Document:

Agreement between National Beef and United Food dated December 20, 1999

 Exhibit 10.19 
  

	 Agreement
	  	2
	 Base Rate/Job Grades
	  	24
	 Bidding Process
	  	10
	 Bulletin Boards
	  	31
	 Check-Off
	  	3
	 Disability Insurance
	  	23
	 Duration and Termination
	  	32
	 Education, Safety and Cultural Fund
	  	31
	 Equipment Furnished by the Company
	  	14
	 Employee Meat Purchase Plan
	  	15
	 Ergonomics
	  	20
	 Funeral Leave
	  	20
	 Grievance Procedure
	  	15
	 Guarantee
	  	3
	 Health Benefits
	  	22
	 Holidays
	  	12
	 Hours of Work
	  	4
	 Layoff and Recall
	  	11
	 Leaves of Absence
	  	18
	 Management Rights
	  	2
	 Meal Periods - Rest Periods
	  	14
	 Memorandums of Understanding I-II
	  	31
	 No Strike - No Lockout
	  	15
	 Non-Discrimination
	  	2
	 Orientation
	  	11
	 Overtime Work
	  	5
	 Pension Fund
	  	21
	 Prescription Card
	  	22
	 Recognition and Bargaining Unit
	  	2
	 Savings Clause
	  	17
	 Seniority
	  	5
	 Subcontracting
	  	18
	 Union Visitation
	  	2
	 Vacation
	  	13
	 Wages
	  	23
	 Waiver
	  	17

  

 1 

 AGREEMENT 
  

THIS AGREEMENT made and entered into this 20th day of December 1999 by and between NATIONAL BEEF, of Liberal, Kansas hereinafter referred to as
the “Company”, and UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION, AFL-CIO-CIC, UFCW DISTRICT LOCAL TWO, hereinafter referred to as the “Union”. 
  
 RECOGNITION AND BARGAINING UNIT 
  
 The Company recognizes the Union, United Food and Commercial Worker’s International Union, AFL-CIO-CIC, UFCW DISTRICT
LOCAL TWO as bargaining agent of all full time and regular part time production and maintenance employees employed by National Beef Packing Company at its facility located at 1501 E. 8th Street, Liberal, KS but excluding all office and clerical
employees, lab, professional employees and supervisors as defined by the National Labor Relations Act for the purpose of collective bargaining in respect to rates of pay, wages, hours of employment and other conditions of employment. 
  
 MANAGEMENT RIGHTS 
  
 Section 1 The Management of the plant and the direction of the working
force - including the right to hire, suspend, discipline or discharge for just cause; to assign jobs; to transfer, promote or demote employees; to increase and decrease the working force; production standards and rules applicable to the employees;
to determine products to be handled, produced or manufactured; the schedules of production; and the methods, processes and means of production or handling; as well as the right to determine the qualifications and ability of employees; are vested
exclusively in the company, provided this will not be used for the purpose of discrimination against any employee or to avoid any of the provisions of this agreement. 
  
 Section 2 Supervisors or other personnel may perform any duties that are necessary in the conduct of the business and
do not result in the displacement of bargaining unit employees. 
  
 Section 3 It is mutually agreed that the Company retains all management rights and prerogatives heretofore held except such rights as are specifically relinquished herein. 
  
 NON -DISCRIMINATION 
  
 Section 1 Neither the Company nor the Union will discriminate unlawfully against any employee or applicant for employment or union member because
of race, color, creed, sex, age, veterans status, handicaps, religion, or natural origin or because of membership or non-membership in the Union. 
  
 Section 2 The parties of this agreement will comply with any and all affirmative action requirements. 
  
 Section 3 The Company shall not discriminate against or discharge any
employee because of immigration hearings and/or deportation hearings that are initiated or are pending, provided advance permission is obtained from the employee’s immediate supervisor. In the event an employee is unable to obtain advance
permission, satisfactory written verification from the agency involved will be required. 
  
 UNION VISITATION 
  
 Union
representatives shall have the right to visit the work place to inspect working conditions 

  

 2 

 
and to generally carry out the terms of this Agreement providing they make prior arrangements and report to a designated Company representative upon entering
the job site, and so long as such visits do not interfere with operations. 
  
 CHECK-OFF 
  
 Section 1
If authorized and directed to do so by any employee in writing and so long as both such authorization and the contract between the Company and the Union remain in effect, the Company shall deduct the equivalent of the initiation fee, if
applicable, of the Union and the equivalent of the weekly Union dues from the pay of such employee. Deductions shall be made from the employee’s pay each week, and the Company shall promptly remit the same to the officer designated by the
Union. The Company agrees to recognize the form for check-off authorization which is found at the end of this contract. The Company agrees to furnish the Union with a mailing list of all bargaining unit employees upon request by the Union, however,
such requests shall not exceed four (4) times per any calendar year. The Unions agree to defend, indemnify, and hold harmless the Company from any and all claims, suits and damages arising out of or in any way connected with actions taken by the
Company, for the purpose of complying with this article of the contract including disposition of such funds after they have been remitted by the Company to the Union. 
  
 Section 2 Neither the Union, its officers, nor its members shall intimidate, harass, or coerce employees to cause
them to join the Union nor shall the Company intimidate, harass, or coerce employees to prevent them from joining or cause them not to join the Union. 
  
 Section 3 The Company will make a deduction for the Union’s Active Ballot Club from the wages of the employees who voluntarily authorize such
deductions in writing, based on authorizations received two (2) weeks prior to the deduction date and will forward the Active Ballot Club deduction to the Union. 
  
 Such Active Ballot Club deductions will be made fifty-two (52) times during each calendar year during the term of this
agreement unless the authorization is canceled with the Union, in writing, by the employee. 
  
 Section 4 It is also understood by all parties that the Company shall be required to make deductions only from wages earned for each individual pay period. There shall be no make-up provisions should an
employee be off work for any reason, with the exception of vacation. 
  
 GUARANTEE 
  
 Section 1 Unless notified of
a layoff on or before Saturday of the prior week all regular full-time employees will receive a weekly guarantee in the amount of thirty-six (36) hours work or pay in lieu of work at their straight time rate. 
  
 The Company shall have the right to reduce the weekly guarantee of hours to
thirty-two (32) hours, not more than ten (10) weeks per contract year. Notification of the reductions for any week must be made on the previous Friday. If notification is given and then thirty-six (36) or more hours are worked, it shall not count as
a week against the ten (10) weeks. 
  
 The guarantee shall be
reduced by time absent for any reason and for eight (8) hours each full day in which the plant is unable to operate due to conditions beyond the Company’s control such as: fire, explosion, power failure, storm, strike, or boycott by a labor or
similar group. When a holiday or holidays occur in the same work week, eight (8) hours of the holiday pay for each holiday 

  

 3 

 
shall be applied toward the guarantee for the week. 
  
 Section 2 The guaranteed work week shall apply only to regular full-time employees who commence work on the first scheduled day of the work-week.
Employees displaced because of operations of the seniority provisions shall receive pay only for those hours worked in the week hired or displaced. 
  
 Section 3 Employees called to work will be provided with a minimum of four (4) hours of work or pay in lieu of work. 
  
 Section 4 Employees who are called to work outside their regular work
schedule after once going home for the day and not at a time when such work merges with their regular shift shall be guaranteed four (4) hours work at one and one-half (1 1/2) times their regular rate of pay and the employees called to work outside their regular shift shall be paid in accordance with the provisions outlined in the Hours of Work
Article. 
  
 Section 5 The guaranteed work week
shall apply to those regular full-time employees who have completed their probationary period prior to the commencement of that payroll week.  
  
 Section 6 All regular full-time employees will be paid gang time on the day they are injured, up to a maximum of eight (8) hours with the exception
of maintenance employees who are scheduled for a twelve hour shift. Those maintenance individuals will be eligible for up to a maximum of twelve (12) hours pay. 
  

HOURS OF WORK 
  
 Section 1 The work week for payroll purposes shall start at 12:01 a.m. on Monday and ends at midnight Sunday evening. 
  
 Section 2 Hours of work shall be scheduled in line with production
requirements and employees will be notified in advance of changes in shift schedules except where such change is due to circumstances beyond the control of the Company 
  
 Section 3 Regular full-time employees working on holidays shall receive their regular holiday pay and shall be paid
at twice their regular rate for work actually performed on such holiday. 
  
 Section 4 Gang time for the kill floor will be figured on the work assigned to the gutter. Gang time for the fabrication floor will be figured on the work assigned to the hind saw. 
  
 Certain covered workers shall be paid gang time plus six (6) minutes time
spent in the following activities: (1) putting on unique, specialized safety equipment (mesh aprons, mesh gloves, arm and belly guards, sleeves, or leggings); (2) taking off unique, specialized safety equipment; (3) walking from the place of work on
the production line to the wash station to wash equipment mentioned above;(4) waiting in line at the wash station; and (5) washing the unique, specialized safety equipment. The time spent in such activities may vary from job to job, worker to
worker, department to department, and six (6) minutes is a reasonable agreed upon average. If these provisions are held by a court of law not to comply with FLSA, such provisions and/or the payments for gang time shall be suspended and subject to
re-negotiation. 
  
 Section 5 For the purpose of computing
pay for hours worked on Sunday or paid holidays, a shift cutting across two (2) calendar days shall be treated as work on the day which the shift begins. 
  
 Section 6 There shall be no pyramiding of premium pay. Any work performed on a holiday, Sunday, or the day designated in lieu of Sunday as provided
herein shall be paid at twice the regular hourly rate only and these hours shall not be used in computing weekly overtime. 
  

 4 

 Section 7 Time and one-half (1 1/2) will be paid for all hours worked in excess of forty (40) hours in any one week, or eight (8) hours in any one day except as provided under section 9 of this article

  
 All employees other than part time and temporary
employees shall be compensated at one and one-half (1 1/2) time their regular rate for work performed on their
sixth (6th) consecutive day of work within the work week provided they have worked all scheduled hours during the first (1st) five (5) days of said work week. 
  
 Section 7, Any employee off work for union business will not be paid for those hours by the Company but that time off will be considered time worked as it relates to the computation of sixth consecutive day over-time pay. 

 
 Section 8 Employees working on Sundays with the exception of
regularly scheduled employees shall be compensated at twice their regular hourly rate. For employees working on a day designated as their Sunday in lieu of the calendar Sunday, they shall be compensated at twice their regular hourly rate for work
performed on the day designated as the employee’s Sunday. 
  
 Section 9 Regularly-scheduled maintenance employees who work a twelve (12) hour schedule per day, four (4) days per week will be paid time and one-half (1 1/2) for all hours worked in excess of forty (40) hours in any one week or twelve (12) hours in any one day. 
  
 Section 10, Work over 12 hours in any one day shall be on a voluntary basis except in situations beyond the
Company’s control such as: fire, explosion, power failure, or storm (This list is by way of example and not intended to be inclusive). Hours beyond twelve (12) hours will be offered to the most senior divisional employees first. Less senior
employees may be required to finish the work. 
  
 OVERTIME WORK

  
 Section 1 Overtime work for a department shall be
divided as fairly and equally as possible between the same departments on different shifts. 
  
 Section 2 It is understood and agreed that such equalization cannot be affected on a daily, weekly, or even monthly basis but efforts will be made to change any such imbalance over reasonable periods of time.

  
 SENIORITY 
  
 Section 1 Seniority should operate on both divisional and department
basis. Divisions and departments within the plant are as follows: 
  
 A. Slaughter Division 
  
 1. Slaughter, Offal and Yards 
  
 2.
Coolers and Freezers 
  
 B. Processing Division

  
 1. Production 
  
 2. Material Handling 
  
 3. Loadout 
  
 C. Maintenance Division 
  
 1. Slaughter Maintenance/By-Products 
  
 2. Processing Maintenance 
  
 3. Generation/Refrigeration 
  

 5 

 4. General Maintenance 
  
 5. Material Warehouse 
  
 6. Load Out/Material Handling Maintenance 
  
 D. By-Products 
  
 1. Hides 
  
 2. Rendering 
  
 Section 2 Divisional seniority should be established as the date the employee enters the division. There shall be no transfers of divisional
seniority unless an employee who believes they possess the required skills to enter that division submits a request for transfer to the Personnel Office. 
  
 Upon receipt of such request the employee will be given fair and reasonable consideration for placement within a different division based upon the need of
the request and the required skills of the available job. Requests will be considered on a case by case basis and disposition of the request will be made within twenty-one (21) days of the date the request is filed. The Company will document
requests and actions taken for periodic review by a Union Representative. 
  
 Section 3 Departmental seniority shall be established as the date the employee is deemed qualified after the first successful bid in that department, or the date the employee is permanently assigned a job as a
result of the job being posted with no successful bidder. 
  
 Section 4 All employees shall be classified as probationary employees for the first sixty (60) days of employment. During this period they shall have no seniority and shall be entitled to no benefits except as provided in specific
statements within this contract. Time spent on layoff, leave of absence, absence due to injury or illness shall not count as days of service toward the sixty (60) days. However, the union shall extend this period by thirty (30) days if the Company
requests an extension in writing prior to the completion of the initial sixty (60) days. 
  
 Upon successful completion of the probationary period, the employee shall be classified as a regular full-time employee and shall have seniority access to the grievance procedure and the benefits set forth herein.

  
 At the Company’s sole discretion, the Company may
discipline, or terminate a probationary employee and no grievance shall be filed or processed on that employee’s behalf. Employees successfully completing the probationary period shall become regular full-time employees and shall have seniority
commencing as of the last date of hire. 
  
 Section 5 A
departmental and divisional seniority list shall be maintained on a bulletin board in the plant and shall be republished on a six (6) month basis. 
  
 Section 6 An employee’s seniority and employment shall be forfeited for the following: 
  

	 	1.	 	Voluntary quitting or discharge for proper cause. 

  

	 	2.	 	Being absent for three (3) consecutive days without proper notification to the employer. 

  

	 	3.	 	Failure to return from a layoff within five (5) days after written notice has been sent by certified mail to last known address on Company record that had been provided by employee.

  

	 	4.	 	Absence due to lay-off for more than twelve (12) months. 

  

	 	5.	 	Retirement. 

  

	 	6.	 	Over staying a leave of absence or breaching terms thereof. 

  

 6 

 Section 7 Absences of less than twelve (12) months due to a work/non-work related illness/injury
shall not interrupt an employee’s seniority. 
  
 Section 8
Employees on authorized leave of absence shall retain and accumulate seniority during such leave. 
  
 Section 9 Jobs will be posted for bidding on the following basis: Layoff, discharge, resignation, creation of a permanent job, qualification of a
former job holder or disqualification of a successful job bidder, except, the Company is not required to post a job it does not intend to fill. Employees shall not be able to bid during their first six (6) months of employment. 
  
 Section 10 All job postings shall state the job title, department, and
the rate of pay for that job. If a permanent job vacancy occurs, the job will be posted for a period of three (3) working days and the successful bidder moved to the new job within twenty-one (21) days or paid the rate of said job. 
  
 Job bids will be awarded to the employee with the most divisional seniority
within that department who possesses the ability to perform the job. If there is no eligible departmental bidder, the bid may then go to the most senior eligible divisional bidder from another department. After the first successful bid into a new
department, that bidder’s divisional seniority date shall then govern for future bids within that new department. 
  
 Section 11 Vacancies not filled from within the department will be awarded to the senior divisional bidder. An employee transferring into a new
department will forfeit their former department seniority at the time they qualify on the new job. 
  
 Section 12 In the event an employee is the senior bidder on two or more jobs which have been bid concurrently, the employee will be allowed to
choose the bid they desire. The job (or jobs) not selected under this circumstance shall be awarded to the next senior bidder without the need to re-post. 
  
 Section 13 The successful bidder will be given a reasonable period of time to demonstrate proficiency/qualify. At the time the employee has
qualified for a newly bid job, the employee shall be paid the rate of the job and shall be considered a permanent transfer/qualified. For the purpose of this Article, “reasonable period of time to demonstrate proficiency/qualify,” shall be
left to the sole discretion of the Company. 
  
 Section 14
A successful bidder who disqualifies himself after having been deemed the successful bidder but prior to qualification shall be returned to their former job and frozen from further bidding for a period of twelve (12) months. A successful bidder
who is disqualified by management shall be returned to their former job and not be penalized for such disqualification except the employee will be restricted from bidding on the job from which the employee was disqualified for a period of twelve
(12) months. This section shall apply to all upward bids. 
  
 Section 15 A successful bidder on a lateral or downward bid will be frozen from further bidding for twelve (12) months except in the case of a valid medical reason. A lateral or downward bid shall be an instance in which an employee
successfully bids a job equal to or lower in job grade than the employee’s previous successful bid. This section does not apply to employees in the Maintenance Division. 
  
 Section 16 An employee who bids upward or laterally will be paid the rate of their former job (or base in the case of
an employee who was not on a bid job) until the employee has qualified on the new job. Upon qualification the employee shall receive the rate of pay associated with that job. An employee who has bid to a job with a lower rate of pay shall be paid
the lower rate as soon as said 
  

 7 

 
employee is moved to the new job bid. 
  
 Section 17 When a temporary vacancy exists and will exist for more than one (1) week, the employee in that department with the most divisional
seniority and who is fully qualified to immediately perform the vacant job, may request placement on the vacant job, provided it is operationally practical to honor the request, such employee may fill the temporary vacancy. In the absence of such
requests, if operationally impractical, the Company may place an employee on the vacant job. A job vacated by a requested employee is not subject to seniority requests or bid posting. 
  
 Section 18 The Company reserves the option to disqualify a job holder, once previously qualified, if that individual
can no longer perform the job due to technological changes, production speeds, or other inability to perform the job. Any freeze imposed as a result of that individual bidding such a job will be removed and the employee shall be allowed to bid or
will be subject to assignment by management. 
  
 Section 19
If an employee’s job is deleted because of technological changes, the employee shall not lose their rate of pay for a period of three (3) weeks and the employee will be placed in a position where needed until the employee bids successfully to
another job. If an employee declines or gets disqualified from a job equal to or greater in pay then the employee forfeits their guaranteed rate of pay and gets the applicable rate of pay for the job they are performing, provided, they are qualified
for this job. If a deleted/eliminated job causes the employee’s freeze, the freeze will be dropped. If a job is reinstated, the employee will be allowed to return to the job, provided, this occurs within ninety (90) days from the point at which
the said job was deleted. 
  
 Section 20 In the event a job
is not filled through the bidding procedure, an employee will be assigned to the job which shall be considered as a regular bid job except it shall not be used for the administration of freezes as described in sections within this article. For
clarification purposes, a job that is assigned is a job that had been up for bid and did not have anyone bid this particular job. After an individual is assigned a job, that individual shall hold that job as they would a regular selected job. That
individual once qualified will also begin accumulating seniority for further bidding purposes, will be paid the qualified rate for both work and holidays, have all bidding options open to them, and will not have any freezes imposed upon them.

  
 Section 21 All base jobs shall be excluded from the
bidding process. The Company may at its sole discretion place employees on these jobs who are not job holders as outlined in previous sections under the Seniority Article. 
  
 In the event an employee does not have any bidding freezes imposed as outlined in the Article that employee may submit a
request for transfer to the Personnel Office. Each request will be given consideration based upon seniority, ability to perform the job and physical ability. 
  
 Section 22 The parties recognize and agree that the below listed jobs have been excluded from the bidding process. Additional jobs may be
identified that need to be added or excluded from said list. The Company and Union will mutually agree on those changes. 
  
 Section 23 Employees who are hired on the same date shall have their seniority determined by alphabetical order of the last name of that employee.

  
 Section 24 Subject to all applicable laws, an employee
may notify the company of a change of name or social security number. Subject to legal verification, such name or social security number change shall be made without loss of seniority or benefits. 
  

 8 

 SLAUGHTER 
  

	 PERMANENT

	  	 	    	 TEMPORARY

	  	 
	 Hock Cutter Operator
	  	3010	    	 Knife Room
	  	 
	 First Dehorner
	  	3010	    	 Hang Inedible
	  	 
	 Midline Trim And Stamp
	  	3010	    	 Clean Office and Outside Area
	  	 
	 Hock Blower Operator
	  	3010	    	 Cutting Tail Swithces
	  	 
	 Put On Hide Straps
	  	3010	    	 Wash Tongues and Heads
	  	 
	 Trim Weasands
	  	3010	    	 Bag Bungs
	  	 
	 Flush Heads
	  	3010	    	 	  	 
	 Pull Paunches From Gut Table
	  	3010	    	 	  	 
	 Cut Off Knuckles
	  	3010	    	 	  	 
	 High Wash
	  	3010	    	 	  	 
	 Wash Foreshanks
	  	3010	    	 	  	 
	 Saw Horns
	  	3010	    	 	  	 
	 Pick and Screen Brains
	  	3020	    	 	  	 
	 Save Pituitary Glands
	  	3020	    	 	  	 
	 Put CO2 In Offal Boxes/Trim
	  	3020	    	 	  	 
	 Pituitary Glands
	  	3020	    	 	  	 
	 Cut Large Intestines To Length
	  	3020	    	 	  	 
	 Box And Weigh Large Intestines
	  	3020	    	 	  	 
	 Cut Small Intestines
	  	3020	    	 	  	 
	 Feed Stricker Machines
	  	3020	    	 	  	 
	 Strapper Operator
	  	3020	    	 	  	 
	 Defat Intestines
	  	3020	    	 	  	 
	 Box and Weigh Small Intestines
	  	3020	    	 	  	 
	 Cattle Drive (Kill Floor Ramp)
	  	3010	    	 	  	 
	 Tag Head Carcasses
	  	 	    	 	  	 
		
	FABRICATION	  	 
				
	 PERMANENT

	  	 	    	 TEMPORARY

	  	 
	 CO2 Injection
	  	3140	    	 Pick Flap Meat
	  	3160
	 Clean Floors
	  	3140	    	 Transfer Loin Tails
	  	3170
	 Clean Floors
	  	3160	    	 Navel Flipper
	  	3150
	 Contamination Trimmers
	  	3140	    	 Trolley Line
	  	3170
	 Loin Turner
	  	3169	    	 Maja Feeder
	  	3170
	 Pre ID
	  	3169	    	 Tail Flipper
	  	3170
	 Floor Cleaner
	  	3168	    	 Dispense Co2 in Combo
	  	3173
	 Clean Floor
	  	3170	    	 Shank Belt Picker
	  	3173
	 Hydraulic Knuckle Puller
	  	3172	    	 Combo Plate Bones
	  	3173
	 Clean Floors
	  	3172	    	 Combo Rib Caps
	  	3173
	 Anyl Ray
	  	3173	    	 Combo Fat From Whiz Table
	  	3173
	 Check Trim Belt
	  	3173	    	 Transfer Short Ribs
	  	3176

  

 9 

	 Extruder Trapper Operator
	  	3173	  	Feed Maja Skinner	  	3191
	 Make Boxes
	  	3173	  	Pole Boxes	  	3166
	 Stack Boxes
	  	3173	  	LFTB Dumper	  	3530
	 Check Bone Belt
	  	3173	  	Watch Metal Detector	  	3530
	 Check Fat Belt
	  	3173	  	 	  	 
	 Make Combos
	  	3173	  	 	  	 
	 Box Femur Bones
	  	3173	  	 	  	 
	 Combo Neck Bones
	  	3173	  	 	  	 
	 Lean Pickers
	  	3173	  	 	  	 
	 Feed Baader
	  	3173	  	 	  	 
	 Floor Cleaner
	  	3173	  	 	  	 
	 Watch Metal Detector
	  	3173	  	 	  	 
	 Passout Gloves
	  	3173	  	 	  	 
	 Clean Floors
	  	3174	  	 	  	 
	 Clean Floors
	  	3163	  	 	  	 
	 Clean Floors
	  	3176	  	 	  	 
	 Bone Cleaner
	  	3191	  	 	  	 
	 Bag and Box Meat
	  	3166	  	 	  	 
	 (Except Chucks)
	  	 	  	 	  	 
	 8300’s #2,#5
	  	3166	  	 	  	 
	 Leaker Line
	  	3166	  	 	  	 
	 Load Baggers
	  	3166	  	 	  	 
	 8300 #7, 8, and 9
	  	3171	  	 	  	 
	 Bag and Box Meat
	  	3171	  	 	  	 
	 (Except Full Rounds)
	  	 	  	 	  	 
	 Load Bagger
	  	3171	  	 	  	 
	 Anyl Ray
	  	3530	  	 	  	 
	 Box Chubs
	  	3530	  	 	  	 
	 Labeler
	  	3530	  	 	  	 
	 Combo Dumper
	  	3530	  	 	  	 

  
 MAINTENANCE

  
 TEMPORARY 
  
 Take Refrigeration Readings 
 Clean-up Engine Room 
 Locker Room 
  
 BIDDING PROCESS

  
 Section 1 Employees will start with assigned jobs.
The job the employee is on the date a contract is signed shall be that employee’s job. When the bidding process begins, these jobs will be used as the starting point. 
  
 Section 2 Lead Man, Scalers, Quality Control, and Trainer jobs are not subject to bid but employees who wish to be
considered for such assignments may file written requests for transfer to 
  

 10 

 any of these positions. The Company shall select employees to fill these jobs from among employees having made requests
for transfer. The parties recognize and agree that in compliance with the OSHA Agreement dated December 5, 1991, some of the jobs listed above will be excluded from the bidding process after job evaluation and ergonomic analysis and that some jobs
will become involved in rotation requirements. It is agreed that jobs listed above and which are not modified or exempted from bidding during the term of this agreement shall be subject to the bidding process. 
  
 LAYOFF AND RECALL 
  
 Section 1 When department reductions are necessary, employees with the
least amount of departmental seniority shall be laid off. Employees laid off from a department shall have the right to displace the least senior employee in the division whose seniority is less than the employee exercising displacement rights.

  
 Section 2 A senior employee being laid off who does not
wish to exercise displacement rights may elect to take a layoff but cannot there after exercise displacement rights until recalled in line with seniority to the employee’s department and subsequently laid off. 
  
 Section 3 Upon notification of a layoff the Company shall furnish the
employees who have displacement rights with sufficient information to exercise their choice in order of seniority. The employee must indicate their intent within twenty-four (24) hours of notification of layoff. 
  
 Section 4 Employees shall furnish the Company in writing their address
for the purpose of giving notices required. All notices shall be deemed to be given to employees when mailed to the last address furnished to the Company by the employee. 
  
 Section 5 Employees who exercise displacement rights under this section and are recalled to their original department
in line with seniority but do not wish to return may remain in the department they displaced to and their seniority in that new department shall commence from the day they entered the department. Such employee will lose all seniority in their
previous department but will not lose their accrued plant seniority. 
  
 Section 6 When recalling employees on layoff they shall be recalled in reverse order of layoff. 
  
 Section 7 Employees recalled from layoff will have five (5) working days to return to work after the date the recall notice is sent by certified
mail, return receipt requested, with such notice sent to the last address provided by the employee. Employees failing to report within five (5) working days of the date the letter is sent will be considered as a voluntary quit. 
  
 Section 8 When day to day openings occur during layoffs due to
absences/leave of absence such openings will be filled first in line of seniority of laid off employees present at the plant looking for replacement work provided the qualifications, ability to immediately perform the work, and physical abilities
are equal among employees eligible for consideration. 
  
 Section 9 Absences in excess of twelve (12) months due to any reason shall cause an employee to forfeit employment. However, if unusual circumstances exist, that time limit may be extended at the Company’s sole discretion.

  
 ORIENTATION 
  
 The Company agrees to allow, during new employee orientation, a Union
Business Agent the opportunity to discuss the Union’s role at National Beef, Liberal, Kansas. Such presentations will not exceed thirty (30) minutes. 
  

 11 

 HOLIDAYS 
  

Section 1 Regular full-time employees shall receive without working, pay at their straight time rate in effect at the time of the holiday for
eight (8) hours per day (maintenance employees, scheduled on twelve (12) hour shifts, will receive twelve (12) hours holiday pay) for each of the following holidays provided they have worked their full scheduled work day immediately before and
immediately after such holiday except in case of an excused absence which began not more than seven (7) calendar days before the holiday with the supervisors written permission or in the case of an emergency leave of absence as described under
Funeral Leave or Leaves of Absence Section 9 contained here-in, which began not more than 14 calendar days before the holiday with the supervisor’s written permission. 
  
 Section 2 The holidays observed will be as follows: 
  

	 New Years Day

	 Memorial Day

	 Independence Day

	 Labor Day

	 Veterans Day

	 Thanksgiving Day

	 Christmas Day

	 Christmas Eve Holiday

  
 If a holiday
falls on Sunday, it will be observed the following Monday. 
  
 Section 3 Probationary and part-time employees shall not be eligible for holiday pay. 
  
 Section 4 Holiday pay will not be considered time worked for the purpose of computing weekly overtime. 
  
 Section 5 All hours worked on a holiday will be paid at two (2) timed
the straight time rate for time worked plus holiday pay. 
  
 Section 6 If a holiday falls within an employee’s vacation period that employee will be paid for the holiday in addition to their regular vacation pay once they have worked the full scheduled day preceding and following said
vacation. 
  
 Section 7 Absences for the following reason
will not effect the employee’s eligibility for holiday pay. 
  

	 	1.	 	Death of an immediate family member. This shall include husband, wife, father, mother, sister, brother, grandmother, grandfather, father-in-law, mother-in-law, aunts, uncles,
children, step child or foster child living in the employee’s home in accordance with provisions outlined within this agreement. 

  

	 	2.	 	Jury duty/call in accordance with provisions outlined within this agreement. 

  

	 	3.	 	Duty with National Guard or Reserves in accordance with provisions outlined within this agreement. 

  

	 	4.	 	A tardy or home early the day before and/or the day after a holiday shall not disqualify an employee from receiving holiday pay provided: 

  

	 	A.	 	The tardy is less than three (3) hours. 

  

	 	B.	 	An employee who is sent home sick the day before or the day after a holiday 

  

 12 

	 	 
provided the employee worked at least one-half ( 1/2) the scheduled shift. 

  
 VACATION 
  
 Section
1 Regular full-time employees shall be entitled to vacations with pay, equal to forty hours pay at the employee’s master rate or 1/52nd of the employee’s prior annual earnings as indicated by previously issued W-2, whichever is greater for the employee, at the end of each full and continuous year of employment with the Company as
follows: 
  
 After one (1) year through three
(3) years, one (l) week 
  
 After three (3)
years through ten (10) years, two (2) weeks 
  
 After ten (10) years through twenty years, three (3) weeks 
  
 After twenty (20) years and all consecutive years, four (4) weeks 
  
 Section 2 To qualify for a paid vacation the employee must have passed their anniversary date and have worked at least forty-four(44) weeks during
the preceding anniversary year. For the purpose of this section only, a week in which the employee works at least one (1 ) day will be counted as a week worked. Credit will be given in any one (1) anniversary year for weeks missed because of jury
duty, vacation, a maximum of twenty-six (26) weeks of compensable injury, four (4) weeks of consecutive medical leave, one (1) week of Union leave, and two (2) weeks of leave for employees required to participate in the official activities as a
member of the National Guard or any United States Military Reserve. 
  
 Section 3 A vacation bid sheet shall be prepared by March 30 of each year. Employees shall be given their preference of vacation based on departmental seniority provided the choice is made prior to April 15. After April 15, vacations
will be scheduled on a first come first serve basis and subject to Company approval. 
  
 Section 4 Vacation will not accrue from year to year but must be taken the year following the date it is earned. If the vacation is not scheduled during the year, it will automatically be paid. 
  
 Section 5 Employees who file a timely request (two (2) weeks in
advance) shall receive their vacation pay on a regular pay day immediately preceding the commencement of their vacation. 
  
 Section 6 The Company agrees to give due consideration to the preference of employees in scheduling vacations; however, the Company shall have
final approval and decision in such matters and may limit the number of employees on vacation in any department so as to maintain efficient operations. 
  
 Section 7 Employees who have qualified for a vacation under this article at the time their employment is terminated will be paid for such vacation
earned but not taken. 
  
 Section 8 It is understood by all
parties that any adjusted seniority dates currently being used by the Company will remain in effect for the life of this contract for the purposes of calculating and accrual of vacation benefits. 
  
 Section 9 Upon request, all employees, with the exception of
Maintenance and Load Out personnel, eligible for vacation, shall receive the Saturday prior to their vacation as an unpaid excused in advance absence, provided they have ninety (90) consecutive days of perfect attendance immediately preceding the
start of such vacation. However, those employees who do not meet this criteria and request the Saturday off will be reviewed on an individual basis. 
  

 13 

 MEAL PERIODS—REST PERIODS 
  
 Section 1 Employees shall receive a meal period without pay of at least thirty (30) minutes and not more than one (1)
hour with time and length scheduled by company. This meal period shall be scheduled no earlier than the fourth and one-half (4- 1/2) hour nor later than the fifth and one-half (5- 1/2) hour, unless six (6) hours
completes the work day. 
  
 Section 2
Employees shall be allowed a paid fifteen (15) minute rest period which shall commence anytime during the third hour of work each day. Time shall be determined from and to the work station and scheduled by the company. 
  
 Section 3 If the Company has scheduled more than eight (8) hours work
for the day, an additional paid rest period shall be scheduled by the company after the meal period and before the end of the shift. 
  
 Section 4 If the Company has scheduled more than ten (10) hours work for the day a third (3rd) rest period shall be scheduled by the Company more
than one and one half (1  1/2) hours after the second (2nd) rest period and before the end of the shift.

  
 Section 5 If unscheduled overtime results in
employees working more than eight (8) hours the second (2nd) paid rest period will be set by the Company during the ninth (9th) hour of work and if more than ten (10) hours the third (3rd) paid rest period will be set by the Company during the
eleventh (11th) hour of work. In the event an Employee’s shift goes beyond twelve (12) hours a fifteen (15) minute paid rest period will be set during the thirteenth (13) hour of work. 
  
 Section 6 For the purpose of this Article, a work day which exceeds
the scheduled shift ending time by seven (7) minutes or less shall not be a qualifying factor for rest periods as outlined in the previous sections. 
  
 Section 7 In establishing the second (2nd) or third (3rd) break the Company shall have the option of observing the break or allowing pay in lieu of
such break. 
  
 EQUIPMENT FURNISHED BY THE COMPANY

  
 Section 1, The Company will provide the employees
and the employees will assume the obligation to return or pay for the following items should the Company determine their job requires said items. Steel-toed rubber boots for maintenance employees, steels, pouches, mesh, cotton, cut resistant, or any
other type of gloves, knives, ear protection, maintenance hand tools, and safety equipment required by the Company or government with the exception of proper and reasonable foot wear which shall continue to be the responsibility of the employee
unless other-wise noted. 
  
 Section 2 Employees issued
Company owned equipment shall sign a receipt for such equipment and agree to be responsible for the safe and efficient use of the same and for its custody until returned to the company. Company owned equipment which is not returned to the Company or
is damaged prior to its return will be paid for by the employee. In such cases the Company may deduct the cost of the item from the employee’s wages. 
  
 Section 3 Those employees using tools and equipment furnished by the Company will be paid for the time spent preparing and repairing, provided such
preparation and repair are required by the Company. The Company may at its option assign specific employees to perform such duties. 
  
 Section 4 The Company will provide an employee or employees to sharpen knives for all employees required to use knives. 
  
 Section 5 The Company will issue and provide for the laundering of
cotton gloves and frocks to 
  

 14 

 employees whose job requires such items. These items remain Company property, employees have the same obligation to
properly care for the items and to return or pay for the items and to return or pay for such issued items. Replacement will be provided only upon return of the dirty items. 
  
 Section 6 The Company shall replace, at no cost to the employee, rubber gloves, aprons and plastic sleeves for all
packaging and saw operator, slaughter, hide room, and rendering employees provided the worn out item is exchanged and no evidence exists of deliberate destruction of the item. 
  
 Section 7 The Company shall replace, at no cost to the employee, hairnets, provided the worn out item is exchanged
and no evidence exists of deliberate destruction of the item. 
  
 Section 8 The Company will give all employees the option of payroll deducting insulated boots provided they are ordered through the Company. 
  
 Section 9 The Company will give employees the option of payroll deducting freezer coats provided; the employee works in an area where the Company
feels they would be of benefit and the freezer coat is ordered through the company. 
  
 NO STRIKE—NO LOCKOUT 
  
 Section 1 The Union agrees that neither it nor any of the employees in the bargaining unit covered by this agreement will collectively or individually authorize, cause, ratify, condone, aid or take part in any strike, slow down, work
stoppage, sit down, picketing or in any other interference with work during the term of this agreement. In the event any employee shall engage in any of said activities, the employee shall be subject to immediate discharge. 
  
 Section 2 The Company agrees that it will not lock out any of the
employees covered by this agreement; it being understood that the Company’s exercise of its rights under this agreement shall not constitute a lock out. 
  
 EMPLOYEE MEAT PURCHASE PLAN 
  
 The Company agrees that it shall have an employee meat purchase program. The Company will have the sole discretion of all pricing, standards methods of payment and hours
of operations. These exclusive rights are vested entirely in the Company. 
  
 GRIEVANCE PROCEDURE 
  
 Section 1 In the event a grievance should arise between the Union and the Company or between a regular full-time employee and the Company over a matter alleged to be a violation of a part of this Agreement, the grievance shall be
processed as follows: 
  
 STEP ONE—The aggrieved employee(s)
shall discuss the matter with the employee’s immediate supervisor within two (2) working days of the incident or the matter will be considered closed. If the employee and immediate supervisor are not able to resolve the matter within the two
(2) working days following discussion, the aggrieved employee may then appeal the matter to the next step. 
  
 STEP TWO—If the matter is appealed to the second step, the grievance shall be reduced to writing, signed by the aggrieved employee and presented to
the Departmental Superintendent. All grievances except those regarding a discharge must be filed in writing 
  

 15 

 
at this step within seven (7) calendar days after the date of the commission of the alleged offense. Any grievance involving a discharge must be filed within
five (5) calendar days after the discharge. Any grievance not filed in writing at this step within these time limits will be considered as untimely and waived. Following receipt of the written grievance, the Departmental Superintendent or other
Company representative shall provide a written answer to the grievance within five (5) calendar days. If the matter is not resolved, the Union may appeal the matter to the next step. 
  
 The written grievance shall identify: 
  

	 	a.	 	the general facts giving rise to the grievance 

  

	 	b.	 	the complaint of the grievance 

  

	 	c.	 	and the relief requested. 

  
 STEP THREE—A Union Steward or business agent may appeal the grievance by presenting a copy of the grievance and the Departmental
Superintendent’s written answer to the Divisional Manager within seven (7) calendar days of the date of the Departmental Superintendent’s answer. The Union and Company shall discuss and attempt to resolve the matter. The Company shall
provide the Union with a written answer within seven (7) calendar days after their discussion. If the matter is not resolved, the Union may appeal the matter to the next step. 
  
 PRE ARBITRATION—Within seven (7) days after the date of the Company’s written answer a Staff Representative of the
Local Union may request a meeting with the Vice President, General Manager to see if the grievance can be resolved prior to Arbitration. This meeting will be held at a mutually convenient time and each party may include such additional parties as
they choose. If the matter is not resolved, the Union through a Staff Representative may request Arbitration of the grievance. Such request shall be file in writing within fifteen (15) days after the meeting. 
  
 ARBITRATION—If within ten (10) days after receipt of such written
request, the parties are unable to agree on an arbitrator, either party may request a list of five (5) names from the Federal Mediation and Conciliation Service. The Union shall strike two (2) names from the panel of proposed arbitrators and submit
such two (2) names to the company within ten (10) days after the Union’s receipt of the panel. The Company shall then strike two (2) names and submit the same to the Union within ten (10) days after the Company’s receipt of the names
stricken by the Union. The remaining name on the panel of arbitrators shall act as the arbitrator of the dispute. The arbitrator’s decision in the grievance shall be final and binding on the parties, provided he shall not have authority other
than to apply terms and conditions specifically set forth in this Agreement. The arbitrator shall submit his decision in writing within thirty (30) days after the conclusion of the hearing or date for submission of briefs. The compensation and
necessary expenses of the arbitrator shall be shared equally by the Company and the Union. 
  

 16 

 In the event an employee is reinstated by an arbitrator, the maximum liability of the Company shall be
the employee’s lost National Beef Packing Company earnings reduced by all compensation received by the employee during the discharge period from other employment, unemployment compensation, workers compensation or other earnings. 
  
 Section 2 The presentation of the grievance is to be made on Union
Representatives and employees own time at all steps of the process except that members of the grievance committee shall be paid for work time missed while attending the Step Three (3) meetings and Pre-Arbitration meetings. 
  
 Section 3 The settlement of any grievance from and after Step Two (2)
will be reduced to writing and signed by both parties. Such settlement shall be final and binding on all parties to the matter. 
  
 Section 4 The time for perfecting any step of the grievance procedure may be extended by mutual agreement of the Company and the Union. Extension
agreements shall be in writing and signed by a representative for both the Company and the Union. 
  
 Section 5 A grievance committee of not more than three (3) regular full-time employees shall be designated by the Union from its members. The Union
shall advise the Company in writing of the names of committee members and any changes. This committee shall be permitted time off with pay to attend Step Three (3) meetings and Pre-Arbitration meetings. 
  
 Section 6 At any step in this grievance procedure, the Executive Board
of the Local Union shall have the final authority, in respect to any aggrieved employee covered by this agreement, to decline to process a grievance, complaint, difficulty or dispute further if in the judgment of the Executive Board such grievance
or dispute lacks merit and lacks justification under the terms of this agreement to the satisfaction of the Union Executive Board. 
  
 Section 7 The Company will provide a copy of the Employee Action Record Form, Should discipline be issued, to the effected employee. 
  
 SAVINGS CLAUSE 
  
 It is assumed by the parties hereto that each provision of this contract is
in conformity with all applicable laws of the United States and the State of Kansas. Should it later be determined that it would be in violation of any legally - effective Governmental or State Order or Statute to comply with any provision or
provisions of this Agreement, the parties hereto agree to renegotiate such provision or provisions of this Agreement for the purpose of making them conform to such Governmental or State Order or Statute, and the other provisions of this Agreement
shall not be affected thereby, but shall remain in full force in effect. 
  
 WAIVER 
  
 Section 1 The Company and the
Union, for the term of this agreement, each voluntarily and unqualifiedly waives the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter referred to or covered in this Agreement
or with respect to any subject or matter not referred to or covered in this Agreement, even though such subjects or matters may not have been within the knowledge or contemplation of either or both of the parties at the time that they negotiated or
signed this Agreement. 
  
 Section 2 The parties
acknowledge that during the negotiations which resulted in this Agreement 

  

 17 

 
each have had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter not removed by law from the area of
collective bargaining and that the understanding and agreements arrived at by the parties after and exercise of that right and opportunity are set forth in this Agreement. 
  
 Section 3 This is the complete agreement defining all wages and benefits to which any employee may be entitled and it
is expressly understood and agreed that the Company has no obligation to pay wages or benefits other than those specifically provided herein. 
  
 Section 4 In the event a new job is created during the term of this agreement, the Company shall discuss the applicable rate for the job with the
Union. In the absence of agreement, the Company shall establish a grade and post the job. After the job has operated thirty (30) days and if agreement is not then reached, the Union may grieve the grade so established. 
  
 SUBCONTRACTING 
  
 The parties to this Agreement have discussed subcontracting of work being
performed by bargaining unit employees and agree as follows: 
  
 Both parties desire to minimize the effects of subcontracting on the job security of employees and will work to that end. 
  
 When subcontracting of any existing operations becomes necessary or desirable, in the sole judgment of the Company, the Company will notify the Union. If
the Union desires to discuss the effects on the job security of the employees, the parties will meet for that purpose. The Company agrees to delay any layoffs caused by subcontracting until at least two (2) weeks subsequent to the Company’s
notice to the Union of the Company’s intention, so that the parties have ample time to suggest methods of avoiding the layoffs or minimizing their adverse effects. The Company further agrees not to subcontract an entire department. 

 
 LEAVES OF ABSENCE 
  
 Section 1 The Company may grant leaves of absence to regular full-time
employees. While on a leave of absence, the employee’s seniority shall continue; the time on leave will not be considered as time worked and the Company may grant the leave with continuation of insurance benefits, for thirty (30) calendar days.

  
 Section 2 PERSONAL LEAVE—A leave for personal
reasons may be requested in writing and if approved by the Company, may be granted for up to thirty (30) days and extended for additional terms not to exceed thirty (30) days upon Company approval. 
  
 Section 3 MEDICAL LEAVE—A leave for non-work related medical
reasons may be requested in writing and shall be accompanied by explanation from the employee’s physician. Medical emergencies verified by the Company shall entitle the Company, at its discretion, to place the employee on medical leave. Medical
leaves, if granted, shall be for an initial period of not more than one hundred and eighty (180) days with continuation of insurance during such time and subject to termination sooner upon recovery if such occurs within the initial period. If the
medical condition continues, the leave may be extended by the Company under such conditions, with or without benefits, and upon such medical confirmation as the Company requires, including examination by a physician selected by the Company. Failure
to immediately notify the Company and offer to return to work upon release by the treating physician shall be a breach of the terms of a medical leave and 

  

 18 

 
grounds for discharge. 
  
 Section 4 UNION LEAVE 
  
 A. Not more than two (2) regular full-time employees who become elected or appointed to a full-time position with the Union, and upon written confirmation
from the Union, shall be granted a leave of absence without pay or benefits and with continuing seniority for a term not to exceed the life of this Agreement. Upon one (1) week notice of their desire to return to work they shall be placed on their
job previously held without loss of seniority, provided they report for work within thirty (30) calendar days of the date their full-time position with the Union terminates. 
  
 B. Regular full-time employees chosen by the Union to attend Union business outside the plant, shall with permission of
Company Management, be granted a leave of absence without pay for a period not exceeding thirty (30) days. The Company may limit the number of such employees granted leave to three (3) with no more than two(2) from any single department require
confirmation of the Union business from the Union office and require advance notice of the need for such leave. 
  
 Section 5 MILITARY LEAVE—Regular full-time employees who leave their employment with the Company to enter active military service will retain
all rights to reemployment as are granted by law. Regular full-time employees who are members of the National Guard or United States Military Reserve will be granted leaves or absence to attend required training periods upon providing the Company
with written confirmation of such drills or training periods within two (2) working days of the receipt of any orders or any other written notification that the employee may have received. 
  
 Section 6 JURY LEAVE—A regular full-time employee called to jury
duty in the County, State or Federal Courts shall be granted a leave for jury duty service upon presenting the employee’s immediate supervisor a copy of the summons within two (2) working days of the receipt of the summons. Provided the
employee complies with the advance notice requirement said employee will be paid the amount they would have earned had they not been prevented from working by the jury service, but not to exceed eight (8) hours per day or forty (40) hours per week.
Maintenance employees, scheduled on twelve (12) hour shifts, shall be paid up to twelve (12) hours per day and/or a maximum of thirty-six (36) hours per week. To qualify for such pay, the employee shall pay to the Company the amount received for
jury service, retaining any amounts received as expenses in excess of the daily pay for such jury service. Employees released from jury duty during the employee’ s scheduled working hours or prior to the employee’ s scheduled working hours
shall promptly notify their supervisor who shall either excuse them for the balance of that shift or require them to report for work. 
  
 Section 7 Employees on leave of absence are required to notify the Company promptly if the reason the leave was requested no longer exists. Failure
to do so shall be grounds for immediate termination of the leave or for discharge. 
  
 Section 8 Any employee on any type of leave who commences work for any other person or firm or who commences a self employment venture shall be deemed to have voluntarily quit their employment. 
  
 Section 9—Reasonable time off without pay, length of time to be
determined by the Company, however, such excused absences shall not exceed seven (7) days, will be granted to employees who have personal proceedings with the Immigration and Naturalization Service, provided documentation verifying the days of
release is furnished in advance. 
  

 19 

 FUNERAL LEAVE 
  
 Section 1 Absences due to the death of a member or the regular full-time employee’s immediate family will be
treated as an excused absence. A regular full-time employee so absent will be paid for those days which are scheduled as work days for the employee provided they are on the active payroll. The employee will be paid at their master rate eight(8)
hours pay, except maintenance employees scheduled on twelve (12) hour shifts, will receive twelve (12) hours pay, for each of three consecutive days (one of which must be the day of the funeral) on which the employee would otherwise be scheduled to
work. 
  
 Section 2 The employee must notify the Company of
the purpose of their absence on or before the first day of such absence. 
  
 Section 3 The employee shall be required to furnish proof satisfactory to the Company of the death, the employee’s relationship to the deceased, the date of the funeral and the employee’s actual
attendance at the funeral. 
  
 Section 4 Any funeral pay
shall not be included in the computation of overtime or any other type of premium pay. 
  
 Section 5 Immediate family shall be defined as the employee’s spouse, child, mother, father, sister, brother, grandmother, grandfather, father-in-law or mother-in-law, step child or foster child living in
the employee’s home. 
  
 Section 6—Reasonable
time off, without pay, length of time to be determined by the Company, will be granted to employees who will be traveling to a distant location to attend the funeral of an immediate family member, as defined in Section five (5). 
  
 EROGONOMICS 
  
 Section 1, Ergonomic/Safety Program: 
  

	 	•	 	The Company will assure that significant attention is given to ergonomic/safety issues in the plant. 

  

	 	•	 	The Company recognizes that worker involvement is crucial to the success of any ergonomic/safety program. 

  

	 	•	 	The Company agrees to evaluate new economically feasible technology and process changes for ergonomic risk factors prior to implementation. 

  

	 	•	 	The Ergonomic/Safety Program includes a full-time monitor position, nine (9) ergonomic/safety monitors and a joint labor/management ergonomic/safety committee.

  
 Section 2, Full Time
Ergonomic Monitor: The monitor will be responsible for: 
  

	 	•	 	Discussions with employees on ways to improve their jobs. 

  

	 	•	 	Submit projects to management for consideration. 

  

	 	•	 	Work with management on ergonomic projects. 

  

	 	•	 	Set an agenda and meet monthly with ergonomic monitors to discuss projects in their designated areas and any problems they are having with the program. 

  

	 	•	 	Attend joint labor/management ergonomic/safety committee meetings. 

  

	 	•	 	Document progress on ergonomic projects for the joint labor/management committee and give these to the monitors for their designated areas. 

  

	 	•	 	 Regularly review the list of workers on light or alternate duty jobs, as well as those in the conditioning program and what jobs they are performing, with the
Company Nursing Department. The Nursing Department should work with the full-time ergonomic monitor if 

  

 20 

	 	 
problems arise regarding the job assignments for injured workers. The full-time ergonomic monitor can troubleshoot with these types of problems.

  
 Section 3, Joint Labor/Management
Ergonomic/Safety Committee: Committee members will be responsible for: 
  

	 	•	 	Assuring worker input in the identification and resolution of ergonomic hazards. 

  

	 	•	 	The members of the Ergonomic/Safety Committee will receive two (2) days of training by the Company. A half-day refresher course will be held annually. 

  

	 	•	 	The Committee will meet monthly to review and discuss program progress and related issues. 

  

	 	•	 	The Committee will receive from the Company justification when economically feasible engineering controls were tested and not implemented. 

  

	 	•	 	The Committee will periodically review copies of the OSHA 200 log. 

  
 Section 4, Ergonomic/Safety Committee Monitors 
  

	 	•	 	This committee shall consist of no more than ten (10) bargaining unit employees, all designated by the Union, 1 (one) full-time monitor, two (2) each from Fabrication A-Shift and
B-Shift, one (1) each from Slaughter A-Shift and B-Shift, one (1) from Hides, one (1) from Rendering, and (1) from Maintenance. 

  

	 	•	 	The ergonomic monitors (EM) will have a designated area of responsibility, such that the entire plant will be covered. 

  

	 	•	 	The EM will work with the Company, Safety Department, the joint labor/management Ergonomic Committee and the full-time monitor providing input into the identification of ergonomic
stressors, analysis of those jobs, and the development and evaluation of recommended solutions. 

  

	 	•	 	The EM will conduct a twice-monthly walk-around inspection of a designated area to assist in the identification of problem areas and offer potential solutions.

  

	 	•	 	The EM will be included in all pending ergonomic projects in their areas and they will be provided time to consult with the workers affected to explain any changes and to assist in
gathering employee feedback. 

  

	 	•	 	The EM will be provided with ergonomic hazard report forms to submit suspected problem areas to the Company. 

  

	 	•	 	The Company will post pictures of monitors including the EM’s name and work area on the ergonomic bulletin board in the main hallway. 

  

	 	•	 	The EM will meet monthly with the joint labor/management Ergonomic Committee. 

  

	 	•	 	The EM will be granted a minimum of four (4) hours each month to conduct these activities. 

  
 PENSION FUND 
  
 Section 1, The Employer shall contribute nineteen dollars ($19.00) per month on behalf of each and every eligible employee, provided they meet the
requirements for eligibility each such month. Upon ratification and through year three (3) of the CBA, the monthly contribution amount shall increase $1.00 each anniversary year. During year four of the CBA, the amount shall increase $2.00 upon the
anniversary year. 
  
 Section 2, Eligibility for pension
contributions shall be defined to include any employee who has completed at least 12 months of employment with the Employer, provided that each such employee, for each such month of employment, in order to be eligible, shall have worked or earned a
minimum of eighty (80) hours of straight-time, overtime, holiday and/or vacation for each such month, but 

  

 21 

 
excluding persons on unpaid leaves of absence due to disability or workers compensation injuries. 
  
 Section 3 New employees shall not be eligible to participate in the
Employer’s 401K plan. 
  
 Section 4 The Union agrees
to a “free look rule” (ERISA Sec. 4210) which exempts the Employer from any withdrawal liability for up to six (6) years after executing a Participation Agreement with the UFCW Union Industry Pension Fund. 
  
 HEALTH BENEFITS 
  
 Health Benefits will become effective “upon ratification of this agreement”. This
is a summary of benefits. Details will be included in the contract from the provider. Premiums for employee health insurance upon ratification of this agreement will be at $10.00 per week and will increase an additional $1.00 each anniversary year
of this Agreement.  
  

	 EE/FAM

	 	 EPO

	 	 OUT OF
 NETWORK

	 	 PPO

	 	 OUT OF
 NETWORK

	 Office Visit Co-Pay
	 	$15	 	Ded. + 30%	 	Ded. + 20%	 	Ded. + 40%
	 E R Deductible
	 	$0	 	$50	 	$25	 	$50
	 Deductibles
	 	$100/$300	 	$300/$900	 	$150/$450	 	$300/$900
	 Co-Insurance
	 	90/10	 	70/30	 	80/20	 	60/40
	 Out of Pocket Max
	 	$1,100/$3,300	 	$3,300/$9,900	 	$2150/$6,450	 	$3,300/$9,000
	 Hospital Stay
	 	 $100/Day-4 Day
 Max
	 	Ded. + 30%	 	Ded. + 20%	 	Ded. + 40%
	 Lifetime Maximum
	 	$1,000,000	 	 	 	 	 	 
	 Eligibility
	 	180 Days	 	 	 	 	 	 
					
	 DENTAL PLAN:
	 	 	 	 	 	 	 	 
	 Deductible
 Type A (Cleanings)
 Type B (Fillings)
 Type C (Bridges)
	 	 $50/$100
 100% After Ded.
 80% After Ded.
 50% After Ded.
	 	 	 	 	 	 
	 Maximum
	 	$750/$1,500	 	 	 	 	 	 
					
	 VISION PLAN:
	 	 	 	 	 	 	 	 
	 Deductible
	 	0	 	 	 	 	 	 
	 Frames
	 	$14.00	 	 	 	 	 	 
	 Single Vision Lens
	 	$10.00	 	 	 	 	 	 
	 Bifocal Lens
	 	$15.00	 	 	 	 	 	 
	 Trifocal Lens
	 	$17.50	 	 	 	 	 	 
	 Aphakle of Lenticular
	 	$17.50	 	 	 	 	 	 
	1 Eye exam per year per subscriber	 	$17.00	 	 	 	 	 	 

  

	                     PCS Card:        
	  	 Formulary or Generic Prescriptions at $12.50

	 	  	Name Brand Prescriptions at $17.50

  
 All regular, full-time employees will
become eligible for $5,000 in life insurance, at no cost to 
  

 22 

 
the employee, on the first (1st) of the month following said employee’s first (1st) 365 days of continuous service.

  
 DISABILITY INSURANCE 
  
 Section 1 Disability insurance will be provided for all bargaining
unit employees. Weekly benefits will be paid if an employee is deemed eligible for such benefits. The determination of eligibility will be vested exclusively in the Company. 
  
 Section 2 
  

	 	A.	 	Effective through 12/23/02, the weekly benefit amount will be $200.00. The calendar year maximum will be $2,000.00. On 12/23/02 eligible employees will receive a weekly benefit
amount of $210.00 with a calendar year maximum of $2,100.00 to remain in effect for the duration of the agreement. 

  
 Section 3 
  

	 	A.	 	To be eligible during an illness the employee must be off work with a physician’s verification for a period of not less than eight (8) consecutive days.

  

	 	B.	 	To be eligible during an injury the employee may qualify on the first (1st) day provided the employee can provide a physicians statement showing that the time off required for the injury will exceed eight (8) consecutive days. 

  

	 	C.	 	Eligibility—A new employee will become eligible for disability insurance on the first (1st) of the month following said employees first (1st) 365 days of
continuous employment. 

  
 WAGES 

 
 Section 1 The wage schedule for employees covered by this Agreement
shall be as follows: 
  
 A. Slaughter Division and By Products
Division 
  

	Grade

	 	Upon
Ratification

	 	12/18/00

	 	12/17/01

	 	12/23/02

	 Base
	 	9.50	 	9.70	 	9.95	 	10.25
	 1
	 	9.60	 	9.80	 	10.05	 	10.35
	 2
	 	9.70	 	9.90	 	10.15	 	10.45
	 3
	 	9.80	 	10.00	 	10.25	 	10.55
	 4
	 	9.90	 	10.10	 	10.35	 	10.65
	 5
	 	10.05	 	10.25	 	10.50	 	10.80
	 6
	 	10.45	 	10.65	 	10.90	 	11.20
	 7
	 	10.70	 	10.90	 	11.15	 	11.45
	 8
	 	10.90	 	11.10	 	11.35	 	11.65

  
 B. Processing Division

  

 23 

	 Base
	 	9.20	 	9.40	 	9.65	 	9.95
	 1
	 	9.30	 	9.50	 	9.75	 	10.05
	 2
	 	9.40	 	9.60	 	9.85	 	10.15
	 3
	 	9.50	 	9.70	 	9.95	 	10.25
	 4
	 	9.70	 	9.90	 	10.15	 	10.45
	 5
	 	9.75	 	9.95	 	10.20	 	10.50
	 6
	 	10.15	 	10.35	 	10.60	 	10.90
	 7
	 	10.40	 	10.60	 	10.85	 	11.15
	 8
	 	10.70	 	10.90	 	11.15	 	11.45

  
 C.
Maintenance Division 
  

	 Base
	 	9.50	 	9.70	 	9.95	 	10.25
	 1
	 	9.55	 	9.75	 	10.00	 	10.30
	 2
	 	9.80	 	10.00	 	10.25	 	10.55
	 3
	 	10.05	 	10.25	 	10.50	 	10.80
	 4
	 	10.45	 	10.65	 	10.90	 	11.20
	 5
	 	11.30	 	11.50	 	11.75	 	12.05
	 6
	 	11.85	 	12.05	 	12.30	 	12.60
	 7
	 	12.20	 	12.40	 	12.65	 	12.95
	 8
	 	13.00	 	13.20	 	13.45	 	13.75

  
 D. The starting rate for new employees
shall be $0.50 below the base. Upon qualification on the job, the employee will be paid the full qualified rate of the job. 
  
 Section 2 All Employees who work between the hours of 6:00 P.M. and 6:00 A.M. will be paid twenty cents ($0.20) per hour over their regular rate
except no premium will be paid on the day shift kill if the kill starts less than forty-five (45) minutes prior to 6:00 A.M. 
  
 Section 3 Any employee who does not receive an increase during any year of this Agreement due to the fact their original rate of pay prior to this
Agreement was higher than wage grades/rates agreed to by both the Company and the Union, for the term of this Agreement will not have their wages reduced provided that the employee stays on the same job through the term of this Agreement.

  
 BASE RATE 
  

	 Slaughter
	  	 Fabrication

	 Tub, Cheek, Lips Hdmt
	  	 Clean Floor

	 Split Heads/Remove Brain
	  	 Extruder Operator

	 Remove Brain/Pick Brain
	  	 Check Trim & Fat Belts

	 Save Pit Gland
	  	 Make Combos

	 Pack Salivary Glands & Tendon
	  	 Pull Paddle Bones

	 Hang Paunch
	  	 Make Trim Boxes

	 Ethicon Machine
	  	 Supply Room

	 Measure String
	  	 Sealer

  

 24 

	 Ethicon Counts & Pack
	  	 Unhook Chucks

	 Flush Intestine
	  	 Knife/Glove Room

	 Split Intestine
	  	 Box Chubs

	 Pack Intestines
	  	 Bag Meat

	 Squeegee
	  	 Hang Off Chucks

	 Save Fetal Blood
	  	 Label Boxes

	 Condemned Room
	  	 Rework Leakers

	 Pack Tripe
	  	 Anal Ray

	 Pack Inedible
	  	 Meat Puller

	 Drive Cattle (ramp)
	  	 Knuckle Puller

	 Remove Hind Leg
	  	 Remove Front Feet

	 1st Hang off
	  	 Box Liner and Label Inv.

	 2nd Hang off
	  	 
	 Dehorn
	  	 
	 Strap Hides
	  	 
	 Tag Carcasses & Heads
	  	 Offal Pack Room

	 Clean up Man (Hides)
	  	 
	 Hock Blower
	  	 Offal Packers

	 Remove Knuckles
	  	 
	 Flush Heads
	  	 
	 Cut Cardio Artery
	  	 
	 Palpate Tongues
	  	 
	 FPS
	  	 
	 Remove Tail & Tendon
	  	 
	 Remove Tunic Tissue
	  	 Maintenance

	 Tag Hot Weight
	  	 
	 Run Fetal Blood/Freezer Man
	  	 All Maint. New & Rehires

	 Watch Runaways
	  	 
	 Cold Chain Feeder
	  	 
		
	 Quality Assurance
	  	 
	 Chill Box (Hotbox Spacers)
	  	 
	 Trim Sweetbread
	  	 
	 All New & Rehires
	  	 
		
	 By-Products
	  	 
	 Fat Separator (Chopped Beef)
	  	 

  
 GRADE 1

  

	 Slaughter
	  	 Fabrication

	 Trim Glands
	  	 Box Machine Operator

	 Pull & Separate Lg Intestine
	  	 Hang Rounds

	 Scissor Intestine
	  	 Clean Bones

  

 25 

	 Rail Off/Rail Sacker
	 	 Box Mean/Except Chucks & Rounds

	 Ear Tag Remover
	 	 Pull Chux Short Rib

	 Hide Puller Helpers
	 	 Employee Meat Orders

	 Head Trim
	 	 Cap Meat

	 Incise Cheeks
	 	 Hanging Tenders

	 Heart Inciser
	 	 Hang off Fores

	 Trim Lung & Remove Heart
	 	 Feed Chain/Pull Tag

	 Save Fat
	 	 Trim Flank Steaks

	 Pull Paunches
	 	 Trim Clods

	 Save Pancreas
	 	 Trim Chuck Tenders

	 Tie Gut Sets
	 	 Cut off Brisket/Hanging Tenders

	 Save Inedible. Heart, Lung, Liver
	 	 Reject Line

	 Neck Trim
	 	 Trim Inside & Outside Skirts

	 Remove Spinal Cord
	 	 Unhook Ribs/Navel

	 Tail Wash & Trim
	 	 Re-trim

	 High Trimmers
	 	 Trim Necks

	 Laundry
	 	 Stack Trim

	 Line Palletizers
	 	 Trim & Load Fat Cattle

	 Cattle Driver (Yards)
	 	 Trim Shank Meat

	 Remove Kidney
	 	 Cut off Clods

	 Rail Off & Roll Angus
	 	 Case Scaler

	 USDA Roller Man
	 	 Triangles

	 Midline Trim
	 	 Drop Flank

	 Cut Hyoid Bone
	 	 Whizzard Operator

	 Forklift Operator
	 	 Rose Meat

	 Remove Sweetbreads
	 	 Trim and Pack Kidney

	 Cut and Hang Honeycomb
	 	 Flap Meat

	 Cut Intestines to Length
	 	 Trim Rib/Short Rib

	 Trim Weasand
	 	 Trim Forequarters

	 Trim Paunch
	 	 Cut off Paddle Bone

	 Trim Sweetbreads
	 	 Box Loader

	 	 	 Box Stacker

	 	 	 High Stand Trimmer

	 By Products
	 	 
	 Green Hide Trimmer
	 	 
	 Chopped Beef Boxer
	 	 
	 Hide Droppers/Trimmers
	 	 
	 Strapper Operator
	 	 
		
	 Maintenance
	 	 
	 Electrician
	 	 
	 Refrigeration
	 	 
	 Power Plant
	 	 

  

 26 

	 Generation
	  	 
	 P/S (Scale)
	  	 Maintenance

	 Warehouse
	  	 Welder

	 Corrugated Waste
	  	 Machinist

	 Pallet Repair
	  	 Kill Mechanic

	 Rendering
	  	 Material Transfer

	 Fabrication
	  	 Draftsman

	 Construction
	  	 Forklift Mechanic

	 Shop Mechanic
	  	 

  
 GRADE 2

  

	 Slaughter
	  	 Fabrication

	 Whizzard Knife
	  	 Loin Wings

	 Trim Tongue
	  	 Trim Briskets

	 Remove Peck
	  	 Trim Strips

	 Open Paunch
	  	 Trip Top Butts

	 Round Runner
	  	 Trim Button Butts Ball/Tri

	 Unload & Wash Pens
	  	 Trim Insides

	 Computer Rail Off
	  	 Trim Goose Necks

	 Pull Fat
	  	 Trim Knuckles

	 Strip Weasand
	  	 Box Chucks/Rounds

	 Trim Liver/Hearts
	  	 Trim Eyes & Flats

	 Loadout
	  	 Separate Briskets from Chux

	 Shackler
	  	 Line Box Picker

	 Knocker
	  	 Remove Brisket Bone

	 Pre-Gut
	  	 Trim Brisket

	 Remove Interior Pizzel/High Trim
	  	 Seam out Bottom Butt/Split Butt

	 Remove Tendon
	  	 Pull Flank

	 	  	 Panel Operator

	 By Products
	  	 Back Strapper

	 Tank puller
	  	 Computer

	 Head Trimmer
	  	 K-Pac

	 Forklift op. (Hides)
	  	 8300

		
	 Maintenance
	  	 
	 Electrician
	  	 
	 Refrigeration
	  	 
	 Power Plant
	  	 
	 Generation
	  	 
	 P/S (scales)
	  	 
	 Warehouse
	  	 
	 Rendering
	  	 

  

 27 

	 Fabrication

	 Construction

	 Forklift Mechanic

	 Welder

	 Machinist

	 Kill Mechanic

	 Shop Mechanic

  
 GRADE 3

  

	 Slaughter
	  	 Fabrication

	 Scald Tripe
	  	 Brisket Boner

	 Mgt. Scale Computer Input-Cooler
	  	 Seam Rounds

	 Saw Brisket
	  	 Packaging Utility Person

	 Cut off Heads
	  	 Packaging Analyst

	 Drop Tongues
	  	 Pull 13th Bone

	 Hot Scaler
	  	 Panel Operator/Ground Beef

	 Clear Gullets
	  	 Trim Navels

	 Manifester
	  	 Trim Tenders

	 Bung Dropper
	  	 Bone Shoulders

	 Chisel Heads
	  	 Bone Shanks

	 Rod Weasand
	  	 
	 Sticker
	  	 
	 Hang Heads
	  	 Maintenance

	 	  	 Shop Mechanic

	 	  	 Electrician

	 	  	 Refrigeration

	 	  	 Power Plant

	 	  	 Generation

	 	  	 P/S (Scales)

	 By Products
	  	 Rendering

	 Basement Op
	  	 Fabrication

	 Skim Tank/Feed Grade Op
	  	 Construction

	 Grader/Folder
	  	 Forklift Mechanic

	 Stacker
	  	 Welder

	 Green Hide Graders
	  	 Machinist

	 Dryer Operator
	  	 Kill Mechanic

  
 GRADE 4

  

 28 

	 Slaughter
	 	 Fabrication

	 Lead Man—Tripe
	 	 Bone Strips

	 Saw/Rib Man
	 	 Box Manifester

	 Lead Man—Ethicon
	 	 Drop Knuckles

	 Lead Man—Intestine Room
	 	 Drop Rounds

	 Freezer Man/Forklift Op
	 	 Bone Navels

	 Mark Pattern/Open Front Shank
	 	 
	 Pull Inside Skirts
	 	 Maintenance

	 Remove Pizzle/Open midline
	 	 
	 Trim Rail
	 	 Shop Mechanic

	 Clear Necks
	 	 Electrician

	 Templer
	 	 Refrigeration

	 Outside Rails
	 	 Power Plant

	 	 	 Generation

	 	 	 P/S (Scales)

	 	 	 Machinist

	 	 	 Kill Machinist

	 	 	 Rendering

	 By Product
	 	 Fabrication

	 Blood System/Hammer Mill
	 	 Construction

	 Forklift Op/Load Meat
	 	 Forklift Mechanic

	 Cooker Op
	 	 Welder

		
	 Quality Assurance
	 	 
	 QC Scaler
	 	 

  
 GRADE 5

  

	 Slaughter
	 	 Fabrication

	 Cheek
	 	 Aitch Boner

	 Rumper
	 	 
	 Flankers
	 	 
	 Lead Man—Freezer Loadouts
	 	 Maintenance

	 Rim Over Brisket
	 	 Shop Mechanic

	 Hide Puller Skinner
	 	 Electrician

	 Lead Man—Cooler/transfer chain
	 	 Refrigeration

	 Hide Puller Op
	 	 Machinist

	 1st Leg
	 	 Kill Mechanic

	 2nd Leg
	 	 Power Plant

	 	 	 Generation

	 By Products
	 	 P/S (Scales)

	 Flume/Flesher
	 	 Rendering

	 Lead Man-Hide Take-Up
	 	 Fabrication

  

 29 

	 Rend. Op (Edible Rend. tallow Op)
	 	 Forklift Mechanic

	 Tissue/chopped beef Op
	 	 Welder

  
 GRADE 6

  

	 Slaughter
	 	 
	 Knife Grinder
	 	 
	 (Air Knife/Straight Knife)
	 	 Fabrication

	 1st Butter
	 	 Hind Quarter Saw

	 2nd Butter
	 	 Chux Saw

	 	 	 Rib & Navel Saw

	 Maintenance
	 	 Shell Saw

	 Refrigeration
	 	 Rib Saw

	 Electrician
	 	 Strip Saw

	 Shop Mechanic
	 	 Knife Forequarters

	 Kill Mechanic
	 	 Well Saws/Hydraulic Saw

	 Power Plant
	 	 Red Hat (+$0.15)

	 Generation
	 	 
	 P/S (Scales)
	 	 
	 Rendering
	 	 
	 Fabrication
	 	 Quality Assurance

	 Forklift Mechanic
	 	 QC Lineman

	 Welder
	 	 
	 Machinist
	 	 
		
	 By Products
	 	 
	 Lead Man—Flesher
	 	 
	 Lead Man—Gel Bone
	 	 

  
 GRADE 7

  

	 Slaughter
	 	 Fabrication

	 Gutter
	 	 Mark Paddle Bones

	 Saw Man
	 	 Bone Butts

	 Lead Man—Offal Floor
	 	 Drop Hinds

		
	 By Products
	 	 
	 Lead Man—West Rendering
	 	 

  
 GRADE 8

  

 30 

	 Slaughter
	 	 Fabrication

	 Lead Man - Kill Floor
	 	Trainers
	 	 	Pull Tenderloins
	 	 	Chuck Boners
	 	 	Pull Clods
	 	 	Bone Ribs

  
 MISCELLANEOUS

  
 BULLETIN BOARDS 
  
 The Company will provide for the Union’s exclusive use a bulletin board in the main
hallway and a bulletin board in the walk-in entrance of Security for the Union to post its notices. 
  
 EDUCATION, SAFETY AND CULTURAL FUND 
  
 Section 1 The Employer agrees to contribute, the following amounts per year to the UFCW District Local Two Education, Safety and Cultural Fund:

  
 Section 2 The Employer hereby agrees to be bound by
the terms of the Trust Agreement which governs the operation of the Fund and hereby agrees to accept the Employer Trustees of the Fund who have been selected as provided therein, as its representatives in the joint administration of the Fund.

  
 Section 3 The foregoing contributions shall be utilized
by the trustees of the Education, Safety and Cultural Fund for the operation of an Education, Safety and Cultural program pursuant to such terms and conditions and rules and regulations which the Trustees may hereafter adopt. Said Fund shall have
its principal office in the City of                      and shall be administered by a board of Trustees consisting of an equal number
of Union and Employer Trustees selected in accordance with the Declaration of Trust. 
  
 Section 4 The Employer hereby acknowledges the provisions of the Trust Agreement dealing with the authority of the Trustees to compel and enforce payment of contributions required. 
  
 Section 5 The rules of eligibility for coverage, waiting periods for
coverage and the benefits to be provided to employees and/or their dependents shall be as provided in the plan of benefits of the fund. The provisions contained in this Article regarding the dates for the payment of contributions to the Fund shall
not bear upon the date when coverage commences. 
  
 MEMORANDUMS
OF UNDERSTANDING 
  
 I. Layoff & Recall, Section 9

  
 Any employee who was placed on a leave of absence prior to the
ratification of the 1999 Collective Bargaining Agreement will remain under the negotiated agreement of the previous Collective Bargaining Agreement in regard to Layoff and Recall, Section 9. These employees will not forfeit employment unless they
exceed a leave of absence period of eighteen (18) months. 
  
 II. Contract Printing/Translation 
  
 The parties agree that the
contract and insurance summary of benefits will be printed in English, 
  

 31 

 Spanish and Vietnamese. The Union will translate the above, into Vietnamese, at their sole expense. The Company will
print the above at their sole expense. 
  
 The parties recognize that the
translations are being done for the convenience of the bargaining unit employees. The Company and Union have agreed, however, that the English version will rule in all matters. 
  
 DURATION OF TERMINATION 
  
 This Agreement shall become effective and remain in full force and effect from the 20th Day of December, 1999 until midnight on the 21st day of December, 2003. Either party may, on or before sixty (60) days prior to December 21, 2003, give notice to the other party of the desire of the
party giving such notice to terminate the Agreement. If such notice is not given, the Agreement shall renew itself for successful one year period until such notice is given. 
  
 For the Company 
  

	 /s/    George Hall—Human Resource Director

	 	 /s/    Steve James—Vice President, General Manager

		
	 /s/    Sheila Burke—Asst Human Resource Director

	 	 

  
 For the Union

  

	 /s/    Tom B. Price—President, UFCW District Local 2

	 	 /s/    Nicholas Romero—Business Agent, UFCW District Local 2

		
	 /s/    Martin Rosas—Business Agent, UFCW District Local 2

	 	 /s/    Mylinda Howell—Hourly Production Worker

		
	 /s/    Libby Garcia—Business Agent, UFCW District Local 2

	 	 /s/    Thach Cao—Hourly Production Worker

		
	 /s/    Dorothy J. Parker—Hourly Production Worker

	 	 /s/    Efrain P. Brito Gonzalez—Hourly Production Worker

		
	 /s/    Salvador Regaldo—Hourly Production Worker

	 	 /s/    Gilberto Rojas—Hourly Production Worker

		
	 /s/    Leroy Earnest—Hourly Production Worker

	 	 /s/    Sonia E. Hernandez—Hourly Production Worker

		
	 /s/    Van Dewey Rucker—Hourly Production Worker

	 	 

  

 32Lease Agreement dated January 16, 2002

 Exhibit 10.20 
  
 LEASE AGREEMENT 
  
 Between 
  
 JOINT DEVELOPMENT AUTHORITY OF BROOKS, COLQUITT, 
 GRADY, MITCHELL, AND THOMAS
COUNTIES 
  
 (a public body corporate and politic) 

 
 as Lessor 
  
 and 
  
 FARMLAND NATIONAL BEEF COMPANY 
  
 (a limited partnership organized and existing 
 under the laws of the State of Delaware) 
  
 as Lessee

  
 Dated as of January 16, 2001 
  
 THE PARTIES INTEND FOR THE RIGHTS AND INTEREST OF JOINT DEVELOPMENT AUTHORITY OF BROOKS,
COLQUITT, GRADY, MITCHELL, AND THOMAS COUNTIES IN THE PROJECT LEASED HEREUNDER. THIS LEASE AGREEMENT AND CERTAIN REVENUES AND RECEIPTS DERIVED HEREUNDER, EXCEPT FOR CERTAIN UNASSIGNED RIGHTS, AS DEFINED HEREIN, TO BE RESPECTIVELY CONVEYED, ASSIGNED
AND PLEDGED TO MOULTRIE-COLQUITT COUNTY DEVELOPMENT AUTHORITY AS SECURITY FOR AMOUNTS OF UP TO $2,700,000 PROVIDED TO THE JOINT DEVELOPMENT AUTHORITY OF BROOKS, COLQUITT, GRADY, MITCHELL, AND THOMAS COUNTIES BY MOULTRIE-COLQUITT COUNTY DEVELOPMENT
AUTHORITY AS PROVIDED IN ONE OR MORE INSTRUMENTS ENTITLED “DEED TO SECURE DEBT, ASSIGNMENT OF RENTS AND LEASES AND SECURITY AGREEMENT FROM THE JOINT DEVELOPMENT AUTHORITY OF BROOKS, COLQUITT, GRADY, MITCHELL, AND THOMAS COUNTIES, AS GRANTOR, TO
MOULTRIE-COLQUITT COUNTY DEVELOPMENT AUTHORITY, AS GRANTEE, WHICH ARE TO BE ASSIGNED BY TO MOULTRIE-COLQUITT COUNTY DEVELOPMENT AUTHORITY AMERICAN BANKING COMPANY, AS ASSIGNEE TO SECURE ITS INDEBTEDNESS TO AMERICAN BANKING COMPANY. 
  

 TABLE OF CONTENTS 
  
 (This-Table of Contents is not a part of the Lease 
 Agreement and is only for convenience of reference.) 
  

	 	  	 	  	Page

	 ARTICLE I
	  	 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	4
	 Section 1.1.
	  	Definitions	  	4
	 Section 1.2.
	  	Construction Of Certain	  	11
	 Section 1.3.
	  	Table of Contents; Titles and Headings	  	12
			
	 ARTICLE II
	  	 REPRESENTATIONS AND UNDERTAKINGS
	  	13
	 Section 2.1.
	  	Representations by the Authority	  	13
	 Section 2.2.
	  	Representations by the Company	  	14
			
	 ARTICLE III
	  	 LEASING CLAUSE; SECURITY; TITLE
	  	17
	 Section 3.1.
	  	Lease of the Project	  	17
	 Section 3.2.
	  	Security for Payments Under the Bond	  	17
	 Section 3.3.
	  	Warranties and Covenants of Authority as to Title	  	17
	 Section 3.4.
	  	Warranties and Covenants of Company as to Title	  	17
			
	 ARTICLE IV
	  	 CONSTRUCTION OF THE LEASED IMPROVEMENTS; ISSUANCE OF THE BONDS; FUNDS
	  	19
	 Section 4.1.
	  	Agreement to Construct the Project	  	19
	 Section 4.2.
	  	Funding of Qualified Project Costs	  	19
	 Section 4.3.
	  	Use of Amounts in the Construction Fund	  	19
	 Section 4.4.
	  	Disbursements from the Construction Fund.	  	19
	 Section 4.5.
	  	Obligation of the Parties to Cooperate in Furnishing Documents; Reliance of the Custodian	  	23
	 Section 4.6.
	  	Establishment of Completion Date	  	23
	 Section 4.7.
	  	Company Required to Pay the Company's Project Costs	  	24
	 Section 4.8.
	  	Authorized Company and Authority Representatives and Successors	  	24
	 Section 4.9.
	  	Enforcement of Remedies Against Contractors, Subcontractors, Suppliers, Fabricators and Their Sureties	  	24
			
	 ARTICLE V
	  	 EFFECTIVE DATE OF THIS LEASE; DURATION OF LEASE TERM; RENTAL PROVISIONS; NATURE OF OBLIGATIONS OF COMPANY
	  	25
	 Section 5.1.
	  	Effective Date of this Lease: Duration of Lease Term	  	25
	 Section 5.2.
	  	Delivery and Acceptance of Possession; Quiet Enjoyment	  	25
	 Section 5.3.
	  	Rents and Other Amounts Payable.	  	25
	 Section 5.4.
	  	Place of Rental Payments	  	26
	 Section 5.5.
	  	Nature of Obligations of Company Hereunder.	  	26

  

 i 

	 	  	 	  	Page

	 ARTICLE VI
	  	 MAINTENANCE, TAXES, INSURANCE AND EMINENT DOMAIN
	  	28
	 Section 6.1.
	  	Maintenance of Project	  	28
	 Section 6.2.
	  	Removal of Building Fixtures	  	28
	 Section 6.3.
	  	Taxes, Other Governmental Charges, and Utility Charges	  	29
	 Section 6.4.
	  	Insurance Required.	  	30
	 Section 6.5.
	  	Application of Net Proceeds of Insurance	  	31
	 Section 6.6.
	  	Advances by the Authority or the Holder	  	31
	 Section 6.7.
	  	Eminent Domain	  	32
			
	 ARTICLE VII
	  	 DAMAGE, DESTRUCTION, AND CONDEMNATION
	  	33
	 Section 7.1.
	  	Repair, Restoration or Replacement	  	33
			
	 ARTICLE VIII
	  	 ADDITIONAL COVENANTS; ADDITIONAL BONDS
	  	34
	 Section 8.1.
	  	No Warranty of Condition or Suitability by the Authority	  	34
	 Section 8.2.
	  	Access to Project and Records	  	34
	 Section 8.3.
	  	Company to Maintain its Existence and Qualification; Conditions Under Which Exceptions Permitted	  	34
	 Section 8.4.
	  	Operation of the Project	  	34
	 Section 8.5.
	  	Indemnity.	  	35
	 Section 8.6.
	  	Licenses and Permits	  	36
	 Section 8.7.
	  	Compliance with Laws	  	36
	 Section 8.8.
	  	Granting of Easements	  	37
			
	 ARTICLE IX
	  	 ASSIGNMENT, SUBLEASING, ENCUMBERING, AND SELLING; REDEMPTION; RENT PREPAYMENTS AND ABATEMENT; INSTALLATION OF COMPANY'S OWN MACHINERY AND
EQUIPMENT
	  	38
	 Section 9.1.
	  	Assignment and Subleasing	  	38
	 Section 9.2.
	  	Restrictions on Sale, Encumbrance, or Conveyance of the Project by the Authority	  	39
	 Section 9.3.
	  	Restrictions on Encumbrance by the Company	  	39
	 Section 9.4.
	  	Redemption of Bond	  	39
	 Section 9.5.
	  	Prepayment of Basic Rent	  	39
	 Section 9.6.
	  	Reserved.	  	40
	 Section 9.7.
	  	Installation of Company's Own Machinery and Equipment	  	40
	 Section 9.8.
	  	Reference to the Bond Ineffective After such Bond is Paid	  	40
			
	 ARTICLE X
	  	 EVENTS OF DEFAULT AND REMEDIES
	  	41
	 Section 10.1.
	  	Events of Default Defined	  	41
	 Section 10.2.
	  	Remedies on Default	  	41
	 Section 10.3.
	  	Remedies Not Exclusive	  	42
	 Section 10.4.
	  	Company to Pay Fees and Expenses	  	42
	 Section 10.5.
	  	Waiver of Events of Default	  	43

  

 ii 

	 	  	 	  	Page

	 ARTICLE XI
	  	PURCHASE OPTION IN FAVOR OF COMPANY	  	44
	 Section 11.1.
	  	Option to Purchase Project	  	44
	 Section 11.2.
	  	Conveyance on Exercise of Option to Purchase	  	44
	 Section 11.3.
	  	Public Purpose of Option to Purchase	  	44
	 Section 11.4.
	  	Priority Position of Option	  	45
			
	 ARTICLE XII
	  	 MISCELLANEOUS
	  	46
	 Section 12.1.
	  	Supplemental Payments for Failure to Meet Employment Goals	  	46
	 Section 12.2.
	  	Notices	  	47
	 Section 12.3.
	  	Recording	  	48
	 Section 12.4.
	  	Construction and Binding Effect	  	48
	 Section 12.5.
	  	Severability	  	48
	 Section 12.6.
	  	Immunity of Members, Officers, and Employees of Authority	  	48
	 Section 12.7.
	  	Amendments, Changes, and Modifications	  	48
	 Section 12.8.
	  	Execution of Counterparts	  	49
	 Section 12.9.
	  	Law Governing Construction of this Lease	  	49
	 Section 12.10.
	  	Covenants Run with Project	  	49
	 Section 12.11.
	  	Subordination to Security Deed	  	49
	 Section 12.12.
	  	Net Lease	  	49
	 Section 12.13.
	  	Surrender of Project	  	49
	 Section 12.14.
	  	Immunity of Directors, Officers, and Employees of Company	  	49
	 Section 12.15.
	  	Payments Due on Other than Business Days	  	50
	 Section 12.16.
	  	Holders are Third Party Beneficiaries	  	50
	 Section 12.17.
	  	Failure to Acquire Land and Building	  	50
		
	SIGNATURES AND SEALS	  	51
		
	EXHIBIT A—DESCRIPTION OF THE LEASED LAND	  	54
		
	EXHIBIT B—DESCRIPTION OF LEASED IMPROVEMENTS	  	55

  
  

 iii 

  
 LEASE AGREEMENT

  
 STATE OF GEORGIA          )

                                        
         ) 
 COLQUITT COUNTY          ) 
  
 This LEASE AGREEMENT (this “Lease”), dated as of January 16,
2001, by and between the JOINT DEVELOPMENT AUTHORITY OF BROOKS, COLQUITT, GRADY, MITCHELL, AND THOMAS COUNTIES (the “Authority”), a public body corporate and politic and public corporation created and existing under the laws of the
State of Georgia, party of the first part, and FARMLAND NATIONAL BEEF COMPANY (the “Company”), a limited partnership organized and existing under the laws of the State of Delaware, party of the second part; 
  
 WITNESSETH: 
  
 WHEREAS, the Authority is a joint development authority created
pursuant to O.C.G.A. § 36-62-5.1 by concurrent resolutions of the governing bodies of Brooks, Colquitt and Thomas Counties and thereafter expanded by concurrent resolutions of the governing bodies of Brooks, Colquitt, Grady, Mitchell and Thomas
Counties; and 
  
 WHEREAS, the Authority is authorized to
acquire land, buildings and equipment (“projects”) located in Brooks, Colquitt, Grady, Mitchell and Thomas Counties for lease to private sector entities for use as industrial facilities and to finance such projects; and 
  
 WHEREAS, Moultrie-Colquitt County Development Authority (the
“Issuer”) is a development authority that was created by local amendment to the Georgia constitution, Ga. L. 1960, p. 1402, ratified by electors in 1960 and proclaimed, as amended by local amendment to the Georgia constitution, Ga. L. 1964
Ex. Sess., p. 403, ratified by electors in 1964 and proclaimed, as further amended by as amended by local amendment to the Georgia constitution, Ga. L. 1976, p. 1773, ratified by electors in 1976 and proclaimed, and was continued by Ga. L. 1985, p.
4745; and 
  
 WHEREAS, the Issuer is authorized to acquire
land, buildings and equipment (“projects”) located in Colquitt County for lease to private sector entities for use as industrial facilities and to finance such projects; and 
  
 WHEREAS, the Authority and the Issuer each are authorized pursuant to Article IX, Section III, Paragraph I (a) of the
Constitution of the State of Georgia of 1983, to enter into intergovernmental contracts for any period not exceeding fifty years with any public corporation or public authority (including with each other) for the joint or separate provision of
facilities or equipment, if such contract deals with or facilities which the contracting parties are authorized by law to undertake or provide and thus are authorized to enter into this Intergovernmental Contract for the provision of the Colquitt
County Facilities (identified below); and 
  

 1 

 WHEREAS, the Authority and the Issuer propose to enter into an intergovernmental contract (the
“Note Contact”) under which (i) the Authority shall acquire existing and vacant industrial facilities located in Thomas County (the “Thomas County Facilities”) and other existing and vacant industrial facilities located in
Colquitt County (the “Colquitt County Facilities,” which, together with the Thomas County Facilities are collectively called the “Facilities”), (ii) the Issuer proposes to assist the Purchaser in acquiring the Colquitt County
Facilities for use by industrial users that will provide employment opportunities in Colquitt County, by issuing its promissory note (the “Note”) to pay costs relating to the acquisition and financing of the acquisition of the Colquitt
County Facilities and (iii) the Authority shall make payments to the Issuer or to the holder of the Note, as assignee, in the amount and at the times required to pay debt service on the Note; and 
  
 WHEREAS, the Authority proposes to enter into a second
intergovernmental contract (the “Bond Contract”) with the Issuer under which (i) the Authority shall use certain grant proceeds and other funds, including certain funds to be provided by the Company, to renovate the industrial building
that is a part of the Colquitt County Facilities (being the “Project” herein identified), (ii) the Issuer proposes to assist the Authority in providing the Project for use by the Company hereunder, by issuing its industrial development
revenue bond (the “Bond”) to pay a portion of the Qualified Project Costs (as defined herein) of such and (iii) the Authority shall make payments to the Issuer or to the holder of the Bond as assignee, in the amount and at the times
required to pay debt service on the Bond; and 
  
 WHEREAS,
in consideration of such financial assistance, the Authority proposes, by the Note Security Deed (hereafter defined) to pledge to the Issuer, until the Note has been fully paid, both the Colquitt County Facilities and the Thomas County Facilities
and the revenues therefrom, including any grants received by the Authority from the State and local governments relating to the Facilities, any rents received from the Facilities, and any proceeds collected with respect to the Project (the
“Collateral”), which Collateral is then to be assigned and pledged by the Issuer to the initial holder of the Note as security for the Note; and 
  
 WHEREAS, after careful study and investigation of the nature of the Colquitt County Facilities, the Authority has determined that (i) the Colquitt
County constitutes a “project” that the Authority and the Issuer may provide and finance; (ii) the Colquitt County Facilities will promote the objectives of developing and promoting industry and employment opportunities for the public good
and the general welfare of Colquitt County and of the State of Georgia, and (iii) the issuance of the Issuer’s Note to finance costs relating to the acquisition by the Authority of the Colquitt County Facilities and the issuance of the Bond and
the use by the Authority of other funds to pay the costs of renovating the Project will be in the interest of the residents of the Colquitt County and will serve the public purposes for which the Authority and the Issuer were created and are
existing; and 
  
 WHEREAS, the Project consists of a part
of the Colquitt County Facilities and includes a parcel of land in the City of Moultrie, Colquitt County, Georgia (being the “Leased Land,” as hereafter defined), an approximately 90,000 square foot existing building together with related
improvements and building fixtures and any equipment acquired with the building (being the “Existing Improvements, which, together with renovations thereto are herein called the “Leased Improvements”); and (ii) the Company desires
that the Authority pay the certain of the Qualified 
  

 2 

 Project Costs (as herein defined) relating to the renovation of the Existing Improvements and the financing thereof and
that the Authority lease the Project to the Company pursuant hereto to be used by the Company as a plant for the processing of meat; and 
  
 WHEREAS, the Company has represented that, commencing in the calendar year 2003 and thereafter, the operation of the Project will provide at least
120 full-time jobs in Colquitt County (the “County”); and 
  
 WHEREAS, the Project Budget (as hereinafter defined) estimates that the Qualified Project Costs (hereinafter defined) to be $6,500,000 which is to be paid with proceeds of the Bond (hereinafter defined), certain grant proceeds, other
funds of the Authority and $1,500,000 of funds provided by the Company, the foregoing funds being herein called “Qualified Funds” (hereinafter defined); and 
  
 WHEREAS, the Authority and the Company intend to enter into the Construction Management Agreement (hereinafter
defined) under which the Company is to manage the renovation of the Existing Improvements; and 
  
 WHEREAS, it is desirable (i) for the Issuer to sell and issue its the Note to acquire the Colquitt County Facilities and to issue the Bond to finance certain of the Qualified Project Costs and (ii) for the
Authority to use the Qualified Funds to pay or reimburse Qualified Project Costs and to lease the Project to the Company under this Lease for use as a plant for the processing of meat, under which the Company will pay Basic Rent payments which are
to be pledged to pay debt service on the Note and on the Bond; and 
  
 NOW, THEREFORE, in consideration of the respective representations and agreements hereinafter contained, the parties hereto agree as follows. 
  
 [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] 
  

 3 

 ARTICLE I 
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
  
 Section 1.1. Definitions. Certain capitalized words and terms used in this Lease are defined in the text hereof or in the Bond Resolution (defined below) or Construction Management Agreement (defined
below). In addition to the words and terms defined elsewhere herein and in the Bond Resolution, the following words and terms are defined terms under this Lease: 
  
 “Act” means O.C.G.A. Section 36-62-1, et seq. 
  
 “Additional Rent” means the amounts payable by the Company,
described in Section 5.3(b) of this Lease. 
  
 “Additions
or Alterations” means modifications, improvements, alterations, additions, enlargements, or expansions in, on or to the Project. 
  
 “Advance” means an amount paid by the Custodian of the Construction Fund to or for the account of the Company, as Construction Manager,
to be applied against Qualified Project Costs pursuant to the submission by the Company, as Construction Manager, of an Advance Request under the Construction Management Agreement. 
  
 “Advance Request” means a written submission by the Construction Manager to the Custodian of the
Construction Fund requesting an Advance, which submission shall be in such form, and shall be accompanied by such supporting documentation, as Authority may reasonably prescribe from time to time. 
  
 “Affiliate” means a Person which is controlled by the
Company or its corporate successor, which controls the Company or its successor or which is under common control with the Company or its successor (direct or indirect ownership of more than fifty percent (50%) of the voting power constituting
“control” of a Person for such purpose). 
  
 “Architect” means any architect or architectural firm selected by the Authority and Company to prepare the Plans and Specifications, if any. 
  
 “Authority” means the Joint Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas
Counties. 
  
 “Authority Documents” means this
Lease and other documents to be executed by the Authority, as contemplated by this Lease. 
  
 “Authority’s Project Costs” shall have the meaning provided in Section 4.4(a)(3), below. 
  
 “Authorized Company Representative” means any person at the time designated to act on behalf of the Company by written certificate
furnished to the Authority and the Custodian, containing the specimen signature of such person and signed on behalf of the Company by an 

  

 4 

 
official of the Company; more than one person may be designated as an Authorized Company Representative. 
  
 “Authorized Authority Representative” means any person at
the time designated to act on behalf of the Authority by written certificate furnished to the Company and the Custodian, containing the specimen signature of such person and signed on behalf of the Authority by the Chairman, or other officer of the
Authority; more than one person may be designated as an Authorized Authority Representative. 
  
 “Basic Rent” means the rent payable by the Company pursuant to Section 5.3(a) of this Lease. 
  
 “Bond” means industrial development revenue bond to be issued by the Issuer to finance a portion of the Qualified Project Costs.

  
 “Bond Contact” means the intergovernmental
contract between the Authority and the Issuer under which the Issuer is to agree to issue the Bond. 
  
 “Bond Purchase Loan Agreement” means the Bond Purchase Loan Agreement, between the Issuer and the Purchaser of the Bond, in substantially
the form to be attached to the Bond Resolution, as it may thereafter be amended in accordance with the Bond Resolution. 
  
 “Bond Resolution” means the resolution, to be adopted by the Issuer, as it may thereafter be amended in accordance with the provisions of
the Bond Resolution, providing the terms and provisions under which the Bond will be issued. 
  
 “Bond Security Deed” means the deed to secure debt, assignment of leases and rents and security agreement from the Authority to the Issuer securing the Authority’s obligations under the Bond
Contract. 
  
 “Business Day” means a day which is
not a Saturday, Sunday, a legal holiday, or any other day on which banking institutions are authorized to be closed in the State. 
  
 “Company” means Farmland National Beef Company, a limited partnership organized under the laws of the State of Delaware, and any
successor lessee under this Lease. 
  
 “Company
Documents” means this Lease and the Construction Management Agreement. 
  
 “Company’s Project Costs” includes (i) $1,500,000 to be deposited by the Company in the Construction Fund, (ii) costs incurred by the Company relating to the Project that are not Qualified
Project Costs, (iii) any Qualified Project Costs that constitute Qualified Project Costs attributable to the Company’s fault or negligence that exceed the $6,500,000 Project Budget. 
  
 “Completion Date” means the first date on which the renovation of the Existing Improvements have been
substantially completed, as that date shall be certified as provided in Section 4.6 hereof. 
  

 5 

 “Contractor” means, the Company, as Construction Manager, or a contractor subsequently
selected by the Company and the Authority pursuant to this Lease or the Construction Management Agreement for the construction of the renovations to the Existing Improvements. 
  
 “Construction Manager” means the Company, acting as Construction Manager under the Construction Management
Agreement. 
  
 “Construction Contract” means the
contract or contracts for the construction of the renovations to the Existing Improvements, entered into, or to be entered into, between the Contractor and the Authority, or between the Contractor and the Company, in which case the Company’s
interest thereunder shall be assigned to the Authority as provided in this Lease or in the Construction Management Agreement (which assignment shall be accompanied by a release of the Company from liability thereunder). In either case, the
Construction Contract shall be subject to the Authority’s approval in writing. 
  
 “Construction Documents” means (i) the Construction Contracts and related change orders, each of which is subject to approval in writing by the Authority and the Company, and which, when so approved,
shall be assigned (which assignment shall be accompanied by a release of the Company from liability thereunder) to the Authority as provided in this Lease or in the Construction Management Agreement, (ii) the Design Contract and (iii) the Plans and
Specifications. 
  
 “Construction Fund” means a
fund to be administered by the Authority from which Qualified Project Costs are to be paid. 
  
 “Construction Management Agreement” means that certain contract to be of even date herewith between the Authority as owner and the Company as manager providing for the Company to act as construction
manager for the benefit of Authority for the design, engineering, identification, acquisition, construction, installation, testing and placement into service of the Project in accordance with the Construction Documents and the Plans and
Specifications and pursuant to this Lease. 
  
 “Construction Management Event of Default” means the events under the Construction Management Agreement that are specified therein to be Events of Default. 
  
 “Construction Period” means the period between the beginning of the construction of the renovations to the
Leased Improvements and ending upon final completion of the renovations to the Leased Improvements. 
  
 “County” means Colquitt County, Georgia. 
  
 “Custodian” means the Authority, or its designee, acting as Custodian of the Construction Fund or as Custodian of the Project Restoration
Fund, as applicable. 
  
 “Debt Service” and
“debt service” means, as to the Bond, the principal of, interest on and redemption price of such Bond. 
  

 6 

 “Default Interest Rate” means when used with respect to interest on delinquent payments
of Additional Rent, 10% per annum and when used with respect to the Basic Rent applicable to the Bond, the Default Rate provided for in such Bond. 
  
 “Design Contract” means the contract for architectural services entered into, or to be entered into, between the Architect and the
Contractor, or between the Architect and the Company, in which case the Company’s interest thereunder shall be assigned to the Contractor as provided in this Lease or the Construction Management Agreement (which assignment shall be accompanied
by a release of the Company from liability thereunder). In either case, the Design Contract shall be subject to the Authority’s and the Company’s written approval. 
  
 “EDGE grant” means a grant from the EDGE Fund of the One Georgia Authority, which has been applied for in
the amount of $1,500,000. 
  
 “Environmental
Laws” means all federal, state, and local laws, rules, regulations, ordinances, programs, permits, guidance, orders, and consent decrees relating to health, safety, and environmental matters, including, but not limited to, the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended, the Toxic Substances Control Act, as amended, the Clean Water Act, as amended, the Clean Air Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as
amended, state and federal superlien and environmental cleanup programs and laws, and U.S. Department of Transportation regulations. 
  
 “Event of Default” means, when used with respect to this Lease, the events specified in Section 10.1 of this Lease. 
  
 “Financing Documents” means the Exhibits to the Bond
Resolution. The final versions of such documents shall be consistent with this Lease. 
  
 “Governing Body” means, as to the Authority, the members of the Authority acting as its board of directors. 
  
 “Government Obligations” means direct general obligations of the United States of America (including obligations issued or held in
book-entry form on the books of the Department of Treasury of the United States of America) or obligations the payment of the principal of and interest on which when due are fully and unconditionally guaranteed by the United States of America.

  
 “Holder” means, as to the Bond, the Person in
whose name the Bond is registered on the registration books of the Issuer, and, as to the Note means the Person in whose name the Note is registered on the registration books of the Issuer. 
  
 “Intergovernmental Contacts” means the Note Contract and the
Bond Contract. 
  
 “Lease” means this Lease
Agreement, as the same may be amended from time to time. 
  

 7 

 “Leased Improvements” means the Existing Improvements and the renovations to be
constructed on the Leased Land, generally described in EXHIBIT B attached hereto, and all Additions, Alterations, replacements and substitutions for any items of Leased Improvements. 
  
 “Leased Land” means the land described in EXHIBIT A
attached hereto. 
  
 “Maturity Date” means, as to
the Bond, the first day of the month which is 120 months after the issue date of the Bond. 
  
 “Net Proceeds” means, when used with respect to any proceeds of casualty insurance received with respect to any damage or destruction of the Project or any eminent domain award (or proceeds of sale in
lieu of a taking by eminent domain) or with respect to any other recovery on a contractual claim or claim for damage to or for taking of the Project, or any part thereof, the gross proceeds from such insurance, eminent domain award, sale or recovery
with respect to which that term is used remaining after payment of all costs and expenses (including attorneys’ fees and reimbursable expenses) incurred in the collection of such gross proceeds. 
  
 “Note” means the industrial development revenue note to be
issued by the Issuer to finance a cost of acquisition of the Colquitt County Facilities. 
  
 “Note Contact” means the intergovernmental contract between the Authority and the Issuer under which the Issuer shall agree to issue the Note. 
  
 “Note Security Deed” means the deed to secure debt,
assignment of leases and rents and security agreement from the Authority to the Issuer securing the Authority’s obligations under the Note Contract. 
  
 “Permitted Encumbrances” means: (i) all encumbrances on the Project on the date of delivery of this Lease, (ii) this Lease, (iii) all
encumbrances on the Project on the date the Authority acquires title to the Colquitt County Facilities, including any restrictive covenants applicable to the Leased Land (including any restrictions in the deed or deeds conveying the Colquitt County
Facilities to the Authority), (iv) the Note Security Deed, (v) the Bond Security Deed, and (v) mechanics’ and materialmen’s liens arising after the commencement of construction of the Project from the renovation of the Existing
Improvements or the repair, replacement or renovations of the Leased Improvements, or any part thereof, provided that any such mechanics’ and materialmen’s liens shall be discharged by the Company, acting as Construction Manager, prior to
any foreclosure thereof. 
  
 “Permitted
Successor” mean any corporation, partnership, or limited liability company into which the Company may merge, any corporation, partnership, or limited liability company resulting from a consolidation to which the Company is a party or any
corporation, partnership, or limited liability company to which the Company transfers substantially all of its assets and then, and also includes any Successor (as above defined, but substituting “Successor” for “Company”) of a
Successor, provided that in each case such Permitted Successor shall be a Permitted Entity or the Authority shall have consented to the assignment hereof or subleasing of the Project to such successor entity. 
  

 8 

 “Person” means a natural person, a public body and any form of business organization or
other legal entity. 
  
 “Plans and
Specifications” means the detailed plans and specifications, if any, for the renovation of the Existing Improvements, as shall be approved in writing by the Authority and the Company, and any amendments thereto approved from time to time by
the Authority and the Company, copies of which are or will be on file with, or held by the Custodian and Company for inspection by the Holder. 
  
 “Pledged Security” means and includes, among other things, (a) the Project, (b) the rights of the Authority in and under this Lease
(except for the Unassigned Rights), (c) the Basic Rent, (d) the Net Proceeds of casualty insurance received on account of damage to or destruction of the Project or any part thereof, (e) the Net Proceeds received on account of a taking of the
Project, or any portion thereof, under power of eminent domain and the Net Proceeds of any sale of the Project, or any portion thereof, (f) any amounts in the Construction Fund and in the Project Restoration Fund (subject to the rights of the
Authority and the Company to apply amounts in such funds as provided in the Financing Documents), (g) the Authority’s rights under and interest in the Construction Documents, and (h) the proceeds of the foregoing, all as to be more particularly
described in the Security Deed. 
  
 “Principal
Balance” means, as to the Bond as of any particular time: (i) the total amount drawn down by the Authority under the Bond Purchase Loan Agreement, reduced by (ii) any principal amounts thereof which have theretofore been paid. 

 
 “Principal Payment Date” means, as to the Bond, the date
on which any principal thereof is due. 
  
 “Project”
means the Leased Land and the Leased Improvements. 
  
 “Project Budget” means the budget of the Qualified Project Costs to be incurred for the renovation of the Leased Improvements that is to established by the Authority and the Company prior to the commencement of
construction, in such detail as shall be agreed upon by the parties, provided that the aggregate amount of Qualified Project Costs shall amount to no more than $6,500,000. 
  
 “Project Costs” means: 
  
 (a) the cost of the preparation of Plans and Specifications and any changes thereto, costs of negotiating
the terms of the Construction Documents and any changes and change orders thereto, costs of any preliminary studies and environmental surveys, and any cost related to the planning of the Project or any aspect thereof; 
  
 (b) the cost of renovation of the Existing Improvements and
all costs incidental thereto, payment for labor, services, materials, and supplies used or furnished in the construction of the Leased Improvements, including the cost of equipment that are to be installed as building fixtures and payment for the
miscellaneous expenses incidental to any of the foregoing items including, but not limited to, construction supervision; 
  

 9 

 (c) such extent as they shall not be paid by a contractor involved in the construction of
any part of the renovation to the Existing Improvements, the premiums on all insurance required to be taken out and maintained during the Construction Period, as appropriate; 
  
 (d) taxes, assessments, and other charges, if any, referred to in Section 6.3 hereof that may become payable
during the Construction Period; 
  
 (e) payment
of expenses incurred in seeking to enforce any remedy against any supplier, fabricator, contractor or subcontractor in respect of any default under a contract relating to the Leased Improvements; 
  
 (f) payment of the fees or out-of-pocket expenses of the
Authority relating to the Project and the financing thereof, including, but not limited to issuance costs, permits fees, surveys, costs of recording and filing documents, utility connection charges and other out-of-pocket expenses, if any, of those
providing services with respect to the Project; 
  
 (g) payment of any other costs and expenses relating to the Project permitted to be paid by the Authority under the Act; and 
  
 (h) payment to the Company or to its Affiliates of such amounts, if any, as shall be necessary to reimburse the Company or its Affiliates
in full for all advances and payments made by it for any of the items set forth in (a) through (g) above. 
  
 “Project Restoration Fund” means the “Joint Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas Counties Taxable
Industrial Development Revenue Bond (Farmland National Beef Company Project)—Project Restoration Fund” that may be established as provided in the Bond Resolution. 
  
 “Purchaser” means American Banking Company, located in Moultrie, Georgia. 
  
 “Qualified Funds” means up to $6,500,000 to be derived from:
(i) $2,700,000 of proceeds of the Bond, (ii) $1,500,000 of proceeds of the EDGE grant, (iii) $500,000 of proceeds of a commitment from the Moultrie Development Authority, (iv) $300,000 of proceeds of the REBA grant, and (v) $1,500,000 to be provided
by the Company. 
  
 “Qualified Project Costs”
means those Project Costs that are included in the Project Budget. In addition, the Authority and the Company, by mutual agreement, shall have the right, but not the obligation, in their sole discretion, to classify any amounts otherwise
constituting Company’s Project Costs, or Authority’s Project Costs, as Qualified Project Costs, to the extent of any available Qualified Funds deemed by the Authority to be excess to anticipated needs. 
  
 “Redemption Date” or “redemption date”
means, as to the Bond, any date on which such Bond is to be prepaid and redeemed, in whole or in part, as established by the notice of redemption relating thereto. 
  

 10 

 “REBA grant” means a Rural Economic Business Assistance Program grant from the Georgia
Department of Industry, Trade and Tourism in the amount of $300,000. 
  
 “Rent Commencement Date” means the earlier of the first day of the month following the issuance of the Bond or April 1, 2001. 
  
 “Security Deeds” means the Note Security Deed and the Bond Security Deed. 
  
 “State” means the State of Georgia. 
  
 ‘Term” means the Term of this Lease, as provided for in Section 5.1 hereof. 
  
 “Unassigned Rights” means all of the rights of the Authority
(i) to receive reimbursements and payments pursuant to Sections 5.3(b)(i), 6.6, 10.4 and 12.1 hereof, (ii) to receive notices under or pursuant to any provision of this Lease or the Bond Resolution (iii) certain consensual and enforcement rights
pursuant to Sections 6.3, 6.4, 8.7 and 10.2 (as provided therein) hereof and (iv) to be indemnified as provided in Section 8.5 of this Lease. 
  
 Section 1.2. Construction Of Certain. For all purposes of this Lease, except as otherwise expressly provided or unless the context otherwise requires, the
following rules of construction shall apply: 
  

	 	(1)	 	the use of the masculine, feminine, or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine, or neuter
gender, as appropriate; 

  

	 	(2)	 	“this Lease” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more leases supplemental to this Lease and
entered into pursuant to the applicable provisions hereof; 

  

	 	(3)	 	all references in this instrument to designated “Articles,” “Sections,” and other subdivisions are to the designated articles, sections, and other subdivisions
of this instrument; 

  

	 	(4)	 	the words “herein, “hereof,” and “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular article, section, or
other subdivision; 

  

	 	(5)	 	the terms defined in this Article shall have the meanings assigned to them in this Article and include the plural as well as the singular; and 

  

	 	(6)	 	all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles as promulgated by the American
Institute of Certified Public Accountants, on and as of the date of this Lease. 

  

 11 

 Section 1.3. Table of Contents; Titles and Headings. The table of contents, the titles of
the articles, and the headings of the sections of this Lease are solely for convenience of reference, are not a part of this Lease, and shall not be deemed to affect the meaning, construction, or effect of any of its provisions. 
  
 [End of Article I] 
  

 12 

 ARTICLE II 
 REPRESENTATIONS AND UNDERTAKINGS 
  
 Section 2.1. Representations by the Authority. The Authority makes the following representations and warranties as the basis for the undertakings on its part herein contained: 
  
 (a) Creation and Authority. The Authority is a public body
corporate and politic and a corporation duly created and validly existing under the Act. The Authority has all requisite power and authority under the Act: (i) to enter into the Intergovernmental Contacts, (ii) to own the Project and to lease the
same to the Company, and (iii) to enter into, perform its obligations under, and exercise its rights under the Authority Documents. The Authority has found that the Project is a “project” within the meaning of the Act will promote the
public purposes set forth in the Act. 
  
 (b)
Pending Litigation. There are no actions, suits, proceedings, inquiries, or investigations pending or, to the knowledge of the Authority, after making due inquiry with respect thereto, threatened against or affecting the Authority in any court or by
or before any governmental authority or arbitration board or tribunal, which involve the possibility of materially and adversely affecting the transactions contemplated by the Authority Documents or which, in any way, would adversely affect the
validity or enforceability of the Authority Documents, nor is the Authority aware of any facts or circumstances presently existing which would form the basis for any such actions, suits, proceedings, inquiries, or investigations. 
  
 (c) Transactions Shall be Legal and Authorized. The
execution and delivery by the Authority of the Authority Documents and the compliance by the Authority with all of the provisions of each thereof (i) shall be within the purposes, powers, and authority of the Authority, (ii) shall be done in full
compliance with the provisions of the Act and shall have been approved by the Governing Body of the Authority, and (iii) shall be duly executed, shall be legal and valid. 
  
 (d) Governmental Consents. Neither the nature of the Authority nor any of its activities or properties, nor
any relationship between the Authority and any other Person, nor any circumstance in connection with the offer, issue, sale, or delivery of the Bond is such as to require the consent, approval, permission, order, license, or authorization of, or the
filing, registration, or qualification with, any governmental authority on the part of the Authority in connection with the execution, delivery, and performance of this Lease. 
  
 (e) No Defaults. To the knowledge of the Authority, after making due inquiry with respect thereto, no event
has occurred and no condition exists which would constitute a breach of this Lease by the Authority Documents or which, with the lapse of time or with the giving of notice or both, would become a breach of this Lease. To the knowledge of the
Authority, after making due inquiry with respect thereto, the Authority is not in default or violation in any material respect under the Act or under any charter instrument, bylaw, or other agreement or instrument to which it is a party or by which
it may be bound. 
  

 13 

 (f) No Prior Pledge. The Project shall not be mortgaged, pledged, or hypothecated by the
Authority in any manner or for any purpose or subject to any security interest by other than as shall be provided in the Security Deeds. 
  
 (g) Representations Relating to the Leased Land and Existing Improvements. Nothing has come to the attention of the Authority which would
materially and adversely affect or in the future may (so far as the Authority can now reasonably foresee) materially and adversely affect the construction of the renovations to the Leased Improvements by the Company, as Construction Manager, which
has not been set forth in writing to the Company prior to the date of execution of this Lease. The zoning of the Leased Land permits the Leased Land and Existing Improvements to be used as a meat processing facility and the Leased Land and Existing
Improvements comply with all county and city laws and codes (it being understood that the Company, as Construction Manager, shall be responsible for compliance with all county and city laws and codes pertaining to the renovation work at the
Project). All utilities required for the operation of the Project as a meat processing facility are available at the Project. The Authority covenants and agrees that all utilities and related facilities, permits, authorizations and licenses for the
use and operation of the Project, including water, gas, electricity, storm water drainage and sewage and wastewater disposal are, and will continue to be made, available to the Project throughout the term of this Lease and any extensions thereof,
subject to Acts of God. With respect to delivery of wastewater to the City of Moultrie for treatment, such delivery shall be on terms and conditions reasonably acceptable to the Company. In the event that any of the foregoing are discontinued,
cancelled, revoked or are no longer available, or contain terms reasonably unacceptable to the Company, the Company shall have the right to cancel this Lease upon prior written notice to the Authority. Such cancellation shall be without prejudice to
any other accrued rights and claims of the Company under this Lease. The Leased Land and Existing Improvements are not subject to any other leases. No proceedings for the taking of any portion of the Leased Land or Existing Improvements by eminent
domain have been served on the Authority, and, to the best of the Authority’s knowledge, no such proceedings have been file or are threatened. 
  
 (h) The Authority has provided to the Company a Phase I Environmental Survey of the Project site, which shows that all underground storage
tanks and related contaminated soil has been removed. That Phase I Environmental Survey’s coverage of asbestos was limited. If the Company’s inspection of the Existing Facilities discloses the presence of any asbestos that violates EPA or
OSHA standards, or other federal, state or local environmental laws, then the Authority at its cost will either remove the asbestos or at its election otherwise conduct remediation to bring such condition into compliance with all such standards and
laws. The Company may, at its own expense, purchase errors and omissions insurance coverage relating to the Phase I Environmental Survey. 
  
 Section 2.2. Representations by the Company. The Company makes the following representations and warranties as the basis for the
undertakings on its part herein contained: 
  
 (a) Organization and Power. The Company is a limited partnership duly organized, validly existing, and in good standing under and by virtue of the laws of the 
  

 14 

 State of Delaware and has all requisite power and authority to lease the Project from the Authority and
to enter into, perform its obligations under, and exercise its rights under the Company Documents. The foregoing notwithstanding, for purposes of this representation and warranty, references to the Company Documents shall include only this Lease
until such time as the Authority has adopted the Bond Resolution and obtained validation of the Bond. 
  
 (b) Pending Litigation. There are no actions, suits, proceedings, inquiries, or investigations pending or, to the knowledge of the
Company, after making due inquiry with respect thereto, threatened against or affecting the Company in any court or by or before any governmental authority or arbitration board or tribunal, which in the opinion of the Company involve the possibility
of materially and adversely affecting the ability of the Company to perform its obligations under the Company Documents or the transactions contemplated by the Company Documents or which, in any way, in the opinion of the Company would adversely
affect the validity or enforceability of the Company Documents or any agreement or instrument to which the Company is a party and which is used or contemplated for use in the consummation of the transactions contemplated hereby or thereby, nor is
the Company aware of any facts or circumstances presently existing which would form the basis for any such actions, suits, proceedings, inquiries, or investigations. The foregoing notwithstanding, for purposes of this representation and warranty,
references to the Company Documents shall include only this Lease until such time as the Authority has adopted the Bond Resolution and obtained Validation of the Bond. 
  
 (c) Agreements Are Legal and Authorized. The Company Documents, the consummation of the transactions therein
contemplated, and the fulfillment of or the compliance with all of the provisions thereof (i) are within the power, legal right, and authority of the Company, (ii) have been duly authorized by all necessary and appropriate corporate action on the
part of the Company, (iii) have been duly executed and delivered on the part of the Company, (iv) are legal and valid as to the Company, and (v) will not conflict with or constitute on the part of the Company a violation of or a breach of or a
default under any charter instrument, bylaw, indenture, mortgage, deed to secure debt, pledge, note, lease, loan, or installment sale agreement, contract, or other agreement or instrument to which the Company is a party or by which the Company or
its properties are otherwise subject or bound which would have a material adverse impact on the Company’s ability to perform its obligations hereunder, or any license, law, statute, rule, regulation, judgment, order, writ, injunction, decree,
or demand of any court or governmental agency or body having jurisdiction over the Company or any of its activities or properties. The foregoing notwithstanding, for purposes of this representation and warranty, references to the Company Documents
shall include only this Lease until such time as the Authority has adopted the Bond Resolution and obtained validation of the Bond. 
  
 (d) Governmental Consents. No circumstances in connection with the execution, delivery, and performance by the Company of its obligations
under the Company Documents or the Company’s participation in the offer, issue, sale, or delivery by the Authority of the Bond are such as to require the Company to obtain the consent, 
  

 15 

 approval, permission, order, license, or authorization of, or the filing, registration, or qualification
with, any governmental authority on the part of the Company in connection with the Company’s execution, delivery, and performance of the Company Documents, the consummation of any transaction herein contemplated, or the offer, issue, sale, or
delivery of the Bond, except as shall have been obtained or made and as are in full force and effect and except as are not presently obtainable. To the knowledge of the Company, after making due inquiry with respect thereto, the Company will be able
to obtain all such additional consents, approvals, permissions, orders, licenses, or authorizations of governmental authorities as may be required on or prior to the date the Company is legally required to obtain the same in connection with the
performance of its obligations under the Company Documents. The foregoing notwithstanding, for purposes of this representation and warranty, references to the Company Documents shall include only this Lease until such time as the Authority has
adopted the Bond Resolution and obtained validation of the Bond. 
  
 (e) No Defaults. No event has occurred and no condition exists that would constitute an Event of Default (as such term is used in the various Company Documents) or which, with the lapse of time or with the giving of
notice or both, would become an Event of Default thereunder. The foregoing notwithstanding, for purposes of this representation and warranty, references to the Company Documents shall include only this Lease until such time as the Authority has
adopted the Bond Resolution and obtained validation of the Bond. 
  
 (f) Disclosure. The representations of the Company contained in the Company Documents and any certificate, document, written statement, or other instrument furnished by or on behalf of the Company to the Authority or
Purchaser of the Bond in connection with the transactions contemplated hereby, do not contain any untrue statement of a material fact. The foregoing notwithstanding, for purposes of this representation and warranty, references to the Company
Documents shall include only this Lease until such time as the Authority has adopted the Bond Resolution and obtained validation of the Bond. 
  
 [End of Article II] 
  

 16 

 ARTICLE III 
 LEASING CLAUSE; SECURITY; TITLE 
  
 Section 3.1. Lease of the Project. The Authority, as lessor, hereby leases to the Company, as lessee, and the Company hereby leases from the Authority, the Project at the rental set forth in Section 5.3 hereof and for the Term
(as defined in Section 5.1 hereof and renewals thereof, in accordance with the provisions of this Lease. 
  
 Section 3.2. Security for Payments Under the Bond. As security for the payment of the Bond, the Authority intends to adopt the Bond
Resolution, under the terms of which the Authority shall execute and deliver to the Purchasers the Security Deed, in which the Authority shall grant unto the Purchasers, their successors and assigns, legal title (as security) to the Project and
shall assign unto the Purchasers, its successors and assigns, the other Pledged Security, as security for, among other things, the payment of the Bond. From and after the Completion Date, and except with respect to a breach by the Authority of its
covenant of quiet enjoyment contained in Section 5.2, below, the Company hereby agrees that its obligations to make all payments under this Lease shall be absolute and shall not be subject to any defense, except payment, or to any right of set off,
counterclaim, or recoupment arising out of any breach by the Authority of any obligation to the Company, whether hereunder or otherwise, or arising out of any indebtedness or liability at any time owing to the Company by the Authority. The Company
further agrees that all payments of rent required to be made under this Lease to the Authority (except as otherwise provided herein in the case of Additional Rent) shall, if requested by the Holder of the Bond be paid directly by the Company to the
Holder. 
  
 Section 3.3. Warranties and Covenants of
Authority as to Title. This Lease is being executed and delivered prior to the scheduled purchase of the Leased Land and Existing Improvements by the Authority. The Authority shall use its best efforts to acquire title to the Leased Land and any
existing Leased Improvements, and shall acquire title to any additions or improvements to the Leased Improvements that may be thereafter constructed or installed on the Leased Land. The Authority disclaims any interest in any trade fixtures or
equipment installed at the Project that neither are paid for with Qualified Funds nor constitute Additions, Alterations, replacements or substitutions therefor. The Authority warrants and covenants that, except for the lease of the Project and
options herein granted to the Company, except for any mechanics and materialmen’s liens relating to the construction or installation of Leased Improvements by the Company, as Construction Manager, and except as provided in the Security Deed,
the Authority shall not otherwise encumber the Project or any part thereof. The Authority covenants to take all acts necessary to defend its title to the Project and will do no act to impair such title. 
  
 Section 3.4. Warranties and Covenants of Company as to Title.
The Company, as Construction Manager, as provided in the Construction Management Agreement, will cause any mechanics’ and materialmen’s liens relating to the Project to be discharged and will take such further actions as are necessary to
cause good and merchantable title to the Project to be vested in the Authority (subject only to Permitted Encumbrances0. The Company further covenants to do no act that will impair the title of the Authority to the Project. Notwithstanding the
foregoing, the Company may, contest in good faith any such mechanics’ and materialmen’s liens relating to the Project, provided that it posts bond or takes such other action as may be required to prevent title to the Project from being
lost. In the case of liens relating Project Costs that constitute 
  

 17 

 Qualified Project Costs attributable to the Company’s fault, negligence, or directed change orders, the cost on
contesting such liens shall be paid by the Company. In the case of liens relating Project Costs that constitute Qualified Project Costs, but which are not attributable to the Company’s fault, negligence or directed change order, then, the same
shall be paid from Qualified Funds and to the extent that Qualified Funds are not available to contest such liens, such contest costs shall constitute Authority’s Project Costs and shall be paid by the Authority. 
  
 [End of Article III] 
  

 18 

 ARTICLE IV 
 CONSTRUCTION OF THE LEASED IMPROVEMENTS; 
 ISSUANCE OF THE BONDS; FUNDS 
  
 Section 4.1. Agreement to Construct the Project. As soon as
reasonably possible following the execution of the this Lease the Company, as Construction Manager, will complete the construction of the Leased Improvements pursuant to the Construction Management Agreement. 
  
 Section 4.2. Funding of Qualified Project Costs. Promptly
following the approval of the Project Budget and prior to commencement of construction, the Company shall deposit $1,500, 000 in the Construction Fund. Such amount shall be credited to a bookkeeping account and disbursed solely for the costs of
electrical work and refrigeration. The Authority shall deposit in the Construction Fund, when received: (i) the proceeds of the Edge grant ($1,500,000), (ii) proceeds of a REBA grant ($300,000) and (iii) funds to be provided by the Moultrie
Development Authority ($500,000). The Bond is to be issued in the maximum principal amount of $2,700,000. On the date the Bond is issued, a nominal initial draw of $1,000 shall be made under the Bond Purchase Loan Agreement and deposited in the
Construction Fund (in addition to any amounts draw to retire any interim borrowing to pay Qualified Project Costs). When all other amounts deposited in the Construction Fund have been spent on Qualified Project Costs, and subject to the issuance of
the Bond, the Custodian, as agent of the Authority, or the Authority acting as Custodian, upon receipt of Advance Requests, is to make additional draws under the Bond Purchase Loan Agreement to be credited to the Construction Fund and used to pay
Qualified Project Costs. Moneys in the Construction Fund shall be spent as follows: (1) the $1,500,000 provided by the Company shall be spent as needed to pay costs relating to electrical work and refrigeration, (II) moneys from the sources
specified in clauses (i), (ii) and (iii), above, and the initial $1,000 draw shall be spent on Qualified Projects Costs, as needed, provided that none of such money shall be used to pay costs relating to electrical work or refrigeration until all
funds described in clause (1) have been expended, and (III) last proceeds of the Bond shall be spent and, except for the initial draw, described above, moneys shall be draw-down, credited to the Construction Fund and disbursed to pay Qualified
Project Costs only when needed to pay Qualified Project Costs. If the Authority borrows funds, under an intergovernmental contract or otherwise, to provide moneys to the Construction Fund prior to the issuance of the Bond, the proceeds of the Bond,
when issued, shall first be used to repay such borrowing. 
  
 Section 4.3. Use of Amounts in the Construction Fund. Amounts in the Construction Fund shall be used only to pay, or to reimburse the Company or an Affiliate of the Company for, Qualified Project Costs. 
  
 Section 4.4. Disbursements from the Construction Fund.

  
 (a) In General. 
  
 (i) Normal Advances. Subject to compliance by the Company
with all of the terms, provisions, and conditions of the Construction Management Agreement and this Lease, including, but not limited to, the applicable conditions for disbursements set forth in this Section 4.4, the Authority hereby authorizes

  

 19 

 and directs the Company to act as its agent for the purpose of requesting Advances from the Construction
Fund to pay or reimburse the Qualified Project Costs. The Company shall submit to the Custodian of the Construction Fund Advance Requests in the form attached to the Bond Purchase Loan Agreement pertaining to the payment or reimbursement of
Qualified Project Costs. Each Advance Request shall be signed by an Authorized Company Representative and shall be accompanied by any supporting documentation required by the Bond Purchase Loan Agreement. Each Advance Request is subject to approval
by the Authority, acting reasonably, as complying with the Financing Documents, such approval to be evidenced by the signature of the Authorized Authority’s Representative thereon, and such approval not to constitute a waiver by the Authority
or any other party of its rights under the Financing Documents, notwithstanding such approval. The amount of any such draw under the Bond Purchase Loan Agreement shall be deposited in the Construction Fund and the Advance requested by the Company
(or such lesser amount as may be available in the Construction Fund) shall be disbursed by the Custodian, as provided in such Advance Requests, and as provided in (b), below. 
  
 (ii) Overruns Involving the Company. The Company shall pay the Company’s Project Costs as provided
herein, including, without limitation, Company’s Project Costs that constitute Qualified Project Costs attributable to the Company’s fault, negligence, or directed change orders that exceed the Project Budget. Such payments by the Company
shall be made directly and shall not affect the Basic Rent payable hereunder; however, any property being paid for shall be titled to the Authority, shall be subject to this Lease (including, without limitation, the requirement to keep such property
free of liens and encumbrances, except as otherwise expressly provided herein), and shall constitute a part of the Pledged Security. In the case of Project Costs that constitute Qualified Project Costs that exceed the Project Budget, but which are
not attributable to the Company’s fault or negligence, then, to the extent that Qualified Funds are available, such excess costs shall be funded out of Qualified Funds drawn under the Bond Purchase Loan Agreement as provided herein, and the
Basic Rent shall increase as a result of additional proceeds of the Bond being required. 
  
 (iii) Overruns Not Involving the Company. In the case of Project Costs that constitute Qualified Project Costs that exceed the Project
Budget, but which are not attributable to the Company’s fault, negligence or directed change order, then, to the extent that Qualified Funds are not available for the payment thereof, such excess costs shall constitute Authority’s Project
Costs. Authority’s Project Costs shall also include (i) any self-funding by the Authority pursuant to Section 4.4(a)(4), below; and (ii) any other funds of the Authority deposited pursuant to Section 4.2(i), above. The Authority shall use its
best efforts to fund Authority’s Project Costs. Such payments by the Authority shall be made directly and shall not affect the Basic Rent payable hereunder. Any property being paid for shall be titled to the Authority, shall be subject to this
Lease (including, without limitation, the requirement to keep such property free of liens and encumbrances, except as otherwise expressly provided herein), and shall constitute a part of the Pledged 
  

 20 

 Security. In the event that the Authority is unable, through the exercise of its best efforts, to fund
such Authority’s Project Costs, then, the Authority shall have the right at its option to terminate this Lease and the Construction Management Agreement, effective immediately upon giving written notice of termination to the Company, and such
termination shall be without prejudice to the accrued rights and claims of the parties. However, prior to giving such notice of termination, the Authority shall allow the Company the opportunity for at least 10 days after written notice to advance
the necessary funds. If the Company advances such funds, the advance shall bear interest at the same rate as the Bond, and the advance, plus the interest thereon, shall be repayable to the Company or if the Company elects to exercise its option to
purchase the Project, the Company shall be entitled to a credit for any amount so advanced and accrued interest that has not been repaid, as provided in Section 11.1. Any provision hereof to the contrary notwithstanding, however, in no event shall
the Authority have any personal liability to the Company with respect to such advances, this Lease or the Project; in all events and under all circumstances, the liability of the Authority to the Company shall be limited to the interest of the
Authority in the Project, and the Company agrees to look solely to the Authority ‘s interest in the Project for the recovery of any judgment or award against the Authority, it being intended that the Authority shall not be personally liable for
any judgment or deficiency. The parties agree that this Lease shall be recorded prior to the recording of the Security Deeds and that this Lease shall have priority over the Security Deeds. However, the Company expressly agrees that its claim to
repayment of any such advances and the interest thereon shall be subordinate to the claims of the holders of the Security Deeds. 
  
 (iv) Timing of Construction Fund Deposits. The Company shall deposit $1,500,000 in the Construction Fund prior to commencement of
construction, as herein provided. The Authority shall make the deposits into the Construction Fund required by clauses (i), (ii) and (iii) of Section 4.2, above, when such funds are received. However, if the Authority does not make the deposits
specified in the preceding sentence on or before March 1, 2000, then upon written demand of termination given by the Company to the Authority, made after March 1 and prior to the time prior to that all such deposits have been made, the Authority
shall, at its election, either: (1) terminate this Lease and the Construction Management Agreement, which termination shall be effective immediately upon giving written notice of termination to the Company and any portion of the Company’s
$1,500,000 deposit to the Construction Fund which has not be spent and which has not theretofore been contractually been committed by the Construction Manager to be spent, shall be refunded to the Company, provided that such termination shall be
without prejudice to the accrued rights and claims of the parties hereunder, or (2) fund the unfunded amount of such deposits through depositing other funds of the Authority in the Construction Fund (and, to the extent that proceeds of the Bond
Purchase Loan Agreement continue not to be available for purposes of such deposits, the Authority shall continue to make deposits as required by this Lease as though such self-funding represented proceeds of the Bond Purchase Loan Agreement).

  

 21 

 (b) The Company, when requesting Advances on behalf of the Authority, may request the
Custodian to make payments for Qualified Project Costs directly to (i) suppliers, contractors, subcontractors, laborers, materialmen, or persons furnishing labor, services, or materials used or to be used in connection with the Project, (ii) to the
Company or any Affiliate of the Company to reimburse it for Qualified Project Costs, or (iii) to any combination of the foregoing. Each Advance from the Construction Fund shall be made by the Custodian in lawful money of the United States by check,
wire transfer or by interbank or intrabank transfer of funds, as directed by the Company in such particular Advance Request, within five (5) Business Days following receipt by the Custodian of an Advance Request in compliance with the requirements
of this Lease and the Construction Management Agreement, and the Custodian may act in reliance upon any instrument or signature reasonably believed by it to be genuine and authorized. 
  
 (c) The Company covenants and agrees that, upon the written request of the Authority, the Custodian or any
Holder from time to time, it shall furnish to the Authority, the Custodian or such Holder, as applicable, with evidence which is reasonably satisfactory to the Authority, the Custodian or such Holder, as applicable, including, but not limited to,
certificates and affidavits of the Company and/or the consulting engineer, if a consulting engineer has been or is engaged, or any contractor or such other person as the Authority, acting through the Custodian, or any Holder may reasonably require,
showing (i) the extent completed, and estimated value, of the Leased Improvements at that time, (ii) that all outstanding claims for labor, materials, fixtures, furnishings, equipment, and other work have been paid or provided for in accordance with
the requirements of this Lease, and (iii) that the Company has substantially complied with all of the Company’s obligations hereunder and under the Construction Management Agreement. 
  
 (d) Further, in order to pay the costs of the issuance of
the Bond, the Custodian may use amounts in the Construction Fund to pay such costs of issuance. When the amounts previously deposited in the Construction Fund have been spent on Qualified Project Costs, the Custodian, as agent of the Authority,
without the need to receive any Advance Request relating thereto, subject to the issuance of the Bond, is to make additional draws under the Bond Purchase Loan Agreement to be used to pay such interest. All amounts drawn under the Bond Purchase Loan
Agreement are to be deposited in the Construction Fund and disbursed therefrom by the Custodian to the Holder in payment of interest, and for payment of other Qualified Project Costs as provided herein. 
  
 (e) Reference is made to that certain Report of Phase I
Environmental Site Assessment, Environmental Compliance Review, and Limited Asbestos Survey Update dated October 13, 2000 related to the Leased Improvements and performed by Law Engineering and Environmental Services, Inc. (“Law
Engineering”) for Tierjen, Inc. Subject to the provisions of this subsection (e) set forth below, and to the other terms and conditions of this Lease, the Company may make normal Advance Requests under Section 4.4(a)(l), above, to pay or
reimburse the costs of (1) a reasonable upgrade of the limited asbestos survey contained in such report or of obtaining a reasonable asbestos survey: (2) the costs of obtaining from Law Engineering reasonable errors and omissions 
  

 22 

 insurance coverage for the Authority and the Company with respect to Law Engineering’s services in providing such
report; and up to $1,800 to pay the premium costs for a policy of lessee’s title insurance for the Company. No such Advance Request may be made if it would cause the Construction Fund to be inadequate to pay other current and projected
Qualified Project Costs, as determined by agreement of the Authority and the Company. 
  
 Section 4.5. Obligation of the Parties to Cooperate in Furnishing Documents; Reliance of the Custodian. The Authority agrees to cooperate with the Company in furnishing to the Custodian the documents
referred to in this Article or in the Construction Management Agreement that are required to effect Advances from the Construction Fund. 
  
 Section 4.6. Establishment of Completion Date. When the Project has been substantially completed, such substantial completion shall be
evidenced to the Authority, to the Custodian and to the Holder by a certificate of occupancy issued by the applicable governmental authority, accompanied by a certificate of the Company stating that the Leased Improvements have been substantially
completed, listing the items, if any, that need to be completed or corrected and the amounts needed therefor, signed by the Authorized Company Representative and stating (I) that the construction of the Leased Improvements has been substantially
completed and (2) all Qualified Project Costs, Company’s Project Costs for which the Company has accepted the responsibility for payment, and Authority’s Project Costs for which the Authority has accepted the responsibility for payment
have been paid except for amounts needed to be disbursed for Qualified Project Costs, Company’s Project Costs for which the Company has accepted the responsibility for payment, and Authority’s Project Costs for which the Authority has
accepted the responsibility for payment which either are (i) not yet due and payable or (ii) are being contested (the estimated amount of such not yet due or contested amounts being set forth in the certificate). Notwithstanding the foregoing, such
certificate may state that it is given without prejudice to any rights against third parties which exist at the date of such certificate or which may subsequently come into being. It shall be the duty of the Company to cause the certificate
contemplated by this Section to be furnished as soon as the construction of the Leased Improvements shall have been substantially completed. When the Project has been fully completed and all Qualified Project Costs, Company’s Project Costs for
which the Company has accepted the responsibility for payment, and Authority’s Project Costs for which the Authority has accepted the responsibility for payment have been fully paid, the Company shall so notify the Authority, the Custodian and
the Holder in writing, whereupon the Construction Period shall terminate. The date of such notice shall be the “Completion Date.” If the Completion Date is later than March 1, 2001, and such delay was unexcused and was proximately caused
by acts or omissions involving the Company, the Company’s obligation to pay Basic Rent shall nevertheless commence as though the Completion Date had occurred as of March 1, 2001, and, in addition, the Authority may avail itself of its other
rights and remedies at law or in equity. If the Completion Date is later than July 1, 2001, and such delay was unexcused and was proximately caused by acts or omission not involving the Company, the Company may at its option terminate this Lease and
the Construction Management Agreement, effective immediately upon giving written notice of termination to the Authority, and such termination shall be without prejudice to the accrued rights and claims of the parties. A party shall be excused from
responsibility for delay if such delay was beyond its reasonable control and without its fault or negligence. 
  

 23 

 Section 4.7. Company Required to Pay the Company’s Project Costs. The Authority does
not make any warranty, either express or implied, that the Qualified Funds will be sufficient to pay either all of the Project Costs or all of the Qualified Project Costs. The Company agrees that the Company shall pay, from its own funds, any and
all of the Company’s Project Costs and that it shall not be entitled to any reimbursement therefor from the Authority, from the Construction Fund or from the Holder, nor shall it be entitled to any diminution of the amounts payable under
Section 5.3 hereof. The Company shall pay all of the Company’s Project Costs prior to the termination of the Construction Period. 
  
 Section 4.8. Authorized Company and Authority Representatives and Successors. The Company and the Authority, respectively, shall designate,
respectively, in the manner prescribed in Section 1.1 hereof, the Authorized Company Representative(s) and the Authorized Authority Representative(s). In the event that any person so designated should become unavailable or unable to take any action
or make any certificate provided for or required in this Lease, a successor or additional Authorized Company Representative or Authorized Authority Representative shall be appointed in the manner prescribed in Section 1.1 hereof. 
  
 Section 4.9. Enforcement of Remedies Against Contractors,
Subcontractors, Suppliers, Fabricators and Their Sureties. The Authority hereby authorizes the Company, as agent of the Authority, to take such action and institute such proceedings as shall be necessary to cause and require all contractors,
subcontractors, suppliers, fabricators, and their sureties to complete their contracts diligently in accordance with the terms of such contracts, including, without limitation, the correction of any defects. The Authority agrees that the Company
may, from time to time, in its own name, or in the name of the Authority, take such action as may be necessary or advisable, as determined by the Company, against such contractors, subcontractors, suppliers, fabricators and their sureties, to insure
the proper construction of the Leased Improvements. 
  
 The
Company agrees that any such action taken by it pursuant to this Section shall be at its own expense, and without cost to the Authority. 
  
 [End of Article IV] 
  

 24 

 ARTICLE V 
 EFFECTIVE DATE OF THIS LEASE; DURATION OF LEASE TERM; 
 RENTAL PROVISIONS; 
 NATURE OF OBLIGATIONS OF COMPANY 
  
 Section 5.1. Effective Date of this Lease: Duration of Lease Term. This Lease shall become effective upon its delivery. The initial Term of
this Lease shall expire at 11:59 p.m., City of Moultrie, Georgia, time, on the last day of the month immediately preceding the fifth anniversary of the Rent Commencement Date, unless this Lease is earlier terminated as herein provided. The Company,
if it is not in default hereunder, shall have the option to renew this Lease for a renewal term of two years. To exercise such option, the Company shall give written notice of renewal to the Authority at least 180 days prior to the commencement date
of the renewal term. Reference herein to the Term of this Lease, refers to the initial Term and, if this Lease has been renewed, shall include the renewal term. 
  

Section 5.2. Delivery and Acceptance of Possession; Quiet Enjoyment. The Company shall, commencing with the date of delivery of this
Lease, have possession, custody and control of the Project as it exists on such date and the Company hereby accepts such possession, custody and control. The Company, as Construction Manager for the Authority; shall complete the construction of the
renovation of the Project pursuant to this Lease. The Authority agrees that, subject to Permitted Encumbrances, so long as the Company shall fully and punctually pay all of the rents and other amounts provided to be paid hereunder by the Company and
shall fully and punctually perform all of its other covenants and agreements hereunder, the Company shall peaceably and quietly have, hold, and enjoy the Project during the Term, and the Authority warrants and covenants, subject to Permitted
Encumbrances, that it will defend the Company in such peaceable and quiet possession of the Project. The Authority covenants and agrees that, subject to Permitted Encumbrances, it shall not take any action, other than pursuant to Article X of this
Lease, or the other express provisions of this Lease, to prevent the Company from having quiet and peaceable possession and enjoyment of the Project during the Term. 
  
 Section 5.3. Rents and Other Amounts Payable. 
  
 (a) Basic Rent: Commencing on the Rent Commencement Date and on the first day of each sixth month thereafter
during the Term, including any renewal term, the Company shall pay Basic Rent, in advance in the amount of $175,000 (being an annual rent of $350,000 for a full year). 
  
 (b) Additional Rent: 
  
 (i) The Company agrees that, during the Term, it shall pay directly to the Authority, as Additional Rent,
(I) an amount sufficient to reimburse the Authority for all expenses, advances or liabilities incurred by the Authority as a result of the failure of the Company to comply with the terms of this Lease, including, but not limited to, the reasonable
fees and expenses of counsel for the Authority and (II) any amounts that are subject to payment or indemnification by the Company to the Authority under Sections 5.3(b)(i), 6.6, 8.5 or 10.4 hereof. All payments of Additional Rent described in this
paragraph shall be billed to the 
  

 25 

 Company by the Authority from time to time, together with reasonable supporting documentation thereof.
Amounts so billed shall be paid by the Company within thirty (30) days after receipt of the bill by the Company; the right of the Authority to payments under this paragraph is one of the Unassigned Rights. In the event the Company shall fail to make
any of the payments required in this Section 5.3(b)(i), the unpaid amount shall continue as an obligation of the Company until fully paid, and shall accrue interest from such thirtieth day at the lesser of: (i) the Default Rate calculated on the
basis of a 365/366 day year and actual number of days elapsed or (ii) the maximum rate allowed by law. 
  
 (ii) The Company agrees that, during the Term, it shall pay directly to any Holder, as Additional Rent, an amount sufficient to reimburse
such Holder for all expenses, advances or liabilities incurred by such Holder, including, but not limited to, the reasonable fees and expenses of counsel for such Holder, as a result of the failure of the Company to comply with the terms of this
Lease and any amounts that are subject to payment or indemnification by the Company to such Holder under Sections 5.3(b)(i), 6.6, 8.5 or 10.4 hereof. All payments of Additional Rent described in this paragraph shall be billed to the Company by such
Holder from time to time, together with reasonable supporting documentation thereof. Amounts so billed shall be paid by the Company within thirty (30) days after receipt of the bill by the Company. In the event the Company shall fail to make any of
the payments required in this Section 5.3(b)(ii), the unpaid amount shall continue as an obligation of the Company until fully paid, and shall accrue interest from such thirtieth day at the lesser of: (i) the Default Rate calculated on the basis of
a 356/366 day year and actual number of days elapsed or (ii) the maximum rate allowed by law. 
  
 Section 5.4. Place of Rental Payments. The Basic Rent provided for in Section 5.3(a) hereof, shall be paid directly to the respective Holder for the account of the Authority in the manner provided in
Section 5.3(a). The Additional Rent provided for in Section 5.3(b)(i) and any interest on late payments thereof shall be payable directly to the Authority. The Additional Rent provided for in Section 5.3(b)(ii) and any interest on late payments
thereof shall be payable directly to the Holder that is entitled thereto. All payments shall be paid in lawful money of the United States of America in funds that are immediately available on the due date of such payment. 
  
 Section 5.5. Nature of Obligations of Company Hereunder.

  
 (a) The obligations of the Company to make
the payments required in Section 5.3 hereof and other sections hereof and to perform and observe any and all of the other covenants and agreements on its part contained herein shall be a general obligation of the Company and shall, from and after
the Completion Date, and except with respect to a breach by the Authority of its covenant of quiet enjoyment contained in Section 5.2, above, be absolute and unconditional irrespective of any defense or any rights of set off, recoupment, or
counterclaim, except payment, it may otherwise have against the Authority or any Holder. The Company agrees that it shall, from and after the Completion Date, and except with respect to a breach by the Authority of its covenant of 
  

 26 

 quiet enjoyment contained in Section 5.2, above, not (i) suspend, abate, reduce, abrogate, diminish,
postpone; modify, or discontinue any payments provided for in Section 5.3 hereof, (ii) fail to observe any of its other agreements contained in this Lease, or (iii) terminate its obligations under this Lease for any contingency, act of God, event,
or cause whatsoever, including, without limiting the generality of the foregoing, failure of the Company to occupy or to use the Project as contemplated in this Lease or otherwise, any change or delay in the time of availability of the Project, any
acts or circumstances which may impair or preclude the use or possession of the Project, any defect in the title, design, operation, merchantability, fitness, or condition of the Project or in the suitability of the Project for the Company’s
purposes or needs, failure of consideration, any declaration or finding that a Bond is unenforceable or invalid, the invalidity of any provision of this Lease, any acts or circumstances that may constitute an eviction or constructive eviction,
destruction of or damage to the Project, the taking by eminent domain of title to or the use of all or any part of the Project, failure of the Authority’s title to the Project or any part thereof, commercial frustration of purpose, any change
in the tax or other laws of the United States of America or of the State or any political subdivision of either thereof or in the rules or regulations of any governmental authority, or any failure of the Authority to perform and observe any
agreement, whether express or implied, or any duty, liability, or obligation arising out of or connected with this Lease. The preceding sentence is not intended to impair, and shall not impair, the Company’s rights under Sections 6.5, 6.7 and
7.1, below, in the event of damage, destruction or condemnation of the Project. 
  
 (b) Nothing contained in this Section shall be construed to release the Authority from the performance of any of the agreements on its
part herein contained. In the event the Authority should fail to perform any such agreement on its part, the Company may institute such action against the Authority as the Company may deem necessary to compel performance so long as such action does
not abrogate the Company’s obligations hereunder. The Authority hereby agrees that it shall not take or omit to take any action that would cause this Lease to be terminated, except pursuant to an express right contained herein. 
  
 (c) The Company may, however, at its own cost and expense
and in its own name or in the name of the Authority, prosecute or defend any action or proceeding or take any other action involving third persons which the Company deems reasonably necessary in order to secure or protect its right of possession,
occupancy, and use hereunder, and in such event the Authority hereby agrees to cooperate fully with the Company and to take all action necessary to effect the substitution of the Company for the Authority in any such action or proceeding if the
Company shall so request. 
  
 [End of Article V] 
  

 27 

 ARTICLE VI 
 MAINTENANCE, TAXES, INSURANCE AND EMINENT DOMAIN 
  
 Section 6.1. Maintenance of Project. The Company, at the expense of the Company, during the Term shall (i) keep the Project in as reasonably safe condition as its operations shall permit and (ii) keep
the Leased Improvements in reasonably good repair and operating condition, making from time to time, subject to the provisions of Section 6.2 hereof, all necessary and proper repairs thereto and renewals and replacements thereof, including external
and structural repairs, renewals, and replacements. Subject to the provisions of Article VIII hereof, the Company, at its own expense, may from time to time make any Additions or Alterations and any modifications, upgrades, replacements and
substitutions to the Leased Improvements that it may deem desirable for its purposes, subject to obtaining the Authority’s prior consent, which consent shall not be unreasonably withheld, conditioned or delayed. Subject to the provisions of
Section 9.7 hereof, Additions or Alterations and any modifications, upgrades, replacements and substitutions to the Leased Improvements so made by the Company shall be located on the Leased Land and shall become a part of the Project. The Company
shall not do or permit others under its control to do any work in or about the Project or related to any repair, rebuilding, restoration, replacement, alteration of, or addition to the Leased Improvements, or any part thereof, unless all requisite
municipal and other governmental permits and authorizations shall have first been procured and paid for. All such work shall be done in a good and workmanlike manner and in compliance with all applicable laws, ordinances, governmental regulations,
and requirements. Notwithstanding the foregoing, in the event the Project, or any part thereof, is damaged or destroyed by casualty, the Company’s obligations to repair or replace the Project, or portion thereof so damaged or destroyed, shall
be governed exclusively by Section 7.1 hereof. 
  
 Section 6.2.
Removal of Building Fixtures. The Authority shall not be under any obligation to replace any inadequate, obsolete, worn out, unsuitable, undesirable, or unnecessary building fixtures. The Company shall not be under any obligation to
replace any inadequate, obsolete, worn out, unsuitable, undesirable, or unnecessary building fixtures, unless the replacement thereof is necessary, in the judgment of the Company for the proper operation of the Project or is necessary, in the
judgment of the Authority or the Holder to preserve the value of the Project. Subject to the foregoing exceptions, if no Event of Default under this Lease shall have happened and be continuing, in any instance where the Company in its discretion
determines that any building fixture or part thereof has become inadequate, obsolete, worn out, unsuitable, undesirable, or unnecessary, the Company, following the giving of not less than thirty (30) days notice to the Authority and to the Holder of
its intention to do so, may remove, at its own expense, such building fixture or part thereof from the Leased Improvements and sell, trade in, exchange, scrap or otherwise dispose of the same without any responsibility or accountability to the
Authority or any Holder. The removal from the Leased Improvements of any building fixture or part thereof pursuant to the provisions of this Section shall not entitle the Company to any abatement or diminution of the rental payments payable under
Section 5.3 hereof. If any building fixture or part thereof is to be sold or traded in, rather than abandoned and discarded, then, at the written request of the Company, the Authority shall execute such instruments as shall be required to convey
title thereto to the purchaser or to the person accepting the same as a trade in and the Holder shall release the lien and security interest of the Security Deed therein. This Section 6.2 shall be in addition to the Company’s rights under
Section 9.7, below, to remove its 

  

 28 

 
own trade fixtures, machinery, equipment, furnishings, and other personal property from the Project. 
  
 Section 6.3. Taxes, Other Governmental Charges, and Utility
Charges. The Company, at the expense of the Company, shall, throughout the Term, duly pay and discharge, as the same become due and payable, (i) all taxes and governmental charges of any kind whatsoever that may (on account of a change in law or
otherwise) at any time be lawfully assessed or levied against or with respect to the interests of the Authority, of the Company and of the Holder in the Project, (ii) any sales or rent taxes levied upon or with respect to the lease revenues and
receipts of the Authority from the Project which, if not paid, will become a lien on the Project or a charge on the revenues and receipts therefrom prior to or on a parity with the charge, pledge, and assignment thereof created and made in the Bond
Resolution and in the Security Deed, (iii) all utility and other charges incurred in the operation, maintenance, use, occupancy, and upkeep of the Project, and (iv) other levies, permit fees, inspection and license fees and all other charges imposed
upon or assessed against the Project or any part thereof or upon the revenues, rents, issues, and income of the Project or arising in respect of the occupancy, uses or possession thereof. Both the Authority and the Holder shall be entitled to
enforce the provisions of this Section, and the Authority’s right to enforce the same is one of the Unassigned Rights. 
  
 Under current law, property owned by the Authority is exempt from ad valorem property tax. The Company shall make annual payments in lieu of
taxes to the Authority, for the benefit of the state, the county, the city and the other local taxing authorities, equal to the following payment percentages of the ad valorem taxes which they would have levied against the Project if
the Company, rather than the Authority, were the owner of the Project on January 1 of such year: 
  

	 Tax Year

	  	 Payment
 Percentage

	 2002
	  	20%
	 2003
	  	40%
	 2004
	  	60%
	 2005
	  	80%
	 2006 and thereafter
	  	100%

  
 For purposes of
calculating the payments in lieu of taxes (i) the fair market value of the Project shall be determined using the valuation procedures ordinarily employed in the County for purposes of ad valorem property taxation, (ii) the fair market
value shall be multiplied by the assessment percentage (40%), (iii) the resulting “assessed value” shall be multiplied by the respective millage rates of the state, county, city and local taxing authorities to determine the gross normal
tax” applicable to each such governmental entity and (iv) and the “gross normal tax” applicable to each such governmental entity shall be multiplied by the applicable payment percentage for the year for which such calculation is made
to determine the payment in lieu of taxes payable in such year to each such governmental entity. In any year in which a payment in lieu of taxes is due hereunder, the Company shall, on or before the date actual ad valorem taxes would
normally be due, deliver to the Authority, checks payable to the respective tax collectors for such state, county, city, and local taxing authorities for the payment in lieu of taxes payable in such year to each such governmental entity for which
such tax collectors collect taxes. Receipt of such checks shall be noted by the Authority on its records and the Authority shall then 
  

 29 

 forward the respective checks to the respective tax collectors that are the payees thereof. The Authority shall have no
economic interest in such payments in lieu of taxes, but shall serve a collector thereof for the benefit of such governmental entities. Should the Company fail to make payments in lieu of taxes required by this Section at the times and in the manner
provided for in this Section, the Company shall be obligated to pay to the respective governmental entities, in addition to such payment in lieu of taxes, an additional amount that shall be equal to the penalties and interest that would be assessed
against the Company if such payment in lieu of taxes were delinquent ad valorem taxes. If the Authority’s ownership interest in the Project, the Company’s leasehold interest or any other interest therein should become subject
to actual ad valorem taxes in any tax year, the Company’s obligations to pay payments in lieu of taxes, above, shall be inapplicable to such tax year. 
  
 Section 6.4. Insurance Required. 
  
 (a) The Company, at the expense of the Company, during the Construction Period and throughout the Term,
shall carry the following insurance: 
  
 (i)
hazard and casualty insurance on the Leased Improvements, in amounts (taking into account a deductible of not more than $100,000 per occurrence) not less than the lesser of (A) an amount not less than 100% of replacement cost of the Project or (B)
full insurable value of the Project; all hazard, casualty, and flood insurance policies obtained by the Company as required by Section 6.4(a)(i) shall be endorsed to name the Authority, as owner, and the Holder as a secured party, with loss payable
to jointly to the Authority and the Holder, without contribution, under a standard mortgagee clause (the deductible amount specified above may be increased with the written consent of the Authority and the Holder); and 
  
 (ii) general liability insurance, in amounts of $1,000,000
per occurrence and $2,000,000 in aggregate, and fire damage for any one fire of $500,000, subject to deductibles per occurrence not to exceed $100,000; such policy or policies shall name the Authority and the Holder as additional insureds (the
deductible amount specified above may be increased with the written consent of the Authority and the Holder); and 
  
 (iii) worker’s compensation insurance as required by law relating to the Company’s employees working at the Project. 

 
 The Company further agrees that it will, at all times during the Construction Period, use
its best efforts to cause any general contractor involved in the constriction of the Leased Improvements to maintain general liability insurance in an amount not less than that required to be maintained under this Section, and shall cause the
Authority, the Company and the Holder to be named as additional insureds under such insurance. The Company shall also use its best efforts to cause the general contractor to maintain worker’s compensation insurance as required by law. In
addition, if the above-mentioned general liability insurance does not cover the Authority, the Company and the Holder as to the subject matter of such worker’s compensation insurance, then the Company shall either provide, or use its best
efforts to cause the general contractor to 
  

 30 

 provide, other insurance covering the Authority, the Company and the Holder with respect to such subject matter. Each
party hereto shall, if possible, obtain a waiver from any insurance carrier with which it carries insurance covering the demised premises or the contents thereof, releasing subrogation rights against the other party 
  
 (b) All such insurance policies and endorsements required by
this Section 6.4 shall be fully paid for (including periodic premium payments) and contain such provisions and expiration dates and be in such form and issued by insurance companies licensed to do business in the State of Georgia. In lieu of
separate policies, the Company may maintain one or more blanket policies of insurance having the coverage required by Section 6.4(a) hereof. Without limiting the foregoing, each policy shall provide that no act or thing done by the Company shall
invalidate the policy as against the Authority and the Holder and the Company shall provide the Authority and the Holder with a certificate of the insurer that provides that such insurance may not be canceled or materially changed by the insurer
without at least thirty (30) days’ prior written notice to the Company, the Authority, and the Holder. 
  
 (c) A certificate or certificates of the insurers relating to the insurance referred to in Section 6.4 (a), above showing that such
insurance is in force and effect shall be deposited with the Authority, and prior to the expiration of any such policy the Company shall furnish the Authority with a certificate of insurance reasonably satisfactory to the Authority showing that the
policy has been renewed or replaced. At the written request of the Authority, the Company shall deliver to the Authority receipts evidencing the payment for all such insurance policies and renewals and replacements. 
  
 (d) The Authority, by the Security Deed, shall assign its
interest in the casualty insurance, described above, to the Holder, together with all unearned premiums as further security for the Bond. 
  
 (e) The Authority and the Holder shall each be entitled to enforce the provisions of this Article, and the Authority’s right to
enforce this Article shall be one of the Unassigned Rights. 
  
 Section 6.5. Application of Net Proceeds of Insurance. The Net Proceeds of the insurance carried pursuant to the provisions of Sections 6.4(a)(ii) and (iii) and similar insurance carried by any contractor shall be applied
toward extinguishment or satisfaction of the liability with respect to which such insurance proceeds have been paid. The Net Proceeds of insurance carried pursuant to Section 6.4(a)(i) shall be transferred to the Custodian and deposited in the
Project Restoration Fund to be applied as provided in Article VII hereof. 
  
 Section 6.6. Advances by the Authority or the Holder. If the Company shall fail to do any act or pay any taxes, assessments, charges or insurance premiums required by this Article, the Authority or any
Holder may (but shall be under no obligation to), after notifying the Company of its intention to do so, do any such act or pay any such taxes, assessments, charges or premiums required by this Article, and all amounts so advanced therefor by the
Authority or any Holder shall become an additional obligation of the Company to the one making the advancement, which amounts shall constitute Additional Rent which shall be payable, with 
  

 31 

 interest as provided in Section 5.3 (b). Any remedy herein vested in the Authority for the collection of rent shall also
be available to each Holder for the collection of any Additional Rent payable to such Holder on account thereof. 
  
 Section 6.7. Eminent Domain. If the Authority or the Company obtains knowledge of the institution or threat of institution of any
proceedings for the taking of the Project or any portion thereof by exercise of the power of eminent domain, it shall immediately notify the other party hereto and the Holder of the pendency of such proceedings. The Authority, the Company and the
Holder may participate in any such proceedings and Authority from time to time shall deliver to the Company and the Holder all instruments requested by it to permit such participation. The Authority shall not settle any eminent domain proceeding
relating to the Project or any part thereof or sell the Project or any part thereof under threat of eminent domain without the prior written consent of the Company and the Holder. The Net Proceeds of any eminent domain award or any sale in lieu of a
taking by eminent domain shall be transferred to the Custodian and deposited in the Project Restoration Fund to be applied as provided in Article VII hereof. 
  
 [End of Article VI] 
  

 32 

 ARTICLE VII 
 DAMAGE, DESTRUCTION, AND CONDEMNATION 
  
 Section 7.1. Repair, Restoration or Replacement. If any portion of the Project is damaged, destroyed or taken by eminent domain (or is sold under threat of eminent domain), the Net Proceeds shall, upon
receipt, be deposited in the Project Restoration Fund which shall be held by the Custodian and used for the repair, restoration or replacement of the Project. If such Net Proceeds are not sufficient to repair or replace the Project, so that the
Project as repaired, restored or replaced shall be at least equal in value and general utility as it was prior to the damage or destruction or taking, then the Company shall provide such additional funds as are needed to repair, restore or replace
the Project. 
  
 If it becomes necessary to repair, restore or
replace the Project, the Authority and the Company may enter into an agreement, substantially similar to the Construction Management Agreement, under which the Company, as Construction Manager for the Authority, shall promptly proceed to do so and
shall prosecute its repair, restoration and replacement activities with due diligence. Amounts held in the Project Restoration Fund shall be disbursed to pay costs for such repair, restoration or replacement substantially in the manner provided for
herein for the disbursement of amounts in the Construction Fund. Under no circumstance shall damage or destruction of the Project or restoration or repair thereof be deemed to extend the Maturity Date of the Bond or the dates on which payments of
interest and/or principal specified in the Bond are due or relieve the Company of its obligations to make scheduled periodic payments of Basic Rent. Upon completion of the work and payment in full therefor, the Custodian shall apply any amount
remaining in the Project Restoration Fund first to reimburse the Company, for deposits it has made to the Project Restoration Fund and then as provided in the Security Deed. 
  
 [End of Article VII] 
  

 33 

 ARTICLE VIII 
 ADDITIONAL COVENANTS; ADDITIONAL BONDS 
  
 Section 8.1. No Warranty of Condition or Suitability by the Authority. THE ISSUER MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE MERCHANTABILITY, CONDITION, OR WORKMANSHIP OF ANY PART OF THE
PROJECT OR THAT THE SAME WILL BE SUITABLE FOR THE COMPANY’S PURPOSES OR NEEDS. 
  
 Section 8.2. Access to Project and Records. The Authority and the Holder and their respective duly authorized representatives and agents, shall have the right, upon reasonable prior notice, but subject
to any reasonable restriction imposed by the Company for the protection of its patents, trademarks, trade secrets, and other confidential proprietary information, to enter the industrial plant located on the Leased Land at all reasonable times
during the Term for the purpose of (i) examining and inspecting the Project and (ii) performing such work in and about the Project made necessary by reason of an Event of Default. The Authority and the Holder shall also have the right at all
reasonable times to examine, photocopy and make extracts from the books and records of the Company, insofar as such books and records relate to the repair and maintenance of the Project or insofar as necessary to ascertain compliance with this
Lease. 
  
 Section 8.3. Company to Maintain its
Existence and Qualification; Conditions Under Which Exceptions Permitted. The Company agrees that while this Lease is in effect it shall maintain its legal existence and good standing as a limited partnership in the state of its domicile and
shall before conducting business and thereafter maintain its qualification to do business and good standing in the State, shall not without the prior written consent of the Authority and the Holder, which consent shall not be unreasonably withheld
or delayed, consolidate with or merge into another Person or permit one or more other Persons to consolidate with or merge into it, and shall not dissolve or otherwise dispose of all or substantially all of its assets. The Company may, without
violating the agreement contained in this Section, consolidate with or merge into a Permitted Entity, or permit one or more such other legal entities to consolidate with or merge into it, or the Company may sell or otherwise transfer to another
Permitted Entity all or substantially all of its assets as an entirety and thereafter dissolve, provided the surviving, resulting, or transferee Permitted Entity (i) is authorized to do business in the State, (ii) assumes in writing all of the
obligations of the Company under this Lease, (iii) obtains all licenses and permits required by law to operate the Project and (iv) has a new worth of not less than that of the Company immediately prior to such merger, consolidation of transfer of
assets. In calculating such net worth, indebtedness that is subordinated to the Company’s obligations under this Lease shall be deemed to be “equity,” rather than indebtedness. 
  
 Section 8.4. Operation of the Project. The Company shall
operate the Project as a meat processing plant throughout the Term following the Completion Date, and, except in accordance with its normal business practices (for a period not exceeding 30 consecutive days, or for more than 60 days per year), shall
not suspend such operation except for reasons beyond the control of the Company. 
  

 34 

 Section 8.5. Indemnity. 
  
 (a) The Company shall and agrees to indemnify and save the Authority, the Holder and their respective
officials, directors, officers, members, and employees harmless against and from all claims by or on behalf of any Person arising from or relating to (i) any condition of or operation of the Project, (ii) any, act or negligence of the Company or of
any of its agents, contractors, servants, employees, or licensees, (iii) any act or negligence of any assignee or sublessee of the Company or of any agents, contractors, servants, employees, or licensees of any assignee or sublessee of the Company,
or (iv) any violation of the federal or State securities laws by the Company. However, with respect to matters referred to in the preceding clauses (i), (ii), (iii) or (iv), this indemnity shall not apply, as to the Authority, to any acts of gross
negligence or willful misconduct or intentional misconduct of the Authority and, as to the Holder, to any acts of gross negligence or willful misconduct or intentional misconduct of the of the Holder, or in the case of matters referred to in clause
(iv) this indemnity shall not apply to the Holder if such Holder has acquired a Bond other than in a bona fide private placement and has failed to perform a thorough due diligence investigation in connection therewith. The Company shall indemnify
and save the Authority and the Holder (and the other persons and entities referred to above, as appropriate) harmless from and against all costs and expenses incurred in or in connection with any such claim or in connection with any action or
proceeding brought thereon, including reasonable attorneys’ fees actually incurred, and upon notice from the Authority or from the Holder, as applicable, the Company shall defend it (and the other persons and entities referred to above, as
appropriate) in any such action or proceeding. The indemnities set forth above specifically extend to, but are in no way limited to, governmental or other claims relating to any actual or alleged violation of any Environmental Laws, provided, that
such indemnity shall not extend to any actual or alleged violation of any Environmental Laws, which violation exclusively relates to the Leased Land and exclusively relates to a cause or condition occurring or existing prior to the delivery of this
Lease. 
  
 (b) With respect to the indemnity
contained in the preceding subparagraph (a), if any proceeding before any court, governmental body or arbitrator is brought against an indemnified party, the indemnifying party will be entitled to participate in such proceeding and, to the extent
that it wishes (unless the indemnifying party is also a party to such proceeding and the indemnified party determines in good faith that joint representation would be inappropriate) to assume the defense of such proceeding with counsel satisfactory
to the indemnified party, acting reasonably. If the indemnifying party assumes the defense of a proceeding, the indemnifying party without the indemnified party’s consent, which consent shall not be unreasonably withheld, may effect no
compromise or settlement of such claims on behalf of the indemnified party. Notwithstanding the foregoing, if an indemnified party determines in good faith that there is a reasonable probability that a proceeding may adversely affect it or its
affiliates other than as a result of monetary damages for which it would be entitled to indemnification under this Lease, the indemnified party may, by notice to the indemnifying party, assume the exclusive right to defend, compromise, or settle
such proceeding, but the indemnifying party will not be bound by any determination of a proceeding so defended or any compromise or settlement effected without its consent. 
  

 35 

 (c) Nothing contained in this Section 8.5 shall require the Company to indemnify any
indemnified Person for any claim or liability for which the Company was not given any opportunity to contest or for any settlement of any such action effected without the Company’s consent (assuming such rights are available and have not been
waived in writing by the Company). The indemnity of the indemnified Persons contained in this Section 8.5 shall survive the termination of this Lease. 
  
 (d) Anything in the Lease to the contrary notwithstanding, it is agreed that each party (the “Releasing Party”) hereby releases
the other party (the “Released Party”) from any liability or responsibility (to the Releasing Party or anyone claiming through or under the Releasing Party by way of subrogation or otherwise) which the Released Party would, but for this
Section 8.5 have had to the Releasing Party during the term of this Lease resulting from the occurrence of any accident or occurrence or casualty (i) which is or would be covered by a fire and extended coverage policy (with a vandalism and malicious
mischief endorsement attached) or by sprinkler leakage, boiler and machinery or water damage policy in the State of Georgia (irrespective of whether such coverage is being carried by the Releasing Party), or (ii) covered by any other casualty or
property damages insurance being carried by the Releasing Party at the time of such occurrence, even if such casualty resulted in whole or in part from any act or neglect of the Released Party, its partners, officers, agents or employees; provided,
however, that the releases herein contained shall not apply to any loss or damage occasioned by the willful, wanton or premeditated action or omission of the Released Party. Each party hereto shall, if possible, obtain a waiver from any insurance
carrier with which it carries insurance covering the demised premises or the contents thereof, releasing subrogation rights against the other party. 
  
 (e) The Authority and the Holder shall each be entitled to enforce its right to indemnification under this Section, and the
Authority’s right to indemnification hereunder shall be one of the Unassigned Rights. 
  
 Section 8.6. Licenses and Permits. The Company shall do all things necessary to obtain, maintain, and renew, from time to time, as necessary, all permits, licenses, franchises, and other governmental
approvals necessary for the operation of the Project and obtainable by the Company, the lack of which would have a material adverse affect upon the Company’s ability to meet its obligations under this Lease. The Company hereby agrees to give
prompt notice to the Authority and the Holder of the loss of any permit, license, franchise, or other governmental approval, which notice shall set forth the reasons for such loss. 
  
 Section 8.7. Compliance with Laws. The Company warrants that throughout the Term it shall, at its own expense,
maintain the Project in compliance with all applicable life and safety codes and all applicable building and zoning, health, environmental, and safety ordinances and laws, including the Occupational Health and Safety Act, the Americans With
Disabilities Act of 1990, and all applicable Environmental Laws (provided, that such warranty shall not extend to any actual or alleged violation of any Environmental Laws, which violation exclusively relates to the Leased Land and exclusively
relates to a cause or condition occurring or existing prior to the commencement of work on the Leased Land for purposes of the Project), and all other applicable laws, ordinances, rules, and regulations of the United States of America, the

  

 36 

 State, and any political subdivision or agency thereof having jurisdiction over the Project and which relate to the
operations of the Project, any violation of which would have a material adverse affect on the Company’s ability to fully perform its obligations under this Lease. The Company shall not, in its use or operation of the Project, discriminate or
permit discrimination on the basis of race, sex, color or national origin in any manner prohibited by local state or federal laws, rules, orders or regulations. 
  

If the Company shall first notify the Authority and the Holder of its intention to do so, the Company may, at its own expense and in its own name and
behalf or in the name and behalf of the Authority and in good faith, contest any allegation that it has not complied with the laws described in this Section 8.7 and, in the event of any such contest, the provisions of this Section 8.7 shall not
apply to any such alleged violations of law during the period of such contest and any appeal therefrom. The Authority shall, at the expense of the Company, cooperate fully with the Company in any such contest. 
  
 The Authority and the Holder shall each be entitled to enforce the provisions
of this Section, and the Authority’s right to enforce this Section shall be one of the Unassigned Rights. 
  
 Section 8.8. Granting of Easements. The Authority, at the written request of the Company, subject to the approval of the Holder, shall at
any time or times grant easements, licenses, rights of way (including the dedication of public highways), and other rights or privileges in the nature of easements with respect to the Leased Land, or the Authority, at the written request of the
Company, shall release existing easements, licenses, rights of way, and other rights or privileges with or without consideration, and the Authority agrees that it shall execute and deliver any instrument necessary or appropriate to confirm and grant
or release any such easement, license, right of way, or other right, or privilege upon receipt of (i) a copy of the instrument of grant or release, (ii) a written application signed by the Authorized Company Representative requesting such
instrument, and (iii) a certificate executed by the Authorized Company Representative stating that such grant or release will not impair the effective use or interfere with the operation of the Project. Any money consideration received in connection
with the granting or release of an easement pursuant to this Section 8.8 shall be used, at the election of the Company, to acquire additional property for the Project or to retire principal of the Bond. No grant or release effected under the
provisions of this Section shall entitle the Company to any abatement or diminution of the rents payable under Section 5.3 hereof. 
  
 [End of Article VIII] 
  

 37 

 ARTICLE IX 
 ASSIGNMENT, SUBLEASING, ENCUMBERING, AND SELLING; REDEMPTION; 
 RENT PREPAYMENTS AND ABATEMENT;
INSTALLATION OF 
 COMPANY’S OWN MACHINERY AND EQUIPMENT 
  
 Section 9.1. Assignment and Subleasing. The Company may not assign this Lease or sublease the Project, as a
whole or in part, without obtaining the prior written consent of the Authority and the Holder, which consent shall not unreasonably be withheld, conditioned or delayed. Notwithstanding the foregoing, the Company may assign of its interest in this
Lease to a Permitted Entity if the requirements set forth in Section 8.3 pertaining to a “surviving, resulting or transferee Person” have been fulfilled. Any such consolidation, merger or transfer of substantially all of the assets of the
Company as provided in Section 8.3 hereof, and any assignment, delegation or sublease authorized in Section 8.3 hereof or above in this Section 9.1, or otherwise consented to by the Authority, shall be subject to each of the following conditions:

  
 (a) No assignment (other than pursuant to
Section 8.3 hereof in a transaction in which the Company ceases to exist) or sublease shall relieve the Company from primary liability for any of its obligations hereunder, and in the event of any such assignment or sublease, the Company shall
continue to remain primarily liable for payment of the rents specified in Section 5.3 hereof and for the payment, performance, and observance of the other obligations and agreements on its part herein provided to be performed and observed by it,
unless the Authority and the Holder of the Bond consent in writing to such release. 
  
 (b) The assignee or sublessee shall assume in writing the obligations of the Company hereunder to the extent of the interest assigned or
subleased. 
  
 (c) The Company shall furnish or
cause to be furnished to the Authority and the Holder assurances reasonably satisfactory to the Authority and the Holder that the Project will continue to be operated in compliance with the provisions hereof. 
  
 (d) No such assignment or sublease (other than pursuant to
Section 8.3 hereof in a transaction in which the Company ceases to exist) shall give rise to a novation, unless the Authority and the Holder of the Bond agree in writing to such novation. 
  
 (e) The Company or such “surviving, resulting or
transferee Person” shall, within thirty (30) days prior to the execution thereof, furnish or cause to be furnished to the Authority a true and complete copy of each such proposed assignment or sublease or documents of merger, consolidation or
sale of assets, as the case may be. The Company or such “surviving, resulting or transferee Person” shall, within thirty (30) days after the execution thereof, furnish or cause to be furnished to the Authority a true and complete copy of
each such assignment or sublease or documents of merger, consolidation or sale of assets, as the case may be, as actually executed. The Authority and the Holder shall have the right, at any time and from time to time, to notify any assignee or
sublessee of their rights of under this paragraph. 
  

 38 

 Section 9.2. Restrictions on Sale, Encumbrance, or Conveyance of the Project by the
Authority. Except pursuant to the Security Deed and except for any sale under threat of a taking by eminent domain or a sale pursuant to Article VI hereof, the Authority agrees that, during the Term, it shall not, except pursuant to or as
permitted by the Security Deed: (1) directly, indirectly, or beneficially sell, convey, or otherwise dispose of any part of its interest in the Project, (2) permit any part of the Project to become subject to any, lien, claim of title, encumbrance,
security interest, conditional sale contract, title retention arrangement, finance lease, or other charge of any kind, without the written consent of the Company and the Holder, and (3) assign, transfer, or hypothecate (other than pursuant to the
Bond Resolution and the Security Deed) any payment of rent (or analogous payment) then due or to accrue in the future under any lease of the Project, except that if the laws of the State at the time shall permit, nothing contained in this Section
shall prevent the consolidation of the Authority with, or merger of the Authority into, or transfer of the Project as an entirety to, any public body of the State whose property and income are not subject to taxation and which has authority to carry
on the business of owning and leasing the Project, provided, that upon any such consolidation, merger, or transfer, the due and punctual payment of the principal of, premium, if any, and interest on the Bond according to its tenor, and the due and
punctual performance and observance of all the agreements and conditions of this Lease, the Bond Resolution and the Security Deed to be kept and performed by the Authority, shall (unless assumed as a matter of law) be expressly assumed in writing by
the public body resulting from such consolidation or surviving such merger or to which the Project shall be transferred as an entirety. 
  
 Section 9.3. Restrictions on Encumbrance by the Company. The interest of the Company hereunder shall not be pledged or encumbered, without
the written consent of the Authority and of the Holder, which shall not be unreasonably withheld, provided that the Company may pledge its interest in this Lease to a commercial bank or other institutional lender in connection with the
Company’s normal business practices without violating such restriction, but until foreclosure (and then only upon satisfaction of the conditions contained herein) no such pledgee as such shall have any rights hereunder, and provided further,
that any proposed disposition of the Company’s interest by such pledgee shall be subject to the preceding provisions of this Section 9.3 and the other provisions of this Lease. 
  
 Section 9.4. Redemption of Bond. The Authority, at the written request of the Company at any time and if the
Bond is then callable or available for purchase, and if there are funds available therefor in the Project Restoration Fund or funds provided by the Company, shall forthwith take all steps that may be necessary to effect the redemption of all or part
of any then Bond, as may be specified by the Company, on the earliest date on which such redemption or defeasance may occur under such applicable provisions. 
  
 Section 9.5. Prepayment of Basic Rent. If the Company has exercised its purchase option provided for in Section 11.1, the Company shall have
the right to prepay all of the Basic Rent payable under Section 5.3(a) hereof prior to the closing of such purchase in any amount sufficient to retire the Bond on the earliest date on which the Bond may be redeemed under the Bond Resolution, and the
Authority agrees that it shall accept such prepayment of Basic Rent when the same are tendered by the Company. All Basic Rent so prepaid shall be applied to the retirement of the Bond. 
  

 39 

 Section 9.6. Reserved. 
  
 Section 9.7. Installation of Company’s Own Machinery and Equipment. The Company may from time to time, in
its sole discretion, install trade fixtures, machinery, equipment, furnishings, and other personal property at the Project. All such trade fixtures, machinery, equipment, furnishings, and other personal property shall not be a part of the Project
shall remain the sole property of the Company (or of any leasing company from whom the Company may be renting such items), and the Company may remove the same from the Project at any time, in its sole discretion and at its own expense, provided that
the Company repairs any damage to the Project caused by any such removal. The Company may create any mortgage, encumbrance, lien, or charge on any such trade fixtures, machinery, equipment, furnishings, and other personal property that is not a part
of the Project. The Authority shall not have any interest in and waives any lessor’s lien that it may have on any such trade fixtures, machinery, equipment, furnishings, or personal property so installed pursuant to this Section. 
  
 Section 9.8. Reference to the Bond Ineffective After such Bond is
Paid. Upon payment in full of a Bond (or provision for payment thereof having been made in accordance with the defeasance provisions of the Bond Resolution), all references in this Lease to that Bond and the Holder thereof shall be ineffective,
and the former Holder of such Bond shall not thereafter have any rights hereunder, saving and excepting those that shall have theretofore vested and any rights to indemnification under Section 8.5 hereof. For purposes of this Lease, a Bond shall be
deemed fully paid if it is defeased as provided in the Bond Resolution. 
  
 [End of Article IX] 
  

 40 

 ARTICLE X 
 EVENTS OF DEFAULT AND REMEDIES 
  
 Section 10.1. Events of Default Defined. The following shall be “Events of Default” under this Lease, and the terms “Event of Default” or “Default” shall mean, whenever they are used in this
Lease, any one or more of the following events: 
  
 (a) a failure of the Company to pay Basic Rent in the amounts and at the times required by Section 5.3(a) of this Lease provided, (1) that such failure to pay shall not constitute a “Default” or an “Event of Default”
unless continued for more than 5 days after receipt by the Company of written notice of same given by the Authority or the Holder; and (2) that the foregoing clause (1) shall be of no further force or effect once notices have been given with respect
to three (3) such failures to pay in any one 24 month period; or 
  
 (b) the failure of the Company to pay the amounts required to be paid under Section 5.3(b) of this Lease, at the times specified therein, and continuing for a period of thirty (30) days after the Company’s
receipt of written notice given by the Authority pursuant to Section 5.3(b), the Authority or any Holder (whichever is entitled to receive such payment); or 
  
 (c) In the case of the Company’s failure to observe, perform, or comply with any covenant, condition, or agreement in this Lease on
the part of the Company to be observed or performed, for a period of thirty (30) days after written notice from the Authority or any Holder specifying such breach or failure and requesting that it be remedied, unless the Authority and the Holder
shall agree in writing to an extension of such time prior to its expiration. In the case of any such breach or default which can be cured, but cannot be cured within such thirty (30) day period, it shall not constitute an Event of Default if
corrective action is instituted by the Company within the applicable thirty (30) day period and is diligently pursued until the breach or default is corrected; or 
  
 (d) Any breach, default, event of default or Event of Default by the Company under any of the other Company
Documents, in either case, which is not cured within thirty (30) days following notice from the Authority or any Holder specifying such breach or failure and requesting that it be remedied, unless both the Authority and the Holder shall agree in
writing to an extension of such time prior to its expiration. In the case of any such breach or default which can be cured, but cannot be cured within such thirty (30) day period, it shall not constitute an Event of Default if corrective action is
instituted by the Company within the applicable thirty (30) day period and diligently pursued until the breach or default is corrected; or 
  
 (e) The filing of a voluntary petition in Bankruptcy by the Company or the adjudication of the Company as Bankrupt pursuant to an
involuntary petition filed by a creditor of the Company. 
  
 Section 10.2. Remedies on Default. Whenever any Event of Default referred to in Section 10.1 hereof shall have happened and be subsisting, the Authority, or the Holder as 

  

 41 

 
assignee of the Authority, to the extent permitted by law, may take any one or more of the following remedial steps: 
  
 (a) take whatever action at law or in equity or under the
terms of this Lease may appear necessary or desirable to collect the rents and other amounts payable by the Company hereunder then due or thereafter to become due, or to enforce performance and observance of any obligation, agreement, or covenant of
the Company under this Lease; or 
  
 (b)
terminate, subject to the respective provisions concerning the priority and subordination of the Company’s option to purchase the Project that are set forth in Section 11.4, below, this Lease and recover, as and for liquidated and agreed final
damages for the Company’s default, all amounts that have theretofore become due plus an amount equal to all unpaid installments of Basic Rent, and if any statute or rule of law shall validly limit the amount of such liquidated final damages to
less than the amount agreed upon, the Authority shall be entitled to the maximum amount allowable under such statute or rule of law; no termination of this Lease pursuant to this Section shall relieve the Company from its indemnification obligations
pursuant to Section 8.5 hereof. 
  
 Any amounts of Basic Rent
collected, pursuant to action taken under this Section, shall be applied in payment of the Bond(s). Any amounts collected as Additional Rent shall be paid to the Person or Persons to whom such Additional Rent is due and owing hereunder. 

 
 Notwithstanding that this Lease (except for Unassigned Rights) is to be
assigned to the Holder, the Authority shall be entitled to enforce this Lease if any Event of Default relates to such Unassigned Rights or exposes the Authority, its assets (other than the Pledged Security) or its members, officers, employees or
agents to any liability. The Holder shall be entitled to enforce the provisions hereof that affect its interests hereunder. Notwithstanding the foregoing and notwithstanding any statutory, decisional, or other law to the contrary, in no event shall
the Authority have any right to terminate this Lease, to enter upon and otherwise to obtain possession of the Project, by reason of the occurrence of any Event of Default by the Company hereunder without the prior written consent of the Holder.

  
 Section 10.3. Remedies Not Exclusive. The
remedies herein expressly conferred upon the Authority and the Holder are intended to be in addition to other remedies existing at law or in equity or by statute. No delay or Omission to exercise any right or power accruing upon any Event of Default
shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority or the Holder to exercise
any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than such notice as may be herein expressly required hereby. 
  
 Section 10.4. Company to Pay Fees and Expenses. In the event the Company or the Authority should default under any of the provisions of this
Lease and the Authority or either Holder, on the one hand, or the Company, on the other; as appropriate, should employ attorneys, accountants, or other experts or incur other expenses for the collection of amounts due it hereunder or the enforcement
of performance or observance of any obligation or agreement on 
  

 42 

 the part of the Company or Authority, as appropriate, herein contained for its benefit, the Company on the one hand, and
the Authority, on the other hand, as appropriate, agrees that it shall on demand therefor pay to such Person the reasonable and actual fees of such attorneys, accountants, or other experts and such other expenses so incurred by the Authority or the
Holder, on the one hand, or the Company, on the other, as appropriate. Any attorneys’ fees required to be paid by the Company or Authority, as appropriate, under this Lease shall include attorneys’ and paralegals’ fees through all
proceedings, including, but not limited to, negotiations, administrative hearings, trials, and appeals, court costs and reimbursable expenses of such attorneys. The Authority, the Company and the Holder shall each be entitled to enforce its
respective rights under this Section, and the Authority’s rights under this Section shall be one of the Unassigned Rights. 
  
 Section 10.5. Waiver of Events of Default. The Authority may waive any Event of Default hereunder and its consequences or rescind any
declaration of acceleration of payments of the rents and other amounts due hereunder provided that the Authority shall not waive any Event of Default (other than Events of Default relating to the Unassigned Rights) without the prior written consent
of the Holder. The Holder may waive any Event of Default hereunder other than Events of Default relating to the Unassigned Rights, which may be waived only by the Authority. In case of any such waiver or rescission, or in case any proceeding taken
by the Authority or the Holder on account of any such Event of Default shall be discontinued or abandoned or determined adversely to the Authority or the Holder, then and in every such case the Authority, the Holder and the Company shall be restored
to their former positions and rights hereunder, but no such waiver or rescission shall extend to or affect any subsequent or other Event of Default or impair or exhaust any right, power, or remedy consequent thereon. 
  
 [End of Article X] 
  

 43 

 ARTICLE XI 
 PURCHASE OPTION IN FAVOR OF COMPANY 
  
 Section 11.1. Option to Purchase Project. The Company shall have, and is hereby granted, the option to purchase the Project for a purchase price which shall be the sum of: (i) $2,000,000 on the third
anniversary of the Commencement Date or $1,500,000 at the end of the initial Term or the renewal Term; and (ii) all amounts, if any, then due on the date of such closing to the Authority or to the Holder as Additional Rent or for indemnification
under this Lease and other Company Documents (which amounts shall be paid directly to the person to whom such amounts are owed); and (iv) those closing costs which are normally payable by the purchaser of real property in Georgia. If the Bond is
outstanding, the Authority shall apply the proceeds of sale and other proceeds of the Authority, if needed to retire the Bond and to cause the cancellation of the Bond Security Deed, and the Company shall not be required to pay any additional amount
in addition to the purchase price to retire the Bond or to cause the cancellation of the Bond Security Deed. 
  
 The option granted herein, if exercised, shall be exercised not less 180 days prior to the expiration of the initial Term, or if this Lease is renewed,
such option shall be exercised not less 180 days prior to (i) the third anniversary of the Commencement Date, (ii) the expiration of the initial Term or (iii) the expiration of the renewal Term, as applicable, provided, that if such option is being
exercised as an alternative to the Company’s curing an Event of Default that occurred for reasons beyond the Company’s reasonable control (which circumstances shall be recited in the Company’s notice of exercise), then such notice of
exercise may be given as late as 60 days prior to (i) the third anniversary of the Commencement Date, (ii) the expiration of the initial Term or (iii) the expiration of the renewal Term, as applicable. To exercise such option, the Company or its
assignee shall give written notice of exercise to the Authority and to the Holder. The purchase of the Project shall be closed on a date specified by the Company, which shall be not sooner than thirty (30) days from the date of such notice or later
than to the expiration date of the initial Term or current renewal Term, as applicable. The Company shall be under no obligation to exercise the option granted in this Section 11.1. If no Event of Default is in existence at the time the option is
exercised, the Company may assign in writing its option to an Affiliate; the Company of such Affiliate shall provide the Authority with a copy of any such assignment at the time the option is exercised. 
  
 Section 11.2. Conveyance on Exercise of Option to Purchase. At
the closing of any purchase pursuant to the exercise of the option to purchase granted herein, the Authority shall, upon payment of the purchase price by the Company, deliver to the Company a limited warranty deed conveying to the Company good title
to the Project, as the Project then exists, subject to the following: (i) Permitted Encumbrances, but excluding this Lease, the Note Security Deed and the Bond Security Deed, (ii) those liens and encumbrances (other than the Financing Documents)
created by the Company or to the creation or suffering of which the Company consented, and (iii) those liens and encumbrances resulting from the failure of the Company to perform or observe any of the agreements on its part contained in this Lease.

  
 Section 11.3. Public Purpose of Option to
Purchase. The Authority and the Company acknowledge that the option to purchase the Project granted in this Article constitutes a material inducement to the Company to locate a manufacturing facility in the County and thereby create 

 

 44 

 employment opportunities in the County and that in granting such option, the Authority is considering the entire
transaction as a whole, including the promotion and expansion for the public good and welfare industry and trade within the County and the reduction of unemployment, and the fact that, as a result of a sale of the Project as a result of the exercise
of the option, all indebtedness with respect to the Project shall be paid in full. 
  
 Section 11.4. Priority Position of Option. Notwithstanding any other provision hereof or of the Bond Resolution, the purchase option granted to the Company in Section 11.1 may be exercised whether or not
an Event of Default hereunder has occurred and is continuing or whether or not an Event of Default under the Bond Resolution has occurred and is continuing, and this Lease and the option granted in Section 11.1 shall have priority over the Security
Deeds and shall not be terminated by foreclosure or pursuant to the power of sale in the Security Deeds. In the event the Company exercises the option, the Company agrees that it, and any person or entity to whom it may thereafter sell or lease the
Project shall meet the employment goals set forth in Section 12.1 hereof, and if the Company, or any successor in title or lessee shall fail to meet such employment goals, the Company shall make the supplemental payments required by Section 12.1 of
this lease, and such obligation shall survive the termination of this Lease, if the purchase option is exercised. 
  
 [End of Article XI] 
  

 45 

 ARTICLE XII 
 MISCELLANEOUS 
  
 Section 12.1. Supplemental Payments for Failure to Meet Employment Goals. The Company has represented to the Authority that commencing in the calendar year 2003 and thereafter the operation of the Project will provide at least
120 full-time jobs. The representations of the Company as to job creation are a material and substantial part of the consideration for the Authority’s leasing of the Project to the Company hereunder and in granting the Company the option to
purchase the Project at a highly favorable price. The failure of the Company (or if it exercises its option to purchase the Project, the failure of the Company, any successor in title or any lessee of the Project, whichever shall be operating the
Project) to realize such employment levels shall not constitute an Event of Default hereunder, but shall give rise to an obligation on the part of the Company to make the supplemental payments provided for in this Section 12.1. For purposes hereof,
a full-time employee is an employee of the Company (or if the Company exercises its option to purchase the Project, a full-time employee shall include an employee of the Company, of any such successor in title or any lessee of the Company or lessee
of a successor in title), exclusive of employees that are leased from an employee leasing agency, having at least 1,800 paid hours per year, including paid hours actually worked, paid holidays and paid vacation days constituting the equivalent of a
full-time employee. Hours of temporary and part-time employees (exclusive of employees that are leased from an employee leasing agency) may be aggregated and divided by 1,800 hours to calculate the number of equivalent full-time employees for such
purpose. 
  
 If in any calendar year after the year 2003 the
average employment at the Project, whether by the Company (or if the Company exercises its option to purchase the Project by the Company, by any such successor in title or by any lessee of the Company or lessee of a successor in title) does not
equal or exceed 120 full-time jobs, the Company, not later than 30 days following the end of such calendar year, shall pay to the Authority an “employment short-fall payment” calculated as follows: the sum of $20,000 plus an additional
amount determined by subtracting the actual numbers of full-time jobs at the Project (if less than 100) from 100 jobs and multiplying the remainder by $1,000. For example, if the actual number of full-time jobs in such year was 90, the payment would
be $30,000 ($20,000 plus $10,000). 
  
 In the event this Lease
expires and the option to purchase the Project is not exercised, payments hereunder shall be made only with respect to years (and parts of years) included in the Term of this Lease, and if the Lease terminates prior to the end of a calendar year,
the calculation for such partial year shall be based on the short period commencing on January 1 of the year of expiration and ending on the date of termination, and the 1,800 hours requirement for such year shall be shall be prorated based on the
number of calendar days during the Term in such year to the total number of days in such calendar year. In such case, the payment, if any, for such partial year shall be paid within 30 days of expiration of the Term hereof. 
  
 If the Company exercises its option to purchase the Project: (i) the year in
which the Company purchases the Project shall not be subject to proration, as aforesaid, and the full calendar year shall be used for purposes of such calculation; (ii) employment by the Company before such expiration and employment by the Company
(and by any such successor in title or by any lessee of the Company or lessee of a successor in title after such expiration) shall be 
  

 46 

 aggregated; (iii) in any year employment by the Company and employment by any such successor in title or by any lessee of
the Company or lessee of a successor in shall be aggregated; and (iv) the last year for which any payments shall be payable under this Section is the calendar year 2013, which shall be payable not later than January 30, 2014. 
  
 For purposes of this Section, the full-time employment at the Project shall
be deemed to be zero unless the Company provides to the Authority payroll records of the Company and/or payroll records of any such successor in title or by any lessee of the Company or lessee of a successor in title that establish the number of
full-time employees at the Project. 
  
 The provisions of this
Section 12.1 shall survive the termination of this Lease. 
  
 Section 12.2. Notices. Any request, demand, authorization, direction, notice, consent, or other document provided or permitted by this Lease to be made upon, given or furnished to, or filed with, the Authority, the Company or
the initial Holder as set forth below shall be sufficient for every purpose hereunder if in writing and (except as otherwise provided in this Lease) either (i) delivered personally, by hand delivery, courier or express company, to the party or, if
such party is not an individual, to an officer or other legal representative of the party to whom the same is directed, or (ii) mailed by registered or certified mail, return receipt requested, postage prepaid, or (iii) sent by fax, as follows.

  

	 To the Authority:
	 	 Joint Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas Counties
 P.O. Box 487
 Moultrie, GA 31776
 Attn: Darrell Moore
 Fax: (229) 890-2638

		
	 With a copy to:
	 	 Moultrie Colquitt County Development Authority
 P.O. Box 487
 Moultrie, GA 31776
 Attn: Darrell
Moore
 Fax: (229) 890-2638

		
	 To the Company
	 	 Farmland National Beef Company
 10100 N.
Executive Hills Boulevard, Suite 400
 Kansas City, Missouri 64153
 Attn: Bill Gandy, Assistant Vice President
 Fax: (816) 891-5919

		
	 With a copy to:
	 	 Scott Smith
 2690 Telemark
Drive
 Park City, UT 84061
 Fax: (435)
649-5675

  

 47 

	To the Purchaser:	 	 American Banking Company
 225 S. Main
Street
 P.O. Box 2529
 Moultrie, Georgia 31768
 Attn: Ronnie Marchant, President
 Fax: (229) 985-2828

  
 Any person designated
in this Section 12.2 may, by notice given to each of the others, designate any additional or different addresses to which subsequent notices, certificates, or other communications shall be sent. 
  
 Section 12.3. Recording. This Lease, or a “short form
lease” or “memorandum of lease” giving appropriate notice hereof, may be recorded in all offices as may at the time be provided by law as the proper place for recordation. 
  
 Section 12.4. Construction and Binding Effect. This Lease constitutes the entire agreement of the parties
concerning the subject matter hereof and supersedes any prior agreements with respect thereto. This Lease shall inure to the benefit of and shall be binding upon the Authority, the Company, and their respective successors and assigns subject,
however, to the limitations contained in Sections 8.3, 9.1, and 9.2 hereof. 
  
 Section 12.5. Severability. In the event any provision of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof. 
  
 Section 12.6.
Immunity of Members, Officers, and Employees of Authority. No recourse shall be had for the enforcement of any obligation, covenant, promise, or agreement of the Authority contained in this Lease or for any claim based hereon or otherwise
in respect hereof or upon any obligation, covenant, promise, or agreement of the Authority contained in the Bond Resolution against any director, member, officer, or employee, as such, in his individual capacity, past, present, or future, of the
Authority, or any successor Person, whether by virtue of any constitutional provision, statute, or rule of law, or by the enforcement of any assessment or penalty or otherwise, it being expressly agreed and understood that this Lease is solely a
corporate obligation of the Authority and that no personal liability whatsoever shall attach to, or be incurred by, any director, member, officer, or employee, as such, past, present, or future, of the Authority, or of any successor Person, either
directly or through the Authority, or any successor Person, under or by reason of any of the obligations, covenants, promises, or agreements entered into between the Authority and the Company whether contained in this Lease or in any instrument
supplemental hereto, and that all personal liability of that character against every such director, member, officer, and employee of the Authority or any such successor Person is, by the execution of this Lease and as a condition of and as part of
the consideration for the execution of this Lease, expressly waived and released by the Company. The immunity of directors, members, officers, and employees of the Authority under the provisions contained in this Section shall survive the completion
of the Project and the termination of this Lease. 
  
 Section
12.7. Amendments, Changes, and Modifications. This Lease may not be amended, modified, altered, or terminated, except as provided in the Bond Resolution. 
  

 48 

 Section 12.8. Execution of Counterparts. This Lease may be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 
  
 Section 12.9. Law Governing Construction of this Lease. This Lease is prepared and entered into with the intention that the laws of the
State of Georgia, exclusive of such state’s rules governing choice of law, shall govern its construction. 
  
 Section 12.10. Covenants Run with Project. The covenants, agreements, and conditions herein contained shall run with the Project hereby
leased and shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors and assigns. 
  
 Section 12.11. Subordination to Security Deed. This Lease and the rights and privileges hereunder of the Company are specifically made
subject and subordinate to the rights and privileges of the Holder, as to be set forth in the Security Deed. 
  
 Section 12.12. Net Lease. This Lease shall be deemed and construed to be a “triple net lease,” and the Company shall pay
absolutely net during the Term the Basic Rent, Additional Rent, taxes (or payments in lieu of taxes), insurance premiums, costs of operation and maintenance and all other payments required hereunder, free of any deductions, without abatement,
diminution, or set-off other than those herein expressly provided. 
  
 Section 12.13. Surrender of Project. Except as otherwise provided in this Lease, at the expiration or sooner termination of the Term, the Company agrees to surrender possession of the Project peaceably and promptly to the
Authority in as good condition as at the commencement of the Term, excepting only ordinary wear, tear, and obsolescence, and damage by fire or other casualty or a taking by eminent domain which the Company is not obligated by this Lease to repair.

  
 Section 12.14. Immunity of Directors, Officers, and
Employees of Company. No recourse shall be had for the enforcement of any obligation, covenant, promise, or agreement of the Company contained in this Lease or for any claim based hereon or otherwise in respect hereof, against any director,
officer, or employee of the Company or any Permitted Successor, in his individual capacity, past, present, or future, of the Authority, whether by virtue of any constitutional provision, statute, or rule of law, or by the enforcement of any
assessment or penalty or otherwise, it being expressly agreed and understood that this Lease is solely a corporate obligation of the Company and that no personal liability whatsoever shall attach to, or be incurred by, any such director, officer, or
employee, either directly or through the Company, or any Permitted Successor, under or by reason of any of the obligations, covenants, promises, or agreements contained in this Lease or to be implied herefrom, and that all personal liability of that
character against every such director, officer, and employee is, by the execution of this Lease and as a condition of and as part of the consideration for the execution of this Lease, expressly waived and released. The immunity of directors,
officers, and employees of the Company under the provisions contained in this Section shall survive the termination of this Lease. 
  

 49 

 Section 12.15. Payments Due on Other than Business Days. Whenever a date upon which a
payment is to be made under this Lease falls on a date which is not a Business Day, such payment may be made on the next succeeding Business Day without interest for the intervening period. 
  
 Section 12.16. Holders are Third Party Beneficiaries. Each
person who from time to time is the Holder shall be deemed to be and is a third party beneficiary of the representations, covenants, and agreements of the Company in favor of the Authority herein contained (except for covenants and agreements
pertaining to the Unassigned Rights). 
  
 Section 12.17.
Failure to Acquire Land and Building. This Lease is being executed and delivered prior to the acquisition by the Authority of the Leased Land and Existing Improvements. In the event the Authority fails to acquire title to the Leased Land
and Existing Improvements by March 1, 2001, then this Lease shall terminate. The Company shall have no right of occupancy and no other rights with respect to the Project (other than its executory rights under this Lease) unless the Authority does
acquire title, and does so by March 1, 2001. 
  
 [End of Article
XII] 
  

 50 

 IN WITNESS WHEREOF, the Authority has executed this Lease by causing its name to be hereunto
subscribed by its Chairman and by causing the official seal of the Authority to be impressed hereon and attested by its Secretary; and the Company has executed this Lease by causing its name to be hereunto subscribed by its partners, by their
respective duly authorized officer, all being done as of the day and year first above written. 
  

	ATTEST:	 	 	 	JOINT DEVELOPMENT AUTHORITY OF BROOKS, COLQUITT, GRADY, MITCHELL AND THOMAS COUNTIES
				
	 [ILLEGIBLE]

 Secretary
 (AUTHORITY SEAL)
	 	 	 	BY:	 	 /s/    Donald P. Sims

 NAME: Donald P. Sims
 TITLE: Chairman
 DATE: January 16, 2001

	 	 	 	 	 	 	 	 

  
 As to Joint
Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas Counties, signed and sealed in the presence of- 
  

	 [ILLEGIBLE]

 Unofficial Witness
	 	 /s/    Linda T. Gay

 Notary Public
 My Commission
Expires-9/26/04
 (NOTARY SEAL)

  

 51 

	 FARMLAND NATIONAL BEEF COMPANY, by its General Partner
  
 USPBCo, L.L.C.

		
	 BY:
	 	 /s/    Steven Hunt

	 	 	 SIGNATURE
  
 NAME: Steven Hunt
 TITLE: Manager
 DATE: 1/12/01

  

 52 

	JOINT DEVELOPMENT AUTHORITY OF BROOKS, COLQUITT, GRADY, MITCHELL, AND THOMAS COUNTIES
		
	 By:
	 	 /s/    Donald P. Sims

	 	 	 Name: Donald P. Sims
 Title:
Chairman

  

 53 

 EXHIBIT “A” 
  
 All that tract or parcel of land situate, lying and being in Land Lots 244 and 245 in the Eighth (8th) Land District in Colquitt County,
Georgia, being 19.17 acres as shown by that plat dated January 9, 2001, designated “Plat of Survey for Joint Development Authority of Brooks, Colquitt, Grady, Mitchell and Thomas Counties, A Statutory Authority,” and recorded in Plat Book
35, Page 21, Colquitt County Records; the property being more specifically described as follows: 
  
 To locate the point of beginning commence at the point where the South margin of the right of way of the West By-Pass intersects the West margin of the right of way of the Southern Railroad (this point being 390.86
feet from the point where the South margin of the right of way of the West By-Pass intersects the West margin of Georgia State Highway No. 35 and U.S. Highway 319), run thence South 04 degrees 01 minute 09 seconds East along the West margin of the
right of way of the Southern Railroad a distance of 764.89 feet to a point; continue thence along the West margin of the right of way of the Southern Railroad a chord bearing of South 04 degrees 14 minutes 53 seconds East a chord distance of 44.36
feet, an arc length distance of 44.36 feet to a point; run thence South 77 degrees 06 minutes 35 seconds West a distance of 319.81 feet to a point; run thence South 86 degrees 17 minutes 12 seconds West a distance of 571.42 feet to a point; run
thence North 15 degrees 53 minutes 04 seconds West a distance of 883.76 feet to a point on the South margin of the right of way of the West By-Pass; run thence North 86 degrees 28 minutes 57 seconds East along the South margin of the right of way of
the West By-Pass a distance of 1,068.97 feet to a point, this being the point of beginning. 
  

 54 

 EXHIBIT B 
  

DESCRIPTION OF LEASED IMPROVEMENTS 
  
 An existing food processing building containing approximately 90,000 square feet and related improvements to land and any fixtures and equipment purchased
by the Authority with the Leased Land and other Existing Improvements that are located in the Existing Improvements and renovations thereto. 
  

 55 

 BUILDING 
  
 ITEMS TO BE REMOVED 
  

	1.	 	Mezzanine between Columns 1A-1B & 2A-2B (Complete after A2 & A3) 

 Floor is 24’ X 24’ with concrete “T” beams and concrete topping (see detail B/19). Misc. block walls for rooms above 

	2.	 	Wall between Columns 2A-2B 

 8” concrete
block wall 24’ X 21’9” tall with 4” insulation and 3/4” plaster on south side (see drawing 3007) 

	3.	 	Wall between Columns 1B-4B 

 8” concrete
block wall 72’ X 21’9” tall with 4” insulation and 3/4” plaster on south side (see drawing 3007) 

	4.	 	Box Strapping Mezzanine 

 Galvanized steel
frame and floor plate, with 3” panel walls above. 

	5.	 	West Wall of Hog Cutting Room (F-06) 

 6” concrete block wall with 4” insulation and 3/4” plaster on each side. Wall extends from floor through ceiling. It must be supported at the mezzanine level if mezzanine is to be left intact. (see wall section A/20)

	6.	 	Office Room (F-05) 

 8” concrete block
wall 30’ X 8’ high with 4” insulation and 3/4” plaster on west and north sides. Top is 14” concrete “T” beams with topping and 4” insulation. (see detail 13/28A) 

	7.	 	Edible Rendering Room 

 FRP panels on 4”
aluminum studs with fiberglass batt insulation. Wall is 50’ft long X 28’ high and was installed after building was completed. 

	8.	 	Wall between Columns H6-H7 

 8” concrete
block wall 24’ X 14’ tall with 4” insulation and 3/4” plaster on north side approx. 6’4” (see drawing 3008 and section D/l6) 

	9.	 	Wall between Columns F7-F10 

 8”
Concrete block wall 72’ X 19’ tall (see section C/20) 

	10.	 	Wall between Columns C7-C10 

 8”
concrete wall 72’ X 19’ tall with 5” insulation and 3⁄4” plaster on south side (see section E/l 9) 

	11.	 	Restrooms and Shop area in Dressing Floor (F-14) 

 4”, 6” and 8” concrete block walls 88’ X 14’ tall (see drawing 3008 and section D/16) 

	12.	 	All unnecessary walls in the unused area of the building 

 Please specify 

	13.	 	Existing wall panels to be removed and replaced with sanitary finish walls meeting USDA requirements 

  
  
 ITEMS TO BE ADDED 
  

	1.	 	Wall on Column Line 2, in Supply Storage Room (F-13) 

 Wall is approx. 60’ long X 28’ high. (specify material) 
  

 56 

	2.	 	Replace Man door & Window in Office Room (F-5) with Forklift Door 

 Remove man pass door and window and install 6’ X 8’ sliding door (specify material) including lintel in 8” concrete block wall section 12’-4” long. 

	3.	 	Forklift Door in North Wail on the West side of the Supply Storage Room (F-13) 

 Install 6’ X 8’ sliding door (specify material) including lintel in 6” concrete block wall with 4” insulation and 3⁄4” plaster on north side. 

	4.	 	Wall from Columns C3-C4 

 Install 24’ long X
21’-9” high wall section consisting of 4” insulated panels with FRP finish both sides and 6” X16” curbs on both sides of wall. Curbs will have a 45 degree bevel on top, above the 16” height. 

	5.	 	Wall from Columns C3-G3 

 Install 96’ long X
21’-9” high wall section consisting of 4” insulated panels with FRP finish both sides and 6” X 16” curbs on both sides of wall. Curbs will have a 45 degree bevel on top, above the 16” height. 

	6.	 	Forklift Door South of Column C3 

 Install 6’ X
8” sliding door (specify material) in wall B5 with 6” pipe bollards both sides of door 

	7.	 	Forklift Door South of Column F3 

 Install 6’ X
8’ sliding door (specify material) in wall B5 with 6” pope bollards both sides of door 

	8.	 	Wall from Columns H11-J11 

 Install 16’ long X
28’ high wall section (specify material). Will there be a door? 

	9.	 	Wall from Columns G7-J7 

 Install 12’ long X
14’ high wall section (specify material) between G7 and H7 and a 24’ long X 28’ high wall section (specify material) between H7 and J7. Specify door shown in this section. 

	10.	 	2 Loadout Doors between Columns J9-J10 

 Install (2)
8’ X 9’ vertical doors (specify material). Install vertical storing hydraulic dock levelers with dock cushions and dock locks. 

	11.	 	1 Loadout Door East of Column JI0 

 Install 8’
X 9’ vertical door (specify material). Install vertical storing hydraulic dock leveler with dock cushions and dock lock. 

	12.	 	Wall on Box Make-up Mezzanine in area of Supply Storage Room (F-13) to separate theRefrigerated Room from the Non-refrigerated mezzanine. 

 Install 48’ long X 13’ high wall section (specify material) between J1 and J3. 

	13.	 	Door on Box Make-up Mezzanine for receiving boxes from Combo Make-up Room (F-03). Preferably West of the Existing door on Ground Level. 

 Install 6’ X 8’ sliding door (specify material) including lintel in 6” concrete block wall. 

	14.	 	Sanitary Flooring in Production Areas. 

 Example:
Permanent Epoxy Products (800)905-1110 
 What about product holding cooler? 

	15.	 	All Surfaces in Production Areas must be of Sanitary Design 

 Will we replace existing FRP 

	16.	 	Building MUST meet U.S.D.A. requirements. 

  

 57 

	17.	 	Roof NEEDS Replaced 

	18.	 	Adequate drainage in all production areas. 

 Floors
will have to be re-sloped in present dressing floor. 

	19.	 	All unused area of the building to be suitable for dry storage. 

 Please specify unsuitable conditions. 
  
 (ALL MODIFICATIONS TO THE BUILDING NEED TO BE INSPECTED AND APPROVED BY A LICENSED STRUCTURAL ENGINEER PRIOR TO ANY WORK BEING DONE.) 
  
 MECHANICAL REQUIREMENTS 
  
 REFRIGERATION: 
 800 tons of new refrigeration equipment will
be required. 
 This would include new units, piping, and control banks, compressors, condensers, accumulator, receiver, piping and insulation
throughout the facility. 
 (We have had past experience that it is best to completely replace the refrigeration rather than blend old and new
equipment.) 
  
 HVAC: 
 An adequate hvac will be required to control condensation during cleanup. This could be incorporated through the use of King units in the production
areas. This type of unit is a combination cooling and heating rooftop mounted unit that uses some outside makeup air. 
  
 CLEANUP SYSTEM: 
 A central high-pressure low volume cleanup
system will be required to clean all portions of the facility. 
  
 ELECTRICAL:

 All distribution and mcc will be Square D. 
 Twin 2500kva transformers feeding a 3000amp main tie main configuration will be required. 
 This distribution
center will have adequate disconnect switches to feed the motor control centers. 
 The MCC for the production equipment will be located on
the mezzanine above the production floor. The MCC for the refrigeration equipment will be located in the compressor room. 
 Candle power in
all production areas must be 100. Candle power in non production areas must be 50. 
 All conduit in production areas must be Rob Roy.

  
 OFFICE IMPROVEMENTS 
  

	1.	 	Clean mold and mildew from exterior of the building. 

	2.	 	Paint the exterior of the building. 

  

 58

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