Exhibit 10.4
 

FIRST AMENDMENT
 

THIS FIRST AMENDMENT dated as of March 19, 2010 (this “Amendment”) amends the
Credit Agreement dated as of October 20, 2006 (the “Credit Agreement”) among
LANCE, INC., a North Carolina corporation (the “Company”), TAMMING FOODS LTD.
(doing business as Lance Canada), an Ontario corporation (the “Canadian
Borrower” and together with the Company, collectively the “Borrowers”), the
several financial institutions from time to time party thereto (collectively the
“Lenders”; individually each a “Lender”), WELLS FARGO SECURITIES, LLC (formerly
known as Wachovia Capital Markets, LLC), as syndication agent, and BANK OF
AMERICA, NATIONAL ASSOCIATION, as letter of credit issuing lender, as
administrative agent for the Lenders, and as Canadian Agent.  Terms defined in
the Credit Agreement are, unless otherwise defined herein or the context
otherwise requires, used herein as defined therein.
 
WHEREAS, the Company, the Canadian Borrower, the Lenders and the Agents have
entered into the Credit Agreement; and
 
WHEREAS, the parties hereto desire to amend the Credit Agreement in certain
respects as more fully set forth herein;
 
NOW, THEREFORE, the parties hereto agree as follows:
 
SECTION 1  Amendments.  Subject to the satisfaction of the conditions precedent
set forth in Section 3, the Credit Agreement shall be amended as follows.
 
1.1  Amendment of Definition.  Section 1.1 of the Credit Agreement is amended so
that the definition of “EBITDA” reads in its entirety as follows:
 
EBITDA means, for any Computation Period, the Company’s consolidated net income
from continuing operations for such period, plus, to the extent deducted in
determining such earnings, Interest Expense, income taxes, depreciation and
amortization, minus, to the extent included in determining such earnings, any
income tax refunds, plus any Acquired EBITDA and any fees and expenses incurred
in connection with any Acquisition, any costs or charges to the Company and its
Subsidiaries as a result of an increase in value to the pre-acquisition
historical amounts of accounts receivables, inventories or any other current
assets (a “write-up”), in each case to the extent that such write-up is required
by GAAP and occurs as a result of an Acquisition, minus any Disposed EBITDA.
 
1.2  Addition of Definitions.  Section 1.1 of the Credit Agreement is further
amended by adding thereto the following definitions in proper alphabetical
sequence:
 

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Acquired EBITDA means, with respect to any Person or division (or similar
business unit) acquired by the Company in an Acquisition during any Computation
Period, the total of (a) the consolidated net income from continuing operations
of such Person or division (or similar business unit) for the period from the
first day of such Computation Period to the date of such acquisition plus (b) to
the extent deducted in determining such consolidated net income (and without
duplication), interest expense (whether paid or accrued and including imputed
interest expense in respect of capital lease obligations), income taxes,
depreciation and amortization, all calculated on a basis approved by the
Administrative Agent minus (c) to the extent included in such consolidated net
income, any income tax refunds.
 
Disposed EBITDA means, with respect to any Person or division (or similar
business unit) sold or otherwise disposed of by the Company during any
Computation Period, the total of (a) the consolidated net income from continuing
operations of such Person or division (or similar business unit) for the period
from the first day of such Computation Period to the date of such sale or other
disposition plus (b) to the extent deducted in determining such consolidated net
income (and without duplication), interest expense (whether paid or accrued and
including imputed interest expense in respect of capital lease obligations),
income taxes, depreciation and amortization, all calculated on a basis approved
by the Administrative Agent minus (c) to the extent included in such
consolidated net income, any income tax refunds.
 
SECTION 2                      Warranties.  The Company represents and warrants
to each Agent and each Lender (and the Canadian Borrower represents and warrants
with respect to itself to each Agent and each Lender) that, after giving effect
to the effectiveness of this Amendment, (a) each warranty set forth in Article
VI of the Credit Agreement is true and correct in all material respects, except
to the extent that such warranty specifically refers to an earlier date, and (b)
no Event of Default or Unmatured Event of Default exists.
 
SECTION 3                      Effectiveness of Amendments.
 
3.1  Amendments.  The amendments set forth in Section 1 above shall become
effective when the Administrative Agent shall have received all of the following
(provided that the following are received on or before March 19, 2010):  (i)
counterparts of this Amendment executed by the Company, the Canadian Borrower,
the Required Lenders and the Administrative Agent; (ii) all documents as shall
reasonably demonstrate the corporate power and authority of the Borrowers to
enter into, and the validity with respect to the Borrowers of, this Amendment
and the other Loan Documents and any other matters relevant hereto, all in form
and substance satisfactory to the Administrative Agent; and (iii) all
governmental and third party approvals, if any, necessary or advisable in
connection with the execution, delivery and performance of this Amendment by the
Borrowers.
 

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SECTION 4                      Miscellaneous.
 
4.1           Continuing Effectiveness, etc.  As herein amended, the Credit
Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects.  After the effectiveness of this Amendment, all
references in the Credit Agreement and the other Loan Documents to “Credit
Agreement” or similar terms shall refer to the Credit Agreement as amended
hereby.
 
4.2           Counterparts.  This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Amendment.  Delivery of a signed
signature page hereto by facsimile or e-mail (in a .pdf or similar file) shall
be effective as delivery of a manually signed counterpart hereof.
 
4.3           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA WITHOUT REGARD TO
THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF; PROVIDED THAT THE PARTIES
HERETO SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.
 
4.4           Successors and Assigns.  This Amendment shall be binding upon the
Borrowers, the Lenders and the Agents and their respective successors and
assigns, and shall inure to the benefit of the Borrowers, the Lenders and the
Agents and the respective successors and assigns of the Lenders and the Agents.
 
[Signature Pages Follow]
 

 

 

1505445 99529018
   

 
 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.
 

 
LANCE, INC.
             
By:
/s/ Rick D. Puckett
 
Title:
Executive Vice President
             
TAMMING FOODS LTD.
             
By:
/s/ Rick D. Puckett
 
Title:
Executive Vice President
     

1505445 99529018
S-1
FIRST AMENDMENT

 
 

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BANK OF AMERICA, NATIONAL
ASSOCIATION, as Administrative Agent
             
By:
/s/ William F. Sweeney
 
Title:
Senior Vice President
             
BANK OF AMERICA, NATIONAL
ASSOCIATION, as an Issuing Lender and a U.S.
Revolving Credit Lender
             
By:
/s/ William F. Sweeney
 
Title:
Senior Vice President
     

 

1505445 99529018
S-2
FIRST AMENDMENT

 
 

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WACHOVIA BANK, NATIONAL
ASSOCIATION, as a Term Lender and U.S.
Revolving Credit Lender
             
By:
/s/ Scott Santa Cruz
 
Title:
Director
     

1505445 99529018
S-4
FIRST AMENDMENT

 
 

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REGIONS BANK, as a Term Lender and U.S.
Revolving Credit Lender
             
By:
/s/ Anthony LeTrent
 
Title:
Senior Vice President
     

1505445 99529018
S-5
FIRST AMENDMENT

 
 

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BRANCH BANKING AND TRUST COMPANY, as a Term Lender and U.S. Revolving Credit
Lender
             
By:
/s/ Stuart M. Jones
 
Title:
Senior Vice President
     

1505445 99529018
S-6
FIRST AMENDMENT

 
 

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JPMORGAN CHASE BANK, N.A., as a Term Lender and U.S. Revolving Credit Lender
             
By:
/s/ Patrick S. Thornton
 
Title:
Senior Vice President
     

1505445 99529018
S-7
FIRST AMENDMENT

 
 

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SUNTRUST BANK, as a Term Lender and U.S. Revolving Credit Lender
             
By:
/s/ M. Gabe Bonfield
 
Title:
Vice President
     

1505445 99529018
S-8
FIRST AMENDMENT

 
 

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BANK OF AMERICA, NATIONAL ASSOCIATION, acting through its Canada
Branch, as Canadian Agent and
a Canadian Lender
             
By:
/s/ Medina Sales de Andrade
 
Title:
Vice President
     

1505445 99529018
S-9
FIRST AMENDMENT

 
 

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WACHOVIA CAPITAL FINANCE CORPORATION (CANADA), as a Canadian Lender
             
By:
/s/  Niall Hamilton
 
Title:
Senior Vice President
     

 
 

1505445 99529018
S-10
FIRST AMENDMENT

 
 

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JPMORGAN CHASE BANK, N.A., as a Canadian Lender
             
By:
/s/  Patrick S. Thornton
 
Title:
Senior Vice President
     

1505445 99529018
S-11
FIRST AMENDMENT

 
 

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