Document:

Exhibit 10.2

 

SEVENTH
AMENDMENT TO RECEIVABLES PURCHASE AGREEMENT

 

THIS SEVENTH AMENDMENT TO
RECEIVABLES PURCHASE AGREEMENT, dated as of September 27,
2005 (this “Amendment”), is by and among
Edwards Lifesciences Financing LLC, a Delaware limited liability company (“Seller”), Edwards Lifesciences LLC,
a Delaware limited liability company (“Servicer”),
Blue Ridge Asset Funding Corporation, a Delaware corporation (“Blue Ridge”), the liquidity banks
from time to time party to the Liquidity Agreement (the “Liquidity
Banks;” together with Blue Ridge, the “Purchasers”)
and Wachovia Bank, National Association, as agent for the Purchasers (the “Agent”), and pertains to the
Receivables Purchase Agreement dated as of December 21, 2000 amongst the
parties hereto (as heretofore and hereby amended, the “Purchase
Agreement”).  Unless otherwise defined in this Amendment
capitalized terms used herein shall have the meanings assigned to such terms in
the Purchase Agreement.

 

PRELIMINARY
STATEMENTS

 

WHEREAS, the
Seller wishes to make certain amendments to the Purchase Agreement; and

 

WHEREAS, the
Agent and the Purchasers are willing to agree to such amendments.

 

NOW, THEREFORE,
in consideration of the foregoing premises and the mutual agreements herein
contained and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                            Amendments.  The Purchase Agreement is hereby amended as
follows:

 

(a)                           The definition of “Default Horizon Ratio” set forth in
Exhibit I to the Purchase Agreement is hereby amended and restated in its
entirety to read as follows:

 

“Default
Horizon Ratio” means, as of any Cut-Off Date, the ratio
(expressed as a decimal) computed by dividing (i) the aggregate sales
generated by the Originator during the four (4) Calculation Periods ending
on such Cut-Off Date, by (ii) the Net Pool Balance as of such Cut-off
Date.

 

(b)                                 Clause (iii) of the definition
of “Eligible Receivable” set forth in Exhibit I
to the Purchase Agreement is hereby amended and restated in its entirety to
read as follows:

 

(iii) which is not a Delinquent Receivable, a
Defaulted Receivable or owing from an Obligor as to which more than 50% of the
aggregate Outstanding Balance of all Receivables owing from such Obligor are Defaulted
Receivables,

 

(c)                                  The last two sentences of the
definition of “Eligible Receivable” set
forth in Exhibit I to the Purchase Agreement are hereby amended and
restated in their entirety to read as follows:

 

 

Notwithstanding
anything herein to the contrary, as of any date of determination, 47.5% of the
Outstanding Balance of any Receivable generated in the then current month owing
to the Distributor Division shall be deemed ineligible.  The Agent reserves the right, in its
reasonable discretion, to adjust such percentage based on information provided
to the Agent pursuant to this Agreement

 

(d)                           The definition of “Liquidity Termination Date” set
forth in Exhibit I to the Purchase Agreement is hereby amended and
restated in its entirety to read as follows:

 

“Liquidity Termination Date” means the earlier to
occur of (a) September 19, 2006, and (b) the date on which a
Downgrading Event with respect to a Liquidity Bank shall have occurred and been
continuing for not less than 45 days, and either (i) the Downgraded
Liquidity Bank shall not have been replaced by an Eligible Assignee pursuant to
the Liquidity Agreement or (ii) the Liquidity Commitment of such
Downgraded Liquidity Bank shall not have been funded or collateralized in such
a manner that will avoid a reduction in or withdrawal of the credit rating
applied to the Commercial Paper to which such Liquidity Agreement applies by
any of the rating agencies then rating such Commercial Paper.

 

(e)                            The definition of “Purchase Limit” set forth in Exhibit I
to the Purchase Agreement is hereby amended and restated in its entirety to
read as follows:

 

“Purchase
Limit” means $50,000,000.

 

(f)                             Section 9.1(h)(ii) of the
Purchase Agreement is hereby amended to delete “3.75%” where it appears and to
substitute in lieu thereof “3.00%.”

 

2.                                            Representations
and Warranties.  In order to induce
Blue Ridge and the Agent, on behalf of the other Purchasers, to enter into this
Amendment, each of the Seller Parties hereby represents and warrants to Blue
Ridge and the Agent, on behalf of the other Purchasers, as follows:

 

(a) The
execution and delivery by such party of this Amendment, and the performance of
its obligations under the Purchase Agreement as amended hereby, are within such
party’s organizational powers and authority and have been duly authorized by
all necessary organizational action on its part;

 

(b) This
Amendment has been duly executed and delivered by such party, and the Purchase
Agreement, as amended hereby, constitutes such party’s legal, valid and binding
obligation, enforceable against such party in accordance with its terms, except
as such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws relating to or limiting creditors’ rights
generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law), and

 

2

 

(c) As
of the date hereof, no event has occurred and is continuing that will
constitute an Amortization Event or an Unmatured Amortization Event.

 

3.                                      Conditions
Precedent.  This Amendment shall
become effective as of the date first above written upon:

 

(a)                                 execution and delivery to the Agent
of a counterpart hereof by each of the parties hereto, and

 

(b)                                 execution and delivery to the Agent
of a counterpart of a fifth amended and restated Fee Letter by each of the
parties thereto, and payment to the Agent of any fees due and owing thereunder
on September 27, 2005.

 

4.                                      Miscellaneous.

 

(a)                                 CHOICE OF LAW. 
THIS AMENDMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.

 

(b)                                 Counterparts. 
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 when taken together
shall constitute one and the same agreement.

 

(c)                                  Ratification of Purchase Agreement. 
Except as expressly amended hereby, the Purchase Agreement remains
unaltered and in full force and effect and is hereby ratified and confirmed.

 

3

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed and delivered by
their duly authorized officers as of the date hereof.

 

	
   

  	
  EDWARDS
  LIFESCIENCES FINANCING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Corinne H.
  Lyle

  	
   

  
	
   

  	
  Name:

  	
  Corinne H. Lyle

  
	
   

  	
  Title:

  	
  Corporate Vice President, Chief Financial

  Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EDWARDS
  LIFESCIENCES LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Corinne H.
  Lyle

  	
   

  
	
   

  	
  Name:

  	
  Corinne H. Lyle

  
	
   

  	
  Title:

  	
  Corporate Vice President, Chief Financial

  Officer and Treasurer

  

 

 

[Signature
Page to Seventh Amendment to Edwards RPA]

 

 

	
   

  	
  BLUE RIDGE ASSET
  FUNDING

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:
  WACHOVIA CAPITAL MARKETS, LLC, ITS

  ATTORNEY IN FACT

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas R. Wilson, SR.

  	
   

  
	
   

  	
  Name:

  	
  Douglas R.
  Wilson, SR.

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK,
  NATIONAL

  ASSOCIATION, AS A LIQUIDITY BANK AND AS

  AGENT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rodney Sanders

  	
   

  
	
   

  	
  Name:

  	
  Rodney Sanders

  
	
   

  	
  Title:

  	
  Director

  

 

[Signature Page to Seventh Amendment to Edwards RPA]Exhibit 10.1

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS AMENDMENT is
entered into effective as of August 24, 2005, by and between American Crystal
Sugar Company (“Company”) and James J. Horvath (“Executive”).

 

WHEREAS, Company and
Executive have entered into an Employment Agreement dated effective as of May
15, 1998, that was subsequently amended on February 3, 2005 (the “Agreement”);

 

WHEREAS, Section
4(g) of the Agreement provides for certain supplemental pension benefits to be
paid to Executive;

 

WHEREAS, the
language of Section 4(g) may provide Executive with a disincentive to continue
employment with the Company due to benefit calculation methods and the
potential loss of benefits;

 

WHEREAS, the parties
desire to amend the Agreement to eliminate the disincentive to Executive’s
continued employment, to confirm certain changes to Executive’s vacation
accruals, and to make certain other changes required to comply with the
requirements of new tax legislation.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual terms and conditions set forth
herein, the parties agree as follows:

 

1.                                       Amendment.

 

a.                                       Section
4(g)(i) of the Agreement shall be amended to read as follows:

 

(i)                                     the
cumulative monthly amount of the retirement benefit to which the Executive
would have been entitled to receive under Retirement Plan A which is maintained
by the Company (the “Pension Plan”) and the Executive’s pension plan account
under the non-qualified Supplemental Executive Retirement Plan maintained by
the Company (the “SERP”), if the benefits were computed as though the Executive
had continued in the employ of the Company until he attained age 65 assuming
compensation (as defined in the Pension Plan) equal to the greater of (1) the
actual compensation paid twelve (12) months immediately preceding termination
(including annual incentive compensation paid in only the most recently
completed fiscal year) to be applied for the years remaining to age 65 (with
actual compensation to be used for the years prior to the date of termination);
or (2) the compensation paid to Executive for the period beginning October 1,
2004, and ending September 30, 2005 ($818,357.22) to be applied for each of the
five (5) years from age 60 to age 65, and in each case assuming thirty (30)
years of service with the Company, irrespective of the number of years of
service actually attained as of the date of such termination of employment or
the date on which he attains age 65, with no reduction in benefits on account
of an election by the Executive for any death benefit to be paid to his spouse
under the Pension Plan; and

 

 

b.                                      The
last paragraph of Section 4(g) shall be amended to read as follows:

 

“The prior provisions of this Subparagraph 4(g) are meant to describe
the method for determining a benefit to the Executive.  The actual form and timing of payment shall
be elected by the Executive consistent with the options and method described in
the payment of benefits section of the SERP and the actuarial equivalence
calculation necessary to determine the amount or amounts to be paid shall be
made using the assumptions stated in such section of the SERP.  Such an election shall be made at the time of
this Agreement and may be changed at a later date; however, a change in the
election made on or after January 1, 2005, shall not be effective until one
year after the date of such new election, and payment shall be made or commence
only at the time permitted by Code Section 409A and the regulations, notices
and other guidance of general applicability issued thereunder.  Absent a distribution election, distribution
will be made in a lump sum as soon as practicable after the Executive’s
separation from service with the Company.”

 

c.                                       The
phrase “termination of employment” or any variation thereof shall be replaced
with “separation from service” wherever it appears in Sections 4(g), 4(h) and
4(i) of the Agreement.

 

d.                                      Section
6(b) shall be amended by adding the following sentence at the end thereof:

 

“Notwithstanding the foregoing, for purposes of Sections 4(g), 4(h) and
4(i), “disability” shall have the meaning set forth in Section 409A of the
Internal Revenue Code of 1986, as amended, and the regulations, notices and
other guidance of general applicability issued thereunder.”

 

e.                                       Section
6 shall be amended by adding new Section 6(f) which shall read as follows:

 

“f.                                   Separation from
Service.  For purposes of
Sections 4(g), 4(h) and 4(i), the phrase ‘separation from service’ shall have
the meaning set forth in Section 409A of the Internal Revenue Code of 1986, as amended,
and the regulations, notices and other guidance of general applicability issued
thereunder.”

 

f.                                         Section
7(d) shall be amended by adding a new subsection (iv)
at the end thereof:

 

“(iv)                        Separation
from Service.  In no event shall the
Company pay any post-termination severance pay to Executive unless Executive’s
termination of employment by the Company without cause constitutes a ‘separation
from service’ as defined in Section 6(f).”

 

g.                                      Notwithstanding
the provisions of Section 3(e) of the Agreement, the Executive shall accrue
vacation at the standard accrual rate provided by Company policy, plus
twenty (20) days per year in addition thereto.

 

h.                                      Section
6(d) shall be amended to read as follows:

 

 

“d.                                Voluntary
Resignation/Retirement. 
Executive may, upon sixty (60) days written notice, voluntarily resign
and/or retire from Executive’s at will employment at any time and for any
reason.  During the sixty (60) days after
notice is given, Executive agrees that he shall continue to render his normal
services to Company, and Company agrees that it shall continue to pay him his
regular rate of compensation.  The
parties acknowledge and agree that Executive does not have to submit his notice
of resignation or retirement personally and that the attorney-in-fact under
Executive’s limited durable general power of attorney may at any time submit a
notice of resignation or notice of retirement on Executive’s behalf. Should the
attorney-in-fact submit a notice of resignation or retirement on Executive’s
behalf at a time that Executive is disabled or incompetent, the termination of
employment and Executive’s separation from service shall be effective
immediately and the sixty (60) day notice required by this paragraph d. shall
not apply.”

 

2.                                       Intention.  It is the intention of the parties that
Section 1 a. of this Amendment will revise the method of calculating Executive’s
compensation for purposes of Section 4(g)(i)of the
Agreement such that Executive’s benefits under Section 4(g) will be no worse if
he retires after September 30, 2005 than if he retired on or before September
30, 2005.  By way of illustration, if
Executive retires on September 30, 2006, the benefit calculated under Section
4(g) will be based upon the greater of the compensation paid to Executive in
the twelve months prior to September 30, 2005 for each of the five (5) years
from age 60 to age 65 or the actual compensation paid in fiscal year
2005 for that year and the actual compensation paid in fiscal year 2006 for age
61 to age 65 (years 2-5).

 

3.                                       Effect of Amendment.  Except as provided in this Amendment, the
terms and conditions of the Agreement shall remain in full force and effect.

 

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

 

	
   

  	
  AMERICAN CRYSTAL SUGAR COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /S/ G.Terry
  Stadstad

  	
   

  
	
   

  	
  Its: Chairman of the Board of Directors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /S/ James J. Horvath

  	
   

  
	
   

  	
  James J. Horvath

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