AMENDMENT TO CREDIT AGREEMENT AND SECURITY AGREEMENT
Exhibit
10.1
AMENDMENT TO CREDIT
AGREEMENT AND SECURITY AGREEMENT
This
Amendment to Credit and Security Agreement (the “Amendment”) is
entered into as of this 29th day of July, 2010 by and among RCLC, Inc. (formerly
known as Ronson Corporation), a New Jersey corporation (“Parent”), RCPC
Liquidating Corp. (formerly known as Ronson Consumer Products Corporation), a
New Jersey corporation (“RCPC”), Ronson
Aviation, Inc., a New Jersey corporation (“RAI”) and RCC Inc.
(formerly known as Ronson Corporation of Canada Ltd.), an Ontario corporation
(“Ronson
Canada”) (RCPC and RAI are collectively and individually referred to as
the “Domestic
Borrower” or “Domestic Borrowers”;
the Domestic Borrower and Ronson Canada are collectively and individually
referred to as the “Borrower” or “Borrowers”, and the
Borrowers, together with Parent are collectively and individually referred to as
the “Obligors”)
and Xxxxx Fargo Bank, National Association (“Lender”), acting
through its Xxxxx Fargo Business Credit operating division.
Borrowers
and Lender are parties to a certain Credit and Security Agreement dated as of
May 30, 2008 (as amended, modified, supplemented or restated from time to time,
the “Credit
Agreement”), relating to financing by Lender to
Borrowers. Capitalized terms used but not specifically defined herein
shall have the meanings provided for such terms in the Credit
Agreement.
Certain
Events of Default occurred under the Credit Agreement and, as a result thereof,
Lender and Borrowers entered into that certain Forbearance Agreement dated as of
March 29, 2009 (as amended modified, supplemented or restated from time to time,
the “Forbearance
Agreement”), whereby Lender agreed to forbear from exercising certain of
its rights and remedies available under the Loan Documents as a result of the
Existing Events of Default.
The
Forbearance Agreement expired pursuant to its terms on July 26, 2010, resulting
in a Termination Event (as such term is defined in the Forbearance Agreement)
thereunder.
On
February 2, 2010, Parent, RCPC and Ronson Canada consummated a transaction (the
“Zippo Sale”)
pursuant to which RCPC and Ronson Canada sold substantially all of their assets
to Zippo Manufacturing Company and Nosnor, Inc., pursuant to an Asset Purchase
Agreement dated as of October 5, 2010. The net proceeds of the Zippo
Sale were delivered to Lender in accordance with the terms of that certain
letter agreement by and among Lender and Obligors dated as of February 2, 2010
and applied by Lender in accordance with and subject to the Thirteenth Amendment
to Forbearance Agreement dated as of April 1, 2010.
Obligors
have requested that Lender amend certain terms and conditions of the Credit
Agreement notwithstanding the existence of the Existing Events of Default and
the occurrence of the Termination Event under the Forbearance
Agreement.
Lender
has considered Borrowers’ requests and, in an effort to continue working with
Borrowers, hereby agrees to amend the Credit Agreement on the terms and
conditions set forth below.
“Accommodation
Overadvance Limit” means an amount up to $1,650,000; provided,
however, that Borrower acknowledges and agrees that if the full of amount of the
Accommodation Overadvance Limit is not drawn by 5:00 p.m., July 30, 2010, the
Accommodation Overadvance Limit shall automatically be reduced to
$1,500,000.
(a) execution
and delivery by the Obligors and Lender of this Agreement; and
(b) such
other matters as Lender may reasonably require.
whatsoever
to the payment of the Obligations or the performance of their obligations under
Loan Documents.
[Signature
pages follow]
RCLC,
INC. (f/k/a RONSON CORPORATION)
By: /s/ Xxxx
Xxxxxxx
Print
Name: Xxxx Xxxxxxx
Print
Title: Chief Restructuring Officer
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RCPC
LIQUIDATING CORP. (f/k/a/ RONSON
CONSUMER PRODUCTS CORPORATION) By: /s/ Xxxx
Xxxxxxx
Print
Name: Xxxx Xxxxxxx
Print
Title: Chief Restructuring Officer
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RONSON
AVIATION, INC.
By: /s/ Xxxx
Xxxxxxx
Print
Name: Xxxx Xxxxxxx
Print
Title: Chief Restructuring Officer
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RCC
INC. (f/k/a RONSON CORPORATION OF
CANADA LTD.) By: /s/ Xxxx
Xxxxxxx
Print
Name: Xxxx Xxxxxxx
Print
Title: Chief Restructuring Officer
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XXXXX
FARGO BANK, NATIONAL ASSOCIATION
By:
/s/ Xxxxxxx X. Xxxx, counsel to Xxxxx Fargo Bank,
National Association
Xxxxxxx
X. Xxxx, counsel to Xxxxx Fargo Bank, National
Association
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