March 22, 2002 Hines Nurseries, Inc. 12621 Jeffrey Road Irvine, CA 92620 Attention: Claudia M. Pieropan Chief Financial Officer Ladies and Gentlemen: Reference is made to that certain Amended and Restated Credit Agreement dated as of June 26, 1998...
Exhibit 10.29
LIMITED WAIVER REGARDING FINANCIAL COVENANTS
March 22, 2002
Xxxxx Nurseries, Inc.
00000 Xxxxxxx Xxxx
Xxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxxxx
Chief Financial Officer
Ladies and Gentlemen:
Reference is made to that certain Xxxxxxx and Restated Credit
Agreement dated as of June 26, 1998 among Xxxxx Nurseries, Inc. and Sun Gro
Horticulture Canada Ltd., as Borrowers, the lenders listed therein, as lenders
(the "Lenders"), Bank of America, N.A., as syndication agent, Xxxxxx Trust and
Savings Bank, as documentation agent, Deutsche Bank Canada, as Canadian agent,
and Bankers Trust Company, as administrative agent (the "Administrative Agent")
(said Credit Agreement, as amended, restated and modified to date, being the
"Credit Agreement", the terms defined therein being used herein as therein
defined).
Borrowers have informed Administrative Agent and Lenders that
as a result of certain reserves taken for the fiscal quarter ending December 31,
2001 in anticipation of the consummation of the Sun Gro Sale in the first fiscal
quarter of 2002, Borrowers do not expect to be in compliance with the Minimum
Consolidated Net Worth covenant set forth in subsection 7.6C of the Credit
Agreement for the fiscal quarter ending December 31, 2001. Accordingly, at the
request of Xxxxxxxxx, the undersigned Lenders, constituting Requisite Lenders
under the Credit Agreement, and Administrative Agent, hereby waive compliance
with the Minimum Consolidated Net Worth covenant set forth in subsection 7.6C of
the Credit Agreement for the fiscal quarter ending December 31, 2001 to the
extent that such covenant would require Borrowers to have a Minimum Consolidated
Net Worth for such fiscal quarter in excess of $88,000,0000.
Without limiting the generality of the provisions of
subsection 10.6 of the Credit Agreement, the waivers set forth herein shall be
limited precisely as written and relate solely to Borrowers' noncompliance with
the provisions of subsection 7.6C for the fiscal quarter ending December 31,
2001 and the waivers provided for herein do not constitute, nor should they be
construed as, a waiver of compliance by Borrowers with respect to (i) subsection
7.6C of the Credit Agreement in any other instance or (ii) any other term,
provision or condition of the Credit Agreement or any other instrument or
agreement referred to therein. The waivers set forth herein shall not prejudice
any right or remedy that Administrative Agent or any Lender may now have (except
to the extent such right or remedy was based upon existing defaults that will
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not exist after giving effect to this waiver) or may have in the future under or
in connection with the Credit Agreement or any other instrument or agreement
referred to therein. Except as expressly set forth herein, the terms, provisions
and conditions of the Credit Agreement and the other Loan Documents shall remain
in full force and effect and in all other respects are hereby ratified and
confirmed.
This waiver may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument. The waiver set forth
herein shall become effective as of the date hereof upon the execution of
counterparts hereof by Loan Parties, Administrative Agent and by Xxxxxxx
constituting Requisite Lenders and receipt by Xxxxxxxxx and Administrative Agent
of written or telephonic notification of such execution and authorization of
delivery thereof.
THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT
LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.
LENDERS:
BANKERS TRUST COMPANY,
as a Lender and as Administrative Agent
By:
-------------------------------
Title:
-------------------------------
DEUTSCHE BANK AG, NEW YORK BRANCH,
as Issuing Lender
By:
-------------------------------
Title:
-------------------------------
DEUTSCHE BANK CANADA,
as Canadian Agent
By:
-------------------------------
Title:
-------------------------------
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BORROWERS:
XXXXX NURSERIES, INC.
By:
-------------------------------
Title:
-------------------------------
SUN GRO HORTICULTURE CANADA LTD.
By:
-------------------------------
Title:
-------------------------------
S-3
LENDERS:
MONUMENT CAPITAL LIMITED,
as Assignee
By: ALLIANCE CAPITAL MANAGEMENT L.P.,
as Investment Manager
By: ALLIANCE CAPITAL MANAGEMENT
CORPORATION, as General Partner
By:
-------------------------
Title:
----------------------
OAK MOUNTAIN LIMITED,
as Assignee
By: ALLIANCE CAPITAL MANAGEMENT L.P.,
as Investment Manager
By: ALLIANCE CAPITAL MANAGEMENT
CORPORATION, as General Partner
By:
--------------------------
Title:
--------------------------
S-4
AIMCO CDO SERIES 2000-A,
as a Lender
By: ALLSTATE LIFE INSURANCE COMPANY
By:
----------------------
Title:
----------------------
ALLSTATE LIFE INSURANCE COMPANY
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
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BANK OF AMERICA, NATIONAL TRUST &
SAVINGS ASSOCIATION,
as a Lender and as Syndication Agent
By:
-------------------------------
Title:
-------------------------------
S-6
BANK OF MONTREAL,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-7
BANK OF NOVA SCOTIA,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-8
BAY VIEW FINANCIAL CORPORATION,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-9
BLACK DIAMOND CLO 2000-1 LTD.,
as a Lender
By: BLACK DIAMOND CAPITAL MANAGEMENT
By:
--------------------------
Title:
--------------------------
BLACK DIAMOND NTERNATIONAL FUNDING,
LTD., as a Lender
By:
------------------------------------
Title:
---------------------------------
S-10
BOEING CAPITAL CORPORATION,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-11
KZH CYPRESSTREE-1 LLC,
as a Lender
By: CHASE MANHATTAN BANK
By:
----------------------
Title:
----------------------
KZH SHOSHONE LLC,
as a Lender
By: CHASE MANHATTAN BANK
By:
----------------------
Title:
----------------------
S-12
CREDIT AGRICOLE INDOSUEZ,
as a Lender
By:
-------------------------------
Title:
-------------------------------
By:
-------------------------------
Title:
-------------------------------
S-13
CYPRESSTREE INVESTMENT FUND, LLC,
as a Lender
By: CYPRESSTREE INVESTMENT MANAGEMENT
CO., INC.
By:
-------------------------
Title:
-------------------------
CYPRESSTREE INVESTMENT PARTNERS ILLC,
as a Lender
By: CYPRESSTREE INVESTMENT MANAGEMENT
CO., INC.
By:
-------------------------
Title:
-------------------------
CYPRESSTREE - NORTH AMERICAN SENIOR
FLOATING RATE FUND,
as a Lender
By: CYPRESSTREE INVESTMENT MANAGEMENT
CO., INC.
By:
-------------------------
Title:
-------------------------
CYPRESSTREE SENIOR FLOATING RATE FUND,
as a Lender
By: CYPRESSTREE INVESTMENT MANAGEMENT
CO., INC.
By:
-------------------------
Title:
-------------------------
S-14
DRESDNER BANK AG, NEW YORK AND GRAND
CAYMAN BRANCHES,
as a Lender
By:
-------------------------------
Title:
-------------------------------
By:
-------------------------------
Title:
-------------------------------
S-15
FLEET NATIONAL BANK,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-16
FRANKLIN FLOAT RATE TRUST,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-17
FREMONT INVESTMENT & LOAN,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-18
HARCH CLO I LIMITED,
as a Lender
By: HARCH CAPITAL MANAGEMENT, INC.
By:
----------------------
Title:
----------------------
S-19
XXXXXX TRUST AND SAVINGS BANK,
as a Lender and Documentation Agent
By:
-------------------------------
Title:
-------------------------------
S-20
PACIFICA PARTNERS I, L.P.,
as a Lender
By: IMPERIAL CREDIT ASSET MANAGEMENT,
as Investment Manager
By:
-------------------------
Title:
-------------------------
S-21
LASALLE BANK NATIONAL ASSOCIATION,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-22
MASSACHUSETTS MUTUAL - MAPLEWOOD
(CAYMAN) LIMITED,
as a Lender
By: MASSACHUSETTS MUTUAL LIFE INSURANCE
COMPANY
By:
--------------------------
Title:
--------------------------
MASSACHUSETTS MUTUAL - SIMSBURY CLO,
LIMITED, as a Lender
By: MASSACHUSETTS MUTUAL LIFE INSURANCE
COMPANY
By:
--------------------------
Title:
--------------------------
MASSACHUSETTS MUTUAL LIFE INSURANCE
COMPANY
By:
-------------------------------
Title:
-------------------------------
S-23
PNC BUSINESS CREDIT
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
S-24
NATIONAL CITY BANK,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-25
XXXXXXXXXXX HARBOURVIEW CDO II LTD.,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-26
PPM SPYGLASS FUNDING TRUST,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-27
COOPERATIEVE CENTRALE
RAIFFEISEN-BOERENLEENBANK-RABOBANK B.A.,
"RABOBANK NEDERLAND", NEW YORK BRANCH,
as a Lender
By:
-------------------------------
Title:
-------------------------------
By:
-------------------------------
Title:
-------------------------------
S-28
XXXXX XXX & XXXXXXX CLO I LTD.,
as a Lender
By: XXXXX XXX & XXXXXXX INCORPORATED,
as Portfolio Manager
By:
--------------------------
Title:
--------------------------
XXXXX XXX FLOATING RATE LIMITED
LIABILITY COMPANY,
as a Lender
By: XXXXX XXX & XXXXXXX INCORPORATED,
as Advisor
By:
--------------------------
Title:
--------------------------
LIBERTY-XXXXX XXX ADVISOR FLOATING RATE
ADVANTAGE FUND,
as a Lender
By: XXXXX XXX & XXXXXXX INCORPORATED,
as Portfolio Manager
By:
--------------------------
Title:
--------------------------
S-29
SRF TRADING, INC.,
as a Lender
By:
-------------------------------
Title:
-------------------------------
SRF 2000 LLC,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-30
TORONTO - DOMINION (NEW YORK), INC.,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-31
UNION BANK OF CALIFORNIA
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-32
XXXXX FARGO BANK, NA,
as a Lender
By:
-------------------------------
Title:
-------------------------------
S-33
By its execution of a counterpart of this consent and waiver,
each of the undersigned, as additional Loan Parties with respect to the Credit
Agreement hereby acknowledges that it has read this consent and waiver, and
consents to the terms thereof and further hereby confirms and agrees that,
notwithstanding the effectiveness of this consent and waiver, the obligations of
the undersigned under the Loan Documents to which such Loan Party is a party
shall not be impaired or affected and each such Loan Document is, and shall
continue to be, in full force and effect and is hereby confirmed and ratified in
all respects.
XXXXX HORTICULTURE, INC.
By:
-------------------------
Title:
-------------------------
SUN GRO HORTICULTURE INC.
By:
-------------------------
Title:
-------------------------
ENVIRO-SAFE LABORATORIES, INC.
By:
-------------------------
Title:
-------------------------
XXXXXXX XXXXXXXX PARTNERS, L.P.
By: Xxxxxxx Xxxxxxxx Partners,
L.P., its General Partner
By: Xxxxxxx Xxxxxxxx
Partners, Inc.
By:
---------------------------
Title:
------------------------
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