Document:

EXHIBIT
10.02

 

AMENDED
AND RESTATED

SUBSIDIARY
GUARANTY

 

THIS
AMENDED AND RESTATED SUBSIDIARY GUARANTY is dated as of May 14, 2014, and made by the Persons listed on the signature pages hereof
(such Persons so listed being, collectively, the “Guarantors” and, individually, each a “Guarantor”)
in favor of Duane Spader (“Lender”).

 

R
E C I T A L S

 

WHEREAS,
Verity Farms, L.L.C. (herein, “Borrower”) and Lender have entered into a Revolving Credit Agreement
dated as of the date hereof (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”;
the capitalized terms defined therein and not otherwise defined herein being used herein as therein defined).

 

WHEREAS,
this document is an amendment and restatement of a Subsidiary Guaranty entered into between the parties on or about October 13,
2013.

 

NOW,
THEREFORE, in consideration of the premises and in order to induce the Lender to make advances under the Credit Agreement, each
Guarantor, jointly and severally with each other Guarantor, hereby agrees as follows:

 

Section
1. Guaranty; Limitation of Liability.

 

 (a)
Each Guarantor hereby absolutely, unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled
maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all obligations, indebtedness and
liabilities of each other Obligated Party now or hereafter existing under or in respect of the Loan Documents, including, without
limitation, the Obligations (as defined  in the Credit Agreement) (including, without limitation, any extensions, modifications,
substitutions, amendments or renewals of any or all of the foregoing obligations), whether direct or indirect, absolute or contingent,
and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such
obligations being the “Guaranteed Obligations”), and agrees to pay any and all expenses (including,
without limitation, reasonable fees and expenses of counsel) incurred by the Lender in enforcing any rights under this Guaranty
or any other Loan Document. Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to
all amounts that constitute part of the Guaranteed Obligations and would be owed by any other Obligated Party to Lender under
or in respect of the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving such other Obligated Party. Notwithstanding the terms of the Credit Agreement or
any related document, as concerns the obligations of each Guarantor hereunder with respect to the Guaranteed Obligations, prepayment
of the Guaranteed Obligations shall be required by a Guarantor hereunder each time (to be paid within ten (10) days thereafter)
such Guarantor or any Affiliate thereof raises, from time to time, funds through the sales of equity interests in such Guarantor
or its Affiliates or obtains funds by borrowing from other sources; provided that (i) this prepayment requirement shall only apply
to funds received by a Guarantor or any Affiliate thereof after September 30, 2015, and then, after such date, only to sales of
equity interests or borrowings from other sources if the total funds generated thereby from and after October 1, 2015, exceed
Five Hundred Thousand Dollars ($500,000.00), and (ii) the total amount of any such prepayment required at a particular time by
a Guarantor hereunder, together with any prepayment then due under similar prepayment provisions included in other guarantees
executed by a Guarantor or its Affiliates in favor of Lender, is limited to fifty percent (50%) of the amount of funds then raised
by such sale of equity interests or borrowings.

 

    	 

    	 

    

 

  (b) Each Guarantor, and by its acceptance of this Guaranty, the Lender, hereby confirms that it is the intention of all such Persons that this Guaranty and the obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law (as hereinafter defined), the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the obligations of each Guarantor hereunder. To effectuate the foregoing intention, the Lender and the Guarantors hereby irrevocably agree that the obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance. For purposes hereof, “Bankruptcy Law” means Title 11, U.S. Code, or any similar foreign, federal or state law for the relief of debtors.

 

  (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to Lender under this Guaranty or any other guaranty, such Guarantor will contribute, to the maximum extent permitted by law, such amounts to each other Guarantor and each other guarantor so as to maximize the aggregate amount paid to the Lender under or in respect of the Loan Documents.

 

Section
2. Guaranty Absolute. Each Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance with
the terms of the Loan Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of Lender with respect thereto. The obligations of each Guarantor under or in respect of this
Guaranty are independent of the Guaranteed Obligations or any other obligations of any other Obligated Party under or in respect
of the Loan Documents, and a separate action or actions may be brought and prosecuted against each Guarantor to enforce this Guaranty,
irrespective of whether any action is brought against Borrower or any other Obligated Party or whether Borrower or any other Obligated
Party is joined in any such action or actions. The liability of each Guarantor under this Guaranty shall be irrevocable, absolute
and unconditional irrespective of, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire
in any way relating to, any or all of the following:

 

 (a) any
lack of validity or enforceability of any Loan Document or any agreement or instrument relating thereto;

 

 (b) any
change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any other
obligations of any other Obligated Party under or in respect of the Loan Documents, or any other amendment or waiver of or any
consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting
from the extension of additional credit to any Obligated Party or any of its Subsidiaries or otherwise;

 

    	- 2 -

    	 

    

 

 (c) any
taking, exchange, release or non-perfection of any Collateral or any other collateral, or any taking, release or amendment or
waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations;

 

 (d) any
manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations,
or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations
or any other obligations of any Obligated Party under the Loan Documents or any other assets of any Obligated Party or any of
its Subsidiaries;

 

 (e) any
change, restructuring or termination of the corporate structure or existence of any Obligated Party or any of its Subsidiaries;

 

 (f) any
failure of Lender to disclose to any Obligated Party any information relating to the business, condition (financial or otherwise),
operations, performance, properties or prospects of any other Obligated Party now or hereafter known to Lender (each Guarantor
waiving any duty on the part of the Lender to disclose such information);

 

 (g) the
failure of any other Person to execute or deliver this Guaranty or any other guaranty or agreement or the release or reduction
of liability of any Guarantor or other guarantor or surety with respect to the Guaranteed Obligations; or

 

 (h) any
other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation
by Lender that might otherwise constitute a defense available to, or a discharge of, any Obligated Party or any other guarantor
or surety.

 

This Guaranty
shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations
is rescinded or must otherwise be returned by Lender or any other Person upon the insolvency, bankruptcy or reorganization of
Borrower or any other Obligated Party or otherwise, all as though such payment had not been made.

 

Section
3. Waivers and Acknowledgments.

 

 (a) Each
Guarantor hereby unconditionally and irrevocably waives  promptness, diligence, notice of acceptance, presentment, demand for
performance,  notice of nonperformance, default, acceleration, protest or dishonor and any other notice  with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement  that Lender protect, secure, perfect or insure any
lien or any property subject thereto or  exhaust any right or take any action against any Obligated Party or any other Person
or  any Collateral.

 

 (b) Each
Guarantor hereby unconditionally and irrevocably waives any right  to revoke this Guaranty and acknowledges that this Guaranty
is continuing in nature and  applies to all Guaranteed Obligations, whether existing now or in the future.

 

    	- 3 -

    	 

    

 

 (c) Each
Guarantor hereby unconditionally and irrevocably waives (i) any  defense arising by reason of any claim or defense based upon
an election of remedies by  Lender that in any manner impairs, reduces, releases or otherwise adversely affects the  subrogation,
reimbursement, exoneration, contribution or indemnification rights of such  Guarantor or other rights of such Guarantor to
proceed against any of the other Obligated  Parties, any other guarantor or any other Person or any Collateral and (ii) any
defense  based on any right of set-off or counterclaim against or in respect of the Obligations of  such Guarantor hereunder.

 

 (d) Each
Guarantor hereby unconditionally and irrevocably waives any duty  on the part of Lender to disclose to such Guarantor any matter,
fact or thing relating to  the business, condition (financial or otherwise), operations, performance, properties or  prospects
of any other Obligated Party or any of its Subsidiaries now or hereafter known  by Lender.

 

 (e) Each
Guarantor acknowledges that it will receive substantial direct and  indirect benefits from the financing arrangements contemplated
by the Loan Documents  and that the waivers set forth in Section 2 and this Section 3 are knowingly made in  contemplation
of such benefits.

 

Section
4. Subrogation. Each Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it may now
have or hereafter acquire against Borrower, any other Obligated Party or any other insider guarantor that arise from the existence,
payment, performance or enforcement of such Guarantor’s Obligations under or in respect of this Guaranty or any other Loan
Document, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification
and any right to participate in any claim or remedy of Lender against Borrower, any other Obligated Party or any other insider
guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common
law, including, without limitation, the right to take or receive from Borrower, any other Obligated Party or any other insider
guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account
of such claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this Guaranty
shall have been paid in full in cash and the commitments of Lender under the Credit Agreement shall have expired or been terminated.
If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence at any time prior to the latest
of (a) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty and (b) the
Termination Date, such amount shall be received and held in trust for the benefit of Lender, shall be segregated from other property
and funds of such Guarantor and shall forthwith be paid or delivered to Lender in the same form as so received (with any necessary
endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty,
whether matured or unmatured, in accordance with the terms of the Loan Documents, or to be held as Collateral for any Guaranteed
Obligations or other amounts payable under this Guaranty thereafter arising. If (i) any Guarantor shall make payment to Lender
of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash, and (iii) the Termination Date shall have occurred, Lender will, at such Guarantor’s
request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation
or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations
resulting from such payment made by such Guarantor pursuant to this Guaranty.

 

    	- 4 -

    	 

    

 

Section
5. Representations and Warranties. Each Guarantor hereby makes each representation and warranty made in the Loan Documents
by Borrower with respect to such Guarantor and each Guarantor hereby further represents and warrants as follows:

 

 (a) There
are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived.

 

 (b) Such
Guarantor has, independently and without reliance upon Lender and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Guaranty and each other Loan Document to which it is or is to be
a party, and such Guarantor has established adequate means of obtaining from each other Obligated Party on a continuing basis
information pertaining to, and is now and on a continuing basis will be completely familiar with, the business, condition (financial
or otherwise), operations, performance, properties and prospects of such other Obligated Party.

 

(c) The
value of the consideration received and to be received by such Guarantor as a result of Lender making extensions of credit to
Borrower and Guarantor executing and delivering this Guaranty is reasonably worth at least as much as the liability and obligation
of Guarantor hereunder, and such liability and obligation have benefited and may reasonably be expected to benefit Guarantor directly
or indirectly.

 

Section
6. Covenants. Each Guarantor covenants and agrees that, so long as any part of the Guaranteed Obligations shall remain
unpaid or Lender shall have any commitment under the Credit Agreement, such Guarantor will perform and observe, and cause each
of its Subsidiaries to perform and observe, all of the terms, covenants and agreements set forth in the Credit Agreement and the
other Loan Documents on its or their part to be performed or observed or that Borrower has agreed to cause such Guarantor or such
Subsidiaries to perform or observe.

 

Section
7. Amendments. No amendment or waiver of any provision of this Guaranty and no consent to any departure by any Guarantor
therefrom shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which given.

 

Section
8. Notices. All notices and other communications provided for hereunder shall be given in accordance with Section 9.1 of
the Credit Agreement, with any notice to a Guarantor to be addressed to it in care of the Borrower at the Borrower’s address
specified therein. Delivery by telecopier of an executed counterpart of a signature page to any amendment or waiver of any provision
of this Guaranty to be executed and delivered hereunder shall be effective as delivery of an original executed counterpart thereof.

 

Section
9. No Waiver; Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided
by law.

 

    	- 5 -

    	 

    

 

Section
10. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, Lender and each of its Affiliates
is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all
indebtedness at any time owing by Lender or such Affiliate to or for the credit or the account of any Guarantor against any and
all of the obligations of such Guarantor now or hereafter existing under the Loan Documents, irrespective of whether Lender shall
have made any demand under this Guaranty or any other Loan Document and although such obligations may be unmatured. Lender agrees
promptly to notify such Guarantor after any such set-off and application; provided, however, that the failure to
give such notice shall not affect the validity of such set-off and application. The rights of Lender and its Affiliates under
this Section 11 are in addition to other rights and remedies (including, without limitation, other rights of set-off) that Lender
and its Affiliates may have.

 

Section
11. Indemnification.

 

Without
limitation on any other obligations of any Guarantor or remedies of the Lender under this Guaranty, each Guarantor shall, to the
fullest extent permitted by law, indemnify, defend and save and hold harmless Lender and its Affiliates and their respective officers,
directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall
pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and
expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party in connection with or as a result
of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of any Obligated Party enforceable
against such Obligated Party in accordance with their terms.

 

Each
Guarantor hereby also agrees that none of the Indemnified Parties shall have any liability (whether direct or indirect, in contract,
tort or otherwise) to any of the Guarantors or any of their respective Affiliates or any of their respective officers, directors,
employees, agents and advisors, and each Guarantor hereby agrees not to assert any claim against any Indemnified Party on any
theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the Credit
Agreement or the advance of loan proceeds thereunder.

 

Without
prejudice to the survival of any of the other agreements of any Guarantor under this Guaranty or any of the other Loan Documents,
the agreements and obligations of each Guarantor contained in Section 1(a) (with respect to enforcement expenses), the last sentence
of Section 2 and all of this Section 11 shall survive the payment in full of the Guaranteed Obligations and all of the other amounts
payable under this Guaranty.

 

Section
12. Subordination. Each Guarantor hereby subordinates any and all debts, liabilities and other obligations owed to such
Guarantor by each other Obligated Party (the “Subordinated Obligations”) to the Guaranteed Obligations
to the extent and in the manner hereinafter set forth.

 

Section
13. Prohibited Payments, Etc. Except during the continuance of an Event of Default (including the commencement and continuation
of any proceeding under any Bankruptcy Law relating to any other Obligated Party), each Guarantor may receive regularly scheduled
payments from any other Obligated Party on account of the Subordinated Obligations. After the occurrence and during the continuance
of any Event of Default (including the commencement and continuation of any proceeding under any Bankruptcy Law relating to any
other Obligated Party), however, unless the Lender otherwise agrees, no Guarantor shall demand, accept or take any action to collect
any payment on account of the Subordinated Obligations.

 

    	- 6 -

    	 

    

 

Section
14. Prior Payment of Guaranteed Obligations. In any proceeding under any Bankruptcy Law relating to any other Obligated
Party, each Guarantor agrees that the Lender shall be entitled to receive payment in full in cash of all Guaranteed Obligations
(including all interest and expenses accruing after the commencement of a proceeding under any Bankruptcy Law, whether or not
constituting an allowed claim in such proceeding (“Post Petition Interest”)) before such Guarantor receives
payment of any Subordinated Obligations.

 

 Section
15. Turn-Over. After the occurrence and during the continuance of any Event of Default (including the commencement and
continuation of any proceeding under any Bankruptcy Law relating to any other Obligated Party), each Guarantor shall, if the Lender
so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the Lender and deliver
such payments to the Lender on account of the Guaranteed Obligations (including all Post Petition Interest), together with any
necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the liability of such
Guarantor under the other provisions of this Guaranty.

 

Section
16. Authorization. After the occurrence and during the continuance of any Event of Default (including the commencement
and continuation of any proceeding under any Bankruptcy Law relating to any other Obligated Party), the Lender is authorized and
empowered (but without any obligation to so do), in its discretion, (i) in the name of each Guarantor, to collect and enforce,
and to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Guaranteed Obligations
(including any and all Post Petition Interest), and (ii) to require each Guarantor (A) to collect and enforce, and to submit claims
in respect of, Subordinated Obligations and (B) to pay any amounts received on such obligations to the Lender for application
to the Guaranteed Obligations (including any and all Post Petition Interest).

 

Section
17. Continuing Guaranty; Assignments under the Credit Agreement. This Guaranty is a continuing guaranty and shall (a) remain
in full force and effect until the latest of (i) the payment in full in cash of the Guaranteed Obligations and all other amounts
payable under this Guaranty and (ii) the Termination Date, (b) be binding upon the Guarantor, its successors and assigns and (c)
inure to the benefit of and be enforceable by the Lender and its successors, transferees and assigns. Without limiting the generality
of clause (c) of the immediately preceding sentence, Lender may assign or otherwise transfer all or any portion of its rights
and obligations under the Credit Agreement (including, without limitation, all or any portion of its commitments, the advances
owing to it and the Note or Notes held by it) to any other Person, and such other Person shall thereupon become vested with all
the benefits in respect thereof granted to Lender herein or otherwise. No Guarantor shall have the right to assign its rights
hereunder or any interest herein without the prior written consent of the Lender.

 

Section
18. Execution in Counterparts. This Guaranty and each amendment, waiver and consent with respect hereto may be executed
in any number of counterparts and by different parties thereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Guaranty by telecopier shall be effective as delivery of an original executed counterpart
of this Guaranty.

 

    	- 7 -

    	 

    

 

Section
19. Governing Law; Jurisdiction.

 

This
Guaranty shall be governed by, and construed in accordance with, the laws of the State of South Dakota.

 

Each
Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
South Dakota state court sitting in Minnehaha County, South Dakota, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Guaranty or any of the other Loan Documents to which it is or is to be a party,
or for recognition or enforcement of any judgment, and each Guarantor hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in any such South Dakota state court. Each Guarantor agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit
on the judgment or in any other manner provided by law. Nothing in this Guaranty or any other Loan Document shall affect any right
that any party may otherwise have to bring any action or proceeding relating to this Guaranty or any other Loan Document in the
courts of any jurisdiction.

 

Each
Guarantor irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty
or any of the other Loan Documents to which it is or is to be a party in any South Dakota state court. Each Guarantor hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such suit, action or
proceeding in any such court.

 

IN
WITNESS WHEREOF, each Guarantor has caused this Amended and Restated Guaranty to be duly executed and delivered by its officer
thereunto duly authorized as of the date first above written.

 

	 	Verity Meats, LLC
	 	 	 
	 	By:	/s/
    VERLYN SNELLER
	 	Its:	 
	 	 	 
	 	Verity Grains, LLC
	 	 	 
	 	By:	/s/
    VERLYN SNELLER
	 	Its:	 
	 	 	 
	 	Verity Water LLC
	 	 	 
	 	By:	/s/
    VERLYN SNELLER
	 	Its:	 

 

    	- 8 -EXHIBIT
10.03

 

AMENDED
AND RESTATED

SUBSIDIARY
SECURITY AGREEMENT

 

THIS
AMENDED AND RESTATED SUBSIDIARY SECURITY AGREEMENT is dated as of May 14, 2014 and made by and among the Persons listed on the
signature pages hereof (collectively, the “Grantors”), and DUANE SPADER (the “Lender”).

 

R
E C I T A L S

 

WHEREAS,
Verity Farms, L.L.C., a South Dakota limited liability company (“Borrower”) and the Lender have
entered into a Revolving Credit Agreement of even date herewith (said Agreement, as it may hereafter be amended, supplemented
or otherwise modified from time to time, being the “Credit Agreement”). (Terms defined in the Credit
Agreement and not otherwise defined in this Agreement are used in this Agreement as defined in the Credit Agreement.)

 

WHEREAS,
this document is an amendment and restatement of a Subsidiary Security Agreement entered into between the parties on or about
October 13, 2013.

 

NOW,
THEREFORE, in consideration of the premises and in order to induce the Lender to make further advances under the Credit Agreement,
each Grantor hereby agrees with the Lender as follows:

 

Section
1.Grant of Security. Each Grantor hereby grants to the Lender a security interest in such Grantor’s right, title
and interest in and to all of Grantor’s goods, assets and properties of all kinds and descriptions, wherever the same may
now or hereafter be located, now existing and/or owned or hereafter arising and/or acquired, or in which Grantor has or hereafter
may acquire an interest, to the extent of such interest (collectively, the “Collateral”), including
without limitation the following:

 

All
accounts, deposit accounts, equipment, inventory, fixtures, contract rights, investment property, chattel paper, documents, instruments,
commercial tort claims and general intangibles (including payment intangibles), and all other personal property, whether now owned
or hereafter acquired and wherever arising or located, and all products and proceeds thereof, and all accessions, substitutions
and replacements thereof, including, without limitation, the personal property described on Schedule I attached hereto.

 

Section
2.Security for Obligations. This Agreement secures, in the case of each Grantor, the payment of all obligations
of each Grantor to Lender now or hereafter existing under the Loan Documents, including, without limitation, the
“Guaranteed Obligations” under the Subsidiary Guaranty, whether such obligations are direct or indirect, absolute
or contingent, and whether for principal, reimbursement obligations, interest, fees, premiums, penalties, indemnifications,
contract causes of action, costs, expenses or otherwise (all such obligations being the “Secured
Obligations”). Notwithstanding the terms of the Credit Agreement or any related document, as concerns the
obligations of each Grantor with respect to the Secured Obligations, prepayment is required by a Grantor under the Subsidiary
Guaranty each time (to be paid within ten (10) days thereafter) that such Grantor or any Affiliate thereof raises, from time
to time, funds through the sales of equity interests in Grantor or its Affiliates or obtains funds by borrowing from other
sources; provided that (i) this prepayment requirement shall only apply to funds received by Grantor or any Affiliate thereof
after September 30, 2015, and then, after such date, only to sales of equity interests or borrowings from other sources if
the total funds generated thereby from and after October 1, 2015, exceed Five Hundred Thousand Dollars ($500,000.00), and
(ii) the total amount of any such prepayment required at a particular time under such Subsidiary Guaranty, together with any
prepayment then due under similar prepayment provisions included in other guarantees executed by a Grantor or its Affiliates
in favor of Lender, is limited to fifty percent (50%) of the amount of funds then raised by such sale of equity interest or
borrowings. Without limiting the generality of the foregoing, this Agreement secures, as to each Grantor, the payment of all
amounts that constitute part of the Secured Obligations and would be owed by such Grantor to Lender under the Loan Documents
but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving an Obligated Party.

 

    	 

    	 

    

 

Section
3.Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under
the contracts and agreements included in such Grantor’s Collateral to the extent set forth therein to perform all of its
duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Lender
of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements
included in the Collateral and (c) Lender shall not have any obligation or liability under the contracts and agreements included
in the Collateral by reason of this Agreement or any other Loan Document, nor shall Lender be obligated to perform any of the
obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

 

Section
4.Covenants from Credit Agreement. Each Grantor covenants and agrees that, so long as any part of the Secured Obligations
shall remain unpaid or Lender shall have any commitment under the Credit Agreement, such Grantor will perform and observe all
of the terms, covenants and agreements set forth in the Credit Agreement and the other Loan Documents on its part to be performed
or observed or that Borrower has agreed to cause such Grantor to perform or observe.

 

Section
5.Representations and Warranties. Each Grantor represents and warrants as follows:

 

(a)Such
Grantor’s exact legal name, as defined in Section 9-503(a) of the UCC, is correctly set forth in Schedule II hereto. Such
Grantor is located (within the meaning of Section 9-307 of the UCC) and has its chief executive office in the state or jurisdiction
set forth in Schedule II hereto. The information set forth in Schedule II hereto with respect to such Grantor is true and accurate
in all respects. Such Grantor has not previously changed its name, location, chief executive office, place where it maintains
its agreements, type of organization, jurisdiction of organization or organizational identification number from those set forth
in Schedule II hereto. All of the equipment and inventory of such Grantor are located at the locations specified for such Grantor
in Schedule II hereto.

 

(b)Such
Grantor is the legal and beneficial owner of the Collateral of such Grantor free and clear of any lien, security interest, claim,
option or right of others, except for the security interest created under this Agreement or permitted under the Credit Agreement.
No effective financing statement or other instrument similar in effect covering all or any part of such Collateral or listing
such Grantor or any trade name of such Grantor as debtor is on file in any recording office, except such as may have been filed
in favor of the Lender relating to the Loan Documents or as otherwise permitted under the Credit Agreement.

 

    	2

    	 

    

 

(c)Such
Grantor has exclusive possession and control of the equipment and inventory other than inventory stored at any leased premises
or warehouse for which a landlord’s or warehouseman’s agreement, in form and substance satisfactory to the Lender,
is in effect. In the case of equipment and inventory located on leased premises or in warehouses, no lessor or warehouseman of
any premises or warehouse upon or in which such equipment or inventory is located has issued any warehouse receipt or document,
or received notification of any secured party’s interest (other than the security interest granted hereunder or permitted
by the Credit Agreement) in such Grantor’s equipment or inventory, or asserted any lien, claim or charge (based on contract,
statute or otherwise) on such equipment and inventory.

 

(d)All
filings and other actions (including, without limitation, actions necessary to obtain control of Collateral as provided in Sections
9-105, 9-106 and 9-107 of the UCC) necessary to perfect the security interest in the Collateral of such Grantor created under
this Agreement have been duly made or taken and are in full force and effect, and this Agreement creates in favor of the Lender
a valid and, together with such filings and other actions, perfected first priority security interest in the Collateral of such
Grantor, securing the payment of the Secured Obligations.

 

(e)No
authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or
any other third party is required for (i) the grant by such Grantor of the security interest granted hereunder or for the execution,
delivery or performance of this Agreement by such Grantor, or (ii) the perfection or maintenance of the security interest created
hereunder (including the first priority nature of such security interest), except for the filing of financing and continuation
statements under the UCC, which financing statements have been duly filed and are in full force and effect.

 

Section
6.Further Assurances. (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor
will promptly execute and deliver, or otherwise authenticate, all further instruments and documents, and take all further action
that may be necessary or desirable, or that the Lender may request, in order to perfect and protect any security interest granted
or purported to be granted by such Grantor hereunder or to enable the Lender to exercise and enforce its rights and remedies hereunder
with respect to any Collateral of such Grantor. Without limiting the generality of the foregoing, each Grantor will promptly,
upon the written request of the Lender, with respect to Collateral of such Grantor: (i) mark conspicuously each document, contract,
and all chattel paper and, at the request of the Lender, each of its records pertaining to such Collateral with a legend, in form
and substance satisfactory to the Lender, indicating that such Collateral or record is subject to the security interest granted
hereby; (ii) if any such Collateral shall be evidenced by a promissory note or other instrument or chattel paper, deliver and
pledge to the Lender hereunder such note or instrument or chattel paper duly indorsed and accompanied by duly executed instruments
of transfer or assignment, all in form and substance satisfactory to the Lender; (iii) execute or authenticate and file such financing
or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or desirable, or
as the Lender may request, in order to perfect and preserve the security interest granted or purported to be granted by such Grantor
hereunder; (iv) deliver and pledge to the Lender certificates representing Collateral, if any, that constitutes certificated securities,
accompanied by undated stock or bond powers executed in blank; (v) take all action necessary to ensure that the Lender has control
of Collateral consisting of electronic chattel paper, investment property, and transferable records as provided in Sections 9-105,
9-106 and 9-107 of the UCC; (vi) cause the Lender to be the beneficiary under all letters of credit that constitute Collateral,
with the exclusive right to make all draws under such letters of credit, and with all rights of a transferee under Section 5-114(e)
of the UCC; and (vii) deliver to the Lender evidence that all other action that the Lender may deem reasonably necessary or desirable
in order to perfect and protect the security interest created by such Grantor under this Agreement has been taken.

 

    	3

    	 

    

 

(b)Each
Grantor hereby authorizes the Lender to file one or more financing or continuation statements, and amendments thereto, including,
without limitation, one or more financing statements indicating that such financing statements cover all assets or all personal
property (or words of similar effect) of such Grantor, in each case without the signature of such Grantor, and regardless of whether
any particular asset described in such financing statements falls within the scope of the UCC or the granting clause of this Agreement.
A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall
be sufficient as a financing statement where permitted by law. Each Grantor ratifies its authorization for the Lender to have
filed such financing statements, continuation statements or amendments filed prior to the date hereof.

 

(c)Each
Grantor will furnish to the Lender from time to time statements and schedules further identifying and describing the Collateral
of such Grantor and such other reports in connection with such Collateral as the Lender may reasonably request, all in reasonable
detail.

 

Section
7.Transfers and Other Liens. Each Grantor agrees that it will not (i) sell, assign or otherwise dispose of, or grant
any option with respect to, any of the Collateral, except as permitted under the terms of the Credit Agreement, or (ii) create
or suffer to exist any lien upon or with respect to any of the Collateral of such Grantor except for the pledge, assignment and
security interest created under this Agreement and liens permitted under the Credit Agreement.

 

Section
8.Lender Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Lender as such Grantor’s attorney-in-fact,
with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time upon
the occurrence and during the continuance of an Event of Default, in the Lender’s discretion, to take any action and to
execute any instrument that the Lender may deem necessary or advisable to accomplish the purposes of this Agreement, including,
without limitation:

 

(a)to
obtain and adjust insurance claims,

 

    	4

    	 

    

 

(b)to
ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become
due under or in respect of any of the Collateral,

 

(c)to
receive, indorse and collect any drafts or other instruments, documents and chattel paper, in connection with clause (a) or (b)
above, and

 

(d)to
file any claims or take any action or institute any proceedings that the Lender may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any assigned agreement or the rights
of the Lender with respect to any of the Collateral.

 

Section
9.Lender May Perform. If any Grantor fails to perform any agreement contained herein, the Lender may, but without any
obligation to do so and without notice, itself perform, or cause performance of, such agreement, and the expenses of the Lender
incurred in connection therewith shall be payable by such Grantor.

 

Section
10.The Lender’s Duties. (a) The powers conferred on the Lender hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral
in its possession and the accounting for moneys actually received by it hereunder, the Lender shall have no duty as to any Collateral,
as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative
to any Collateral, whether or not Lender has or is deemed to have knowledge of such matters, or as to the taking of any necessary
steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Lender shall be deemed to have
exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which it accords its own property.

 

(b)Anything
contained herein to the contrary notwithstanding, the Lender may from time to time, when the Lender deems it to be necessary,
appoint one or more subagents (each a “Subagent”) for the Lender hereunder with respect to all or any
part of the Collateral. In the event that the Lender so appoints any Subagent with respect to any Collateral, (i) the assignment
and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder shall be deemed for
purposes of this Security Agreement to have been made to such Subagent, in addition to the Lender, as security for the Secured
Obligations of such Grantor, (ii) such Subagent shall automatically be vested, in addition to the Lender, with all rights, powers,
privileges, interests and remedies of the Lender hereunder with respect to such Collateral, and (iii) the term “Lender,”
when used herein in relation to any rights, powers, privileges, interests and remedies of the Lender with respect to such Collateral,
shall include such Subagent; provided, however, that no such Subagent shall be authorized to take any action with
respect to any such Collateral unless and except to the extent expressly authorized in writing by the Lender.

 

    	5

    	 

    

 

Section
11.Remedies. If any Event of Default shall have occurred and be continuing:

 

(a)The
Lender may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected
Collateral) and also may: (i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request
of the Lender forthwith, assemble all or part of the Collateral as directed by the Lender and make it available to the Lender
at a place and time to be designated by the Lender that is reasonably convenient to both parties; (ii) without notice except as
specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Lender’s
offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Lender may deem commercially
reasonable; (iii) occupy any premises owned or leased by any of the Grantors where the Collateral or any part thereof is assembled
or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law, without obligation to
such Grantor in respect of such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors under or
in connection with the Collateral, or otherwise in respect of the Collateral, including, without limitation, (A) any and all rights
of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of the Collateral,
(B) withdraw, or cause or direct the withdrawal, of all funds with respect to the Collateral and (C) exercise all other rights
and remedies with respect to the Collateral, including, without limitation, those set forth in Section 9-607 of the UCC. Each
Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Grantor of
the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.
The Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Lender may
adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned.

 

(b)At
any time during which the Lender is exercising its rights and remedies in respect of the Collateral, any cash held by or on behalf
of the Lender and all cash proceeds received by or on behalf of the Lender in respect of any sale of, collection from, or other
realization upon all or any part of the Collateral may, in the discretion of the Lender, be held by the Lender as collateral for,
and/or then or at any time thereafter applied (after payment of any amounts payable to the Lender pursuant hereto) in whole or
in part by the Lender against, all or any part of the Secured Obligations. Any surplus of such cash or cash proceeds held by or
on the behalf of the Lender and remaining after payment in full of all the Secured Obligations shall be paid over to the applicable
Grantor or to whomsoever may be lawfully entitled to receive such surplus.

 

(c)All
payments received by any Grantor under or in connection with any Collateral shall be received in trust for the benefit of the
Lender, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Lender in the same form as
so received (with any necessary indorsement).

 

(d)The
Lender may, without notice to any Grantor except as required by law and at any time or from time to time, charge, set-off and
otherwise apply all or any part of the Secured Obligations against any funds held with respect to the Collateral.

 

    	6

    	 

    

 

Section
12.Indemnity and Expenses. (a) Each Grantor agrees to indemnify, defend and save and hold harmless Lender and each
of its Affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified
Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against
any Indemnified Party, in each case arising out of or in connection with or resulting from this Agreement (including, without
limitation, enforcement of this Agreement), except to the extent such claim, damage, loss, liability or expense is found in a
final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross
negligence or willful misconduct.

 

(b)Each
Grantor will upon demand pay to the Lender the amount of any and all reasonable expenses, including, without limitation, the reasonable
fees and expenses of its counsel and of any experts and agents, that the Lender may incur in connection with (i) the administration
of this Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon,
any of the Collateral of such Grantor, (iii) the exercise or enforcement of any of the rights of the Lender hereunder or (iv)
the failure by such Grantor to perform or observe any of the provisions hereof.

 

Section
13.Amendments; Waivers. No amendment or waiver of any provision of this Agreement, and no consent to any departure
by any Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Lender, and then
such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No failure
on the part of the Lender to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other
right.

 

Section
14.Notices. All notices and other communications provided for hereunder shall be given in accordance with the Subsidiary
Guaranty executed by the Grantors in favor of Lender.

 

Section
15.Continuing Security Interest; Assignments under the Credit Agreement. This Agreement shall create a continuing security
interest in the Collateral and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of
the Secured Obligations and (ii) the Termination Date, (b) be binding upon each Grantor, its successors and assigns and (c) inure,
together with the rights and remedies of the Lender hereunder, to the benefit of the Lender and its successors, transferees and
assigns. Without limiting the generality of the foregoing clause (c), Lender may assign or otherwise transfer all or any portion
of its rights and obligations under the Credit Agreement (including, without limitation, all or any portion of its commitment,
the advances owing to it and the Note or Notes, if any, held by it) to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to Lender herein or otherwise.

 

Section
16.Release; Termination. (a) Upon any sale, lease, transfer or other disposition of any item of Collateral of any Grantor
in accordance with the terms of the Loan Documents (other than sales of inventory in the ordinary course of business), the Lender
will, at such Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request
to evidence the release of such item of Collateral from the assignment and security interest granted hereby; provided,
however, that (i) at the time of such request and such release no Event of Default shall have occurred and be continuing,
(ii) such Grantor shall have delivered to the Lender, at least ten Business Days (five days in the case of the proposed sale of
any individual vehicle on which Lender has a lien) prior to the date of the proposed release, a written request for release describing
the item of Collateral and the terms of the sale, lease, transfer or other disposition in reasonable detail, including, without
limitation, the price thereof and any expenses in connection therewith, together with a form of release for execution by the Lender
and a certificate of such Grantor to the effect that the transaction is in compliance with the Loan Documents and as to such other
matters as the Lender may request and (iii) the proceeds of any such sale, lease, transfer or other disposition required to be
applied, or any payment to be made in connection therewith shall, to the extent so required under the Credit Agreement, be paid
or made to, or in accordance with the instructions of the Lender.

 

    	7

    	 

    

 

(b)Upon
the latest of (i) the payment in full in cash of the Secured Obligations and (ii) the Termination Date, the security interest
granted hereby shall terminate and all rights to the Collateral shall revert to the applicable Grantor. Upon any such termination,
the Lender will, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor
shall reasonably request to evidence such termination.

 

Section
17.Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

 

Section
18.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of South
Dakota.

 

IN
WITNESS WHEREOF, each Grantor has caused this Amended and Restated Security Agreement to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written. 

 

	 	LENDER:
	 	 
	 	/s/
    DUANE SPADER
	 	Duane Spader

 

	 	GRANTORS:
	 	 
	 	Verity Meats, LLC
	 	 	 
	 	By:	/s/ VERLYN SNELLER
	 	Its:	 
	 	 	 
	 	Verity Grains, LLC
	 	 	 
	 	By:	/s/ VERLYN SNELLER
	 	Its:	 
	 	 	 
	 	Verity Water LLC
	 	 	 
	 	By:	/s/ VERLYN SNELLER
	 	Its:	 

 

    	8

    	 

    

 

Schedule
I to the

Security
Agreement

 

COLLATERAL

 

(a)All
accounts, deposit accounts, contract rights, chattel paper, (whether electronic or tangible) instruments, promissory notes, documents,
general intangibles (including, but not limited to, all rights under franchise agreements, non-compete agreements and goodwill),
payment intangibles, software, letter of credit rights, health-care insurance receivables and other rights to payment of every
kind now existing or at any time hereafter arising.

 

(b)All
inventory, goods held for sale or lease or to be furnished under contracts for service, or goods so leased or furnished, raw materials,
component parts, work in process, farm products and other materials used or consumed in Grantor’s business, now or at any
time hereafter owned or acquired by Grantor, wherever located, and all products thereof, whether in the possession of Grantor,
any warehousemen, any bailee or any other person, or in process of delivery, and whether located in Grantor’s place of business
or elsewhere;

 

(c)All
warehouse receipts, bills of sale, bills of lading and other documents of every kind (whether or not negotiable) in which Grantor
now has or at any time hereafter acquires any interest, and all additions and accessions thereto, whether in the possession or
custody of Grantor, any bailee or any other person for any purpose;

 

(d)All
money and property heretofore, now or hereafter delivered to or deposited with Lender or otherwise coming into the possession,
custody or control of Lender (or any agent or bailee of Lender) in any manner or for any purpose whatsoever during the existence
of this Agreement and whether held in a general or special account or deposit for safekeeping or otherwise;

 

(e)All
right, title and interest of Grantor under licenses, guaranties, warranties, management agreements, marketing or sales agreements,
escrow contracts, indemnity agreements, insurance policies, service or maintenance agreements, supporting obligations and other
similar contracts of every kind in which Grantor now has or at any time hereafter shall have an interest;

 

(f)All
goods, tools, machinery, furnishings, furniture and other equipment and fixtures of every kind now existing or hereafter acquired,
and all improvements, replacements, accessions and additions thereto and embedded software included therein, whether located on
any property owned or leased by Grantor or elsewhere, including without limitation, any of the foregoing now or at any time hereafter
located at or installed on the land or in the improvements at any of the real property owned or leased by Grantor, and all such
goods after they have been severed and removed from any of said real property; and

 

(g)All
motor vehicles, trailers, mobile homes, manufactured homes, boats, other rolling stock and related equipment of every kind now
existing or hereafter acquired and all additions and accessories thereto, whether located on any property owned or leased by Grantor
or elsewhere;

 

together
with whatever is receivable or received whether any of the foregoing or the proceeds thereof are sold, leased, collected, exchanged
or otherwise disposed of, whether such disposition is voluntary or involuntary, including without limitation, all rights to payment,
including returned premiums, with respect to any insurance relating to any of the foregoing, and all rights to payment with respect
to any claim or cause of action affecting or relating to any of the foregoing.

 

    	 

    	 

    

 

Schedule
II to the

Security
Agreement

 

LOCATION,
CHIEF EXECUTIVE OFFICE, BUSINESS LOCATIONS, TYPE OF ORGANIZATION, JURISDICTION OF ORGANIZATION AND ORGANIZATIONAL IDENTIFICATION
NUMBER

 

	Grantor	 	Location	 	Chief Executive Office	 	 	Business Locations	 	 	Type of Organization	 	 	Jurisdiction of Organization	 	 	Organizational ID No.
	Verity Meats, L.L.C.	 	47184 258th St., Sioux Falls, SD 57107-6433	 	Same	 	 		 	 	Single Member LLC	 	 	SD	 	 	DL005947
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Verity Grains, L.L.C.	 	47184 258th St., Sioux Falls, SD 57107-6433	 	Same	 	 		 	 	Single Member LLC	 	 	SD	 	 	DL015492
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Verity Water, L.L.C.	 	47184 258th St., Sioux Falls, SD 57107-6433	 	Same	 	 		 	 	Single Member LLC	 	 	SD	 	 	DL027539

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