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**SECOND AMENDMENT OF**

**MEMBERSHIP INTEREST PURCHASEAGREEMENT**

 

 

THIS SECOND AMENDMENT, dated effective as of April 3, 2008(this “Amendment”), to the Membership Interest Purchase Agreement, dated as ofFebruary 29, 2008 (as amended, supplemented or otherwise modified from time totime, the “MIPA”), among JBS S.A. (“JBS”), National Beef Packing Company, LLC,U.S. Premium Beef, LLC, French Basin Land and Cattle Co., LLC, TKK Investments,LLC, S-B Enterprises V, LLC, TMKCO, LLC, John R. Miller, Timothy M. Klein andNBPCO Holdings, LLC.  Unless otherwise defined herein, terms used herein shallhave the meanings assigned thereto in the MIPA.

**W I T N E S S E T H :**

WHEREAS, pursuant to Section5.16(a) of the Agreement, JBS was required to promptly and duly call, givenotice of, convene and hold a meeting of its shareholders within 30 days of thedate of the MIPA, for the purpose of obtaining approval of the transactionscontemplated thereby;

WHEREAS, pursuant to the FirstAmendment of the MIPA dated March 24, 2008, the parties amended Sections5.16(a), 7.1(g) and 7.3(c) to provide that JBS would hold its shareholdermeeting on or before April 2, 2008; 

WHEREAS, at the April 2, 2008JBS shareholders meeting the requisite quorum was not available to officiallyapprove the transaction necessitating the issuance of a second invitationmeeting to be held on April 11, 2008; as a result, the requirement that thetransaction contemplated by the Agreement be approved on or before April 2,2008 cannot be fulfilled; 

WHEREAS, in order to provide asolution to the problem described above which cannot be cured, JBS hasrequested an amendment to the Agreement in order to assure compliance with thecovenants contained in Section 5.16;

WHEREAS, the Sellers arewilling to agree to such amendment of Section 5.16 and to amend thecorresponding right to terminate in Section 7.1(g)(ii) and Section 7.3(c)(iii)that exists by virtue of the failure of JBS timely to fulfill the conditionsestablished in Section 5.16;

WHEREAS, the Parties agree thatwith the adoption of this Amendment as of April 3, 2008, that there is nobreach of the MIPA relating to Section 5.16 and therefore no right of theSellers to terminate the MIPA under Sections 7.1(b)(ii) and 7.1(g)(ii) underconditions existing as of April 3, 2008;

NOW, THEREFORE, inconsideration of the premises and the mutual covenants contained herein, JBS,the Sellers and National hereby agree as follows:

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| **NBPMEMBERS/JBS S.A. ** | **2ND AMENDMENT MIPA**
                                                                                                                                                            

 

 

1.   Waivers. To the extent and only to the extent that a breach resulted from the failure byJBS to timely convene a meeting of shareholders to approve the transactioncontemplated by the MIPA prior to the adoption by the Parties of thisAmendment, the Sellers hereby waive any breach of the MIPA arising fromviolation of Section 5.16 of the MIPA, and the related termination rightsprovided in respect thereof under Section 7.1(b)(ii), Section 7.1(g)(ii) andSection 7.3(c)(iii). 

2.    Amendments. The Sellers, National and JBS hereby agree to amend Section 5.16(a), Section7.1(g)(ii) and Section 7.3(c)(iii) of the MIPA through the First Amendment ofthe MIPA with existing words and language stricken and new language underlinedas provided below:  

            **5.16     JBSShareholder Approval.**  Buyer shall promptly after the date of thisAgreement give all required notices and take all action necessary to notify itsshareholders of a meeting to seek approval of the transactions contemplatedhereby and mail to its shareholders information relevant to their vote and asrequired under the applicable law.  The Board of Directors of Buyer shall:

 

(a)        promptly andduly call, give notice of, convene and hold a meeting of its shareholders,which meeting shall be held not later than April ~~2~~11, 2008, forthe purpose of obtaining approval of the transactions contemplated hereby;

(b)        recommendto its shareholders approval of the contemplated transactions under thisAgreement; and

 

(c)        takeall commercially reasonable action to solicit and obtain shareholder approval.

 

**7.1       Termination.**

 

(g)        *EitherParty; Failure of Member/Shareholder Approval.*

 

Buyer or Sellers mayterminate this Agreement if:

 

(i)         themembers of USPB do not approve the transactions contemplated under thisAgreement by 30 days after execution of this Agreement; or

                        

(ii)        theshareholders of JBS fail to approve the transactions contemplated under thisAgreement on or before April ~~2~~11, 2008.

 

Buyer and Sellersagree to promptly notify each other in writing upon approval of thetransactions by their respective shareholders and members, and if the Partyelects to terminate the Agreement as provided under this Section 7.1(g);

 

**7.3       TerminationFee.**

 

(c)        Buyerprovides the Financing Representation to Sellers and then Buyer does not haveadequate financing to pay amounts due at the Closing under Section 7.1(d);

 

                                               

 

 
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**NBPMEMBERS/JBS S.A. **

**2ND AMENDMENT MIPA**
 

 

 

                                                                                                                                                            

 

 

then Buyer shall payor cause to be paid to National by 60 days after occurrence of an event inSection 7.3(a), (b), or (c) a cash amount equal to $25,000,000 plus all costsof National and Sellers incurred in the United States related to thenegotiation and implementation of the transactions under this Agreementincluded in a written notice from Sellers to Buyer including costs of legalcounsel, consultants, advisors, data room, due diligence, and printing (the **“TerminationFee”**), provided, however, that the Termination Fee shall not be paid byBuyer in the event that:

 

(i)         thisAgreement is terminated pursuant to Section 7.1(a) (Mutual Termination)or Section 7.1(e) (Buyer’s Termination);

 

(ii)        theMembers of USPB fail to approve this Agreement and the contemplated transactionsunder this Agreement by 30 days after execution of the Agreement;

 

(iii)       theshareholders of JBS fail to approve this Agreement and the contemplatedtransactions under this Agreement on or before April ~~2~~11, 2008; 

 

(iv)       theFTC or DOJ, in response to the notifications required under Section 5.10(a),unconditionally disapprove the transactions contemplated in the TransactionDocuments such that no possible appeal or remedy, including any sale,divestiture of disposition of assets or businesses, remains available to Buyerto effect the resolution of objections or concerns by the FTC or DOJ;

 

(v)        Sellersterminate this Agreement after acceptance of a Superior Proposal; or 

 

(vi)       anAct of God occurs and Buyer terminates this Agreement pursuant to Section7.1(f).

 

 

3.  Representation andWarranties.  JBS, as of the date hereof and after giving effect to theAmendment contained herein, hereby confirms, reaffirms and restates that therepresentations and warranties made by it in the MIPA are true and correct inall material respects all as if made on the effective date of this Amendment. 

4.  Conditions toEffectiveness.  This Amendment shall become effective as of April 3, 2008upon the time when the parties shall have exchanged fully signed counterpartsof this Amendment. 

 
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**NBPMEMBERS/JBS S.A. **

**2ND AMENDMENT MIPA**
 

 

 

                                                                                                                                                            

 

 

5.  Limited Effect.  Theexecution, delivery and effectiveness of this Amendment shall not, except asexpressly provided herein, operate as a waiver of any right, power or remedy ofthe Sellers or National under the MIPA, nor constitute a waiver of any otherprovision of the MIPA or any other Transaction Document.  Except as expresslyamended, waived, modified and supplemented herein, all of the provisions andcovenants of the MIPA and the other Transaction Documents are and shall continueto remain in full force and effect in accordance with the terms thereof and arehereby in all respects ratified and confirmed.  Each reference to the “MIPA”contained in the MIPA and in each of the Transaction Documents (howsoever“MIPA” is therein defined) shall be deemed to refer to the MIPA as amended andmodified by this Amendment.

6.  Governing Law;Counterparts.  (a) This Amendment and the rights and obligations of theParties hereto shall be governed by, and construed and interpreted in accordancewith, the laws of the State of Delaware.

(b) This Amendment may beexecuted by one or more of the parties hereto on any number of separatecounterparts, and all of said counterparts taken together shall be deemed toconstitute one and the same instrument.  This Amendment may be delivered byfacsimile transmission or PDF electronic transmission of the relevant signaturepages of this Amendment.

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**NBPMEMBERS/JBS S.A. **

**2ND AMENDMENT MIPA**
 

 

 

 

 

IN WITNESS WHEREOF, the partieshereto have caused this Amendment to be duly executed and delivered as of theday and year first above written.

**SELLERS:**                                                     U.S. PREMIUMBEEF, LLC

 

 

By:  /s/ Steven D. Hunt                                              

            Name:Steven D. Hunt                                   

            Title:Chief Executive Officer                        

 

 

 

FRENCH BASIN LAND &CATTLE CO., LLC

 

 

By:/s/ John R. Miller                                                    

            Name:John R. Miller                                    

            Title:Manager                                               

 

 

 

TKK INVESTMENTS, LLC

 

 

By:  /s/Timothy M. Klein                                              

            Name: Timothy M. Klein                                 

            Title:Manager                                                  

 

 

TMKCo, LLC

 

 

By:  /s/Timothy M. Klein                                              

            Name: Timothy M. Klein                                 

            Title:Manager                                                  

 

 

 

S-B ENTERPRISES V, LLC

 

 

By: /s/ Scott H. Smith                                                   

           Name: Scott H. Smith                                     

           Title:Manager                                                  

 

 
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**NBPMEMBERS/JBS S.A. **

**2ND AMENDMENT MIPA**
 

 

 

 

 

 

 

/s/ John R. Miller                                                                 

JOHN R. MILLER

 

 

 

 /s/Timothy M. Klein                                                          

TIMOTHY M. KLEIN

 

 

 

NBPCO HOLDINGS, LLC

 

 

By:   /s/Richard A. Jochum                                                 

            Name: Richard A. Jochum                                      

            Title: Vice President, General Counsel                     

 

 

 

**BUYER:**                                                         JBSS.A.

 

 

By:   /s/ Joesley M. Batista                                              

            Name:Joesley M. Batista                                  

            Title:Presidente /CEO                                        

 

 

 

**NATIONAL:                                                 **NATIONALBEEF PACKING COMPANY, LLC

 

 

By:  /s/John R. Miller                                                    

            Name:John R. Miller                                         

            Title: Chief Executive Officer                             

 

 
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