Exhibit 10.01
FIFTH AMENDED FORBEARANCE
AGREEMENT
This FIFTH AMENDED FORBEARANCE AGREEMENT (this
“ Fifth Amended Forbearance
Agreement ”), is dated as of December 3, 2007, is
entered into by and among DDJ Total Return Loan Fund, L.P., as the
Lender (as defined in the Loan Agreement referred to below), The
Wornick Company, a Delaware corporation (the “ Company ”), Right Away Management
Corporation, a Delaware corporation, The Wornick Company Right Away
Division, a Delaware corporation, and The Wornick Company Right
Away Division, L.P., a Delaware limited partnership (each, a
“ Subsidiary ”,
and, collectively, the “ Subsidiaries ”).
RECITALS:
A.
The Company, the Lender (as assignee of Texas State Bank) and the
Subsidiaries are parties to that certain Loan Agreement, dated as
of June 30, 2004 (as amended by the First Amendment thereto dated
as of March 16, 2007, the Second Amendment dated as of November 13,
2007, and as further amended, modified, supplemented or amended and
restated from time to time, the “ Loan Agreement ”).
B.
As of the date hereof, the Events of Default referred to herein as
the “ Specified
Defaults” have occurred and are
continuing.
C.
The Company, the Lender and the Subsidiaries entered into a
Forbearance Agreement dated as of July 16, 2007 (the “
Forbearance Agreement
”) pursuant to which the Lender agreed to forbear from
exercising its rights and remedies under the Loan Agreement during
the Forbearance Period (as defined in the Forbearance
Agreement).
D.
The Company, the Lender and the Subsidiaries entered into a First
Amended Forbearance Agreement dated as of August 13, 2007 pursuant
to which the Forbearance Period was extended through September 12,
2007.
E.
The Company, the Lender and the Subsidiaries entered into a Second
Amended Forbearance Agreement dated as of September 12, 2007
pursuant to which the Forbearance Period was extended through
October 14, 2007.
F.
The Company, the Lender and the Subsidiaries entered into a Third
Amended Forbearance Agreement dated as of October 15, 2007 pursuant
to which the Forbearance Period was extended through October 29,
2007.
G.
The Company, the Lender and the Subsidiaries entered into a Fourth
Amended Forbearance Agreement dated as of October 30, 2007 (the
“ Fourth Amended Forbearance
Agreement ”) pursuant to which the Forbearance Period
was extended through December 3, 2007.
H.
The Forbearance Period (as defined in the Fourth Amended
Forbearance Agreement) under the Fourth Amended Forbearance
Agreement will expire on December 4, 2007 and the Company and
Subsidiaries have asked the Lender to further extend the
Forbearance Period through January 7, 2008.
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I.
The Company and the Subsidiaries entered into a forbearance
agreement with certain holders (the “ Noteholders ”) of the
Company’s 10.875% Senior Secured Notes due 2011 (the “
Notes ”) holding not
less than $100 million in aggregate principal amount of the Notes,
representing not less than 80% of the aggregate principal amount of
the Notes outstanding on July 16, 2007 (the “ Noteholder Forbearance Agreement
”) pursuant to which the Noteholders agreed to forbear from
exercising their rights and remedies under the Indenture until the
expiration of the Forbearance Period (as defined in the Noteholder
Forbearance Agreement) on August 15, 2007. On August 13, 2007, the
Company and the Subsidiaries entered into a First Amended and
Restated Forbearance Agreement with the Noteholders (the
“Amended Noteholder
Forbearance Agreement” ) pursuant to which the
Forbearance Period was further extended through September 16, 2007.
On September 12 2007, the Company and the Subsidiaries entered into
a Second Amended and Restated Forbearance Agreement with the
Noteholders (the “Second
Amended Noteholder Forbearance Agreement” ) pursuant
to which the Forbearance Period (as defined in the Second Amended
Noteholder Forbearance Agreement) was extended through October 16,
2007. On October 15, 2007, the Company and the Subsidiaries entered
into a Third Amended and Restated Forbearance Agreement with the
Noteholders (the “Third
Amended Noteholder Forbearance Agreement” ) pursuant
to which the Forbearance Period (as defined in the Third Amended
Noteholder Forbearance Agreement) was extended through October 31,
2007. On October 30, 2007, the Company and the Subsidiaries entered
into a Fourth Amended and Restated Forbearance Agreement with the
Noteholders (the “Fourth
Amended Noteholder Forbearance Agreement” ) pursuant
to which the Forbearance Period (as defined in the Fourth Amended
Noteholder Forbearance Agreement) was extended through December 5,
2007.
J.
The Company and the Subsidiaries have advised the Lender that the
Company, the Subsidiaries and the Noteholders will, simultaneously
with the execution of this Fifth Amended Forbearance Agreement,
amend and restate the Fourth Amended Noteholder Forbearance
Agreement pursuant to which the Noteholders shall agree to forbear
from exercising the rights and remedies available to the
Noteholders under the Indenture, the Intercreditor Agreement and
the Collateral Agreements (as defined in the Indenture) until
January 10, 2008, all on the terms and conditions set forth in such
amended and restated forbearance agreement (as such agreement may
be amended, modified, supplemented or amended and restated from
time to time, the “ Fifth
Amended Noteholder Forbearance Agreement
”).
NOW, THEREFORE, in consideration of the
premises and the respective representations, warranties, covenants
and agreements set forth in this Fifth Amended Forbearance
Agreement, and intending to be legally bound, the parties hereto
agree as follows:
ARTICLE I
DEFINITIONS
1.1
Defined Terms.
(a)
Capitalized terms that are defined in this Fifth Amended
Forbearance Agreement shall have the meanings ascribed to such
terms in this Fifth Amended Forbearance Agreement. All other
capitalized terms shall have the meanings ascribed in the Loan
Agreement. Unless the context of this Fifth Amended Forbearance
Agreement clearly requires otherwise, references to the plural
include the singular; references to the singular include
the
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plural; the words “include,”
“includes,” and “including” will be deemed
to be followed by “without limitation”; and the term
“or” has, except where otherwise indicated, the
inclusive meaning represented by the phrase
“and/or”.
(b)
This Fifth Amended Forbearance Agreement constitutes a “Loan
Document” as defined in the Loan Agreement.
(c)
References in this Fifth Amended Forbearance Agreement to the
Lender shall constitute references to DDJ Total Return Loan Fund,
L.P. solely in its capacity as the Lender.
ARTICLE II
FORBEARANCE AND AMENDMENT TO LOAN AGREEMENT
2.1
Forbearance; Forbearance Default Rights and
Remedies.
(a)
Effective as of the Fifth Amended Forbearance Effective Date (as
defined below), the Lender agrees that until the expiration of the
“Forbearance Period” (as defined below), it will
forbear from exercising its rights and remedies against the Company
or the Subsidiaries under the Loan Agreement, the other Loan
Documents and/or applicable law solely with respect to the
Specified Defaults and any Event of Default resulting solely from
the Company’s failure to make the scheduled interest payment
due under the Notes on July 15, 2007 (excluding, however, in each
case, its right to charge interest on any Obligations during the
Forbearance Period at the default interest rate specified in the
Revolving Note and the Term Note); provided , however
, (i) each of the Company and the Subsidiaries shall comply, except
to the extent such compliance is expressly excused by the terms of
this Fifth Amended Forbearance Agreement, with all explicit
restrictions or prohibitions triggered by the existence and/or
continuance of any Event of Default under the Loan Agreement, this
Fifth Amended Forbearance Agreement or any of the other Loan
Documents, (ii) nothing herein shall restrict, impair or otherwise
affect the Lender’s rights and remedies under any agreements
containing subordination provisions in favor of the Lender
(including, without limitation, any rights or remedies available to
the Lender as a result of the occurrence or continuation of the
Specified Defaults or any Event of Default resulting from the
Company’s failure to make the scheduled interest payment due
under the Notes on July 15, 2007), and (iii) nothing herein shall
restrict, impair or otherwise affect the exercise of the
Lender’s rights under this Fifth Amended Forbearance
Agreement. As used herein, the term “ Specified Defaults ” shall mean
the Events of Default listed on Annex I hereto. During the
Forbearance Period, any condition to the making of an Advance under
the Loan Agreement that would not be met solely because of the
occurrence and continuance of any Specified Default or any Event of
Default resulting solely from the Company’s failure to make
the scheduled interest payment due under the Notes on July 15, 2007
is hereby waived.
(b)
As used herein, the term “ Forbearance Period ” shall mean
the period beginning on the Fifth Amended Forbearance Effective
Date (as defined below) and ending upon the occurrence of a
Termination Event. As used herein, “ Termination Event ” shall mean
the earlier to occur of (i) the delivery by the Lender to the
Company, the counsel to the Noteholder Group (as defined in the
Fifth Amended Noteholder Forbearance Agreement) and the Trustee (as
defined in the Intercreditor Agreement) of a written notice
terminating the Forbearance Period, which notice may be delivered
at any time upon or after the occurrence of
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any
Forbearance Default (as defined below), and (ii) January 8, 2008.
As used herein, the term “ Forbearance Default ” shall mean:
(A) the occurrence of any Event of Default that is not (i) a
Specified Default or (ii) an Event of Default resulting solely from
the Company’s failure to make the scheduled interest payment
due under the Notes on July 15, 2007, (B) the delivery of any
written notice by the Noteholders to the Company terminating the
Fifth Amended Noteholder Forbearance Agreement, and/or the
Forbearance Period (as defined in the Fifth Amended Noteholder
Forbearance Agreement) as a result of the occurrence and
continuation of any Forbearance Default (as defined in the Fifth
Amended Noteholder Forbearance Agreement) or any other termination
of the Fifth Amended Noteholder Forbearance Agreement, (C) the
delivery of any Indenture Payment Notice (as defined in Section 2.3
below) to the Lender, (D) the failure of the Company or any
Subsidiary to comply with any term, condition, covenant or
agreement set forth in this Fifth Amended Forbearance Agreement,
(E) the failure of any representation or warranty made by the
Company or any Subsidiary under this Fifth Amended Forbearance
Agreement to be true and correct in all material respects as of the
date when made, (F) the failure of the Company promptly to notify
the Lender of any amendment or modification to the Fifth Amended
Noteholder Forbearance Agreement; (G) the execution of any
amendment or modification to the Fifth Amended Noteholder
Forbearance Agreement, which amendment or modification has a
material adverse effect on the Lender, as determined by the Lender
in its discretion, (H) any occurrence, event or change in facts or
circumstances occurring on or after the Fifth Amended Forbearance
Effective Date that would result in a Material Adverse Change, (I)
the occurrence of any violation or breach of, or other failure to
observe, perform or comply with, the terms of the Intercreditor
Agreement by the Trustee, or (J) the commencement by or against the
Company or any Subsidiary of a proceeding under any Debtor Relief
Laws. Any Forbearance Default shall constitute an immediate Event
of Default under the Loan Agreement.
(c)
Upon the occurrence of a Termination Event, the agreement of the
Lender hereunder to forbear from exercising its rights and remedies
in respect of the Specified Defaults and any Event of Default
resulting solely from the Company’s failure to make the
scheduled interest payment due under the Notes on July 15, 2007
shall immediately terminate without the requirement of any demand,
presentment, protest, or notice of any kind, all of which each of
the Company and the Subsidiaries hereby waives. The Company and the
Subsidiaries agree that the Lender may at any time after the
occurrence of a Termination Event proceed to exercise any or all of
its rights and remedies under the Loan Agreement, any other Loan
Document, the Intercreditor Agreement and/or applicable law,
including, without limitation, its rights and remedies on account
of the Specified Defaults and any other Events of Default that may
then exist. Without limiting the generality of the foregoing, upon
the occurrence of a Termination Event, the Lender may, upon such
notice or demand as is specified by the Loan Agreement, any other
Loan Documents, the Intercreditor Agreement or applicable law, (i)
collect and/or commence any legal or other action to collect any or
all of the Obligations from the Company and the Subsidiaries, (ii)
foreclose or otherwise realize on any or all of the Collateral,
and/or appropriate, setoff or apply to the payment of any or all of
the Obligations, any or all of the Collateral or proceeds thereof,
and (iii) take any other enforcement action or otherwise exercise
any or all rights and remedies provided for by or under the Loan
Agreement, any other Loan Documents, the Intercreditor Agreement
and/or applicable law, all of which rights and remedies are fully
reserved by the Lender.
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(d)
Any agreement by the Lender to extend the Forbearance Period or
enter into any other forbearance or similar arrangement must be set
forth in writing and signed by a duly authorized signatory of the
Lender. The Company and each of the Subsidiaries acknowledges that
the Lender has made no assurances whatsoever concerning any
possibility of any extension of the Forbearance Period, any other
forbearance or similar arrangement or any other limitations on the
exercise of its rights, remedies and privileges under or otherwise
in connection with the Loan Agreement, the other Loan Documents,
the Intercreditor Agreement and/or applicable law.
(e)
The Company and ea
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