ACT-_________Custodian_________
	TEN ENT	–as tenants by the entireties	 	 (Cust)	    (Minor)
	JT TEN	–as joint tenants with right of 	 	 under Uniform
        Gifts to Minors Act________
	 	survivorship and not as tenants in common

        	 	 	                            (State)
	 	 	 	 	  

Additional abbreviations may also be used though not in the above list.

For Value
  Received, ___________________________________ hereby sell, assign and transfer
  unto

  

PLEASE
  INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE
  

  _________________________________ 

____________________________________________________________________________________________

     PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE

____________________________________________________________________________________________

 
________________________________________________________________________________________________
Shares
  
of the Common Stock represented by the within Certificate, and
  do hereby irrevocably constitute and appoint 

  _______________________________________________________________________________________________Attorney
  to transfer the said stock on the books of the within-named Corporation with
  full power of substitution in the premises.  

  	 	 	 	 	 
	Dated	 	 	 	 
	 	 	 	 	

	 	 	 	 	 
	 	 	 	 	

	 	 	 NOTICE: 	 	 THE SIGNATURE TO THIS ASSIGNMENT
        MUST CORRESPOND WITH THE NAME(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE,
        IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE
        WHATEVER.

SIGNATURES(S) GUARANTEED:

	 	 	 
	By	 	 
	 	

	 	  THE SIGNATURE(S)
      SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS,
      SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
      SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.exv10w1

 

EXHIBIT 10.1

AMENDMENT No. 3

Dated as of July 18, 2003

to

RECEIVABLES PURCHASE AGREEMENT

Dated as of June 26, 1998

     This AMENDMENT NO. 3 (this “Amendment”) dated as of July 18, 2003 is
entered into among PILGRIM’S PRIDE FUNDING CORPORATION (“Seller”), PILGRIM’S
PRIDE CORPORATION (“Pilgrim’s Pride”) as initial Servicer, FAIRWAY FINANCE
CORPORATION (as successor in interest to Pooled Accounts Receivable Capital
Corporation) (“Purchaser”) and HARRIS NESBITT CORP. (as successor to BMO
Nesbitt Burns Corp.), as agent for the Purchaser (in such capacity, together
with its successors and assigns, the “Agent”).

RECITALS

     WHEREAS, the parties hereto have entered into a certain Receivables
Purchase Agreement dated as of June 26, 1998 (as amended through the date
hereof, the “Agreement”);

     WHEREAS, the parties hereto wish to make certain changes to the Agreement
as herein provided;

     NOW, THEREFORE, in consideration of the promises and the mutual agreements
contained herein and in the Agreement, the parties hereto agree as follows:

     SECTION 1. Definitions. All capitalized terms not otherwise defined
herein are used as defined in the Agreement.

     Amendments to the Agreement. The Agreement is hereby amended as follows:

     2.1. Exhibit I to the Agreement is hereby amended by adding thereto the
following new definitions in the appropriate alphabetical order:

		
	 	     “Cash Equivalent” shall mean with respect to any Person any
short-term investments that are classified as cash equivalents on such
Person’s consolidated balance sheet in accordance with generally accepted
accounting principles, consistently applied.

		
	 	     “EBITDA” shall mean, with respect to any Person, in any fiscal year,
all earnings (other than extraordinary items) of such Person before
interest and income tax obligations of such Person for said year and
before depreciation and amortization charges of such Person for said
year, all determined in accordance with generally accepted accounting
principles, consistently applied.

		
	 	     “Fiscal Year” shall mean the 52 or 53 week period ending on the
Saturday closest to September 30 in each calendar year, regardless of
whether such Saturday occurs in September or October of any calendar
year.

 

 

		
	 	     “Fixed Charge Coverage Ratio” with respect to any Person shall mean
the ratio of (a) the sum of EBITDA and all amounts payable under all
non-cancellable operating leases (determined on a consolidated basis in
accordance with generally accepted accounting principles, consistently
applied) for the period in question, to (b) the sum of (without
duplication) (i) Interest Expense for such period, (ii) the sum of the
scheduled current maturities (determined in accordance with generally
accepted accounting principles consistently applied) of Funded Debt
during the period in question, (iii) all amounts payable under
non-cancellable operating leases (determined as aforesaid) during such
period, and (iv) without duplication, all amounts payable with respect to
capitalized leases (determined on a consolidated basis in accordance with
generally accepted accounting principles, consistently applied) for the
period in question. Fixed Charge Coverage Ratio shall be calculated
without regard to (i) the indebtedness of Pilgrim’s Pride relating to the
Protein IRB Bond in the definition of “Funded Debt” to the extent
proceeds remain held in trust and not paid to Pilgrim’s Pride pursuant to
the terms of the Protein IRB Bond and (ii) the indebtedness, if any, of
Pilgrim’s Pride or its subsidiaries, as lessee, relating to the
Intercompany Bonds in the definition of “Funded Debt” or otherwise so
long as Pilgrim’s Pride or a subsidiary of Pilgrim’s Pride remains the
holder of such Intercompany Bonds.

		
	 	     “Funded Debt” with respect to any Person shall mean all indebtedness
for borrowed money of such Person and with respect to Pilgrim’s Pride all
indebtedness for borrowed money of Pilgrim’s Pride, in each case maturing
by its terms more than one year after, or which is renewable or
extendible at the option of such Person for a period ending one year or
more after, the date of determination, and shall include indebtedness for
borrowed money of such maturity created, assumed or guaranteed by such
Person either directly or indirectly, including obligations of such
maturity secured by liens upon Property of such Person and upon which
such entity customarily pays the interest, all current maturities of all
such indebtedness of such maturity and all rental payments under
capitalized leases of such maturity.
	 
	 	     “Intangible Assets” shall mean license agreements, trademarks, trade
names, patents, capitalized research and development, proprietary
products (the results of past research and development treated as long
term assets and excluded from Inventory) and goodwill (all determined on
a consolidated basis in accordance with generally accepted accounting
principles consistently applied).
	 
	 	     “Intercompany Bonds” shall mean those certain existing industrial
revenue bonds in the aggregate principal amount of approximately $57.5
million, currently held by ConAgra Foods, Inc. (“ConAgra”), and following
the date hereof are transferred and assigned to Pilgrim’s Pride or a
subsidiary of Pilgrim’s Pride, in connection with the proposed
acquisition by Pilgrim’s Pride of all or a portion of the chicken
business of ConAgra (and/or one or more of its subsidiaries), which bonds
are provided by or through state and local governmental agencies, the
proceeds of which were used to finance the acquisition and construction
of specified projects covered by certain lease agreements with the
governmental authorities that issued such Intercompany Bonds as lessor,
under which lease agreements one or more subsidiaries or divisions of
ConAgra

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	 	(which subsidiary or division is acquired by Pilgrim’s Pride
following the date hereof), remains liable, as the lessee.

		
	 	     “Interest Expense” for any period shall mean all interest charges
during such period, including all amortization of debt discount and
expense and imputed interest with respect to capitalized lease
obligations, determined on a consolidated basis in accordance with
generally accepted accounting principles, consistently applied.
	 
	 	     “Inventory” with respect to any Person shall mean all raw materials,
work in process, finished goods, and goods held for sale or lease or
furnished or to be furnished under contracts of service in which such
Person or any subsidiary now has or hereafter acquires any right.
	 
	 	     “Leverage Ratio” for any Person, shall mean the ratio for such
Person and its subsidiaries (as calculated on the last day of each fiscal
quarter of such Person) of (a) an amount equal to the sum of the
aggregate outstanding principal amount of all Debt (other than Debt
consisting of reimbursement and other obligations with respect to undrawn
letters of credit), minus the aggregate principal amount of all cash and
Cash Equivalents reflected on such Person’s balance sheet that is not
restricted to secure the payment of off-balance sheet liabilities of such
Person or any subsidiary, to (b) the amount included in clause (a),
above, plus the Net Worth of such Person. Leverage Ratio shall be
calculated without regard to (i) the indebtedness of Pilgrim’s Pride
relating to the Protein IRB Bond in the definition of “Debt” to the
extent proceeds remain held in trust and not paid to Pilgrim’s Pride
pursuant to the terms of the Protein IRB Bond and (ii) the indebtedness,
if any, of Pilgrim’s Pride or its subsidiaries, as lessee, relating to
the Intercompany Bonds in the definition of “Debt” so long as Pilgrim’s
Pride or a subsidiary of Pilgrim’s Pride remains the holder of such
Intercompany Bonds.
	 
	 	     “Net Income” of any Person shall mean the net income of such Person
and its subsidiaries determined on a consolidated basis in accordance
with generally accepted accounting principles, consistently applied.
	 
	 	     “Net Worth” of any Person shall mean the Total Assets minus the
Total Liabilities of such Person and its subsidiaries, all determined on
a consolidated basis in accordance with generally accepted accounting
principles, consistently applied.
	 
	 	     “Property” shall mean any interest in any kind of property or asset,
whether real, personal or mixed or tangible or intangible.
	 
	 	     “Protein IRB Bond” shall mean Pilgrim’s Pride’s obligations pursuant
to that certain Loan Agreement dated as of June 5, 1999 between Pilgrim’s
Pride and the Camp County Industrial Development Corporation and in
connection with the related bonds issued by the Camp County Industrial
Development Corporation.
	 
	 	     “Tangible Net Worth” of any Person (as calculated on the last day of
each fiscal quarter of such Person), shall mean the Net Worth of such
Person minus the amount of all Intangible Assets of such Person on such
date and its subsidiaries, determined on a

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	 	consolidated basis in accordance with generally accepted accounting
principles, consistently applied.

		
	 	     “Total Assets” with respect to any Person, shall mean at any date,
the aggregate amount of assets of such Person and its subsidiaries
determined on a consolidated basis in accordance with generally accepted
accounting principles consistently applied.
	 
	 	     “Total Liabilities” with respect to any Person, shall mean at any
date, the aggregate amount of all liabilities of such Person and its
subsidiaries determined on a consolidated basis in accordance with
generally accepted accounting principles, consistently applied.

     2.2. The definition of “Debt” set forth in Exhibit I to the Agreement is
hereby amended in its entirety as follows:

		
	 	     “Debt” of any Person means as of any time the same is to be
determined, the aggregate of:

		
	 	     (a) all indebtedness, obligations and liabilities of such
Person with respect to borrowed money (including by the issuance of
debt securities);
	 
	 	     (b) all guaranties, endorsements and other contingent
obligations of such Person with respect to indebtedness arising
from money borrowed by others;
	 
	 	     (c) all reimbursement and other obligations with respect to
letters of credit, bankers acceptances, customer advances and other
extensions of credit whether or not representing obligations for
borrowed money;
	 
	 	     (d) the aggregate of the principal components of all leases
and other agreements for the use, acquisition or retention of real
or personal property which are required to be capitalized under
generally accepted accounting principles consistently applied;
	 
	 	     (e) all indebtedness, obligations and liabilities representing
the deferred purchase price of property or services (excluding
trade payables incurred in the ordinary course of business); and
	 
	 	     (f) all indebtedness secured by a lien on the Property of such
Person, whether or not such Person has assumed or become liable for
the payment of such indebtedness.

     2.3. Clause (a) of the definition of “Facility Termination Date” set forth
in Exhibit I to the Agreement is hereby amended by replacing the reference to
“July 25, 2003” with a reference to “June 26, 2008” therein.

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     2.4. Clause (y) of the definition of “Loss Percentage” set forth in
Exhibit I to the Agreement is hereby amended in its entirety as follows:

	 	 	 

	 	 	"(y) the greater of (1) the highest average of the Dilution Ratios for
any three consecutive calendar months during the twelve most recent
calendar months and (2) 1.75%,”

     2.5. Clause (iii) of the definition of “Loss Percentage” set forth in
Exhibit I to the Agreement is hereby amended by replacing the percentage “10%”
with the percentage “12%” therein.

     2.6. The definition of “Normal Concentration Percentage” set forth in
Exhibit I to the Agreement is hereby amended in its entirety as follows:

		
	 	     “Normal Concentration Percentage” for any Obligor means at any time
3% if such Obligor is not a Special Obligor, or if such Obligor is a
Special Obligor, 11% if such Special Obligor is rated A+ or better by S&P
and A1 or better by Moody’s, 6% if such Special Obligor is rated A- or
better by S&P and A3 or better by Moody’s, and 5% if such Special Obligor
is not so rated but is rated at least BBB- by S&P and Baa3 by Moody’s.

     2.7. The definition of “Purchase Limit” set forth in Exhibit I to the
Agreement is hereby amended by replacing the amount “$60,000,000” with the
amount “$125,000,000” therein.

     2.8. Section 1.8(a) of the Agreement is hereby amended by adding to the
end thereof the following new sentence:

	 	 	 

	 	 	“For the avoidance of doubt, any interpretation of Accounting Research
Bulletin No. 51 by the Financial Accounting Standards Board (“FASB”)
(including, without limitation, FASB Interpretation No. 46), shall
(notwithstanding anything in this paragraph or otherwise in this
Agreement to the contrary, whether or not issued or occurring on or prior
to or after the date hereof) constitute an adoption, change, request,
guideline or directive subject to this Section 1.8.”

		

     2.9. Section 5.6 of the Agreement is hereby amended by adding thereto the
following new paragraph:

		
	 	     “Notwithstanding any other provision herein, each of the parties
hereto (and each employee, representative or other agent of each such
party) may disclose to any and all Persons, without limitation of any
kind, the U.S. tax treatment and U.S. tax structure of the transactions
contemplated herein and all materials of any kind (including opinions or
other tax analyses) that are provided to such party relating to such U.S.
tax treatment and U.S. tax structure, other than any information for
which nondisclosure is reasonably necessary in order to comply with
applicable securities laws.”

     2.10. Exhibit IV to the Agreement is hereby amended by adding to the end
thereof the following new paragraphs “t,” “u,” and “v”:

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	 	     "(t) Leverage Ratio. The Servicer (or if
’s Pride is not
then the Servicer, Pilgrim’s Pride) will not permit its Leverage Ratio at
any time to exceed 0.7 to 1.
	 
	 	     (u) Tangible Net Worth. The Servicer (or if Pilgrim’s Pride is not
then the Servicer, Pilgrim’s Pride) shall maintain its Tangible Net Worth
at all times during the periods specified below in an amount not less
than the minimum required amount for each period set forth below:

		
	 	     (a) from July 15, 2003 through the next to last day in Fiscal
Year 2003, the sum of (i) $225,000,000, plus (ii) the net proceeds
of any equity issuance in a capital raising transaction (including
in connection with the acquisition of any subsidiary, division or
otherwise) during such Fiscal Year; and
	 
	 	     (b) from the last day of Fiscal Year 2003 and at all times
during each Fiscal Year thereafter, an amount in any Fiscal Year
equal to the minimum amount required to be maintained during the
preceding Fiscal Year plus an amount equal to the sum of: (i) the
net proceeds of any equity issuance in a capital raising
transaction (including in connection with the acquisition of any
subsidiary, division or otherwise) during such Fiscal Year, plus
(ii) 25% of Pilgrim’s Pride’s Net Income (but not less than zero)
during such Fiscal Year.

		
	 	     (v) Fixed Charge Coverage Ratio. The Servicer (or if Pilgrim’s
Pride is not then the Servicer, Pilgrim’s Pride) will not permit, as of
the last day of each fiscal quarter of Pilgrim’s Pride, its Fixed Charge
Coverage Ratio, as calculated for the period equal to the eight
consecutive fiscal quarters of Pilgrim’s Pride then ended to be less than
1.30 to 1 on the last day of each fiscal quarter of Pilgrim’s Pride.”

     3.     Representations and Warranties. Each of the Seller and the Servicer
hereby represents and warrants to the Purchaser and the Agent that the
representations and warranties of such Person contained in Exhibit III to the
Agreement are true and correct as of the date hereof (unless stated to relate
solely to an earlier date, in which case such representations and warranties
were true and correct as of such earlier date), and that as of the date hereof,
no Termination Event or Unmatured Termination Event has occurred and is
continuing or will result from this Amendment.

     4. Effect of Amendment. All provisions of the Agreement, as expressly
amended and modified by this Amendment, shall remain in full force and effect
and are hereby ratified and confirmed in all respects. After this Amendment
becomes effective, all references in the Agreement (or in any other Transaction
Document) to “this Agreement”, “hereof”, “herein” or words of similar effect
referring to the Agreement shall be deemed to be references to the Agreement as
amended by this Amendment. This Amendment shall not be deemed, either
expressly or impliedly, to waive, amend or supplement any provision of the
Agreement other than as set forth herein.

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     5.     Effectiveness. This Amendment shall become effective as of the date
hereof upon receipt by the Agent of the following (each, in form and substance
satisfactory to the Administrator):

		
	 	     (a) Counterparts of this Amendment (whether by facsimile or
otherwise) executed by each of the parties hereto;
	 
	 	     (b) A fully executed copy of the Amended and Restated Fee Letter
dated as of the date hereof and signed by each of the parties thereto;
	 
	 	     (c) Written confirmation from each of the Rating Agencies that the
then current rating by such Rating Agency of the Notes of the Purchaser
will not be downgraded or withdrawn as a result of the effectiveness of
this Amendment and the transactions contemplated hereby; and
	 
	 	     (d) Such other documents, resolutions, certificates, agreements and
opinions as the Agent may reasonably request in connection herewith.

     6.     Counterparts. This Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which
when so executed shall be deemed to be an original and all of which when taken
together shall constitute but one and the same instrument.

     7.     Governing Law. This Amendment, including the rights and duties of the
parties hereto, shall be governed by, and construed in accordance with, the
laws of the State of Texas (without giving effect to the conflict of laws
principles thereof).

     8.     Section Headings. The various headings of this Amendment are included
for convenience only and shall not affect the meaning or interpretation of this
Amendment, the Agreement or any provision hereof or thereof.

(continued on following page)

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     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective officers thereunto duly authorized as of the date first
above written.

	 
	PILGRIM’S PRIDE FUNDING CORPORATION
	 
	By:    /s/ R. A Cogdill

Name:  Richard A. Cogdill

Title: Executive Vice President and

Chief Financial Officer
	 
	PILGRIM’S PRIDE CORPORATION
	 
	By:    /s/ R. A Cogdill

Name:  Richard A. Cogdill

Title: Executive Vice President and

Chief Financial Officer
	 
	FAIRWAY FINANCE CORPORATION, as Purchaser
	 
	By:    /s/ Jill A. Gordon

Name:  Jill A. Gordon

Title: Vice President
	 
	HARRIS NESBITT CORP., as Agent
	 
	By:    /s/ Peter E. Walsh

Name:  Peter E. Walsh

Title: Managing Director
	 
	By

Name:
	Title:
	 

S-1

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