Document:

Exhibit 4.1

 

EXECUTION COPY

 

AMENDMENT TO RIGHTS AGREEMENT

 

THIS
AMENDMENT (this “Amendment”) to that certain Second Amended and Restated
Rights Agreement, dated as of April 26, 2002 (the “Rights Agreement”),
is made and effective as of March 10, 2010, by and between Dakota Growers
Pasta Company, Inc., a North Dakota corporation (f/k/a Dakota Growers
Restructuring Company, Inc., the “Company”), and Wells Fargo Bank, N.A. (f/k/a Wells Fargo Bank Minnesota, National
Association) (the “Rights Agent”). 
Capitalized terms used but not otherwise defined herein shall have the
respective meanings ascribed thereto in the Rights Agreement.

 

WHEREAS,
the Company and the Rights Agent are parties to the Rights Agreement;

 

WHEREAS,
the Company intends to enter into that certain Agreement and Plan of Merger,
dated as of the date hereof (as amended from time to time, the “Merger
Agreement”), by and among the Company, Agricore United Holdings Inc., a
Delaware corporation (“Parent”), and Bluebird Acquisition Corporation, a
North Dakota corporation and a wholly owned subsidiary of Parent (“Merger
Sub”), pursuant to which (x) Merger Sub shall commence a cash tender
offer (the “Offer”) to acquire all of the outstanding shares of (i) common stock, par value $0.01 per share, of the Company
(the “Common Shares”) and (ii) Series D Non-Cumulative
Delivery preferred stock, par value $.01 per share of the Company (the “Series D
Shares”) and (y) following the consummation of the Offer, Merger Sub
will merge with and into the Company (the “Merger”), with the Company
continuing as the surviving corporation of the Merger, in each case on the
terms and subject to the conditions set forth in the Merger Agreement;

 

WHEREAS,
pursuant to Section 27 of the Rights Agreement, the Company may and the Rights
Agent shall, if so directed by the Company, from time to time supplement or
amend the Rights Agreement without the approval of any holders of the Common
Shares or Right Certificates to change or supplement any provision in the
Rights Agreement in any manner the Company may deem necessary or desirable;

 

WHEREAS,
the board of directors of the Company (the “Board”) has determined that
the Merger and the other transactions contemplated by the Merger Agreement are
fair to and in the best interests of the Company and its stockholders;

 

WHEREAS,
the Board has determined that it is in the best interests of the Company and
its stockholders to amend the Rights Agreement in the manner set forth herein
to exempt the Merger Agreement and the Offer, the Merger and the other
transactions contemplated therein from the application of the Rights Agreement;

 

WHEREAS,
the Company desires to amend the Rights Agreement in accordance with Section 27
thereof in the manner set forth herein to accomplish such purpose.

 

NOW,
THEREFORE, in consideration of the premises and agreements set forth herein and
in the Rights Agreement, the parties hereto agree as follows:

 

1.                                       Defined Terms.  Section 1 of the Rights Agreement is
hereby amended as follows:

 

 

(a)                                  Amendment to
Definition of Acquiring Person.  The definition of “Acquiring Person” set
forth in Section 1(a) of the Rights Agreement is hereby amended and
supplemented by adding the following sentence to the end thereof:

 

“Notwithstanding anything in this Agreement to the contrary, neither
Parent nor Merger Sub nor any of their respective existing or future
Affiliates, individually or collectively, shall become or be deemed to have
become an Acquiring Person solely by virtue of (i) the
approval, execution, delivery or adoption of the Merger Agreement or the
Support Agreements; (ii) the public or other announcement of the Offer,
the Merger or the other transactions contemplated by the Merger Agreement or
the Support Agreements; (iii) the commencement of the Offer or the
extension or amendment thereof from time to time in accordance with the terms
of the Merger Agreement; (iv) the acquisition of Common Shares by Parent,
Merger Sub or their respective existing or future Affiliates in accordance with
the provisions of the Merger Agreement; or (v) the consummation of the
Offer (as the Offer may be amended and/or extended from time to time or during
any subsequent offering period in accordance with the terms of the Merger
Agreement), the Merger or any of the other transactions contemplated by the
Merger Agreement or the Support Agreements.”

 

(b)                                 Amendment to
Definition of Share Acquisition Date.  The definition of “Share Acquisition Date”
set forth in Section 1(n) of the Rights Agreement is hereby amended
and supplemented by adding the following proviso at the end of such section:

 

“provided,
however, that a Share Acquisition Date shall not occur or be deemed to
have occurred as a result of any Exempt Event.”

 

(c)                                  Additional
Defined Terms.  Section 1
of the Rights Agreement is hereby amended by adding the following paragraphs
(p), (q), (r), (s), (t), (u) and (v):

 

“(p)                           “Exempt Event” shall mean
each of the events described in clauses (i) through
(v) of the last sentence of the definition of “Acquiring Person”.

 

(q)                                 “Merger” shall
have the meaning ascribed thereto in the Merger Agreement.

 

(r)                                    “Merger
Agreement” shall mean that certain Agreement and Plan of Merger, dated as of
the date hereof, by and among the Company, Parent and Merger Sub, as the same
may be amended from time to time.

 

(s)                                  “Merger Sub”
shall have the meaning ascribed thereto in the Merger Agreement.

 

(t)                                    “Offer” shall
have the meaning ascribed thereto in the Merger Agreement.

 

(u)                                 “Parent” shall
have the meaning ascribed thereto in the Merger Agreement.”

 

 

(v)                                 “Support
Agreement” shall have the meaning ascribed thereto in the Merger Agreement.

 

2.                                       Amendment to Section 3(a) of
the Rights Agreement.  Section 3(a) of
the Rights Agreement is hereby amended by adding the following sentence at the
end thereof:

 

“Notwithstanding anything in this Agreement to the contrary, a
Distribution Date shall not be deemed to have occurred solely as the result of
an Exempt Event.”

 

3.                                       Amendment to Section 7(a).  Section 7(a) of the Rights
Agreement is hereby amended:

 

(a)                                  by deleting the
word “or” immediately preceding clause (iii) and replacing it with a comma
and by adding the following at the end of clause (iii):

 

“or (iv) immediately prior to the
Effective Time (as such term is defined in the Merger Agreement), and at the
Effective Time the Rights Agreement shall be terminated and be of no further
force and effect.”; and

 

(b)                                 by adding the
following sentence at the end thereof:

 

“Notwithstanding anything to the contrary in this
Agreement, an Exempt Event shall not be deemed to be an event that causes the
Rights to become exercisable under the provisions of this Section 7 or
otherwise.”

 

4.                                       Amendment to Section 11(a)(ii) of the Rights Agreement.  Section 11(a)(ii) of
the Rights Agreement is amended by adding the following sentence at the end
thereof:

 

“Notwithstanding anything to the contrary in this Agreement, no Exempt
Event shall be deemed to constitute an event of the type described in this Section 11(a)(ii) or
cause the Rights to be adjusted or become exercisable in accordance with this Section 11(a)(ii).”

 

5.                                       Amendment to Section 13
of the Rights Agreement.  Section 13
of the Rights Agreement is amended by adding the following sentence at the end
thereof:

 

“Notwithstanding anything to the contrary in this Agreement, no Exempt
Event shall be deemed to constitute an event of the type described in this Section 13
or cause the Rights to be adjusted or become exercisable in accordance with
this Section 13 or otherwise be subject to any of the restrictions
contained in this Section 13.”

 

6.                                       Amendment to Section 29
of the Rights Agreement.  Section 29
of the Rights Agreement is amended by adding the following sentence at the end
thereof:

 

“Notwithstanding the foregoing, nothing in this Agreement shall be
construed to give any registered holder of the Rights Certificates (and, prior
to the Distribution Date, the registered holders of Common Shares) any legal or

 

 

equitable right, remedy or claim
under this Agreement in connection with any Exempt Event.”

 

7.                                       Termination.  If the Merger Agreement is terminated for any
reason, (i) this Amendment shall immediately
thereupon be of no further force and effect and the amendments contained herein
shall be deemed to have not been made to the Rights Agreement and (ii) the
Rights Agreement shall remain exactly the same as it existed prior to this
Amendment.  If the Merger Agreement is
terminated for any reason, the Company shall notify the Rights Agent in
accordance with Section 26 of the Rights Agreement.

 

8.                                       Effectiveness.  This Amendment shall be deemed effective as
of, and immediately prior to, the execution and delivery of the Merger
Agreement.  Except as
amended by this Amendment, the Rights Agreement shall remain in full force and
effect and shall be otherwise unaffected by this Amendment.

 

9.                                       Severability.  If any term, provision, covenant, or
restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, void, or unenforceable, the remainder of the
terms, provisions, covenants, and restrictions of this Amendment shall remain
in full force and effect and shall in no way be affected, impaired, or
invalidated.

 

10.                                 Counterparts.  This Amendment may be executed in any number
of counterparts, and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

 

11.                                 Governing Law.  This Amendment shall be deemed to be a
contract made under the laws of the State of North Dakota and for all purposes
shall be governed by and construed in accordance with the laws of such State
applicable to contracts to be made and performed entirely within such State.

 

12.                                 Descriptive
Headings.  Descriptive
headings of the several Sections of this Amendment are inserted for convenience
only and shall not control or affect the meaning or construction of any of the
provisions hereof.

 

13.                                 Further
Assurances.  Each of the
parties to this Amendment shall cooperate and take such action as may be
reasonably requested by the other party in order to carry out the provisions
and purposes of this Amendment, the Rights Agreement and the transactions
contemplated hereunder and thereunder.

 

[Remainder
of Page Intentionally Left Blank]

 

 

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

 

	
   

  	
  DAKOTA
  GROWERS PASTA 

  COMPANY,
  INC. (f/k/a DAKOTA 

  GROWERS
  RESTRUCTURING 

  COMPANY,
  INC.)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy J. Dodd

  
	
   

  	
   

  	
  Name:
  Timothy J. Dodd

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, N.A. (F/K/A 

  WELLS
  FARGO BANK MINNESOTA, 

  NATIONAL
  ASSOCIATION)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Cindy Gesme

  
	
   

  	
   

  	
  Name:
  Cindy Gesme

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[Signature
Page to Amendment to Rights Agreement]Exhibit 10.1

 

 

March 2,
2010

 

Mr. Michael
E. McGrath

15116
Vizcaya Drive

Dallas,
TX 75248

 

Re:  Second Amendment to Terms
and Conditions of Employment

 

Dear
Michael:

 

This
letter will evidence the terms and conditions relating to an amendment of the
letter agreement entered into by Thomas Group, Inc. (the “Company”) and
you dated February 19, 2008, as previously amended by the Amendment to Terms
and Conditions of Employment  entered
into by the Company and you and dated March 3, 2009 (the Employment Letter”
).

 

The
Employment Letter is hereby amended so that Section 1(c) of the
Employment Letter shall read in its entirety as follows:

 

1.              Time
Commitment.  The Employment
Letter is hereby amended so that Section 1 (c) of the Employment
Letter shall read in its entirety as follows:

 

(c)   Time Commitment.  You shall devote substantially all
of your business time and energy to your duties as Executive Chairman, Chief
Executive Officer and President.

 

2.              Compensation.   The Employment Letter is
hereby amended so that Section 1 (d) of the Employment Letter shall
read in its entirety as follows:

 

(d) Compensation.  Your
base salary for the 2010 annual period shall be $330,000.   This
shall be payable in accordance with the Company’s standard policies and subject
to standard withholdings and deductions.

 

3.              Restricted
Share Award

 

The Compensation and Corporate Governance Committee
of the Board of Directors of the Company has approved a grant to you of a total
of up to 600,000 shares of restricted stock to be distributed to you over the
course of 2010.  In accordance with and
subject to the terms of the Restricted Share Award agreement governing such
award, you will receive 150,000 shares on the last day of each quarter of 2010,
provided that you remain employed by the Company in the roles of Executive
Chairman, President and Chief Executive Officer on the last day of each quarter
of 2010.

 

 

	
   

  	
  Initials

  	
  EE/MM

  

 

 

	
  5221
  N. O’Connor Blvd., Suite 500

  	
   

  	
  Irving, TX 75039

  

 

 

4.              Annual
Bonus.

 

Notwithstanding Section 2(c) of the
Employment Letter, you will no longer be eligible for an annual bonus.

 

5.              Business
Expenses.

 

The Company will continue to reimburse you for the
travel, entertainment and other business expenses incurred by you in the
performance of your duties in accordance with the Company’s policies applicable
to senior executives as in effect from time to time.  The Company agrees to increase your
reimbursement for the actual cost of first-class commercial airline fares for
travel from your residences in Maine or Boston to Dallas, not to exceed $50,000
in a 12-month period.

 

6.              Ratification.

 

Except
as amended or modified by this letter, the Employment Letter is hereby ratified
by each of the parties hereto and shall remain in full force and effect in
accordance with its terms.

 

7.              Counterparts.

 

This
letter may be executed in several counterparts, each of which shall be deemed
to be an original but all of which together will constitute one and the same
instrument.

 

If
you agree that the foregoing terms and conditions accurately evidence our
agreement, please initial each page and sign and return this letter.

 

My
best regards,

 

THOMAS
GROUP, INC.

 

	
  By:

  	
  /s/ Edward P. Evans

  	
   

  
	
   

  	
  Edward
  P. Evans.

  
	
   

  	
  Director
  and Chairman of the Compensation and Corporate

  
	
   

  	
  Governance
  Committee

  

 

 

ACCEPTED
AND AGREED:

 

 

	
  /s/ Michael E. McGrath

  	
   

  	
  March 9, 2010

  
	
  Michael
  E. McGrath

  	
   

  	
  Date

  

 

	
   

  	
  Initials

  	
  EE/MM

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