Common use of Relevant Contracts Clause in Contracts

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