Document:

Prepared by MerrillDirect

Exhibit 10.2

 

AMENDMENT TO LOAN AGREEMENT

CoBank, ACB

 

	
  Borrower:
  	
  Application No. _________
  

DAKOTA
GROWERS PASTA COMPANY

CARRINGTON, NORTH DAKOTA

The parties hereby agree to amend Loan Agreement, Note
Nos. A637S01A / 39181NP / 39182NP / 33061 / 35062, as follows:

	
  1.
  	
  Seasonal Loan, Note No.
  A637S01A, in the amount of $15,000,000.00 is hereby replaced by Seasonal
  Loan, Note No. A637S01B, in the amount of $19,000,000.00.  All references to Seasonal Loan, Note
  A637S01A, in the amount of $15,000,000.00 are hereby deemed to be references
  to Seasonal Loan, Note No. A637S01B, in the amount of $19,000,000.00.

  
	
  2.
  	
  Borrower agrees to pay
  the Bank an amendment fee of $5,000.00 payable upon execution of this
  Amendment.
  

All other terms and conditions remain as stated in the
Loan Agreement.

BY DIRECTION of the loan committee this January 3, 2001.

	 
  	
  CoBank, ACB

  
	 
  	
  By
  _________________________

  
	 
  	 
  
	 
  	
  Its
  _________________________

  

ACCEPTED AND AGREED TO:

DAKOTA GROWERS PASTA COMPANY

CARRINGTON, NORTH DAKOTA

 

	
  By  ____________________________

   
  	 
  
	
  Its  ____________________________

  	 
  
	
  Date____________________________

  	 
  

 

 

 

ACKNOWLEDGED BY AND AGREED TO:

PRIMO PIATTO, INC.

NEW HOPE, MINNESOTA

 

	
  By  ____________________________

  	 
  
	
  Its  ____________________________

  	 
  
	
  Date____________________________

  	 
  

 

 

NONNEGOTIABLE NOTE OF

DAKOTA GROWERS PASTA COMPANY

CARRINGTON, NORTH DAKOTA

Note No. A637S01B

	
  $19,000,000.00
  	
  Date: January 3, 2001
  

          For value
received, the undersigned (Maker) promises to pay to CoBank, ACB (the “Bank”),
at its office in Denver, Colorado, the sum of Nineteen Million and no/100
Dollars ($19,000,000.00) with interest on the unpaid balance at a variable rate
of interest which may increase or decrease as the Bank may, from time to time,
determine as provided in the Loan Agreement dated December 5, 2000, as the same
may have been or may be amended from time to time, between the Maker and the
Bank. The unpaid balance of this note, with accrued interest, and required
equity purchases, may be paid at any time subject to a prepayment penalty, if
any, in accordance with the terms of the Loan Agreement between the Bank and
Maker.

          This note
shall at all times evidence and constitute prima facie proof of the
indebtedness of the Maker to the Bank or its successors or assigns, of such
amount of money (not in excess of the amount of the principal indebtedness
stated above plus accrued interest and required equity purchases) as shown to
be owing by the records of the Bank, or its successors or assigns.

          In the
event that suit is brought on this note, the Maker agrees to pay such
reasonable attorneys' fees and costs of collection as permitted by law to be
charged.

          The Maker
hereby waives presentment for payment, demand, protest, notice of protest, and
notice of dishonor and nonpayment of this note.

          If
requested by the Bank, its successors or assigns, the Maker agrees to deliver
in substitution for this note, a negotiable note for the amount of the unpaid
balance of Maker's indebtedness, plus accrued interest and required equity
purchases.

	
  DAKOTA GROWERS PASTA COMPANY
  
	 
  
	
  By_______________________________
  
	
  Its President
  
	 
  
	
  By________________________________
  
	
  Its SecretaryPrepared by MerrillDirect

Exhibit
10.3

CONFIDENTIAL
TREATMENT REQUESTED. CERTAIN PORTIONS HAVE BEEN OMITTED

 AND HAVE BEEN FILED SEPARATELY WITH THE
COMMISSION.

DISTRIBUTION AND MARKETING
ALLIANCE AGREEMENT

 

          Agreement
made as of the Fifteenth day of AUGUST, 2000(the “Effective Date”) by and
between Gruppo Euricom, a corporation whose principal offices are located at
Via Stazione, 119 Valle Lomellina (PV) (hereinafter referred to as “EU”) and
Dakota Growers Pasta Company, a North Dakota, USA corporation whose principal
offices are located at One Pasta Avenue, Carrington, North Dakota (hereinafter
referred to as “DGPC”).

	
  Article I – Appointment and Exclusivity
  
	
  1.1
  	
  EU
  hereby grants DGPC exclusive distribution rights to EU’s pasta and rice
  (hereinafter referred to as Products) in the United States of American and
  Canada (hereinafter defined as the Territory), except as defined in Article
  1.5.

  
	
  1.2
  	
  Sales
  to DGPC will be effected through DGPC’s designated importer, Sinco, Inc.
  (hereinafter referred to as Sinco), whose principal offices are located at
  750 Pleasant St. Belmont, Massachusetts USA. 
  Pricing and terms of the sale of EU’s products to DGPC by Sinco are
  covered by a separate agreement between Sinco and DGPC, a copy of which will
  be on file with DGPC, Sinco and EU.
  
	 
  	 
  	
  1.2.1
  	
  Any
  breach for cause of the agreement between Sinco and DGPC will neither cancel
  nor reduce DGPC’s obligations towards EU as stated in this contract.  This is to underline the reciprocal
  commitments between DGPC and EU.

  
	
  1.3
  	
  For
  the duration of this Agreement, DGPC will not distribute within the Territory
  any same Products manufactured in Italy by any supplier other than EU, unless
  agreed to by EU in advance and in writing.

  
	
  1.4
  	
  EU
  will not distribute Products in the Territory, either directly or indirectly,
  to or through any other company other than DGPC.

  
	
  1.5
  	
  EU
  currently supplies private label Italian pasta to Trader Joe’s, a California
  grocery chain (hereinafter referred to TJ). 
  TJ’s business with EU is covered by a separate contract with a
  separate U.S. importer which grants them exclusive rights to import and
  distribute EU’s pasta to TJ.  This
  contract is valid through??.  DGPC
  will refrain from offering Italian pasta to TJ from EI or from any other
  Italian pasta manufacturer while the EU’s contract with their TJ pasta
  importer remains in force.  DGPC is
  free to sell their own U.S. produced pasta to TJ.  TJ is the only exception to DGPC’s exclusive distribution
  rights in the Territory.

  
	
  1.6
  	
  DGPC
  will distribute Products under customer private brands, DGPC’s brand or
  brands, and or EU’s brand or brands. 
  EU will retain the trademarks for their own brands, but grants DGPC
  the exclusive right to use EU’s brand sin the Territory.  Should the Parties decide to market a new
  brand for EU’s Products in the Territory, DGPC and EU will equally own such
  brand.

  
	
  1.7
  	
  DGPC
  will distribute to retail stores, foodservice distributors, restaurant
  chains, and food manufacturers.

  
	
  1.8
  	
  Distribution
  of EU’s rice by DGPC in the Territory will be subject to terms and conditions
  stated in a separate agreement which the Parties undertake to prepare within
  90 days from the signing of this agreement. 
  Failure to sign an agreement on rice shall not invalidate this
  Agreement whose principal concerns is pasta.
  

Article 2 – Volume

	
  2.1
  	
  DGPC
  agrees to use its best efforts to purchase the below-specified volume of
  pasta from EU.  These volumes
  represent the minimum volume obligation by DGPC to EU.  Both parties may mutually agree to amend
  these quantities from time to time.
  
	 	 
  	
  Annual
  Volume by 31 December 2002: *** pounds (*** mt)
  
	 	 
  	
  Annual
  Volume by 31 December 2003: *** pounds (*** mt)
  
	 	 
  	
  Annual
  Volume Subsequent Years: *** pounds (*** mt)
  
	
  2.2
  	
  In
  the event that the volumes fail to reach *** pounds by 31 December 2002,
  and/or *** pounds by 31 December 2003, and all subsequent years, EU may elect
  to terminate the agreement.  In the
  event that DGPC fails to purchase at least *** pounds per year by year three
  (3), EU may elect to terminate the agreement or to enter into a non-exclusive
  agreement with DGPC.
  
	 
  	
  2.2.1
  	
  Should
  EU exercise their right to terminate this agreement per Article 2.2, DGPC
  agrees to continue to market EU’s products to customers that DGPC and EU had
  established together while this agreement was in effect, according to the
  same terms concerning service, quality, and competitive pricing that are in
  force in this agreement.

  
	 
  	
  2.2.2
  	
  Should
  Article 2.2.1 come into force, DGPC may not sell Products on behalf of any
  other company to those customers, and EU may not sell Products to those
  customers other that through DGPC.  If
  EU exercises their rights in Article 2.2, EU may pursue new business within
  the Territory independent of DGPC, and DGPC may pursue new Italian business
  within the Territory independent of EU, but for the above mentioned
  previously established customers.
  
				

(*
- Confidential treatment requested.)

Article 3 – Quality

	
  3.1
  	
  EU
  guarantees that all products supplied to DGPC will be packed according to the
  specifications established between DGPC and EU.

  
	
  3.2
  	
  EU
  guarantees that all products supplied to DGPC will conform to regulations of
  the government within the Territory.

  
	
  3.3
  	
  DGPC
  is responsible for the legal copy on any of EU’s packaging on EU’s Products
  distributed by DGPC in the Territory.

  
	
  3.4
  	
  DGPC’s
  quality assurance department may inspect any and all EU factories that are
  engaged in supplying DGPC. 
  Inspections shall be mutually planned and agreed upon in advance by
  EU.
  

 

Article 4 – Advertising and
Sales Promotion

	
  4.1
  	
  DGPC
  will be responsible for the development of marketing materials on Products
  sold in the Territory.  DGPC may
  modify or ask EU to modify existing EU marketing materials.  DGPC will obtain prior written approval
  from EU prior to distribution of any material bearing the EU name.

  
	
  4.2
  	
  EU
  may include DGPC in EU’s marketing materials.  EU will obtain prior written approval from DGPC prior to
  distribution of any material bearing the DGPC name.

  
	
  4.3
  	
  EU
  will provide DGPC with a reasonable amount of product samples at no charge
  for the purpose of sales presentations.

  
	
  4.4
  	
  EU
  will allow visits by DGPC customers, provided DGPC or its designated agent
  accompanies them.
  

Article 5 – Market Information

	
  5.1
  	
  EU
  will provide DGPC with complete and full disclosure of EU’s current business
  in the Territory as of the date of this Agreement.

  
	
  5.2
  	
  EU
  will advise DGPC of any business within the Territory that is currently in
  negotiations and will involve DGPC in these negotiations with the goal of
  gaining the distribution for DGPC.

  
	
  5.3
  	
  EU
  and DGPC will develop joint strategies for marketing the Products in the
  Territory.  EU will work with DGPC and
  their sales department.  Such help
  could include sales calls with DGPC personnel on customers within the
  Territory and EU’s participation in DGPC’s marketing meetings wherein such
  meetings are called to specifically discuss the sales and distribution of
  EU’s products

  .
  
	
  5.4
  	
  DGPC
  will develop a reporting system to keep EU abreast of DGPC’s activities on
  EU’s Products.  This information will
  include sales volumes by customer as well as sales progress and any other
  information that the Parties wish to include.

  
	
  5.5
  	
  EU
  and DGPC agree to enter into an exchange of strategic information as it
  relates to their business together. 
  Such an exchange may include visits to one another’s facilities.  Each party shall be entitled to determine
  what strategic information to disclose to the other.
  

Article 6 – Expenses

	
  6.1
  	
  EU
  and DGPC are each responsible for their own expenses within each party’s area
  of endeavor.  Either party may wish to
  participate or share in the other party’s expense if it is agreed that such
  participation will enhance their joint or individual business objectives.
  

Article 7 – Nondisclosure

	
  7.1
  	
  Neither
  Party shall disclose to any third party any information relating to the
  other’s business or methods of carrying on business or any other information
  it receives from the other party that is considered confidential.  All such information shall be returned
  upon termination or expiration of the Agreement.
  

Article 8 – Term and Termination

	
  8.1
  	
  The
  term of this agreement is six (6) years, unless either party breach mutually
  agreed upon covenants.  The
  distribution alliance is automatically extended for an additional two (2)
  years after every five (5) if there is not a termination for cause within the
  terms or if the Parties mutually agree to terminate the Agreement.

  	 
	 	
  8.2
  	
  If
  a breach occurs, the offended party shall notify the other in writing, and
  the other has 30 days to correct the breach.

  	 
	
  8.3
  	
  If
  the agreement is terminated and the Parties agree to continue on a
  non-exclusive basis, DGPC may continue to distribute EU’s Products to
  customers attained during this agreement. 
  As long as DGPC continues to supply EU’s products to said customers,
  EU may not sell, either directly or indirectly, those same customers through
  any other company other than DGPC.

  	 
	
  8.4
  	
  In
  the event of termination, the Parties are free to act independently to sell
  or distribute their own products in the Territory, except as stated in
  Article 8.3.

  	 
	
  8.5
  	
  In
  the event of termination, sales of any brand or brands owned equally by both
  parties will be phased out.  One party
  may acquire the rights and ownership of said brand or brands from the other
  party.  In such case, the party
  acquiring the brand or brands has the right to continue selling that brand in
  the Territory.

  	 
	
  8.6
  	
  If
  upon termination DGPC is distributing Products under an EU registered brand,
  EU will allow DGPC 90 days or some mutually agreed reasonable amount of time
  to phase out of said brand.

  	 
	
  8.7
  	
  Notwithstanding
  any other provisions of this Agreement, either EU or DGPC, at its option, may
  terminate this Agreement upon thirty (30) days written notice in the event of
  any of the following:

  	 
	 	
  8.6.1
  	
  DGPC
  or EU becomes unable to pay its debts in the ordinary course of business.
  
	 	
  8.6.2
  	
  DGPC
  or EU enters into liquidation or bankruptcy or has a receiver appointed.
  
	 	
  8.6.3
  	
  DGPC
  may terminate this agreement if EU fails to maintain reasonable industry
  standards concerning competitive pricing, quality, or service.
  
	 	
  8.6.4
  	
  Should
  Sinco, the designated importer, become unable to pay its debts in the
  ordinary course of business, DGPC or EU may elect to appoint a new importer.
  
					

Article 9 – Durum Export

	
  9.1
  	
  As
  a grower-owned cooperative, DGPC may be interested in exporting durum/wheat
  to EU.  EU agrees to allow DGPC
  preferential status in any bids tendered for North American durum, provided
  DGPC meets EU’s quality and price standards.
  

Article 10 – Liaison

	
  10.1
  	
  Sinco
  Inc. and its agent, Andrew & Company with an office in Rome, Italy, will
  serve as a liaison between the parties. 
  Sinco Inc. and Andrew & Co. shall adhere to the obligations and
  bounds of this Agreement.
  

Article 11 – Governing Law

	
  11.1
  	
  This
  Agreement shall be deemed to have been made in the State of North Dakota and
  shall be governed by and interpreted in accordance with the laws of the State
  of North Dakota.  Any disputes not so
  settled shall be finally settled by binding arbitration in Fargo, North
  Dakota, USA, by and under the rules of the American Arbitration Association
  (“AAA”).  There shall be one
  arbitrator, appointed jointly by the Parties.  Should they be unable to agree on a single arbitrator within
  thirty (30) days after notification by one Party to the other, then the
  arbitrator shall chosen by the AAA. 
  The arbitrator is authorized to award costs and fees in accordance
  with his or her assessment of the relative equities and validity and
  reliability of claims and defenses in the controversy.  Both Parties consent to the jurisdiction
  of any court for enforcement of any arbitral award issued hereunder.
  

Article 12 – Assignment

	
  12.1
  	
  This
  Agreement shall be binding upon and shall insure to the benefit of the
  Parties hereto and their respective successors and assigns.  Neither Party shall directly or indirectly
  transfer, assign, or otherwise encumber this Agreement without the prior
  written consent of the other Party.
  

Article 13 – Force Majeure

	
  13.1
  	
  If
  the performance of any obligation under this Agreement is prevented or
  delayed for any cause beyond the reasonable control of the Party whose
  performance is prevented or delayed, such Party shall be excused from
  performance so long as and to the extent that such cause continues to prevent
  or delay performance.  Such defaulting
  Party shall promptly notify the other Party of the existence of such cause
  and shall at all times use its best efforts to resume promptly and complete
  its performance.

  
	
  Article 14 – Entire Agreement
  
	
  14.1
  
  	
  This
  Agreement constitutes the entire Agreement between the Parties.
  

 

	
  Euricom
  S.p.a.
  	
  Dakota
  Growers Pasta Company
  
	 
  	 
  
	
  
  

  
  	
  
  

  
  
	
  Signature
  	
  Signature

  
	
  
  

  
  	
  
  

  
  
	
  Title
  	
  Title

  
	
  
  

  
  	
  
  

  
  
	
  Date
  	
  Date

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