Document:

Exhibit 10.1

 

CONSENT TO CREDIT AGREEMENT

 

CONSENT
TO CREDIT AGREEMENT (this “Consent”), dated as of May 14, 2004, among
Nash-Finch Company, a Delaware corporation (the “Borrower”), the
undersigned lenders party to the Credit Agreement referred to below (the “Lenders”)
and Deutsche Bank Trust Company Americas (formerly known as Bankers Trust
Company), as administrative agent for the Lenders (the “Administrative Agent”).  All capitalized terms used herein and not
otherwise defined shall have the respective meanings provided such terms in the
Credit Agreement referred to below.

 

W  I  T
N  E  S  S  E  T  H :

 

WHEREAS, the Borrower, the
Lenders, the Syndication Agents, the Documentation Agent and the Administrative
Agent have entered into that certain Credit Agreement, dated as of
December 19, 2000 (as amended, modified or supplemented through, but not
including, the date hereof, the “Credit Agreement”); and

 

WHEREAS, the parties hereto
wish to consent to the Consented Transactions (as defined below) with respect
to the Credit Agreement on the terms and conditions set forth herein;

 

NOW, THEREFORE, it is
agreed:

 

1.  Notwithstanding anything to
the contrary contained in Sections 9.02, 9.05, 9.06 or elsewhere in the Credit
Agreement, each of the Lenders hereby consents to the closing and any related
sale of the assets comprising each of the retail stores (collectively, the “Retail
Stores to be Closed” and each, a “Retail Store to be Closed”) set
forth on Schedule I hereto (collectively, the “Retail Closings”); provided
that (i) each Retail Store to be Closed is either obsolete or uneconomic or the
Borrower shall have determined in its reasonable business judgment that the
closure of such Retail Store to be Closed would improve the financial condition
of the Borrower and its Subsidiaries taken as a whole, (ii) the aggregate fair
market value (as determined in good faith by the Borrower) of all Retail Stores
to be Closed shall not exceed $15,000,000, (iii) the sale, transfer or other
disposition by the Borrower or any of its Subsidiaries to any Person (other
than a Credit Party) of any assets comprising a Retail Store to be Closed
(including, without limitation, any inventory or equipment) in connection with
the Retail Closings (a) shall be consummated pursuant to an arm’s-length
transaction and the Borrower or the relevant Subsidiary shall receive at least
fair market value (as determined in good faith by the Borrower) therefor, (b)
the consideration therefor shall be cash or promissory notes, (c) any such
consideration which is in the form of promissory notes and any security for the
obligations therefor shall be pledged to the Collateral Agent to the extent
required by the Pledge Agreement and (d) each such promissory note shall be
guaranteed and secured on a basis consistent with the Borrower’s customary
procedures and its past practices, and (iv) to the extent any assets are sold,
transferred or otherwise distributed to a Credit Party as part of any Retail
Closing, on or prior to the date of such sale, transfer or other disposition,
the Borrower will, and will cause each of its Subsidiaries to, at the expense
of the Borrower, make, execute, endorse, acknowledge, file and/or deliver to
the Collateral Agent such vouchers, invoices, schedules, confirmatory
assignments, conveyances, financing statements,transfer
endorsements, powers of attorney, certificates, real property surveys, reports,
landlord waivers and other assurances or instruments and take such further
steps relating to the Collateral covered by any of the Security Documents in
order to maintain the

 

 

security
interests (and the priorities) set forth therein in respect of such Collateral
and take such other actions as the Collateral Agent may reasonably request.

 

2.  Notwithstanding anything to
the contrary contained in Section 9.02, 9.05 or elsewhere in the Credit
Agreement, each of the Lenders hereby consents to the sale by the Borrower and
its Subsidiaries (collectively, the “Retail Store Sales” and, together
with the Retail Closings, the “Consented Transactions”) of each of the
retail stores and/or assets set forth on Schedule II (collectively, the “Retail
Stores to be Sold” and each, a “Retail Store to be Sold”); provided
that (i) each such sale of a Retail Store to be Sold is consummated
pursuant to an arm’s-length transaction and the Borrower or such Subsidiary
receives at least fair market value (as determined in good faith by the
Borrower) therefor, (ii) the consideration for each Retail Store to be
Sold shall be cash or promissory notes; provided that (x) any such
consideration which is in the form of promissory notes and any security for the
obligations therefor shall be pledged to the Collateral Agent to the extent
required by the Pledge Agreement and (y) each such promissory note shall be
guaranteed and secured on a basis consistent with the Borrower’s customary
procedures and its past practices, (iii) the aggregate amount of proceeds
received from all Retail Stores to be Sold shall not exceed $18,500,000, and
(iv) to the extent the Borrower and its Subsidiaries are able to sell any of
the retail stores set forth on Schedule I hereto, the Borrower shall
notify the Administrative Agent of such sale no less than five days prior to
the consummation thereof, and from and after the date of such notice, any such
retail store shall be deemed a Retail Store to be Sold for purposes of this
Consent; provided that any such sale (x) complies with the requirements
of this Section 2 and (y) the aggregate amount of proceeds received from
such sale shall first, constitute a utilization of the amount set forth in
clause (iii) above and second, to the extent such aggregate proceeds exceeds
the amount set forth in clause (iii) above, shall constitute a utilization of
the amount set forth in clause (ii) of Section 1 above.

 

3.  It is understood and agreed
that (i) the Retail Closings shall not be considered a utilization of any
basket or amount set forth in Section 9.02(xiv) or 9.05(xii), so long as
such Retail Closings comply with each of the conditions set forth in Section 1
above, (ii) the Retail Store Sales shall not be considered a utilization of any
basket or amount set forth in Section 9.02(v) or (xvii) or
Section 9.05(xii) of the Credit Agreement, so long as such Retail Store
Sales comply with each of the conditions set forth in Section 2 above, and
(iii) 100% the Net Sale Proceeds received by the Borrower or its Subsidiaries
in connection with the Consented Transactions shall be applied on the date of
the receipt thereof as a mandatory prepayment of the outstanding Term Loans in
accordance with requirements of Section 4.02(f).

 

4.  In order to induce the
Lenders to provide this Consent, the Borrower hereby represents and warrants
that, both before and after giving effect to this Amendment, (x) no Default or
Event of Default exists on the Consent Effective Date (as defined below) and
(y) all of the representations and warranties contained in the Credit Agreement
and the other Credit Documents shall be true and correct in all material
respects on the date hereof and on the Consent Effective Date with the same
effect as though such representations and warranties had been made on and as of
such date (it being understood that any representation or warranty made as of a
specific date shall be true and correct in all material respects as of such
specific date).

 

5.  This Consent is limited as
specified and shall not constitute a consent, modification, acceptance or
waiver of any other provision of the Credit Agreement or any other Credit
Document, and the Administrative Agent and the Lenders hereby reserve all of
their rights and remedies otherwise available to them under the Credit
Agreement, the Credit Documents and applicable law.

 

 

6.  This Consent may be executed
in any number of counterparts and by the different parties hereto on separate
counterparts, each of which counterparts when executed and delivered shall be
an original, but all of which shall together constitute one and the same
instrument.  A complete set of
counterparts shall be lodged with the Borrower and the Administrative Agent.

 

7.  THIS CONSENT AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

8.  This Consent shall become
effective on the date (the “Consent Effective Date”) when (i) the
Borrower and the Required Lenders shall have signed a counterpart hereof
(whether the same or different counterparts) and shall have delivered
(including by way of facsimile transmission) the same to the Administrative
Agent at the Notice Office and (ii) all fees and other compensation
contemplated payable in connection with this Amendment shall have been paid to
the extent due.

 

9.  From and after the Consent
Effective Date, all references in the Credit Agreement and each of the Credit
Documents to the Credit Agreement shall be deemed to be references to the
Credit Agreement as modified hereby.

 

*     *     *

 

 

IN WITNESS WHEREOF, each of
the parties hereto has caused a counterpart of this Consent to be duly executed
and delivered as of the date first above written.

 

 

	
   

  	
  NASH-FINCH COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Ron Marshall

  
	
   

  	
   

  	
  Name:

  	
  Ron Marshall

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS (formerly known as Bankers

  Trust Company), Individually and as

  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Scottye Lindsey

  
	
   

  	
   

  	
  Name:

  	
  Scottye Lindsey

  
	
   

  	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  SIGNATURE
  PAGE TO THE CONSENT to the Credit

  Agreement, dated as of December 19, 2000, among

  Nash-Finch Company, various lenders from time to time

  party thereto and Deutsche Bank Trust Company

  Americas, as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  NAME
  OF INSTITUTION:

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF TOKYO-MITSUBISHI, LTD.,

  CHICAGO BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick McCue

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Patrick
  McCue

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President & Manager

  
	
   

  	
   

  
	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leanne C. Manning

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Leanne
  C. Manning

  
	
   

  	
   

  	
  Title:

  	
  Duly
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
  HARRIS
  TRUST AND SAVINGS BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Scott Place

  	
   

  
	
   

  	
   

  	
  Name:

  	
  C.
  Scott Place

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  NATIONAL
  CITY BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas E. Redmond

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thomas
  E. Redmond

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sam S. Pepper Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sam
  S. Pepper Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  
										

 

 

SCHEDULE I

 

RETAIL STORES TO BE CLOSED

 

	
  Store

  	
   

  	
  Address

  
	
  EconoFoods
  #486

  	
   

  	
  2601
  South Louise Avenue, Sioux Falls SD

  
	
  EconoFoods
  #470

  	
   

  	
  101
  Iowa Avenue West, Marshalltown IA

  
	
  EconoFoods
  #491

  	
   

  	
  1411
  Flammang Drive, Waterloo IA

  
	
  Econofoods
  #342

  	
   

  	
  3470
  55th Street NW, Rochester MN

  
	
  EconoFoods
  #337

  	
   

  	
  1200
  16th Street, SW Rochester MN

  
	
  Sun
  Mart #272

  	
   

  	
  1510
  East 20th Street, Scottsbluff NE

  
	
  EconoFoods
  #508

  	
   

  	
  801
  West Town Line Road, Creston IA

  
	
  EconoFoods
  #490

  	
   

  	
  2915
  McClain Drive, Cedar Falls IA

  
	
  EconoFoods
  #466

  	
   

  	
  1800
  51st Street, NE, Cedar Rapids IA

  
	
  EconoFoods
  #510

  	
   

  	
  300
  Gilbert, Charles City IA

  
	
  Buy
  N Save #831

  	
   

  	
  822
  South Broadway, Albert Lea MN

  
	
  Buy
  N Save #843

  	
   

  	
  20
  Signal Hills Road, West St. Paul MN

  
	
  Buy
  N Save #830

  	
   

  	
  7632
  Brooklyn Blvd., Brooklyn Park MN

  
	
  Buy
  N Save #848

  	
   

  	
  4152
  Lakeland Avenue North, Robbinsdale MN

  
	
  Buy
  N Save #832

  	
   

  	
  1700
  Rice Street, Maplewood MN

  
	
  Avanza
  #401

  	
   

  	
  5801
  W. 44th Avenue, Denver CO

  
	
  Avanza
  #404

  	
   

  	
  1153
  South Prairie Avenue, Pueblo CO

  
	
  Avanza
  #405

  	
   

  	
  2551
  West Cermak, Chicago IL

  
	
  Avanza
  #406

  	
   

  	
  5220
  South Pulaski, Chicago IL

  

 

 

RETAIL STORES TO BE SOLD

 

	
  Store

  	
   

  	
  Address

  
	
  Avanza
  #402

  	
   

  	
  1320
  South Federal Blvd., Denver CO

  
	
  Avanza
  #403

  	
   

  	
  7305
  Pecos Street, Denver CO<PAGE>

                                                                  EXHIBIT 10.25

                          UNITED STATED DISTRICT COURT
                          SOUTHERN DISTRICT OF NEW YORK

--------------------------------------------------x
                                                     :
THE ZEMEL FAMILY TRUST, on behalf of itself,         :      00 Civ. 7438 (MGC)
and a class of persons similarly situated,           :
                                                     :
                                    Plaintiff,       :      STIPULATION AND
                                                     :      ORDER PROVIDING
         - against -                                 :      FOR VOLUNTARY
                                                     :      DISMISSAL
PHILIPS INTERNATIONAL REALTY CORP., PHILIP           :
PILEVSKY, LOUIS J. PETRA, SHEILA LEVINE,             :
BRIAN GALLAGHER, ELISE JAFFE, ROBERT S.              :
GRIMES, ARNOLD S. PENNER and A.F.                    :
PETROCELLI,                                          :
                                                     :
                                    Defendants.      :
                                                     :
--------------------------------------------------x

         WHEREAS, Philips International Realty Corporation ("Philips") is a
publicly held real estate investment trust ("REIT") incorporated under Maryland
law;

         On September 8, 2000, Philips issued a proxy solicitation statement
(the "Proxy") soliciting shareholder approval of a plan of liquidation (the
"Liquidation");

         On or about October 2, 2000, the Zemel Family Trust (the "Trust" or
"Plaintiff"), whose trustees and beneficiaries are Barry and Barbara Zemel,
initiated this action (the "Action") against Philips and Philip Pilevsky, Louis
J. Petra, Sheila Levine, Brian Gallagher, Elise Jaffe, Robert S. Grimes, Arnold
S. Penner and A.F. Petrocelli (collectively "Defendants") and moved by order to
show cause for a preliminary injunction to prevent Philips from proceeding with
the Liquidation on the alleged ground that the Proxy regarding the Liquidation
was materially false and misleading in violation of Section 14(a) of the
Securities and Exchange Act of 1934 (the "Exchange Act");

         On or about October 10, 2000, the shareholders of Philips approved the
Liquidation pursuant to the Proxy;

         At all times, Philips has disputed plaintiffs claims of wrongdoing and
unlawful conduct, and has denied the material allegations of the complaint;

                                      -22-
<PAGE>

         On November 6 and 9, 2000, the District Court conducted a two-day full
evidentiary hearing on the Trust's motion for a preliminary injunction. At the
conclusion of the hearing, Judge Cedarbaum denied Plaintiff's motion for a
preliminary injunction from the bench;

         On or about November 30, 2000, the Court issued a Memorandum Opinion
and Order holding that the Trust "has shown neither the likelihood of success on
the merits nor raised a sufficiently serious question going to the merits to
entitle it to the extraordinary relief it seeks;"

         On or about January 10, 2001, Plaintiff filed an amended class action
complaint (the "Amended Complaint");

         On or about January 31, 2001, Plaintiff moved for appointment of lead
counsel in this action, which motion was granted;

         On or about February 26, 2001, Philips moved for an order dismissing
claim three, breach of fiduciary duty, of the Amended Complaint which the Court
denied and deemed the Amended Complaint to have alleged futility of demand;

         On February 5, 2002, the District court denied the Trust's motion for
class certification;

         On May 28, 2003, the United States Court of Appeals for the Second
Circuit denied the Trusts' motion seeking leave to appeal the District Court's
denial of class certification;

         Notwithstanding the pendency of the action for over three and a half
years, the fact that Plaintiff filed a notice of Pendency pursuant to the
Private Securities Litigation and Reform Act, and the fact that Philips has
discussed the litigation, in detail, in its various public filings and press
releases over the past three years, no other shareholder of Philips has stepped
forward to pursue the claims alleged in the Amended Complaint;

         Philips has sold all of the properties comprising the Liquidation
transaction, and when all distributions are made, Philips anticipates that the
consideration to shareholders will fall within 1% of the amount anticipated in
the Proxy. The Plaintiff, on consent, wishes to voluntarily dismiss its
remaining claims with prejudice which, in effect, would result in the dismissal
of both its individualized federal securities fraud claims and the named
plaintiff's claims denominated as derivative claims on behalf of Philips;

         The voluntary dismissal with prejudice is not the product of collusion
between or among Plaintiffs and Defendants;

         Neither Plaintiff or its counsel have received any consideration
whatsoever in exchange for agreeing to voluntarily dismiss this action;

                                      -23-
<PAGE>

         NOW, THEREFORE, IT IS HEREBY STIPULATED, AGREED AND ORDERED THAT:

         1.       All parties shall bear their own costs.

         2.       The case is dismissed pursuant to Rules 41 and 23.1 of the
Federal Rules of Civil Procedure in its entirety and with prejudice.

                                      -24-
<PAGE>

Dated:   New York, New York
         July 22, 2004

<TABLE>

<S>                                            <C>
PRYOR CASHMAN SHERMAN                          GOODKIND LABATON RUDOFF
& FLYNN LLP                                    & SUCHAROW, LLP

By: /s/ JAMES A. JANOWITZ                       By: /s/ LYNDA GRANT
    ---------------------                           ---------------
    James A. Janowitz (JJ 8788)                     Lynda Grant (LJG 4874)
    410 Park Avenue                                 100 Park Avenue
    New York, NY 10022                              New York, NY 10017
    (212) 421-4100                                  (212) 907-0700
    Attorneys for Defendants                        Attorneys for Plaintiff
    Philips International Realty Corp.,
    Philip Pilevsky, Louis J. Petra and
    Sheila Levine                               RICHARD SPEARS KIBBE & ORBE

                                                By: /S/ DAVID SPEARS
                                                    ----------------
                                                    David Spears, Esq.
                                                    One World Financial Center
                                                    New York, NY 10281-1003
                                                    (212) 530-1800
                                                    Attorneys for Defendants
                                                    Brian Gallagher, Elise Jaffe,
                                                    Robert S. Grimes, Arnold S. Penner
                                                    And A.F. Petrocelli

SO ORDERED:

________________________

</TABLE>

                                      -25-

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