Document:

Exhibit 10.4

 

FORM OF

STOCKHOLDERS AGREEMENT

 

THIS
STOCKHOLDERS AGREEMENT, dated as of
[                      
    ], 2010 (this “Agreement”), is entered into by
and among National Beef, Inc., a Delaware corporation (“National Beef”),
U.S. Premium Beef, LLC, a Delaware limited liability company (“USPB”),
TKK Investments, LLC, a Missouri limited liability company (“TKK”),
TMKCo, LLC, a Missouri limited liability company (“TMKCo”, and together
with TKK, the “Klein Entities”), and NBPCo Holdings, LLC, a South Dakota
limited liability company (“NBPCo” and together with USPB and the Klein
Entities, the “Founding Members”).

 

RECITALS

 

WHEREAS, the Founding
Members own all of the outstanding membership units (the “Membership Units”)
of National Beef Packing Company, LLC, a Delaware limited liability company (“NBP
LLC”);

 

WHEREAS, National Beef is
contemplating an offer and sale of its Class A Common Stock, par value
$0.01 per share (the “Class A Common Stock”), to the public in an
underwritten initial public offering (the “IPO”);

 

WHEREAS, it is contemplated
that National Beef will use a portion of the proceeds of the IPO to purchase a
number of Membership Units equal to the number of shares of Class A Common
Stock sold in the IPO;

 

WHEREAS, upon consummation
of the IPO, it is contemplated that National Beef will be admitted as a member,
and appointed as the sole manager, of NBP LLC;

 

WHEREAS, in order to induce
the Founding Members to approve the sale of Membership Units by NBP LLC and the
Founding Members to National Beef and the appointment of National Beef as the
sole manager of NBP LLC, National Beef has agreed to permit USPB and NBPCo to
designate a certain number of persons for nomination to the board of directors
of National Beef (the “Board”) on the terms and conditions set forth
herein; and

 

WHEREAS, pursuant to the
terms of an Exchange Agreement, dated as of
[                      
    ], 2010 (the “Exchange Agreement”), between
National Beef and each of the Founding Members, each Founding Member will have
the right to exchange its Membership Units for shares of Class A Common
Stock, cash or a combination thereof under certain circumstances.

 

NOW, THEREFORE, in
consideration of the covenants and agreements contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, National Beef and the Founding Members agree as follows:

 

 

ARTICLE I

 

Definitions

 

Section 1.1  Certain
Definitions.  For purposes of this Agreement, the following
terms shall have the meanings specified in this Section 1.1:

 

“Board” has the
meaning set forth in the Recitals.

 

“Class A Common
Stock” has the meaning set forth in the Recitals.

 

“Class B Common
Stock” means the Class B common stock, par value $0.000001 per share,
of National Beef.

 

“Designee” has the
meaning set forth in Section 2.1.

 

“Director” means a
member of the Board.

 

“Exchange Agreement”
has the meaning set forth in the Recitals.

 

“Founding Members”
has the meaning set forth in the first paragraph of this Agreement.

 

“Group” has the
meaning set forth in Section 13(d)(3) and Rule 13d-5 of the
Securities Exchange Act of 1934, as amended.

 

“Independent Director”
means any Director who (i) satisfies the definition of an “independent
director” set forth in the applicable rules in the New York Stock Exchange
(the “NYSE”) Listed Company Manual, as such rules may be amended from time
to time, (ii) meets the requirements set forth in the NYSE Listed Company
Manual for membership on National Beef’s Audit Committee of the Board, (iii) meets
the requirements for being a “non-employee director” within the meaning of Section 16b-3
under the Securities Exchange Act of 1934, as amended, and (iv) meets the
requirements for being an “outside director” within the meaning of Section 162(m) of
the Internal Revenue Code of 1986, as amended. 
If the Class A Common Stock is traded on a stock exchange other
than the NYSE, then, with respect to clauses (i) and (ii) of this
definition, such term shall mean any Director who satisfies the definition of “independent
director” and who meets the requirements for audit committee membership
according to the rules of such other stock exchange.  If the Class A Common Stock is not
traded on any stock exchange, then, with respect to clauses (i) and (ii) of
this definition, such term shall mean any Director who satisfies the definition
of “independent director” set forth in the NYSE Listed Company Manual as if the
Class A Common Stock were traded on the NYSE.

 

“IPO” has the meaning
set forth in the Recitals.

 

“Klein Entities” has
the meaning set forth in the first paragraph of the Agreement.

 

“Membership Units”
has the meaning set forth in the Recitals.

 

“National Beef” has
the meaning set forth in the first paragraph of the Agreement.

 

“NBPCo” has the
meaning set forth in the first paragraph of the Agreement.

 

“NBP LLC” has the
meaning set forth in the Recitals.

 

2

 

“NBP LLC Operating
Agreement” means the Amended and Restated Limited Liability Company
Operating Agreement of NBP LLC to be entered into among each of the Founding
Members, National Beef and NBP LLC in connection with the IPO.

 

“Nominating and
Governance Committee” means the Nominating and Governance Committee of the
Board or any committee of the Board authorized to perform the function of
nominating directors for the Board, in each case consisting solely of
Independent Directors.

 

“Person” means any
individual, corporation, limited liability company, partnership, trust, joint
stock company, business trust, unincorporated association, joint venture,
governmental authority or other entity or organization of any nature whatsoever
or any Group of two or more of the foregoing.

 

“Post-IPO Membership
Units” means the total number of Membership Units collectively beneficially
owned by the Founding Members immediately following the consummation of the IPO
(or, in the event that any over-allotment option granted to the underwriters of
the IPO is exercised in whole or in part, then such term shall refer to the total
number of Membership Units collectively beneficially owned by the Founding
Members immediately following the closing of the final exercise of such
option).

 

“Securities Laws”
means the Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated under such
statutes.

 

“TKK” has the meaning
set forth in the first paragraph of the Agreement.

 

“TMK” has the meaning
set forth in the first paragraph of the Agreement.

 

“Transfer” or “Transferred”
means to sell, transfer, give, exchange, bequest, assign, pledge, encumber,
hypothecate or otherwise dispose of, directly or indirectly, either voluntarily
or involuntarily, any of the rights granted under Article II.

 

“USPB” has the
meaning set forth in the first paragraph of the Agreement.

 

Section 1.2.  Other Definitional Provisions.  The words “hereof,” “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Article and Section references are to this Agreement unless otherwise
specified.  The words “include” and “including,”
and variations thereof, shall not be deemed to be terms of limitation, and
shall be deemed to be followed by the words “without limitation.”  The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.

 

ARTICLE II

 

Board Nominations

 

Section 2.1  Designation
Rights; Voting Agreement. 
(a) Subject to the terms and conditions set forth in this
Article II, so long as the Founding Members collectively beneficially own
at least twenty percent (20%) of the Post-IPO Membership Units, USPB and NBPCo
shall 

 

3

 

have the right to designate
a number of persons for appointment or nomination, as the case may be, for
election to the Board as follows (each, a “Designee”):

 

(i)  USPB may designate
four persons for appointment or nomination to the Board, as the case may be, at
least two of whom must qualify as Independent Directors at the time of
designation; and

 

(ii)  NBPCo may
designate two persons for appointment or nomination to the Board, as the case
may be, at least one of whom must qualify as an Independent Director at the
time of designation.

 

The Founding Members agree
that the individual serving as the chief executive officer of National Beef as
of the date of this Agreement shall, so long as such individual holds such
position, automatically be designated by USPB and NBPCo (or either of them as
long as USPB or NBPCo has designation rights under this Section 2.1) as
the seventh or additional person for appointment or nomination to the
Board.  For purposes of this Agreement,
the individual serving as the chief executive officer of National Beef as of
the date of this Agreement shall be deemed a joint Designee of USPB and NBPCo
as long as both have designation rights under this Section 2.1.  With respect to any subsequent individual
serving as the chief executive officer of National Beef, neither USPB nor NBPCo
shall have any obligation with respect to the appointment, nomination or
election of such individual to the Board.

 

At every meeting of the
Board, or a committee thereof, for which Directors are appointed or are
nominated to stand for election by stockholders of National Beef at an annual
or special meeting of stockholders, USPB and NBPCo will have the right to
designate those persons to be appointed or nominated for election to the Board
in accordance with this Section 2.1(a). 
If a Designee is not nominated or elected to the Board because of the
Designee’s death, disability, disqualification, withdrawal as a nominee or for
other reason is unavailable or unable to serve on the Board, the Founding
Member who designated such person shall be entitled to designate promptly
another Designee as a replacement.

 

(b)  During the term of
this Agreement, at each annual or special meeting of the stockholders of
National Beef called for the election of Directors, each Founding Member shall
vote all of its shares of Class A and Class B Common Stock that it
beneficially owns in favor of the election of each of the Designees under this
Agreement.

 

(c)  During the term of
this Agreement, subject to the provisions of Section 2.4, each of the
Founding Members will use its respective reasonable best efforts (including,
without limitation, voting its shares of Class A and Class B Common
Stock) (i) to cause the number of Directors constituting the full Board to
be set at seven and to effect any change in the total number of Directors only
with the consent of each of USPB and NBPCo (to the extent that such Founding
Member possesses a right of designation under this Section 2.1), and (ii) to
cause the appointment or nomination of at least one Independent Director (among
the three Independent Directors selected in accordance with Section 2.1)
who meets the requirements of an “audit committee financial expert” within the
meaning of Item 407 of Regulation S-K under the Securities Exchange Act of
1934, as amended.

 

(d)  At any time a
vacancy on the Board occurs because of the death, disability, resignation or
removal of a Director (other than the chief executive officer), then the Board,
or 

 

4

 

any committee thereof, shall
not fill such vacancy until the earliest to occur of the following:
(i) the Founding Member who had designated such Director has designated a
successor Designee, in which case all of the Founding Members shall use their reasonable
best efforts to cause the Board to fill such vacancy with the appointment of
such successor Designee (in each case subject to the fiduciary duties of the
Board), (ii) such Founding Member fails to designate a successor Designee
within 10 business days of such vacancy, or (iii) such Founding Member has
specifically waived its right under this Section 2.1(d) and has
consented to the Board, or any committee thereof, filling the vacancy with a
nominee selected by the Nominating and Governance Committee.

 

(e)  It is understood
and agreed that the Founding Members are not obligated, at any special or
annual meeting of stockholders at which the election of directors will occur,
to vote their respective shares of Class A or Class B Common Stock in
favor of the election of any Director nominees (other than Designees) proposed
by the Nominating and Governance Committee pursuant to Sections 2.3 or
2.4.  In the event that any such Director nominees are proposed by the
Nominating and Governance Committee, the Founding Members reserve the right as
stockholders to nominate other individuals for the Board with respect to such
positions and to vote for such nominees or other individuals in the sole
discretion of the Founding Members.

 

Section 2.2  Initial Designees.  USPB and NBPCo designate the following
persons as the initial Designees to the Board:

 

	
  Founding Member

  	
   

  	
  Designees

  
	
  USPB

  	
   

  	
  Warren H. Gfeller*

  
	
   

  	
   

  	
  Steven D. Hunt

  
	
   

  	
   

  	
  Stephen A. Lightstone*

  
	
   

  	
   

  	
  John R. Miller

  
	
  NBPCo

  	
   

  	
  Mark R. Peterson*

  
	
   

  	
   

  	
  Larry Shipley

  
	
  USPB/NBPCo

  	
   

  	
  Timothy M. Klein

  
	
   

  	
   

  	
  (Chief Executive Officer)

  

 

*Indicates
an Independent Director.

 

Section 2.3  Effect of Reduction of
Holdings; Certain Events.  (a) If at any time (i) USPB or
NBPCo owns less than five percent (5%) of the Post-IPO Membership Units or (ii) USPB
or NBPCo loses its governance rights with respect to NBP LLC in accordance with
Section 3.5 of the NBP LLC Operating Agreement, then USPB or NBPCo, as the
case may be, shall immediately and permanently cease to have any rights of
designation under Section 2.1.  In
such an event, the Directors who were the Designees of such Founding Member
shall lose such Designee status and continue to serve as Directors until the
expiration of their term or their earlier death, resignation, retirement or
removal.  Following a Founding Member’s
loss of its rights to designation, the number of Directors which such Founding
Member had the right to nominate or appoint under Section 2.1 (not
including for this purpose the designation of the current chief executive officer
that remains with a Founding Member with sole designation rights under Section 2.1)
shall instead be nominated by the Nominating and Governance Committee, 

 

5

 

which shall nominate
additional Independent Directors.  With
respect to each subsequent annual or special meeting of stockholders at which
Directors will be elected, the nominees for these additional Director seats
shall be determined by the Nominating and Governance Committee rather than by
the Founding Members.

 

(b) If at any time USPB
owns a number of Membership Units which is equal to or less than the number of
Membership Units owned by NBPCo, then USPB’s rights of designation under Section 2.1
shall be reduced immediately and permanently to two Directors (not including
for this purpose the joint or sole designation of the current chief executive
officer), at least one of whom must qualify as an Independent Director at the
time of designation.  In such an event,
USPB shall identify two of its existing Designees (not including for this
purpose the joint or sole designation of the current chief executive officer)
as the Designees of USPB who will lose their Designee status.  Such Directors will continue to serve as
Directors until the expiration of their term or their earlier death,
resignation, retirement or removal. 
Following USPB’s loss of its rights to designation as to the two
Directors, such two Directors shall be selected by the Nominating and
Governance Committee, which shall select additional Independent Directors.  With respect to each subsequent annual or
special meeting of stockholders at which Directors will be elected, the
nominees for these Director seats shall be determined by the Nominating and Governance
Committee rather than by the Founding Members.

 

Section 2.4  Effect of Loss of Controlled
Company Status.  (a) Notwithstanding
anything to the contrary provided elsewhere in this Agreement, in the event
that National Beef ceases to qualify as a “controlled company” within the
meaning of the rules of the NYSE (or, if the Class A Common Stock is
traded on a stock exchange other than the NYSE, the comparable rules of
such other exchange), then within twelve months following the date that
National Beef ceases to so qualify, the Board shall, and each of the Founding
Members shall use its respective reasonable best efforts to cause National Beef
and the Board to, increase the size of the Board and to immediately fill the
vacancies created thereby with a number of Independent Directors such that the
number of Independent Directors shall thereafter constitute at least a majority
of the full Board; provided, however, that if, on the date that
National Beef ceases to so qualify, the Board already consists of a number of
Independent Directors that constitutes a majority of the full Board, then no
such increase in the size of the Board shall be required.  The new Independent Directors appointed to
fill such vacancies shall be selected by the Nominating and Governance
Committee.  With respect to each subsequent
annual or special meeting of stockholders at which Directors will be elected,
the nominees for these additional Director seats shall be determined by the
Nominating and Governance Committee rather than by the Founding Members.  The Board shall take such other steps as
reasonably necessary to comply on a timely basis with the requirements of the
NYSE Listed Company Manual (or, if the Class A Common Stock is traded on a
stock exchange other than the NYSE, the comparable rules of such other
exchange), including the corporate governance requirements set forth therein,
upon the loss of the “controlled company” exception.

 

(b) Following the date
that National Beef ceases to qualify as a “controlled company,” if an
individual who was a Designee of a Founding Member pursuant to this Article II
is not elected a Director by the stockholders of National Beef at an annual or
special meeting of stockholders, then the Founding Member whose Designee was
not elected at such stockholder meeting shall retain its director nomination
rights, and in connection with the next annual 

 

6

 

meeting of stockholders,
shall again have the right to nominate its Designees in accordance with this Article II.

 

Section 2.5  Personal Right.  USPB’s and NBPCo’s rights under this Article II
are personal to such Founding Member and may not be Transferred.

 

Section 2.6
 Certain
Covenants of National Beef.  (a) 
National Beef agrees to use its best efforts to cause (i) each Designee to
be included in the Board’s slate of nominees to the stockholders in connection
with each annual or special meeting of stockholders at which Directors will be
elected, and (ii) each Designee to be included in the proxy statement
prepared by the Board of National Beef in connection with the solicitation of
proxies for each such meeting of the stockholders of National Beef and at every
adjournment or postponement thereof.

 

(b)  Notwithstanding
anything herein to the contrary, National Beef shall not be obligated to cause
to be nominated for election to the Board or recommend to the stockholders the
election of any Designee (i) who fails to submit to National Beef on a
timely basis such questionnaires as National Beef may reasonably require of its
Directors generally and such other information as National Beef may reasonably
request in connection with the preparation of its filings under the Securities
Laws, or (ii) the Board or the Nominating and Governance Committee
determines in good faith, after consultation with legal counsel to the Company,
that such action would constitute a breach of the Directors’ fiduciary duties
or applicable law;  provided, however, that upon the occurrence of either (i) or
(ii) above, National Beef shall promptly notify USPB or NBPCo, as the case
may be, of the occurrence of such event and permit USPB or NBPCo, as the case
may be, a reasonable opportunity to provide an alternate Designee in advance of
the stockholder meeting called for the election of Directors.

 

Section 2.7  Calculation of Ownership of
Membership Units.  For the purpose of determining whether a Founding Member individually or
the Founding Members collectively beneficially own the requisite percentage of
the Post-IPO Membership Units under Sections 2.1(a), 2.3(a) and 3.1 of this
Agreement, a Founding Member’s beneficial ownership of any Class A Common
Stock (whether obtained through an exchange of Membership Units for Class A
Common Stock pursuant to the Exchange Agreement, open market purchases of such Class A
Common Stock or otherwise) shall be deemed, solely for purposes of such
calculations, to constitute ownership of Membership Units on a one-for-one
basis.

 

Section 2.8  Notices of Transactions in Class A
Common Stock.  Each Founding Member shall notify in writing National Beef and the other
Founding Members of any acquisition or disposition of any shares of Class A
Common Stock by such Founding Member promptly (but in no event later than the
second business day) after such transaction. 
Such notice shall include the number of shares of Class A Common
Stock acquired or sold by such Founding Member and shall include the Founding
Member’s then current holdings of Membership Units, Class A Common Stock
and Class B Common Stock.  Upon request by
National Beef at any time and within five business days of any such request,
each Founding Member shall notify in writing National Beef and the other
Founding Members of its then current holdings of Membership Units, Class A Common Stock and Class B Common
Stock.  In addition to the preceding
notice obligations, in the event that a Founding Member intends to make a sale
of shares of Class A Common Stock which, if effected, would cause the
termination of this Agreement pursuant to Section 3.1, such Founding
Member may not sell or agree to sell such shares of Class A Common Stock
unless such Founding Member has provided National 

 

7

 

Beef
and the other Founding Members at least 60 days prior written notice of such
sale (which notice shall include the number of shares of Class A Common
Stock intended to be sold and the Founding Member’s then current holdings of
Membership Units, Class A Common Stock and Class B Common
Stock).  Upon the expiration of this 60
day period, such Founding Member may sell such shares of Class A Common
Stock.  With the written consent of each
of the other Founding Members, the 60 day advance notice requirement may be
waived in whole or in part.  A Founding
Member shall determine if a sale of shares of Class A Common Stock would
cause the termination of this Agreement pursuant to Section 3.1 based on
the disclosures of the holdings of Membership Units, Class A Common Stock
and Class B Common Stock provided to National Beef and the other Founding
Members pursuant to this Section 2.8. 
Any notice provided pursuant to this Section 2.8 shall report
ownership of Class A Common Stock, Class B Common Stock and
Membership Units on both a record ownership and beneficial ownership
basis.  “Beneficial ownership” for this
purpose shall be determined in accordance with Rule 13d-3 of the Securities
Exchange Act of 1934, as amended.

 

ARTICLE III

 

Termination

 

Section 3.1  Events of Termination.  This Agreement shall terminate (i) immediately
in the event that the Founding Members collectively beneficially own less than
twenty percent (20%) of the Post-IPO Membership Units or (ii) upon the
written agreement of each of the Founding Members with designation rights that
is a party hereto.

 

Section 3.2  Effect of Termination.  (a)  Upon the termination of this
Agreement, the obligations of each of the parties hereto shall terminate, and
the Directors who were Designees of any Founding Member shall lose such
Designee status and continue to serve as Directors until the expiration of
their term or their earlier death, resignation, retirement or removal.  Following the termination of this Agreement,
the nomination of candidates for Director shall be determined by the Nominating
and Governance Committee or such other method which the Board may determine in
accordance with National Beef’s certificate of incorporation and by-laws,
applicable law and the rules of the NYSE (or such other applicable
exchange on which the Class A Common Stock is then traded).

 

(b)  Nothing in this
Agreement or the termination hereof shall relieve any party for liability for
any willful or intentional breach hereof.

 

ARTICLE IV

 

Miscellaneous

 

Section 4.1  Governing Law.  This Agreement shall be governed by and
construed in all respects in accordance with the laws of the State of Delaware
without giving effect to principles of conflicts of law.

 

Section 4.2  Notices.  All notices, demands or other communications
to be given under or by reason of this Agreement shall be in writing and shall
be delivered by hand or sent by facsimile or sent by overnight courier service
and shall be deemed given when received, as follows:

 

8

 

	
  If to National Beef:

  	
   

  	
  If to USPB:

  
	
   

  	
   

  	
   

  
	
  National Beef, Inc.

  	
   

  	
  U.S. Premium Beef, LLC

  
	
  12200 N. Ambassador Dr.,
  Suite 500

  	
   

  	
  12200 N. Ambassador Dr.,
  Suite 501

  
	
  Kansas City, Missouri
  64163

  	
   

  	
  Kansas City, Missouri
  64163

  
	
  Facsimile: (816) 713-8889

  	
   

  	
  Facsimile: (816) 713-8810

  
	
  Attention: Bret G. Wilson

  	
   

  	
  Attention: Steven D. Hunt

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  Sidley Austin LLP

  	
   

  	
  Stoel Rives LLP

  
	
  One South Dearborn Street

  	
   

  	
  33 South Sixth Street,
  Suite 4200

  
	
  Chicago, Illinois 60603

  	
   

  	
  Minneapolis, Minnesota
  55402

  
	
  Facsimile: (312) 853-7036

  	
   

  	
  Facsimile: (612) 373-8881

  
	
  Attention: Paul L. Choi

  	
   

  	
  Attention: Mark J. Hanson

  
	
  John
  J. Sabl

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to NBPCo:

  	
   

  	
  If to the Klein Entities:

  
	
   

  	
   

  	
   

  
	
  NBPCo Holdings, LLC

  	
   

  	
  TKK Investments, LLC

  
	
  891 Two Rivers Drive

  	
   

  	
  TMKCo, LLC

  
	
  Dakota Dunes, South Dakota
  57040

  	
   

  	
  10217 Hwy 92

  
	
  Facsimile: (605) 217-8001

  	
   

  	
  Kearney, Missouri 64060

  
	
  Attention: Rich Jochum

  	
   

  	
  Facsimile: (816) 713-8852

  
	
   

  	
   

  	
  Attention: Timothy M.
  Klein

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Koley Jessen P.C., LLO

  	
   

  	
   

  
	
  1125 S. 103rd Street, Suite 800

  	
   

  	
   

  
	
  Omaha, Nebraska 68124

  	
   

  	
   

  
	
  Facsimile: (402) 390-9005

  	
   

  	
   

  
	
  Attention: Michael M. Hupp

  	
   

  	
   

  
	
  Matthew D. Maser

  	
   

  	
   

  

 

Any party to this Agreement
may change its address for notices, demands and other communications under this
Agreement by giving notice of such change to the other party hereto in
accordance with this Section 4.2.

 

Section 4.3  Benefit of Parties; Transfer
Prohibited.  This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors. This Agreement may not be Transferred
by any Founding Member.  In the event of
a purported Transfer by a Founding Member to any Person without the consent of
the other Founding Members, the transferee shall not have the rights and powers
of a Founding Member under this Agreement, including, without limitation, the
rights to Director designation under Section 2.1.  

 

9

 

Nothing herein contained
shall confer or is intended to confer on any third party or entity that is not
a party to this Agreement any rights under this Agreement.

 

Section 4.4  Specific Performance.  Each of the parties to this
Agreement acknowledges that each party hereto will be irreparably damaged if
any of the provisions of this Agreement are not performed in accordance with
their specific terms or are otherwise breached. Accordingly, it is agreed that
each of National Beef and the Founding Members shall be entitled to an
injunction to prevent breaches of this Agreement and to specific enforcement of
this Agreement and its terms and provisions in any action instituted in any
court of the United States or any state having subject matter jurisdiction, in
addition to any other remedy to which the parties hereto may be entitled at law
or in equity. Each of the parties hereto hereby consents to personal
jurisdiction in any such action brought in the United States District Court for
the District of Delaware or in any court of the State of Delaware having
subject matter jurisdiction. No bond or other similar undertaking shall be
required of any party seeking relief under this Section.  Each party agrees that, if such party is
found in any such proceeding to have breached this Agreement, such breaching
party shall not object to the imposition of injunctive or other equitable
remedy issued by such court.  A
prevailing party in any such action shall be entitled to the reimbursement of
its costs and expenses (including reasonable attorneys’ fees and expenses) by
the breaching party in connection with any such action.

 

Section 4.5  Amendment.  This Agreement may not be amended, modified,
altered or supplemented except by means of a written instrument executed on
behalf of each of National Beef and each of the Founding Members who continue
to have rights of Director designation under Section 2.1; provided,
however, that no amendment which adversely affects a party to this Agreement
shall be effective with respect to that party without such party’s written
consent.

 

Section 4.6  Waiver.  No failure on the part of any party hereto to
exercise any power, right, privilege or remedy under this Agreement, and no
delay on the part of any party hereto in exercising any power, right, privilege
or remedy under this Agreement, shall operate as a waiver thereof; and no
single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right,
privilege or remedy.

 

Section 4.7  Severability.  If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any
provision of this Agreement held invalid or unenforceable only in part or
degree will remain in full force and effect to the extent not held invalid or
unenforceable.

 

Section 4.8  Entire Agreement.  This Agreement sets forth the entire understanding
of parties hereto and supersedes all other agreements and understandings
between the parties hereto relating to the subject matter hereof.

 

Section 4.9  Counterparts and Facsimiles.  This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other. The parties hereto may execute the
signature pages hereof and exchange such signature pages by facsimile
transmission.

 

10

 

Section 4.10  Interpretation of Agreement.  The Section headings contained in this
Agreement are solely for the purpose of reference, are not part of the agreement
of the parties and shall not in any way affect the meaning or interpretation of
this Agreement.  Each party hereto and
its counsel cooperated in drafting and preparation of this Agreement. Any rule of
law or any legal decision that would require interpretation of any ambiguities
in this Agreement against the party that drafted it is of no application and is
hereby expressly waived.

 

[Signature page to follow]

 

11

 

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

 

 

	
   

  	
  NATIONAL BEEF, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Timothy M. Klein

  
	
   

  	
   

  	
  Title: President and Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. PREMIUM BEEF, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Steven D. Hunt

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NBPCO HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TKK INVESTMENTS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Timothy M. Klein

  
	
   

  	
   

  	
  Title: Sole Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TMKCO, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Timothy M. Klein

  
	
   

  	
   

  	
  Title: Sole Manager

  

 

12Exhibit 10.5

 

FORM OF MANAGEMENT SERVICES
AGREEMENT

 

THIS
MANAGEMENT SERVICES AGREEMENT (this “Agreement”) is made and entered
into as of
                        ,
2010 (the “Effective Date”), between NATIONAL BEEF PACKING COMPANY, LLC,
a Delaware limited liability company (“NBP LLC”), and NATIONAL BEEF, INC.,
a Delaware corporation (“NBI “).

 

RECITALS

 

A.            As contemplated by the terms
of the Amended and Restated Limited Liability Company Agreement of NBP LLC
dated as of
                        ,
2010 (the “LLC Agreement”), the members of NBP LLC have appointed NBI as
sole manager (the “Manager”) of NBP LLC and approved this Management
Services Agreement.

 

B.            To facilitate the operation
of the business of NBP LLC, NBP LLC and NBI desire for NBI to provide certain
management services to NBP LLC supplemental to NBI’s role under the LLC
Agreement and memorialize certain responsibilities of NBI in managing NBP LLC
on the terms and subject to the conditions specified in this Agreement.

 

C.            To facilitate NBI’s provision
of management services, NBP LLC and NBI desire for NBP LLC to provide certain
administrative services, facilities and other resources to NBI on the terms and
subject to the conditions specified in this Agreement.

 

AGREEMENT

 

In
consideration of the covenants and agreements contained herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, NBP LLC and NBI agree as follows:

 

1.             Definitions.

 

The
following terms shall have the indicated meaning:

 

“Affiliate”
means with respect to a Person, any other Person that directly, or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person.  As
used in this definition, the word “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities, by
contract or otherwise.

 

“Aggregate
Employee Costs” means, with respect to any month, the aggregate amount of
Attributable Employee Costs.

 

“Agreement”
is defined in the introductory paragraph.

 

“Attributable
Employee Costs” means, with respect to each Service Employee, the monthly
Employee Costs attributed to such Service Employee.

 

 

“Board”
means the Board of Directors of NBI.

 

“Effective
Date” is defined in the introductory paragraph.

 

“Employee
Costs” means the direct out-of-pocket costs or reasonable allocated costs
of NBI (i) for gross wages, salaries, bonuses, incentive compensation,
equity compensation and payroll taxes of the Service Employees, plus (ii) for workers’ compensation insurance incurred
by NBI with respect to the Service Employees, plus
(iii) for employee benefit plans attributable to any Service Employees,
including pension, savings, medical, dental, vision, disability and life
insurance, plus (iv) for other benefits
directly attributable to the Service Employees, including fringe benefits, or
other similar incentive programs, executive programs, severance pay, employee
assistance programs, cafeteria plan benefits, dependent care and health care
flexible spending accounts, sick leave, legal assistance, and educational
assistance, plus (v) related to the employee
benefit plans or programs, including incremental costs of charges or premiums,
employee participation, actuarial reports, accounting, or legal fees.

 

“Health
and Welfare Plans” is defined in Section 4.3(d).

 

“Law”
or “Laws” means all applicable federal, state, tribal and local laws
(statutory or common), rules, ordinances, regulations, grants, concessions,
franchises, licenses, orders, directives, judgments, decrees, restrictions and
other similar requirements, whether legislative, municipal, administrative or
judicial in nature.

 

“LLC
Agreement” is defined in the Recitals.

 

“Losses”
is defined in Section 5.1.

 

“Management
Services” means all services performed by Service Employees, whether the
provision of such services by NBI is required or contemplated by the LLC
Agreement or is supplemental to the services to be provided by NBI to NBP LLC
under the LLC Agreement, relating to the management and operation of the
business of NBP LLC, including executive oversight, sales, marketing,
advertisement production, recruiting, training, distribution, finance, accounting
support and reporting, legal support and other services and activities as are
customarily performed by persons holding the positions set forth on Exhibit B
hereto.

 

“NBI”
is defined in the introductory paragraph.

 

“NBI
Indemnified Parties” is defined in Section 5.2.

 

“NBP
LLC” is defined in the introductory paragraph.

 

“NBP
LLC Indemnified Parties” is defined in Section 5.3.

 

“Person”
means an individual, corporation, joint venture, partnership, limited
partnership, limited liability company, trust, estate, business trust,
association, governmental authority or any other entity.

 

2

 

“Reimbursable
Costs” shall mean all of the reasonable out-of-pocket costs and expenses
directly incurred by NBI in connection with the providing of the Management
Services, including the following:

 

(a)           all supplies and equipment
purchased on behalf of NBP LLC in order to provide the Management Services;

 

(b)           reasonable meals, travel,
hotel accommodations, and entertainment expenses incurred in connection with
the performance of the Management Services;

 

(c)           legal, accounting, health
and safety, environmental, and other third party advisors and consultants
incurred in connection with the performance of the Management Services;

 

(d)           directors’ and officers’
insurance policies, employee practices liability insurance policies and any
indemnification of directors or officers of NBI; and

 

(e)           bank accounts maintained by
NBI on behalf of NBP LLC.

 

“Service
Employees” means those employees of NBI who devote all or a portion of
their working time to the performance of the Management Services.  Service Employees include and will include
any former Service Employee to whom NBI has ongoing obligations.

 

“Services
Fee” is defined in Section 3.1.

 

“Supporting
Documentation” is defined in Section 2.5(a).

 

2.             Performance of Management
Services.

 

2.1           Initial Transfer of
Employees.  Upon the
Effective Date, NBP LLC shall transfer to NBI all employees identified in Exhibit A
and related agreements of such employees, and NBI shall adopt, honor, and
continue all obligations and commitments related to such employees,
specifically including, without limitation, salary and benefit agreements.

 

2.2           Management Services.  From and after the Effective Date, NBI agrees
to provide the Management Services on the terms and conditions set forth in
this Agreement and in compliance with the policies and programs established by
the Board of Directors of NBI (the “Board”).

 

2.3           Subcontractors.  NBI may subcontract with third parties to
assist in the performance of the Management Services; provided,
however, that NBI shall not be relieved of any obligation under this
Agreement or the LLC Agreement as a result of any subcontract entered into
pursuant to this Section 2.3; and further provided, that NBI, at all
times, will manage, supervise and monitor such parties.

 

2.4           Compliance with Laws.  NBI shall perform the Management Services in
compliance with all applicable Laws.

 

3

 

2.5           Supporting Documentation.

 

(a)           NBI shall keep reasonable
supporting documentation of all the Services Fees and Reimbursable Costs (the “Supporting
Documentation”).  NBI shall maintain
and retain the Supporting Documentation in a manner consistent with NBI’s
record retention policies.

 

(b)           NBP LLC, upon reasonable
notice to NBI, shall have the right to inspect and audit, during normal
business hours and using reasonable commercial efforts not to disrupt the
normal business operations of NBI, the Supporting Documentation to the extent
reasonably necessary to verify any information regarding the Services Fees or
Reimbursable Costs with respect to any year within the twelve month period
following the end of such year.  The
costs of any such inspection or audit shall be borne by NBP LLC.

 

2.6           Employee Matters.  All Service Employees shall be employees of
NBI, and not NBP LLC provided that NBI may direct a Service Employee to report
to officers or employees of NBP LLC as the parties may from time to time agree.  NBI shall recruit, select, employ, promote,
terminate, supervise, direct, train and assign the duties of all Service
Employees, and may change or replace any such Service Employee at any time in
each case in NBI’s sole discretion.  To
the extent practicable, NBI shall notify NBP LLC before terminating any Service
Employee, but all such termination decisions shall be made by NBI in its sole
discretion.

 

2.7           No Partnership.  Nothing contained in this Agreement or in the
relationship between NBI and NBP LLC constitutes, or may be construed to be or
to create, a partnership or joint venture between NBI and NBP LLC.

 

2.8           LLC Manager.  Nothing contained in this Agreement shall
alter NBI’s rights and obligations as Manager of NBP LLC, as set forth in the
LLC Agreement and applicable law.

 

3.             Management Services Fee and
Payment.

 

3.1           Services Fee.  During the term of this Agreement, NBP LLC
shall pay NBI a monthly fee (the “Services Fee”) for performance of the
Management Services equal to the Aggregate Employee Costs for such month.

 

3.2           Reimbursable Costs.  During the term of this Agreement, NBP LLC
shall pay NBI the amount of the Reimbursable Costs on a monthly basis.

 

3.3           Billing and Payments.  On the Effective Date, NBP LLC shall pay NBI
the estimated Services Fee for the remaining portion of the then current month
and for the following month, as set forth on Exhibit B.  Each month after the Effective Date, NBI will
invoice NBP LLC for the estimated Services Fee for the following month and the
Reimbursable Costs for the preceding month. 
The invoice shall also include any adjustment in the amount owed by NBP
LLC based on any difference between the prior estimated Services Fees and
actual Services Fees that have been accounted for in the preceding month.  NBP LLC shall pay NBI the Services Fee and
Reimbursable Costs set forth in the invoice in immediately available funds
within [10] days following receipt of such invoice.

 

4

 

4.             Performance of Administrative
Services.

 

4.1           Administrative Services.  From and after the Effective Date, NBP LLC
agrees to provide reasonable office facilities, equipment, supplies and
administrative and other support services to NBI as are reasonably required by
NBI to perform the Management Services and at a level no less than NBP LLC has
historically provided such services to support the work of its executive
officers.

 

4.2           Payroll Accounting and
Financial Reporting and Other Support Services.  From and after the Effective Date, NBP LLC agrees
to provide payroll, accounting and financial reporting and other support
services for NBI

 

(a)           Payroll.  NBP LLC shall perform all payroll functions
for payment of NBP LLC and NBI employees. 
NBP LLC shall be designated as the common paymaster for NBP LLC and NBI
and shall be responsible for payroll tax withholding, remission and payroll tax
reporting of compensation for NBP LLC and NBI employees.  NBP LLC and NBI shall take such action as may
be reasonably necessary or appropriate in order to minimize liabilities related
to payroll taxes in connection with the transfer of Service Employees from NBP
LLC to NBI

 

(b)           Accounting and Financial
Reporting.  NBP LLC
shall provide accounting and financial reporting services as reasonably
required by NBI, operations.

 

(c)           Other Support Services.  NBP LLC shall provide other reasonable
supporting services for NBI including: 
management, sales, marketing, advertisement production, distribution,
information technology, human resources, and legal supporting services on the
same or similar terms as such services are provided to NBP LLC.

 

4.3           Employee Benefits.  From and after the Effective Date, NBP LLC
agrees that NBI employees shall be eligible to actively participate in the NBP
LLC group employee benefit plans and, to the extent applicable, NBI shall be a
participating employer in any NBP LLC group employee benefit plan.  NBI agrees that employees of NBP LLC and its
subsidiaries may be eligible to receive awards under the NBI Equity Incentive
Plan.

 

(a)           Service Recognition.  NBP LLC shall cause the NBP LLC group
employee benefit plans with respect to which service is a relevant factor to
credit Service Employees who are employed by NBP LLC immediately prior to a
transfer of employment to NBI with service before the effective date of the
transfer, except to the extent duplication of benefits would result.

 

(b)           NBI Equity Incentive Plan.  NBP LLC shall provide administrative
supporting services with respect to operation, administration and required
reporting for the NBI Equity Incentive Plan. 
Section 3.3(c) of the LLC Agreement shall govern the terms and
conditions relating to authorization and issuance of additional units of NBP
LLC in connection with equity compensation awards under the NBI Equity
Incentive Plan to employees and other service providers of NBI and NBP
LLC.  The Board or a committee of the
Board shall approve equity awards made under the plan.

 

5

 

(c)           401(k) Plan.  NBP LLC and NBI shall take all actions required
or appropriate to provide that NBI shall adopt the National Beef Packing
Company, LLC 401(k) Profit Sharing Plan, or its successor, so that NBI
will become a participating employer or alternatively NBP LLC will adopt a plan
with identical benefits to provide for participation by eligible NBI employees.

 

(d)           Health and Welfare Plans.  NBP LLC and NBI shall take all actions
required or appropriate to provide that NBI shall adopt, as a participating
employer, the health and welfare benefit plans and other fringe benefits
sponsored by NBP LLC for its employees (the “Health and Welfare Plans”)
to permit eligible NBI employees and their covered dependents to participate in
the Health and Welfare Plans.  NBP LLC
shall take appropriate action with respect to Service Employees transferred to
NBI to (i) waive any pre-existing condition limitation on benefits for
Service Employees enrolled in a NBP LLC Health and Welfare Plan, (ii) take
into account and credit any out-of-pocket annual maximums and deductibles for the
calendar year during which service is provided to both NBP LLC and NBI , (iii) take
into account prior claim experience under the NBP LLC Health and Welfare Plans
with respect to aggregate lifetime maximum benefits available to the Service
Employee, and (iv) credit any health care reimbursement account
accumulated for the calendar year in which service is provided to both NBP LLC
and NBI  NBP LLC shall be responsible for
administering compliance with the health care continuation requirements of
COBRA, the certificate of creditable coverage requirements of HIPAA, the
corresponding provisions of the NBP LLC Health and Welfare plans with respect
to NBP LLC and NBI employees and their covered dependents.  NBP LLC and NBI agree that the transfer of
Service Employees to NBI shall not constitute a COBRA qualifying event.

 

(e)           Vacation.  NBI shall assume and honor all unused
vacation and other time-off earned or accrued by Service Employees for service
with NBP LLC prior to the Effective Date (which shall be reimbursable as
Employee Costs).

 

(f)            Other.  NBI and NBP LLC shall take all actions
required or appropriate to ensure that the employee benefits provided to NBI
employees are in the aggregate no less than the employee benefits available to
continuing employees of NBP LLC.

 

5.             Limitation on Liability;
Indemnification.

 

5.1           Exculpation of NBI.  Neither NBI nor its officers, directors,
agents and employees shall be liable to NBP LLC for any claims, actions,
losses, damages, liabilities, causes of action, fines, costs and expenses
(including reasonable investigation costs and reasonable attorneys’, experts’
and consultants’ fees) (“Losses”) suffered or incurred by NBP LLC,
directly or indirectly, in connection with the performance of the Management
Services, except to the extent such Losses are caused by willful misconduct or
gross negligence of NBI (in which case only NBI, and not its officers,
directors, agents or employees, shall be liable to NBP LLC for Losses caused by
such willful misconduct or gross negligence). 
No party hereto shall be liable to the other party for, and the term
Losses shall not include, any lost profits, lost sales, business interruption,
decline in value, lost business opportunities, or consequential, incidental,
punitive or exemplary damages; provided, however,
that this waiver shall not limit a party’s right to 

 

6

 

indemnification for liabilities incurred by such
party to a third party (other than the members of NBP LLC and their Affiliates)
claiming such items as damages.

 

5.2           NBP LLC Indemnification of
NBI.  NBP LLC shall indemnify,
defend and hold harmless NBI and its Affiliates, directors, officers, members,
managers, agents, and employees (the “NBI Indemnified Parties”) from and
against all Losses arising from the claims of any third party to the extent
such claims arise directly or indirectly out of NBI’s performance of the
Management Services, including any Losses arising out of or otherwise related
to NBI’s employment of the Service Employees and the furnishing of such Service
Employees to NBP LLC; provided, however,
NBP LLC shall not be responsible for indemnifying or defending any of the NBI
Indemnified Parties or otherwise be liable to any of the NBI Indemnified
Parties with respect to any Losses arising from NBI’s willful misconduct or
gross negligence.  This right to
indemnification is non-exclusive, and does not limit any right an NBI
Indemnified Party may have under the NBP LLC Limited Liability Company
Agreement.

 

5.3           NBI Indemnification of NBP
LLC.  NBI shall indemnify, defend
and hold harmless NBP LLC, its members and employees and directors, officers
and agents of the members (the “NBP LLC Indemnified Parties”) from and
against all Losses resulting directly or indirectly from any act or omission by
NBI that constitutes willful misconduct or gross negligence; provided, however, NBI shall not be responsible for
indemnifying or defending any of the NBP LLC Indemnified Parties or otherwise
be liable to any of the NBP LLC Indemnified Parties with respect to any Losses
for which NBP LLC is obligated to indemnify NBI as provided in Section 5.2.

 

5.4           Special Indemnification
Provisions.  The
indemnification obligations of NBP LLC under Section 5.2 and NBI under Section 5.3
shall in each case be conditioned upon (a) prompt notice from the other
party hereto after such Person learns of any claim or basis therefor which is
covered by such indemnity (except to the extent that the failure to provide
prompt notice does not prejudice the indemnifying party), (b) such party’s
not taking any steps which would bar NBP LLC or NBI, as the case may be, from
obtaining recovery under applicable insurance policies or would prejudice the
defense of the claim in question and (c) such party’s taking of all reasonably
necessary steps which if not taken would result in NBP LLC or NBI, as the case
may be, being barred from obtaining recovery under applicable insurance
policies or would prejudice the defense of the claim in question.

 

6.             Term; Termination; Default.

 

6.1           Term.  This Agreement shall become effective on the
Effective Date and shall continue until terminated as provided in Section 6.2.

 

6.2           Termination.  This Agreement shall terminate, with no
further action necessary by either NBP LLC or NBI, on the date that NBI ceases
to be the Manager of NBP LLC pursuant to the terms of the LLC Agreement.

 

6.3           Surrender.  Upon the termination of this Agreement, NBP
LLC and NBI shall deliver any property belonging to the other party hereto.

 

7

 

6.4           Payment of Expenses After
Termination; Accrued Obligations.

 

(a)           Neither party hereto shall
be relieved from any obligations or liabilities accruing prior to the effective
date of termination, including in the case of NBP LLC, its obligation to make payment
to NBI of all sums due NBI under this Agreement in respect of the performance
of the Management Services prior to the date of termination.  After termination of this Agreement, NBI
shall provide NBP LLC a final invoice showing any prorated amount of the
Services Fee to be returned to NBI and the outstanding Reimbursable Costs due
to NBI.  The balance owed to NBI or NBP
LLC, as applicable, shall be paid by the other party within [15] days following
receipt of the final invoice.

 

(b)           Upon termination of this
Agreement, all employment agreements then in effect, including any employment
agreements with former Service Employees pursuant to which NBI has ongoing
obligations, shall be assigned by NBI to NBP LLC, effective as of termination,
and NBP LLC shall assume all obligations under such agreements.

 

6.5           Survival.  The provisions set forth in Sections 5, 6.3,
6.4 and 7.1 shall survive the termination of this Agreement.

 

7.             Miscellaneous.

 

7.1           Governing Law.  This Agreement shall be governed by and
construed in all respects in accordance with the laws of the State of Delaware
without giving effect to principles of conflicts of law.

 

7.2           Notices.  All notices, demands or other communications
to be given under or by reason of this Agreement shall be in writing and shall
be deemed to have been received when delivered personally, or when transmitted
by overnight delivery service, addressed as follows:

 

	
  If to NBI:

  	
   

  	
  12200
  Ambassador Drive, 5th Floor

  
	
   

  	
   

  	
  Kansas
  City, MO 64163

  
	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
  Fax:
  (816) 713-8889

  
	
   

  	
   

  	
   

  
	
  If to NBP LLC:

  	
   

  	
  12200
  Ambassador Drive, 5th Floor

  
	
   

  	
   

  	
  Kansas
  City, MO 64163

  
	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
  Fax:
  (816) 713-8889

  

 

Either
party hereto may change its address for notices, demands and other
communications under this Agreement by giving notice of such change to the
other party hereto in accordance with this Section 7.2.

 

7.3           Benefit of Parties;
Assignment.  This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors, legal representatives and permitted
assigns.  This Agreement may not be
assigned by either NBI or NBP LLC except with the prior written consent of the
other party.  With the exception of the
rights of the NBI Indemnified Parties under Section 5.2 and the rights of
the NBP LLC Indemnified Parties under 

 

8

 

Section 4.3, nothing herein contained shall
confer or is intended to confer on any third party or entity that is not a
party to this Agreement any rights under this Agreement.

 

7.4           Amendment.  This Agreement may not be amended, modified,
altered or supplemented except by means of a written instrument executed on
behalf of each of NBI and NBP LLC and approved as provided in Section 6.6
of the LLC Agreement.

 

7.5           Waiver.  No failure on the part of either party hereto
to exercise any power, right, privilege or remedy under this Agreement, and no
delay on the part of either party hereto in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver thereof;
and no single or partial exercise of any such power, right, privilege or remedy
shall preclude any other or further exercise thereof or of any other power,
right, privilege or remedy.

 

7.6           Severability.  If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect.  Any provision of this Agreement held invalid
or unenforceable only in part or degree will remain in full force and effect to
the extent not held invalid or unenforceable.

 

7.7           Entire Agreement.  This Agreement sets forth the entire
understanding of parties hereto and supersedes all other agreements and
understandings between the parties hereto relating to the subject matter
hereof.

 

7.8           Counterparts and Facsimiles.  This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other. 
The parties hereto may execute the signature pages hereof and
exchange such signature pages by facsimile transmission.

 

7.9           Limitation on Covered
Services.  It is the
parties’ intent that the services and activities of NBI for which it may
receive compensation, reimbursement or indemnification, as the case may be,
under this Agreement, are limited to services and activities relating to the
management and operation of NBP LLC and do not include services and activities
of NBI solely for its benefit or not related to the management or operation of
NBP LLC.  NBI agrees to develop a policy
that a) requires the management of NBI, on an ongoing basis, to determine which
services and activities relate to the management and operation of NBP LLC and
which services and activities are solely for the benefit of NBI or are not
related to the management and operation of NBP LLC and b) provides for Board
approval of management determinations exceeding a specified threshold
amount.  The parties further agree that
in the event of a dispute between NBI and NBP LLC, each party shall be
responsible for payment of the costs and expenses it incurs in connection with
such dispute.

 

7.10         Interpretation of Agreement.

 

(a)           As used in this Agreement,
the words “include” and “including,” and variations thereof, shall not be
deemed to be terms of limitation, and shall be deemed to be followed by the
words “without limitation.”

 

9

 

(b)           Unless otherwise specified,
references in this Agreement to “Sections” and “Exhibits” are intended to refer
to Sections of and Exhibits to this Agreement.

 

(c)           The Section headings
contained in this Agreement are solely for the purpose of reference, are not
part of the agreement of the parties and shall not in any way affect the
meaning or interpretation of this Agreement.

 

(d)           Each party hereto and its
counsel cooperated in drafting and preparation of this Agreement and the
documents referred to in this Agreement. 
Any rule of law or any legal decision that would require
interpretation of any ambiguities in this Agreement against the party that
drafted it is of no application and is hereby expressly waived.

 

[Signature page to follow]

 

10

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
on the day and year first above written.

 

	
   

  	
  NBP
  LLC:

  
	
   

  	
   

  
	
   

  	
  NATIONAL
  BEEF PACKING COMPANY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  NBI:

  
	
   

  	
   

  
	
   

  	
  NATIONAL
  BEEF, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[Signature page of
Management Services Agreement]

 

 

Exhibit A

 

Transferred Employees

 

	
  Name

  	
   

  	
  Job Title(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

A-1

 

Exhibit B

 

Initial Services Fee Payment

 

	
  Estimated
  Services Fee for
                                
  2010 (prorated for          days):

  	
   

  	
  $

  	
   

  
	
  Estimated
  Services Fee for
                                
  2010:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TOTAL:

  	
   

  	
  $

  	
   

  

 

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]