Document:

Exhibit 10.2

 

EXECUTION
VERSION

 

AMENDMENT
NO. 1 TO ASSET PURCHASE AGREEMENT

 

This Amendment No. 1
to Asset Purchase Agreement (this “Amendment”), dated
February 27, 2009, is made by and among Sara Lee Corporation, a Maryland
corporation (“Seller”),
Saramar, LLC, a Delaware limited liability company (“Saramar”), and Farmer Bros. Co., a Delaware
corporation (“Buyer”).

 

RECITALS

 

A.                                   The parties hereto are parties to that
certain Asset Purchase Agreement dated December 2, 2008 (the “Asset Purchase Agreement”)  pursuant
to which Buyer has agreed to purchase from Seller and Saramar all of the assets
of the DSD Business (as defined in the Asset Purchase Agreement).

 

B.                                     The parties wish to amend the Asset
Purchase Agreement as provided below.

 

Accordingly, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.                                       All capitalized terms used and not
defined in this Amendment shall have the meanings ascribed to them in the Asset
Purchase Agreement.

 

2.                                       The Asset Purchase Agreement is hereby
amended as follows:

 

a.                                       Exhibit A. Exhibit A of the Asset Purchase
Agreement is hereby deleted and a new Exhibit A, appended hereto as Attachment
A, is hereby substituted in its place.

 

b.                                      Section 1.1(c). Section 1.1(c) of the
Asset Purchase Agreement is hereby amended by adding the following new sentence
at the end of Section 1.1(c):

 

“In addition, Seller
makes no representation or warranty regarding the accuracy of any other list
(whether written, electronic or in any other form) of the Brew Equipment
Inventory, whether dated prior to, on or after the date hereof.”

 

c.                                       Section 3.1. Section 3.1
of the Asset Purchase Agreement is hereby deleted and the following is hereby
substituted in its place:

 

“The Closing.
Subject to Article VII, the exchange of documents required to
consummate the transactions contemplated by this Agreement shall take place at
5:00 p.m., central standard time, on Friday, February 27, 2009, at
the offices of Sonnenschein Nath & Rosenthal LLP, located in Chicago,
but consummation of the transaction (the “Closing”)  shall
be effective as of 11:59 p.m., eastern standard time, on Saturday, February 28,
2009 (the “Closing Date”); provided,
however, that the cash portion of the Closing Payment (determined pursuant to Section 2.1)
shall be tendered by Buyer to Seller by wire transfer of

 

 

same day funds at such
time as federally insured financial institutions open for business on Monday, March 2,
2009, in New York, New York, and the Note, if applicable, shall be physically
tendered to Seller or its representatives by 9:00 a.m., central standard
time, on Monday, March 2, 2009, at the offices of Sonnenschein Nath &
Rosenthal LLP, located in Chicago; provided further, however, that such
transactions may occur on such other dates, times or places as agreed to in
writing by Buyer and Seller.”

 

d.                                      Section 3.2(d)(v). Section 3.2(d)(v) of
the Asset Purchase Agreement is hereby deleted and the following is hereby
substituted in its place:

 

“A Cappuccino and Cocoa
Transition Agreement with Seller’s manufacturer pursuant to which Seller’s
designee may supply to Buyer certain cappuccino and cocoa products on the terms
set forth therein (the “Cappuccino and Cocoa
Transition Agreement”), substantially in the form
attached hereto as Exhibit H (and subject to any reasonable
modifications required by said manufacturer);”

 

e.                                       Exhibit O. Exhibit O of the Asset Purchase
Agreement is hereby deleted and a new Exhibit O, appended hereto as Attachment
B, is hereby substituted in its place.

 

f.                                         Schedules. Schedules 1.1(a)-1 (Certain DSD Business Marks),
1.1(a)-2 (Certain DSD Business Marks), 1.1(f) (Personal Property Leases),
4.9 (Payment of Taxes), 4.11 (Leased Real Property), 4.13-2 (Owned Vehicles),
4.15 (Intellectual Property), 4.16-1 (Permits), 4.16-2 (Compliance with
Permits), 4.17(a) (Material Contracts), 4.20(b) (Information about
Hired Personnel), and 4.21 (Hazardous Substances) to the Asset Purchase
Agreement are hereby amended and restated in their entirety. New Schedules
1.1(a)-1 (Certain DSD Business Marks), 1.1(a)-2 (Certain DSD Business Marks),
1.1(f) (Personal Property Leases), 4.9 (Payment of Taxes), 4.11 (Leased
Real Property), 4.13-2 (Owned Vehicles), 4.15 (Intellectual Property), 4.16-1
(Permits), 4.16-2 (Compliance with Permits), 4.17(a) (Material Contracts),
4.20(b) (Information about Hired Personnel), and 4.21 (Hazardous
Substances) are hereby substituted in their place, and are, along with the rest
of the Schedules which have not been amended and restated, appended hereto as Attachment
C.

 

g.                                      Section 7.1(f). Section 7.1(f) of the
Asset Purchase Agreement is hereby deleted and the following is hereby
substituted in its place:

 

“The parties shall have
entered into each of the Operational Agreements and the Option Agreement, and
the manufacturer shall have duly executed and delivered the Cappuccino and
Cocoa Transition Agreement.”

 

3.                                       Except as modified by the above, the
Asset Purchase Agreement is hereby restated and confirmed in all respects and
is binding upon the parties hereto. This Amendment

 

2

 

may be executed in any
number of counterparts with the same effect as if all parties hereto had signed
the same document.

 

[Signature Page Follows]

 

3

 

IN WITNESS WHEREOF, the
parties have executed this Amendment on the date first above written.

 

 

	
   

  	
  SARA LEE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark S. Silver

  
	
   

  	
  Name: 

  	
  Mark S. Silver

  
	
   

  	
  Title: 

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SARAMAR, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark S. Silver

  
	
   

  	
  Name: 

  	
  Mark S. Silver

  
	
   

  	
  Title: 

  	
  Vice President and
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FARMER
  BROS. CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger M. Laverty
  III

  
	
   

  	
  Name: 

  	
  Roger M. Laverty III

  
	
   

  	
  Title: 

  	
  President and Chief
  Executive Officer

  

 

Signature Page – Amendment No. 1 to Asset
Purchase Agreement.Exhibit 10.5

 

[EXECUTION]

 

AMENDMENT NO. 1

TO

LOAN AND SECURITY AGREEMENT AND CONSENT

 

THIS
AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT AND CONSENT (this “Amendment No. 1”),
dated as of March 2, 2009, is by and among Wachovia Bank, National
Association, a national banking association (“Lender”), Farmer Bros. Co., a
Delaware corporation (as surviving corporation of the merger with FBC Realty, LLC
formerly known as SL Realty, LLC, a Delaware limited liability company, “Farmer”)
and Coffee Bean International, Inc., an Oregon corporation (“CBI” and
together with Farmer, each individually a “Borrower” and collectively, “Borrowers”),
Coffee Bean Holding Co., Inc., a Delaware corporation (“Coffee Holding”), FBC
Finance Company, a California corporation (“Finance” and together with Coffee
Holding, each individually a “Guarantor” and collectively, “Guarantors”).

 

W I T N E S S E T H :

 

WHEREAS,
Lender, Borrowers and Guarantors have entered into financing arrangements
pursuant to which Lender has made, and may make, loans and advances and provide
other financial accommodations to Borrowers as set forth in the Loan and
Security Agreement, dated as of March 2, 2009, by and among Lender, Borrowers
and Guarantors, the “Loan Agreement”, and together with all agreements, documents
and instruments at any time executed or delivered in connection therewith or
related thereto, as from time to time amended and supplemented, collectively, the
“Financing Agreements”);

 

WHEREAS,
Borrowers and Guarantors have requested that Lender agree to make certain
amendments to the Loan Agreement and agree to certain consents under the Loan
Agreement, and Lender is willing to agree, subject to the terms and conditions
set forth herein, to make such amendments and agree to such consents, as more specifically
set forth herein; and

 

WHEREAS,
by this Amendment No. 1, Lender, Borrowers and Guarantors desire and
intend to evidence such amendments and consents.

 

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

 

1.
Definitions.

 

1.1
 Additional Definition. As used herein,
the term “Amendment No. 1” shall mean Amendment No. 1 to Loan and
Security Agreement and Consent, by and between Lender and Borrower, as the same
now exists or may hereafter be amended, modified, supplemented, extended, renewed,
restated or replaced, and the Loan Agreement and the other Financing Agreements
shall be deemed and are hereby amended to include, in addition and not in
limitation, such definition.

 

 

1.2
 Amendment to Definitions.

 

(a)  The definition of “Preferred Stock Portfolio” in Section 1.104
of the Loan Agreement is hereby amended by deleting the reference to “Finance”
and replacing it with “Parent”.

 

(b)  The definition of “Security Provisions” in Section 1.120
of the Loan Agreement is hereby amended by deleting such definition in its
entirety and replacing it with the following:

 

“1.120
‘Security Provisions’ shall mean the following provisions of the Financing
Agreements (as the same now exist or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced): (a) Section 1(a) of
the Guarantee, dated even date herewith, by Guarantors in favor of Lender; (b) Section 2
of each Pledge and Security Agreement, dated even date herewith, by Farmer in
favor of Lender; (c) Section 2 of the Pledge and Security Agreement, dated
even date herewith, by Coffee Holding in favor of Lender; (d) Section 2
of the Collateral Assignment of Acquisition Agreements, dated of even date
herewith, by Farmer in favor of Lender; (e) Section 2 of the
Copyright Collateral Assignment and Security Agreement, dated even date
herewith, by Farmer in favor of Lender; (f) Section 2 of the
Trademark Collateral Assignment and Security Agreement, dated even date
herewith, by Farmer in favor of Lender; (g) Section 2 of the Trademark
Collateral Assignment and Security Agreement, dated even date herewith, by CBI
in favor of Lender; (h) Section 2 of the Trademark Collateral
Assignment and Security Agreement, dated even date herewith, by Finance in
favor of Lender; (i) Section 2 of the Investment Property Pledge and
Security Agreement, dated March 6, 2009 by Finance in favor of Lender; and
(j) such other sections of such other Financing Agreements as Lender may from
time to time designate as a Security Provision in a writing delivered by Lender
to Administrative Borrower.”

 

(c)  The definition of “Specified Investment Account” in Section 1.123
of the Loan Agreement is hereby amended by deleting the reference to “Finance”
and replacing it with “Parent”.

 

1.3
 Interpretation. All capitalized
terms used herein shall have the meanings assigned thereto in the other
Financing Agreements, unless otherwise defined herein. All references to the
plural herein shall also mean the singular and all references to the singular
herein shall also mean the plural, in each case unless otherwise required by
the context of the use thereof.

 

2.
 Consent. Subject to the terms and
conditions hereof and notwithstanding anything to the contrary contained in Section
9.7(b) or Section 9.22 of the Loan Agreement, Lender hereby consents to
the transfer of the Specified Investment Account from Finance to Parent; provided,
that, within thirty (30) days after the effective date of this Amendment
No. 1, Parent shall deliver to Lender a statement received by Parent
setting forth the balance of the Specified Investment 

 

2

 

Account
and naming Parent as the account party with respect to the Specified Investment
Account.

 

3.  Additional
Representations, Warranties and Covenants. Borrowers and Guarantors
represent, warrant and covenant with and to Lender as follows, which
representations, warranties and covenants, together with the representations, warranties
and covenants in the other Financing Agreements, are continuing and shall
survive the execution and delivery hereof, and the truth and accuracy of, or
compliance with each, being a continuing condition of the making of Loans by
Lender to Borrowers:

 

3.1
 No action of, or filing with, or consent
of any Governmental Authority, and no approval or consent of any other Person, is
or will be required to authorize, or is or will be otherwise required in
connection with, the execution, delivery and performance by Borrowers and
Guarantors of this Amendment No. 1.

 

3.2
 This Amendment No. 1 and each other
agreement, document or instrument to be executed and delivered by any Borrower
or Guarantor in connection therewith or herewith has been duly authorized, executed
and delivered by all necessary action on the part of such Borrower or Guarantor,
and Amendment No. 1 and each other agreement, document or instrument to be
executed and delivered by Borrowers and Guarantors in connection therewith or
herewith is in full force and effect as of the date of Amendment No. 1 and
the agreements and obligations of Borrowers and Guarantors contained herein and
therein constitute legal, valid and binding obligations of Borrowers and
Guarantors enforceable against Borrowers and Guarantors in accordance with
their respective terms.

 

3.3
 Neither the execution and delivery of
this Amendment No. 1 or the documents, agreements or instruments executed
or delivered in connection therewith or related thereto, nor the consummation
of the transactions herein or therein contemplated, nor compliance with the
provisions hereof or thereof is in contravention of any law or regulation or
any order or decree of any court or Governmental Authority applicable to
Borrowers and Guarantors in any respect, or conflicts with or result in the
breach of, or constitutes a default in any respect under any mortgage, deed of
trust, security agreement, agreement or instrument to which any Borrower or
Guarantor is a party or may be bound, or violates any provision of the
formation or other organizational documents of any Borrower or Guarantor.

 

3.4
 After giving effect to this Amendment No. 1,
no Event of Default or act, condition or event which with notice or passage of
time or both would constitute an Event of Default exists or has occurred and is
continuing on the date of Amendment No. 1.

 

4.  Conditions Precedent. The effectiveness of the
amendments and consents contained herein shall be subject to the receipt by
Lender of each of the following, in form and substance satisfactory to Lender:

 

4.1
 an original of this Amendment No. 1,
duly authorized, executed and delivered by the parties hereto;

 

3

 

4.2
 a true and correct copy of any consent, waiver
or approval to or of this Amendment No. 1, which any Borrower or Guarantor
is required to obtain from any other Person; and

 

4.3
 after giving effect to this Amendment No. 1,
no Event of Default or act, condition or event which with notice or passage of
time or both would constitute an Event of Default exists or has occurred and is
continuing on the date of this Amendment No. 1.

 

5.  Effect of this Amendment. Except
as expressly set forth herein, no other amendments, consents, changes or
modifications to the Financing Agreements are intended or implied, and in all
other respects the Financing Agreements are hereby specifically ratified, restated
and confirmed by all parties hereto as of the effective date hereof and
Borrowers and Guarantors shall not be entitled to any other or further
amendment or consent by virtue of the provisions of this Amendment No. 1
or with respect to the subject matter of this Amendment No. 1. To the
extent of conflict between the terms of this Amendment No. 1 and the other
Financing Agreements, the terms of this Amendment No. 1 shall control. The
Loan Agreement and this Amendment No. 1 shall be read and construed as one
agreement.

 

6.  Further Assurances. The parties
hereto shall execute and deliver such additional documents and take such
additional action as may be necessary or desirable to effectuate the provisions
and purposes of this Amendment No. 1.

 

7.  Governing Law. The validity, interpretation
and enforcement of this Amendment No. 1 and the other Financing Agreements
and any dispute arising out of the relationship between the parties hereto
whether in contract, tort, equity or otherwise, shall be governed by the
internal laws of the State of California but excluding any principles of
conflict of laws or other rule of law that would cause the application of
the law of any jurisdiction other than the laws of the State of California.

 

8.  Waiver, Modification, Etc. No
provision or term hereof may be modified, altered, waived, discharged or
terminated orally, but only by an instrument in writing executed by the party
against whom such modification, alteration, waiver, discharge or termination is
sought to be enforced.

 

9.  Entire Agreement. This
Amendment No. 1 represents the entire agreement and understanding
concerning the subject matter hereof among the parties hereto, and supersedes
all other prior agreements, understandings, negotiations and discussions, representations,
warranties, commitments, proposals, offers and contracts concerning the subject
matter hereof, whether oral or written.

 

10. Binding Effect. This Amendment No. 1
shall be binding upon and inure to the benefit of each of the parties hereto
and their respective successors and assigns.

 

11. Severability. Any provision of this
Agreement held by a court of competent jurisdiction to be invalid or
unenforceable shall not impair or invalidate the remainder of this Agreement
and the effect thereof shall be confirmed to the provision so held to be
invalid or unenforceable.

 

4

 

12. Headings. The headings
listed herein are for convenience only and do not constitute matters to be
construed in interpreting this Amendment No. 1.

 

13. Counterparts. This Amendment No. 1
may be executed in any number of counterparts, each of which shall be an
original, but all of which taken together shall constitute one and-the same
agreement. Delivery of an executed counterpart of this Amendment No. 1 by
telefacsimile or other electronic method of transmission shall have the same
force and effect as the delivery of an original executed counterpart of this
Amendment No. 1. Any party delivering an executed counterpart of this
Amendment No. 1 by telefacsimile or other electronic method of
transmission shall also deliver an original executed counterpart of this
Amendment No. 1, but the failure to do so shall not affect the validity, enforceability
or binding effect of such agreement.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

5

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be
duly executed and delivered by their authorized officers as of the day and year
first above written.

 

	
  LENDER

  	
   

  	
  BORROWERS

  
	
   

  	
   

  	
   

  
	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION

  	
   

  	
  FARMER
  BROS. CO.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Gary Whitaker

  	
   

  	
  By:

  	
  /s/
  John E. Simmons

  
	
  Name:

  	
  Gary
  Whitaker

  	
   

  	
  Name:
  

  	
  John
  E. Simmons

  
	
  Title:
  

  	
  Director

  	
   

  	
  Title:
  

  	
  Treasurer
  and CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COFFEE
  BEAN INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  John E. Simmons

  
	
   

  	
   

  	
  Name:
  

  	
  John
  E. Simmons

  
	
   

  	
   

  	
  Title:
  

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTORS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COFFEE
  BEAN HOLDING CO., INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  John E. Simmons

  	
   

  	
   

  
	
  Name:

  	
  John
  E. Simmons

  	
   

  	
   

  
	
  Title:
  

  	
  Treasurer
  and CFO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FBC
  FINANCE COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  John E. Simmons

  	
   

  	
   

  
	
  Name:
  

  	
  John
  E. Simmons

  	
   

  	
   

  
	
  Title:
  

  	
  Director

  	
   

  	
   

  

 

[Amendment No. 1 to Loan and Security Agreement]

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