Document:

Exhibit 10.3

 

EXTENSION AGREEMENT

 

This EXTENSION
AGREEMENT (“Extension Agreement”), effective as of December 13,
2007, is by and between GOLDEN OVAL EGGS, LLC, a limited liability company
organized under the laws of the State of Delaware, GOECA, LP, a Delaware
limited partnership, and MIDWEST INVESTORS OF IOWA, COOPERATIVE, a cooperative
organized under the laws of the State of Iowa (individually each a “Borrower” and collectively
the “Borrowers”) the banks and
other financial institutions or entities which are signatories hereto
(individually each a “Lender” and collectively the “Lenders”), and COBANK, ACB, a
federally charted instrumentality under the Farm Credit Act of 1971, as
amended, one of the Lenders and as agent for the Lenders (in such capacity, the
“Administrative
Agent’’).

 

RECITALS

 

1.                                       The Lenders and the
Borrowers entered into an Amended and Restated Credit Agreement dated as of June 30,
2006 (the “Credit Agreement”); and

 

2.                                       The Lenders and the
Borrowers entered into a First Amendment to the Amended and Restated Credit
Agreement dated as of April 30, 2007 (the “First Amendment”), and entered
into a Second Amendment to the Amended and Restated Credit Agreement dated as
of October 19, 2007 (the “Second Amendment); the Credit Agreement as
amended by the First Amendment and Second Amendment all together may be
referred to as the “Amended Credit Agreement”; and

 

3.                                       The Borrowers are
working diligently with ING Capital LLC (“ING”) to obtain sufficient financing
to repay all existing debt arising from or related to the Amended Credit Agreement, and have asked for certain accommodations
from the Lenders in this regard. The Lenders are willing, upon the terms and
conditions set forth herein, to extend various reporting and payment due dates set forth under the
Amended Credit Agreement.

 

AGREEMENT

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby covenant end agree to be bound as follows:

 

Section  1.
Capitalized  Terms.  Capitalized  terms  used  herein  and  not  otherwise  defined  herein  shall  have  the  meanings  assigned  to  them  in  the  Amended  Credit  Agreement,  unless  the  context  shall  otherwise  require.

 

Section 2. Impact of Extension on Borrowers’ Obligations.
Unless specifically provided for otherwise in this Extension Agreement, this Extension
Agreement does not replace

 

1

 

or
supplant the Amended Credit Agreement. Borrowers shall fully perform their
obligations under the Amended Credit Agreement unless specifically modified
herein.

 

Section 3. Preconditions
to Extensions. The Lenders’ obligation to extend various performance dates under the
Amended Credit Agreement shall be subject to the following conditions, all of
which shall be considered preconditions and continuing until all matters have
been completed:

 

A.                                         Execution
of this Extension Agreement by Borrowers. This Extension Agreement
shall not be effective until and unless it has been fully and properly executed
by all parties hereto in multiple originals, electronic copies of which must be
furnished to the Lenders on or before Thursday, December 13, 2007.

 

B.                                         Receipt
of Binding Commitment Letter by December 14, 2007. On
or before December 14, 2007, Borrowers must have received, and transmitted to Lenders, a binding
commitment from ING (the “Commitment”) on substantially the same terms and
conditions as set forth in the ING term sheet dated October 8, 2007,
provided to Lenders on or about November 21, 2007, and attached hereto as Exhibit A.
The terms of the ING transaction must include the repayment in full of all
obligations to Lenders arising from or related to the Amended Credit Agreement,
with said repayment occurring on or before February 29, 2008.

 

C.                                         Compliance
with Amended Credit Agreement. Borrowers must be in compliance with all
terms and conditions of the Amended Credit Agreement, except to the extent such
performance has been specifically excused or modified in this Extension
Agreement.

 

D.                                         Payment
of Extension Fee. Upon execution of this Agreement, Borrowers
shall pay to Lenders an extension fee of $21,280.

 

Section 4. Termination Date Extension
–  Short Term Revolving Note. The Termination Date as it applies to the
Short Term Revolving Note shall be extended to March 1,  2008.

 

Section 5. Deferral of Principal
Payments under Tranche A and B Loans. Principal payments due on January 20,
2008 and February 20, 2008 for any Tranche A Loan or Tranche B Loan shall
be deferred until the Maturity Date of the applicable Tranche Loan.

 

Section 6. Other Extensions. The Amended Credit Agreement provides for
certain financial benchmarks and ratios to be achieved by Borrowers beginning
on December 15, 2007. Provided that the preconditions to extensions
described in Section 3 herein and contingencies set forth herein are met
as required, Lenders agree that the commencement date of December 15, 2007
for the Current Ratio, Working Capital, Leverage Ratio, and Fixed Charge
Coverage Ratio,

 

2

 

and
Net Worth shall be extended to March 1, 2008. The Minimum EBIDTA
requirements shall not be affected by this Extension Agreement, nor shall the
other reporting requirements contained in the Amended Credit Agreement.

 

Section 7. Waiver
of filing default. The Lenders acknowledge that the Borrowers filed a two (2) week
extension for the filing of their SEC 10K and for delivery, within 90 days, of
their August 31, 2007 audit report. To the extent that requesting this
extension creates a Default under the Amended Credit Agreement, Lenders waive
said Default. Borrowers represent and warrant that the SEC has approved the
extension request, and further represent and warrant that the Borrowers will
make the SEC 10K filing by December 14, 2007.

 

Section 8. Additional
Reporting Requirements. Borrowers shall participate in, on at least a bi-weekly basis, a
conference call including the Lenders and such other bank group participants as
shall elect to attend. Unless otherwise agreed, Borrowers shall be responsible
for arranging said calls, and providing at least 24 hours notice to all
possible participants.

 

In addition to the reporting requirements set forth
in the Amended Credit Agreement, Borrower shall also provide such additional
financial data and analysis as may be reasonably requested by Lenders,
including but not limited to a weekly listing of all payments made by any
Borrower. Said listing shall include the name of the payee, amount of payment,
date of payment, and nature of payment (i.e. “trade creditor”, “employee”, “rent”).

 

Section 9. Termination
of Extension Agreement. This Extension Agreement terminates without notice to Borrowers upon
the occurrence of any of the following:

 

A.                                        Withdrawal of the Commitment by 1NG for any
reason, or termination of the lending process prior to the consummation of the
loan transaction set forth in the Commitment; or

 

B.                                          Termination of the lending process with ING
by Borrowers, for any reason, including the unwillingness or inability of
Borrowers to consummate the transaction set forth in the Commitment; or

 

C.                                          Failure of Borrowers to make the loan
payments due to Lenders on December 20, 2007 on any Tranche A Loan or
Tranche B Loan, or any other Default by Borrowers under the Amended Credit
Agreement, as extended.

 

In
the event that this Extension Agreement is terminated, all deadlines and
performance dates shall be reinstated as set forth in the Amended Credit
Agreement, and treated as though this Extension Agreement had never become
effective.

 

3

 

Section 10. Representations,
Warranties, Authority, No Adverse Claim.

 

10.1 Reassertion of Representations and
Warranties, No Default. Each Borrower hereby represents that on and as of the date hereof and
after giving effect to this Extension Agreement (a) all of the
representations and warranties contained in the Amended Credit Agreement are
true, correct and complete in all respects as of the date hereof as though made
on and as of such date, except for changes permitted by the terms of the
Amended Credit Agreement, as extended and (b) there will exist no Default
or Event of Default under the Amended Credit Agreement as extended on such date
which has not been specifically waived by the Lenders.

 

10.2 Authority, No Conflict, No Consent Required. Each Borrower represents and warrants that
such Borrower has the power and legal right and authority to enter into this
Extension Agreement and has duly authorized as appropriate the execution and
delivery of the Extension Agreement and other agreements and documents executed
and delivered by such Borrower in connection herewith or therewith by proper
company action, and nothing herein contravenes or constitutes a default under
any agreement, instrument or indenture to which such Borrower is a party or a
signatory or a provision of such Borrower’s articles of organization, bylaws or
any other agreement or requirement of law, or result in the imposition of any
Lien on any of its property under any agreement binding on or applicable to
such Borrower or any of its property except, if any, in favor of the Lenders.
Each Borrower represents and warrants that no consent, approval or
authorization of or registration or declaration with any Person, including but
not limited to any governmental authority, is required in connection with the
execution and delivery by such Borrower of this Extension Agreement or other
agreements and documents executed and delivered by such Borrower in connection
therewith or the performance of obligations of such Borrower therein described,
except for those which the Borrower has obtained or provided and as to which
the Borrower has delivered certified copies of documents evidencing each such
action to the Administrative Agent. A
true and correct copy of appropriate Certificates for each Borrower certifying
as to incumbency and attaching the effective board resolutions authorizing the
execution of this Extension Agreement shall be tendered upon execution of this
Extension Agreement.

 

10.3 No Adverse Claim. Each Borrower warrants, acknowledges and
agrees that no events have been taken place and no circumstances exist at the
date hereof which would give such Borrower a basis to assert a defense, offset
or counterclaim to any claim of any Lender with respect to the Obligations.

 

10.4 No Change in Entity Status. Each Borrower represents and warrants that
it is a properly formed entity in good standing in its state of formation, with
all requisite power and authority to conduct business in all states in which it
conducts business. Each Borrower represents and warrants that the statements
and representations made in its

 

4

 

Secretary’s Certificate effective October 19, 2007
(tendered in connection with the consummation of the Second Amendment) remain
true and correct in all respects.

 

10.5 No Change in Organizational Documents or Officers.
Each Borrower represents and warrants that there has been no change in the
organizational and governing documents of the Borrower since the tender of the
Secretary’s Certificate effective October 19, 2007, nor has there been a
change in the officers of the Borrower since that time. Each Borrower
represents and warrants that the person executing this Extension Agreement has
been properly authorized and directed to do so, as set forth on the Exhibits
hereto.

 

Section 11. Affirmation
of Credit Agreement, Further References, Affirmation of Security Interest. The Lenders and each
Borrower acknowledge and affirm that the Credit Agreement, as previously
amended and hereby extended, is hereby ratified and confirmed in all respects
and all terms, conditions and provisions of the Amended Credit Agreement shall
remain unmodified and in full force and effect. All references in any document
or instrument to the Credit Agreement shall refer to the Amended Credit
Agreement as extended. Each Borrower confirms to the Administrative Agent and
the Lenders that the Obligations are and continue to be secured by the security
interests granted by the Borrowers in favor of the Administrative Agent for the
benefit of the Administrative Agent and the Lenders under the Security
Documents, and all of the terms, conditions, provisions, agreements,
requirements, promises, obligations, duties, covenants and representations of
the Borrowers under such documents and any and all other documents and
agreements entered into with respect to the obligations under the Amended
Credit Agreement are incorporated herein by reference and are hereby ratified
and affirmed in all respects by each Borrower.

 

Section 12. Merger and
Integration, Superseding Effect. This Extension Agreement, from and after the date
hereof, embodies the entire agreement and understanding between the parties
hereto and supersedes all prior oral and written agreements on the same subjects
by and between the parties hereto, occurring after the execution of the Second
Amendment, and has merged into this Extension Agreement. This Extension
Agreement shall control with respect to the specific subjects herein.

 

Section 13. Severability. Whenever possible, each
provision of this Extension Agreement and any other statement, instrument or
transaction contemplated hereby or thereby or relating hereto or thereto shall
be interpreted in such manner as to be effective, valid and enforceable under the
applicable law of any jurisdiction, but, if any provision of this Extension
Agreement or any other statement, instrument or transaction contemplated hereby
or thereby or relating hereto or thereto shall be held to be prohibited,
invalid or unenforceable under the applicable law, such provision shall be
ineffective in such jurisdiction only to the extent of such prohibition,
invalidity or unenforceability, without invalidating or rendering unenforceable
the remainder of such provision or the remaining provisions of this Extension
Agreement or any other statement, instrument or transaction contemplated hereby
or thereby or relating hereto or

 

5

 

thereto
in such jurisdiction, or affecting the effectiveness, validity or
enforceability of such provision in any other jurisdiction.

 

Section 14. Legal
Expenses. As provided in Section 9.2 of the
Credit Agreement, the Borrowers agree to reimburse the Administrative Agent,
upon request, for all reasonable out-of-pocket expenses (including attorney
fees and legal expenses of Kalina, Wills, Gisvold, & Clark PLLP,
counsel for the Administrative Agent) incurred in connection with the
negotiation, preparation and execution of this Extension Agreement and all
other documents negotiated, prepared and executed in connection therewith, and
in enforcing the obligations of the Borrowers under this Extension Agreement,
and to pay and save the Administrative Agent and Lenders harmless from all
liability for, any stamp or other taxes which may be payable with respect to
the execution or delivery of this Extension Agreement and exhibits, which
obligations of the Borrowers shall survive any termination of the Amended
Credit Agreement.

 

Section 15. Headings. The headings of various sections of this Extension Agreement have been
inserted for reference only and shall not be deemed to be a part of this
Extension Agreement.

 

Section 16. Counterparts. This Extension Agreement may be executed in
several counterparts as deemed necessary or convenient, each of which, when so
executed, shall be deemed an original.

 

Section 17. Governing Law. AT THE OPTION OF THE ADMINISTRATIVE AGENT,
THIS AGREEMENT AND THE OTHER AMENDMENT DOCUMENTS MAY BE ENFORCED IN ANY FEDERAL COURT OR COLORADO
STATE COURT SITTING IN CITY OR COUNTY OF DENVER; AND EACH BORROWER CONSENTS TO
THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE
IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT ANY BORROWER COMMENCES ANY
ACTION IN ANOTHER JURISDICTION OR VENUE UNIDER ANY TORT OR CONTRACT THEORY
ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT,
THE ADMINISTRATIVE AGENT AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE
TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH
TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE
DISMISSED WITHOUT PREJUDICE.

 

Section 18. Waiver of Jury Trial. EACH BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

6

 

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

 

 

	
   

  	
  GOLDEN OVAL EGGS, LLC,

  
	
   

  	
  as a Borrower and the Borrowers’ Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas A. Powell

  
	
   

  	
  Thomas A. Powell, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MIDWEST INVESTORS OF IOWA,

  
	
   

  	
  COOPERATIVE, as a  Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas A. Powell

  
	
   

  	
  Thomas A. Powell, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address for the Borrowers

  	
  GOECA, LP, as a Borrower

  
	
  For Purposes of Notice:

  	
  By its General Partner GOEMCA, Inc.

  
	
  1800 Park Avenue East

  	
   

  
	
  Renville, MN 56284

  	
  By:

  	
  /s/ Thomas A. Powell

  
	
  Fax: (320) 329-3276

  	
  Thomas A. Powell, Chief Financial Officer

  
	
  Attention: Thomas A. Powell

  	
   

  

 

7

 

	
   

  	
  COBANK, ACB, as a Lender and as the

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald P. Seigley

  
	
   

  	
  Name:

  	
  Ronald P. Seigley

  
	
   

  	
  Title:

  	
  Vice President 

  
	
   

  	
   

  
	
   

  	
  Address for all notices:

  
	
   

  	
  5500 South Quebec Street 

  
	
   

  	
  Greenwood Village, CO 80111

  
	
   

  	
  PO. Box 5110

  
	
   

  	
  Denver, CO 80217

  
	
   

  	
  Attention: Ron Seigley

  
	
   

  	
  Fax: (303) 740-4021

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  METROPOLITAN LIFE INSURANCE

  
	
   

  	
  COMPANY, as  a
  Bank and Lender (as to the Short

  
	
   

  	
  Term Revolving Note)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven D. Craig

  
	
   

  	
  Name:

  	
  STEVEN D. CRAIG

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
  Address for all notices:

  
	
   

  	
  4401 Westown Parkway, Suite 220

  
	
   

  	
  West Des Moines, IA 50266

  
	
   

  	
  Fax: (515) 223-0757

  
	
   

  	
  Attention: Tony Jennings

  
						

 

8Exhibit 10.4

 

EXTENSION AND AMENDMENT AGREEMENT

 

This EXTENSION AND AMENDMENT AGREEMENT  (“Agreement”),
effective as of March 11, 2008, is by and between
GOLDEN OVAL EGGS, LLC, a limited liability company organized under the laws of
the State of Delaware, GOECA, LP, a Delaware limited partnership, and MIDWEST
INVESTORS OF IOWA, COOPERATIVE, a cooperative organized under the laws of the
State of Iowa (individually each a “Borrower” and
collectively the “Borrowers”) the banks and other financial institutions
or entities which are signatories hereto (individually each a “Lender” and
collectively the “Lenders”), and COBANK, ACB, a
federally charted instrumentality under the Farm Credit Act of 1971, as
amended, one of the Lenders and as agent for the Lenders (in such capacity, the
“Administrative Agent”).

 

RECITALS

 

1.             The Lenders and the
Borrowers entered into an Amended and Restated Credit Agreement dated as of June 30,
2006 (the “Credit Agreement”); and

 

2.             The Lenders and the
Borrowers entered into a First Amendment to the Amended and Restated Credit
Agreement dated as of April 30, 2007 (the “First Amendment”), entered into
a Second Amendment to the Amended and Restated Credit Agreement dated as of October 19,
2007 (the “Second Amendment), and entered into an Extension Agreement (the “First
Extension”) on December 13, 2007; the Credit Agreement as amended by the
First Amendment, Second Amendment, and First Extension all together may be
referred to as the “Amended Credit Agreement”; and

 

3.             By letter dated February 28,
2008 the Borrowers requested certain accommodations of the Lenders. The Lenders
are willing, upon the terms and conditions set forth herein, to extend various
reporting and payment due dates set forth under the Amended Credit Agreement;
and

 

4.             The Borrowers have
requested that the Lenders act promptly on this matter such that this Agreement
might be signed by Tuesday, March 11, 2008, and the Lenders have complied
with said request.

 

AGREEMENT

 

NOW, THEREFORE,  for good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto hereby covenant and agree to be bound as follows:

 

Section 1.  Recitals. The Recitals
above are acknowledged as true and correct statements of fact.

 

1

 

Section 2. Capitalized Terms. Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to them in the Amended Credit Agreement, unless the context shall
otherwise require. For purposes of this Agreement the word “Detailed” shall
include, but not be limited to, the following:

 

(a)                                      In the case of
a communication, meeting, act or conduct, the date of the communication,
meeting, act or conduct, where it took place, the identity of each participant
and the identity of each person who was present, and the substance of each
person’s communication;

 

(b)                                 If a
communication or meeting, the identity of the person making the particular
statement so listed, the mode of communication (for example, in writing, telephone,
or in person), and the location of each of the participants;

 

(c)                                  If an act or
conduct, the details of the act or conduct being described and what each person
participating in such act or conduct did;

 

(d)                                 When used with
respect to a person, the person’s name, present or last known address and
telephone number, and the position and business affiliation of the person;

 

(e)                                  When used with
respect to a corporation or other form of business organization, the name of
such corporation or business organization, the address of its principal place
of business, its state of incorporation or formation, and the identity of all
individuals who acted on its behalf;

 

(f)                                    When used with
regard to a document or writing, the type of document or writing (for example,
letter, memorandum, telegram, chart, report), date originated and/or
identifying symbol to identify the author, addressee, and each recipient of
such document or writing.

 

Provided,
for the purpose of subsection (a) and (c) above, the term Detailed
shall not require disclosure of the content of any communication with respect
to which Borrower in good faith and under applicable ethical canons believes it
may assert the attorney-client privilege.

 

Section 3. Impact of Extension on Borrowers’ Obligations. Unless specifically
provided for otherwise in this Agreement, this Agreement does not replace or
supplant the Amended Credit Agreement. Borrowers shall fully perform their
obligations under the Amended Credit Agreement unless specifically modified
herein. Nothing herein shall be deemed a waiver by the Lenders of any term,
condition, representation or covenant applicable to the Borrowers under the
Amended Credit Agreement or any of the other agreements, documents or
instruments executed and delivered in connection therewith, or of the covenants
described therein. Borrowers shall comply with any reporting requirements set
out under the Amended Credit Agreement.

 

Section 4. Preconditions and Continuing Obligations. The Lenders’
continuing obligation to extend various performance dates under the Amended
Credit Agreement, and obligations to perform under this Agreement, shall be
subject to the following conditions, all of which shall be considered
preconditions and continuing obligations until all matters have been completed:

 

2

 

A.            Execution of this Extension Agreement by Borrowers. This Agreement shall not be effective until and
unless it has been fully and properly executed by all parties hereto in
multiple originals, electronic copies of which must be furnished to the Lenders on or before Tuesday, March 11,
2008.

 

B.            Compliance with Amended Credit Agreement. Borrowers must be in compliance with
all terms and conditions of the Amended Credit Agreement, and any writing setting forth strategic alternatives as referred to in Section 8,
except to the extent such performance has been specifically excused or
modified in this Agreement.

 

C.            Payment of Extension Fee. Upon
execution of this Agreement, Borrowers shall pay to Lenders an extension fee
of $21,280.

 

Section 5.  Termination Date Extension – Revolving
Notes. The Termination Date as it applies to
all Revolving Loans shall be extended to July 31, 2008.

 

Section 6.  Deferral of Principal Payments under
Tranche A and B Loans.
Principal payments due on March 20, 2008, April 20,
2008, May 20, 2008, June 20, 2008 and July 20, 2008 for any Tranche A Loan or Tranche B Loan shall be deferred until
the Maturity Date of the applicable Tranche Loan.

 

Section 7.  Other Extensions. The Amended Credit Agreement provides for certain financial benchmarks and ratios to be achieved by Borrowers beginning on
March 1, 2008. Provided that the preconditions to extensions
described in Section 3 herein and the contingencies set forth herein are
met as required, Lenders agree that the commencement date of March 1, 2008
for the Current Ratio, Working Capital, Leverage Ratio, Fixed Charge Coverage
Ratio, and Net Worth shall be extended
through the Termination Date. The other reporting requirements contained
in the Amended Credit Agreement shall not be affected by this Agreement.

 

Section 8.  Exploration of Strategic Alternatives. The Borrowers shall explore strategic
alternatives upon such terms and conditions and within such time frames as may
be mutually agreed to, in writing, by the parties.

 

Section 9.  Additional Reporting Requirements. In addition to the reporting requirements
of the Borrowers under the Amended Credit Agreement, Borrowers shall provide to Lenders on a bi-weekly basis a Detailed description of all efforts
made and actions taken related to any agreed upon schedule or benchmarks,
including actions taken by others (such as Greene,
Holcomb and Fisher) on behalf of the Borrowers related to any strategic
alternatives or transactions. Any
communications or documents referred to in the description shall be attached thereto. Borrowers shall also provide such
additional financial data and analysis as may be reasonably requested by Lenders. Any request for additional details shall
be immediately addressed by
Borrowers. Furthermore, an inquiry, proposal, or communication which could result in a strategic transaction shall be
furnished immediately (within 48 hours of receipt) to the Lenders.

 

3

 

Section 10.  Minimum
EBITDA. Commencing the month of March 2008, Borrowers
shall maintain a minimum monthly EBITDA of
One Million Dollars ($1,000,000.00), Borrowers shall report each month’s
EBITDA to Lenders on or before the 10th business day of the following month (the “Reporting Date”)

 

Section 11.  Thompson
Escrow. The Borrowers have informed
the Lenders that they have obtained the necessary
permit from the Iowa Department of Natural Resources to remedy violations of various regulations applicable to the Borrowers’ facility
in Thompson, Iowa (the “Permitted Work”). Beginning on
the day after April 2008’s Reporting Date, and continuing on the day after
each month’s Reporting Date occurring under this Agreement, the Lenders will transfer funds in the Monthly Escrow Amount (as defined hereafter) from
the Borrowers’ account to an interest bearing
escrow account maintained by Lenders and established to finance the costs and
expenses associated with the Permitted Work. The Monthly Escrow Amount is a sum equal to
the amount by which the previous month’s EBITDA exceeds the monthly EBITDA of
One Million Dollars ($1,000,000), up to Two Hundred Thousand Dollars
($200,000).

 

Section 12.  Events of
Default. The occurrence of any one or more of the following events shall
constitute an Event of Default.

 

	
  A.

  	
   

  	
  The Borrowers shall fail to comply with any term or
  condition of this Agreement.

  
	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  The Borrowers shall fail to comply with any term or
  condition of the Amended Credit Agreement.

  
	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Lenders may declare an Event of Default upon three
  (3) days written notice to Borrowers
  if Lenders reasonably believe that the Borrowers will be unable to comply with the benchmarks or deadlines they propose to Lenders in
  any written communication, as referenced in Section 8.

  

 

Section 13.  Remedies Upon
Default. In addition to the remedies
available to the Lenders at law or in equity upon the occurrence of an Event of
Default, or as specifically provided in the Amended Credit Agreement
(including the Security Agreement dated September 13, 2004) Borrowers
specifically agree and hereby consent to the following:

 

	
  A.

  	
   

  	
  On
  the day following a missed Section 8 deadline the following shall occur:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1)             the interest rate on the
  Revolving Loans (including the Short Term Revolving Note) shall be calculated
  at the Default Rate, pursuant to Section 2.5(a)(iv) of the
  June 30, 2006, Amended and Restated Credit Agreement;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2)             the interest rate on the Swing
  Line Loans shall be calculated at the Default Rate pursuant to
  Section 2.5(c)(ii) of the June 30, 2006 Amended and Restated
  Credit Agreement; and

  

 

4

 

3) each Tranche A Advance and each Tranche B Advance
shall bear interest until paid in full or until such Event of
Default is cured at a rate per annum equal to the Default Rate as per Section 2.5(b)(vii) of
the June 30, 2006 Amended and Restated Credit Agreement. To the extent
that notice is required prior to the application of the Default Rate, Borrowers
hereby waive such notice.

 

If
Lenders determine, in their sole
discretion, that the Borrowers are diligently pursuing the goals set out in a
separate writing , Lenders may determine to accrue the additional interest
generated by the use of the default interest rates, until completion of the
strategic transaction described in the separate writing, and related to which
the deadline was missed.

 

Section 14. Representations, Warranties, Authority, No
Adverse Claim.

 

14.1 Reassertion of Representations and
Warranties, No Default. Each Borrower hereby
represents that on and as of the date hereof and after giving effect to this
Agreement (a) all of the representations and warranties contained in the
Amended Credit Agreement are true, correct and complete in all respects as of
the date hereof as though made on and as of such date, except for changes
permitted by the terms of the Amended Credit Agreement, as extended and (b) there
will exist no Default or Event of Default under the Amended Credit Agreement as
extended on such date which has not been specifically waived by the Lenders.

 

14.2 Authority, No Conflict, No Consent Required. Each Borrower
represents and warrants that such Borrower has the power and legal right and
authority to enter into this Agreement and has duly authorized as appropriate
the execution and delivery of the Agreement and other agreements and documents
executed and delivered by such Borrower in connection herewith or therewith by
proper company action, and nothing herein
contravenes or constitutes a default under any agreement, instrument or
indenture to which such Borrower is a party or a signatory or a provision of
such Borrower’s articles of organization, bylaws or any other agreement or
requirement of law, or result in the imposition of any Lien on any of its
property under any agreement binding on or applicable to such Borrower or any
of its property except, if any, in favor of the Lenders. Each Borrower
represents and warrants that no consent, approval or authorization of or
registration or declaration with any Person, including but not limited to any
governmental authority, is required in connection with the execution and
delivery by such Borrower of this Agreement or other agreements and documents
executed and delivered by such Borrower in connection therewith or the
performance of obligations of such Borrower therein described, except for those
which the Borrower has obtained or provided and as to which the Borrower has
delivered certified copies of documents evidencing each such action to the
Administrative Agent. A true and correct copy of appropriate
Certificates for each Borrower certifying as to incumbency and attaching the effective
board resolutions authorizing the execution of this Agreement shall be tendered
upon execution of this Agreement. Original signatures shall be provided within
five (5) days of the date hereof.

 

5

 

14.3 No Adverse Claim. Each Borrower
warrants, acknowledges and agrees that no events have been taken place and no
circumstances exist at the date hereof which would give such Borrower a basis
to assert a defense, offset or counterclaim to any claim of any Lender with
respect to the Obligations.

 

14.4 No Change in Entity Status. Each Borrower
represents and warrants that it is a properly formed entity in good standing in
its state of formation, with all requisite power and authority to conduct
business in all states in which it conducts business., Each Borrower represents
and warrants that the statements and representations made in its Secretary’s
Certificate effective October 19, 2007 (tendered in connection with the consummation
of the Second Amendment) remain true and correct in all respects.

 

14.5 No Change in Organizational Documents or Officers. Each Borrower represents and warrants that there has been no change in
the organizational and governing documents of the Borrower since the tender of
the Secretary’s Certificate effective October 19, 2007, nor has there been
a change in the officers of the
Borrower since that time. Each Borrower represents and warrants that the person
executing this Agreement has been properly authorized and directed to do so, as
set forth on the Exhibits hereto.

 

14.6 Independent Advice. This Agreement
is made at the request of and as an accommodation to the Borrower. The Borrower
has either been advised by independent legal counsel of its choice or knowingly
and voluntarily elected not to rely on the advice of counsel. Borrower has
independently evaluated its legal and business options prior to entering into
this Agreement. Borrower is not relying on Lenders or Administrative Agent for
legal or business advice. This Agreement represents the free and voluntary act
of Borrower.

 

Section 15. Affirmation of Credit Agreement, Further References, Affirmation of
Security Interest. The Lenders
and each Borrower acknowledge and affirm that the Credit Agreement, as
previously amended and hereby further extended, is hereby ratified and
confirmed in all respects and all terms, conditions and provisions of the
Amended Credit Agreement shall remain unmodified and in full force and effect.
All references in any document or instrument to the Credit Agreement shall
refer to the Amended Credit Agreement as extended. Each Borrower confirms to
the Administrative Agent and the Lenders that the Obligations are and continue
to be secured by the security interests granted by the Borrowers in favor of
the Administrative Agent for the benefit of the Administrative Agent and the
Lenders under the Security Documents, and all of the terms, conditions,
provisions, agreements, requirements, promises, obligations, duties, covenants
and representations of the Borrowers under such documents and any and all other
documents and agreements entered into with respect to the obligations under the
Amended Credit Agreement are incorporated herein by reference and are hereby
ratified and affirmed in all respects by each Borrower.

 

Section 16. Merger and Integration, Superseding Effect. This
Agreement, from and after the date hereof, embodies the entire agreement and
understanding between the parties hereto and supersedes all prior oral and
written agreements, including any and all drafts of this

 

6

 

Agreement which may have been considered by the parties hereto, on the
same subjects by and between the parties hereto, occurring after the execution
of the Second Amendment, which have has merged into this Agreement. This
Agreement shall control with respect to the specific subjects herein.

 

Section 17. Severability. Whenever
possible, each provision of this Agreement and any other statement, instrument
or transaction contemplated hereby or thereby or relating hereto or thereto
shall be interpreted in such manner as to be effective, valid and enforceable
under the applicable law of any jurisdiction, but, if any provision of this
Agreement or any other statement, instrument or transaction contemplated hereby
or thereby or relating hereto or thereto shall be held to be prohibited,
invalid or unenforceable under the applicable law, such provision shall be
ineffective in such jurisdiction only to the extent of such prohibition,
invalidity or unenforceability, without invalidating or rendering unenforceable
the remainder of such provision or the remaining provisions of this Agreement
or any other statement, instrument or transaction contemplated hereby or
thereby or relating hereto or thereto in such jurisdiction, or affecting the
effectiveness, validity or enforceability of such provision in any other
jurisdiction.

 

Section 18. Legal Expenses. As provided
in Section 9.2 of the Credit Agreement, the Borrowers agree to reimburse
the Administrative Agent, upon request, for all reasonable out-of-pocket
expenses (including attorney fees and legal expenses of Kalina, Wills, Gisvold, &
Clark PLLP, counsel for the Administrative Agent) incurred in connection with
the negotiation, preparation and execution of this Agreement and all other
documents negotiated, prepared and executed in connection therewith, and in
enforcing the obligations of the Borrowers under this Agreement, and to pay and
save the Administrative Agent and Lenders harmless from all liability for, any
stamp or other taxes which may be payable with respect to the execution or
delivery of this Agreement and exhibits, which obligations of the Borrowers
shall survive any termination of the Amended Credit Agreement.

 

Section 19. Headings. The headings of
various sections of this Agreement have been inserted for reference only and
shall not be deemed to be a part of this Agreement.

 

Section 20. Counterparts. This Agreement
may be executed in several counterparts as deemed necessary or convenient, each
of which, when so executed, shall be deemed an original.

 

Section 21. Governing Law. AT THE OPTION
OF THE ADMINISTRATIVE AGENT, THIS
AGREEMENT MAY BE ENFORCED IN ANY FEDERAL COURT OR COLORADO STATE COURT
SITTING IN CITY OR COUNTY OF DENVER; AND EACH BORROWER CONSENTS TO THE
JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN
SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT ANY BORROWER COMMENCES ANY ACTION
IN ANOTHER JURISDICTION OR VENUE UNIDER ANY TORT OR CONTRACT THEORY ARISING
DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT, THE
ADMINISTRATIVE AGENT AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE
TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH
TRANSFER CANNOT BE ACCOMPLISHED UNDER

 

7

 

APPLICABLE
LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.

 

Section 22. Waiver of Jury Trial. EACH BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

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

 

 

	
   

  	
  GOLDEN OVAL EGGS, LLC,
 as a Borrower
  and the Borrowers’ Agent

  
	
   

  	
   

  
	
   

  	
  By
  :

  	
    /s/ Thomas A. Powell

  
	
   

  	
  Thomas
  A. Powell, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MIDWEST INVESTORS OF IOWA, 

  
	
   

  	
  COOPERATIVE, as a Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By
  :

  	
    /s/ Thomas A. Powell

  
	
   

  	
  Thomas
  A. Powell, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address
  for the Borrowers

  For Purposes of Notice:

  	
  GOECA, LP, as a Borrower

  By its General Partner GOEMCA, Inc.

  
	
  1800
  Park Avenue East

  	
   

  
	
  Renville,
  MN 56284

  	
  By
  :

  	
    /s/ Thomas A. Powell

  
	
  Fax:
  (320) 329-3276

  	
  Thomas
  A. Powell, Chief Financial Officer

  
	
  Attention:Thomas
  A. Powell

  	
   

  

 

8

 

	
   

  	
  COBANK, ACB, as a Lender and as the

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ Ronald P. Seigley

  
	
   

  	
  Name:

  	
        RONALD P. SEIGLEY

  
	
   

  	
  Title:

  	
          VICE PRESIDENT

  
	
   

  	
   

  
	
   

  	
  Address for all notices:

  
	
   

  	
  5500 South Quebec Street

  
	
   

  	
  Greenwood Village, CO 80111

  
	
   

  	
  PO. Box 5110

  
	
   

  	
  Denver, CO 80217

  
	
   

  	
  Attention: Ron Seigley

  
	
   

  	
  Fax: (303) 740-4021

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  METROPOLITAN LIFE INSURANCE

  
	
   

  	
  COMPANY, as a Bank and Lender (as to the
  Short

  
	
   

  	
  Term Revolving Note)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for all notices:

  
	
   

  	
  4401 Westown Parkway, Suite 220

  
	
   

  	
  West Des Moines, IA  50266

  
	
   

  	
  Fax: (515) 223-0757

  
	
   

  	
  Attention: Tony Jennings

  
								

 

9

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