Document:

Unassociated Document

    

    

    FORM OF
WAIVER

    

    In
consideration for the benefits I will receive as a result of my employer’s
participation in the United States Department of the Treasury’s TARP Capital
Purchase Program, I hereby voluntarily waive any claim against the United States
or any state or territory thereof or my employer or any of its directors,
officers, employees and agents for any changes to my compensation or benefits
that are required in order to comply with Section 111 of the Emergency Economic
Stabilization Act of 2008, as amended (“EESA”), and rules,
regulations, guidance or other requirements issued thereunder (collectively, the
“EESA
Restrictions”).

    

    I
acknowledge that the EESA Restrictions may require modification of the
employment, compensation, bonus, incentive, severance, retention and other
benefit plans, arrangements, policies and agreements (including so-called
“golden parachute” agreements), whether or not in writing, that I have with my
employer or in which I participate as they relate to the period the United
States holds any equity or debt securities of my employer acquired through the
TARP Capital Purchase Program and I hereby consent to all such
modifications.  I further acknowledge and agree that if my employer
notifies me in writing that I have received payments in violation of the EESA
Restrictions, I shall repay the aggregate amount of such payments to my employer
no later than fifteen business days following my receipt of such
notice.

    

    This
waiver includes all claims I may have under the laws of the United States or any
other jurisdiction related to the requirements imposed by the EESA Restrictions
(including without limitation, any claim for any compensation or other payments
or benefits I would otherwise receive absent the EESA Restrictions, any
challenge to the process by which the EESA Restrictions were adopted and any
tort or constitutional claim about the effect of the foregoing on my employment
relationship) and I hereby agree that I will not at any time initiate, or cause
or permit to be initiated on my behalf, any such claim against the United
States, my employer or its directors, officers, employees or agents in or before
any local, state, federal or other agency, court or body.

    

    In
witness whereof, I execute this waiver on my own behalf, thereby communicating
my acceptance and acknowledgement to the provisions herein.

    

    

     

    
      	 
      	
              Respectfully,

               

              ____________________________

              Name:

              Title:

              Date:Exhibit 10.1

 

 

 

 

NINTH AMENDMENT TO CREDIT AGREEMENT

 

This Ninth
Amendment to Credit Agreement (“Amendment”) is made as of May 14, 2009,
by and among U.S. PREMIUM BEEF, LLC, a Delaware limited liability
company (together with its successors and assigns, the “Borrower”), and COBANK,
ACB, an agricultural credit bank (“CoBank”), as Agent (in such capacity,
the “Agent”) and as the sole Syndication Party as of the date of this
Amendment.

 

RECITAL

 

This Amendment
is made with respect to the Credit Agreement (Term Loan) dated as of November
25, 1997 (as amended, modified, supplemented, renewed or restated from time to
time, the “Agreement”).  Capitalized terms that are not defined in this
Amendment shall have the meanings assigned to them in the Agreement.  The parties
desire to re-advance amounts of the Loan from time to time up to $13,000,000 in
the aggregate outstanding and to otherwise amend certain provisions of the
Agreement.

 

NOW, THEREFORE,
in consideration of the foregoing and of the terms and conditions contained in
this Amendment, and of any loans or extensions of credit or other financial
accommodations heretofore, now or hereafter made to or for the benefit of
Borrower, the parties agree as follows:

 

            1.         Borrower
is presently indebted under the Loan in the amount $2,316,763.34 (said existing
indebtedness may sometimes be referred to herein as “Tranche A” of the
Loan).  All terms of the Agreement relating to Tranche A of the Loan, including
but not limited to the accrual and repayment of interest and the repayment of
principal shall not be affected by this Amendment.  

 

2.         Subject
to the conditions set forth in Section 9 hereof and Sections 11.1.12, 11.1.23,
11.2.1, 11.2.9 and 11.2.10 and 11.3 of the Agreement, but otherwise the terms
of the Agreement to the contrary notwithstanding, the Syndication Parties
agree, each as to their Syndication Share to, in addition to Tranche A of the
Loan, to re-advance amounts of the Loan previously repaid, from time to time
through the Maturity Date, up to the initial amount of $13,000,000, reducing to
$10,000,000 on May 31, 2010, in the aggregate outstanding (said re-advances may
sometimes be referred to herein as “Tranche B” of the Loan).  Amounts
re-advanced and repaid under Tranche B of the Loan may be again re-advanced,
provided that at no time shall the aggregate amount outstanding under Tranche B
of the Loan exceed in
the initial amount of $13,000,000, reducing to $10,000,000 on May
31, 2010.  As of the date of this Amendment the Syndication Share of CoBank is
100%.  Amounts re-advanced and repaid under Tranche B of the Loan may be used
by Borrower for working capital and for general corporate purposes. 
Notwithstanding the foregoing, during at least 30 consecutive days during each
calendar year the amount outstanding under Tranche B of the Loan shall be $0. 
The Aggregate Commitment shall be in the initial amount of $15,316,763.34,
reducing to $11,287,090.78 on May 31, 2010.  The amount set forth in the Note
payable to CoBank shall be deemed to read $15,316,763.34 and the Agreement (as
amended by this Amendment) shall govern and control over any contrary terms of
the Note.

 

 

 

 

 

 

 

 

 

3.         Terms
of the Agreement to the contrary notwithstanding, as to Tranche B of the Loan
the Maturity Date shall be July 1, 2011.  If not due sooner by reason of acceleration,
the principal amount outstanding under Tranche B of the Loan together with any
unpaid interest accrued thereon, shall be due and payable on said Maturity
Date.

 

4.         Terms
of the Agreement to the contrary notwithstanding, as to Tranche B of the Loan,
interest shall accrue and be payable as follows:

 

(a)        Advances
may be maintained as Base Rate Advances or LIBOR Rate Advances according to the
same terms and procedures as are set forth in the Sixth Amended and Restated
Credit Agreement made as of the 25th day of July, 2007, as amended by the First
and Second Amendments thereto (but not as may be subsequently amended unless
agreed by the appropriate parties to this Agreement) by and among National Beef
Packing Company, LLC, a Delaware limited liability company (“National
Beef”), and the other financial institutions signatory thereto (the “National
Beef Agreement”), except (a) each request for an advance shall be in a
minimum amount of $25,000 and an integral multiple of $25,000 and (b) any
request for a LIBOR Rate Advance must be given by Borrower no later than 11:00
a.m. mountain time on the Business Day prior to the date of any proposed LIBOR
Rate Advance;

 

(b)        For
purposes of determining Applicable Margin (but for no other purpose), Borrowing
Base Availability shall have the meaning assigned to it in the National Beef
Agreement;

 

(c)        Applicable
Margin shall have the meaning assigned to it in the National Beef Agreement for
Line of Credit Loans to National Beef with reference to the Borrowing Base
Availability of National Beef, plus, in each case one quarter of one percent
(0.25%);

            

(d)        Interest
on Advances that are maintained as Base Rate Advances shall be accrued and
shall be payable in the same manner and according to the same terms as set
forth for Base Rate Advances under the National Beef Agreement (making
reference to the Base Rate as defined in the National Beef Agreement and the
Applicable Margin), except (a) it shall be calculated with the interest rate
being converted to a daily rate on the basis of a year consisting of 360 days
and applied based on the actual number of days the Advance is outstanding, and
(b) shall be payable monthly in arrears on the twentieth day of the following
month;

            

(e)        Interest
on Advances that are maintained as LIBOR Rate Advances shall be accrued and
shall be payable in the same manner and according to the same terms as set
forth for LIBOR Rate Advances under the National Beef Agreement (making
reference to the LIBOR Rate as defined in the National Beef Agreement, Interest
Periods as defined in the National Beef Agreement, and the Applicable Margin);
and

 

 

            

	
  2

  

 

 

 

 

 

 

(f)         After
the occurrence of an Event Default and for so long as such Event of Default is
continuing, the Agent may notify Borrower that any and all amounts due shall bear
interest, from the date of such notice by the Agent and for so long as such Event
of Default continues, payable on demand, at a rate per annum (the “Default
Rate”) equal to the lesser of (i) with respect to a Base Rate Advance, the
sum of two percent (2.0%) per annum plus the Base Rate (as defined in the National
Beef Agreement) in effect from time to time plus the Applicable Margin; or (ii)
with respect to a LIBOR Rate Advance, during the Interest Period (as defined in
the National Beef Agreement) in which the Event of Default has occurred, the
sum of two percent (2.0%) per annum plus the LIBOR Rate (as defined in the National
Beef Agreement) then in effect for such LIBOR Rate Advance plus the Applicable
Margin, and in Interest Periods (as defined in the National Beef Agreement) subsequent
to that in which the Event of Default occurred, the Default Rate applicable to
a Base Rate Advance as calculated under (i) hereof.

 

5.         Terms
of the Agreement to the contrary notwithstanding, Borrower agrees to pay to the
Agent for distribution to the Syndication Parties (based on their applicable respective
Syndication Shares) a quarterly non-use fee on the daily average unused amount
of Tranche B of the Loan at the rate per annum of one quarter of one percent
(0.25%) (the “Non-Use Fee”).  The Non-Use Fee for each calendar quarter
shall be due and payable in arrears on the first Business Day of each January,
April, July and October hereafter through the Maturity Date applicable to the
Line of Credit Loans.  A pro-rated non-use fee shall be due and payable on the
first Business Day of the quarter following the date of this Amendment and on
the Maturity Date applicable to the Tranche B of the Loan.  The Non-Use Fee
shall be earned as it accrues.

 

6.         Terms
of the Agreement to the contrary notwithstanding, Working Capital and Net Worth
shall be calculated on a consolidated basis.

 

7.         Section
12.2.3 of
the Agreement is hereby amended in its entirety to read as follows:

 

“12.2.3            Notice
of Suit, Adverse Change, ERISA Event or Default.  The Borrower shall, as
soon as possible, and in any event within ten (10) Business Days after the
Borrower learns of the following, give written notice to the Agent of (a) any
proceeding being instituted or threatened to be instituted by or against either
the Borrower or any subsidiary of Borrower in any federal, state, local or
foreign court or before any commission or other regulatory body (federal,
state, local or foreign) for which claimed damages exceed $2,000,000, (b) any
material adverse change in the business, assets or condition, financial or
otherwise, of either the Borrower or any subsidiary of Borrower, (c) any ERISA
Event and (d) the occurrence of any Potential Default or Event of Default. 
Within three (3) Business Days after the Agent’s receipt of such written
notice, the Agent shall forward such notice to the Syndication Parties.”

 

8.         Sections
12.2.5 and 12.2.6 of the Agreement are hereby deleted and replaced with “This
Section Intentionally Omitted”

 

9.         Section
13.11 of the Agreement is hereby amended in its entirety to read as follows:

 

 

	
  3

  

 

 

 

 

 

 

“13.11
Payment of Dividends.  Borrower shall not, directly or indirectly, declare
or pay any dividends on account of any units of any class of its equity or any
of its patronage notices now or hereafter outstanding, or set aside or
otherwise deposit or invest any sums for such purpose, or redeem, retire,
defease, purchase or otherwise acquire any units of any class of its equity or
any of its patronage notices (or set aside or otherwise deposit or invest any
sums for such purpose) for any consideration other than additional units or
patronage notices or apply or set apart any sum, or make any other distribution
(by reduction of capital or otherwise) in respect of any such units of any
class of its equity or any of its patronage notices, or make any other
distribution or allocation of its earnings, surplus or assets to any holder of
units of any class of its equity or any of its patronage notices, or agree to
do any of the foregoing; provided, that Borrower may, so long as
Borrower is treated as a partnership for tax purposes, make distributions to
its members on account of the federal and state income taxes that would be
assessed to such members based on Borrower’s income, provided that Borrower
delivers to the Agent a certificate that no Event of Default has occurred or
will result thereby, further provided that the aggregate amount of all such
distributions with respect to any calendar year may not exceed the amount of
such income which would be taxable to such members for such calendar year
multiplied by the maximum applicable state and federal income tax rate for the
calendar year in which taxed, and further provided that interim quarterly
distributions shall not exceed seventy five percent (75%) of the estimated
federal and state income taxes that would be assessed to such members based on
Borrower’s income multiplied by the maximum applicable state and federal income
tax rate.”

 

10.       The
Loan (Tranche A of the Loan and Tranche B of the Loan) shall continue to be
secured as provided for in the Security Documents.

 

11.       In
addition to all other Event’s of Default set forth in the Agreement, the
occurrence of a Matured Default under the National Beef Agreement shall be an Event
of Default.  Agent shall use its commercially reasonable best efforts to
provide to Borrower any default notice or termination notice under the National
Beef Agreement at the same time that such notices are delivered to National
Beef.

 

12.       In
addition to the affirmative covenants set forth in the Agreement, Borrower
agrees to cooperate with CoBank to finalize and execute an Amended and Restated
version of the Agreement substantially in the form presented to Borrower as a
draft on or about the date of this Amendment.

 

13.       This Amendment shall be effective as of
its date, conditioned upon the execution and delivery to the Agent in form and
substance acceptable to the Agent of this Amendment, executed by Borrower and
the Agent; and payment of an Amendment Fee to the Agent in the amount of $7,500.

 

	
  4

  

 

 

 

 

 

 

14.       This Amendment shall be an integral part
of the Agreement, and all of the terms set forth therein are hereby incorporated
in this Amendment by reference, and all terms of this Amendment are hereby
incorporated into said Agreement as if made an original part thereof.  All of
the terms and conditions of the Agreement, which are not modified in this
Amendment, shall remain in full force and effect.  To the extent the terms of
this Amendment conflict with the terms of the Agreement, the terms of this
Amendment shall control.

 

15.       This Amendment may be executed in several
counterparts, each of which shall be construed together as one original.  Facsimile
(or other electronic) signatures on this Amendment shall be considered as
original signatures.

 

[Signature Pages Follow]

 

 

 

 

 

  

	
  5

  

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first herein above written.

 

U.S. PREMIUM BEEF, LLC

 

By: __________________________

Its: __________________________

 

COBANK, ACB, individually and
as Agent and Syndication Party

 

By: __________________________

Its: __________________________

 

 

	
  {SIGNATURE PAGE TO NINTH AMENDEMENT TO CREDIT
  AGREEMENT} 

  

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]