Document:

Exhibit 10.1

 

THIRD AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

This THIRD AMENDMENT TO AMENDED AND
RESTATED CREDIT AGREEMENT (“Third Amendment”), effective as of August 28,
2008, is by and between GOLDEN OVAL EGGS, LLC, a limited liability company
organized under the laws of the State of Delaware, GOECA, LP, a Delaware
limited partnership, and MIDWEST INVESTORS OF IOWA, COOPERATIVE, a cooperative
organized under the laws of the State of Iowa (individually each a “Borrower”
and collectively the “Borrowers”) the banks and other financial
institutions or entities which are signatories hereto (individually each a “Lender”
and collectively the “Lenders”), and COBANK, ACB, a federally charted
instrumentality under the Farm Credit Act of 1971, as amended, one of the
Lenders and as agent for the Lenders (in such capacity, the “Administrative
Agent”).

 

RECITALS

 

1.                                       The
Lenders and the Borrowers entered into an Amended and Restated Credit Agreement
dated as of June 30, 2006 (the “Credit Agreement”); and

 

2.                                       The
Lenders and the Borrowers entered into a First Amendment to the Amended and
Restated Credit Agreement dated as of April 30, 2007 (the “First Amendment”);
and

 

3.                                       The
Lenders and Borrowers entered into a Second Amendment to the Amended and
Restated Credit Agreement dated as of October 19, 2007 (the “Second
Amendment”); entered into an Extension Agreement dated as of December 13,
2007 (the “First Extension”), and entered into an Extension and Amendment
Agreement as of March 11, 2008 (the “Second Extension”). The Credit
Agreement, First Amendment, Second Amendment, First Extension and Second
Extension together may be referred to as the “Amended Credit Agreement”; and

 

4.                                       The
Borrowers have requested certain accommodations of the Lenders, and the Lenders
are willing, upon the terms and conditions set forth herein, to extend various
reporting and maturity due dates set forth under the Amended Credit Agreement.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby covenant and agree to be bound as
follows:

 

Section 1.  Capitalized Terms.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to them in the Amended Credit Agreement, unless the context
shall otherwise require. The word “Detailed” is defined in the Second
Extension, and such definition shall continue to apply.

 

 

Section 2.  First and Second Amendment, Extensions.  This Third Amendment does not replace or
supplant the First and Second Amendment, or any continuing provisions of the
First Extension or Second Extension, except as specifically provided herein.
Borrowers shall fully perform their obligations under the Amended Credit
Agreement unless specifically modified herein. Nothing herein shall be deemed a
waiver by the Lenders of any term, condition, representation or covenant
applicable to Borrowers under the Amended Credit Agreement or any of the other
agreements, documents or instruments executed and delivered in connection
therewith, or of the covenants described therein, and failure of Borrowers to
comply shall be an Event of Default under the Amended Credit Agreement.

 

Section 3.  Resumption of Tranche A and Tranche B
Loans; Other Extensions.  The
parties acknowledge that the Borrowers have resumed principal payments under
all Tranche A and Tranche B loans.

 

Section 4.  Borrower Reporting Requirements.
All Borrower reporting requirements set out in the Amended Credit Agreement, as
defined above, shall continue to be observed by Borrowers.  In addition, within 24 hours of receiving a
letter of intent or other expression of interest, Borrowers will forward a
confidential copy of the same to the Administrative Agent.

 

Section 5.  Exploration
of Strategic Alternatives.  The Borrowers shall continue to
explore strategic alternatives upon such terms and conditions as may be
mutually agreed to, in writing, by the parties hereto.

 

Section 6.  Thompson Wastewater Escrow Account.

 

Section 6.1.  Continued Funding of Account.
Upon execution of this Third Amendment, Borrowers will deposit One Million
Dollars ($1,000,000.00) in to the account maintained by Lenders for costs
associated with the State of Iowa mandated construction at the Thompson IA
facility (previously defined as the “Permitted Work”). This account, which has
already been funded by the Borrowers to the extent of $800,000, has commonly
been referred to by the parties as the “Thompson Wastewater Escrow”. Sweeps of
cash from the Borrowers’ accounts for purposes of additional funding of the
Thompson Wastewater Escrow shall be made as follows: $200,000 in September 2008,
$200,000 in October 2008, $200,000 in November 2008, and $100,000 in December 2008.
The money shall be transferred to the Thompson Wastewater Escrow on the 11th business day of each month. The parties
acknowledge that funds in the approximate amount of $118,000 have been released
by the Administrative Agent from the Thompson Wastewater Escrow at the
Borrowers’ request for payment of costs comprising part of the Permitted Work.

 

Section 6.2  Use of Account. As
requested by the Borrowers, the Administrative Agent will act as the
disbursement agent for advances from the Thompson Wastewater Escrow, provided
that appropriately executed mechanic’s lien waivers and invoices matching the
project budget as tendered to Lenders will be required before funds will be
released for payment of third party invoices.

 

2

 

Section 7.    
Effectiveness of Amendments.  This Third Amendment shall become effective
upon delivery by the Borrowers of, and compliance by the Borrowers with, the
following:

 

7.1  This
Third Amendment, including the documents substantially in the same form as
those set forth on Exhibits 

A-1 and A-2, duly executed by each Borrower, Borrowers’ Agent, the
Administrative Agent and Lenders.

 

7.2  A copy of the limited liability company or
corporate resolutions of each Borrower authorizing the execution, delivery and
performance of this Third Amendment and any other instrument or agreement
executed by such Borrower in connection with this Third Amendment certified as
true and accurate by its Secretary or Assistant Secretary (or other appropriate
officer), along with a certification by such Secretary, Assistant Secretary or
officer (a) certifying that there has been no amendment to such Borrower’s
organizational documents since true and accurate copies of the same were
delivered to the Administrative Agent with a certificate of the Secretary of
such Borrower dated April 30, 2007, and (b) identifying each officer
of such Borrower authorized to execute this Third Amendment and any other
instrument or agreement executed by such Borrower in connection with this Third
Amendment (collectively, the “Third Amendment Documents”), and certifying as to
specimens of such officer’s signature and such officer’s incumbency in such
offices as such officer holds.

 

7.3  Reaffirmation of Security Documents by each
Borrower in substantially the same form of Exhibits A-1 and A-2 attached
hereto.

 

7.4  Receipt by the Administrative Agent of
executed legal opinions of counsel to the Borrowers in form and substance
reasonably satisfactory to the Lenders.

 

7.5  Payment to the Administrative Agent by the
Borrowers of an extension fee in the amount of $100,000.

 

7.6  The
Borrowers shall have satisfied such other conditions as specified by the
Administrative Agent, including payment of all unpaid legal fees and expenses
incurred by the Administrative Agent through the date of this Amendment in connection
with the Credit Agreement and the Third Amendment Documents. 

 

In addition,
within a reasonable time but not later than September 15, 2008, the
Borrowers shall provide:

 

7.7  Certified copies of all documents evidencing
any necessary company action, consent or governmental or regulatory approval
(if any) with respect to this Third Amendment.

 

7.8  A certificate of good standing for each
Borrower in the jurisdiction of its formation or incorporation and each other
jurisdiction where the character of the properties owned or leased by such
Borrower makes such qualification necessary,

 

3

 

certified by the appropriate governmental officials as of a date
acceptable to the Administrative Agent.

 

7.9  Results
of a recent lien search in each of the jurisdictions where the assets of each
Borrower and its Subsidiaries are located, and such search shall reveal no
Liens on any of the assets of such Borrower or its Subsidiaries except for
those Liens permitted by Section 6.13 of the Credit Agreement or
discharged on or prior to date hereof pursuant to a document reasonably
satisfactory to the Administrative Agent.

 

Section 8.  No Waiver.  Nothing herein shall
be deemed a waiver by the Lenders of any term, condition, representation or
covenant applicable to the Borrowers under the Amended Credit Agreement or any
of the other agreements, documents or instruments executed and delivered in
connection therewith, or of the covenants described therein. Borrowers shall
comply with any reporting requirements set out under the Amended Credit
Agreement.

 

Section 9.  Termination Date Extension – Revolving
Notes. The Termination Date as it applies to all
Revolving Loans shall be extended to November 1, 2009. The extension of
the Termination Date for the Revolving Loans likewise extends through November 1,
2009, the applicable dates for the Current Ratio, Working Capital, Leverage
Ratio, Fixed Charge Coverage Ratio, and Net Worth, as defined in the Amended
Credit Agreement. The One Million Dollar ($1,000,000.00) minimum EBITDA
requirement set forth in the Second Extension shall continue to apply.

 

Section 10.  Representations, Warranties, Authority, No
Adverse Claim.

 

10.1  Reassertion
of Representations and Warranties, No Default. Each
Borrower hereby represents that on and as of the date hereof and after giving
effect to this Third Amendment (a) all of the representations and
warranties contained in the Amended Credit Agreement are true, correct and
complete in all respects as of the date hereof as though made on and as of such
date, except for changes permitted by the terms of the Amended Credit
Agreement, and (b) there will exist no Default or Event of Default under
the Credit Agreement as amended by the First, Second, and Third Amendments on
such date which has not been waived by the Lenders.

 

10.2  Authority,
No Conflict, No Consent Required. Each Borrower
represents and warrants that such Borrower has the power and legal right and
authority to enter into the Third Amendment Documents and has duly authorized
as appropriate the execution and delivery of the Third Amendment Documents and
other agreements and documents executed and delivered by such Borrower in
connection herewith or therewith by proper company action, and none of the Third
Amendment Documents nor the agreements contained herein or therein contravenes
or constitutes a default under any agreement, instrument or indenture to which
such Borrower is a party or a signatory or a provision of such Borrower’s
articles of organization, bylaws or any other agreement or requirement of law,
or result in the imposition of any Lien on any of its property under any
agreement binding on or applicable to such Borrower or any of its property
except, if any, in favor of the Lenders. Each Borrower represents and warrants
that no consent, approval or

 

4

 

authorization of or registration or declaration with any Person,
including but not limited to any governmental authority, is required in connection
with the execution and delivery by such Borrower of the Third Amendment
Documents or other agreements and documents executed and delivered by such
Borrower in connection therewith or the performance of obligations of such
Borrower therein described, except for those which the Borrower has obtained or
provided and as to which the Borrower has delivered certified copies of
documents evidencing each such action to the Administrative Agent.

 

10.3  No
Adverse Claim. Each Borrower warrants,
acknowledges and agrees that no events have been taken place and no
circumstances exist at the date hereof which would give such Borrower a basis
to assert a defense, offset or counterclaim to any claim of any Lender with
respect to the Obligations.

 

Section 11.  Affirmation of Credit Agreement, Further
References, Affirmation of Security Interest. The
Lenders and each Borrower acknowledge and affirm that the Credit Agreement, as
previously and hereby amended, is hereby ratified and confirmed in all respects
and all terms, conditions and provisions of the Credit Agreement, except as
amended by the First Amendment, Second Amendment and Third Amendment shall
remain unmodified and in full force and effect. All references in any document
or instrument to the Credit Agreement are hereby amended and shall refer to the
Credit Agreement as amended by the First Amendment and Second Amendment and
further modified by this Third Amendment. Each Borrower confirms to the
Administrative Agent and the Lenders that the Obligations are and continue to
be secured by the security interests granted by the Borrowers in favor of the
Administrative Agent for the benefit of the Administrative Agent and the
Lenders under the Security Documents, and all of the terms, conditions,
provisions, agreements, requirements, promises, obligations, duties, covenants
and representations of the Borrowers under such documents and any and all other
documents and agreements entered into with respect to the obligations under the
Credit Agreement are incorporated herein by reference and are hereby ratified
and affirmed in all respects by each Borrower.

 

Section 12.  Merger and Integration, Superseding Effect.  This Third Amendment, from and after the date
hereof, embodies the entire agreement and understanding between the parties
hereto and supersedes and has merged into this Third Amendment all prior oral
and written agreements on the same subjects by and between the parties hereto,
occurring after the execution of the First Amendment and Second Amendment, with
the effect that this Third Amendment shall control with respect to the specific
subjects hereof and thereof.

 

Section 13.  Severability.  Whenever possible, each provision of this
Third Amendment and the Third Amendment Documents and any other statement,
instrument or transaction contemplated hereby or thereby or relating hereto or
thereto shall be interpreted in such manner as to be effective, valid and
enforceable under the applicable law of any jurisdiction, but, if any provision
of this Third Amendment, the Third Amendment Documents or any other statement,
instrument or transaction contemplated hereby or thereby or relating hereto or
thereto shall be held to be prohibited, invalid or unenforceable under the
applicable law, such provision shall be ineffective in such jurisdiction only
to the extent of such prohibition, invalidity or unenforceability, without
invalidating or rendering unenforceable the remainder of such

 

5

 

provision or the remaining provisions of this Third Amendment,  the other Third Amendment Documents or any
other statement, instrument or transaction contemplated hereby or thereby or
relating hereto or thereto in such jurisdiction, or affecting the effectiveness,
validity or enforceability of such provision in any other jurisdiction.

 

Section 14.  Successors.  The Third Amendment Documents shall be
binding upon the Borrowers and the Lenders and their respective successors and
assigns, and shall inure to the benefit of the Borrowers and the Lenders and the
successors and assigns of the Lenders.

 

Section 15.  Legal Expenses.  As provided in Section 9.2 of the Credit
Agreement, the Borrowers agree to reimburse the Administrative Agent, upon
request, for all reasonable out-of-pocket expenses (including attorney fees and
legal expenses of Kalina, Wills, Gisvold, & Clark PLLP, counsel for
the Administrative Agent) incurred in connection with the negotiation,
preparation and execution of the Third Amendment Documents and all other
documents negotiated, prepared and executed in connection with the Third
Amendment Documents, and in enforcing the obligations of the Borrowers under
the Third Amendment Documents, and to pay and save the Administrative Agent and
Lenders harmless from all liability for, any stamp or other taxes which may be
payable with respect to the execution or delivery of the Third Amendment
Documents, which obligations of the Borrowers shall survive any termination of
the Credit Agreement.

 

Section 16.  Release and Indemnification of Lenders.  Borrowers hereby
release the Administrative Agent and the Lenders and their respective
Affiliates (as defined in the Credit Agreement) and the directors, officers,
employees, attorneys and agents of the Administrative Agent and the Lenders and
their respective Affiliates, from any and all claims by Borrowers against the
foregoing arising from or related to the negotiation and execution of this
Third Amendment and the Third Amendment Documents.

 

Borrowers further hereby agree to defend, protect, indemnify and hold
harmless the Administrative Agent and the Lenders and their respective
Affiliates (as defined in the Credit Agreement) and the directors, officers,
employees, attorneys and agents of the Administrative Agent and the Lenders and
their respective Affiliates (all referred to hereafter as an “Indemnitee” or
cumulatively as “Indemnitees”) from and against any and all claims, actions,
damages, liabilities, judgments, costs and expenses imposed upon, incurred by
or asserted against any Indemnitee, whether direct, indirect or consequential
and whether based on any federal, state, local or foreign laws or regulations
under common law or on equitable cause, or on contract or otherwise:

 

(a)          by reason of, relating to or in connection
with the execution, delivery, performance or enforcement of any Loan Document,
any commitments relating thereto (including the Short Term Revolving Note), or
any transaction contemplated by any Loan Documents (including the Short Term
Revolving Note); or

(b)         by reason of, or relating to or in connection
with any credit extended or used under the Loan Documents or any act done or
omitted by any Person, or the exercise of any rights or remedies thereunder,
including the acquisition of any collateral by the

 

6

 

Lenders by way of foreclosure of the Lien thereon, deed or bill of sale
in lieu of such foreclosure or otherwise;

 

provided, however, that the Borrowers shall not be liable to any
Indemnitee for any portion of such claims, damages, liabilities and expenses
resulting from such Indemnitee’s gross negligence or willful misconduct.

 

This release and indemnification applies, without limitation, to any
act, omission, event or circumstance existing or occurring on or after the
payment in full of the Obligations, and shall be in addition to any liability
the Borrowers may otherwise have under the Amended Credit Agreement as further
amended by this Third Amendment.

 

Section 17.  Headings.  The headings of
various sections of this Third Amendment have been inserted for reference only
and shall not be deemed to be a part of this Third Amendment.

 

Section 18.  Counterparts.  The Third Amendment Documents may be executed
in several counterparts as deemed necessary or convenient, each of which, when
so executed, shall be deemed an original, provided that all such counterparts
shall be regarded as one and the same document, and any party to the Amendment
Documents may execute any such agreement by executing a counterpart of such
agreement.

 

Section 19.  Governing Law.  AT THE OPTION OF THE ADMINISTRATIVE AGENT,
THIS AGREEMENT AND THE OTHER AMENDMENT DOCUMENTS MAY BE ENFORCED IN ANY
FEDERAL COURT OR COLORADO STATE COURT SITTING IN CITY OR COUNTY OF DENVER; AND
EACH BORROWER CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND
WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT
ANY BORROWER COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNIDER ANY
TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP
CREATED BY THIS AGREEMENT, THE ADMINISTRATIVE AGENT AT ITS OPTION SHALL BE
ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED,
OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH
CASE DISMISSED WITHOUT PREJUDICE.

 

Section 20.  Waiver of Jury Trial.  EACH BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

7

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date and year first above written.

 

	
   

  	
  GOLDEN OVAL EGGS, LLC,

  
	
   

  	
  as a
  Borrower and the Borrowers’ Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas
  A. Powell

  
	
   

  	
  Thomas A.
  Powell, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MIDWEST INVESTORS OF IOWA,

  
	
   

  	
  COOPERATIVE, as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas
  A. Powell

  
	
   

  	
  Thomas A.
  Powell, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address for
  the Borrowers

  	
  GOECA, LP, as a Borrower

  
	
  For Purposes
  of Notice:

  	
  By its
  General Partner

  
	
   

  	
  GOEMCA, Inc.

  
	
  1800 Park
  Avenue East

  	
   

  
	
  Renville, MN
  56284

  	
  By:

  	
  /s/ Thomas
  A. Powell

  
	
  Fax: (320)
  329-3276

  	
  Thomas A.
  Powell, Chief Financial Officer

  
	
  Attention:

  	
   

  

 

8

 

	
  COBANK, ACB, as a Lender and as the

  	
   

  
	
  Administrative
  Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Ronald
  P. Seigley

  	
   

  	
   

  
	
  Name:

  	
  Ronald P.
  Seigley

  	
   

  	
   

  
	
  Title:

  	
  Vice
  President – Special Assets

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  all notices:

  
	
   

  	
  5500 South
  Quebec Street

  
	
   

  	
  Greenwood
  Village, CO 80111

  
	
   

  	
  PO. Box 5110

  
	
   

  	
  Denver, CO
  80217

  
	
   

  	
  Attention:
  Ron Seigley

  
	
   

  	
  Fax: (303)
  740-4021

  
	
   

  	
   

  
	
   

  	
   

  
	
  METROPOLITAN LIFE INSURANCE

  
	
  COMPANY, as a Bank and Lender (as to the
  Short Term Revolving Note)

  
	
   

  
	
  By:

  	
  /s/ Michael
  A. Wilson

  	
   

  	
   

  
	
  Name:

  	
  Michael A.
  Wilson

  	
   

  	
   

  
	
  Title:

  	
  Regional Director

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  funding notices:

  
	
   

  	
  4401 Westown
  Parkway, Suite 220

  
	
   

  	
  West Des
  Moines, IA 50266

  
	
   

  	
  Fax: (515)
  223-0757

  
	
   

  	
  Attention:
  Tony Jennings

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for
  all other notices:

  
	
   

  	
  4401 Westown
  Parkway, Suite 220

  
	
   

  	
  West Des
  Moines, IA 50266

  
	
   

  	
  Fax: (515)
  223-0757

  
	
   

  	
  Attention:
  Tony Jennings

  
							

 

9

 

EXHIBIT A-1

TO THIRD AMENDMENT

TO AMENDED AND RESTATED

CREDIT AGREEMENT

 

FORM OF REAFFIRMATION OF SECURITY
DOCUMENTS  (GOE/MII)

 

August    , 2008

 

CoBank, ACB, as Administrative Agent

5500 South Quebec Street

Greenwood Village, CO 80111

PO. Box 5110

Denver, CO 80217

Attention: Ron Seigley

Fax: (303) 740-4021

 

Re:          Security
Agreement dated September 13, 2004 (as the same has been or may be
amended, restated or otherwise modified from time to time, the “ Security
Agreement” executed by Golden Oval Eggs, LLC and Midwest Investors of Iowa,
Cooperative (collectively, the “Grantors”), in favor of CoBank, ACB, as
administrative agent (in such capacity, the “Administrative Agent”) to the
lenders party to the Credit Agreement described below (the “Lenders”), and
related Security Documents.

 

The Grantors, the Lenders and the Administrative Agent are parties to
an Amended and Restated Credit Agreement dated June 30, 2006, which
agreement was further amended by the First Amendment to Amended and Restated
Credit Agreement dated April 30, 2007, and further amended by the Second
Amendment to the Amended and Restated Credit Agreement dated October 19,
2007 (said amended agreement to be referred to hereafter as the “A & R
Credit Agreement”). The A & R Credit Agreement is being further
amended pursuant to a Third Amendment to Amended and Restated Credit Agreement
dated concurrently herewith between the Grantors and GOECA, LP (collectively
the “Borrowers”) the Lenders and the Administrative Agent. This will confirm
that the obligations of the Borrowers to the Administrative Agent or any Lender
under the A & R Credit Agreement, as amended by the Third Amendment,
and including the Short Term Revolving Note, constitute “Obligations” of the
Grantors to the Administrative Agent within the meaning of the Security
Documents. The undersigned confirms to the Administrative Agent and the Lenders
that all of the terms, conditions, provisions, agreements, requirements,
promises, obligations, duties, covenants and representations of the undersigned
under the Security Documents and any and all other documents and agreements
entered into with respect to the obligations under the Security Documents, are
incorporated herein by reference and are hereby ratified and affirmed in all
respects by the undersigned.

 

10

 

[EXHIBIT A-1 TO THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT]

 

	
   

  	
  GOLDEN OVAL EGGS, LLC

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MIDWEST INVESTORS OF IOWA,

  
	
   

  	
  COOPERATIVE

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
					

 

 

[ Signature Page to Reaffirmation of
Security Agreement]

 

[EXHIBIT A-1 TO THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT]

 

11

 

EXHIBIT A-2

 TO
THIRD AMENDMENT

TO AMENDED AND RESTATED

CREDIT AGREEMENT

 

FORM OF REAFFIRMATION OF SECURITY
DOCUMENTS (GOECA)

 

August     , 2008

 

CoBank, ACB, as Administrative Agent

5500 South Quebec Street

Greenwood Village, CO 80111

P0. Box 5110

Denver, CO 80217

Attention: Ron Seigley

Fax: (303) 740-4021

 

Re:          Security
Agreement dated June 30, 2006 (as the same has been or may be amended,
restated or otherwise modified from time to time, the “Security Agreement”
executed by GOECA, LP, a Delaware limited partnership (the “Grantor”), in favor
of CoBank, ACB, as administrative agent (in such capacity, the “Administrative
Agent”) to the lenders party to the Credit Agreement described below (the “Lenders”),
and related Security Documents.

 

The Grantor, the Lenders and the Administrative Agent are parties to an
Amended and Restated Credit Agreement dated June 30, 2006; which agreement
was further amended by the First Amendment to Amended and Restated Credit
Agreement dated April 30, 2007, and further amended by the Second
Amendment to the Amended and Restated Credit Agreement dated October 19,
2007 (said amended agreement to be referred to hereafter as the “A & R
Credit Agreement”). The A & R Credit Agreement is being further
amended pursuant to a Third Amendment to Amended and Restated Credit Agreement
dated concurrently herewith between the Grantor, Golden Oval Eggs, LLC, a
Delaware limited liability company, and Midwest Investors of Iowa, Cooperative,
an Iowa cooperative (collectively with Grantor, the “Borrowers”), the Lenders
and the Administrative Agent. This will confirm that the obligations of the
Borrowers to the Administrative Agent or any Lender under the A & R
Credit Agreement, as amended by the Third Amendment, and including the Short
Term Revolving Note, constitute “Obligations” of the Grantor to the
Administrative Agent within the meaning of the Security Documents. The
undersigned confirms to the Administrative Agent and the Lenders that all of
the terms, conditions, provisions, agreements, requirements, promises,
obligations, duties, covenants and representations of the undersigned under the
Security Documents and any and all other documents and agreements entered into
with respect to the obligations under the Security Documents, are incorporated
herein by reference and are hereby ratified and affirmed in all respects by the
undersigned.

 

12

 

[EXHIBIT A-2 TO THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT]

 

	
   

  	
  GOECA, LP, as Grantor

  
	
   

  	
  By its General Partner

  
	
   

  	
  GOEMCA, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Grantor

  
	
   

  	
  340 Dupont Avenue MB

  
	
   

  	
  Renville, MN 56284

  
	
   

  	
  Grantor’s Org. ID #4154844

  
					

 

[Signature Page to Reaffirmation of
Security Agreement]

 

[EXHIBIT A-2 TO THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT]

 

13Exhibit 10.2

 

Certain information has been deleted from this Exhibit and filed
separately with the Securities and Exchange Commission pursuant to a request
for confidential treatment under Rule 24b-2.

 

PULLET PRODUCTION AND SALE AGREEMENT

 

This Agreement is made effective August 1, 2008, by and between
Fort Recovery Equity, Inc., an Ohio cooperative association that is a
corporation (“FRE”), whose address is 2351 Wabash Road, Fort Recovery, Ohio
45846 and Golden Oval Eggs, LLC, a limited liability company (“Golden Oval”),
whose address is 1800 Park Avenue East, Renville, Minnesota 56284.

 

1.             Purpose.  The purpose of this Agreement is for Golden
Oval to contract with FRE for the production and sale of pullets to Golden Oval
in which FRE will purchase chicks, cause the chicks to be raised to pullets,
and FRE will cause the pullets to be sold and available as finished pullets for
delivery to Golden Oval.  Golden Oval
will take delivery and pay for pullets as provided in this Agreement.

 

2.             Pullet
Flocks.  Upon receipt and
acceptance of a purchase order and deposit from Golden Oval, FRE will deliver
to a pullet house of one of FRE’s Members a flock or successive flocks of one
day old chicks (a “Flock”) and all feeds and medicines necessary for each Flock
during the pullet growing cycle until the Flock is delivered from the pullet
house to Golden Oval, Flocks will be delivered according to the Pullet Growing Schedule attached to this
Agreement as Exhibit A.  FRE
will decide where the Flock will be housed. 
FRE will arrange for production of each Flock under one of its Pullet
Grower Agreements with a FRE Member. 
Under the Pullet Grower Agreement, FRE will be the exclusive agent for
the pullets with full authority to sell the Flock at the end of the pullet
growing cycle.  The parties anticipate
that Flocks will be placed and grown out under this Agreement as described in Exhibit A.

 

3.             Title To
Pullets.  Upon delivery of the
Flock to the pullet house, title to the Flock will pass to FRE’s Member,
subject to FRE’s lien, agency, and exclusive right to sell the Flock as
provided in a Pullet Grower Agreement between FRE’s Member and FRE, which is
not part of this Agreement. FRE will assure that clear title to the pullets is
transferred to Golden Oval upon sale and delivery of the pullets to Golden
Oval.

 

4.             Pullet
Production Procedures.  FRE’s Member will grow out the
Flock under FRE’s management and supervision, using FRE feed, production forms,
and Flock health, management and biosecurity programs.

 

5.             Pullet
House.  FRE will provide for
each Flock, proper housing, equipment, heat, water, light, ventilation, loading
facility, and labor to feed, care for, and ship each Flock in accordance with
good poultry husbandry and pullet production practices, and in accordance with
applicable state and federal law.  Proper
equipment will include, without limitation, equipment reasonably necessary to
protect each Flock from power failures.

 

6.             FRE’s
Responsibilities.  FRE will provide or arrange under
FRE’s Pullet Grower Agreement with FRE’s Member to:

 

1

 

(A)          Pullet House; Manure.  Maintain
the pullet house in good condition, repair, and sanitary working order.  Manure from each Flock will be the property
of FRE’s Member and the Member will provide for proper handling and disposal of
the manure;

 

(B)           Care and Feeding.  Maintain, feed and
care for each Flock in accordance with standards of good poultry husbandry,
keeping each Flock in a healthy condition; however, Golden Oval will accept and
be responsible for mortality losses in the Flock in the normal course of pullet
grow out;

 

(C)           Insurance.  Maintain in force property and
casualty insurance and general liability insurance covering the Flock and
public liability, property damage, and personal injury from acts or omissions
of FRE and its Member in the conduct of growing out each Flock;

 

(D)          Additional Services.  Trim
beaks and spray for mites, flies, and  other
insects using products approved by FRE;

 

(E)           Limited Access to  Pullet House.  Allow no one in the
pullet house other than employees of the Member and authorized employees of
FRE, and follow FRE’s biosecurity measures, Because of the recognized dangers
in the  spread of infections and
contagious diseases, FRE’s Member will prevent persons employed in the care of
and feeding of each Flock, from visiting other poultry farms except under
special precautions recommended by FRE;

 

(F)           Golden Oval Access.  Permit
Golden Oval’s authorized employees to inspect the Flock and the pullet house at reasonable times with prior notice and
subject to FRE’s biosecurity measures;

 

(G)           Production Records.  Prepare
and submit Flock production records to Golden Oval as requested;

 

(H)          Access For Load Out.  Furnish
and maintain sufficient access driveways to allow pick-up by trucks of Golden
Oval or its designees;

 

(I)            Grower Payments.  FRE will be
responsible for grower payments to be made under the Pullet Grower Agreement.

 

7.             Purchase
and Sale of Pullets.  FRE  will grow out the pullet Flock(s) and sell the pullets
to Golden Oval F.O.B. the pullet house free and clear of any lien or
encumbrance, including any lien or encumbrance of a grower for which FRE will
have sole responsibility, and Golden Oval will purchase the pullets contracted
for under this Agreement.

 

8.             Purchase
Price.  The purchase price for pullets is
calculated on a cost plus margin formula as follows:

 

(A)          Feed.  Feed at FRE’s ingredient cost plus
$[***] per ton for grinding, mixing, and delivery and $[***] per ton margin;

 

2

 

(B)           Chicks. 
Chicks constituting a Flock to be grown out under this Agreement at
FRE’s acquisition cost from Hyline International, plus $[***] per finished
pullet delivered;

 

(C)           Animal Health.  FRE’s cost for vaccines and other animal
health products and services furnished to the Flock;

 

(D)          Beak Trimming and Other Services.  FRE’s cost for beak trimming, labor to load
out finished pullets, and other additional services requested by Golden Oval;
and

 

(E)           Extended Grow Out.  If the pullet grow out exceeds the “Age at
move” in Exhibit A, an additional $[***] per week per pullet.

 

9.             Payment;
Advance Deposit.  Golden Oval
must make advance deposits and pay certain cost components of the pullet
purchase price before and during the term of each Flock grow out as assurance
of Golden Oval’s performance in purchasing and paying for pullets contracted
for under this Agreement.  The deposits
and payment of costs are as follows:

 

(A)          Deposits:

 

(i)            $[***]
per chick placed, to be paid at least seven (7) days before Flock is
placed in the pullet house;

 

(ii)           $[***]
per chick placed, to be paid before the pullets are four (4) weeks old;

 

(iii)          $[***]
per chick placed, to be paid before the pullets are ten (10) weeks old;
and

 

(iv)          $[***]
per chick placed to be paid before the pullets are sixteen (16) weeks old.

 

(v)           These
deposits will be held by FRE and credited toward the purchase price of pullets
upon the delivery and sale of pullets to Golden Oval.  If Golden Oval does not make timely payment
of these deposits, FRE’s pullet growing commitments under this Agreement are
automatically cancelled and any deposits received by FRE forfeit to FRE as
liquidated damages for Golden Oval’s default, in addition to other amounts owed
by Golden Oval to FRE under this Agreement.

 

(B)           Payment of Costs.  Golden Oval must pay FRE the following pullet
purchase price cost components within seven (7) days from Golden Oval’s
receipt of invoice:

 

(i)            Feed
used to feed Flocks, to be invoiced weekly;

 

3

 

(ii)           Animal
Health, to be invoiced as costs are incurred for the Flocks, but no more
frequently than weekly; and

 

(iii)          Beak
trimming, load out labor, and other services requested by Golden Oval for the
Flocks, to be invoiced as incurred.

 

(C)           Settlement Of Purchase Price And Sale.  FRE will prepare a settlement statement for
each Flock, which will be a legally enforceable bill of sale of the pullets to
Golden Oval, upon delivery and sale of the pullets.  The settlement statement will:

 

(i)            Apply
Golden Oval’s deposits and payments made under section 9 to the purchase price
of the pullets that is determined under section 8;

 

(ii)           Determine
any difference between the payments and the purchase price; and

 

(iii)          FRE
will bill or credit Golden Oval for any under or over payment of the purchase
price on a per Flock basis.

 

The sale of pullets under this Agreement will occur only when the
settlement statement is accepted by both parties.

 

10.           FRE Is
Exclusive Agent.  FRE will
contract with growers to be the exclusive agent for the sale of the pullets of
each Flock to Golden Oval.  Golden Oval
will not sell, encumber or otherwise dispose of any of its rights under this
Agreement or any of the pullets before sale and delivery of the pullets to
Golden Oval other than as provided in Section 12.  As consideration and reimbursement for all of
the payments, inputs and other costs and expenses that FRE furnishes and the
grower payments to be made by FRE, FRE is entitled to, and must receive, control
and have exclusive ownership of all revenues and proceeds from the sale or
other disposition of each Flock, including, without limitation, the proceeds of
any insurance obtained by FRE or FRE growers on the Flock.

 

11.           Transport.  FRE will arrange and pay for transport of
chicks to the pullet house and any movement of the chicks during pullet grow
out.  Golden Oval will purchase the
pullets F.O.B. the pullet house. Golden Oval will arrange and pay for transport
of the pullets from the pullet house upon delivery and sale of the pullets to
Golden Oval.

 

12.           No
Assignment.  Golden Oval may
not assign or transfer its rights or obligations under this Agreement without
written consent of FRE, which may not be unreasonably withheld.  FRE may not assign or transfer its rights or
obligations under this Agreement without written consent of Golden Oval.

 

13.           No Lien.  Golden Oval will not permit any encumbrance
on the pullets or the proceeds of the pullets until after delivery and full
payment of the purchase price.  FRE must
transfer the pullets to Golden Oval free and clear of any lien or encumbrance,
including any interest of a grower under FRE’s Pullet Grower Agreement.

 

4

 

14.           Independent
Contractor.  This Agreement is not intended to
create a joint venture or partnership between FRE and Golden Oval but rather,
the relationship of seller and purchaser wherein FRE produces and sells pullets
to Golden Oval and Golden Oval purchases them. FRE is an independent livestock
producer and not an employee or agent of Golden Oval.

 

15.           Notice.  All
notices required by or relating to this Agreement must be in writing and may be
delivered either in person or by fax, e-mail or regular U.S. Mail to the
addresses appearing in this Agreement.

 

16.           Term of
Agreement.  The term of this Agreement begins
on August 1, 2008 and continues indefinitely until terminated by either
party.  The parties intend that the term
of this Agreement will continue throughout the Pullet Growing Schedule attached
to this Agreement as Exhibit A.  Either
party may terminate this Agreement by written notice given to the other at the
address below with a written copy to the chief executive officer of FRE and
Golden Oval at least 60 days before the intended termination date, except that
this Agreement will continue throughout the pullet grow out of any Flock placed
before the intended termination date.

 

17.           Entire
Agreement.  This Agreement is the entire
agreement between FRE and Golden Oval with respect to its subject matter.  This Agreement may not be amended except in a
writing signed by both parties.

 

18.           Applicable
Law.  This Agreement must be construed
and interpreted in accordance with Ohio law.

 

The parties have signed this Agreement on the dates opposite their
signature, to be effective as of August 1, 2008.

 

	
   

  	
   

  	
  FORT RECOVERY

  EQUITY, INC. 23.51

  Wabash Road

  
	
   

  	
   

  	
  Fort Recovery, Ohio 45846

  
	
   

  	
   

  	
  Fax: 419-375-4838

  
	
   

  	
   

  	
  E-mail: bill.glass@fort-equity.com

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  8-22-08

  	
   

  	
   

  	
  By

  	
  /s/ William Glass

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  William Glass, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GOLDEN OVAL 

  EGGS, LLC 1800 

  Park Avenue East

  
	
   

  	
   

  	
  Renville, Minnesota 56284

  
	
   

  	
   

  	
  Fax: 320-329-8136

  
	
   

  	
   

  	
  E-mail: jwalker@geggs.net

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  8-19-08

  	
   

  	
   

  	
  By

  	
  /s/ Jeff Walker

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Jeff Walker, Director of Operations

  

 

5

 

PULLET PRODUCTION AND SALE AGREEMENT

 

EXHIBIT A

 

Fort Recovery Equity, Inc, / Golden Oval
Eggs, LLC

Pullet Growing Schedule

 

	
  Flock #

  	
   

  	
  Chick placed

  	
   

  	
  Hatch Date

  	
   

  	
  Date Moved to Lay

  house

  	
   

  	
  Age at

  move

  	
   

  
	
  1

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  2

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  3

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  4

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  5

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  6

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  7

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  8

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  9

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  10

  	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]