EXHIBIT 10.33
SIXTH AMENDMENT
TO
REVOLVING CREDIT AND
TERM LOAN AGREEMENT
THIS SIXTH AMENDMENT TO REVOLVING CREDIT AND
TERM LOAN AGREEMENT dated as of August 13, 2004 (the “
Amendment ”), is entered into by and between
CAPITALSOURCE FINANCE LLC, a Delaware limited liability company, in
its capacity as administrative agent and collateral agent for the
Lenders under the Agreement referenced below (“ Agent
”), the Lenders party thereto, and GARDENBURGER, INC., an
Oregon corporation (“ Borrower ”).
Capitalized terms used and not otherwise defined herein are used as
defined in the Agreement (as defined below).
WHEREAS, the Agent, Lenders and Borrower have
entered into that certain Revolving Credit and Term Loan Agreement
dated as of January 10, 2002 (as amended, supplemented,
modified and/or restated from time to time, the “
Agreement ”), together with a First Amendment to the
Agreement dated as of September 30, 2002, a Second Amendment
to the Agreement dated as of December 31, 2002, a Third
Amendment to the Agreement dated as of March 31, 2003, a
Fourth Amendment to the Agreement dated as of December 29,
2003 and a Fifth Amendment to the Agreement dated as of
April 8, 2004;
WHEREAS, Borrower has requested that Agent and
Lenders amend certain provisions of the Agreement and waive certain
Events of Default, all as provided herein; and
WHEREAS, subject to satisfaction of the
conditions set forth herein, Agent and the Lenders are willing to
amend the Agreement as provided herein.
NOW, THEREFORE, in consideration of the
premises and the other mutual covenants contained herein, the
receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
SECTION 1. Amendments . As
of the Effective Date, the Agreement is amended as
follows:
(a)
Section 3.4 of the Agreement shall be and hereby is amended
and restated and replaced in its entirety to read in full as
follows:
“ 3.4
Termination Fee; Exit Fee
Upon the earlier of (i) the payment in full of
the Term Loan and (ii) the last day of the Term Loan Term, Borrower
shall pay Agent for the ratable benefit of Lenders, an exit fee of
$750,000 (the “ Exit
Fee ”). Borrower may permanently repay the
Loans and terminate Lender’s future lending commitments
hereunder, provided , that if such repayment or termination
occur on or before August 13, 2005, Borrower shall also pay a
termination fee (“ Termination Fee ”) of 1% of
the sum of (A) the Facility Cap and (B) the outstanding
balance of the Term Loan on August 13, 2004, minus the amount
of scheduled principal payments made between August 13, 2004,
and the date of such repayment or termination, and further
provided , that Borrower shall not be obligated to pay the
Termination Fee if CapitalSource is a lender in the credit facility
which replaces or refinances this Agreement.”
(b)
Section 6.1(g) of the Agreement shall be and hereby is amended
and restated and replaced in its entirety to read in full as
follows:
“(g)
Recipes and Procedures . Borrower shall furnish to
Agent by July 20 and January 20 of each year, a copy of each recipe
and procedures (which has not previously been delivered to Agent)
for making each product of Borrower, which shall be held by Agent
in a safe deposit box until such time as an Event of Default
exists. Prior to an Event of Default, Agent will not disclose
or distribute the recipes or procedures to any Person,
unless in connection with pursuing and enforcing
Agent’s and Lender’s remedies under the Loan
Documents. Notwithstanding anything contained in this
Agreement to the contrary, CapitalSource and its affiliates, as
Agent and/or Lender, may disclose to their lenders such recipes and
procedures, provided such lenders agree with CapitalSource (orally
or in writing) to be subject to the restrictions set forth in this
Section 6.1(g) .”
(c)
A new Section 6.1(i) shall be added to the Agreement to read
in full as follows:
“(i)
Intellectual Property . Borrower shall furnish to
Agent by July 20 and January 20 of each year, a report specifying
any material Intellectual Property interests acquired by, obtained
by, or licensed to Borrower (which has not been previously
disclosed to Agent), and shall deliver to Agent, within ten (10)
calendar days after Agent’s request, documentation to perfect
Agent’s, for its benefit and the benefit of the Lenders, Lien
in such Intellectual Property, in each case in form and substance
acceptable to Agent in its Permitted Discretion.”
(d)
Paragraphs 4 and 5 of Annex I of the Agreement shall be
and hereby are amended and restated and replaced in their entirety
to read in full as follows:
“ 4)
Capital Expenditures
Borrower shall not permit its Capital
Expenditures in the aggregate to exceed $1,550,000 for the fiscal
year ending on September 30, 2004, and $1,100,000 for each
fiscal year ending on or after September 30, 2005.
5)
Senior Fixed Charge Coverage Ratio.
The
Senior Fixed Charge Coverage Ratio for each Quarterly Test Period
set forth below shall not be less than the ratios specified
below:
|
Quarterly Test
Period
|
|
Ratio
|
|
|
September 30, 2004
|
|
1.35:1.00
|
|
|
December 31, 2004
|
|
1.25:1.00
|
|
|
March 31, 2005
|
|
1.48:1.00
|
|
|
June 30, 2005
|
|
1.57:1.00
|
|
SECTION 2. Conditions . This
Amendment shall be effective upon the satisfaction of the following
conditions precedent (the “ Effective Date
”): (a) the representations and warranties contained
herein and in all other Loan Documents shall be true and correct in
all material respects as of the date hereof, except for such
representations and warranties limited by their terms to a specific
date; (b) except as specifically waived in Section 4 of this
Amendment, no Default or Event of Default shall be in existence as
of the date hereof; (c) Borrower shall have delivered to the Agent
an executed original copy of this Amendment and each other
agreement, document or instrument reasonably requested by the Agent
in connection with this Amendment; (d) (i) the holders of the
Subordinated Debt and Borrower shall have executed a Sixth
Amendment to Note Purchase Agreement (the “ Note Purchase
Agreement Amendment ”) in the form attached hereto as
Exhibit A and (ii) the holders of the Subordinated Debt
shall have consented in writing to this Amendment, in form and
substance satisfactory to Agent, and none of the provisions of this
Amendment shall be a breach or event of default under the Note
Purchase Agreement or with respect to the Subordinated Debt;
(e) Borrower shall have paid to Agent all fees, costs and
expenses owed to and/or incurred by the Agent and Lenders arising
in connection with the Loan Documents and/or this Amendment; and
(f) all proceedings taken in connection with the transactions
contemplated by this Amendment and all documentation and other
legal matters incident thereto shall be satisfactory to the
Agent.
SECTION 3. Consent to Modifications of
Agreements with Subordinated Lender . As of the Effective
Date, Agent and Lenders hereby consent to Borrower’s
execution and delivery of the Note Purchase Agreement
Amendment.
SECTION 4. Waivers . Agent
and Lenders (a) hereby acknowledge that Events of Default exist
because of Borrower’s failure to comply with the (i) Senior
Fixed Charge Coverage Ratio for the Quarterly Test Period ending
June 30, 2004 and (ii) the $1,200,000 limit