Exhibit 10.7

 

SECOND AMENDMENT TO

AMENDED AND RESTATED

SECURITY AGREEMENT

 

THIS SECOND AMENDMENT TO AMENDED AND RESTATED SECURITY AGREEMENT, dated as of
April 16, 2003 (this “Amendment”), is made by OVERHILL FARMS, INC., a Nevada
corporation (the “Company”), and OVERHILL L.C. VENTURES, INC., a California
corporation (“Overhill Ventures” and, together with the Company, and any future
direct or indirect Subsidiaries of Company and Overhill Ventures from time to
time party hereto, the “Debtors” and, individually, a “Debtor”) in favor of
LEVINE LEICHTMAN CAPITAL PARTNERS II, L.P., a California limited partnership
(“Secured Party”).

 

RECITALS

 

A. The parties are party to that certain Amended and Restated Security Agreement
dated as of October 29, 2002, as amended by an Amendment to Amended and Restated
Security Agreement dated as of April 4, 2003 (as so amended and as further
amended from time to time, the “Security Agreement”), pursuant to which, among
other things, the Debtors granted to Secured Party security interests and liens
in and to the Collateral to secure the payment and performance of all
Obligations as provided for therein. Capitalized terms used and not defined
herein have the meanings set forth in the Security Agreement.

 

B. Concurrently herewith, the Company, the entities from time to time parties
thereto as Guarantors (including Overhill Ventures) and the Purchaser are
entering into that certain Second Amended and Restated Securities Purchase
Agreement dated as of April 16, 2003 (the “Securities Purchase Agreement”),
pursuant to which, among other things, the parties thereto are amending and
restating the Existing Securities Purchase Agreement (as defined therein), all
on the terms and subject to the conditions set forth therein.

 

C. The parties wish to amend further Schedule 3 (Bank Accounts, Instruments and
Chattel Paper) to the Security Agreement as provided for herein.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the promises and of the mutual covenants
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto amend the
Security Agreement as follows:

 

1. Amendment to Schedule 3 (Bank Accounts, Instruments and Chattel Paper) to
Security Agreement. Pursuant to Section 19 of the Security Agreement, Schedule 3
(Bank Accounts, Instruments and Chattel Paper) to the Security Agreement is
hereby

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amended by replacing such Schedule in its entirety with Schedule 3 attached
hereto which, from and after the date hereof, shall be a part thereof.

 

2. Acknowledgment and Confirmation of Security Interest. Each Debtor hereby
confirms and ratifies its prior assignment and grant, and assigns and grants to
Secured Party, a continuing, first priority security interest and Lien in all of
such Debtor’s right, title and interest in, to and under the Collateral, subject
only to the Liens in favor of the Senior Lender as provided in the Security
Agreement.

 

3. Ratification. The Debtors acknowledge that the Security Agreement, as amended
hereby, shall remain binding upon each Debtor and all provisions thereof shall
remain in full force and effect. Each Debtor expressly ratifies and reaffirms
its obligations to Secured Party under the Security Agreement and the other
Collateral Documents.

 

4. Miscellaneous.

 

4.1 Complete Agreement. The Security Agreement, as amended by this Amendment,
constitutes the complete agreement among the parties with respect to the subject
matter hereof and supersedes any prior written or oral agreements, writings,
communications or understandings of the parties hereto and thereto, with respect
to such matter.

 

4.2 Counterparts. This Amendment may be executed in any number of counterparts
and by facsimile, each of which shall be deemed an original, but all of which
taken together shall constitute one and the same instrument.

 

4.3 Governing Law. IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS ARISING
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO CONTRACTS MADE AND PERFORMED
IN SUCH STATE, WITHOUT REGARD TO THE CHOICE OF LAW OR CONFLICTS OF LAW
PRINCIPLES THEREOF.

 

4.4 No Limitation on Rights. This Amendment amends the Security Agreement on and
as of the date hereof, and the Security Agreement, as amended hereby, shall
remain in full force and effect in accordance with its terms. The execution,
delivery and effectiveness of this Amendment shall not (a) limit, impair,
constitute a waiver by, or otherwise affect any right, power or remedy of,
Secured Party under the Security Agreement, as amended hereby, or any other
Investment Document, (b) constitute a waiver of any provision in the Security
Agreement or any other Investment Document or (c) except as set forth in this
Amendment, alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Security
Agreement or any other Investment Document, all of which are ratified and
affirmed in all respects and shall continue in full force and effect.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

 

DEBTORS

OVERHILL FARMS, INC., a Nevada corporation

By:

 

/s/ James Rudis

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James Rudis

President and Chief Executive Officer

By:

 

/s/ John Steinbrun

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John Steinbrun

Senior Vice President and Chief Financial Officer

OVERHILL L.C. VENTURES, INC., a California corporation

By:

 

/s/ James Rudis

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James Rudis

President

By:

 

/s/ Richard A. Horvath

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Richard A. Horvath

Chief Financial Officer

 

ACKNOWLEDGED AND ACCEPTED:

SECURED PARTY

LEVINE LEICHTMAN CAPITAL PARTNERS II,

L.P., a California limited partnership

By:

 

LLCP California Equity Partners II,

L.P., a California limited partnership, its

General Partner

   

By:

 

Levine Leichtman Capital Partners, Inc.,

its General Partner

       

By:

 

/s/ Steven E. Hartman

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Steven E. Hartman

Vice President

 

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