Document:

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                                                                    EXHIBIT 10.9

                      FOURTH AMENDMENT TO CREDIT AGREEMENT

         THIS FOURTH AMENDMENT TO CREDIT AGREEMENT ("FOURTH AMENDMENT") is made
as of August 6, 2003 ("EFFECTIVE DATE"), by and between U.S. PREMIUM BEEF, LTD.,
a marketing cooperative formed under the laws of the State of Kansas,
("BORROWER"), whose mailing address is 12200 North Ambassador Drive, Kansas
City, Missouri 64163, and COBANK, ACB ("COBANK"), as agent for the benefit of
the Syndication Parties (in that capacity, "AGENT"), whose mailing address is
5500 South Quebec Street, Greenwood Village, Colorado 80111.

                                    RECITALS

         A. CoBank, as Agent and as a Syndication Party (collectively, the
present and future Syndication Parties shall be referred to herein as the
"Syndication Parties" and, each, a "Syndication Party") and Borrower entered
into that certain Credit Agreement (Term Loan) dated as of November 25, 1997, as
amended by that certain First Amendment to Credit Agreement (Term Loan) dated
effective as of March 21, 2000, as amended by that certain Second Amendment to
Credit Agreement (Term Loan) dated effective as of August 24, 2001, and as
amended by that certain Third Amendment to Credit Agreement dated effective as
of August 29, 2002 (as so amended and as further amended, modified,
supplemented, restated or replaced from time to time, the "Credit Agreement")
pursuant to which the Syndication Parties agreed to make a term loan to Borrower
under the terms and conditions set forth in the Credit Agreement.

         B. Borrower has requested that the Syndication Parties amend the Credit
Agreement which the Syndication Parties are willing to do under the terms and
conditions as set forth in this Fourth Amendment.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, including the mutual promises and agreements
contained herein, the parties hereto hereby agree as follows:

1.       AMENDMENTS TO CREDIT AGREEMENT. The Credit Agreement is amended as of
the Effective Date as follows:

         1.1      Section 1.44 is amended in its entirety to read as follows:

                  1.44     FIXED RATE MARGIN: shall be the amount determined
         from time to time as provided in Section 5.5 hereof; provided that
         during any time that the amount on deposit in the Cash Collateral
         Account is equal to, or greater than, one-hundred percent (100.0%) of
         the Credit Exposure Amount and so long as the amount on deposit is
         never less than one-hundred percent (100.0%) of the Credit Exposure
         Amount, the Fixed Rate Margin shall be 100 basis points, provided
         further that the Fixed Rate Margin once set for a Fixed Rate Loan will
         not change during the Fixed Rate Period therefore.

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                                                                    EXHIBIT 10.9

         1.2      Section 1.104 is amended in its entirety to read as follows:

                  1.104    UNIT RETAINS: the portion of the purchase price for
         each head of cattle delivered to Borrower by its members which is
         retained by Borrower as unit retention capital.

         1.3      Section 1.123 is amended in its entirety to read as follows:

                  1.123    WORKING CAPITAL: means the excess of Current Assets
         over Current Liabilities; provided that for all periods commencing on
         the day after the last day of Borrower's Fiscal Quarter which ends in
         February of 2004, the current portion of Funded Debt attributable to
         Debt in respect of Advances, shall be deemed to be $1,040,927.00 for
         the purposes of determining the amount of Borrower's Working Capital at
         any time during such period. In addition, for the purpose of
         determining Working Capital, Current Assets will include (a) cash
         distributions reasonably expected to be received from National Beef
         during the quarterly reporting period that follows the date of
         determination of Working Capital; and (b) to the extent not otherwise
         included in Current Assets, the amount on deposit in the Cash
         Collateral Account and subject to a first lien security interest in
         favor of Agent as of the date of determination.

         1.4      Article I is amended by the addition of the following new
Sections reading as follows:

                  1.124    CASH COLLATERAL ACCOUNT: shall have the meaning set
         forth in Section 9.2 hereof.

                  1.125    CONTROL AGREEMENT: means a control agreement, in form
         and substance satisfactory to the Agent, executed and delivered by
         Borrower, the Agent, and the applicable securities intermediary with
         respect to a Securities Account (as defined in the Colorado Uniform
         Commercial Code) or bank with respect to a deposit account.

                  1.126    CREDIT EXPOSURE AMOUNT: means, on any date, the sum
         of (a) the unpaid amount owing under the Loans and the Notes on such
         date, including amounts owing for principal, Funding Losses, fees,
         costs, interest, and reimbursements; and (b) without duplication.
         Borrower's mark-to-market exposure under the Swap Agreement.

                  1.127    CREDIT EXPOSURE NOTICE: shall have the meaning set
         forth in Section 9.2 hereof.

                  1.128    NATIONAL BEEF LOAN: means the loan in the approximate
         amount of $265,000,000.00 extended to National Beef by a lending group
         led by U.S. Bank National Association, pursuant to that certain Third
         Amended and Restated Credit Agreement dated as of August 6, 2003.

                  1.129    NEW ENTITY: shall have the meaning set forth in
         Section 17.20 hereof.

         1.5      New Sections 9.2 and 9.3 are added to read as follows:

                  9.2      CASH COLLATERAL; CASH COLLATERAL ACCOUNT. Borrower
         shall (a) on or before August 8, 2003 (i) establish an account with the
         Agent, or with such other

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                                                                    EXHIBIT 10.9

         financial institution as shall be approved by the Majority Lenders
         ("Cash Collateral Account"), (ii) deposit by wire transfer funds into
         such Cash Collateral Account in an amount equal to not less than
         seventy-five percent (75.0%) of the Credit Exposure Amount on such
         date, and (iii) take such action, including the execution and delivery
         (and, where requested, obtaining the execution thereof by third
         parties) of security agreements, Control Agreements, financing
         statements, and/or such other documents as the Agent may require, in
         order to grant to the Agent, on behalf of the Syndication Parties, a
         first priority lien security interest on such Cash Collateral Account
         and the funds and other assets on deposit therein as security for the
         payment and performance of all obligations of Borrower to Agent, to
         CoBank (including but not limited to all obligations of Borrower under
         Article 8 hereof and under any agreement entered into by and between
         Borrower and CoBank pursuant to, or in furtherance of the purposes and
         requirements of, Section 5.4 hereof) and to the Syndication Parties,
         including but not limited to principal and interest under the Notes,
         purchases of CoBank Equity Interests, fees, Funding Losses,
         reimbursements, and all other Bank Debt or obligations under any of the
         Loan Documents; and (b) no later than August 31, 2004, either (i)
         deposit by wire transfer funds into the Cash Collateral Account in an
         amount sufficient so that the amount on deposit therein will equal
         one-hundred percent (100.0%) of the Credit Exposure Amount on such
         date, or (ii) commence either or both of the following actions: (A)
         decrease the amount of its patronage payments to its Members in an
         amount sufficient so that when such amount is deposited into the Cash
         Collateral Account, the amount on deposit therein will equal
         one-hundred percent (100.0%) of the Credit Exposure Amount on February
         28, 2005, and/or (B) assess and collect or retain Unit Retains for
         cattle delivered or required to be delivered pursuant to the Delivery
         Agreements such that the aggregate of all such Unit Retains during the
         period from August 31, 2004 to, but excluding, February 28, 2005 is an
         amount sufficient so that when such amount is deposited into the Cash
         Collateral Account, the amount on deposit therein will equal
         one-hundred percent (100.0%) of the Credit Exposure Amount on such
         date; provided that without regard to the amount of decrease in
         patronage payments pursuant to the requirements of this clause
         (b)(ii)(A), or the amount of Unit Retains assessed and collected or
         retained pursuant to the requirements of this clause (b)(ii)(B), or
         otherwise, Borrower shall, on February 28, 2005, deposit by wire
         transfer funds into the Cash Collateral Account sufficient so that the
         amount on deposit therein equals one-hundred percent (100.0%) of the
         Credit Exposure Amount on such date. As soon as it is reasonably able
         following the last day of each month, the Agent shall calculate the
         Credit Exposure Amount as of such month end and shall send Borrower
         written notice ("Credit Exposure Notice") showing as of such date (x)
         the Credit Exposure Amount, (y) the amount on deposit in the Cash
         Collateral Account, and (z) (i) the amount by which the Credit Exposure
         Amount exceeds the amount required to be on deposit in the Cash
         Collateral Account ("shortfall") based on the requirement that the
         amount on deposit in the Cash Collateral Account shall be (A)
         seventy-five percent (75.0%) of the Credit Exposure Amount from August
         8, 2003 until August 31, 2004, or until February 28, 2005 if Borrower
         has elected to take, and does in fact take, the action described above
         in clause (b)(ii) of this Section, and (B) on and after August 8, 2003
         or February 28, 2005, as applicable (depending upon whether Borrower
         has elected to take the action described above in clause (b)(ii) of
         this Section), one hundred percent (1 00.0%) of the Credit

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                                                                    EXHIBIT 10.9

         Exposure Amount, or (ii) the amount by which the amount on deposit in
         the Cash Collateral Account exceeds ("excess") one hundred percent
         (100.0%) of the Credit Exposure Amount. In the event that the Credit
         Exposure Notice states that there is a shortfall, then Borrower shall,
         within three (3) Banking Days of receipt of the Credit Exposure Notice,
         remit by wire transfer funds to the Agent for deposit into the Cash
         Collateral Account in the amount of such shortfall. In the event that
         the Credit Exposure Notice states that there is an excess, and so long
         as there is no Potential Default or an Event of Default which is
         continuing, Borrower may make a written request to the Agent to remit
         to Borrower from the Cash Collateral Account the amount of such excess,
         and the Agent shall make such remittance within a reasonable time after
         the receipt of such written request; provided that Borrower shall not
         be entitled to make such a request any more frequently than once each
         month nor based on any Credit Exposure Notice after the date that a
         subsequent Credit Exposure Notice has been sent by the Agent.

                  9.3      RELEASE OF LIEN ON CERTAIN OF THE COLLATERAL. Within
         a reasonable time after the expiration of ninety-three (93) days from
         the date on which Borrower has complied with all of the requirements of
         Section 9.2 hereof, and the amount of collected funds in the Cash
         Collateral Account are no less than one-hundred percent (100.0%) of the
         Credit Exposure Amount on such date, the Agent will take such action
         and execute and/or file such documents as may be necessary in order to
         release the lien in favor of the Agent, on behalf of CoBank, the Agent,
         and the Syndication Parties, on the Collateral, provided that the Agent
         shall not be required to take any action which would or might release
         or jeopardize the lien on (a) the CoBank Equity Interests; or (b) the
         Cash Collateral Account or the funds or other assets on deposit
         therein.

         1.6      Section 12.18 is amended in its entirety to read as follows:

                  12.18    UNIT RETAINS; DECREASE MEMBER PATRONAGE PAYMENTS.
         Borrower shall, under the Delivery Agreements or otherwise, obtain the
         contractual right to, and shall in fact, assess and collect or retain
         Unit Retains for cattle delivered or required to be delivered pursuant
         to the Delivery Agreements such that Borrower will be in compliance
         with Section 9.2(b) hereof, and, further, Borrower shall take such
         action as is necessary to ensure that such Unit Retains (a) are
         "qualified" under the Internal Revenue Code of 1986 so as to not be
         taxable to Borrower under federal law; and (b) are available as unit
         retention capital for Borrower's general business purposes including
         debt service and the funding of the Cash Collateral Account.

         1.7      Clause (e) of Section 13.8 is amended in its entirety to read
         as follows:

                  (e)      a general and/or limited partnership interest, up to,
                  in either case, a one hundred percent (100%) interest, in
                  National Beef or, in lieu thereof, an equity interest in New
                  Entity; and

         1.8      Clause (a) of Section 13.11 is amended in its entirety to read
                  as follows:

                  (a)      refund any Unit Retains and/or pay interest on Unit
                  Retains so long as (i) such interest payments are treated as
                  expenses to be deducted from income in the

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                                                                    EXHIBIT 10.9

                  calculation of the Debt Service Coverage Ratio, and (ii) with
                  respect to any such refunds or payments after August 31, 2004,
                  the amount on deposit in the Cash Collateral Account is not
                  less than one-hundred percent (100.0%) of the Credit Exposure
                  Amount;

         1.9      Section 15.1 is amended by deletion of the reference to
"Farmland" in clauses (c), (d), (f), (g). and (j) thereof, and by the addition
of a new clause (k) reading as follows:

                  (k)      Any default by National Beef under the National Beef
                  Loan or the documents executed in connection therewith.

         1.10     Clause (h) of Section 15.1 is amended in its entirety to read
"Intentionally omitted", and each reference in the Credit Agreement to the "Note
Purchase Agreement" or to specific Sections thereof, is deleted.

         1.11     A new Section 17.19 is added reading as follows:

                  17.19 SUSPENSION OF CERTAIN PROVISIONS. Notwithstanding any
         other provision in this Credit Agreement to the contrary, effective
         upon the date which is ninety-three (93) days after the date when the
         amount on deposit in the Cash Collateral Account equals or exceeds
         one-hundred percent (100.0%) of the Credit Exposure Amount, and so long
         as the amount on deposit in the Cash Collateral Account is never less
         than one-hundred percent (100.0%) of the Credit Exposure Amount, the
         following Sections and Subsections of the Credit Agreement shall be
         treated as having been amended in their entirety to read, as
         applicable, "This Subsection Intentionally Omitted" or "This Section
         Intentionally Omitted": 1.26, 1.123, 12.2.10, 12.11, 12.19, 12.20,
         13.14, 15.1(j), and 15.4.

         1.12     A new Section 17.20 is added reading as follows:

                  17.20 CONVERSION OF NATIONAL BEEF AND ACTIONS REGARDING
         COLLATERAL. In the event that National Beef is converted from a limited
         partnership form of entity to a limited liability company form of
         entity, or to any other form of entity, or is merged into another
         entity (in any such case, the "NEW ENTITY"), Borrower shall take such
         action, execute or caused to be executed such documents, and deliver
         such forms of ownership, as the Agent shall reasonably require so that
         the Agent, as security for the payment and performance of all
         obligations of Borrower to Agent, to CoBank (including but not limited
         to all obligations of Borrower under Article 8 hereof and under any
         agreement entered into by and between Borrower and CoBank pursuant to,
         or in furtherance of the purposes and requirements of, Section 5.4
         hereof) and to the Syndication Parties, including but not limited to
         principal and interest under the Notes, purchases of CoBank Equity
         Interests, fees, Funding Losses, reimbursements, and all other Bank
         Debt or obligations under any of the Loan Documents, will have a first
         priority lien on and security interest in, Borrower's equity interest
         in the New Entity, which interest shall be equal to no less than
         twenty-nine percent (29.0%) of the total equity interests therein, and
         in all distributions therefrom on account of such equity interest, and
         which equity interest and distributions shall be considered a part of
         the "Collateral" as defined herein. Any lien

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                                                                    EXHIBIT 10.9

         and security interest arising out of the provisions of this Section
         will be subject to the release provisions of Section 9.3 hereof.

2.       CONDITIONS TO EFFECTIVENESS OF THIS FOURTH AMENDMENT. The effectiveness
of this Fourth Amendment is subject to satisfaction, in Agent's sole discretion,
of each of the following conditions precedent:

         2.1      SECURITY DOCUMENTS. Execution of such Control Agreement,
security agreement, financing statement, or other document as the Agent shall
require in connection with perfection of the Agent's lien on the Cash Collateral
Account and the funds and other assets on deposit therein, as required pursuant
to Section 9.2 of the Credit Agreement, and all such documents shall be deemed
to be "Security Documents" as that term is used in the Credit Agreement or any
other Loan Document.

         2.2      REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Borrower shall be true and correct in all material respects on and
as of the Effective Date as though made on and as of such date.

         2.3      NO EVENT OF DEFAULT. No Event of Default shall have occurred
and be continuing under the Credit Agreement as of the Effective Date of this
Fourth Amendment.

         2.4      AMENDMENT FEE AND COSTS AND EXPENSES. Borrower shall have paid
to Agent an amendment fee in the amount of $5,000.00, and shall have reimbursed
Agent for all of its costs and expenses incurred in connection with this Fourth
Amendment, including attorney's fees to Agent's counsel.

3.       GENERAL PROVISIONS.

         3.1      NO OTHER MODIFICATIONS. The Credit Agreement, as expressly
modified herein, shall continue in full force and effect and be binding upon the
parties thereto.

         3.2      SUCCESSORS AND ASSIGNS. This Fourth Amendment shall be binding
upon and inure to the benefit of Borrower and Agent, and their respective
successors and assigns, except that Borrower may not assign or transfer its
rights or obligations hereunder.

         3.3      DEFINITIONS. Capitalized terms used, but not defined, in this
Fourth Amendment shall have the meaning set forth in the Credit Agreement.

         3.4      SEVERABILITY. Should any provision of this Fourth Amendment be
deemed unlawful or unenforceable, said provision shall be deemed several and
apart from all other provisions of this Fourth Amendment and all remaining
provisions of this Fourth Amendment shall be fully enforceable.

         3.5      GOVERNING LAW. To the extent not governed by federal law, this
Fourth Amendment and the rights and obligations of the parties hereto shall be
governed by, interpreted and enforced in accordance with the laws of the State
of Colorado.

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                                                                    EXHIBIT 10.9

         3.6      HEADINGS. The captions or headings in this Fourth Amendment
are for convenience only and in no way define, limit or describe the scope or
intent of any provision of this Fourth Amendment.

         3.7      COUNTERPARTS. This Fourth Amendment may be executed by the
parties hereto in separate counterparts, each of which, when so executed and
delivered, shall be an original, but all such counterparts shall together
constitute one and the same instrument. Each counterpart may consist of a number
of copies hereof, each signed by less than all, but together signed by all, of
the parties hereto. Telefax copies of documents or signature pages bearing
original signatures, and executed documents or signature pages delivered by
telefax, shall, in each such instance, be deemed to be, and shall constitute and
be treated as, an original signed document or counterpart, as applicable. Any
party delivering an executed counterpart of this Fourth Amendment by
telefacsimile also shall deliver an original executed counterpart of this Fourth
Amendment but the failure to deliver an original executed counterpart shall not
affect the validity, enforceability, and binding effect of this Fourth
Amendment.

                        [SIGNATURES FOLLOW ON NEXT PAGE]

<PAGE>
                                                                    EXHIBIT 10.9

         IN WITNESS WHEREOF, the parties hereto have caused this Fourth
Amendment to be executed as of the Effective Date.

                                     BORROWER:

                                     U.S. PREMIUM BEEF, LTD., a marketing
                                     cooperative formed under the laws of the
                                     State of Kansas

                                     By: /s/  Steven D. Hunt
                                         ----------------------------------
                                     Name: Steven D. Hunt
                                     Title: Chief Executive Officer

                                     AGENT:

                                     COBANK, ACB

                                     By: /s/ Jim Stutzman
                                         ----------------------------------
                                     Name: Jim Stutzman
                                     Title: Vice President, Corporate Finance
                                            Division

                                     SYNDICATION PARTY:

                                     COBANK, ACB

                                     By: /s/ Jim Stutzman
                                         ----------------------------------
                                     Name: Jim Stutzman
                                     Title: Vice President, Corporate Finance
                                            Division<PAGE>

                                                                   EXHIBIT 10.10

                       THIRD AMENDMENT TO CREDIT AGREEMENT

         THIS THIRD AMENDMENT TO CREDIT AGREEMENT ("THIRD AMENDMENT") is made as
of August 29, 2002 ("EFFECTIVE DATE"), by and between U.S. PREMIUM BEEF, LTD., a
marketing cooperative formed under the laws of the State of Kansas,
("BORROWER"), whose mailing address is 12200 North Ambassador Drive, Kansas
City, Missouri 641 63, and COBANK, ACB ("COBANK"), as agent for the benefit of
the Syndication Parties (in that capacity, "AGENT"), whose mailing address is
5500 South Quebec Street, Greenwood Village, Colorado 801 11.

                                    RECITALS

         A.       CoBank, as Agent and as a Syndication Party (collectively, the
present and future SYNDICATION PARTIES shall be referred to herein as the
"Syndication Parties" and, each, a "SYNDICATION PARTY") and Borrower entered
into that certain Credit Agreement (Term Loan) dated as of November 25, 1997, as
amended by that certain First Amendment to Credit Agreement (Term Loan) dated
effective as of March 21, 2000, and as amended by that certain Second Amendment
to Credit Agreement (Term Loan) dated effective as of August 24, 2001 (as
further amended, modified, supplemented, restated or replaced from time to time,
the "CREDIT AGREEMENT") pursuant to which the Syndication Parties agreed to make
that certain term loan to Borrower in an amount up $65,000,000.00 under the
terms and conditions set forth in the Credit Agreement.

         B.       Borrower has requested that the Syndication Parties amend the
Credit Agreement, which the Syndication Parties are willing to do under the
terms and conditions as set forth in this Third Amendment.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, including the mutual promises and agreements
contained herein, the parties hereto hereby agree as follows:

1.       AMENDMENTS TO CREDIT AGREEMENT. The Credit Agreement is amended as of
the Effective Date as follows:

         1.1      Section 1.7 is amended in its entirety to read as follows:

                  1.7      AGGREGATE COMMITMENT: shall be $9,142,014.

         1.2      Section 1.1 1 is amended in its entirety to read as follows:

                  1.11     BASE RATE: a rate of interest per annum equal to the
         "prime rate" as published from time to time in the Eastern Edition of
         the Wall Street Journal as the average prime lending rate for
         seventy-five percent (75%) of the United States' thirty (30) largest
         commercial banks, or if the Wall Street Journal shall cease publication
         or cease publishing the "prime rate" on a regular basis, such other
         regularly published

<PAGE>

         average prime rate applicable to such commercial banks as is acceptable
         to Agent in its sole discretion, with such rate modified by adding the
         Base Rate Margin.

         1.3      Section 1.12 is amended in its entirety to read as follows:

                  1.12     BASE RATE LOAN: shall have the meaning set forth in
         Subsection 5.1.1.

         1.4      Section 1.26 is amended in its entirety to read as follows:

                  1.26     DEBT SERVICE COVERAGE RATIO: for any consecutive four
         Fiscal Quarters (a) net income (as determined in accordance with GAAP),
         (i) plus depreciation and amortization, (ii) plus the amount of all
         Unit Retains, (iii) plus cash distributions received from affiliates,
         (iv) plus the non-cash impact of the Swap Agreement on Borrower's
         income statement, to the extent used in determining net income, and (v)
         less retirements of equity (in the form of Unit Retains and the return
         of the non-cash portion of patronage distributions), cash patronage
         distributions, and earnings from affiliates, (b) divided by the total
         scheduled principal payments made on all Debt during such period;
         provided that for the purposes of calculating the Debt Service Coverage
         Ratio, the amount of the principal payment due on January 1, 2005,
         shall be deemed to be $264,084.00. For purposes of this Section 1.26,
         cash distributions received from affiliates calculated for each Fiscal
         Quarter shall include, but without duplication in the following Fiscal
         Quarter, those distributions received from affiliates up to and
         including the last day of the month in which such Fiscal Quarter ends.

         1.5      Section 1.38 is amended in its entirety to read as follows:

                  1.38     EXPIRATION DATE: shall be September 30, 2002.

         1.6      Section 1.42 is amended in its entirety to read as follows:

                  1.42     FIXED RATE: the rate for deposits in U.S. dollars
         with three month maturities that appears on the display designated as
         Page "3750" of the Telerate Service (or such other Page as may replace
         the 3750 Page of that service or, if the Telerate Service shall cease
         displaying such rates, as published by such other service or services
         as may be nominated by the British Bankers' Association for the purpose
         of displaying London Interbank Offered Rates for U.S. Dollar deposits
         or, if none, the comparable reference on the Reuters Screen LIBOR Page
         or such other quotation service as may be chosen by Agent), determined
         two (2) Business Days prior to the commencement of the applicable Fixed
         Rate Period, effective as of 1:00 p.m. (Eastern Standard Time) on the
         first Business Day of each Fixed Rate Period, reserve adjusted basis
         for Regulation D on a demonstrated basis, with such rate modified by
         adding the Fixed Rate Margin.

         1.7      Section 1.43 is amended in its entirety to read as follows:

                  1.43     FIXED RATE LOAN: shall have the meaning set forth in
         Subsection 5.1.2.

         1.8      Section 1.44 is amended in its entirety to read as follows:

                                       2

<PAGE>

                  1.44     FIXED RATE MARGIN: shall be the amount determined
         from time to time as provided in Section 5.5 hereof.

         1.9      Article I is amended by the addition of the following new
         Sections reading as follows:

                  1.106    NET WORTH: means the amount of Borrower's total
         assets (as determined in accordance with GAAP) less Borrower's total
         liabilities (as determined in accordance with GAAP.

                  1.107    BASE RATE MARGIN: shall be the amount determined from
         time to time as provided in Section 5.5 hereof.

                  1.108    CAPITAL EXPENDITURES: means an expenditure for the
         purchase of any fixed asset as determined in accordance with GAAP.

                  1.109    CAPITAL LEASE: means any lease of property (whether
         real, personal or mixed) by a Person, the discounted present value of
         the rental obligations of such Person as lessee under such lease, in
         accordance with GAAP, is required to be capitalized on the balance
         sheet of such Person.

                  1.110    CURRENT ASSETS: of any Person means all assets of
         such Person that would, in accordance with GAAP, be classified as
         current assets of a company conducting a business the same as or
         similar to that of such Person, after deducting adequate reserves in
         each case in which a reserve is proper in accordance with GAAP.

                  1.111    CURRENT LIABILITIES: of any Person means all Debt of
         such Person that would, in accordance with GAAP, be classified as
         current liabilities of a company conducting a business the same as or
         similar to that of such Person.

                  1.112    DEBT: means as to any Person, without duplication:
         (a) indebtedness, obligations, or liability of such Person for borrowed
         money (including by the issuance of debt securities), or for the
         deferred purchase price of property or services (excluding trade
         obligations); (b) the aggregate of the principal components of all
         Capital Leases and other agreements for the use, acquisition or
         retention of real or personal property which are required to be
         capitalized under GAAP; (c) to the extent drawn upon, obligations of
         such Person arising under bankers' or trade acceptance facilities,
         letters of credit, customer advances and other extensions of credit
         whether or not representing obligations for borrowed money; (d) all
         guarantees, endorsements and other contingent obligations of such
         Person with respect to indebtedness arising from money borrowed by
         others; (e) all obligations secured by a lien on property owned by such
         Person, whether or not the obligations have been assumed; and (I) all
         obligations of such Person under any agreement providing for an
         interest rate swap, cap, cap and floor, contingent participation or
         other hedging mechanisms with respect to interest payable on any of the
         items described in this definition.

                  1.113    EBITDA: means for any period, Borrower's net income
         for such period, (a) plus, without duplication, the sum of the amounts
         of (i) Interest Expense, (ii) federal

                                       3

<PAGE>

         and state income taxes, (iii) depreciation and amortization expenses,
         and (iv) extraordinary losses, and (b) minus, without duplication,
         extraordinary gains, in each case as charged against (or added to, as
         the case may be) revenues to arrive at net income for such period, all
         as determined by GAAP.

                  1.114    FUNDED DEBT: of any Person means Debt in respect of
         the Advances, in the case of Borrower, and all other Debt of such
         Person that by its terms matures more than one year after the date of
         its creation or matures within one year from such date but is renewable
         or extendible, at the option of such Person, to a date more than one
         year from such date or arises under a revolving credit or similar
         agreement that obligates the lender or lenders to extend credit during
         a period of more than one year from such date, including, without
         limitation, all amounts of Funded Debt of such Person required to be
         paid or prepaid within one year after the date of its creation.

                  1.115    INTEREST EXPENSE: means all interest charges during
         such period, including all amortization of Debt discount expense and
         imputed interest with respect to obligations under Capital Leases,
         determined on a consolidated basis in accordance with GAAP.

                  1.116    NATIONAL BEEF CREDIT AGREEMENT: means the Second
         Amended and Restated Credit Agreement dated as of August 29, 2001 by
         and between Farmland National Beef Packing Company, L.P. and U.S. Bank
         National Association, as amended by the First Amendment to Second
         Amended and Restated Credit Agreement dated as of February 26, 2002.

                  1.117    NATIONAL BEEF EBITDA: means for any period, the net
         income of National Beef for such period before provision for income
         taxes, interest expense (including without limitation, implicit
         interest expense on capitalized leases), depreciation, amortization and
         other noncash expenses or charges, excluding (to the extent otherwise
         included): (a) nonoperating gains (including without limitation,
         extraordinary or nonrecurring gains, gains from discontinuance of
         operations and gains arising from the sale of assets other than
         National Beef Inventory or property, plant and equipment) during the
         applicable period; and (b) similar nonoperating losses during such
         period, all as determined by GAAP.

                  1.118    NATIONAL BEEF FARM PRODUCTS: means all of National
         Beefs harvested or unharvested crops of all types and descriptions,
         whether annual or perennial and all other personal property of National
         Beef used or for use in farming or livestock operations, including
         without limitation, native grass, grain, harvested crops, feed, feed
         additives, feed ingredients, feed supplements, fertilizer, hay, silage,
         supplies (including without limitation, veterinary supplies and related
         goods), livestock (including without limitation, the offspring of such
         livestock and livestock in gestation) and any other "farm products" (as
         defined in the Uniform Commercial Code as in effect in the State of
         Colorado).

                  1.119    NATIONAL BEEF FUNDED DEBT: means, for any date of
         determination, the then outstanding principal amount of all interest
         bearing indebtedness for borrowed money (including without limitation,
         Capital Leases) owing by National Beef plus the

                                       4

<PAGE>

         then undrawn amount of all outstanding letters of credit issued for the
         account of National Beef.

                  1.120    NATIONAL BEEF INVENTORY: means any and all goods (as
         defined in the Uniform Commercial Code as in effect in the State of
         Colorado) which shall at any time constitute "inventory" (as defined in
         the Uniform Commercial Code as in effect in the State of Colorado) or
         National Beef Farm Products, wherever located (including without
         limitation, goods in transit and goods in the possession of third
         parties), or which from time to time are held for sale, lease or
         consumption in National Beefs business, furnished under any contract of
         service or held as raw materials, work in process, finished inventory
         or supplies (including without limitation, packaging and/or shipping
         materials).

                  1.121    NATIONAL BEEF LEVERAGE RATIO: means for any fiscal
         year of National Beef, the ratio determined by dividing the average
         amount of National Beef Funded Debt for such fiscal year by the amount
         of National Beef EBITDA over the same fiscal year.

                  1.122    NATIONAL BEEF LEVERAGE RATIO CERTIFICATE: shall have
         the meaning set forth in Section 5.5 hereof.

                  1.123    WORKING CAPITAL: means the excess of Current Assets
         over Current Liabilities; provided that for all periods commencing on
         the day after the last day of Borrower's Fiscal Quarter which ends in
         February of 2004, the current portion of Funded Debt attributable to
         Debt in respect of Advances, shall be deemed to be $1,040,927.00 for
         the purposes of determining the amount of Borrower's Working Capital at
         any time during such period. In addition, for the purpose of
         determining Working Capital, Current Assets will include cash
         distributions reasonably expected to be received from National Beef
         during the quarterly reporting period that follows the date of
         determination of Working Capital.

         1.10     The following Sections and Subsections are amended in their
entirety to read "This Section Intentionally Omitted": 1.2, 1.32, 1.33, 1.41,
1.46, 1.75, 1,76, 1.83, 1.88, 1.99, 5.3.1, 6.6, 7.2, 7.3, 11.1.19, 11.1.20,
11.1.21, 11.2.3, 11.2.4, 11.3.1, 11.3.4, 11.2.7, 12.16, 12.17, 16.21,

         1.11     Each reference to the term "Post Closing Escrow Account" is
deleted in Section 9.1.

         1.12     Each reference to the term "Post Closing Adjustment Amount" is
deleted in Sections 1.82, 9.1, and 10.21.

         1.13     Each reference to the term "DSR Account" is deleted in each of
the following Sections: 9.1, and 13.8(f).

         1.14     The reference to the term "Post Closing Adjustment Account" is
deleted in Section 13.8(1).

         1.15     Section 3.1 is amended in its entirety to read as follows:

                                       5

<PAGE>

                  3.1      PURPOSE. The proceeds of the Loan ("LOAN PROCEEDS")
         may be used by Borrower only for general working capital purposes
         related to the operation of its business as described in Section 13.2
         hereof, and Borrower agrees to use the Loan Proceeds for such purposes
         only.

         1.16     Section 5.1 is amended in its entirety to read as follows:

                  5.1      INTEREST CALCULATION. Interest on all Loans shall be
         calculated as follows with the interest rate being converted to a daily
         rate on the basis of a year consisting of 360 days and applied based on
         the actual number of days the Advance is outstanding:

                  5.1.1    BASE RATE OPTION. Unless Borrower requests and
         receives a Fixed Rate Loan pursuant to Subsection 5.1.2 hereof, and
         except as provided in Subsection 5.1.2 hereof with respect to a Fixed
         Rate Loan upon the expiration of the Fixed Rate Period therefore, the
         outstanding principal balance under the Notes shall bear interest at
         the Base Rate (each a "BASE RATE LOAN").

                  5.1.2    FIXED RATE OPTION. From time to time, and so long as
         no Event of Default has occurred and is continuing, at the request of
         Borrower included in a Advance Request, all or any part of the
         outstanding principal balance under the Notes may bear interest at the
         Fixed Rate (each a "FIXED RATE LOAN"); provided that Borrower may have
         no more than three (3) Fixed Rate Loans outstanding at any time. To
         effect this option, the Advance Request must specify (a) the principal
         amount that is to bear interest at the Fixed Rate, which must be a
         minimum of $1,000,000.00, and (b) the period selected by Borrower
         during which the Fixed Rate is to be applied ("FIXED RATE PERIOD"),
         which may be any period of one, two, three, or six months, provided
         that Fixed Rate Periods which begin prior to the Maturity Date must
         mature on or prior to the Maturity Date. In addition, for the purposes
         of determining a Fixed Rate Period, a month means a period starting on
         one day in a calendar month and ending on a numerically corresponding
         day in the next calendar month; provided that if there is no
         numerically corresponding day in the month in which a Fixed Rate Period
         is to end, or if a Fixed Rate Period begins on the last day of a
         calendar month, then such Fixed Rate Period shall end on the last
         Business Day of the calendar month in which such Fixed Rate Period is
         to end. Borrower may convert any Base Rate Loan to a Fixed Rate Loan,
         or continue a Fixed Rate Loan, by making a written request therefore
         ("FIXED REQUEST") to the Agent by facsimile, specifying (y) the
         principal amount that is to bear interest at the Fixed Rate, which must
         be a minimum of $1,000,000.00, and (z) the Fixed Rate Period selected
         by Borrower during which the Fixed Rate is to be applied. The Agent
         shall incur no liability in acting upon a request which it believed in
         good faith had been made by a properly authorized officer of Borrower.
         Following the expiration of the Fixed Rate Period for any Fixed Rate
         Loan, interest shall automatically accrue at the Fixed Rate (based on a
         Fixed Rate Period of three months) unless Borrower (i) requests and
         receives another Fixed Rate Loan as provided in this Subsection or (ii)
         makes a written request to Agent to have such Fixed Rate Loan bear
         interest at the Base Rate.

                                       6

<PAGE>

         1.17     Section 5.4 is amended in its entirety to read as follows:

                  5.4      INTEREST RATE PROTECTION; LIMITATION. Subject to the
         limitations set forth in the last sentence of this Section, Borrower
         will execute an interest rate swap agreement with CoBank, in a form
         substantially similar to Exhibit 5.4 hereto ("SWAP AGREEMENT"), to
         mitigate the interest rate risk on 100% of the outstanding amount of
         each Advance for a period from the Advance Date therefore to arid
         including the Maturity Date. Amounts owing to CoBank under the Swap
         Agreement will not affect the Syndication Share or Maximum Syndication
         Amount of any Syndication Party, but will be considered indebtedness
         owing under the Loan and this Credit Agreement for all other purposes,
         and will be secured by an equal priority lien on the Collateral. In no
         event may the aggregate notional principal amount under all such Swap
         Agreements exceed at any time one hundred and five percent (105.0%) of
         the outstanding principal balance then owing under the Loan.

         1.18     Section 6.2 is amended in its entirety to read as follows:

                  6.2      PRINCIPAL PAYMENTS. Principal shall be payable on the
         dates (or on the next succeeding Business Day in the event the date
         specified is not a Business Day) and in the amounts as follows:

<TABLE>
<CAPTION>
  PAYMENT DATE               PAYMENT AMOUNT
----------------           -------------------
<S>                        <C>
October 1, 2002              $  225,367
January 1, 2003              $  229,798
April 1, 2003                $  234,420
July 1, 2003                 $  239,236
October 1, 2003              $  243,859
January 1, 2004              $  248,867
April 1, 2004                $  253,876
July 1, 2004                 $  258,883
October 1, 2004              $  264,084
January 1, 2005              $6,943,624, or the
                             principal amount
                             outstanding, if less
</TABLE>

         1.19     Section 6.3 is amended in its entirety to read as follows:

                  6.3      INTEREST PAYMENTS. Interest shall be payable as
         follows: (a) interest on Base Rate Loans shall be payable monthly in
         arrears on the twentieth day of the following month; (b) interest on
         Fixed Rate Loans shall be payable in arrears on the last day of the
         Fixed Rate Period therefore unless the Fixed Rate Period is longer than
         three (3) months, in which case interest shall also be payable every
         three (3) months from the

                                       7

<PAGE>

         date of the relevant Advance; and (c) interest on all Loans then
         accrued and unpaid shall be payable on the Maturity Date.

         1.20     Section 6.4 is amended in its entirety to read as follows:

                  6.4      APPLICATION OF PAYMENTS. All payments of principal
         shall be applied to first to Base Rate Loans and then to Fixed Rate
         Loans. Prepayments of principal shall be applied to regularly scheduled
         installments in reverse order of their due date. Upon the occurrence
         and during the continuance of an Event of Default or Potential Default,
         Borrower hereby agrees that all amounts paid to Agent, including
         prepayments, shall be applied, as Agent in its sole discretion shall
         determine, to fees, interest, or principal indebtedness under the Notes
         (in such order of maturity as Agent shall select), or to any other Bank
         Debt.

         1.21     Section 12.19 is amended in its entirety to read as follows:

                  12.19    FINANCIAL COVENANTS: Borrower shall maintain the
         following financial covenants to be tested on a quarterly basis:

                           12.19.1  MINIMUM WORKING CAPITAL. Borrower's Working
                  Capital shall be no less than $2,300,000.00, measured as of
                  the last day of each Fiscal Quarter.

                           12.19.2  DEBT SERVICE COVERAGE. Borrower shall
                  maintain a Debt Service Coverage Ratio of not less than
                  1.1:1.0, measured as of the last day of each Fiscal Quarter;
                  provided that compliance with this Subsection shall not be
                  required with respect to any such date if on such date (i)
                  Borrower's Working Capital is in excess of the greater of (A)
                  an amount equal to one-half of the then current Aggregate
                  Commitment, or (B) $4,000,000.00, and (ii) National Beef is in
                  compliance with each of the covenants contained in Sections
                  9.1 through 9.13, and 10.1 through 10.19, as contained in the
                  National Beef Credit Agreement as of April 15, 2002.

                           12.19.3  NET WORTH. Borrower shall maintain Net Worth
                  of not less than $70,000,000.

         1.22     A new Section 5.5 is added to read as follows:

                  5.5      BASE RATE MARGIN; FIXED RATE MARGIN. The Base Rate
         Margin and the Fixed Rate Margin shall be determined pursuant to the
         table below (expressed in basis points) based on the National Beef
         Leverage Ratio, as of the end of each fiscal year of National Beef,
         with such Margins effective as of the fifth Business Day after Agent's
         receipt of a certificate executed by Borrower's chief financial officer
         setting forth the National Beef Leverage Ratio for such fiscal year and
         including the detailed calculation thereof and a copy of the audited
         financial statement of National Beef ("NATIONAL BEEF LEVERAGE RATIO
         CERTIFICATE") (and it being expressly understood that the Fixed Rate
         Margin once set for a Fixed Rate Loan will not change during the Fixed
         Rate Period therefore based upon a subsequent change in the National
         Beef Leverage Ratio), except

                                       8

<PAGE>

         that (a) for the period up to the end of National Beef's current fiscal
         year and Agent's receipt of the National Beef Leverage Ratio
         Certificate with respect to such fiscal year, the Fixed Rate Margin
         until shall be 225 basis points and the Base Rate Margin shall be 0.0
         basis points; and (b) if the National Beef Leverage Ratio Certificate
         is not received by Agent within one hundred twenty (120) days after the
         end of National Beef's fiscal year, the Fixed Rate Margin and the Base
         Rate Margin for the period commencing on the first Business Day after
         such date will each be based on a National Beef Leverage Ratio of 2.75
         continuing until the fifth Business Day after such time as Borrower
         delivers the National Beef Leverage Ratio Certificate to Agent, after
         which time the Fixed Rate Margin and the Base Rate Margin will be based
         on such National Beef Leverage Ratio Certificate:

<TABLE>
<CAPTION>
NATIONAL BEEF
LEVERAGE RATIO                    FIXED RATE MARGIN               BASE RATE MARGIN
--------------                    -----------------               ----------------
<S>                               <C>                             <C>
> or = 2.75                       275.0 basis points              50.0 basis points
> or = 2.25 < 2.75                250.0 basis points              25.0 basis points
> or = 1.75 < 2.25                225.0 basis points              0 basis points
> or = 1.25 < 1.75                200.0 basis points              0 basis points
< 1.25                             175.0 basis points              0 basis points
</TABLE>

         1.23     Exhibit 5.4 is replaced in its entirety by the Exhibit 5.4
                  attached hereto.

2.       CONDITIONS TO EFFECTIVENESS OF THIS THIRD AMENDMENT. The effectiveness
of this Third Amendment is subject to satisfaction, in Agent's sole discretion,
of each of the following conditions precedent:

         2.1      REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Borrower shall be true and correct in all material respects on and
as of the Effective Date as though made on and as of such date.

         2.2      NO EVENT OF DEFAULT. No Event of Default shall have occurred
and be continuing under the Credit Agreement as of the Effective Date of this
Third Amendment.

         2.3      AMENDMENT FEE AND COSTS AND EXPENSES. Borrower shall have paid
to Agent an amendment fee in the amount of $2,500.00, and shall have reimbursed
Agent for all of its costs and expenses incurred in connection with this Third
Amendment, including attorney's fees to Agent's counsel.

3.       GENERAL PROVISIONS.

         3.1      NO OTHER MODIFICATIONS. The Credit Agreement, as expressly
modified herein, shall continue in full force and effect and be binding upon the
parties thereto.

                                       9

<PAGE>

         3.2      EXISTING FIXED RATE LOAN. As of the Effective Date, Borrower
has $8,099,286 of indebtedness under the Credit Agreement outstanding with
CoBank under a 3.11% Fixed Rate Loan that matures October 1, 2002.

         3.3      SUCCESSORS AND ASSIGNS. This Third Amendment shall be binding
upon and inure to the benefit of Borrower and Agent, and their respective
successors and assigns, except that Borrower may not assign or transfer its
rights or obligations hereunder.

         3.4      DEFINITIONS. Capitalized terms used, but not defined, in this
Third Amendment shall have the meaning set forth in the Credit Agreement.

         3.5      SEVERABILITY. Should any provision of this Third Amendment be
deemed unlawful or unenforceable, said provision shall be deemed several and
apart from all other provisions of this Third Amendment and all remaining
provisions of this Third Amendment shall be fully enforceable.

         3.6      GOVERNING LAW. To the extent not governed by federal law, this
Third Amendment and the rights and obligations of the parties hereto shall be
governed by, interpreted and enforced in accordance with the laws of the State
of Colorado.

         3.7      HEADINGS. The captions or headings in this Third Amendment are
for convenience only and in no way define, limit or describe the scope or intent
of any provision of this Third Amendment.

         3.8      COUNTERPARTS. This Third Amendment may be executed by the
parties hereto in separate counterparts, each of which, when so executed and
delivered, shall be an original, but all such counterparts shall together
constitute one and the same instrument. Each counterpart may consist of a number
of copies hereof; each signed by less than all, but together signed by all, of
the parties hereto. Telefax copies of documents or signature pages bearing
original signatures, and executed documents or signature pages delivered by
telefax, shall, in each such instance, be deemed to be, and shall constitute and
be treated as, an original signed document or counterpart, as applicable.

                        [SIGNATURES FOLLOW ON NEXT PAGE]

                                       10

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment
to be executed as of the Effective Date.

                                    BORROWER:

                                    U.S. PREMIUM BEEF, LTD., a marketing
                                    cooperative formed under the laws of the
                                    State of Kansas

                                    By:    /s/ Steven D. Hunt
                                        -----------------------------
                                    Name: Steven D. Hunt

                                    Title: Chief Executive Officer

                                    AGENT:

                                    COBANK, ACB

                                    By:    /s/ Kenneth L. Warlick
                                        -------------------------------
                                    Name:  Kenneth L. Warlick

                                    Title: Vice President

                                    SYNDICATION PARTY:

                                    COBANK, ACB

                                    By:    /s/ Kenneth L. Warlick
                                        -------------------------------
                                    Name:  Kenneth L. Warlick

                                    Title: Vice President

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