Document:

United States Securities and Exchange Commission Edgar Filing

Exhibit 10.1

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT 

THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT ("Amendment") is made this 4th day of JUNE , 2009, by and between CUISINE SOLUTIONS, INC., a Delaware corporation (the "Borrower"), and BRANCH BANKING AND TRUST COMPANY (the "Bank"). 

R E C I T A L S 

WHEREAS, the Bank is the owner and holder of a certain note in the amount not to exceed SEVEN MILLION FIVE HUNDRED THOUSAND AND N0/100 DOLLARS ($7,500,000.00), made payable by the Borrower to the order of Bank (the "Note"); and 

WHEREAS, the Note is secured by a certain Loan and Security Agreement by and between the Borrower and the Bank dated June 15, 2007, as amended, which Loan and Security Agreement, as previously amended, is hereinafter referred to as the "Loan Agreement"; and 

WHEREAS, Borrower and Bank have agreed to further amend the Loan Agreement pursuant to the terms and conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the premises and the sum of Ten and 00/100 Dollars ($10.00) in hand paid by each of the parties hereto to the other, receipt of which by each of the parties hereto from the other is hereby acknowledged, and in consideration of the mutual covenants and undertakings hereinafter set forth, the parties hereto, for themselves and for their respective heirs, successors, personal representatives and assigns, hereby covenant and agree as follows: 

1.

The "WHEREAS" clauses set forth above are incorporated herein by this reference as if set forth in full. 

2.

Section 6.13 (b) of the Loan Agreement is hereby deleted and the following hereby substituted therefor: 

“6.13

Financial Covenants. 

(b) Borrower will maintain Tangible Net Worth plus Subordinated Debt of not less than $18,000,000.00 to be tested by the Bank on a quarterly basis."  

3.

Schedule DD attached hereto shall replace in all respects the Schedule DD currently attached to the Loan Agreement. 

- 1 -

4.

Nothing herein contained shall in any way be construed to impair the Loan Agreement or the lien thereof. The parties to this Amendment do not intend that this Amendment be construed as a novation of either the Note or the Loan Agreement. 

5.

The Borrower further covenants and agrees that it knows of no defenses or setoffs with respect to the Note or with respect to the Loan Agreement, as modified by the terms herein, or with respect to the collection or enforcement of any of the same. Borrower hereby releases and discharges Bank from any and all claims, demands, rights and causes of action, whether known or unknown, which Borrower may now have against Bank on account of the loan evidenced by the Note, and covenant not to sue the Bank on account of any such claim, demand, right or cause of action. The Borrower covenants and warrants that each and every of the provisions of the Note are in full force and effect and are lawful and binding obligations of the Borrower and enforceable in accordance with their respective terms. 

6.

Each and every of the terms and provisions of this Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors, personal representatives and assigns. 

IN WITNESS WHEREOF, the parties hereto have executed or caused to be executed this Agreement, under seal as of the date first above written. 

					
	 
	 
	BORROWER: 

	 
	 
	CUISINE SOLUTIONS, INC., a Delaware corporation

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:

	

	[SEAL] 

	 
	 
	 
	Stanislas Vilgrain,

	 

	 
	 
	 
	President

	 

	 
	 
	 
	 
	 

	 
	 
	By:

	

	[SEAL] 

	 
	 
	 
	Ronald Zilkowski,

	 

	 
	 
	 
	Treasurer

	 

- 2 -

					
	 
	 
	BANK:: 

	 
	 
	 

	 
	 
	BRANCH BANKING AND TRUST COMPANY

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By: 

	/s/ Henry Abbott

	[ SEAL] 

	 
	 
	Name:

	Henry Abbott

	 

	 
	 
	Title:

	Vice President

	 

- 3 -Exhibit 10

Exhibit 10.2

ADDENDUM TO PROMISSORY NOTE 

THIS ADDENDUM TO PROMISSORY NOTE ("Addendum") Is hereby made a part of the Promissory Note dated June 4, 2009 from CUISINE SOLUTIONS,INC. ("Borrower") payable to the order of Branch Banking and Trust Company ("Bank") in the principal amount of $7,500,000.00 (including all renewals, extensions, modifications and substitutions therefore, the "Note"). 

I.

DEFINITIONS 

1.1

Adjusted LlBOR Rate means a rate of interest per annum equal to the sum obtained (rounded upwards, if  necessary, to the next higher l/100th of 1.0%) by adding (i) the One Month LlBOR plus (ii) 2.250% per annum, which shall be adjusted monthly on the first day of each month for each LlBOR Interest Period. If the first day of any month falls on a date when the Bank is closed, the Adjusted LlBOR Rate shall be determined as of the last preceding business day. The Adjusted LlBOR Rate shall be adjusted for any change in the LlBOR Reserve Percentage so that Bank shall receive the same yield. If checked here x the interest rate will not exceed a(n) x fixed  ̈ average maximum rate of 7.50% and will not decrease below a minimum rate of 3.750%. If an average maximum rate is specified, a determination of the average interest rate assessed and a reimbursement by Bank of interest paid in excess of the maximum rate, if any, will be made on ____________ .If the loan has been repaid prior to this date, no reimbursement will be made. 

1.2

One Month LlBOR means the average rate (rounded upwards, if necessary, to the next higher 1/lOOth of 1.0%) quoted on Bloomberg Screen BBAMI or Page 3750 (or such replacement page) of the Telerate Service on the determination date for deposits in U.S. Dollars offered in the London interbank market for one month, or if the above method for determining the One Month LlBOR shall not be available, the rate quoted in The Wall Street Journal, or a rate determined by a substitute method of determination agreed on by Borrower and Bank; provided, if such agreement is not reached within a reasonable period of time (in Bank's sole judgment), a rate reasonably determined by Bank in its sole discretion as a rate being paid, as of the determination date, by first class banking organizations (as determined by Bank) in the London interbank market for US. Dollar deposits. 

1.3

LlBOR Advance means the advances made by Bank to Borrower evidenced by this Note upon which the Adjusted LlBOR Rate of interest shall apply. 

1.4

LlBOR lnterest Period means a period of one calendar month as may be elected by the Borrower applicable to any LlBOR Advance which shall begin on first day of any month notwithstanding the maturity date of this Note; provided, however, that a LlBOR lnterest Period may be less than one calendar month in and only in the calendar month in which the Note originates or matures. 

1.5

LlBOR Reserve Percentage means the maximum aggregate rate at which reserves (including, without limitation, any marginal supplemental or emergency reserves) are required to be maintained under Regulation D by member banks of the Federal Reserve System with respect to dollar funding in the London interbank market. Without limiting the effect of the foregoing, the LlBOR Reserve Percentage shall reflect any other reserves required to be maintained by such member banks by reason of any applicable regulatory change against (i) any category of liability which includes deposits by reference to which the Adjusted LlBOR Rate is to be determined or (ii) any category of extensions of credit or other assets related to LIBOR. 

1.6

Standard Rate means, for any day, a rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1.0%) equal to the Bank's announced Prime Rate minus ________% per annum, and each change in the Standard Rate shall be effective on the date any change in the Prime Rate is publicly announced as being effective. 

II. LOAN BEARING ADJUSTED LlBOR RATE 

2.1 &@cation of AdjuW LlBOR Rah The Adjusted LlBOR Rate shall apply to the entire principal balance outstanding of a LlBOR Advance for any LlBOR lnterest Period. 

2.2 Ad&&d LlBOR Based Rate Protect- 

(a) jn&ilitv to Determine In the event that Bank shall have determined, which determination shall be final, conclusive and binding, that by reason of circumstances occurring after the date of this Note affecting the London interbank market, adequate and fair means do not exist for ascertaining the One Month LlBOR on the basis provided for in this Note, Bank shall give notice (by telephone confirmed in writing or by telecopy) to Borrower of such determination, whereupon (i) no LlBOR Advance shall be made until Bank notifies Borrower that the circumstances giving rise to such notice no longer exist, and (ii) any request by Borrower for a LlBOR Advance shall be deemed to be a request for an advance at the Standard Rate. 

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(b)

Illegality; Impracticability. In the event that Bank shall determine, which determination shall be final, conclusive and binding, that the making, maintaining or continuance of any portion of a LlBOR Advance (i) has become unlawful as a result of compliance by Bank with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any of the same not having the force of law even though the failure to comply therewith would not be unlawful) or (ii) has become impracticable, or would cause Bank material hardship, as a result of contingencies occurring after the date of this Note materially and adversely affect the London interbank market or Bank's ability to make LIBOR Advances generally, then, and in any such event, Bank shall give notice (by telephone confirmed in writing or by telecopy) to Borrower of such determination. Thereafter, (x) the obligation of Bank to make any LlBOR Advances or to convert any portion of the loan to a LlBOR Advance shall be suspended until such notice shall be withdrawn by Bank, and (y) any request by Borrower for a LlBOR Advance shall be deemed to be a request for an advance at the Standard Rate. 

If Borrower is a Corporation: 

						
	WITNESS:

	 
	 
	CUISINE SOLUTIONS, INC.

	 
	 
	 
	NAME OF CORPORATION

	

	 
	 
	 
	 

	 
	By:

	/s/ STANISLAS VILGRAIN

	(SEAL)

	 
	 
	 
	 
	STANISLAS VILGRAIN

	 
	 
	 
	Title:

	President

	 

	 
	 
	 
	 
	 
	 

	

	 
	 
	 
	 

	 
	By:

	/s/ RONALD ZILKOWSKI

	(SEAL)

	 
	 
	 
	 
	RONALD ZILKOWSKI

	 
	 
	 
	Title:

	Treasurer

	 

	 
	 
	 
	 
	 
	 

If Borrower is a Partnership, Limited Liability Company, Limited Liability Partnership, 

or Limlted Liabiiity Limited Partnership: 

						
	WITNESS:

	 
	 
	 

	 
	 
	 
	NAME OF PARTNERSHIP, LLC, LLP, OR LLLP

	 
	 
	 
	 
	 
	 

	 
	 
	By:

	 
	(SEAL)

	 
	 
	 
	 
	 

	 
	 
	 
	Title:

	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By:

	 
	(SEAL)

	 
	 
	 
	 
	 

	 
	 
	 
	Title:

	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	By:

	 
	(SEAL)

	 
	 
	 
	 
	 

	 
	 
	 
	Title:

	 
	 

	 
	 
	 
	 
	 
	 

If Borrower is an Individual:

						
	WITNESS:

	 
	 
	 
	 
	 

	 
	 
	 
	 
	(SEAL)

Additional Co-makers:

						
	WITNESS:

	 
	 
	 
	 
	 

	 
	 
	 
	 
	(SEAL)

	 
	 
	 
	 
	(SEAL)

	 
	 
	 
	 
	(SEAL)

	 
	 
	 
	 
	(SEAL)

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