# EDGAR Filing Document

**Accession Number:** 0001289237
**File Stem:** 0001683168-23-001581
**Filing Date:** 2023-3
**Character Count:** 21655
**Document Hash:** 2db681bfc9fc0a7759a1703c343335fb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683168-23-001581.hdr.sgml**: 20230317

**ACCESSION NUMBER**: 0001683168-23-001581

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230315

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230317

**DATE AS OF CHANGE**: 20230317

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** U. S. Premium Beef, LLC
- **CENTRAL INDEX KEY:** 0001289237
- **STANDARD INDUSTRIAL CLASSIFICATION:** AGRICULTURE PRODUCTION - LIVESTOCK & ANIMAL SPECIALTIES [0200]
- **IRS NUMBER:** 201576986
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-115164
- **FILM NUMBER:** 23743195

**BUSINESS ADDRESS:**
- **STREET 1:** 12200 NORTH AMBASSADOR DRIVE, SUITE 501
- **CITY:** KANSAS CITY
- **STATE:** MO
- **ZIP:** 64163
- **BUSINESS PHONE:** 816-713-8800

**MAIL ADDRESS:**
- **STREET 1:** 12200 NORTH AMBASSADOR DRIVE, SUITE 501
- **CITY:** KANSAS CITY
- **STATE:** MO
- **ZIP:** 64163

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** U. S. Premium Beef, Inc.
- **DATE OF NAME CHANGE:** 20040504

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

Date of Report (date of earliest event reported): March 15, 2023

**<u>U. S. PREMIUM BEEF, LLC</u>**

(Exact name of Registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **333-115164** | **20-1576986** |
| (State or Other Jurisdiction | (Commission | (I.R.S. Employer |
| of Incorporation) | File Number) | Identification No.) |

---

**12200 North Ambassador Drive**

 **Kansas City, Missouri 64163**

(Address of Principal Executive Offices) (Zip Code)

**(816) 713-8800**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

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 (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| N/A | N/A | N/A |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 1.01** | **Entry Into** **Material Definitive Agreement.** |

---

On March 15, 2023, the Board of Directors (the "Board") of U.S. Premium Beef, LLC (the "Company") approved a Second Amended and Restated USPB Phantom Unit Bonus Compensation Policy (the "Phantom Unit Policy"). A copy of the Phantom Unit Policy is attached hereto as Exhibit 10.4(c). The Phantom Unit Policy provides for the award of unit appreciation rights to certain employees of USPB. USPB's Chief Executive Officer, Stanley D. Linville (the "CEO"), shall administer the Phantom Unit Policy and award "Phantom Units" (Class A and Class B Units) to employees in amounts determined by the CEO, subject to the total Phantom Unit amount approved by the Board of Directors of USPB.

Under the terms of the Phantom Unit Policy, each Phantom Unit award shall vest at the rate of one-fifth of the award for each full fiscal year of employment that the employee completes after the award is made, provided that the Board of Directors may approve a different vesting schedule at the time of the award. After an employee's award of Phantom Units is fully vested, the employee may exercise up to one-fifth of the employee's fully vested Phantom Units in a fiscal year, and up to one-fifth of the original award in any subsequent fiscal year. The Phantom Unit Policy also sets forth certain rights with respect to the Phantom Units in connection with the liquidation of all or substantially all of the assets of USPB and termination of an employee, which includes rights for the designated beneficiary, at the time of such employee's death, to receive any payments due upon exercise of vested Phantom Units in accordance with the Phantom Unit Policy.

Each Phantom Unit constitutes a unit appreciation right under which the employee is entitled, on exercise, to payment of the difference between the Market Price and the Strike Price of a Phantom Unit. The "Market Price" is the weighted average price for the immediately preceding fiscal year of the non-conditional unit transaction prices of corresponding USPB Class A Units and Class B Units by Unitholders of USPB to unaffiliated third parties. The "Strike Price" is the greater of the Market Price of the Phantom Units for the fiscal year prior to award of the Phantom Units or the fair market value of the Phantom Units on the date of the award using a reasonable valuation method. The Phantom Unit rights include anti-dilution rights in the event of certain actions by USPB.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits** |

---

(d) Exhibits.

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| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 10.4(c) | [Second Amended and Restated USPB Phantom Unit Bonus Compensation Policy, effective as of March 15, 2023](uspremium_ex1004.htm) |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document). |

---

**SIGNATURES**

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, thereunto duly authorized.

---

| |
|:---|
| **U.S. PREMIUM BEEF, LLC** |
| By: <u>/s/ Stanley D. Linville</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stanley D. Linville |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |

---

Dated: March 17, 2023

## Exhibit 10.4

**Exhibit 10.4**

**SECOND AMENDED AND RESTATED**

**USPB PHANTOM UNIT BONUS<br> COMPENSATION POLICY**

**(As of March 2023)**

**Scope and Administration.** This Second Amended and Restated Phantom Unit Bonus Compensation Policy ("Phantom Unit Policy") of U.S. Premium Beef, LLC ("USPB") is a policy for compensating USPB employees ("Employees" and each individual an "Employee") by granting rights to share in appreciation of Class A and Class B Units. This Phantom Unit Policy has been approved by the Board of Directors and shall be administered by the chief executive officer of USPB ("CEO"). Each Phantom Unit constitutes a unit appreciation right under which the Employee is entitled, on exercise, to payment of the difference between the Market Price and the Strike Price of a Phantom Unit. The CEO shall be responsible for maintaining documentation and the Strike Price and Market Price of the Phantom Units awarded to each Employee and for the determination of all adjustments and payments. As part of the annual budgeting process, the CEO shall propose and the Board of Directors shall approve, the number of Phantom Units (Class A and Class B Units) available for awards under the Phantom Unit Policy. The Phantom Class A and Phantom Class B Units subject to this Phantom Unit Policy are referred to as the "Phantom Units." The Board of Directors may terminate the USPB Phantom Unit Policy prospectively at any time but may not terminate any previously awarded Phantom Units.

**Guidelines.** The CEO shall administer this Phantom Unit Policy under the following guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *Award of Awardable Phantom Units.* From the total Phantom Unit amount approved by the Board of Directors, the CEO shall award Phantom Units (including an award of Phantom Class A Units and Phantom Class B Units) to the Employees in amounts as determined by the CEO. Each Employee's Phantom Unit award shall vest at the rate of one-fifth of the award (rounded to a whole number as determined by the CEO) for each full fiscal year of employment that the Employee completes after the award is made, unless the Board of Directors approves a different vesting schedule at the time of award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *Payment on Exercise.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Amount Paid on Exercise.* When an Employee exercises a Phantom Unit, USPB will pay the Employee an amount equal to: the number of vested Phantom Units exercised times the difference in the "Market Price" for the Class A Units and Class B Units and the "Strike Price" for the Phantom Class A and Phantom Class B Units. The "Market Price" is the weighted average price for the immediately preceding fiscal year of the non- conditional unit transaction prices of corresponding USPB Class A Units and Class B Units by Unitholders of USPB to unaffiliated third parties. If USPB Class A Units and Class B Units are sold in the same transaction without designating separate prices for Class A Units and Class B Units, the price shall be allocated to Class A Units and Class B Units according to the percentage of profits and losses allocated by USPB to Class A Units and Class B Units respectively, under the USPB LLC Agreement, Section 3.6(b). The "Strike Price" for the Phantom Units is the greater of the Market Price for the corresponding Phantom Units determined for the fiscal year prior to award of the Phantom Units or the fair market value of the Phantom Units on the date of the award determined using a reasonable valuation method that would satisfy the requirements of Treasury Regulation section 1.409A-1(b)(5)(iv), and adjusted, as required, under Section 3(c). To determine the Market Price corresponding to a fiscal year there must be a number of qualifying transactions for both Class A Units and Class B Units equal to or greater than the total number of designated Phantom Units of the same classes. If there are less than the required number of transactions in the prior fiscal year, then the weighted transactions from earlier fiscal years shall be used so that the Market Price is determined from a number of transactions consisting of the same number of units for each class as the total number of designated Phantom Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Exercise.* After an award of Phantom Units is fully vested (i.e. after completion of five fiscal years of employment after the date of the award), the Employee, by written notice to the CEO, may elect to exercise up to one-fifth of the Employee's fully vested Phantom Units in a fiscal year. The Employee may likewise exercise up to one-fifth of the original award in any subsequent fiscal year. The number of Phantom Units awarded to the Employee shall be reduced by the number of Phantom Units that the Employee has exercised. Payment of the amount under paragraph 2(a) shall be made no later than 30 days after the Employee notifies USPB of the number of Phantom Units being exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Termination.* The number of vested Phantom Units remaining unexercised at the time of an Employee's termination of employment with USPB shall be treated as exercised under (b) as follows: one-third shall be treated as exercised on the termination of employment; one-third on the first anniversary of the termination of employment; and one- third on the second anniversary of the termination of employment. Phantom Units that are not vested on termination of employment shall lapse. For purposes of this subpart (c), an Employee's death during his or her employment with USPB shall be considered a termination of employment. Vested Phantom Units held by such Employee on the date of his or her death shall be treated as exercised on such date in accordance with this subpart (c) and any payments due upon such exercise shall be due and payable by USPB at the times and on the terms specified in this Policy to the Employee's Designated Beneficiary (as defined in the following sentence), if any, or, in the absence of a Designated Beneficiary, to the Employee's estate. Each Employee may designate a beneficiary (a "Designated Beneficiary") to receive the payments due upon an exercise of vested Phantom Units caused by the Employee's death by providing written notice to the CEO and may, from time to time in the Employee's discretion, modify the designation of such Designated Beneficiary by providing written notice of such modification to the CEO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Liquidation.* If all or substantially all of the assets of USPB or the ownership interests of USPB are transferred to another party and the proceeds are distributed to USPB Unitholders or if ownership interests of USPB are transferred to another party in exchange for a distribution to USPB Unitholders, all Phantom Units shall immediately vest and Employees shall be treated as having exercised all of the Phantom Units awarded to them. The amount paid on exercise shall be the difference between the Strike Price and an amount equal to the distribution to Unitholders of Class A Units and Class B Units on a per unit basis for the number of Phantom Units awarded to the Employee*.* The amount shall be paid at the time distributions are made to the Unitholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *Anti-dilution.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Compensation For Dilution.* The Employees' designated and vested Phantom Unit rights under the Phantom Unit Policy shall not be diluted by actions of USPB (other than certain events of Distribution Dilution during the fiscal year in which the Phantom Units are designated as described below), including transfer of assets to another entity or issuance of units such that the designated and vested Phantom Unit rights at the time of a dilution event shall be adjusted so that the Employee's Phantom Unit rights are not diluted, provided, however, USPB's issuance of Units or distributions under the CEO Employment Agreement to CEO, issuance of additional Units at or above the Market Price, or the issuance of debt instruments or preferred units with fixed (interest like) returns shall not be considered dilution of the designated and vested Employee Phantom Unit rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Distribution Dilution.* If there is dilution by action of USPB that results in a cash distribution to Unitholders (other than an event described in Section 2(d) or an event not considered dilution in Section 3(a)), a "Distribution Dilution" shall be deemed to have occurred and each Employee with outstanding Phantom Units shall be entitled to a payment, subject to clause (iii) below, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A "Distribution Dilution" means the excess of the total amount distributed for a tax year with respect to outstanding Units (including a distribution of ownership rights in another entity) over the product of the total maximum tax rate times USPB's income less deductions ("taxable income") for the tax year. The maximum tax rate will be equal to the higher of the maximum federal corporate income tax rate or maximum federal individual income tax rate plus a weighted average state income tax rate, which will be computed by multiplying the state income tax rates for each of the states in which USPB has nexus by an apportionment rate. The apportionment rate will be calculated by dividing each state's apportionment factor, determined by USPB's tax advisor, by the total of the apportionment factors. The determination of any Distribution Dilution will be made within 60 days after the taxable income for the tax year for USPB is determined in a reportable manner for USPB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Distribution Dilution occurs, each Employee shall be paid an amount with respect to the Employee's awarded Phantom Units. Payment with respect to vested Phantom Units shall be made to the Employee after the taxable income of USPB for the tax year attributable to which the Distribution Dilution occurred is determined, but in no event later than March 15 of the calendar year following the tax year for which the Distribution Dilution occurred. Upon the death of an Employee, the Designated Beneficiary or the Employee's estate, if there is no Designated Beneficiary, shall be paid any Distribution Dilution amount that has been accrued, but not yet paid for such Employee's Phantom Units. Payment with respect to unvested Phantom Units shall be made to the Employee after the end of the tax year in which the Phantom Units that were not vested become vested Phantom Units, but in no event later than March 15 of the calendar year following the tax year in which such Phantom Units vest. The amount payable to an Employee with respect to Phantom Units for a tax year shall be the per-unit amount for each Class A Unit and each Class B Unit, as applicable, is equal to the amount determined by subtracting the total maximum tax rate distributions for a tax year from the total cash distributions made by USPB to Unitholders for such tax year (such remainder, the "Total Dilution Amount"); then the Total Dilution Amount shall be multiplied by the percentage of profits and losses allocated to the corresponding Class A Units and Class B Units (such product, as applicable, the "Class Dilution Amount"); then the Class Dilution Amount shall be divided by the corresponding outstanding Class A Units and Class B Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) There shall be no payment to Employees for a Distribution Dilution as a result of a leveraged distribution from which the proceeds are paid to Class A Unitholders and Class B Unitholders in fiscal year 2011.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Unit Dilution*. If there is dilution by action of USPB that results in the Phantom Units being diluted (other than actions not considered dilution under Section 3(a), or dilution for which there is a distribution to USPB Unitholders and after taking into an account any compensation for dilution under Section 3(b) above), such as a split of USPB Units or actions that reduce the proportion of ownership of USPB that the Phantom Units would represent if the Phantom Units were Class A Units and Class B Units before and after the action, taking into account capital contributions made corresponding to the action ("Unit Dilution"); then designated and vested Phantom Units shall be increased in proportion to the amount of dilution (the increase referred to as the "Additional Units"). If there is Unit Dilution, the "Strike Price" for all designated and vested Phantom Units shall be adjusted to be equal to the number of corresponding Phantom Units of each class prior to the Unit Dilution divided by the total number of corresponding Phantom Units after the Unit Dilution times the Strike Price prior to the Unit Dilution. Any adjustments under this paragraph (c) shall be made in accordance with the rules under Treasury regulation section 1.409A-1(b)(5)(v).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *Withholding*. Upon exercise of a Phantom Unit or payment under Section 2 or Section 3(b), USPB shall withhold from the amount otherwise payable, an amount necessary to satisfy any applicable federal, state and local withholding tax requirements.