TWELFTH AMENDMENT TO CREDIT AGREEMENT
THIS TWELFTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment")is dated as of
March 24, 2000 by and between XXXXXXXXX FOODS VENTURE, L. P., a Texas limited
partnership (the "Borrower"), PNC BANK, NATIONAL ASSOCIATION, a national banking
association, as Agent (the "Agent")for the Lenders under the below-defined
Credit Agreement, THE FIFTH THIRD BANK OF WESTERN OHIO, an Ohio state banking
corporation, and PNC BANK, NATIONAL ASSOCIATION, a national banking association
(each individually a "Lender" and collectively, the "Lenders").
WITNESSETH:
WHEREAS, the Borrower, the Agent and the Lenders entered into a Credit
Agreement dated June 13, 1994, which was subsequently amended by an Amendment to
Credit Agreement dated March 3 1, 1995, a Second Amendment to Credit Agreement
dated April 20, 1995, a Third Amendment to Credit Agreement dated July 11, 1995,
a Fourth Amendment to Credit Agreement dated November 7, 1995, a Fifth Amendment
and Waiver Agreement dated May 9, 1996, a Sixth Amendment to Credit Agreement
dated as of June 30, 1997, a Seventh Amendment and Waiver Agreement dated as of
March 26, 1998, an Eighth Amendment to Credit Agreement dated July 1, 1998, a
Ninth Amendment to Credit Agreement dated as of May 3, 1999, a Tenth Amendment
to Credit Agreement dated as of November 1, 1999 and an Eleventh Amendment to
Credit Agreement dated as of January 1, 2000 (collectively, the "Credit
Agreement")which evidences the Borrower's obligations for one or more loans or
other extensions of credit (the "Obligations'.'); and
WHEREAS, the Borrower, the Agent and the Lenders desire to amend the Credit
Agreement as provided for below;
NOW, THEREFORE, in consideration of the mutual covenants herein contained
and intending to be legally bound hereby, the parties hereto agree as follows:
1. The Credit Agreement is amended as follows:
1.1 Section 2.1(c)of the Credit Agreement is deleted in its entirety and
replaced with the following: "Subject to the Default Rate, all
Revolving Loans outstanding from time to time shall bear interest at a
rate per annum of 1%plus the Prime Rate of Agent; provided, however,
that the aggregate outstanding balance of Revolving Loans in excess of
$2,500,000 will bear interest at a rate per annum of 2%plus the Prime
Rate of Agent."
1.2 Section 2.1(e)of the Credit Agreement is amended to delete "March 31,
2000" from the first sentence thereof and to insert "June 30, 2000" in
its place.
1.3 The first sentence of Section 2.8 of the Credit Agreement is amended
in its entirety as follows:
"For purposes of this Agreement, the term "Borrowing Base" shall mean
an amount equal to the sum of (i)85%of the net amount of "Eligible
Accounts Receivable," as hereinafter defined, plus (ii)50%of the value
of Borrower's "Eligible Inventory," as hereinafter defined, but in no
event shall the amount of Eligible Inventory for purposes of
determining the Borrowing Base exceed $1,250,000.00, &(iii)the
applicable Overadvance Amount (as defined below). As used herein,
"Overadvance Amount" will mean (A)$900,000.00 from the date of the
Twelfth Amendment to Credit Agreement through April 30,2000,
(B)$800,000.00 during the period of May 1, 2000 through May 3 1, 2000
and (C)$700,000.00 from and after June 1, 2000, subject to the right
of the Lenders to reduce the Overadvance Amount in their sole
discretion."
1.4 The third sentence of Section 4.9 (Fiscal Year; Partnership Interests;
Distributions)of the Credit Agreement is amended in its entirety as
follows: "The Borrower will not declare or pay any distributions to
its partners or redeem any partnership interests; provided that for
the fiscal year ending December 31, 1999, the Borrower may make
distributions to its partners in an aggregate amount not to exceed S
132,000."
1.5 Effective as of December 3 1, 1999, Section 4.12 of the Credit
Agreement is deleted in its entirety and replaced with the following:
"4.12 Cash Flow Coverage Ratio. The Borrower will not permit the ratio
of the Borrower's Cash Flow to the Borrower's Current Maturities of
Long Term Debt plus interest expense plus distributions to the
Borrower's partners to be less than the following: (i)0.55 to 1.0 for
the 12-month period ending December 3 1, 1999; (ii)0.50 to 1 .O for
the 3-month period ending March 3 1, 2000; (iii)1 .O to 1 .O for the
6-month period ending June 30, 2000; (iv)1.25 to 1.0 as of September
30, 2000 (calculated on a 12-month trailing basis)or (v)1.25 to 1 .O
as of October 3 1,200O and as of the end of each month thereafter'in
each case calculated on a 12-month trailing basis."
1.6 Effective as of December 31, 1999, Section 4.13 of the Credit
Agreement is deleted in its entirety and replaced with the following:
"4.13 Current Ratio. The Borrower will not pennit the ratio of the
Borrower's Current Assets to the Borrower's Current Liabilities to be
less than 1 .O to 1 .O at any time."
1.7 Effective as of December 3 1, 1999, Section 4.15 of the Credit
Agreement is deleted in its entirety and replaced with the following:
"4.15 Minimum Tangible Net Worth. The Borrower will not permit the
Borrower's Tangible Net Worth plus Subordinated Indebtedness to be
less than $7,800,000.00 at any time."
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1.8 Effective as of December 31, 1999, Section 4.23 of the Credit
Agreement is deleted in its entirety and replaced with the following:
"4.23 Canital Exnenditures. The Borrower will not make Capital
Expenditures which, when calculated in accordance with generally
accepted accounting principles, would exceed $250,000 in the aggregate
duringany fiscal year; provided that for the fiscal year ending
December 3 1, 1999, Borrower may make Capital Expenditures in an
aggregate amount not to exceed $[801,000]. Unexpended amounts from the
prior fiscal year may not be carried forward to the next fiscal year."
2. Each Lender waives any defaults under Sections 4.9, 4.12, 4.13, 4.15 and
4.23 of the Credit Agreement occurring prior to the date of this Amendment
and specifically disclosed to the Agent in writing. The waivers set forth
in this Section 2 will relate only to the specific matters covered hereby
and in no event will any Lender be under any obligation to provide
additional waivers with regard to those items or any other provision of the
Credit Agreement, any Note or any of the other Loan Documents.
3. Any and all references to the Credit Agreement in any other Loan Documents
shall be deemed to refer to the Credit Agreement as amended hereby. Any
initially capitalized terms used in this Amendment without definition shall
have the meanings assigned to those terms in the Credit Agreement.
4. This Amendment is deemed incorporated into each of the Loan Documents. To
the extent that any term or provision of this Amendment is or may be deemed
expressly inconsistent with any term or provision in any Loan Document, the
terms and provisions hereof shall control.
5. The Borrower hereby represents and warrants that (a)all of its
representations and warranties in the Loan Documents are true and correct,
and (b)this Amendment has been duly authorized, executed and delivered and
constitutes its legal, valid and binding obligation, enforceable in
accordance with its terms.
6. The Borrower acknowledges and agrees that the Lenders shall have no further
obligation to make advances under the Revolving Loans and may in their sole
discretion, immediately terminate the Revolving Loans, accelerate payment
of the outstanding principal balance of the Revolving Note and exercise all
of their rights and remedies under the Credit Agreement and each of the
other Loan Documents without any further prior notice to the Borrower.
7. The Borrower and the Lenders agree that no forbearance, delay or inaction
by the Lenders in the exercise of their rights and remedies, and no
continuing performance by the Lenders or the Borrower under the Credit
Agreement: (a)shall constitute (i)a modification or an alteration of the
terms, conditions or covenants of the Credit Agreement or any other Loan
Document, all of which remain in full force and effect; or (ii)a waiver,
release or limitation upon the Lenders'exercise of any of their rights and
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remedies thereunder, all of which are hereby expressly reserved; or
(b)shall relieve or release the Borrower in any way from any of its duties,
obligations, covenants or agreements under the Credit Agreement or the
other Loan Documents or from the consequences of the Events of Default
described above or any other Event of Default thereunder or (c)shall
obligate the Lenders to continue to make advances in the future under the
Revolving Loans or the Credit Agreement. Further, the Lenders are not
obligated to waive the Events of Default described above or any other
Events of Default or defaults, whether now existing or which may occur
after the date of this Amendment.
8. The Borrower hereby confirms that any collateral for the Obligations,
including but not limited to liens, security interests, mortgages, and
pledges granted by the Borrower or third parties (if applicable), shall
continue unimpaired and in full force and effect.
9. The Borrower represents and warrants that it does not have any claims,
counterclaims, setoffs, actions or causes of action, damages or liabilities
of any kind or nature whatsoever whether at law or in equity, in contract
or in tort, whether now accrued or hereafter maturing (collectively,
"Claims")against the Lenders or the Agent, their respective direct or
indirect parent corporations or any direct or indirect affiliates of such
parent corporation, or any of the foregoing's respective directors,
officers, employees, agents, attorneys and legal representatives, or the
successors or assigns of any of them (collectively, "Lender Parties"), that
directly or indirectly arise out of, are based upon or are in any manner
connected with any Prior Related Event. As an inducement to the Lenders and
the Agent to enter into this Amendment, the Borrower on behalf of itself
and all of its successors and assigns hereby knowingly and voluntarily
releases and discharges all Lender Parties from any and all Claims, whether
known or unknown, that directly or indirectly arise out of, are based upon
or are in any manner connected with any Prior Related Event. As used
herein, the term "Prior Related Event" means any transaction, event,
circumstance, action, failure to act, occurrence of any sort or type,
whether known or unknown, which occurred, existed, was taken, permitted or
begun at any time prior to the date of this Amendment or occurred, existed,
was taken, was permitted or begun in accordance with, pursuant to or by
virtue of any of the terms of the Credit Agreement or any documents
executed in connection with the Credit Agreement or which was related to or
connected in any manner, directly or indirectly, to any of the Loans.
10. This Amendment will be binding upon and inure to the benefit of the
Borrower, the Agent and the Lenders and their respective successors and
assigns.
11. Except as amended hereby, the terms and provisions of the Credit Agreement
and the other Loan Documents remain unchanged and in full force and effect.
The Borrower expressly ratifies and confirms the confession of judgment and
waiver of jury trial provisions.
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Executed as of the date first written above.
XXXXXXXXX FOODS VENTURE, L. P.,
a Texas limited partnership
By: G/W FOODS, INC., its general partner,
a Texas corporation .
By: /s/Xxxxxx X. Xxxxxxxxx
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Print Name: Xxxxxx X. Xxxxxxxxx
Title: President
PNC BANK, NATIONAL ASSOCIATION, as Agent
By: /s/Xxxxxxx X. Xxxxx
----------------------
Print Name: Xxxxxxx X. Xxxxx
Title: Vice President
FIFTH THIRD BANK OF WESTERN OHIO,
as a Lender
By: /s/Xxxxx Xxxxx
------------------
Print Name: Xxxxx Xxxxx
Title: Vice President
PNC BANK, NATIONAL ASSOCIATION,
as a Lender
By: /s/Xxxxxxx X. Xxxxx
-----------------------
Print Name: Xxxxxxx X. Xxxxx
Title: Vice President
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STATE OF Ohio )
) ss:
COUNTY OF Darke )
The foregoing instrument was acknowledged before me this 28th day of March,
2000 by Xxxxxx X. Xxxxxxxxx a duly authorized officer of G/W Foods, Inc., a
Texas corporation, on behalf of the corpora; ion as general partner of Xxxxxxxxx
Foods Venture, L. P., a Texas limited partnership.
/s/Xxxxxx X. Xxxxx
------------------
Printed Name: Xxxxxx X. Xxxxx
Notary Public
My commission expires: Mav 4, 2000
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