Exhibit 10(nn)
 
Execution Copy
 
WAIVER, CONSENT AND
EIGHTH AMENDMENT TO CREDIT AGREEMENT
 
THIS WAIVER, CONSENT AND EIGHTH AMENDMENT TO CREDIT AGREEMENT (the “Agreement”)
is made as of March 25, 2011 among TASTY BAKING COMPANY, a Pennsylvania
corporation (“Company”), the direct and indirect subsidiaries of the Company
from time to time parties to the Credit Agreement (as defined herein) (the
“Subsidiary Borrowers” and with the Company, collectively, the “Borrowers”),
CITIZENS BANK OF PENNSYLVANIA, as Administrative Agent and Collateral Agent (in
such capacities, collectively, the “Agent”), and Citizens Bank of Pennsylvania
as Swing Line Lender and L/C Issuer, and EACH OTHER LENDER party to the Credit
Agreement (collectively, including Citizens Bank of Pennsylvania in its
capacities as Swing Line Lender and L/C Issuer, the “Lenders” and each
individually, a “Lender”).
 
RECITALS
 
WHEREAS, Borrowers, Lenders and Agent have previously entered into a certain
Credit Agreement dated September 6, 2007, amended by (i) that certain First
Amendment to Credit Agreement, dated December 12, 2007, (ii) that certain Second
Amendment to Credit Agreement, dated July 16, 2008, (iii) that certain Third
Amendment to Credit Agreement, dated October 29, 2008, (iv) that certain Fourth
Amendment to Credit Agreement, dated December 24, 2009, (v) that certain Fifth
Amendment to Credit Agreement, dated July 30, 2010, (vi) that certain Waiver
Agreement and Sixth Amendment to Credit Agreement, dated December 31, 2010, and
(vii) that certain Waiver Agreement and Seventh Amendment to Credit Agreement,
dated January 14, 2011 (as so amended and as the same may be further amended,
supplemented or restated from time to time, the “Credit Agreement”), pursuant to
which, inter alia, Agent and Lenders agreed to extend to Borrowers certain
credit facilities subject to the terms and conditions set forth therein;
 
WHEREAS, Borrowers are aware that Penntex Construction Co., Inc. (“Penntex”),
the general contractor for L/S 26th Street South, LP (“Liberty”) with respect to
the Borrowers’ Philadelphia Navy Yard Bakery, and certain of Penntex’s
subcontractors have filed, or may file, Notices of Intent to Lien and/or
Mechanic’s Liens, all of which Liens at any time shall not secure obligations in
excess of $1,607,816.64, with respect to amounts due to such parties that are
included in the $1,607,816.64 payment deferral by Liberty under the terms of the
Waiver Letter dated January 14, 2011 and attached to the Seventh Amendment to
the Credit Agreement as Schedule 3 (collectively, the “Specified Lien
Defaults”);
 
WHEREAS, Borrowers have requested that Lenders waive the Specified Lien
Defaults;
 
WHEREAS, pursuant to Section 7.07 of the Credit Agreement, Borrowers shall not
make any Disposition or enter into any agreement to make any Disposition except
certain permitted Dispositions;
 
 
 

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WHEREAS, notwithstanding Section 7.07 of the Credit Agreement, Borrowers have
requested that the Lenders consent to the Disposition of a certain secured
certified administrative claim against The Great Atlantic & Pacific Company
(“A&P”) in the amount of $309,430.38 at a sales price of not less than 83 cents
on the dollar (the “Permitted A&P Disposition”);
 
WHEREAS, pursuant to Section 2.10 of the Credit Agreement, the Net Cash Proceeds
of the Permitted A&P Disposition shall be applied as repayments of the Fixed
Asset Loans, the Job Bank Term Loan and the PIDC Financing on a pro-rata basis
as set forth in the Amended and Restated Intercreditor and Collateral Sharing
Agreement;
 
WHEREAS, notwithstanding Section 2.10 of the Credit Agreement, Borrowers have
requested that the Lenders waive the application of the Net Cash Proceeds of the
Permitted A&P Disposition to the Fixed Asset Loans and the Job Bank Term Loan;
and
 
WHEREAS, Borrowers, Lenders and Agent have agreed to waive the Specified Lien
Defaults, consent to Permitted A&P Disposition, waive the application of the Net
Cash Proceeds of the Permitted A&P Disposition to the Fixed Asset Loans and the
Job Bank Term Loan so long as such Net Cash Proceeds are used only for working
capital purposes of the Borrowers and amend the terms of the Credit Agreement in
accordance with the terms and conditions hereof.
 
AGREEMENT
 
NOW THEREFORE, in consideration of the promises and mutual covenants contained
herein, and the foregoing recitals being fully incorporated as if set forth
below, the parties hereto hereby agree, effective as of the Effective Date (as
defined below), as follows:
 
1.  Defined Terms. Any capitalized term used but not defined in this Agreement
shall have the meaning given to it in the Credit Agreement.
 
2.  Events of Default and Waiver.
 
(a)  Events of Default. Borrowers (a) acknowledge and agree that, without this
Agreement, the Specified Lien Defaults may, with the passage of time or the
occurrence or non-occurrence of other subsequent events, constitute Events of
Default under the Loan Documents, and (b) represent and warrant to Lenders that
no other Default or Event of Default has occurred and continues to exist as of
the Effective Date (defined below).
 
(b)  Waiver. Lenders hereby waive the Specified Lien Defaults.
 
Except as expressly provided in the preceding Subsection 2(b), this Agreement
does not serve as a waiver of any Defaults or Events of Default which may now or
hereafter exist and the Lenders and Agent reserve any and all rights and
remedies under the Loan Documents, at law or in equity, in connection with any
Defaults or Events of Default. This Section 2 shall be limited precisely as
written and relates solely to the Specified Lien Defaults in the manner and to
the extent described above and nothing in this Section 2 shall be deemed to (x)
constitute a waiver of compliance by the Borrowers with respect to any other
term, provision or condition of the Credit
 
 
 
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Agreement or any other Loan Document, or any other instrument or agreement
referred to therein, or (y) prejudice any right or remedy that the Agent or any
Lender may now have or may have in the future under or in connection with the
Credit Agreement or any other Loan Document, or any other instrument or
agreement referred to therein.
 
3.  Permitted A&P Disposition.
 
(a)  Consent. As of the Effective Date (defined below), notwithstanding the
provisions of Section 7.07 of the Credit Agreement, the Lenders hereby consent
to the consummation of the Permitted A&P Disposition.
 
(b)  Waiver. As of the Effective Date (defined below), the provisions of Section
2.10 of the Credit Agreement are hereby waived solely as relates to the
application of the Net Cash Proceeds of the Permitted A&P Disposition; provided,
that, the Net Cash Proceeds of the Permitted A&P Disposition are used solely for
working capital purposes of the Borrowers.
 
This Section 3 shall be limited precisely as written and relates solely to the
provisions of Section 7.07 and 2.10 of the Credit Agreement in the manner and to
the extent described above and nothing in this Section 3 shall be deemed to (x)
constitute a waiver of compliance by the Borrowers with respect to any other
term, provision or condition of the Credit Agreement or any other Loan Document,
or any other instrument or agreement referred to therein, or (y) prejudice any
right or remedy that the Agent or any Lender may now have or may have in the
future under or in connection with the Credit Agreement or any other Loan
Document, or any other instrument or agreement referred to therein.
 
4.  Amendments to Credit Agreement. Section 6.01(a) of the Credit Agreement is
hereby amended as follows:
 
(a)           as soon as available, but in any event within 90 days after the
end of each fiscal year of each Borrower, except that for the fiscal year ended
December 25, 2010, within 105 days after the end of such fiscal year, a
consolidated balance sheet of each Borrower and its Subsidiaries as at the end
of such fiscal year, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal year, setting
forth in each case in comparative form the figures for the previous fiscal year,
all in reasonable detail and prepared in accordance with GAAP, such consolidated
statements to be audited and accompanied by a report and opinion of an
independent certified public accountant of nationally recognized standing
reasonably acceptable to the Required Lenders, which report and opinion shall be
prepared in accordance with generally accepted auditing standards and shall not
be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit and such consolidating
statements to be certified by a Responsible Officer of each Borrower to the
effect that such statements are fairly stated in all material respects when
considered
 
 
 
 
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in relation to the consolidated financial statements of each Borrower and its
Subsidiaries;
 
5.  Conditions Precedent. This Agreement shall become effective on the date (the
“Effective Date”) on which the Agent shall have received:
 
(a)  this Amendment, duly executed and delivered by each of the Borrowers, the
Required Lenders and the Agent;
 
(b)  from the Borrowers (i) the non-refundable amendment fee set forth on Annex
1 hereto, (ii) all unpaid fees, disbursements and other charges of the Agent’s
counsel, and (iii) all unpaid fees, disbursements and other charges of the
Agent’s financial advisor;
 
(c)  from PIDC, a waiver of the provisions of Section 2.10 of the Credit
Agreement as relates to the application of the Net Cash Proceeds of the
Permitted A&P Disposition; and
 
(d)  such other documentation and information as the Agent may reasonably
request.
 
6.  Representations and Warranties. Borrowers represent and warrant to Lenders
that:
 
(a)  each Borrower: (i) is a corporation duly organized, validly existing and in
good standing under the laws of its state of formation, and (ii) has all
necessary corporate power, authority and legal right to execute, deliver and
perform its obligations under this Agreement;
 
(b)  the execution, delivery and performance of this Agreement have been duly
authorized by all necessary corporate action on the part of the Borrowers
(including, without limitation, any required shareholder approvals);
 
(c)  the execution, delivery and performance hereof, the consummation of the
transactions herein contemplated and the compliance with the terms and
conditions hereof do not conflict with or result in a breach of, or require
consent under, the organizational documents of any Borrower, or any applicable
law or regulation, or any order, writ, injunction or decree of any court or
governmental authority or agency, or any agreement or instrument by which any
Borrower or any of its property is bound or by which any Borrower or any of its
property is subject, and do not constitute a default under any such agreement or
instrument, or result in the creation or imposition of any lien or encumbrance
upon any property of any Borrower pursuant to the terms of any such agreement or
instrument;
 
(d)  this Agreement has been duly and validly executed and delivered by each
Borrower and constitutes its legal, valid and binding obligation, enforceable
against each Borrower in accordance with its terms;
 
(e)  no authorizations, approvals or consents of, and no filings or
registrations with, any governmental or regulatory authority or agency, or any
securities exchange, are
 
 
 
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(f)  necessary for the execution, delivery or performance by any Borrower of
this Agreement or for the legality, validity or enforceability hereof;
 
(g)  there are no Defaults or Events of Default in existence under the Loan
Documents other than the Specified Lien Defaults that may be or become Defaults
or Events of Default;
 
(h)  all unencumbered motor vehicle titles owned by any Borrower have been
delivered to the Agent;
 
(i)  no Borrower is aware of any facts or circumstances that would constitute
defaults or events of default under any Borrower’s agreement(s) with MELF or
PIDC;
 
(j)  no Borrower is aware of any facts or circumstances that would constitute
defaults or events of default under any Borrower’s agreement(s) with Liberty or
Liberty II;
 
(k)  no Borrower is aware of any facts or circumstances that would constitute
defaults or events of default under any Borrower’s agreement(s) with any New
Lender (as defined in the Waiver Agreement and Seventh Amendment to Credit
Agreement) or Thomas A. Leonard, Esquire, in his capacity as collateral agent
for the New Lenders; and
 
(l) the representations and warranties in the other Loan Documents are true and
correct in all material respects as of the date hereof.
 
7.  ACKNOWLEDGEMENT AND RELEASE.
 
BORROWERS AND LENDERS EACH ACKNOWLEDGE AND AGREE THAT (I) THE INDEBTEDNESS,
SECURITY INTERESTS AND OTHER LIENS GRANTED TO LENDERS SECURING THE OBLIGATIONS
ARE VALID AND PERFECTED IN ACCORDANCE WITH APPLICABLE LAW; (II) THE OBLIGATIONS
ARE NOT SUBJECT TO ANY SETOFF, DEFENSE, CLAIM, COUNTERCLAIM, RECOUPMENT, OR
AVOIDANCE AND/OR SUBORDINATION UNDER THE BANKRUPTCY CODE OR OTHERWISE; AND (III)
BORROWERS HOLD NO CLAIMS AGAINST AGENT OR ANY LENDER, INDIVIDUALLY AND/OR AS
AGENT, SUCCESSOR OR ASSIGN, OR AGAINST AGENT’S OR ANY LENDER’S OFFICERS, AGENTS,
DIRECTORS, REPRESENTATIVES, ATTORNEYS, AND SUCCESSORS AND ASSIGNS (COLLECTIVELY,
THE “LENDER PARTIES”). TO THE EXTENT THAT ANY BORROWER HOLDS ANY CLAIMS AGAINST
ONE OR MORE OF THE LENDER PARTIES, INCLUDING BUT NOT LIMITED TO CLAIMS RELATING
TO ANY EXTENSION OR NON-EXTENSION OF A LETTER OF CREDIT OR ANY ISSUANCE OR
NON-ISSUANCE OF A LETTER OF CREDIT OR OTHERWISE ARISING FROM THE LOAN DOCUMENTS
AND ADMINISTRATION THEREOF OR COLLECTION OF AMOUNTS DUE THEREUNDER, OR ANY
APPLICATIONS, DISCUSSIONS, AND/OR COMMITMENTS TO ENTER INTO ANY FINANCE
TRANSACTIONS, WAIVER OR FORBEARANCE AGREEMENTS AND/OR AGREEMENTS PRIOR TO THE
DATE OF EXECUTION OF THIS AGREEMENT, AS CONSIDERATION FOR AGENT’S AND
 
 
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LENDERS’ UNDERTAKINGS UNDER THIS AGREEMENT, BORROWERS HEREBY UNCONDITIONALLY
FOREVER RELEASE, DISCHARGE, AND ACQUIT THE LENDER PARTIES OF ANY AND ALL CLAIMS,
BREACHES OF CONTRACT, DEBTS, SUITS, DEMANDS, CAUSES OF ACTIONS AND ACTIONS OF
ANY TYPE OR NOTICE WHICH AROSE OR ARE BASED ON OCCURRENCES OR TRANSACTIONS WHICH
TOOK PLACE PRIOR TO THE EFFECTIVE DATE OF THIS AGREEMENT, WHETHER KNOWN OR
UNKNOWN, CONTINGENT OR LIQUIDATED, SUSPECTED OR UNSUSPECTED, AT LAW OR IN
EQUITY, OR BASED IN CONTRACT OR TORT. EACH BORROWER ACKNOWLEDGES AND REPRESENTS
THAT IT HAS HAD THE OPPORTUNITY TO RECEIVE THE ADVICE OF COUNSEL IN CONNECTION
WITH THIS ACKNOWLEDGMENT AND RELEASE AND HAS VOLUNTARILY ENTERED INTO THIS
ACKNOWLEDGEMENT AND RELEASE.
 
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 7.
 
BORROWERS ACKNOWLEDGE THAT BORROWERS HAVE NO RIGHT TO CURE EVENTS OF DEFAULT.
 
8.  Inconsistencies. To the extent of any inconsistency between the terms and
conditions of this Agreement and the terms and conditions of the Credit
Agreement or the other Loan Documents, the terms and conditions of this
Agreement shall prevail. All terms and conditions of the Credit Agreement and
the other Loan Documents not inconsistent herewith shall remain in full force
and effect and are hereby ratified and confirmed by Borrowers. Notwithstanding
anything herein to the contrary, nothing herein shall be construed to affect the
waiver of the Specified Defaults under (and as defined in) the Seventh
Amendment, and such waiver continues in full force and effect (subject, in all
respects, to the terms and conditions of such waiver set forth in the Seventh
Amendment).
 
9.  Counterparts. This Agreement may be executed by each party in counterparts
and may be delivered by facsimile or in electronic PDF sent via e-mail, each of
which shall be deemed to be an original and all of which, taken together, shall
constitute one agreement binding upon all parties.
 
10.  Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and
assigns.
 
 
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11.  Status of Loan Documents. Borrowers further agree that (a) all terms and
conditions of the Loan Documents remain in full force and effect, except as
expressly modified by the terms of this Agreement and (b) this Agreement
constitutes a Loan Document.
 
12.  No Waiver. The execution, delivery and effectiveness of this Agreement by
Lenders except as expressly provided in this Agreement to the contrary shall be
without prejudice to, or waiver of, any Defaults and Events of Default that have
occurred to date under the Loan Documents or occur with the passage of time. The
execution of this Agreement shall not operate except as expressly provided in
this Agreement to the contrary as a waiver of any right, power or remedy of
Lenders under any of the Loan Documents, nor constitute a waiver of any
provisions of any of the Loan Documents. All of the provisions and covenants of
the Credit Agreement and other Loan Documents are and shall continue to remain
in full force and effect in accordance with the terms thereof and are hereby in
all respects ratified and confirmed, as amended by this Agreement. Each Borrower
shall remain obligated to comply with all of its obligations contained in each
Loan Document to which it is a party, except as otherwise provided by this
Agreement and any other documents required by this Agreement. This Agreement and
any other documents required by this Agreement shall be deemed to be a Loan
Document for all purposes under and in connection with this Agreement, the
Credit Agreement and the other Loan Documents. This Agreement is not intended to
confer any rights or benefits on any Person other than the parties hereto and
their respective successors and assigns, except that the Lender Parties are
intended third-party beneficiaries of the acknowledgment and release provisions
hereof.
 
13.  Choice of Law. This agreement and the documents executed in connection
herewith shall in all respects be construed in accordance with, and governed by,
the internal laws of the Commonwealth of Pennsylvania, without regard to the
principles of conflicts of laws of such Commonwealth.
 
14.  Authority. The signatories hereto represent and warrant that they have full
authority to execute this Agreement.
 
15.  Advice of Counsel. The parties to this agreement have received the advice
of counsel in the negotiation and execution of this Agreement.
 
 
 
[signature pages follow]
 
 
 
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IN WITNESS WHEREOF, the parties are executing this Agreement as of the day and
year first above written.
 
BORROWERS:
 
 
TASTY BAKING COMPANY
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
 
TBC FINANCIAL SERVICES, INC.
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
 
TASTY BAKING OXFORD, INC.
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
 
 
[Signature Page to Waiver, Consent and Eighth Amendment to Credit Agreement]
 
 
 

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AGENT:
 
 
CITIZENS BANK OF PENNSYLVANIA, as
Administrative Agent, Collateral Agent and L/C Issuer
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
 
 
 
 
[Signature Page to Waiver, Consent and Eighth Amendment to Credit Agreement]
 
 
 

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LENDERS:
 
 
CITIZENS BANK OF PENNSYLVANIA, as Lender
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
BANK OF AMERICA, N.A., as Lender
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
 
SOVEREIGN BANK, as Lender
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
 
MANUFACTURERS AND TRADERS TRUST
COMPANY, as Lender
 
 
 
By: ______________________________________________
Name: ____________________________________________
Title:   ____________________________________________
 
 
 
 
 
 
[Signature Page to Waiver, Consent and Eighth Amendment to Credit Agreement]
 
 
 
 

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Annex 1
 
 
Each Lender who shall have executed and delivered a signature page hereto on or
before 3:00 P.M. on Friday, March 25, 2011 (as such time may be extended by the
Agent in its sole discretion) shall be entitled to a non-refundable amendment
fee, earned and payable at such time as the Required Lenders shall have
delivered such signature pages, in an amount equal to 10 basis points of the
amount of such Lender’s Commitment.
 
Signature pages shall be delivered to:
 
Peter Lively, Esq.
Drinker Biddle &Reath LLP
One Logan Square, Suite 2000
Philadelphia, PA 19103
Fax: 215 988 2757
Peter.lively@dbr.com
 
We request that in addition to an electronic signature, each Lender send five
original signature pages to the above address; however, payment of the amendment
fee shall be conditioned on either an electronic or original signature page to
Mr. Lively by the time specified.