Exhibit 10.28

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

This Third Amendment to Credit Agreement (this “Amendment”) is entered into as
of June 1, 2003, by and among SMART & FINAL INC., a Delaware corporation (the
“Borrower”), the Guarantors listed on the signature pages hereof, the financial
institutions and other entities party hereto (the “Lenders”) and BNP PARIBAS, as
Administrative Agent for the Lenders (the “Administrative Agent”).

 

RECITALS

 

A. The Borrower, the Lenders, the Administrative Agent, Harris Trust & Savings
Bank, as syndication agent, and Cooperative Centrale Raiffeisen-Boerenleenbank
B.A., “Rabobank Nederland”, New York Branch, as documentation agent, are parties
to that certain Credit Agreement dated as of November 30, 2001 (as amended to
date, the “Credit Agreement”). Capitalized terms used herein without definition
have the meanings ascribed to such terms in the Credit Agreement.

 

B. The Borrower, the Lenders and the Administrative Agent have agreed to amend
the Credit Agreement as provided hereinbelow.

 

NOW THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties hereto hereby agree as follows:

 

Section 1. Section References. Unless otherwise expressly stated herein, all
Section references herein shall refer to Sections of the Credit Agreement.

 

Section 2. Amendment to Section 6.03(q) (Business Plan). Section 6.03(q) is
hereby amended to read in its entirety as follows:

 

“(q) Business Plan. On or before the date that is 10 Business Days after the
Borrower executes a definitive sale agreement with respect to all or a material
p.ortion of its assets (and/or the assets of its Subsidiaries) located in
Florida, but in no event later than August 15, 2003, a revised business plan for
the principal operating units of the Borrower, in form and substance
satisfactory to the Administrative Agent and the Required Lenders.

 

Section 3. Amendments to Synthetic Lease Documents. Upon the execution of the
Synthetic Lease Documents Amendments required under Section 4(a)(iii) below, the
Required Lenders shall, by notice from the Administrative Agent to the Borrower
at any time within 90 days after receipt by the Lenders of the Synthetic Lease
Documents Amendments, be entitled to amend the Credit Agreement to reflect any
changes to the covenants or any other provisions of the Synthetic Lease
Documents that the Required Lenders consider more favorable than the
corresponding provisions in the Credit Agreement.

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Section 4. Conditions Precedent. The effectiveness of this Amendment is subject
to the satisfaction of each of the following conditions precedent:

 

(a) The Administrative Agent shall have received all of the following, in form
and substance satisfactory to the Administrative Agent:

 

(i) Amendment Documents. This Amendment and any other instrument, document or
certificate required by the Administrative Agent to be executed or delivered by
the Borrower or any other Person in connection with this Amendment, duly
executed by such Persons (the “Amendment Documents”);

 

(ii) Consent of Required Lenders. The written consent of the Required Lenders to
this Amendment;

 

(iii) Amendment to Synthetic Lease Documents. Evidence that (A) the covenant to
deliver a business plan contained in the Synthetic Lease Documents has been
amended in the same manner as set forth in this Amendment and (B) any conforming
changes to the Synthetic Lease Documents reasonably requested by the
Administrative Agent have been made (collectively, the “Synthetic Lease
Documents Amendments”);

 

(iv) Additional Information. Such additional documents, instruments and
information as the Administrative Agent may reasonably request to effect the
transactions contemplated hereby.

 

(b) The representations and warranties contained herein and in the Credit
Agreement shall be true and correct as of the date hereof as if made on the date
hereof (except for those which by their terms specifically refer to an earlier
date, in which case such representations and warranties shall be true and
correct as of such earlier date).

 

(c) All corporate proceedings taken in connection with the transactions
contemplated by this Amendment and all other agreements, documents and
instruments executed and/or delivered pursuant hereto, and all legal matters
incident thereto, shall be satisfactory to the Administrative Agent.

 

(d) No Default or Event of Default shall have occurred and be continuing, after
giving effect to this Amendment.

 

Section 5. Representations and Warranties. The Borrower hereby represents and
warrants to the Administrative Agent and the Lenders that, as of the date of and
after giving effect to this Amendment, (a) the execution, delivery and
performance of this Amendment and any and all other Amendment Documents executed
and/or delivered in connection herewith have been authorized by all requisite
corporate action on the part of the Borrower and will not violate the Borrower’s
certificate of incorporation or bylaws, (b) all representations and warranties
set forth in the Credit Agreement and in any other Loan Document are true and
correct as if made again on and as of such date (except those, if any, which by
their terms specifically relate only to an

 

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earlier date, in which case such representations and warranties are true and
correct as of such earlier date), (c) no Default or Event of Default has
occurred and is continuing, and (d) the Credit Agreement (as amended by this
Amendment), and all other Loan Documents are and remain legal, valid, binding
and enforceable obligations in accordance with the terms thereof.

 

Section 6. Survival of Representations and Warranties. All representations and
warranties made in this Amendment or any other Loan Document shall survive the
execution and delivery of this Amendment and the other Loan Documents, and no
investigation by the Administrative Agent or the Lenders, or any closing, shall
affect the representations and warranties or the right of the Administrative
Agent and the Lenders to rely upon them.

 

Section 7. Certain Waivers. The Borrower and each Guarantor hereby agrees that
neither the Administrative Agent nor any Lender shall be liable under a claim
of, and hereby waives any claim against the Administrative Agent and the Lenders
based upon, lender liability (including, but not limited to, liability for
breach of the implied covenant of good faith and fair dealing, fraud,
negligence, conversion, misrepresentation, duress, control and interference,
infliction of emotional distress and defamation and breach of fiduciary duties)
as a result of any discussions or actions taken or not taken by the
Administrative Agent or the Lenders on or before the date hereof or the
discussions conducted pursuant hereto, or any course of action taken by the
Administrative Agent or any Lender in response thereto or arising therefrom.
This Section 7 shall survive the execution and delivery of this Amendment and
the other Loan Documents and the termination of the Credit Agreement.

 

Section 8. Reference to Agreement. Each of the Loan Documents, including the
Credit Agreement, and any and all other agreements, documents or instruments now
or hereafter executed and/or delivered pursuant to the terms hereof or pursuant
to the terms of the Credit Agreement as amended hereby, are hereby amended so
that any reference in such Loan Documents to the Credit Agreement, whether
direct or indirect, shall mean a reference to the Credit Agreement as amended
hereby.

 

Section 9. Costs and Expenses. The Borrower shall pay on demand all reasonable
costs and expenses of the Administrative Agent (including the reasonable fees,
costs and expenses of counsel to the Administrative Agent) incurred in
connection with the preparation, execution and delivery of this Amendment.

 

Section 10. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA.

 

Section 11. Execution. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a

 

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signature page to this Amendment by telecopier shall be effective as delivery of
a manually executed counterpart of this Amendment.

 

Section 12. Limited Effect. This Amendment relates only to the specific matters
covered herein, shall not be considered to be a waiver of any rights any Lender
may have under the Credit Agreement, and shall not be considered to create a
course of dealing or to otherwise obligate any Lender to execute similar
amendments or grant any waivers under the same or similar circumstances in the
future.

 

Section 13. Ratification By Guarantors. Each of the Guarantors hereby agrees to
this Amendment and acknowledges that such Guarantor’s Guaranty shall remain in
full force and effect without modification thereto.

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

 

SMART & FINAL INC.,

as Borrower

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

 

AMERICAN FOODSERVICE DISTRIBUTORS

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

 

SMART & FINAL STORES CORPORATION

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

 

SMART & FINAL OREGON, INC.

By:  

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

 

PORT STOCKTON FOOD DISTRIBUTORS, INC.

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President—Finance

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HENRY LEE COMPANY

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President—Finance

 

AMERIFOODS TRADING COMPANY

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

 

CASINO FROZEN FOODS, INC.

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice president & Chief Financial Officer

 

FOODSERVICESPECIALISTS.COM, INC.

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

 

OKUN PRODUCE INTERNATIONAL, INC.

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

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HL HOLDING CORPORATION

By:

 

/s/    RICHARD N. PHEGLEY        

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Name:

  Richard N. Phegley

Title:

  Senior Vice President & Chief Financial Officer

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BNP PARIBAS,

as Administrative Agent and a Lender

By:

 

/s/    SEAN T. CONLON        

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Name:

  Sean T. Conlon

Title:

  Managing Director

By:

 

/s/    JANICE S. H. HO        

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Name:

  Janice S. H. Ho

Title:

  Director

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HARRIS TRUST & SAVINGS BANK

as Syndication Agent and a Lender

By:

 

/s/    C. SCOTT PLACE        

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Name:

  C. Scott Place

Title:

  Vice President

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COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW
YORK BRANCH

By:

 

/s/    BRADFORD F. SCOTT        

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Name:

  Bradford F. Scott

Title:

  Executive Director

By:

 

/s/    IAN REECE        

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Name:

  Ian Reece

Title:

  Managing Director

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CREDIT INDUSTRIEL ET COMMERCIAL

By:

 

/s/    ERIC DULOT        

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Name:

  Eric Dulot

Title:

  Vice President

By:

 

/s/    ERIC LONGUET        

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Name:

  Eric Longuet

Title:

  Vice President

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COBANK, ACB

By:

 

/s/    S. RICHARD DILL        

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Name:

  S. Richard Dill

Title:

  Vice President

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UNION BANK OF CALIFORNIA, N.A.

By:

 

/s/    PETER THOMPSON        

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Name:

  Peter Thompson

Title:

  Vice President

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CITY NATIONAL BANK

By:

 

/s/    MIKE CIRLIN        

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Name:

  Mike Cirlin

Title:

  Vice President

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RZB FINANCE LLC

By:

 

/s/    JOHN A. VALISKA        

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Name:

  John A. Valiska

Title:

  Group Vice President

By:

 

/s/    CHRISTOPH HOEDL        

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Name:

  Christoph Hoedl

Title:

  Vice President

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BANK OF THE WEST

By:

 

/s/    DANNY FLORES        

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Name:

  Danny Flores

Title:

  Syndications Officer

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PREFERRED BANK

By:

 

/s/    WALT DUCHANIN        

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Name:

  Walt Duchanin

Title:

  Executive Vice President