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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001193125-08-120905.txt : 20080522
<SEC-HEADER>0001193125-08-120905.hdr.sgml : 20080522
<ACCEPTANCE-DATETIME>20080522164340
ACCESSION NUMBER:		0001193125-08-120905
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080516
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080522
DATE AS OF CHANGE:		20080522

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SMITHFIELD FOODS INC
		CENTRAL INDEX KEY:			0000091388
		STANDARD INDUSTRIAL CLASSIFICATION:	MEAT PACKING PLANTS [2011]
		IRS NUMBER:				520845861
		STATE OF INCORPORATION:			VA
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15321
		FILM NUMBER:		08855191

	BUSINESS ADDRESS:	
		STREET 1:		200 COMMERCE STREET
		STREET 2:		EXECUTIVE OFFICE BUILDING
		CITY:			SMITHFIELD
		STATE:			VA
		ZIP:			23430
		BUSINESS PHONE:		7573653000

	MAIL ADDRESS:	
		STREET 1:		200 COMMERCE STREET
		STREET 2:		EXECUTIVE OFFICE BUILDING
		CITY:			SMITHFIELD
		STATE:			VA
		ZIP:			23430

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LIBERTY EQUITIES CORP
		DATE OF NAME CHANGE:	19710221

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LIBERTY REAL ESTATE TRUST
		DATE OF NAME CHANGE:	19661113
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:3px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>Washington, DC 20549 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 8-K </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>CURRENT REPORT
</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Date of Report (Date of earliest event reported): May&nbsp;16, 2008 </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>SMITHFIELD FOODS, INC. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact name of registrant as specified in its charter)
</B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

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<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD></TR>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Virginia</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>1-15321</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>52-0845861</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or other jurisdiction</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>of incorporation)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Commission File Number)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(IRS Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="1"><B>Identification No.)</B></FONT></P></TD></TR>
</TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="48%"></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>200 Commerce Street</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>Smithfield, Virginia</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>23430</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of principal executive offices)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Registrant&#146;s telephone number, including area code: (757)&nbsp;365-3000 </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction A.2. below):
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;1.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Entry into a Material Definitive Agreement. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">The
information provided in Item&nbsp;2.03 is incorporated by reference herein. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;2.03</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. </B></FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">As of May&nbsp;16, 2008, Smithfield Foods, Inc. (the &#147;Company&#148;) and The Smithfield Packing Company, Incorporated (&#147;Smithfield Packing&#148;
and collectively with the Company, the &#147;Borrowers&#148;) executed a secured uncommitted line of credit agreement (the &#147;Short-Term Credit Agreement&#148;) with Citibank, N.A. (&#147;Citibank&#148;). In connection with the Short-Term Credit
Agreement, Smithfield Packing entered into a Security Agreement in favor of Citibank and a Deed of Trust, Assignment of Leases and Security Agreement (the &#147;Deed of Trust&#148;) as grantor for the benefit of Citibank. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Under the Short-Term Credit Agreement, Citibank may from time to time make advances to the Borrowers through November&nbsp;18, 2008 up to $150 million.
The proceeds of any advances under the Short-Term Credit Agreement are to be used solely for general corporate purposes. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the
Security Agreement and the Deed of Trust, the Short-Term Credit Agreement is secured by liens of the real property, and the equipment related thereto, known as Smithfield Packing&#146;s Tar Heel facility in Bladen County, North Carolina. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Under the Short-Term Credit Agreement, Citibank will consider the following two types of requests for advances by the Borrowers: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Eurodollar Rate Advances, which have an interest rate derived from a LIBOR based formula; and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Quoted Rate Advances, which have an interest rate quoted by the lender and agreed to by the Borrowers. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">The Short-Term Credit Agreement terminates on the earlier of: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">November&nbsp;18, 2008; or </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the date either party thereto provides written notice of termination (collectively, such date is referred to as the &#147;Termination Date&#148;).
</FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">The Company is required to repay principal amounts borrowed under the Short-Term Credit Agreement on the earliest to
occur of: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">demand; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the Termination Date; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">the last day of the interest period of such advance. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">The Borrowers may elect to prepay principal at any time. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">The Short-Term Credit Agreement also contains standard representations
and warranties and indemnification obligations by the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">On May&nbsp;20, 2008, the Company borrowed $100 million under the
Short-Term Credit Agreement under a Quoted Rate Advance at an approximate interest rate of 6.57%. The Company used the borrowings from the Short-Term Credit Agreement to pay down the Company&#146;s U.S. revolving credit facility. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">The Short-Term Credit Agreement is filed as Exhibit 10.1 to this report, the Security Agreement is filed as Exhibit 10.2 to this report and the Deed of
Trust is filed as Exhibit 10.3 to this report. </FONT>
</P>

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<FONT FACE="Times New Roman" SIZE="2">The foregoing summary description of such agreements and the transactions contemplated by them are qualified in their entirety by reference to the complete
text of such agreements. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Item&nbsp;9.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>Financial Statements and Exhibits. </B></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

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<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="9%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">(d)</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Uncommitted Line of Credit Agreement, dated as of May&nbsp;16, 2008, between Smithfield Foods, Inc., The Smithfield Packing Company, Incorporated and Citibank, N.A.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Security Agreement, dated as of May&nbsp;16, 2008, by and between The Smithfield Packing Company, Incorporated in favor of Citibank, N.A.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.3</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Deed of Trust, Assignment of Leases and Security Agreement, dated as of May&nbsp;16, 2008, by and among The Smithfield Packing Company, Incorporated, as grantor, to First American Title
Insurance Company, as trustee, for the benefit of Citibank, N.A., as beneficiary.</FONT></TD></TR>
</TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">SMITHFIELD FOODS, INC.</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Date: May&nbsp;22, 2008</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michael H. Cole</FONT></P></TD></TR>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Michael H. Cole</FONT></TD></TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Vice President, Chief Legal Officer and Secretary</FONT></TD></TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT INDEX </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:39pt"><FONT FACE="Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="1"><B>Description</B></FONT></P></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Uncommitted Line of Credit Agreement, dated as of May 16, 2008, between Smithfield Foods, Inc., The Smithfield Packing Company, Incorporated and Citibank, N.A.</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.2</FONT></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Security Agreement, dated as of May 16, 2008, by and between The Smithfield Packing Company, Incorporated in favor of Citibank, N.A.</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibit&nbsp;10.3</FONT></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Deed of Trust, Assignment of Leases and Security Agreement, dated as of May 16, 2008, by and among The Smithfield Packing Company, Incorporated, as grantor, to First American Title Insurance
Company, as trustee, for the benefit of Citibank, N.A., as beneficiary.</FONT></TD></TR>
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>dex101.htm
<DESCRIPTION>UNCOMMITTED LINE OF CREDIT AGREEMENT
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><U>UNCOMMITTED LINE OF CREDIT AGREEMENT </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Uncommitted Line of Credit Agreement (as amended or otherwise
modified from time to time, this &#147;<B>Agreement</B>&#148;), dated as of May&nbsp;16, 2008, is between Smithfield Foods, Inc. (&#147;<B>Smithfield</B>&#148;), The Smithfield Packing Company, Incorporated (&#147;<B>Smithfield Packing</B>&#148;,
and together with Smithfield, the &#147;<B>Borrowers</B>&#148;) and Citibank, N.A (the &#147;<B>Lender</B>&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Borrowers and the
Lender hereby agree as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>1. The Lender agrees to consider from time to time, from the Effective Date (as defined in
Section&nbsp;8) until November&nbsp;18, 2008 (such date, or the earlier termination of this Agreement pursuant to Section&nbsp;11, being the &#147;<B>Termination Date</B>&#148;), the Borrowers&#146; requests that the Lender make advances
(&#147;<B>Advances</B>&#148;) to them in an aggregate amount not to exceed (i)&nbsp;prior to the Title Policy Delivery Date (as defined below), $100,000,000 and (ii)&nbsp;from and after the Title Policy Delivery Date, $150,000,000, at any one time
outstanding. The proceeds of the Advances are to be used solely for general corporate purposes. <B>This letter is not a commitment to lend but rather sets forth the procedures to be used in connection with the Borrowers&#146; requests for the
Lender&#146;s making of Advances to it from time to time on or prior to the Termination Date and, if the Lender makes Advances to the Borrowers hereunder, the Borrowers&#146; obligations to the Lender with respect thereto. </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The term &#147;<B>Title Policy Delivery Date</B>&#148; means the date on which the Lender shall have received an original fully paid loan policy of title
insurance from a nationally recognized title insurance company reasonably satisfactory to the Lender insuring the lien of the Deed of Trust (as defined on <U>Schedule I</U> hereto) as a first priority mortgage lien on the real property described in
the Deed of Trust&nbsp;in an amount equal to $150,000,000, which policy shall contain no exceptions to title that would, in the reasonable opinion of the Lender, materially impair the value of such property, and which policy shall be in form and
substance reasonably satisfactory to the Lender. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. Each request by the Borrowers to the Lender for an Advance based on the Eurodollar
Rate (as defined in Section&nbsp;4) (a &#147;<B>Eurodollar Rate Advance</B>&#148;) will be given not later than 2:00 P.M. (New York City time) three Business Days (as defined below) prior to the date of such proposed Advance, and each request by the
Borrowers to the Lender for an Advance based on a Quoted Rate (as defined in Section&nbsp;4) (a &#147;<B>Quoted Rate Advance</B>&#148;) will be given not later than 11:00 A.M. (New York City time) on the date of such proposed Advance. Each request
will specify (i)&nbsp;the date on which the Borrowers wish the Advance to be made (which will be a day of the year on which banks are not required or authorized by law to close in New York City (&#147;<B>Business Day</B>&#148;)), (ii)&nbsp;the
amount they wish to borrow (which will be in the amount of $1,000,000 or an integral multiple thereof), (iii)&nbsp;the interest period (&#147;<B>Interest Period</B>&#148;) they wish to apply to such Advance, and (iv)&nbsp;whether such Advance will
be a Eurodollar Rate Advance or a Quoted Rate Advance. The duration of each Interest Period will be, with respect to Eurodollar Rate Advances, one, two or three months, and with respect to Quoted Rate Advances, a term requested by the Borrowers and
agreed to by the Lender, <U>provided</U> that (i)&nbsp;the Borrowers may not select any Interest Period that ends after the Termination Date; (ii)&nbsp;whenever the last day of an Interest Period would otherwise occur on a day other than a Business
Day, the last day of such Interest Period will be extended to occur on the next succeeding Business Day, <U>provided</U> that, in the case of a Eurodollar Rate Advance, if such extension would cause the last day of such Interest Period to occur in
the next following calendar month, the last day of such Interest Period will occur on the next preceding Business Day; and (iii)&nbsp;with respect to a Eurodollar Rate Advance, whenever the first day of any Interest Period occurs on a day of an
initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar </FONT></P>

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<FONT FACE="Times New Roman" SIZE="2">month by the number of months equal to the number of months in such Interest Period, such Interest Period will end on the last Business Day of such
succeeding calendar month. If the Lender agrees to make such Advance, it will make such funds available to the Borrowers in same day funds by crediting the account specified by the Borrowers prior to the making of such Advance. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. The Borrowers will repay the principal amount of each Advance on the earliest to occur of DEMAND, the last day of the Interest Period for such Advance
and the Termination Date, together with accrued interest thereon. The Borrowers may prepay any Advance made to them in whole or in part on any Business Day, <U>provided</U> that (i)&nbsp;the Borrowers have given the Lender at least three Business
Days&#146; irrevocable written notice of such prepayment (and on the date specified for such prepayment in such notice, the Borrowers will prepay the amount of the Advance to be prepaid, together with accrued interest thereon to the date of
prepayment and any other amounts payable by the Borrowers pursuant to Section&nbsp;15), and (ii)&nbsp;each partial prepayment will be in a principal amount of at least $1,000,000. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. The Borrowers will pay interest on the unpaid principal amount of each Advance made to them from the date of such Advance until such principal amount
is paid in full, in the case of a Eurodollar Rate Advance, at a rate equal to the Eurodollar Rate for the Interest Period for such Advance, and in the case of a Quoted Rate Advance, at a rate equal to the Quoted Rate for such Advance, in each case
payable in arrears on DEMAND, or if no demand has been made, on the last day of the Interest Period for such Advance. Any overdue amount of principal, interest or other amount payable hereunder will bear interest, payable on demand, at the Base Rate
(as defined below) <U>plus</U> 2%&nbsp;per annum. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B>Eurodollar Rate</B>&#148; means, for any Interest Period for any Eurodollar
Rate Advance, an interest rate per annum equal to the rate per annum obtained by dividing (i)&nbsp;the sum of (x)&nbsp;the rate per annum at which deposits in U.S. Dollars are offered by Citibank, N.A.&#146;s principal office in London, England to
prime banks in the London interbank market at 11:00 A.M. (London time) two Business Days before the first day of such Interest Period in an amount substantially equal to such Advance and for a period equal to such Interest Period, <U>plus</U>
(y)&nbsp;4.000%, by (ii)&nbsp;a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage (as defined below) for such Interest Period. &#147;<B>Eurodollar Rate Reserve Percentage</B>&#148; means, for any Interest Period for any
Eurodollar Rate Advance, the reserve percentage applicable two Business Days before the first day of such Interest Period under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including without limitation, any emergency, supplemental or other marginal reserve requirement) for a member bank of the Federal Reserve System in New York City with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities (having the meaning assigned to such term in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time) (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate on Eurodollar Rate Advances is determined) having a term equal to such Interest Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">&#147;<B>Quoted Rate</B>&#148; means, for any Quoted Rate Advance, a rate quoted by the Lender and agreed to by the Borrowers for such Advance. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B>Base Rate</B>&#148; means an interest rate per annum equal to the sum of (i)&nbsp;a fluctuating rate of interest announced publicly by Citibank,
N.A. in New York, New York from time to time as its base rate, <U>plus</U> (ii) 3.000%<B>.</B> </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. Promptly after the making of a Quoted Rate Advance, the Lender will send the Borrowers a written
confirmation of the Quoted Rate and Interest Period therefor. Unless the Borrowers object in writing to the information contained in such confirmation within three Business Days after the Lender&#146;s sending of such confirmation to the Borrowers,
the Borrowers will be deemed to have unconditionally agreed for all purposes to the correctness of such information. If the Borrowers so object to the Quoted Rate set forth in any such confirmation, such Quoted Rate Advance will be payable with
interest at the Base Rate rather than at the Quoted Rate so objected to. Any Quoted Rate Advance bearing interest at the Base Rate or payable on demand pursuant to this Section will continue to be an &#147;Advance&#148; for the purposes of this
Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. If, due to either (i)&nbsp;the introduction of or any change in or in the interpretation of any law or regulation or
(ii)&nbsp;the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there is any increase in the cost to the Lender of agreeing to make or making, funding or
maintaining Advances, then the Borrowers will from time to time, upon the Lender&#146;s demand, pay to the Lender additional amounts sufficient to compensate the Lender for such increased cost. In addition, if the Lender determines that compliance
with any law or regulation or any guideline or request from any central bank or other governmental authority (whether or not having the force of law) after the date hereof affects or would affect the amount of capital required or expected to be
maintained by the Lender or any corporation controlling the Lender and that the amount of such capital is increased by or based upon the existence of Advances hereunder, then, upon the Lender&#146;s demand, the Borrowers will immediately pay to the
Lender, from time to time as specified by the Lender, additional amounts sufficient to compensate the Lender or such corporation in the light of such circumstances, to the extent that the Lender reasonably determines such increase in capital to be
allocable to the existence of the Advances hereunder. A certificate as to such amounts submitted to the Borrowers by the Lender will be conclusive and binding for all purposes, absent manifest error. Notwithstanding any other provision of this
Agreement, if the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for the Lender to fund or maintain Advances made
hereunder, then, on notice thereof and demand therefor made by the Lender, each Advance will automatically, upon such demand, convert into an Advance accruing interest at the Base Rate. Any Advance accruing interest at the Base Rate will continue to
be an &#147;Advance&#148; for the purposes of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. The Borrowers will make each payment (whether in respect of principal,
interest or otherwise) payable by it hereunder, irrespective of any right of counterclaim or set-off, not later than 2:00 P.M. (New York City time) on the day when due in U.S. dollars to the Lender at 399 Park Avenue, New York, NY 10022 in same day
funds. All computations of interest will be made by the Lender on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is
payable. Each determination by the Lender of an interest rate hereunder will be conclusive and binding for all purposes, absent manifest error. Whenever any payment hereunder is stated to be due on a day other than a Business Day, such payment will
be made on the next succeeding Business Day, and such extension of time will in such case be included in the computation of payment of interest. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">8. This Agreement will become effective on and as of the date (the &#147;<B>Effective Date</B>&#148;) on which the Lender has received a counterpart of this Agreement duly executed by the Borrowers and the Lender. The Borrowers covenant to
deliver to the Lender the documents set forth on Schedule I attached hereto, each in form and substance satisfactory to the Lender, on or before the initial Advance. In addition, the Borrowers covenant to deliver to the Lender the title insurance
policy described in the definition of Title Policy Delivery Date in Section&nbsp;1 above on or before June&nbsp;30, 2008. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. Each request by the Borrowers for an Advance and the acceptance by the Borrowers of the proceeds of
such Advance will constitute a representation and warranty by the Borrowers that on the date of such Advance the representations and warranties contained in Section&nbsp;10 are correct on and as of the date of such Advance, before and after giving
effect to such Advance and to the application of the proceeds therefrom, as though made on and as of such date (other than any such representations or warranties that, by their terms, refer to a date other than the date of such Advance). In
addition, each Borrower agrees to deliver to the Lender such other documents and other information requested by the Lender in connection with an Advance requested by such Borrower. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">10. Each of the Borrowers represents and warrants as follows: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) It is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation.
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) The execution, delivery and performance by such Borrower of this Agreement, the Deed of Trust (as defined in
<U>Schedule I</U> hereto) and the Security Agreement (as defined in <U>Schedule I</U> hereto) (this Agreement, the Deed of Trust and the Security Agreement are collectively referred to as the &#147;<B>Loan Documents</B>&#148;) to which it is a
party, and the consummation of the transactions contemplated hereby, are within such Borrower&#146;s corporate powers and authority, have been duly authorized by all necessary corporate action, and do not contravene (i)&nbsp;its charter or by-laws
or (ii)&nbsp;any law or any contractual restriction binding on or affecting it. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) No authorization or approval or other
action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by such Borrower of the Loan Documents to which it is a party. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(d) Each Loan Document has been duly executed and delivered by each Borrower party thereto, and is such Borrower&#146;s legal, valid
and binding obligation enforceable against such Borrower in accordance with its terms. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(e) The consolidated balance sheet
of Smithfield and its subsidiaries as at January&nbsp;27, 2008, and the related consolidated statements of income and cash flow of Smithfield and its subsidiaries for the fiscal year then ended, fairly present the consolidated financial condition of
Smithfield and its subsidiaries as at such date and the consolidated results of operations of Smithfield and its subsidiaries for the period ended on such date, all in accordance with generally accepted accounting principles consistently applied.
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(f) Since January&nbsp;27, 2008, there has been no material adverse change in the business, operations, condition
(financial or otherwise) or prospects of Smithfield and its subsidiaries taken as a whole. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(g) There is no pending or
threatened action, suit, investigation, litigation or proceeding affecting Smithfield or its subsidiaries before any court, governmental agency or arbitrator that (i)&nbsp;could be reasonably likely to have a material adverse </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">effect on the business, operations, condition (financial or otherwise) or prospects of either Borrower and its subsidiaries taken as a whole, the
Lender&#146;s rights and remedies under any Loan Document, or the Borrowers&#146; ability to perform their obligations under any Loan Document to which they are party, or (ii)&nbsp;purports to affect the legality, validity or enforceability of any
Loan Document or the consummation of the transactions contemplated hereby. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(h) Neither of the Borrowers is an
&#147;investment company&#148;, or a company &#147;controlled&#148; by an &#147;investment company&#148;, within the meaning of the Investment Company Act of 1940, as amended. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(i) No report, financial statement, certificate or other information furnished (whether in writing or orally) by or on behalf of either
Borrower to the Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or
omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to any projected financial information, the Borrowers represent only
that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(j) No
proceeds of any Advance will be used to purchase or carry any margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System) or to extend credit to others for the purpose of purchasing or carrying
any margin stock. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11. This Agreement may be terminated by the Borrowers or the Lender by giving written notice of termination to the other
parties hereto, but no such termination will affect the Borrowers&#146; obligations with respect to Advances outstanding at the time of such termination. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">12. All notices and other communications provided for hereunder will be in writing (including
telecopier communication) and mailed, telecopied or delivered, if to Smithfield, at its address at Smithfield Foods, Inc., 200 Commerce Street, Smithfield, VA 23430, Attention: Carey Dubois, Chief Financial Officer; if to Smithfield Packing, at its
address at c/o Smithfield Foods, Inc., 111 Commerce Street, Smithfield, VA 23430, Attention: Carey Dubois, Chief Financial Officer; if to the Lender, at its address at Citibank, N.A., 388 Greenwich Street, 23</FONT><FONT FACE="Times New Roman"
SIZE="1"><SUP>rd</SUP></FONT><FONT FACE="Times New Roman" SIZE="2"> Floor, New York, NY 10013, Attention: Robert Kane, Global Consumer and Healthcare Department (Fax#: 212-816-8301); or, as to either party, at such other address as is designated by
such party in a written notice to the other party. All such notices and communications will, when mailed or telecopied, be effective three Business Days after deposit in the mails, or when telecopied, respectively, except that notices and
communications to the Lender pursuant to Sections 2, 3 or 11 will not be effective until received by the Lender. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">13. No failure on the
Lender&#146;s part to exercise, and no delay in exercising, any right hereunder will operate as a waiver thereof; nor will any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other
right. The remedies provided herein are cumulative and not exclusive of any remedies provided by law. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">14. (a)&nbsp;The Borrowers agree to
pay on demand all of the Lender&#146;s out-of-pocket costs and expenses (including without limitation, reasonable counsel fees and expenses) in connection with the preparation, execution, delivery, administration, modification, amendment and
enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) The Borrowers will indemnify and hold harmless the Lender, its affiliates and each of its and their
respective officers, directors, employees, agents, advisors and representatives (each, an &#147;<B>Indemnified Party</B>&#148;) from and against any and all claims, damages, losses, liabilities and expenses (including without limitation, fees and
disbursements of counsel), that may be incurred by or asserted or awarded against any Indemnified Party (including without limitation, in connection with any investigation, litigation or proceeding, or the preparation of a defense in connection
therewith), in each case arising out of or in connection with this Agreement, any of the transactions contemplated hereby or any actual or proposed use of the proceeds of the Advances, except to the extent such claim, damage, loss, liability or
expense is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted primarily from such Indemnified Party&#146;s gross negligence or willful misconduct. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section applies, such indemnity will be effective whether or not such investigation, litigation or proceeding is brought by any Borrower, any of its directors, security holders or creditors, an Indemnified
Party or any other person, or any Indemnified Party is otherwise a party thereto, and whether or not the transactions contemplated hereby are consummated. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">(c) No Indemnified Party will have any liability (whether in contract, tort or otherwise) to any Borrower or any of its security holders or creditors for or in connection with the transactions contemplated hereby,
except for direct damages (as opposed to special, indirect, consequential or punitive damages (including without limitation, any loss of profits, business or anticipated savings)) determined in a final non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party&#146;s gross negligence or willful misconduct. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">15. If the Borrowers make any
payment of principal of any Advance on any day other than the last day of the Interest Period applicable thereto (as a result of a prepayment, demand, conversion of the interest rate for any Advance to the Base Rate pursuant to Section&nbsp;5 or 6,
or otherwise), or if the Borrowers fail to borrow or prepay any Advance after the Borrowers have given the Lender notice thereof and, in the case of a borrowing, the Lender has agreed to make such Advance, the Borrowers will, upon demand by the
Lender, pay the Lender any amounts required to compensate the Lender for any losses, costs or expenses that the Lender may reasonably incur as a result of such payment or failure to borrow or prepay. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">16. This Agreement is binding upon and will inure to the benefit of the Borrowers, the Lender and their respective successors and assigns, except that
the Borrowers will not have the right to assign their rights or obligations hereunder or any interest herein without the Lender&#146;s prior written consent. The Lender may, with the written consent of the Borrowers (which consent will not be
unreasonably withheld), assign to one or more persons all or a portion of its rights and obligations under this Agreement, <U>provided</U> that the consent of the Borrowers will not be required in connection with an assignment to an affiliate of the
Lender. Notwithstanding any other provisions set forth in this Agreement, the Lender may at any time create a security interest in all or any portion of the Lender&#146;s rights under this Agreement in favor of any Federal Reserve Bank. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">17. This Agreement will be governed by, and construed in accordance with, the laws of the State of New York. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when so executed will be deemed to be an original and all of which taken together will constitute one and the same agreement. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">18. The Borrowers hereby irrevocably (i)&nbsp;submit to the non-exclusive jurisdiction of any New York
State or Federal court sitting in New York City in any action or proceeding arising out of or relating to this Agreement, (ii)&nbsp;agree that all claims in respect of such action or proceeding may be heard and determined in such New York State
court or in such Federal court, (iii)&nbsp;waive, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding, and (iv)&nbsp;irrevocably consent to the service of any and all
process in any such action or proceeding by the mailing of copies of such process to the Borrowers at their addresses specified in Section&nbsp;12. The Borrowers agree that a final judgment in any such action or proceeding will be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing herein will affect the Lender&#146;s right to serve legal process in any other manner permitted by law or affect the Lender&#146;s right to
bring any action or proceeding against any Borrower or its property in the courts of other jurisdictions. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">19. If a payment has not been
made by the Borrowers when due hereunder, the Lender and each of its affiliates is authorized at any time and from time to time, 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 and other obligations at any time owing by the Lender or any of its affiliates to or for any Borrower&#146;s credit or account against any and all of the Borrowers&#146; obligations now or hereafter existing
under this Agreement, irrespective of whether the Lender has made demand under this Agreement and although such obligations may be unmatured. The Lender&#146;s rights under this Section are in addition to other rights and remedies (including without
limitation, other rights of set-off) which the Lender may have. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">20. Each of the parties hereto hereby irrevocably waives all right to
trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement, the Advances or the Lender&#146;s actions in the negotiation, administration, performance or
enforcement hereof or thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">21. Each Borrower agrees that it is jointly and severally liable for all liabilities and obligations owed
to the Lender under this Agreement and the other Loan Documents. Each Borrower is liable for all amounts due to the Lender from any Borrower under this Agreement and the other Loan Documents regardless of which Borrower actually receives the
proceeds of any Advance made hereunder. Each Borrower agrees that if such Borrower&#146;s joint and several liability hereunder, or if the liens securing such joint and several liability, would, but for the application of this sentence, be
unenforceable under applicable law, such joint and several liability and each such lien shall be valid and enforceable to the maximum extent that would not cause such joint and several liability or such lien to be unenforceable under applicable law,
and such joint and several liability and such lien shall be deemed to have been automatically amended accordingly at all relevant times. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2"><I>[Remainder of Page Intentionally Left Blank; Signature Page Follows] </I></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF</B>, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>SMITHFIELD FOODS, INC.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Carey J. Dubois</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Carey J. Dubois</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">VP &amp; CFO</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>THE SMITHFIELD PACKING COMPANY, INCORPORATED</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Carey J. Dubois</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Carey J. Dubois</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>CITIBANK, N.A.</B></FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Robert J. Kane</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Robert J. Kane</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
</TABLE></DIV>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>Schedule I </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>Closing Documents </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">1.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Deed of Trust, Assignment of Leases and Security Agreement among Smithfield Packing, the Lender and First American Title Insurance Company, as Trustee (&#147;<B>Deed of
Trust</B>&#148;) </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">2.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Security Agreement from Smithfield Packing in favor of the Lender (the &#147;<B>Security Agreement</B>&#148;) </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">3.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certified copies of the resolutions of the Board of Directors of Smithfield approving this Agreement, and of all other documents evidencing necessary corporate action and
governmental and other third party approvals, if any, with respect to this Agreement </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">4.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certificate of the Secretary or Assistant Secretary of Smithfield certifying the names and true signatures of Smithfield&#146;s officers authorized to sign this Agreement and the
other documents to be delivered hereunder and to request Advances hereunder </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">5.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certified copies of the resolutions of the Board of Directors of Smithfield Packing approving this Agreement, the other Loan Documents and of all other documents evidencing
necessary corporate action and governmental and other third party approvals, if any, with respect to this Agreement and the other Loan Documents </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">6.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certificate of the Secretary or Assistant Secretary of Smithfield Packing certifying the names and true signatures of Smithfield&#146;s officers authorized to sign this Agreement,
the other Loan Documents and the other documents to be delivered hereunder and to request Advances hereunder </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">7.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Good Standing Certificate for Smithfield from the Secretary of State of the Commonwealth of Virginia </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">8.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Good Standing Certificate for Smithfield Packing from the Secretary of State of the State of Delaware </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">9.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Certificate of authority to transact business as a foreign corporation for the State of North Carolina for Smithfield Packing </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">10.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Searches of Uniform Commercial Code filings with the Secretary of State of the State of Delaware for Smithfield Packing </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">11.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Uniform Commercial Code financing statements for filing with the Secretary of State of the State of Delaware for Smithfield Packing </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">12.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Legal opinion of McGuire Woods LLP, North Carolina, New York and Virginia counsel to the Borrowers counsel. </FONT></TD></TR></TABLE>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>dex102.htm
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Security Agreement</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.2 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>SECURITY AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">THIS SECURITY AGREEMENT (this &#147;<B><U>Security Agreement</U></B>&#148;) is
entered into as of May&nbsp;16, 2008 by and between The Smithfield Packing Company, Incorporated, a Delaware corporation (the &#147;<B><U>Grantor</U></B>&#148;), in favor of CITIBANK, N.A. (the &#147;<B><U>Lender</U></B>&#148;). </FONT></P> <P
STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">PRELIMINARY STATEMENT </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Grantor,
Smithfield Foods, Inc. (&#147;<B><U>Smithfield</U></B>&#148;) and the Lender have entered into that certain Uncommitted Line of Credit Agreement of even date herewith (as the same may be amended, restated, supplemented or otherwise modified from
time to time, the &#147;<B><U>Credit Agreement</U></B>&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, subject to the terms set forth in this Security Agreement, the
Grantor has agreed to grant a security interest in the Collateral (as defined below) to the Lender, as security for the Secured Obligations (as defined below); and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">WHEREAS, the Lender has required, as a condition, among others, to the making of the initial Advance under the Credit Agreement, that the Grantor execute and deliver this Security Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE I </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">DEFINITIONS </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.1. <U>Terms Defined in Credit Agreement</U>. All capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Credit Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.2. <U>Terms Defined in New York UCC</U>. Terms
defined in the New York UCC which are not otherwise defined in this Security Agreement are used herein as defined in the New York UCC. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">1.3. <U>Definitions of Certain Terms Used Herein</U>. As used in this Security Agreement, in addition to the terms defined in the Preliminary Statement, the following terms shall have the following meanings: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Article</U></B>&#148; means a numbered article of this Security Agreement, unless another document is specifically referenced. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Borrowers</U></B>&#148; means the Grantor and Smithfield. </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Collateral</U></B>&#148; means all Equipment located at the Facility or used in connection
with the business operations and activities at the Facility, in which the Grantor now has or hereafter acquires any right or interest, and the proceeds, insurance proceeds and products thereof, together with all books and records, customer lists,
credit files, computer files, programs, printouts and other computer materials and records related thereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<B><U>Equipment</U></B>&#148; means all equipment, machinery, fixtures and vehicles. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Event of
Default</U></B>&#148; means a default by any Borrower in the payment, performance or observance of any term, covenant or condition contained in the Credit Agreement or any other Loan Document. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Exhibit</U></B>&#148; refers to a specific exhibit to this Security Agreement, unless another document is specifically referenced.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Facility</U></B>&#148; means the Grantor&#146;s manufacturing facility known as the Tar Heel Plant and located in Bladen
County, North Carolina. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>New York UCC</U></B>&#148; means the New York Uniform&nbsp;Commercial Code as in effect from time to
time<I>.</I> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Section</U></B>&#148; means a numbered section of this Security Agreement, unless another document is
specifically referenced. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<B><U>Secured Obligations</U></B>&#148; means all Advances to, and debts, liabilities, obligations,
covenants and duties of, the Borrowers arising under any Loan Document or otherwise with respect to any Advance now existing or hereafter arising. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE II
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">GRANT OF SECURITY INTEREST </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">2.1. <U>Grantor Pledge</U>. The Grantor hereby pledges, assigns and grants to the Lender, a security interest in all of such Grantor&#146;s right, title and interest, whether now owned or hereafter acquired, in and to the Collateral to
secure the prompt and complete payment and performance of the Secured Obligations. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE III </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">REPRESENTATIONS AND WARRANTIES </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Grantor
represents and warrants, that: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.1. <U>Title, Validity and Enforceability</U>. The Grantor has good and valid rights in or the power to
transfer the Collateral and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all liens except for liens </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">permitted under <U>Section&nbsp;4.1.6 </U>hereof, and has full corporate power and authority to grant to the Lender the security interest in the Collateral
pursuant hereto. The execution and delivery by the Grantor of this Security Agreement has been duly authorized by proper corporate proceedings, and this Security Agreement constitutes a legal, valid and binding obligation of the Grantor and creates
a security interest which is enforceable against the Grantor in all Collateral it now owns or hereafter acquires. When financing statements have been filed in the appropriate offices against Grantor in the locations listed on <U>Exhibit&nbsp;A</U>,
the Lender will have a fully perfected first priority security interest in the Collateral in which a security interest may be perfected by filing, subject only to liens permitted under <U>Section&nbsp;4.1.6</U> hereof. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.2. <U>Principal Location</U>. The Grantor&#146;s mailing address and the location of its place of business (if it has only one) or its chief executive
office (if it has more than one place of business), is disclosed in <U>Exhibit&nbsp;B</U>. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.3. <U>Property Locations</U>. The Collateral
(other than mobile goods) is located solely at the locations described in <U>Exhibit&nbsp;B</U> or is in transit to or from such locations, which locations are owned by the Grantor. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.4. <U>No Other Names</U>. Except for the name Gwaltney of Smithfield, Ltd., the Grantor has not conducted business under any name in the past five
(5)&nbsp;years except the name in which it has executed this Security Agreement, which is the exact name as it appears in the Grantor&#146;s organizational documents, as amended, as filed with the Grantor&#146;s jurisdiction of organization as of
the date hereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.5. <U>No Financing Statements</U>. No financing statement describing all or any portion of the Collateral which has not
lapsed or been terminated naming the Grantor as debtor has been filed in any jurisdiction where filing of a financing statement would be appropriate to perfect the liens of the Lender under the Loan Documents except financing statements naming the
Lender as the secured party. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.6. <U>Federal Employer Identification Number; Jurisdiction of Organization Number; Jurisdiction of
Organization</U>. The Grantor&#146;s federal employer identification number, jurisdiction of organization and type of organization and jurisdiction of organization number are listed on <U>Exhibit&nbsp;B</U>. </FONT></P> <P
STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE IV </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">COVENANTS </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">From the date of this Security Agreement and thereafter until this Security Agreement is terminated pursuant to the terms hereof, the Grantor agrees
that: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1. <U>General</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">4.1.1 <U>Inspection</U>. The Grantor will permit the Lender, upon reasonable prior notice, at any reasonable time and from time to time, (i)&nbsp;to inspect the Collateral, (ii)&nbsp;to examine and make copies of the
records of the Grantor relating to the </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%">
<FONT FACE="Times New Roman" SIZE="2">Collateral and (iii)&nbsp;to discuss the Collateral and the related records of the Grantor with, and to be advised as to the same by, the Grantor&#146;s
officers and employees. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1.2 <U>Taxes</U>. The Grantor will pay, before the same shall become delinquent, all taxes,
assessments and governmental charges and levies upon the Collateral, except those which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves have been set aside in accordance with generally
accepted accounting principles and with respect to which no lien has attached and become enforceable against the Grantor&#146;s other creditors. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">4.1.3 <U>Records and Reports; Notification</U>. The Grantor shall keep and maintain materially complete, accurate and proper books and records with respect to the Collateral and furnish to the Lender such reports
relating to the Collateral as the Lender shall from time to time reasonably request. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1.4 <I><U></U></I><U>Financing
Statements and Other Actions; Defense of Title<I></I></U><I></I>. The Grantor hereby authorizes the Lender to file, and if requested by the Lender will execute and deliver to the Lender, all financing statements describing the Collateral and other
documents and take such other actions as may from time to time reasonably be requested by the Lender in order to maintain a first priority perfected security interest in the Collateral. Such financing statements may describe the Collateral in the
same manner as described herein or may contain an indication or description of collateral that describes such property in any other manner as the Lender may determine, in its sole discretion, is necessary, advisable or prudent to ensure the
perfection of the security interest in the Collateral granted to the Lender herein. The Grantor will take any and all actions reasonably necessary to defend title to the Collateral owned by the Grantor against all persons and to defend the security
interest of the Lender in such Collateral and the priority thereof against any lien not expressly permitted hereunder or by the Loan Documents. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">4.1.5 <U>Disposition of Collateral</U>. Grantor will not sell, lease or otherwise dispose of the Collateral owned by the Grantor except for the disposition in the ordinary course of business of Equipment that becomes
obsolete or worn out so long as the same is replaced in the ordinary course of the Grantor&#146;s business, unless in the Grantor&#146;s reasonable business judgment such equipment does not need to be replaced. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1.6 <U>Liens</U>. The Grantor will not create, incur, or suffer to exist any lien on the Collateral except the following liens
(<U>provided</U>, that nothing herein shall be deemed to constitute an agreement to subordinate any of the liens of the Lender under the Loan Documents to any liens otherwise permitted under this <U>Section&nbsp;4.1.6)</U>: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">liens for taxes, assessments and governmental charges or levies not yet delinquent or which are being contested in good faith by appropriate proceedings; provided that adequate
reserves with respect thereto are maintained on the books of the Grantor in conformity with generally accepted accounting principles; and </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


<p Style='page-break-before:always'>
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">liens imposed by law, such as materialmen&#146;s, mechanics&#146;, carriers&#146;, workmen&#146;s and repairmen&#146;s liens and other similar liens arising in the ordinary course
of business securing obligations (other than indebtedness for borrowed money) that are not overdue for a period of more than&nbsp;60&nbsp;days. </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1.7 <U>Change in Corporate Existence, Type or Jurisdiction of Organization, Location, Name</U>. The Grantor will: </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">preserve its existence and corporate structure as in effect on the date hereof; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">not change its jurisdiction of organization; </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">not maintain its place of business (if it has only one) or its chief executive office (if it has more than one place of business) at a location other than a location specified on
<U>Exhibit&nbsp;B</U>; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iv)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">not (a)&nbsp;have any Collateral (other than mobile goods and unless in transit) at a location other than a location specified in <U>Exhibit B</U>, (b)&nbsp;change its name or
taxpayer identification number or (c)&nbsp;change its mailing address, </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">unless, in each such case, the Grantor shall have
given the Lender written notice of such event within 20 days after such occurrence or event. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1.8 <U>Other Financing
Statements</U>. The Grantor will not suffer to exist or authorize the filing of any financing statement naming it as debtor covering all or any portion of the Collateral, except any financing statement authorized under <U>Section&nbsp;4.1.4</U>
hereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.2. <U>Equipment</U>. The Grantor will do all things reasonably necessary to maintain, preserve, protect and keep the Equipment
in good repair, working order and condition (ordinary wear and tear excepted) and make all reasonably necessary and proper repairs, renewals and replacements so that its business carried on in connection therewith may be properly conducted at all
times. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE V </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">DEFAULT </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.1. <U>Acceleration and Remedies</U>. Upon the occurrence and during the continuance of an Event
of Default, the Lender may exercise any or all of the following rights and remedies: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.1.1 <U>Security Agreement
Remedies</U>. Those rights and remedies provided in this Security Agreement, or any other Loan Document; <U>provided</U> that this <U>Section&nbsp;5.1.1</U> shall not be understood to limit any rights or remedies available to the Lender prior to an
Event of Default. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.1.2 <U>New York UCC Remedies</U>. Those rights and remedies available to a secured party under the New
York UCC or under any other applicable law (including, without limitation, any law governing the exercise of a bank&#146;s right of setoff or bankers&#146; lien) when a debtor is in default under a security agreement. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.1.3 <U>Disposition</U>. Without notice except as specifically provided in <U>Section&nbsp;8.1</U> hereof or elsewhere herein, sell,
lease, assign, grant an option or options to purchase or otherwise dispose of the Collateral or any part thereof in one or more parcels at public or private sale, for cash, on credit or for future delivery, and upon such other terms as the Lender
may deem commercially reasonable. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Lender may comply with any applicable state or federal law requirements in connection with a disposition of the
Collateral, and such compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral. Notwithstanding the foregoing, the Lender shall not be required to (i)&nbsp;make any demand upon, or pursue or
exhaust any of its rights or remedies against, the Grantor, any other obligor, guarantor, pledgor or any other person with respect to the payment of the Secured Obligations or to pursue or exhaust any of their rights or remedies with respect to any
of the Collateral therefor or any direct or indirect guarantee thereof, (ii)&nbsp;marshal the Collateral or any guarantee of the Secured Obligations or to resort to the Collateral or any such guarantee in any particular order or (iii)&nbsp;effect a
public sale of any of the Collateral. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.2. <U>Grantor&#146;s Obligations Upon Event of Default</U>. Upon the request of the Lender after
the occurrence and during the continuance of an Event of Default, the Grantor will: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.2.1 <U>Assembly of Collateral</U>.
Assemble and make available to the Lender the Collateral and all records relating thereto at any place or places reasonably specified by the Lender. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">5.2.2 <U>Lender Access</U>. Permit the Lender, Lender&#146;s representatives and agents, to enter any premises where all or any part of the Collateral, or the books and records relating thereto, or both, are located,
to take possession of all or any part of the Collateral and to remove all or any part of the Collateral. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE VI </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">WAIVERS, AMENDMENTS AND REMEDIES </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">No delay or omission of the Lender to exercise any right or remedy
granted under this Security Agreement shall impair such right or remedy or be construed to be a waiver of any Event of Default or an acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other or
further exercise thereof or the exercise of any other right or remedy. No waiver, amendment or other variation of the terms, conditions or provisions of this Security Agreement whatsoever shall be valid unless in writing signed by the Lender with
the concurrence or at the direction of the Grantor, and then only to the extent in such writing specifically set forth. All rights and remedies contained in this Security Agreement or by law afforded shall be cumulative and all shall be available to
the Lender until the Secured Obligations have been paid in full. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE VII </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">PROCEEDS; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7.1. <U>Application of Proceeds</U>. The proceeds of the Collateral shall
be applied by the Lender to payment of the Secured Obligations in the following order. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(i)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><U>first</U>, to the Lender for payment of the costs and expenses of exercising the rights and remedies with respect to the Collateral to realize such proceeds (including, without
limitation, the reasonable fees, charges and disbursements of counsel with respect thereto); </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(ii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><U>second</U>, to the Lender in payment of the Secured Obligations; and </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(iii)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><U>third</U>, to the extent all Secured Obligations have been paid in full and the Credit Agreement has been terminated, to the Grantor or to its order or to whomever may be
lawfully entitled to receive the balance, if any, of such proceeds. </FONT></TD></TR></TABLE> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE VIII </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">GENERAL PROVISIONS </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.1. <U>Notice of
Disposition of Collateral; Condition of Collateral</U>. The Grantor hereby waives notice of the time and place of any public sale or the time after which any private sale or other disposition of all or any part of the Collateral may be made. To the
extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to the Grantor, addressed as set forth in <U>Article&nbsp;IX</U>, at least ten (10)&nbsp;days prior to (i)&nbsp;the date of any such public
sale or (ii)&nbsp;the time after which any such private sale or other disposition may be made. The Lender shall have no obligation to clean-up or otherwise prepare the Collateral for sale. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.2. <U>Authorization for Lender to Take Certain Action</U>. The Grantor irrevocably authorizes the Lender at any time and from time to time in the sole
discretion of the Lender and appoints the Lender as its attorney in fact (i)&nbsp;to execute on behalf of the Grantor as debtor and to file financing statements necessary or desirable in the Lender&#146;s sole discretion to perfect and to maintain
the perfection </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">and priority of the Lender&#146;s security interest in the Collateral, (ii)&nbsp;to endorse and collect any cash proceeds of the Collateral, (iii)&nbsp;to
file a carbon, photographic or other reproduction of this Security Agreement or any financing statement with respect to the Collateral as a financing statement and to file any other financing statement or amendment of a financing statement&nbsp;in
such offices as the Lender in its sole discretion deems reasonably necessary or desirable to perfect and to maintain the perfection and priority of the Lender&#146;s security interest in the Collateral, (iv)&nbsp;to apply the proceeds of any
Collateral received by the Lender to the Secured Obligations as provided in <U>Article&nbsp;VII</U> and (v)&nbsp;to discharge delinquent taxes, assessments, charges, fees or liens on the Collateral (except for such liens as are specifically
permitted hereunder), and the Grantor agrees to reimburse the Lender on demand for any reasonable payment made or any reasonable expense incurred by the Lender in connection therewith; <U>provided</U> that this authorization shall not relieve the
Grantor of any of its obligations under this Security Agreement or under the Credit Agreement. The Lender agrees not to exercise the powers of attorney granted pursuant to the foregoing <U>clauses&nbsp;(ii) </U>and <U>(iv)</U>&nbsp;unless an Event
of Default has occurred and is continuing. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.3. <U>Specific Performance of Certain Covenants</U>. The Grantor acknowledges and agrees that
a breach of any of the covenants contained in <U>Sections&nbsp;4.1.5</U>, or <U>4.1.6 </U>hereof will cause irreparable injury to the Lender, that the Lender has no adequate remedy at law in respect of such breaches and therefore agrees, without
limiting the right of the Lender to seek and obtain specific performance of other obligations of the Grantor contained in this Security Agreement, that the covenants of the Grantor contained in the Sections referred to in this
<U>Section&nbsp;8.3</U> shall be specifically enforceable against the Grantor. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.4. <U>Use and Possession of Certain Premises</U>. Upon
the occurrence and during the continuance of an Event of Default, the Lender shall be entitled to occupy and use any premises owned or leased by the Grantor where any of Collateral or any records relating to the Collateral are located until the
Secured Obligations are paid or the Collateral is removed therefrom, whichever first occurs, without any obligation to pay the Grantor for such use and occupancy. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">8.5. <U>Dispositions Not Authorized</U>. The Grantor is not authorized to sell or otherwise dispose of the Collateral except as set forth in <U>Section&nbsp;4.1.5</U> hereof and notwithstanding any course of dealing
between the Grantor and the Lender or other conduct of the Lender, no authorization to sell or otherwise dispose of the Collateral (except as set forth in <U>Section&nbsp;4.1.5</U> hereof) shall be binding upon the Lender unless such authorization
is in writing signed by the Lender. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.6. <U>Benefit of Agreement</U>. The terms and provisions of this Security Agreement shall be binding
upon and inure to the benefit of the Grantor, the Lender and their respective successors and assigns (including all persons who become bound as a debtor to this Security Agreement), except that the Grantor shall not have the right to assign its
rights or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the Lender. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">8 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.7. <U>Survival of Representations</U>. All representations and warranties of the Grantor contained in
this Security Agreement shall survive the execution and delivery of this Security Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.8. <U>Taxes and Expenses</U>. Any taxes
(including income taxes) payable or ruled payable by Federal or State authority in respect of this Security Agreement shall be paid by the Grantor, together with interest and penalties, if any. The Grantor shall reimburse the Lender for any and all
reasonable, documented out-of-pocket expenses and internal charges (including reasonable attorneys&#146;, auditors&#146; and accountants&#146; fees) paid or incurred by the Lender in connection with the preparation, execution, delivery,
administration, collection and enforcement of this Security Agreement and in the analysis, administration, collection, preservation or sale of the Collateral (including the expenses associated with any audit of the Collateral after the occurrence
and during the continuance of an Event of Default). Any and all out-of-pocket costs and expenses incurred by the Grantor in the performance of actions required pursuant to the terms hereof shall be borne solely by the Grantor. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.9. <U>Headings</U>. The title of and section headings in this Security Agreement are for convenience of reference only, and shall not govern the
interpretation of any of the terms and provisions of this Security Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.10. <U>Termination</U>. This Security Agreement shall
continue in effect (notwithstanding the fact that from time to time there may be no Secured Obligations outstanding) until (a)&nbsp;the Credit Agreement has terminated pursuant to its express terms and (b)&nbsp;all of the Secured Obligations have
been indefeasibly paid in full in cash. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.11. <U>Entire Agreement</U>. This Security Agreement embodies the entire agreement and
understanding between the Grantor and the Lender relating to the Collateral and supersedes all prior agreements and understandings among the Grantor and the Lender relating to the Collateral. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.12. <U>Governing Law; Jurisdiction; Waiver of Jury Trial</U>. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.12.1 <B><U>GOVERNING LAW</U>. THIS SECURITY AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW
YORK.</B> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.12.2 <U>Submission to Jurisdiction</U>. The Grantor hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Security Agreement, or for recognition or enforcement of any judgment, and the Grantor hereby irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. The Grantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Security Agreement or any </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">9 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%">
<FONT FACE="Times New Roman" SIZE="2">other Loan Document shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Security Agreement or any
other Loan Document against the Grantor or its properties in the courts of any jurisdiction. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.12.3 <U>Waiver of
Inconvenient Forum</U>. The Grantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Security Agreement in any court referred to in <U>Section&nbsp;8.12.2</U>. The Grantor hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.12.4 <U>Consent to Service of Process</U>. Each party to this Security
Agreement irrevocably consents to service of process in the manner provided for notices in <U>Article&nbsp;IX</U> of this Security Agreement. Nothing in this Security Agreement or any other Loan Document will affect the right of any party to this
Security Agreement to serve process in any other manner permitted by law. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.12.5 <B><U>WAIVER OF JURY TRIAL</U>. THE
GRANTOR HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). THE GRANTOR (A)&nbsp;CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER GRANTOR HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT IT WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B)&nbsp;ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS SECURITY AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.</B> </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.13. <U>Indemnity</U>. The Grantor hereby agrees to indemnify the Lender, and its successors, assigns, agents and employees, from and against any and
all liabilities, damages, penalties, suits, costs, and expenses of any kind and nature (including, without limitation, all expenses of litigation or preparation therefor whether or not the Lender is a party thereto) imposed on, incurred by or
asserted against the Lender, or their respective successors, assigns, agents and employees, in any way relating to or arising out of this Security Agreement or any other Loan Document, or the manufacture, purchase, acceptance, rejection, ownership,
delivery, lease, possession, use, operation, condition, sale, return or other disposition of any Collateral (including, without limitation, latent and other defects, whether or not discoverable by the Lender or the Grantor) other than to the extent
such liabilities, damages, penalties, suits, costs, and expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of any such indemnified party.
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">10 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.14. <U>Severability</U>. Any provision in this Security Agreement that is held to be inoperative,
unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision
in any other jurisdiction, and to this end the provisions of this Security Agreement are declared to be severable. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.15.
<U>Counterparts</U>. This Security Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single
contract. Delivery of an executed counterpart of a signature page of this Security Agreement by telecopy or electronic transmission shall be effective as delivery of a manually executed counterpart of this Security Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.16. <U>Construction with Credit Agreement</U>. In the event of a conflict between the terms of this Security Agreement and the terms and conditions of
the Credit Agreement, the terms of the Credit Agreement shall control. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE IX </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">NOTICES </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">All notices, requests and other communications to any party hereunder shall
be given in the manner prescribed in <U>Section&nbsp;12 </U>of the Credit Agreement at its notice addresses therein or such other address or telecopy number as such party may hereafter specify for such purpose in accordance with the provisions of
<U>Section&nbsp;12</U> of the Credit Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>[</B>SIGNATURE PAGES TO FOLLOW<B>]</B> </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">11 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, the Grantor and the Lender have executed this Security Agreement as of the date first
above written. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">THE SMITHFIELD PACKING COMPANY, INCORPORATED</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Carey J. Dubois</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Carey J. Dubois</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Signature Page to </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Security Agreement </FONT></P>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Acknowledged and Agreed to as of the date first written above: </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="13%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="86%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">CITIBANK, N.A.</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Robert J. Kane</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Robert J. Kane</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Signature Page to </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">Security Agreement </FONT></P>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>EXHIBIT A </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">UCC FINANCING STATEMENT&nbsp;FILING LOCATIONS </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="48%"></TD></TR>
<TR>
<TD VALIGN="bottom" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="1"><B>Debtor</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Jurisdiction</B></FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">The Smithfield Packing Company, Incorporated</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Delaware</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">EXHIBIT A </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>EXHIBIT&nbsp;B </U></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; padding-bottom:3px; margin-top:-2px" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"> <P STYLE="line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">A.</FONT></P></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE="line-height:95%; vertical-align:top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">LEGAL NAME AND PRINCIPAL PLACE OF BUSINESS</FONT><FONT FACE="Times New Roman"
SIZE="1"><SUP></SUP><SUP>1</SUP><SUP></SUP></FONT><FONT FACE="Times New Roman" SIZE="2"> </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">The Smithfield Packing Company,
Incorporated </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">111 Commerce Street </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman"
SIZE="2">Smithfield, VA 23430 </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">B.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">FEDERAL EMPLOYER NUMBER; JURISDICTION OF ORGANIZATION NUMBER AND JURISDICTION OF ORGANIZATION </FONT></TD></TR></TABLE> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Federal Employer Number: 54-1177500 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman"
SIZE="2">Organization Number: 0922251 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Jurisdiction of Organization: Delaware </FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">C.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">COLLATERAL LOCATION </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">15855 Highway 87 West </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Tar Heel, Bladen County, North Carolina </FONT></P> <P
STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>1</SUP></FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Principal place of business (if the Grantor has only one place of business) or chief executive office (if the Grantor has more than one place of business) and mailing address.
</FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">EXHIBIT B </FONT></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>dex103.htm
<DESCRIPTION>DEED OF TRUST, ASSIGNMENT OF LEASES AND SECURITY AGREEMENT
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.3 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Drawn By and Mail To: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Chadbourne&nbsp;&amp; Parke LLP, </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">30 Rockefeller Plaza, </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">New York, New York 10112 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><U>Attention</U>: Vincent Dunn, Esq. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">DEED OF TRUST, ASSIGNMENT OF LEASES </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">AND SECURITY AGREEMENT </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">by and among </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">THE SMITHFIELD PACKING COMPANY, INCORPORATED </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2">having a mailing address of </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">c/o Smithfield Foods, Inc., 111 Commerce Street, Smithfield, Virginia 23430, </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Attn: Carey Dubois, Chief Financial Officer, </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2">as Grantor, </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">to </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">FIRST
AMERICAN TITLE INSURANCE COMPANY], </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">having a mailing address of </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">1932 Fleming Road, Greensboro, North Carolina 27410, </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">as Trustee </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">for the benefit of </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">CITIBANK, N.A.,
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">having a mailing address of </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">388
Greenwich Street, 23rd Floor, New York, New York 10013, </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Attn: Robert Kane, Global Consumer and Healthcare Department, </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">as Beneficiary </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">THIS INSTRUMENT IS A FIXTURE FILING. THE COLLATERAL IS OR
INCLUDES FIXTURES. THIS INSTRUMENT IS TO BE FILED AND INDEXED IN THE REAL ESTATE RECORDS. THIS INSTRUMENT IS ALSO TO BE INDEXED IN THE INDEX OF FINANCING STATEMENTS AS A FIXTURE FILING IN ACCORDANCE WITH THE UNIFORM COMMERCIAL </FONT>
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<FONT FACE="Times New Roman" SIZE="2">CODE, INCLUDING SECTION 9-502, AS ADOPTED IN NORTH CAROLINA. THE NAMES OF THE DEBTOR AND THE SECURED PARTY, THE MAILING ADDRESS OF THE SECURED PARTY FROM
WHICH INFORMATION CONCERNING THE SECURITY INTEREST MAY BE OBTAINED, THE MAILING ADDRESS OF THE DEBTOR AND A STATEMENT INDICATING THE TYPES, OR DESCRIBING THE ITEMS OF COLLATERAL, ARE AS DESCRIBED IN SECTION 5.03 HEREOF IN COMPLIANCE WITH THE
REQUIREMENTS OF SECTION 9-502 OF THE UNIFORM COMMERCIAL CODE AS ADOPTED IN NORTH CAROLINA. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">THIS INSTRUMENT SECURES FUTURE ADVANCES FOR COMMERCIAL
PURPOSES. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">NOTE: INTEREST OR DISCOUNT MAY BE DEFERRED, ACCRUED OR CAPITALIZED BUT ONLY AT THE OPTION OF PARTICIPANTS. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>DEED OF TRUST, ASSIGNMENT OF LEASES </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AND SECURITY AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND SECURITY
AGREEMENT (hereinafter referred to as this &#147;<U>Instrument</U>&#148;) is made and entered into as of the 16th day of May, 2008 by and between THE SMITHFIELD PACKING COMPANY, INCORPORATED, whose address is c/o Smithfield Foods, Inc., 111 Commerce
Street, Smithfield, Virginia 23430, Attn: Carey Dubois, Chief Financial Officer, party of the first part, as grantor (hereinafter referred to as &#147;<U>Grantor</U>&#148;), to FIRST AMERICAN TITLE INSURANCE COMPANY whose address is 1932 Fleming
Road, Greensboro, North Carolina 27410 as trustee (hereinafter referred to as &#145;&#145;<U>Trustee</U>&#148;), party of the second part, for the benefit of CITIBANK, N.A., whose address is 388 Greenwich Street, 23rd Floor, New York, New York
10013, Attn: Robert Kane, Global Consumer and Healthcare, party of the third part, as beneficiary (hereafter referred to as &#147;<U>Beneficiary</U>&#148;); </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><U>RECITALS </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">A. On even date herewith Grantor, Smithfield Foods, Inc. (&#147;<U>Smithfield</U>&#148;)
and Beneficiary are executing an Uncommitted Line of Credit Agreement dated as of the date hereof (such agreement, as may from time to time be amended or supplemented, hereinafter referred to as the &#147;<U>Credit Agreement</U>&#148;), pursuant to
which, upon the terms and conditions stated therein, Beneficiary agreed to make advances to Grantor and Smithfield. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">B. Grantor, Smithfield
and Beneficiary have conditioned their respective obligations under the Credit Agreement upon the execution and delivery by Grantor of this Instrument and Grantor has agreed to enter into this Instrument. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">C. Therefore, in order to comply with the terms and conditions of the Credit Agreement, to induce Beneficiary to make advances to Grantor and Smithfield
under the Credit Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby agrees as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">ARTICLE I </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Definitions </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">Section&nbsp;1.01 <U>Terms Defined Above or in the Credit Agreement</U>. All capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;1.02 <U>Certain Definitions</U>. As used in this Instrument, the following terms shall have
the following meanings, unless the context otherwise requires: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Contracts</U>&#148; shall have the meaning assigned such term in
Article II. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Default Rate</U>&#148; shall mean a rate per annum equal to the Base Rate plus 2%. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Facility</U>&#148; shall have the meaning assigned such term in Article II. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Lease</U>&#148; shall mean all of Grantor's interest in and to, any lease agreement or similar agreement providing a right to any other Person
to use, lease, license, possess, operate from, reside in or otherwise enjoy the Mortgaged Property, now in effect or hereafter entered into, any and all Rents arising therefrom, and all amendments and renewals thereof now or hereafter entered into.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Mortgaged Property</U>&#148; shall have the meaning assigned such term in Article II. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Obligations</U>&#148; shall mean: (i)&nbsp;all of the outstanding aggregate amount of the Advances made to Grantor under the Credit Agreement,
including without limitation, and any and all renewals, extensions for any period, rearrangements or enlargements thereof; (ii)&nbsp;the performance of all obligations and agreements of Grantor to Beneficiary and Trustee under the Operative
Documents; and (iii)&nbsp;all interest (pre-petition or post-petition), taxes, indemnities, losses, compensation, reimbursement, charges, expenses, attorneys' or other fees and any other sums payable to or incurred by either Trustee or Beneficiary
in connection with the execution, administration or enforcement of their rights and remedies hereunder or any other Operative Documents. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<U>Operative Documents</U>&#148; shall mean the Credit Agreement, the Security Agreement, this Instrument and each other document or instrument used to pledge or grant, or purport to pledge or grant a security interest or lien on any
property of Grantor or any other Person to secure the Obligations, and each other certificate, agreement or document executed by Grantor and delivered to Beneficiary or Trustee in connection with or pursuant to any of the foregoing. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Permitted Liens</U>&#148; shall have the meaning assigned to such term in Section&nbsp;3.01(a). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Person</U>&#148; shall mean an individual, partnership, limited liability company, corporation (including a business trust), a joint stock
company, estate, trust, unincorporated association, joint venture or other entity, or any governmental authority. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Rents</U>&#148; shall mean all of the rents, revenues, income, proceeds, profits, security and
other types of deposits, and other benefits paid or payable by parties to any Lease (other than Grantor) for using, leasing, licensing, possessing, operating from, residing in or otherwise enjoying the Mortgaged Property. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Security Agreement</U>&#148; shall mean the Security Agreement dated as of the date hereof between Grantor and Beneficiary. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Site</U>&#148; shall mean the real property located in Bladen County, North Carolina together with all rights appurtenant to such real property,
all as described in greater detail in <U>Exhibit &#147;A&#148;</U> attached hereto and by this reference incorporated herein. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE II
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Granting Clauses </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">In order to
secure the payment and performance of the Obligations and any other obligations of Grantor hereinafter set forth, Grantor does hereby irrevocably bargain, sell, give, grant and convey unto Trustee and Trustee&#146;s successors and assigns in trust,
with power of sale, under and subject to the terms hereof, for the benefit of Beneficiary, all of Grantor's interest and estate, whether now owned or hereafter acquired (whether fee, leasehold, legal or equitable) and whether the same now exist or
hereafter come into existence (hereinafter collectively referred to as the &#147;<U>Mortgaged Property</U>&#148;): </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) Grantor&#146;s
undivided fee simple estate and all the tracts or parcels of real property lying and being in the County of Bladen, State of North Carolina as more particularly described in <U>Exhibit &#147;A&#148;</U> attached hereto and by this reference
incorporated herein; and </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) All buildings, structures and improvements of every nature whatsoever now or hereafter situated on the Site,
and all gas and electric fixtures, radiators, heaters, engines and machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures, carpeting and other floor coverings, washers, dryers, water heaters, mirrors, mantels, air
conditioning apparatus, refrigerating plants, refrigerators, cooking apparatus and appurtenances, window screens, awnings and storm sashes, which are or shall be attached to said buildings, structures or improvements and all other furnishings,
furniture, fixtures, machinery, equipment, appliances, vehicles and personal property of every kind and nature whatsoever now or hereafter owned by Grantor and located in, on or about, or used or intended to be used with or in connection with the
use, operation or enjoyment of the Mortgaged Property, including all extensions, additions, improvements, betterments, renewals and replacements of any of the foregoing and all the right, title and interest of Grantor in any such furnishings,
furniture, fixtures, machinery, equipment, appliances, vehicles and personal property subject to or covered by </FONT>
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<FONT FACE="Times New Roman" SIZE="2">any prior security agreement, conditional sales contract, chattel mortgage or similar lien or claim, together with the benefit of any deposits or payments
now or hereafter made by Grantor or on behalf of Grantor, all trade-names, trademarks, servicemarks, logos and goodwill related thereto which in any way now or hereafter belong, relate or appertain to the Mortgaged Property or any part thereof or
are now or hereafter acquired by Grantor (excluding trademarks or tradenames which appertain to the operation of Grantor's business rather than the operation of the Facility); and all insurance and other proceeds of any of the property described
hereinabove, all of which are hereby declared and shall be deemed to be fixtures and accessions to the freehold and a part of the Mortgaged Property as between the parties hereto and all persons claiming by, through or under them, and which shall be
deemed to be a portion of the security for the Obligations and to be secured by this Instrument. The location of the above described collateral is also the location of the Site. The property described in this subsection (b)&nbsp;is herein referred
to collectively as the &#147;<U>Improvements</U>&#148;; the Improvements and the Grantor&#146;s estate in the Site are herein collectively referred to as the &#147;<U>Facility</U>&#148;; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) All of Grantor&#146;s right, title and interest, under, in and to the Leases and all contracts, franchises, licenses, agreements, permits and other
documents, together with any additions or changes to and any extensions, revisions or modifications of all such contracts, franchises, licenses, agreements, permits and other documents (collectively, the &#147;<U>Contracts</U>&#148;), whether now
existing or hereafter entered into in relating to the development, ownership, maintenance and operation of the Facility and all proceeds of any of the property described hereinabove, including, without limitation, all insurance proceeds; and
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) All easements, rights-of-way, strips and gores of land, vaults, streets, ways, alleys, passages, sewer rights, waters, water courses,
water rights and powers, and all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments and appurtenances whatsoever, in any way belonging, relating or appertaining to the Mortgaged Property or any part thereof, or which
hereafter shall in any way belong, relate or be appurtenant thereto, whether now owned or hereafter acquired by Grantor and the reversion and reversions, remainder and remainders, of the Mortgaged Property from time to time accruing. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">TO HAVE AND TO HOLD FOREVER the Mortgaged Property and all parts, rights, members and appurtenances thereof, to Trustee and the heirs, successors and
assigns of Trustee, upon the trusts, terms and conditions and for the uses hereinafter set forth, and Grantor covenants that Grantor is lawfully seized and possessed of the Mortgaged Property as aforesaid, and has good right to convey the same, that
the same is unencumbered except for Permitted Liens, and that Grantor does warrant and will forever defend the title thereto against the claims of all persons whomsoever, except as to Permitted Liens. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">This conveyance is intended to operate and is to be construed as a deed of trust under the laws of the
State of North Carolina relating to deeds of trust, and not as a mortgage, and is given to secure the payment and performance by Grantor and Smithfield of their respective Obligations under the Operative Documents, including without limitation the
following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(i) The debt evidenced by the Credit Agreement, as the same may be amended, modified or assigned from time to time executed by
Grantor and Smithfield, payable to Beneficiary, with final payment being due as provided in the Credit Agreement, unless extended in accordance with the Credit Agreement, including, without limitation, principal, interest, late charges, fees and
other amounts due with respect to the Obligations or this Instrument. This Deed of Trust secures all present and future loan disbursements made by the Beneficiary pursuant to the Credit Agreement, and all other sums from time to time owing to the
Beneficiary pursuant to the Credit Agreement. The amount of the present disbursement secured hereby is One Hundred Million and NO/100 Dollars $100,000,000, and the maximum principal amount which may be secured hereby at any one time is One Hundred
Fifty Million and NO/100 Dollars ($150,000,000.00). The time period within which such future disbursements are to be made is the period between the date hereof and the date fifteen (15)&nbsp;years from the date hereof. Disbursements secured hereby
shall not be required to be evidenced by a &#147;written instrument or notation&#148; as described in Section&nbsp;45-68(2) of the North Carolina General Statutes, it being the intent of the parties that the requirements of Section&nbsp;45-68(2) for
a &#147;written instrument or notation&#148; for each advance shall not be applicable to disbursements made under the Credit Agreement; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman"
SIZE="2">(ii) Any and all additional advances made by Beneficiary or the Trustee (a)&nbsp;to protect or preserve the Mortgaged Property or the lien hereof on the Mortgaged Property; (b)&nbsp;to pay costs of erection, construction, alteration,
repair, restoration, maintenance and completion of any improvements on the Mortgaged Property; (c)&nbsp;for the payment of real estate taxes, assessments or other governmental charges, maintenance charges, insurance premiums, appraisal charges,
environmental inspection, audit, testing or compliance costs, and costs incurred by Beneficiary for the enforcement and protection of the Mortgaged Property or the lien of this Instrument; (d)&nbsp;for all legal fees, costs and other expenses
incurred by Beneficiary by reason of any default or otherwise in connection with the Obligations; and (e)&nbsp;as otherwise permitted pursuant to Article 7 of Chapter 45 of the North Carolina General Statutes (whether or not the original Grantor
remains the owner of the Mortgaged Property at the time of such advances). </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Should the Obligations secured by this Instrument be paid and performed according to the tenor and effect
thereof when the same shall become due and payable, and should Grantor perform all covenants herein contained in a timely manner, then this Instrument shall be cancelled and surrendered upon the request and at the expense of Grantor. </FONT></P> <P
STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE III </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Representations, Warranties and
Covenants </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;3.01 <U>Representations, Warranties</U>. Grantor hereby represents and warrants as follows: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) <U>First Priority Lien</U>. Grantor will not create or suffer to be created or permit to exist any lien, security interest or charge created by
Grantor prior or junior to or on parity with the lien and security interest of this Instrument upon the Mortgaged Property or any part thereof or upon the rents, issues, revenues, profits or other income therefrom except the following (collectively,
&#147;<U>Permitted Liens</U>&#148;): </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) liens for taxes, assessments and governmental charges or levies not yet delinquent
or which are being contested in good faith by appropriate proceedings; <U>provided</U> that adequate reserves with respect thereto are maintained on the books of the Grantor in conformity with generally acceptable accounting principles; </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(ii) liens imposed by law, such as material men&#146;s, mechanics&#146;, carriers&#146;, workmen&#146;s and repairmen&#146;s liens and
other similar liens arising in the ordinary course of business securing obligations (other than indebtedness for borrowed money) that are not yet due and payable; and </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(iii) easements, restrictions, rights of way, encumbrances and other exceptions to title (other than encumbrances securing indebtedness
not constituting Obligations) that would not reasonably be expected to impair the value of the Facility or otherwise materially adversely affect the use of the Facility for its present purpose. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <U>Leases</U>. Grantor will observe and perform all the obligations imposed upon Grantor under any Lease and not do or permit to be done anything to
impair the security thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <U>Further Assurances</U>. Grantor will execute and deliver all such further instruments and do such
further acts as may be necessary or desirable or as may be reasonably requested by Beneficiary or Trustee to carry out more effectively the purposes of this Instrument and to subject to the lien created hereby any properties, rights and interests
covered or intended to be covered hereby. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) <U>Rights of Beneficiary and Trustee</U>. Grantor agrees that if Grantor fails to perform any act or
to take any action which Grantor is required to perform or take hereunder or under the Credit Agreement or any other Operative Document or to pay any money which Grantor is required to pay hereunder or thereunder, either Beneficiary or Trustee in
Grantor's name or its own name may, but shall not be obligated to, perform or cause to be performed such act or take such action or pay such money, and any expenses so incurred by Beneficiary or Trustee and any money so paid by Beneficiary or
Trustee shall be a demand obligation owing by Grantor to Beneficiary or Trustee, as applicable and, upon making such payment, shall be subrogated to all of the rights of the Person receiving such payment. Each amount due and owing by Grantor under
this Section&nbsp;3.01(d) shall bear interest from the date of such expenditure or payment or other occurrence which gives rise to such amount being owed to Beneficiary until paid at the Default Rate, and all such amounts together with such interest
thereon shall be a part of the Obligations and shall be secured by this Instrument. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) <U>Real Property Description</U>. Set forth on
<U>Exhibit &#147;A&#148;</U> hereto is a true, complete and accurate legal description of the real property known as the Grantor's Tar Heel facility located in Bladen County, North Carolina. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) <U>Flood Zone</U>. Grantor agrees that if any portion of the Mortgaged Property is located in an area identified by the Federal Emergency Management
Agency as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 (or any amendment or successor act thereto), then Grantor shall maintain, or cause to be maintained,
with a financially sound and reputable insurer, flood insurance in an amount sufficient to comply with all applicable rules and regulations promulgated pursuant to such Act. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE IV </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Assignment of Assigned Leases </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;4.01 <U>Assignment of Leases and Rents</U>. As additional collateral and further security for the Obligations, Grantor does hereby assign to
Beneficiary (i)&nbsp;all of the rents, issues and profits, and all revenue, income and proceeds, derived or to be derived from the Mortgaged Property or arising from the use or enjoyment of any portion thereof or from any Assigned Lease (as
hereinafter defined) (hereinafter collectively referred to as the &#147;<U>Rents</U>&#148;) and (ii)&nbsp;Grantor's interest in any and all leases, subleases, tenant contracts, rental agreements, occupancy agreement or agreements of a similar
nature, now or hereafter affecting the Mortgaged </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">Property, or any part thereof, including without limitation the Leases (hereinafter collectively, referred to as the &#147;<U>Assigned Leases</U>&#148;).
Grantor agrees to execute and deliver to Beneficiary such additional instruments, in form and substance satisfactory to Beneficiary or Trustee, as may hereafter be requested by Beneficiary further to evidence and confirm said assignment; provided,
however, that acceptance of any such assignment shall not be construed as a consent by Beneficiary or Trustee to any Assigned Lease, or to impose upon Beneficiary or Trustee any obligation with respect thereto. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;4.02 <U>No Assignment</U>. Grantor shall not execute an assignment of the Leases, Rents, or any part thereof, from the Mortgaged Property.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;4.03 <U>Future Leases</U>. Notwithstanding any other provisions of this Instrument, Grantor shall not hereafter enter into
any leases without the prior written consent of Beneficiary and except upon the following conditions: (a)&nbsp;each such instrument shall contain a provision that the rights of the parties thereunder are expressly subordinate to all of the rights
and title of the Trustee and Beneficiary under this Instrument; (b)&nbsp;any such instrument shall contain a provision whereby the parties thereunder expressly recognize and agree that, notwithstanding such subordination, the Trustee may sell the
Mortgaged Property in the manner provided in herein, and thereby, at the option and direction of Beneficiary, sell the same subject to such instrument; and (c)&nbsp;at or prior to the time of execution of any such instrument, Grantor shall, as a
condition to such execution, procure from the other party or parties thereto an agreement in favor of the Trustee, in form and substance satisfactory to Beneficiary, under which such party or parties agree to be bound by the provisions of this
Instrument, regarding the manner in which Trustee may foreclose or exercise the power of sale under this Instrument. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;4.04
<U>Beneficiary&#146;s Authority</U>. Beneficiary is fully authorized to receive and receipt for said revenues and proceeds; to endorse and cash any and all checks and drafts payable to the order of Grantor or Trustee or Beneficiary for the account
of Grantor received from or in connection with said revenues or proceeds and apply the proceeds thereof to the payment of the Obligations, when received, regardless of the maturity of any of the Obligations, or any installment thereof; and to
execute transfer and division orders in the name of Grantor, or otherwise, with warranties binding Grantor. Beneficiary shall not be liable for any delay, neglect, or failure to effect collection of any proceeds or to take any other action in
connection therewith or hereunder; but shall have the right, at its election, in the name of Grantor or otherwise, to prosecute and defend any and all actions or legal proceedings deemed advisable by Beneficiary in order to collect such funds and to
protect the interests of the Trustee, for the benefit of Beneficiary and/or Grantor, with all costs, expenses and attorney&#146;s fees incurred in connection therewith being paid by Grantor. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;4.05 <U>Cumulative Rights</U>. The rights provided in this Article IV shall be cumulative of
all other security of any and every character now or hereafter existing to secure payment of the Obligations. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE V </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Security Agreement </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;5.01
<U>Security Interest</U>. As additional collateral and further security for the Obligations, Grantor hereby grants to Beneficiary a security interest in the machinery, apparatus, equipment, fittings, fixtures, building supplies and materials,
general intangibles (including without limitation, the Contracts) and articles of personal property either referred to or described in this Instrument, or in any way connected with the use and enjoyment of the Mortgaged Property and this Instrument
is hereby made and declared to be a security agreement, encumbering each and every item of personal property included herein, in compliance with the provisions of the Uniform Commercial Code as enacted in the State of North Carolina. A financing
statement or statements reciting this Instrument to be a security agreement, affecting all of said personal property aforementioned, shall be executed by Grantor and Beneficiary or Trustee, as applicable, and appropriately filed. The remedies for
any violation of the covenants, terms and conditions of the security agreement herein contained shall be (i)&nbsp;as prescribed herein, or (ii)&nbsp;as prescribed by general law, or (iii)&nbsp;as prescribed by the specific statutory consequences now
or hereafter enacted and specified in said Uniform Commercial Code, all at Beneficiary's sole election. Grantor and Beneficiary agree that the filing of such financing statement(s) in the records normally having to do with personal property shall
never be construed as in anywise derogating from or impairing this declaration and hereby stated intention of Grantor and Beneficiary that everything used in connection with the production of income from the Mortgaged Property and/or adapted for use
therein and/or which is described or reflected in this Instrument, is, and at all times and for all purposes and in all proceedings both legal or equitable shall be, regarded as part of the real estate irrespective of whether (i)&nbsp;any such item
is physically attached to the improvements, (ii)&nbsp;serial numbers are used for the better identification of certain items capable of being thus identified in a recital contained herein, or (iii)&nbsp;any such item is referred to or reflected in
any such financing statement(s) so filed at any time. Similarly, the mention in any such financing statement(s) of the rights in and to (aa) the proceeds of any fire and/or hazard insurance policy, or (bb) any award in eminent domain proceedings for
a taking or for loss of value, or (cc) Grantor's interest as lessor in any present or future lease or rights to income growing out of the use and/or occupancy of the Mortgaged Property, whether pursuant to lease or otherwise, shall never be
construed as in anywise altering any of the rights of Beneficiary as determined by this instrument or impugning the priority of Beneficiary's lien granted hereby or by any other recorded document, but such mention in such financing </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">statement(s) is declared to be for the protection of Beneficiary in the event any court shall at any time hold with respect to the foregoing (aa), (bb) or
(cc), that notice of Beneficiary's priority of interest to be effective against a particular class of persons, must be filed in the Uniform Commercial Code records. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">Section&nbsp;5.02 <U>Debtor&#146;s Warranties</U>. Grantor warrants that (i)&nbsp;Grantor&#146;s (that is, &#147;Debtor&#146;s&#148;) name, identity or corporate structure and residence or principal place of business
are as set forth in Section&nbsp;5.03 hereof; (ii)&nbsp;Grantor (that is, &#147;Debtor&#148;) has been using or operating under said name, identity or corporate structure without change for the time period set forth in Section&nbsp;5.03 hereof; and
(iii)&nbsp;the location of the collateral is upon the Site. Grantor covenants and agrees that Grantor will furnish Beneficiary with notice of any change in the matters addressed by clauses (i)&nbsp;or (ii)&nbsp;of this Section&nbsp;5.02 within
thirty (30)&nbsp;days of the effective date of any such change and Grantor will promptly execute any financing statements or other instruments deemed necessary by Beneficiary to prevent any filed financing statement from becoming misleading or
losing its perfected status. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;5.03 <U>Debtor Information</U>. The information contained in this Section&nbsp;5.03 is provided
in order that this Instrument shall comply with the requirements of the Uniform Commercial Code, as enacted in the State of North Carolina, for instruments to be filed as financing statements. The names of the &#147;Debtor&#148; and the
&#147;Secured Party,&#148; the identity or corporate structure and residence or principal place of business of &#147;Debtor,&#148; and the time period for which &#147;Debtor&#148; has been using or operating under said name and identity or corporate
structure without change, are as set forth in Schedule 1 of <U>Exhibit &#147;B&#148;</U> attached hereto and by this reference made a part hereof, the mailing address of the &#147;Secured Party&#148; from which information concerning the security
interest may be obtained, and the mailing address of &#147;Debtor&#148;, are as set forth in Schedule 2 of said <U>Exhibit &#147;B&#148;</U> attached hereto; and a statement indicating the types, or describing the items, of collateral is set forth
hereinabove. This Instrument covers goods that are or are to become fixtures on the Site described herein and is to be filed for record in the real estate records. The description of the real estate to which the collateral is attached or upon which
it is located is as set forth on <U>Exhibit &#147;A&#148;</U>. Grantor&#146;s organizational identification number is 0922251. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE VI
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Default and Remedies </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">Section&nbsp;6.01 <U>Event of Default</U>. A default by Grantor in the payment, performance or observance of any term, covenant or condition of the Credit Agreement or this Instrument or the occurrence of any &#147;Event of Default,&#148;
as defined in any other Operative Document, shall constitute an &#147;<U>Event of Default</U>&#148; hereunder. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;6.02 <U>Remedies</U>. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) If an Event of Default shall have occurred and be continuing, Beneficiary may at any time and from time to time declare any or all of the Obligations
immediately due and payable. Notwithstanding the foregoing, under the terms of the Credit Agreement the Beneficiary has the right at any time to demand payment in full of all outstanding Advances even if an Event of Default has not occurred.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) If an Event of Default shall have occurred and be continuing, Grantor upon demand of Beneficiary, shall forthwith surrender to
Beneficiary the actual possession of the Mortgaged Property and if, and to the extent, permitted by law and the Operative Documents, Beneficiary itself, or by such officers or agents as it may appoint, may enter and take possession of all the
Mortgaged Property without the appointment of a receiver, or an application therefor, and may exclude Grantor and its agents and employees wholly therefrom, and may have joint access with Grantor to the books, papers and accounts of Grantor
pertaining to the Mortgaged Property. If Grantor shall for any reason fail to surrender or deliver the Mortgaged Property or any part thereof after such demand by Beneficiary, Beneficiary may obtain a judgment or decree conferring upon Beneficiary
the right to immediate possession or requiring Grantor to deliver immediate possession of the Mortgaged Property to Beneficiary, to the entry of which judgment or decree Grantor hereby specifically consents. Upon every such entering upon or taking
of possession, Beneficiary may hold, store, use, operate, manage and control the Mortgaged Property and conduct the business thereof, and, from time to time (i)&nbsp;make all necessary and proper maintenance, repairs, renewals, replacements,
additions, betterments and improvements thereto and thereon and purchase or otherwise acquire additional fixtures, personalty and other property; (ii)&nbsp;insure or keep the Mortgaged Property insured; (iii)&nbsp;manage and operate the Mortgaged
Property and exercise all the rights and powers of Grantor to the same extent as Grantor could in its own name or otherwise with respect to the same; and (iv)&nbsp;enter into any and all agreements with respect to the exercise by others of any of
the powers herein granted Beneficiary, all as Beneficiary from time to time may determine to be in its best interest. Beneficiary may collect and receive all the rents, issues, profits and revenues from the Mortgaged Property, including those past
due as well as those accruing thereafter, and, after deducting (aa) all expenses of taking, holding, managing and operating the Mortgaged Property (including compensation for the services of all persons employed for such purposes); (bb) the cost of
all such maintenance, repairs, renewals, replacements, additions, betterments, improvements, purchases and acquisitions; (cc) the cost of such insurance; (dd) such taxes, assessments and other similar charges as Beneficiary may at its option pay;
(ee) other proper charges upon the Mortgaged </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">Property or any part thereof; and (ff) the reasonable compensation, expenses and disbursements of the attorneys and agents of Beneficiary, Beneficiary shall
apply the remainder of the monies and proceeds so received by Beneficiary in accordance with the terms of the Credit Agreement. Anything in this Section&nbsp;6.02(a) to the contrary notwithstanding, Beneficiary shall not be obligated to discharge or
perform the duties of a landlord to any tenant or incur any liability as a result of the exercise by Beneficiary of its rights under this Instrument, and Beneficiary shall be liable to account only for the rents, income, issues, profits and revenues
actually received by Beneficiary. Whenever all that is due upon such interest, deposits and principal installments and under any of the terms, covenants, conditions and agreements of this Instrument, shall have been paid and all Events of Default
made good, Beneficiary shall surrender possession of the Mortgaged Property to Grantor, its successors or assigns. The same right of taking possession, however, shall exist if any subsequent Event of Default shall occur and be continuing. In
connection with any action taken by Beneficiary pursuant to this Section&nbsp;6.02(a), Beneficiary shall not be liable for any loss sustained by Grantor resulting from any act or omission of Beneficiary in administering, managing, operating or
controlling the Mortgaged Property, including a loss arising from the ordinary negligence of Beneficiary, unless such loss is caused by its own gross negligence or willful misconduct and bad faith, nor shall Beneficiary be obligated to perform or
discharge any obligation, duty or liability of Grantor. Grantor hereby assents to, ratifies and confirms any and all actions of Beneficiary with respect to the Mortgaged Property taken under this Section&nbsp;6.02(a). Anything in this Article VI to
the contrary notwithstanding, Trustee hereby agrees to comply with all of the provisions of North Carolina law governing power of sale foreclosures </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">(c) If an Event of Default shall have occurred and be continuing, Beneficiary, upon application to a court of competent jurisdiction, shall be entitled as a matter of strict right without notice and without regard to the occupancy or value
of any security for the Obligations secured hereby or the solvency of any party bound for its payment, to the appointment of a receiver to take possession of and to operate the Mortgaged Property and to collect and apply the rents, issues, profits
and revenues thereof. The receiver shall have all of the rights and powers permitted under the laws of the state wherein the Site is situated. Any money advanced by Beneficiary in connection with any such receivership shall be a demand obligation
(which obligation Grantor hereby expressly promises to pay) owing by Grantor to Beneficiary and shall bear interest from the date of making such advance by Beneficiary until paid at the Default Rate. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) If an Event of Default shall have occurred, Trustee, at the direction of Beneficiary, may foreclose by exercise of the power of sale herein
contained, and Beneficiary shall deposit with Trustee copies of this Instrument, the Credit Agreement and such receipts and evidence of expenditures made and secured hereby as Trustee may require. Upon application of Beneficiary, it shall be </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">lawful for and the duty of Trustee, and Trustee hereby is authorized and empowered to expose to sale and to sell the Mortgaged Property (either as a whole or
in separate parcels and in such order as Trustee shall determine) at public auction for cash, after having first complied with all applicable requirements of North Carolina law with respect to the exercise of powers of sale contained in deeds of
trust and upon such sale, Trustee shall convey title to the purchaser in fee simple. After retaining from the proceeds of such sale just compensation for Trustee's services and all expenses incurred by Trustee, including, without limitation, a
Trustee's commission not exceeding one percent (1%)of the bid and reasonable actual attorney's fees for legal services actually performed, Trustee shall apply the residue of the proceeds as set forth in Section&nbsp;6.02(e). Grantor agrees that in
the event of sale hereunder, Beneficiary shall have the right to bid. Trustee may require the successful bidder at any sale to deposit immediately with Trustee cash or certified check in an amount not to exceed ten percent (10%)&nbsp;of the bid,
provided notice of such requirement is contained in the advertisement of the sale. The bid may be rejected if the deposit is not immediately made and thereupon the next highest bidder may be declared to be the purchaser. Such deposit shall be
refunded in case a resale is had; otherwise, it shall be applied to the purchase price. If the Improvements are sold hereunder, it need not be at the place of sale; the published notice, however, shall state the time and place where such
Improvements may be inspected prior to sale. If a foreclosure proceeding is commenced by Trustee but not completed, Trustee's fee will be one percent (1%)&nbsp;of the fair market value of the Mortgaged Property involved in such foreclosure if the
termination occurs prior to the first public auction sale and not more than one percent (1%)&nbsp;of the fair market value of the Mortgaged Property involved in such foreclosure if the termination occurs after the first public auction sale.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) If an Event of Default shall have occurred, Beneficiary may, in addition to and not in abrogation of the rights covered under
Section&nbsp;6.02, (i)&nbsp;exercise all rights, powers and remedies of Grantor under the Leases and the Contracts, and the Grantor and any other party to any of the Contracts or Leases hereby is authorized and directed to render performance to and
act upon the instructions of Beneficiary, (ii)&nbsp;with respect to any personal property constituting part of the Mortgaged Property, exercise all rights, powers and remedies of a secured party under the Uniform Commercial Code as adopted in North
Carolina, and (iii)&nbsp;either with or without entry or taking possession as herein provided or otherwise, proceed by a suit or suits in law or in equity or by any other appropriate proceeding or remedy (A)&nbsp;to enforce payment and performance
of the Obligations or the performance of any term, covenant, condition or agreement of this Instrument or any other right and (B)&nbsp;to pursue any other remedy available to it, all as Beneficiary at its sole discretion shall elect. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) In the event of a foreclosure sale of the Mortgaged Property, the proceeds of said sale shall be
applied, first, to the expenses of such sale and of all proceedings in connection therewith, including attorney's and trustee's fees, then to insurance premiums, liens, assessments, taxes and charges including utility charges advanced by
Beneficiary, then to the repayment of remaining Obligations in such amount and in the order set forth in the Credit Agreement, and finally the remainder, if any, shall be paid to Grantor or to the person or entity lawfully entitled to same.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(g) In the event of any such foreclosure sale, Grantor shall be deemed a tenant holding over and shall forthwith deliver possession to the
purchaser or purchasers at such sale or be summarily dispossessed according to provisions of law applicable to tenants holding over. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(h)
Grantor agrees to the full extent permitted by law, that in case of the occurrence of an Event of Default, neither Grantor nor anyone claiming through or under it shall or will set up, claim or seek to take advantage of any appraisement, valuation,
stay, extension, homestead, exemption or redemption laws now or hereafter in force, in order to prevent or hinder the enforcement or foreclosure of this Instrument, or the absolute sale of the Mortgaged Property, or the final and absolute putting
into possession thereof, immediately after such sale, of the purchasers thereat, and Grantor, for itself and all who may at any time claim through or under it, hereby waives to the full extent that it may lawfully so do, the benefit of all such
laws, and any and all right to have the assets comprised in the security intended to be created hereby marshalled upon any foreclosure of the lien hereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(i) Grantor hereby waives and renounces to the full extent permitted by law all homestead and exemption rights provided for by the Constitution and the laws of the United States and of any state, in and to the
Mortgaged Property as against the collection of the Obligations, or any part hereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(j) Beneficiary, at its option, is authorized to
foreclose this Instrument subject to the rights of any tenants of the Mortgaged Property, and the failure to make any such tenants parties to any such foreclosure proceedings and to foreclose their rights will not be, nor be asserted to be by
Grantor, a defense to any proceedings instituted by Beneficiary to collect the Obligations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(k) In case Beneficiary shall have proceeded
to enforce any right, power or remedy under this Instrument by foreclosure, entry or otherwise or in the event Trustee commences advertising of the intended exercise of the sale under power provided hereunder, and such proceeding or advertisement
shall have been withdrawn, discontinued or abandoned for any reason, or shall have been determined adversely to Beneficiary, then in every such case (i)&nbsp;Grantor, Trustee and Beneficiary shall be restored to their </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">former positions and rights, (ii)&nbsp;all rights, powers and remedies of Beneficiary and Trustee shall continue as if no such proceeding had been taken,
(iii)&nbsp;each and every Event of Default declared or occurring prior or subsequent to such withdrawal, discontinuance or abandonment shall and shall be deemed to be a continuing Event of Default and (iv)&nbsp;neither this Instrument, nor the
Credit Agreement, nor the Obligations, nor any other instrument concerned therewith, shall be or shall be deemed to have been reinstated or otherwise affected by such withdrawal, discontinuance or abandonment; and Grantor hereby expressly waives the
benefit of any statute or rule of law now provided, or which may hereafter be provided, which would produce a result contrary to or in conflict with the above. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(l) No right, power or remedy conferred upon or reserved to Beneficiary by this Instrument is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be
cumulative and concurrent and shall be in addition to any other right, power and remedy given hereunder or now or hereafter existing at law or in equity or by statute. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(m) No delay or omission of Beneficiary to exercise any right, power or remedy accruing upon any default shall exhaust or impair any such right, power or remedy or shall be construed to be a waiver of any such
default, or acquiescence therein; and every right, power and remedy given by this Instrument to Beneficiary may be exercised from time to time and as often as may be deemed expedient by Beneficiary. No consent or waiver, expressed or implied, by
Beneficiary to or of any breach or default by Grantor in the performance of the obligations thereof hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of the same or any other
obligations of Grantor hereunder. Failure on the part of Beneficiary to complain of any act or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by Beneficiary of its
rights hereunder or impair any rights, powers or remedies of Beneficiary consequent on any breach or default by Grantor. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(n) If
Beneficiary (i)&nbsp;grants forbearance or an extension of time for the payment of any sums secured hereby, (ii)&nbsp;takes other or additional security for the payment of any sums secured hereby, (iii)&nbsp;waives or does not exercise any right
granted herein or in the Operative Documents, (iv)&nbsp;releases any part of the Mortgaged Property from the lien of this Instrument or otherwise changes any of the terms, covenants, conditions or agreements of this Instrument or any other Operative
Document, (v)&nbsp;consents to the filing of any map, plat or replat affecting the Mortgaged Property, (vi)&nbsp;consents to the granting of any easement or other right affecting the Mortgaged Property or (vii)&nbsp;makes or consents to any
agreement subordinating the lien hereof, any such act or omission shall not release, discharge, modify, change or affect the original liability under this Instrument or any other of the Operative Documents or </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">15 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">any other obligation of Grantor or any subsequent purchaser of the Mortgaged Property or any part thereof, or any maker, co-signer, endorser, surety or
guarantor; nor shall any such act or omission preclude Beneficiary from exercising any right, power or privilege herein granted or intended to be granted in the event of any default then made or of any subsequent default; nor, except as otherwise
expressly provided in an instrument or instruments executed by Beneficiary, shall the lien of this Instrument be altered thereby. In the event of the sale or transfer by operation of law or otherwise of all or any part of the Mortgaged Property,
Beneficiary, without notice, is hereby authorized and empowered to deal with any such vendee or transferee with reference to the Mortgaged Property or the Obligations secured hereby, or with reference to any of the terms, covenants, conditions or
agreements hereof, as fully and to the same extent as it might deal with the original parties hereto and without in any way releasing or discharging any liabilities, obligations or undertakings. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(o) Beneficiary shall have power (a)&nbsp;to institute and maintain such suits and proceedings as it may deem expedient to prevent any impairment of the
Mortgaged Property by any acts which may be unlawful or any violation of this Instrument, (b)&nbsp;to preserve or protect its interest in the Mortgaged Property and in the rents, issues, profits and revenues arising therefrom, and (c)&nbsp;to
restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement of or compliance with such enactment, rule or order would impair the
security hereunder or be prejudicial to the interest of Beneficiary. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(p) In the case of any receivership, insolvency, bankruptcy,
reorganization, arrangement, adjustment, composition or other proceedings affecting Grantor, its creditors or its property, Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be
necessary or advisable in order to have the claims of Beneficiary allowed in such proceedings for the entire amount due and payable by Grantor under this Instrument at the date of the institution of such proceedings and for any additional amount
which may become due and payable by Grantor hereunder after such date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(q) BY EXECUTION OF THIS INSTRUMENT, GRANTOR EXPRESSLY:
(i)&nbsp;ACKNOWLEDGES THE RIGHT TO ACCELERATE THE OBLIGATIONS EVIDENCED BY THE CREDIT AGREEMENT; (ii)&nbsp;WAIVES ANY AND ALL RIGHTS WHICH GRANTOR MAY HAVE UNDER THE CONSTITUTION OF THE UNITED STATES (INCLUDING THE FIFTH AND FOURTEENTH AMENDMENTS
THEREOF), THE VARIOUS PROVISIONS OF THE CONSTITUTIONS FOR THE SEVERAL STATES, OR BY REASON OF ANY OTHER APPLICABLE LAW, (A)&nbsp;TO NOTICE AND RIGHT TO JUDICIAL HEARING </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">16 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">PRIOR TO THE EXERCISE BY BENEFICIARY OF ANY RIGHT OR REMEDY HEREIN PROVIDED TO BENEFICIARY, EXCEPT SUCH NOTICE (IF ANY) AS IS SPECIFICALLY REQUIRED TO BE
PROVIDED IN THIS INSTRUMENT; AND (B)&nbsp;CONCERNING THE APPLICATION, RIGHTS OR BENEFITS OF ANY STATUTE OF LIMITATION OR ANY MORATORIUM, REINSTATEMENT, MARSHALING, FORBEARANCE, APPRAISEMENT, VALUATION, STAY, EXTENSION, HOMESTEAD, EXEMPTION OR
REDEMPTION LAWS; (iii)&nbsp;ACKNOWLEDGES THAT GRANTOR HAS READ THIS INSTRUMENT AND ANY AND ALL QUESTIONS REGARDING THE LEGAL EFFECT OF THIS INSTRUMENT AND ITS PROVISIONS HAVE BEEN EXPLAINED FULLY TO GRANTOR AND GRANTOR HAS CONSULTED WITH COUNSEL OF
GRANTOR'S CHOICE PRIOR TO EXECUTING THIS INSTRUMENT; AND (iv)&nbsp;ACKNOWLEDGES THAT ALL WAIVERS OF THE AFORESAID RIGHTS OF GRANTOR HAVE BEEN MADE KNOWINGLY, INTENTIONALLY AND WILLINGLY BY GRANTOR AS PART OF A BARGAINED FOR LOAN TRANSACTION AND THAT
THIS INSTRUMENT IS VALID AND ENFORCEABLE BY BENEFICIARY AGAINST GRANTOR IN ACCORDANCE WITH ALL THE TERMS AND CONDITIONS HEREOF. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(r)
Grantor expressly acknowledges and agrees that upon or any time after the occurrence and continuation of an Event of Default so long as such Event of Default remains uncured, Beneficiary&#146;s right, title and interest in and to the Assigned Leases
and Rents shall be and remain absolute and inviolate in accordance with the provisions of this Instrument. Moreover, without limiting, altering, affecting or impairing in any manner or to any extent the absolute right, title and interest of
Beneficiary as provided herein, upon the occurrence and continuation of an Event of Default so long as such Event of Default remains uncured, Beneficiary shall have the complete right, power and authority hereunder, then or thereafter, to exercise
and enforce any or all of the following rights and remedies, in addition to (but not in lieu of) the remedies set forth in the other Operative Documents: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT
FACE="Times New Roman" SIZE="2">(i) Without taking possession of the Mortgaged Property, in Grantor&#146;s own name, to demand, collect, receive, sue for, attach and levy on the Rents and give proper receipts, releases and acquittances therefor, and
after deducting all necessary and proper costs and expenses of operation and collection, as reasonably determined by Beneficiary, including without limitation reasonable attorneys&#146; fees, and apply the net proceeds thereof, together with any
funds of Grantor deposited with Beneficiary, in reduction or repayment of the Obligations, and any such net proceeds actually received by Beneficiary shall be treated as a pro tanto reduction or repayment of the Obligations (it being specifically
agreed that the mere existence of this absolute assignment shall not be treated as pro tanto discharge, credit, reduction or repayment or discharge of the Obligations); and </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">17 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(ii) Without regard to the adequacy of the security, with or without any action or proceeding through
any Person or by any agent, or by a receiver to be appointed by a court of competent jurisdiction, and irrespective of Grantor&#146;s possession, to enter upon, take possession of, manage and operate the Mortgaged Property or any part thereof as
Beneficiary deems to be prudent and reasonable under the circumstances; make, modify, enforce, cancel or accept surrender of any Assigned Leases now in effect or hereafter in effect on the Mortgaged Property or any part thereof; remove and evict any
sublessee; increase or decrease Rents; decorate, clean, repair, and make such improvements, alterations and additions as Beneficiary shall deem necessary or desirable; and otherwise do any act or incur any cost or expense which Beneficiary may deem
reasonably necessary to protect the status and value of the Mortgaged Property as fully and to the same extent as Grantor could do if Grantor was in possession thereof; and in such event, to apply the Rents so collected in accordance with the
provisions of this Instrument. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">ARTICLE VII </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">Miscellaneous </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.01 <U>Further Assurances; After Acquired Mortgaged Property</U>. At any time,
and from time to time, upon request by Beneficiary, and at the expense of Grantor, Grantor will make, execute and deliver or cause to be made, executed and delivered, to Beneficiary and Trustee, where applicable and, where appropriate, cause to be
recorded and/or filed and from time to time thereafter to be re-recorded and/or refiled at such time and in such offices and places as shall be deemed desirable by Beneficiary, any and all such other and further deeds of trust, security agreements,
financing statements, continuation statements, instruments of further assurance, certificates and other documents as may, in the opinion of Beneficiary, be necessary or desirable in order to effectuate, complete, or perfect, or to continue and
preserve (a)&nbsp;the Obligations and (b)&nbsp;the lien of this Instrument as a first and prior lien upon and security title in and to all of the Mortgaged Property, whether now owned or hereafter acquired by Grantor, and is free and clear of all
encumbrances, other than Permitted Encumbrances. Upon any failure by Grantor so to do, Beneficiary may make, execute, record, file, rerecord and/or refile any and all such deeds to secure debt, security agreements, financing statements, continuation
statements, instruments, certificates, and documents for and in the name of Grantor and Grantor hereby irrevocably appoints Beneficiary the agent and attorney-in-fact of Grantor so to do. The lien hereof will automatically attach, without further
act, to all after acquired property attached to and/or used in the operation of the Mortgaged Property or any part thereof. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">18 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.02 <U>Subrogation</U>. To the full extent of the Obligations, Beneficiary is hereby
subrogated to the liens, claims and demands, and to the rights of the owners and holders of each and every lien, claim, demand and other encumbrance on the Mortgaged Property which is paid or satisfied, in whole or in part, out of the proceeds of
the Obligations, and the respective liens, claims, demands and other encumbrances shall be, and each of them is hereby, preserved and shall pass to and be held by Beneficiary as additional collateral and further security for the Obligations, to the
same extent they would have been preserved and would have been passed to and held by Beneficiary had they been duly and legally assigned, transferred, set over and delivered unto Beneficiary by assignment, notwithstanding the fact that any
instrument providing public notice of the same may be satisfied and cancelled of record. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.03 <U>Limit of Validity</U>. If
from any circumstances whatsoever fulfillment of any provision of this Instrument or of the Credit Agreement or of any other Operative Document, at the time performance of such provision shall be due, shall involve transcending the limit of validity
presently prescribed by any applicable usury statute or any other applicable law, with regard to obligations of like character and amount, then ipso facto the obligation to be fulfilled shall be reduced to the limit of such validity, so that in no
event shall any exaction be possible under this Instrument or under the Credit Agreement that is in excess of the current limit of such validity, but such obligation shall be fulfilled to the limit of such validity. The provisions of this
Section&nbsp;7.03 shall control every other provision of this Instrument and of the Credit Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.04 <U>Invalidity</U>.
If any provision hereof is invalid or unenforceable in any jurisdiction, the other provisions hereof shall remain in full force and effect in such jurisdiction and the remaining provisions hereof shall be liberally construed in favor of Beneficiary
in order to effectuate the provisions hereof, and the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of any such provision in any other jurisdiction. If any part of the
secured Obligations cannot be lawfully secured by this Instrument or if any part of the Mortgaged Property cannot be lawfully subject to the lien and security interest hereof to the full extent of such Obligations, then all payments made shall be
applied on said Obligations first in discharge of that portion thereof which is not secured by this Instrument. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.05
<U>Construction; Governing Law</U>. This Instrument may be construed as a deed of trust, chattel mortgage, conveyance, assignment, security agreement, pledge, financing statement, hypothecation or contract, or any one or more of </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">19 </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">them, in order fully to effectuate the security title and lien hereof and the purposes and agreements herein set forth. The term &#147;Grantor&#148; as used
herein shall mean and include all and each of the individuals, partnerships, corporations or other legal entities or persons executing this Instrument. The number and gender of pronouns used in referring to Grantor shall be construed to mean and
correspond with the number and gender of the individuals, partnerships, corporations or other legal entities or persons executing this Instrument as Grantor. The terms used to designate Beneficiary, Trustee and Grantor shall be deemed to include the
respective heirs, legal representatives, successors and assigns of such parties. This Instrument shall be governed by and construed in accordance with the laws of the State of North Carolina. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.06 <U>Waivers; Etc</U>. Beneficiary may waive any Event of Default without waiving any other prior or subsequent Event of Default.
Beneficiary may remedy any Event of Default without waiving the Event of Default remedied. No single or partial exercise by Beneficiary of any right, power or remedy hereunder shall exhaust the same or shall preclude any other or further exercise
thereof, and every such right, power or remedy hereunder may be exercised at any time and from time to time. No modification or waiver of any provision hereof nor consent to any departure by Grantor therefrom shall in any event be effective unless
the same shall be in writing and signed by Beneficiary as provided in the Credit Agreement and then such waiver or consent shall be effective only in the specific instances, for the purpose for which given and to the extent therein specified. No
notice to nor demand on Grantor in any case shall of itself entitle Grantor to any other or further notice of demand in similar or other circumstances. Acceptance by Beneficiary of any payment in an amount less than the amount then due on any
Obligations shall be deemed an acceptance on account only and shall not in any way excuse the existence of an Event of Default hereunder. The provisions of N.C. Gen. Stat. Section&nbsp;45-45.1 or any similar statute hereafter enacted in North
Carolina in replacement or substitution thereof shall be inapplicable to this Instrument. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.07 <U>Successors</U>. In the
event the ownership of the Mortgaged Property or any part thereof becomes vested in a person other than Grantor, Beneficiary and Trustee may, without notice to Grantor, deal with such successor or successors in interest with reference to this
Instrument and to the Obligations in the same manner as with Grantor, without in any way vitiating or discharging Grantor&#146;s liability hereunder or for the payment of the Obligations or performance of the obligations secured hereby. No transfer
of the Mortgaged Property, no forbearance on the part of Beneficiary or Trustee, and no extension of the time for the payment of the Obligations given by any holder of the Obligations, in whole or in part, shall affect the liability of Grantor
hereunder or for obligations secured hereby or the liability of any other person hereunder or for obligations secured hereby or the liability of any other person hereunder or for the payment of the Obligations. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">20 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.08 <U>Notices; Etc</U>. All notices, requests, consents, demands and other communications
required or permitted hereunder shall be given in accordance with the terms of the Credit Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.09 <U>Discretion of
Beneficiary</U>. Except where otherwise expressly provided herein, in any instance hereunder where the approval, consent or the exercise of judgment of Beneficiary is required, the granting or denial of such approval or consent and the exercise of
such judgment shall be within the sole discretion of Beneficiary, and Beneficiary shall not, for any reason or to any extent, be required to grant such approval or consent or exercise such judgment in any particular manner, regardless of the
reasonableness of either the request or Beneficiary&#146;s judgment. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.10 <U>Counterparts</U>. This Instrument may be
executed in several counterparts, all of which are identical. Each of such counterparts shall for all purposes be deemed to be an original and all such counterparts shall together constitute but one and the same instrument. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.11 <U>Time of the Essence</U>. Time is of the essence with respect to each and every covenant, agreement and obligation of Grantor under
this Instrument and the other Operative Documents. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.12 <U>Acceptance by Trustee</U>. Trustee accepts this Trust when this
Instrument, duly executed and acknowledged, is made of public record as provided by law. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.13 <U>Appointment of Successor
Trustee</U>. Beneficiary shall at any time have the irrevocable right to remove any Trustee herein named without notice of cause and to appoint a successor thereto by an instrument in writing, duly acknowledged, in such form as to entitle such
written instrument to be recorded in the State or Commonwealth in which the Mortgaged Property is located and in the event of the death or resignation of any Trustee with respect to the Mortgaged Property, Beneficiary shall have the right to appoint
a successor thereto by such written instrument, and any Trustee so appointed shall be vested with the title to the Mortgaged Property and shall possess all the powers, duties and obligations herein conferred on Trustee with respect to such Property
in the same manner and to the same extent as though such were named herein as Trustee with respect to the Mortgaged Property. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">Section&nbsp;7.14 <U>Trustee&#146;s Powers</U>. At any time, or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of copies of this Instrument and the Credit Agreement
secured hereby for endorsement, if requested by Trustee, and without affecting the personal liability of any person for payment of the Obligations or the effect of this Instrument upon the remainder of the Mortgaged Property, Trustee shall
(i)&nbsp;reconvey any part of the Mortgaged </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">21 </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">Property, (ii)&nbsp;consent in writing to making of any map or plat thereof, (iii)&nbsp;join in granting any easement therein, or (iv)&nbsp;join in any
extension agreement or any agreement subordinating the lien or charge hereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Section&nbsp;7.15 <U>No Merger</U>. It is the express intent
of Grantor and Beneficiary that Grantor and Beneficiary are and shall remain separate and distinct entities and that any and all legal and equitable rights, titles, interests and/or estates in and to the Mortgaged Property held by Grantor or
Beneficiary shall not merge, but shall be maintained as distinct and separate rights, titles, interests and estates in the Mortgaged Property. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2"><I>[Remainder of Page Intentionally Left Blank; Signature Page Follows] </I></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">22 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, Grantor has executed this Instrument as of the day and year first above written.
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">GRANTOR:</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">THE SMITHFIELD PACKING COMPANY, INCORPORATED</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Carey J. Dubois</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Carey J. Dubois</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">STATE OF&nbsp;&nbsp;&nbsp;&nbsp;Virginia </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">COUNTY OF&nbsp;&nbsp;&nbsp;&nbsp;Virginia </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">I,&nbsp;Diana Lynn Morris, a Notary Public for the County of
Isle of Wight, State of Virginia, certify&nbsp;that&nbsp;Carey Dubois personally&nbsp;came&nbsp;before&nbsp;me&nbsp;this&nbsp;day&nbsp;and acknowledged&nbsp;that&nbsp;he&nbsp;(or&nbsp;she)&nbsp;is&nbsp;Vice President&nbsp;of&nbsp;THE SMITHFIELD
PACKING COMPANY, INCORPORATED,&nbsp;a Delaware corporation, and&nbsp;that&nbsp;he/she, as Vice President,&nbsp;being authorized&nbsp;to&nbsp;do&nbsp;so, executed&nbsp;the&nbsp;foregoing&nbsp;on&nbsp;behalf&nbsp;of&nbsp;the&nbsp;corporation.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman"
SIZE="2">Witness&nbsp;my&nbsp;hand&nbsp;and&nbsp;official&nbsp;seal,&nbsp;this&nbsp;the&nbsp;16</FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2"> day&nbsp;of May, 2008. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/ Diana Lynn Morris</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">OFFICIAL SEAL</FONT></P></TD>
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<TD VALIGN="bottom" COLSPAN="3" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Signature of Notary Public</FONT></TD>
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<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">Print&nbsp;Name:&nbsp;&nbsp;&nbsp;&nbsp;Diana Lynn Morris</FONT></TD>
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<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">My&nbsp;Commission&nbsp;Expires:&nbsp;&nbsp;&nbsp;&nbsp;1/31/2011</FONT></TD>
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<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ID # 150363</FONT></TD>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT &#147;A</B><B>&#148;</B> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(Description of Site) </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">Lying and being in Tar Heel, Bladen County, State of North
Carolina and being more particularly described as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">All those certain tracts or parcels of land lying and being situate in Hollow Township, Bladen
County, North Carolina, and being shown and designated as parcels 1, 2, 4, 5 ,6, 7, 8, 9, 10 and 11 on that certain map entitled &#147;Survey for Parcel Acquisition for Smithfield Foods, Inc.&#148;, said map prepared by Lloyd R .Walker, R.L.S., and
recorded in Plat Cabinet A-90, at Page 901, in the office of the Register of Deeds of Bladen County, North Carolina, reference to said map being hereby made for a more particular description of the aforementioned parcels 1, 2, 4, 5, 6, 7, 8, 9, 10
and 11. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">As an appurtenance and benefit to the above-described tracts or parcels of land there is conveyed hereby an exclusive perpetual easement for the
installation and maintenance of utilities including, but not limited to, a sewerage outfall line all as more particularly described in that certain Deed of Easement recorded in Book 324, at Page 484 in the office of the Register of Deeds of Bladen
County, North Carolina, the terms and provisions of said Deed of Easement and the description as set forth on Attachment A therein being specifically incorporated herein by reference. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Saving and excepting from the above mentioned parcels 4, 5 and 6 all that certain tract or parcel of land lying and being situate in Hollow Township, Bladen County, North Carolina, beginning at a point in the
centerline of N.C. Highway 87 marked by an old nail and designated as &#147;X&#148; on that certain map or plat referred to above as recorded in Plat Cabinet A-90, at Page 901 in the office of the Register of Deeds of Bladen County. Thence, from
said point of beginning, so located, South 12&deg; 55&#146; 44&#148; East, along and with the centerline of N.C. Highway 87, 41.58 feet to a point marked by a nail; thence, South 33&deg; 14&#146; 36&#148; West 1038.58 feet to a concrete monument;
thence, North 12&deg; 56&#146; 34&#148; West 1524.50 feet to a concrete monument; thence, North 77&deg; 03&#146; 26&#148; East 743.58 feet to a nail in the centerline of N.C. Highway 87; the following courses and distances: South 15&deg; 21&#146;
59&#148; East 93.73 feet to a point, South 13&deg; 21&#146; 52&#148; East 220.97 feet to a point, South 13&deg; 05&#146; 26&#148; East 223.01 feet to a point, and South 12&deg; 51&#146; 53&#148; East 226.27 feet to the point or place of beginning.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Further saving and excepting from the above-described parcel 4 all that certain or tract or parcel of land lying and being situate in Hollow Township,
Bladen County, North Carolina, beginning at a point in the centerline of N.C. Highway 87, which said point of beginning is located the following courses and distances from a point in the centerline of the aforesaid N.C. Highway 87 marked by an old
nail and designated as &#147;X&#148; on that certain map or plat entitled &#147;Survey for Parcel Acquisition for Smithfield Foods, Inc.,&#148; said </FONT>
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<FONT FACE="Times New Roman" SIZE="2">map being recorded in Plat Cabinet A-90, at Page 901, in the office of the Register of Deeds of Bladen County, North Carolina; North 12&deg; 51&#146;
53&#148; West 226.27 feet; North 13&deg; 05&#146; 26&#148; West 223.01 feet; North 13&deg; 21&#146; 52&#148; West 220.97 feet; and, North 15&deg; 21&#146; 59&#148; West 93.73 feet to the point or place of beginning, said point being the northeastern
corner of that tract or parcel of land owned by Carolina Cold Storage Limited Partnership. Thence, from said point of beginning, so located, South 77&deg; 03&#146; 26&#148; West, along and with the northern line of the tract or parcel of land owned
by Carolina Cold Storage Limited Partnership, 743.58 feet to a concrete monument, the northwestern corner of the tract or parcel of land owned by Carolina Cold Storage Limited Partnership; thence, North 12&deg; 56&#146; 34&#148; West 517.34 feet to
a concrete monument; thence, North 77&deg; 03&#146; 26&#148; East 706.76 feet to a point in the center line of N.C. Highway 87; thence, along and with the centerline of N.C. Highway 87, the following courses and distances: South 18&deg; 08&#146;
41&#148; East 112.63 feet to a point; South 17&deg; 32&#146; 22&#148; East 249.17 feet to a point; and, South 15&deg; 21&#146; 59&#148; East 156.94 feet to the point or place of beginning. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Further saving and excepting from the above-described parcel 10 that certain tract or parcel of land shown and designated as &#147;Area: 1.50 acres&#148; on that certain
map or plat entitled &#147;Map of a survey for a Proposed Conveyance to Four County Electric Membership Corporation Carolina Sub Station Tract,&#148; said map or plat being recorded in Plat Cabinet A-94, at Page 944 in the Office of the Register of
Deeds of Bladen County, North Carolina, reference to said map or plat being hereby made for a more particular description of the tract or parcel of land hereby excepted. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Further, saving and excepting from the above-described Parcel 2 the .05 acres, more or less, designated on the above-mentioned map as &#147;Cemetery&#148;. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">All that certain tract of land lying and being situate in Hollow Township, Bladen County, North Carolina beginning at a point in the centerline of N.C. Highway 87 as
marked by a nail, said point of beginning being located the following courses and distances from a point designated as &#147;X&#148; on that certain map or plat entitled &#147;Survey for Carolina Food Processors, Inc.,&#148; prepared by Lloyd R.
Walker, R.L.S., dated June&nbsp;4, 1992 and revised January&nbsp;28, 1993: North 12&deg; 51&#146; 53&#148; West 226.27 feet; North 13&deg; 05&#146; 26&#148; West 223.01 feet to a point; North 13&deg; 21&#146; 52&#148; West 220.97 feet to a point;
North 15&deg; 21&#146; 59&#148; West 250.67 feet to a point; North 17&deg; 32&#146; 22&#148; West 249.17 feet to a point; and, North 18&deg; 08&#146; 41&#148; West 112.63 feet to the point or place of beginning. Thence, from said point of beginning,
so located, South 77&deg; 03&#146; 26&#148; West, along and with the northern line of the Ralcar Corporation (UPS Truck Facility) property 706.76 feet to a concrete monument; thence, South 12&deg; 56&#146; 34&#148; East, along and with the western
line of the Ralcar Corporation property, 517.34 feet to a concrete monument; thence, South 12&deg; 56&#146; 34&#148; East, along and with the Western line of the property owned by Carolina Cold Storage Limited Partnership, 1524.50 feet to a concrete
monument; thence, North 33&deg; 14&#146; 36&#148; East, </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">along and with the southeastern line of the property owned by Carolina Cold Storage Limited Partnership, 1038.58 feet to a point in the centerline of N.C.
Highway 87 designated by a nail; thence, southeastwardly along and with the centerline of N.C. Highway 87, the following courses and distances: South 12&deg; 55&#146; 44&#148; East 233.10 feet to a nail; South 12&deg; 55&#146; 44&#148; East 193.42
feet to a point; South 12&deg; 53&#146; 20&#148; East 274.84 feet to a point; South 05&deg; 36&#146; 21&#148; East 125.00 feet to a nail; South 05&deg; 36&#146; 21&#148; East 320.00 feet to a point; South 05&deg; 36&#146; 21&#148; East 296.60 feet
to a spike; South 05&deg; 37&#146; 51&#148; East 1370.50 feet to a nail; and, South 05&deg; 37&#146; 51&#148; East 195.33 feet to a nail; thence, leaving the centerline of N.C. Highway 87, South 23&deg; 43&#146; 00&#148; West 3529.86 feet to a
point; thence, South 23&deg; 44&#146; 12&#148; West 758.44 feet to an old iron axle; thence, South 46&deg; 39&#146; 42&#148; West 101.96 feet to an old iron pipe in the centerline of the run of Goodman Swamp, said point being designated as
&#147;C&#148; on the map or plat above described; thence, along and with the centerline of the run of Goodman Swamp, the following courses and distances: North 45&deg; 12&#146; 09&#148; West 62.90 feet to a point; North 63&deg; 19&#146; 50&#148;
West 264.84 feet to a point; North 79&deg; 12&#146; 31&#148; West 129.59 feet to a point; North 23&deg; 04&#146; 51&#148; West 74.35 feet to a point; North 70&deg; 42&#146; 12&#148; West 102.53 feet to a point; North 26&deg; 23&#146; 03&#148; West
90.01 feet to a point; North 42&deg; 38&#146; 44&#148; West 139.30 feet to a point; South 76&deg; 25&#146; 25&#148; West 150.44 feet to a point; North 87&deg; 54&#146; 46&#148; West 139.32 feet to a point; North 68&deg; 10&#146; 16&#148; West 152.28
feet to a point; North 43&deg; 00&#146; 47&#148; West 127.50 feet to a point; North 03&deg; 25&#146; 22&#148; East 288.34 feet to a point; North 51&deg; 12&#146; 09&#148; West 159.28 feet to a point; North 10&deg; 42&#146; 40&#148; West 112.78 feet
to a point; North 39&deg; 20&#146; 01&#148; West 94.39 feet to a point; North 23&deg; 49&#146; 31&#148; West 118.25 feet to a point; North 22&deg; 06&#146; 58&#148; East 76.41 feet to a point; North 43&deg; 14&#146; 17&#148; East 187.82 feet to a
point; North 00&deg; 59&#146; 26&#148; East 72.56 feet to a point; North 48&deg; 33&#146; 45&#148; West 158.12 feet to a point; North 20&deg; 06&#146; 56&#148; West 144.39 feet to a point; North 60&deg; 56&#146; 16&#148; West 73.49 feet to a point;
South 86&deg; 11&#146; 03&#148; West 103.06 feet to a point; North 66&deg; 17&#146; 38&#148; West 233.66 feet to a point; and, North 32&deg; 02&#146; 29&#148; West 123.87 feet to an iron designated as point &#147;D&#148; on the above-referenced map
or plat; thence, South 33&deg; 22&#146; 15&#148; West 724.49 feet to an old round concrete monument; thence, North 66&deg; 19&#146; 31&#148; West 107.15 feet to an old iron pipe; thence, North 66&deg; 33&#146; 48&#148; West 166.16 feet to an old
round concrete monument; thence, along and with the line of the property owned now or formerly by Mary S. Edge the following courses and distances: North 22&deg; 45&#146; 01&#148; East 2762.60 feet to an old round concrete monument; North 22&deg;
40&#146; 39&#148; East 1336.83 feet to an old round concrete monument; and, North 44&deg; 39&#146; 05&#148; West 2137.64 feet to an old iron axle in the centerline of a ditch; thence, along and with a line of the property owned now or formerly by
David S. Canady, the following courses and distances: North 42&deg; 47&#146; 55&#148; East 1966.62 feet to an iron; North 42&deg; 50&#146; 27&#148; East 1472.46 feet to an old iron pipe; and, North 42&deg; 59&#146; 35&#148; East 180.53 feet to an
iron in the centerline of a ditch, a corner of the property owned now or formerly by William L. McNair, thence, North 76&deg; 28&#146; 35&#148; East, along and with a line of the property owned now or formerly by William L. McNair and the centerline
of a ditch, as extended, 512.99 feet to a nail in the centerline of N.C. Highway 87; thence, along and with the centerline of N.C. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">Highway 87, the following courses and distances: North 26&deg; 01&#146; 09&#148; West 77.54 feet to a point; North 27&deg; 14&#146; 58&#148; West 98.24 feet
to a point; North 27&deg; 45&#146; 35&#148; West 125.16 feet to an old iron spike; and, North 28&deg; 26&#146; 18&#148; West 1064.22 feet to a nail; thence, leaving the centerline of N.C. Highway 87, North 43&deg; 29&#146; 59&#148; East, along an
with a line of the property owned now or formerly by the Sadie R. Jones Estate, 4187.94 feet to the mean highwater mark of the Cape Fear River, said point being marked by an iron and designated as point &#147;A&#148; on the above-referenced plat;
thence, along and with the mean highwater line of the Cape Fear River, the following courses and distances: South 26&deg; 02&#146; 28&#148; East 418.42 feet to a point; South 29&deg; 45&#146; 17&#148; East 247.04 feet to a point; South 28&deg;
51&#146; 52&#148; East 283.13 feet to a point; South 26&deg; 01&#146; 53&#148; East 341.68 feet to a point; South 25&deg; 31&#146; 08&#148; East 523.14 feet to a point; South 12&deg; 01&#146; 01&#148; East 492.84 feet to a point; South 09&deg;
12&#146; 43&#148; East 274.20 feet to a point; South 00&deg; 27&#146; 43&#148; East 292.60 feet to a point; and, South 01&deg; 07&#146; 18&#148; East 611.56 feet to an iron designated as point &#147;B&#148; on the above-referenced map; thence, South
33&deg; 14&#148; 37&#148; West, along and with a line of the property owned now or formerly by Dianne M. Woodell, 4246.50 feet to a nail in the centerline of N.C. Highway 87, said point designated &#147;X&#148; on the above-referenced plat; thence,
along and with the centerline of N.C. Highway 87, the following courses and distances: North 12&deg; 51&#146; 53&#148; West 226.27 feet to a point; North 13&deg; 05&#146; 26&#148; West 223.01 feet to a point; North 13&deg; 21&#146; 52&#148; West
220.97 feet to a point; North 15&deg; 21&#146; 59&#148; West 250.67 feet to a point; North 17&deg; 32&#146; 22&#148; West 249.17 feet to a point; and, North 18&deg; 08&#146; 41&#148; West 112.63 feet to a nail, the point or place of beginning.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Saving and excepting from the above-described tract of land the following parcels: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Parcel I: All of that parcel designated as &#147;Cemetery&#148; as shown and more particularly described on that certain map or plat entitled &#147;Survey for Carolina Food Processors, Inc.,&#148; prepared by Lloyd R
Walker, R.L.S., dated June&nbsp;4, l992 and revised January&nbsp;28, 1993. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Parcel II: All of that certain parcel of land designated as &#147;Substation
plat Cab. A-94, age 944,&#148; as shown and more particularly described on that certain map or plat entitled &#147;Survey for Carolina Food Processors, Inc.&#148;, prepared by Lloyd R. Walker, R.L.S., dated June&nbsp;4, 1992 and revised
January&nbsp;28, 1993. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The above-described tract of land, and the exceptions as above noted, are the same shown on that certain map or plat entitled
&#147;Survey for Carolina Food Processors, Inc.&#148; prepared by Lloyd R. Walker, R.L.S. dated June&nbsp;4, 1992 and revised January&nbsp;28, 1993. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>EXHIBIT &#147;B&#148; </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2">Schedule 1 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(Description of &#147;Debtor&#148; and &#147;Secured Party&#148;) </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">A. Debtor: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">1.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name and Identity: The Smithfield Packing Company Incorporated, a Delaware corporation </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">2.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">The residence or principal place of business of Debtor is: </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman"
SIZE="2">c/o Smithfield Foods, Inc. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">111 Commerce Street </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT
FACE="Times New Roman" SIZE="2">Smithfield, VA 23430 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">Attention: Carey Dubois, Chief Financial Officer </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">B. Secured Party: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">Citibank, N.A. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">388 Greenwich Street, 23rd Floor </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">New York,
NY 10013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT FACE="Times New Roman" SIZE="2">Attention: Robert Kane, Global Consumer and Healthcare Department </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">**************************************************************** </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Schedule 2
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(Notice Mailing Addresses of &#147;Debtor&#148; and &#147;Secured Party&#148;) </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">A. The mailing address of Debtor is: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">The Smithfield Packing
Company Incorporated </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">c/o Smithfield Foods, Inc. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
FACE="Times New Roman" SIZE="2">111 Commerce Street </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Smithfield, VA 23430 </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Attention: Carey Dubois, Chief Financial Officer </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">B. The mailing address of Secured Party is: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
FACE="Times New Roman" SIZE="2">Citibank, N.A. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">388 Greenwich Street, 23rd Floor </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">New York, NY 10013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Attention: Robert Kane,
Global Consumer and Healthcare Department </FONT></P>
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