Pricing grid clause samples

(a) Pricing Grid. The price for each head of cattle purchased by JBS under this Agreement shall be an amount determined pursuant to JBS’s pricing grid (the “Pricing Grid”), as the Pricing Grid may be modified or supplemented from time to time by JBS; provided that the Pricing Grid shall in any event be competitive with JBS’s major competitors for the purchase of cattle. For purposes of the Pricing Grid, JBS shall grade beef derived from cattle purchased under this Agreement in accordance with standard industry practice. The basis applicable to the cattle sold under this Agreement through December31, 2013 shall be $5.00. The basis applicable to the cattle sold under this Agreement may be modified annually and shall be included in the Pricing Grid, as agreed to in writing by the parties.

(a) Pricing Grid. The price for each head of cattle purchased by JBS USA under this Agreement shall be an amount determined pursuant to JBS USA’s pricing grid (the “Pricing Grid”), as the Pricing grid may be modified or supplemented from time to time by JBS USA, provided that the Pricing Grid shall in any event be competitive with JBS USA’s major competitors for the purchase of cattle purchased under this Agreement in accordance with standard industry practice.

Payment quarterly in arrears of Letter of Credit fee(s) equal to the applicable per annum percentage specified in the Pricing Grid. The Letter of Credit fee is calculated based on the face amount of all outstanding Letters of Credit.

Borrowings under the Senior Credit Facilities bear interest, at the Company’s option, at a rate per annum determined by reference to either the London Interbank Offered Rate (“LIBOR”) or an adjusted base rate, in each case plus an applicable interest rate margin. The applicable interest rate margin with respect to LIBOR borrowings is a rate per annum between 1.50% and 2.25% and the applicable interest rate margin with respect to adjusted base rate borrowings is a rate per annum between 0.50% and 1.25%, in each case determined on a quarterly basis by reference to a pricing grid based upon the Company’s total net leverage ratio. In addition, the Company is required to pay commitment fees on any unused portion of the Revolving Credit Facility at a rate between 0.25% per annum and 0.40% per annum, determined by reference to the pricing grid. As ofMarch 31, 2017, borrowings under the Senior Credit Facilities bore interest at a rate of 2.50% per annum and commitment fees accrue at a rate of0.25% per annum. Outstanding borrowings under the Term Loan Facility were $93.8 million and the Company had $197.2 million available for borrowing under the Revolving Credit Facility at March 31, 2017.