Document:

ex418.htm

     

    

      Exhibit
        4.18

      

      Forbearance,
        Waiver and Indemnification by and among CoolBrands International Inc., 2118769
        Ontario Inc. and each of the guarantors

      

      FORBEARANCE,
        WAIVER AND INDEMNIFICATION

       

      THIS
        FORBEARANCE, WAIVER AND INDEMNIFICATION dated as of November 17, 2006
        (this “Agreement”), is entered into by and among CoolBrands
        International Inc. and each of the other guarantors on the signature pages
        hereto (collectively, the “Guarantors”) and 2118769 Ontario
        Inc.

      

      W
        I T N E S S E T H:

      

      WHEREAS
        Americana Foods Limited Partnership (the “Borrower”) was
        indebted to JPMorgan Chase Bank, N.A., GMAC Commercial Finance LLC and General
        Electric Capital Corporation (collectively, the “Former
        Lenders”) pursuant to a Credit Agreement dated as of April 21, 2006
        (the “Americana Credit Agreement”), among the Borrower, the
        Former Lenders and JPMorgan Chase Bank, N.A., in its capacity as lead arranger
        and administrative agent thereunder (the “Agent”);

      

      WHEREAS
        pursuant to a Master Assignment and Assumption dated as of the date hereof
        (the
“Master Assignment and Assumption”), the Former Lenders and the
        Agent assigned to 2118769 Ontario Inc., and 2118769 Ontario Inc. assumed,
        all of
        the rights and obligations of each of the Former Lenders and the Agent under
        the
        Americana Credit Agreement and other documents and instruments delivered
        pursuant thereto, including, without limitation, any and all guarantees and
        security, including, without limitation, the guarantees and security listed
        on
        Schedule “A” hereto (collectively, the “Guarantees and
        Security”) provided by the Guarantors in respect of the obligations of
        the Borrower under the Americana Credit Agreement (collectively, the
“Americana Secured Obligations”);

      

      WHEREAS
        the Borrower, having commenced proceedings under Title 7 of the United States
        Code, defaulted under the Americana Credit Agreement;

      

      WHEREAS
        the Guarantors have requested that 2118769 Ontario Inc. forbear from exercising
        certain rights and remedies in respect of the Guarantees and Security and
        2118769 Ontario Inc. has agreed to do so, but only upon the terms and conditions
        set forth herein;

      

      NOW,
        THEREFORE, for valuable consideration, the receipt and sufficiency of
        which is hereby acknowledged, and subject to the fulfillment of the conditions
        set forth below, the parties hereto hereby agree as follows:

       

      ARTICLE
        I

       FORBEARANCE
        AND WAIVER

       

      1.1                 Forbearance.

      

      In
        reliance upon the representations, warranties and covenants of the Guarantors
        contained in this Agreement, and subject to the terms and conditions of this
        Agreement and any documents or instruments executed in connection herewith,
        2118769 Ontario Inc. agrees to forbear from taking any action or exercising
        any
        right or remedy at law or in equity permitted to be taken or exercised by
        it
        under the Guarantees and Security or under applicable law or in equity during
        the period (the “Forbearance Period”) beginning on the
        Effective Date (as hereinafter defined) and ending on the earlier of: (a)
        May
        17, 2007; and (b) the date on which the Integrated Forbearance Arrangement
        (as
        hereinafter defined) terminates (the “Forbearance End Date”);
        provided, however, that such forbearance shall not in any way or manner restrict
        2118769 Ontario Inc. from exercising any rights or remedies it may have with
        respect to the Guarantees and Security from and after the expiration or
        termination of the Forbearance Period.  The Forbearance Period shall
        automatically terminate and expire on the Forbearance End Date without any
        requirement for notice to the Guarantors or any other person or entity and
        all
        rights, remedies and privileges of 2118769 Ontario Inc. under the Guarantees
        and
        Security shall be available to, and capable of exercise by, 2118769 Ontario
        Inc.

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      1.2           Waiver.

      

      2118769
        Ontario Inc. hereby agrees to waive the enforcement of any rights and remedies
        in respect of the Guarantees and Security for the duration of the Forbearance
        Period; provided that nothing contained in this Agreement shall constitute
        a
        waiver of any of 2118769 Ontario Inc.’s rights or remedies at law or in equity,
        and no delay by 2118769 Ontario Inc. in exercising any right under this
        Agreement nor any failure to exercise same will waive that right or any other
        right upon termination of the Forbearance Period.

      

      ARTICLE
        II

      CONDITIONS
        TO EFFECTIVENESS

       

      2.1           Effective
        Date.

      This
        Agreement shall become effective on the date (the “Effective
        Date”) when all of the following conditions have been
        satisfied:

       

      
        	
              	
                (a)

              	
                2118769
                  Ontario Inc. shall have received counterparts of this Agreement
                  duly
                  executed on behalf of each of the
                  Guarantors;

              

      

       

      
        	
              	
                (b)

              	
                2118769
                  Ontario Inc. shall have received a duly executed warrant certificate
                  for
                  5,500,000 subordinate voting shares of CoolBrands International
                  Inc. in
                  form and substance satisfactory to 2118769 Ontario
                  Inc.;

              

      

       

      
        	
              	
                (c)

              	
                the
                  representations and warranties made by each of the Guarantors herein
                  shall
                  be true and correct in all material
                  respects;

              

      

       

      
        	
              	
                (d)

              	
                each
                  of the Guarantors shall have obtained all consents and waivers
                  from any
                  person or entity necessary for the execution, delivery and performance
                  of
                  this Agreement and any other document, action or transaction contemplated
                  hereby;

              

      

       

      
        	
              	
                (e)

              	
                2118769
                  Ontario Inc. shall have delivered the Master Assignment and Assumption
                  duly executed by 2118769 Ontario Inc. and shall have received the
                  Master
                  Assignment and Assumption duly executed by the Agent and each of
                  the
                  Former Lenders and the assignment transaction contemplated thereunder
                  shall have been completed;

              

      

       

      
        	
              	
                (f)

              	
                JPMorgan
                  Chase Bank, N.A. (“JPMorgan”), in its capacity as
                  administrative agent, and the lenders (collectively, the
                  “Integrated Lenders”) under the
                  credit agreement dated as of April 21, 2006, among JPMorgan, the
                  Integrated Lenders and Integrated Brands Inc., Eskimo Pie Frozen
                  Distribution, Inc., Eskimo Pie Corporation and Coolbrands Dairy,
                  Inc., as
                  borrowers (the “Integrated Credit Agreement”), shall have
                  agreed to forbearance terms in respect of the obligations arising
                  from the
                  Integrated Credit Agreement, which forbearance terms shall be reasonably
                  satisfactory to 2118769 Ontario Inc.(the
                  “Integrated Forbearance Arrangement”);
                  and

              

      

       

      
        	
              	
                (g)

              	
                all
                  of the professional fees and expenses of Michael Serruya and 2118769
                  Ontario Inc., including, without limitation, the reasonable fees
                  and
                  expenses of Goodmans LLP, shall have been paid in full by wire
                  transfer of
                  immediately available
                  funds.

              

      

       

      ARTICLE
        III

      REPRESENTATIONS
        AND WARRANTIES

       

      3.1           Representations
        and Warranties.

      

      In
        order to induce 2118769 Ontario Inc. to enter into this Agreement, each of
        the
        Guarantors represents and warrants to 2118769 Ontario Inc. as
        follows:

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

       

      
        	
              	
                (a)

              	
                the
                  execution, delivery and performance by such Guarantor of this Agreement:
                  (i) has been duly authorized by all requisite corporate or other
                  action on
                  the part of the Guarantor; and (ii) does not (x) contravene or
                  violate any
                  of the organizational or constitutive documents of the Guarantor,
                  or (y)
                  result in, or require the creation or imposition of, any lien or
                  other
                  encumbrance on any property or assets of the Guarantor other than
                  as
                  permitted by the Integrated Credit Agreement or the Americana Credit
                  Agreement; and

              

      

       

      
        	
              	
                (b)

              	
                upon
                  the effectiveness of this Agreement, it will constitute the legal,
                  valid
                  and binding obligation of the Guarantor, enforceable against the
                  Guarantor
                  in accordance with its terms, in each case subject to the effects
                  of
                  bankruptcy, insolvency, fraudulent conveyance, reorganization,
                  moratorium
                  or other similar laws relating to or affecting creditors’ rights
                  generally, and to general equitable principles (whether considered
                  in a
                  proceeding in equity or at
                  law).

              

      

       

      ARTICLE
        IV

      ACKNOWLEDGEMENTS
        BY GUARANTORS

       

      4.1           Acknowledgment
        of Indebtedness.

      

      Each
        Guarantor hereby confirms, agrees and acknowledges, as of the date hereof,
        that:

       

      
        	
                 

              	
                (a)

              	
                it
                  is validly indebted to 2118769 Ontario Inc. for the payment in
                  full of all
                  Americana Secured Obligations, without defense, counterclaim, offset,
                  cross-complaint, claim or demand of any kind or nature
                  whatsoever;

              

      

       

      
        	
                 

              	
                (b)

              	
                the
                  amounts reflected in the statement attached as Schedule “B” hereto are
                  accurate and that such amounts form part of the Americana Secured
                  Obligations;

              

      

       

      
        	
                 

              	
                (c)

              	
                except
                  as otherwise set out herein, 2118769 Ontario Inc. has not waived,
                  and does
                  not intend to waive enforcement in respect of the Guarantees and
                  Security;
                  and

              

      

       

      
        	
                 

              	
                (d)

              	
                2118769
                  Ontario Inc. has a presently exercisable right to exercise its
                  rights and
                  remedies under the Guarantees and
                  Security.

              

      

       

      4.2           Guarantees
        and Security Still in Force.

      

      Each
        of the Guarantors hereby: (a) ratifies and affirms in their entirety the
        Guarantees and Security; and (b) subject to the terms and conditions of this
        Agreement, agrees that the Guarantees and Security shall remain in full force
        and effect throughout the Forbearance Period and from and after the expiration
        or termination thereof.  Each of the Guarantors agrees that nothing in
        this Agreement shall, or shall be construed to: (a) impair the validity,
        perfection or priority of the lien and security interest created under or
        evidenced by the Guarantees and Security; (b) waive or impair any rights,
        powers
        or remedies of 2118769 Ontario Inc. under the Guarantees and Security upon
        termination of the Forbearance Period, all of which are expressly reserved;
        (c)
        require 2118769 Ontario Inc. to extend the Forbearance Period, or grant
        additional cure or forbearance periods, or otherwise modify this Agreement;
        or
        (d) waive enforcement in respect of the Guarantees and Security, except as
        expressly set forth herein.

       

      ARTICLE
        V

      INDEMNIFICATION
        BY GUARANTORS AND ADDITIONAL SECURITY

       

      5.1           Each
        of the Guarantors hereby indemnifies Michael Serruya and 2118769 Ontario
        Inc.
        and its representatives, subsidiaries, affiliates, officers, directors,
        employees, shareholders, professional advisors, sureties, agents, heirs,
        successors and assigns (each individually an “Indemnitee”)
        against, and holds each Indemnitee harmless from, any and all losses, claims,
        damages, penalties, liabilities and related expenses, including the reasonable
        fees, reasonable charges and disbursements of any counsel for the Indemnitee,
        incurred by or asserted against any Indemnitee arising out of, in connection
        with, or as a result of: (a) the execution or delivery of the Master Assignment
        and Assumption or any agreement or instrument contemplated thereby, the
        performance by the parties thereto of their respective obligations thereunder
        or
        the consummation of any transactions contemplated thereby; (b) the execution
        or
        delivery by 2118769 Ontario Inc. of an irrevocable standby letter of credit
        in
        the aggregate face amount of $5,000,000 dated as of the date hereof in favour
        of
        JPMorgan, for the rateable benefit of the Integrated Lenders, in connection
        with
        the Integrated Credit Agreement (the “Letter of Credit”); (c)
        liability arising, directly or indirectly, as a consequence of the Indemnitees’
entering into this Agreement or otherwise; and

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (d)
        any actual or prospective claim, litigation, investigation or proceeding
        relating to any of the foregoing, whether based in contract, tort or any
        other
        theory and regardless of whether any Indemnitee is a party thereto; provided
        that such indemnity shall not, as to any Indemnitee, be available to the
        extent
        that such losses, claims, damages, penalties, liabilities or related expenses
        are determined by a court of competent jurisdiction by final and nonappealable
        judgment to have resulted from the gross negligence or wilfull misconduct
        of
        such Indemnitee.

       

      5.2           The
        obligations of any Guarantor under this Article V shall be unconditional,
        and
        not subject to any set-off or defense based upon any claim such Guarantor
        may
        have against any Indemnitee, and shall remain in full force and effect without
        regard to any circumstance or condition, including, without limitation: (a)
        the
        repayment of the Americana Secured Obligations; and (b) any bankruptcy,
        insolvency, receivership, reorganization, dissolution, liquidation or other
        like
        proceeding under any existing or future law of any jurisdiction, domestic
        or
        foreign (including any case under Title 7 or 11 of the United States Code,
        as
        amended from time to time, or any successor statute), involving or affecting
        any
        Guarantor or any Indemnitee or any involuntary petition having been filed
        against any Guarantor or any Indemnitee (regardless of whether an order for
        relief has been entered).

       

      5.3           If
        judgment is entered against any Indemnitee, in any action, suit or proceeding
        to
        enforce the indemnities contained herein, the Guarantors shall reimburse
        such
        Indemnitee for all reasonable costs and expenses incurred by such Indemnitee
        in
        connection therewith, including, without limitation, reasonable attorneys’
fees.

       

      5.4           Each
        Guarantor agrees that it will not assert any right, claim or cause of action,
        including, without limitation, a claim of subrogation, contribution or
        indemnification that it has against any other Guarantor or any collateral
        of any
        other Guarantor, until the Guarantors have fully performed all of their
        obligations to 2118769 Ontario Inc. and the Americana Secured Obligations
        have
        been indefeasibly paid in full.

       

      5.5           As
        security for the indemnities provided in this Article V and the Letter of
        Credit, each of the Guarantors agrees to grant a security interest in all
        of its
        assets, property and undertaking in favour of each of Michael Serruya and
        2118769 Ontario Inc. (the “Additional
        Security”), subject to the Additional Security being subordinated and
        postponed to: (a) the security granted in connection with the Secured
        Obligations as defined in the Integrated Credit Agreement; and (b) the
        Guarantees and Security.  Unless otherwise agreed by 2118769 Ontario
        Inc., the Additional Security shall be in the same form as the security given
        by
        the Guarantors pursuant to the Integrated Credit Agreement.

       

      ARTICLE
        VI

      MISCELLANEOUS

       

      6.1           Notices

      

      Any
        notice, certificate, consent, determination or other communication require
        or
        permitted to be given or made under this Agreement shall be in writing and
        shall
        be effectively given and made if: (a) delivered personally; (b) sent by prepaid
        courier service; or (c) sent prepaid by fax or other similar means of electronic
        communication, in each case to the applicable address set out
        below:

      

      In
        the case of 2118769 Ontario Inc.:

      8300
        Woodbine Avenue, 5th Floor

      Markham,
        Ontario L3R 9Y7

      Attention:                      Michael
        Serruya

      Facsimile:                      905-479-5235

      With
        a copy to:

      Goodmans
        LLP

      2400-250
        Yonge Street

      Toronto,
        ON M5B 2M6

      Attention:                      Robert
        J. Chadwick

      Facsimile:                      416-979-1234

      In
        the case of the Guarantors to:

      The
        attention of the individuals and at the addresses set forth on Exhibit “A” to
        the Americana Credit Agreement, as applicable

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

       

      6.2           Counterparts,
        etc.

      

      This
        Agreement may be executed by the parties hereto in several counterparts,
        each of
        which shall be deemed to be an original and all of which shall constitute
        but
        one and the same agreement.  Delivery of an executed counterpart by
        facsimile shall be effective as delivery of a manually executed
        counterpart.

       

      6.3           GOVERNING
        LAW.

      

      This
        Agreement in accordance with Section 5-401 of the General Obligations Law
        of the
        State of New York shall be governed by and construed in accordance with the
        laws
        of the State of New York, but otherwise without regard to any conflicts of
        laws
        principles thereof that would call for the application of the laws of any
        other
        jurisdiction, but giving effect to Federal Laws applicable to National
        Banks.

       

      6.4           Successors
        and Assigns.

      

      This
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their respective successors and assigns.

       

      6.5           Entire
        Agreement.

      

      This
        Agreement and the Guarantees and Security set forth the entire understanding
        and
        agreement of the parties hereto in relation to the subject matter hereof
        and
        thereof and supersede any prior negotiations and agreements among the parties
        relative to such subject matter.  No promise, condition,
        representation or warranty, express or implied, not herein or therein set
        forth
        shall bind any party hereto, and no one of them has relied on any such promise,
        condition, representation or warranty.  Each of the parties hereto
        acknowledges that, except as otherwise expressly stated in this Agreement,
        no
        representations, warranties or commitments, express or implied, have been
        made
        by any party to any other party with respect to the subject matter of this
        Agreement.  None of the terms or conditions of this Agreement may be
        changed, modified, waived or cancelled, orally or otherwise.

       

      6.6           Supremacy

      

      Unless
        otherwise indicated herein, in the event of a conflict or inconsistency between
        the provisions of this Agreement and the provisions of the Guarantees and
        Security, the provisions of this Agreement shall prevail.

       

      6.7           Relationship.

      

      The
        Guarantors agree that the relationship between 2118769 Ontario Inc. and the
        Guarantors is that of creditor and debtor and not that of partners or joint
        venturers.  This Agreement does not constitute a partnership
        agreement, or any other association between 2118769 Ontario Inc. and the
        Guarantors.  The Guarantors acknowledge that 2118769 Ontario Inc. has
        acted at all times only as creditor to the Guarantors within the normal and
        usual scope of the activities normally undertaken by a creditor and in no
        event
        has 2118769 Ontario Inc. attempted to exercise any control over the Guarantors
        or their respective businesses or affairs.

       

      6.8           No
        Third Party Beneficiaries.

      

      This
        Agreement is made and entered into for the sole protection and benefit of
        the
        Guarantors and 2118769 Ontario Inc. and no other person or entity shall have
        any
        right of action hereon, right to claim any right or benefit from the terms
        contained herein, or be deemed a third party beneficiary hereunder.

       

      6.9           Expenses.

      

      All
        reasonable out-of-pocket costs and expenses incurred by Michael Serruya and
        2118769 Ontario Inc. in connection with the preparation, negotiation, execution
        and administration of the forbearance contemplated herein, including, without
        limitation, the reasonable fees and disbursements of Goodmans LLP and the
        costs
        associated with the Letter of Credit, shall be paid or reimbursed by the
        Guarantors, promptly upon receipt of invoices therefor.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

       

      6.10        Waiver
        of Jury Trial

      

      Each
        Guarantor hereby waives trial by jury of all issues arising in any action,
        suit
        or proceeding to which the Guarantors and 2118769 Ontario Inc. may be parties
        in
        connection with this Agreement.

       

      6.11        Further
        Assurances

      

      From
        and after the date hereof, each of the Guarantors covenants and agrees to
        execute and deliver all such agreements, instruments and documents and to
        take
        all such further actions as 2118769 Ontario Inc. may reasonably deem necessary
        from time to time to carry out the intent and purposes of this Agreement,
        including, without limitation, the Additional Security.

       

      6.12        Full
        Force and Effect.

       

      This
        Agreement shall be limited precisely as written and shall not be deemed:
        (a) to
        be a consent granted pursuant to, or a waiver or modification of, any term
        or
        condition of the Guarantees or Security or any of the instruments or agreements
        referred to therein or a waiver of enforcement in respect of the Guarantees
        and
        Security: or (b) to prejudice any other right or rights which 2118769 Ontario
        Inc. may now have or have in the future under or in connection with the
        Guarantees and Security or any of the instruments or agreements referred
        to
        therein.  Except to the extent hereby amended or modified, the
        Guarantees and Security shall continue in full force and effect in accordance
        with the provisions thereof, and are hereby ratified and confirmed.

       

      6.13        Consultation
        with Advisors.

      

      Each
        of the Guarantors acknowledges that it has consulted with counsel and with
        such
        other experts and advisors as it has deemed necessary in connection with
        the
        negotiation, execution and delivery of this Agreement.  This Agreement
        shall be deemed to have been jointly drafted and shall be construed without
        regard to any presumption or rule requiring that it be construed against
        the
        party causing this Agreement or any part hereof or thereof to be
        drafted.

       

      6.14        Invalidity;
        Severability.

      

      Whenever
        possible, each provision of this Agreement shall be interpreted in such manner
        as to be effective and valid under all applicable laws and
        regulations.  Any provision of this Agreement which is prohibited or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction.

       

      6.15        Headings.

      

      The
        headings of this Agreement are for the purposes of reference only and shall
        not
        affect the construction of, or be taken into consideration in interpreting,
        this
        Agreement.

       

      6.16        Survival.

      

      Section
        4.2 and Sections 5.1 to 5.4 of this Agreement survive the Forbearance End
        Date
        and the repayment of the Americana Secured Obligations.  All other
        representations, warranties, covenants, agreements, undertakings, waivers
        and
        releases by each of the Guarantors contained herein shall survive until all
        Americana Secured Obligations shall have been indefeasibly paid in full in
        cash
        (whether or not the Forbearance End Date shall have occurred).

       

      6.17        Further
        Amendments and Consents.

      

      Should
        there be a need for further amendments, modifications, waivers or consents
        with
        respect to the matters addressed herein or any other matters, requests for
        such
        amendments, modifications, waivers or consents shall be evaluated by 2118769
        Ontario Inc. when formally requested, in writing, by the Guarantors, and,
        except
        as otherwise expressly set forth herein to the contrary, 2118769 Ontario
        Inc.
        may deny any such requests in their sole discretion.  No such
        amendment, modification waiver or consent shall be effective unless made
        in
        accordance with the terms of the Guarantees and Security.

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      

      IN
        WITNESS WHEREOF the Guarantors and 2118769 Ontario Inc. have caused
        this Agreement to be duly executed on the date first above written.

      
        

        
          	 	
                  2118769
                    Ontario Inc.

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                

        

        

        
          	
                  GUARANTORS:

                	
                  COOLBRANDS
                    INTERNATIONAL INC.

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                

        

        

        
          	 	
                  INTEGRATED
                    BRANDS INC.

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                
	 	 	 
	 	
                  CBA
                    FOODS LLC

                   

                                  By:
                    INTEGRATED BRANDS INC.,

                                          its
                    sole member

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                
	 	 	 
	 	
                  CB
                    AMERICANA LLC

                   

                                  By:
                    INTEGRATED BRANDS INC.,

                                          its
                    sole member

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                
	 	 
	 	
                  ESKIMO
                    PIE FROZEN DISTRIBUTION, INC.

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                
	 	 

        

         

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        
 

        
          	 	
                  ESKIMO
                    PIE CORPORATION

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                

        

         

        
          	 	
                  COOLBRANDS
                    DAIRY, INC.

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                

        

        

        

        
          	 	
                  SUGAR
                    CREEK FOODS, INC.

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                

        

        

        
          	 	
                  INTEGRATED
                    BRANDS FRANCHISE CORP.

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                

        

        

        
          	 	
                  COOLBRANDS
                    SMOOTHIES FRANCHISE LLC

                   

                  By:INTEGRATED
                    BRANDS FRANCHISE CORP., its sole member

                
	 	 	 
	 	
                  By:

                	 
	 	 	
                  Name:

                  Title:

                

        

        

        
          8ex419.htm

     EXECUTION
      COPY

    

    Exhibit
      4.19

    

    FORBEARANCE,
      WAIVER AND FIRST AMENDMENT TO CREDIT AGREEMENT

    

    THIS
      FORBEARANCE, WAIVER AND FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of
      November 17, 2006 (this “Forbearance and First Amendment”), is entered
      into by and among INTEGRATED BRANDS INC., a New Jersey corporation, ESKIMO
      PIE
      FROZEN DISTRIBUTION, INC. a Delaware corporation, ESKIMO PIE CORPORATION and
      COOLBRANDS DAIRY, INC. (each a “Borrower” and, collectively, the
“Borrowers”), each of the Guarantors on the signature pages hereto (the
      “Subsidiary Guarantors”), COOLBRANDS INTERNATIONAL INC., a Canadian
      federal corporation (the “Parent” and together with the Subsidiary
      Guarantors, the “Guarantors”), the several banks and other financial
      institutions identified as “Lenders” on the signature pages hereto
      (collectively, the “Lenders”), and JPMORGAN CHASE BANK, N.A., as
      administrative agent for the Lenders (in such capacity, the “Administrative
      Agent”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Parent, the Borrowers, the Subsidiary Guarantors, the Lenders and the
      Administrative Agent entered into that certain Credit Agreement dated as of
      April 21, 2006 (as amended, supplemented or otherwise modified from time to
      time, the “Credit Agreement”);

     

    WHEREAS,
      certain Events of Default set forth on Schedule A hereto have occurred
      and are continuing under Credit Agreement (the “Existing Events of
      Default”);

     

    WHEREAS,
      the Borrowers have requested that the Lenders and the Administrative Agent
      forbear from exercising certain rights and remedies in respect of the Existing
      Events of Default, and the Administrative Agent and the Lenders have agreed
      to
      do so, but only upon the terms and conditions set forth herein;

     

    WHEREAS,
      the Borrowers have requested, and the Lenders, the Administrative Agent and
      the
      Guarantors have agreed, on terms and conditions set forth herein, to certain
      modifications and waivers of the Credit Agreement; and

     

    WHEREAS,
      from and after the Effective Date (as hereinafter defined) of this Forbearance
      and Amendment, the Credit Agreement shall be amended, subject to and upon the
      terms and conditions set forth herein.

     

    NOW,
      THEREFORE, for valuable consideration, the receipt and sufficiency of which
      is
      hereby acknowledged, and subject to the fulfillment of the conditions set forth
      below, the parties hereto hereby agree as follows:

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.1.                      Definitions.  Unless
      otherwise defined herein, capitalized terms used in this Forbearance and First
      Amendment, including its preamble and recitals, shall have the meanings ascribed
      thereto in the Credit Agreement.

     

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    

     

    

     

    ARTICLE
      II

     

    ACKNOWLEDGMENT
      OF EVENTS OF DEFAULT; FORBEARANCE

     

    Section
      2.1.                      Forbearance.

     

    a.           On
      the terms and subject to the conditions set forth in this Forbearance Agreement,
      the Administrative Agent and the Lenders agree to forbear from taking any action
      or exercising any right or remedy at law or in equity permitted to be taken
      or
      exercised by them under the Credit Agreement or the other Loan Documents or
      under applicable law with respect to the Existing Events of Default during
      the
      period (the “Forbearance Period”) beginning on the Effective Date (as
      hereinafter defined) and ending on the Maturity Date; provided,
however, that such forbearance shall extend only to the Existing Events
      of Default and not to any other Default or Event of Default now existing or
      occurring after the Effective Date and shall not in any way or manner restrict
      the Administrative Agent or the Lenders from exercising any rights or remedies
      they may have with respect to the Existing Events of Default from and after
      the
      expiration or termination of the Forbearance Period or with respect to any
      other
      Default or Event of Default at any time.  The Forbearance Period shall
      automatically terminate and expire on the Maturity Date without any requirement
      for notice to the Borrowers, the Borrower Representative or any other Loan
      Party
      or any other Person and all rights, remedies and privileges of the
      Administrative Agent and the Lenders under the Credit Agreement and the other
      Loan Documents shall be available to, and capable of exercise by, the
      Administrative Agent and the Lenders.

     

    b.           Notwithstanding
      anything to the contrary set forth in the Credit Agreement or any other Loan
      Document, the Loan Parties, the Administrative Agent and the Lenders agree
      that
      from and after the date hereof, upon the occurrence and during the continuance
      of a Default or Event of Default that, in each case, is not an Existing Event
      of
      Default, no Lender shall have any obligation to make Revolving Loans pursuant
      to
      the Credit Agreement.

     

    c.           The
      Administrative Agent and the Lenders agree that, notwithstanding the occurrence
      and continuance of the Existing Events of Default and the provisions of Section
      2.13(d) of the Credit Agreement, during the Forbearance Period, interest shall
      accrue on the Loans and any other amounts outstanding under the Credit Agreement
      at the non-default rate set forth in the Credit Agreement.

     

    d.           Notwithstanding
      any other term or provision of the Credit Agreement to the contrary, beginning
      on the Effective Date and each month thereafter during the Forbearance Period,
      interest on all Loans shall be payable in arrears on the last Business Day
      of
      each month.

     

    ARTICLE
      III

     

    ADDITIONAL
      AGREEMENTS

     

    Section
      3.1.                      Asset
      Sales; Application of Net Proceeds.

     

    (a)           In
      order to induce the Administrative Agent and the Lenders to enter into this
      Forbearance and First Amendment and, notwithstanding any term or provision
      to
      the contrary in any of the Loan Documents, each Loan Party acknowledges and
      agrees that: (i) the first $1,000,000 of Net Proceeds received by any Loan
      Party
      from any sale, transfer or other disposition of any property or asset of any
      such Loan Party other than the assets set forth on Schedule B hereto
      shall be deposited into an account (the “Cash Collateral Account”)
      maintained with the Administrative Agent as collateral security for the
      Obligations, (ii) upon any sale, transfer or other disposition of the EP Brands
      or Sam Pak, as set forth on Schedule B hereto, there shall be paid to the
      Administrative Agent, for the ratable benefit of the Revolving Lenders, an
      amount of Net Proceeds equal to the sum of $3 million less the amount on
      deposit in the Cash Collateral Account which Net Proceeds shall be applied
      to
      the mandatory prepayment of the Revolving Loans in excess of $6,000,000 and
      the
      permanent reduction of the Revolving Commitment in excess of $6,000,000 (in
      the
      latter case, regardless of whether there are any Revolving Loans outstanding
      in
      excess of $6,000,000) and (iii) upon a sale of the capital stock or assets
      of
      Dairy, there shall be paid to the Administrative Agent for the ratable benefit
      of the Lenders an amount sufficient to pay (a) the Secured Obligations in full
      and (b) any amounts owing to Chase, as Administrative Agent under the Americana
      Credit Agreement.  In the case of payments made under clause (iii) of
      the immediately preceding sentence, the Revolving Commitment shall be
      terminated.  After application of the Net Proceeds specified in
      clauses (i) and (ii) above, the Loan Parties may from time to time deposit
      the
      Net Proceeds received by any Loan Party from any sale, transfer or other
      disposition of any property or asset of any such Loan Party into an account
      (the
“Working Capital Account”;

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    and
      together with the Cash Collateral Account, the “Accounts”) maintained
      with the Administrative Agent in order to fund the working capital requirements
      of the Borrowers.  To the extent that EPDS (East) sale occurs prior to
      the Effective Date, the Borrowers shall retain $1,000,000 of such proceeds
      to be
      deposited into the Cash Collateral Account immediately upon the Effective
      Date.

     

    (b)           The
      Loan Parties acknowledge and agree that all funds maintained in the Accounts
      constitute Collateral securing the Obligations of the Loan Parties under the
      Credit Agreement and the other Credit Documents.

     

    (c)           Subject
      to the occurrence of the Effective Date (as defined hereinafter), the Lenders
      hereby authorize and direct the Administrative Agent: (i) to release to the
      Borrowers from time to time during the Forbearance Period amounts maintained
      in
      the Working Capital Account to fund the Borrowers’ operating requirements; and
      (ii) to hold the remainder of the funds maintained in the Working Capital
      Account as Collateral for the Obligations.

     

    Section
      3.2.                      Non-Payment
      of Revolving Loan Obligations.  The parties hereto hereby
      acknowledge and agree that in the event the Revolving Loan Obligations shall
      not
      have been repaid in full in cash on the Maturity Date, the Administrative Agent
      shall be irrevocably authorized without any requirement for notice to the
      Borrowers, the Borrower Representative or any other Loan Party or any other
      Person to: (i) apply any funds held in the Accounts to the repayment of the
      Revolving Loan Obligations and the permanent reduction of the Revolving
      Commitment and (ii) request drawings under the Standby Letter of Credit (as
      hereinafter defined) in an amount equal to the Revolving Loan Obligations
      outstanding on the date of presentment, (after application and receipt of any
      funds held in the Accounts and concurrent reduction of Obligations) up to a
      maximum amount equal to $5,000,000, which drawings shall be applied to the
      permanent repayment of the Revolving Loan Obligations and the reduction of
      the
      Revolving Commitment.

     

    Section
      3.3.                      Expenses.  The
      Borrowers shall pay to the Administrative Agent for the ratable benefit of
      the
      Lenders all expenses and fees due and owing under the Credit Agreement and
      other
      Loan Documents on a current pay basis.

     

    Section
      3.4.                      Advisor
      Fees and Expenses.  During the Forbearance Period:

     

    (a)           the
      Borrowers shall not be obligated to retain the services of a financial advisor
      unless they determine to do so in their discretion; and

     

    (b)           the
      Administrative Agent and the Lenders agree that they shall not seek
      reimbursement of fees and expenses of any financial advisor retained by the
      Administrative Agent or the Lenders.

     

    Section
      3.5.                      Availability.  On
      the terms and subject to the conditions set forth herein, the Lenders hereby
      agree that, during the Forbearance Period, the Availability Block, currently
      set
      at $12,500,000, shall be reduced to zero and shall not be reinstated in any
      amount during the Forbearance Period.  For the avoidance of doubt, all
      other provisions of the Borrowing Base shall remain in effect.

     

    Section
      3.6.                      Grant
      of Security Interest.  The Lenders and the Administrative Agent
      consent to the Borrowers and the Guarantors granting a junior security interest
      to 2118769 Ontario Inc. (“Ontario Inc.”) and Michael Serruya (“Serruya”)
      with respect to their obligations to Ontario, Inc. and Serruya resulting from
      the Indemnification and Waiver (as defined below) and the Standby Letter of
      Credit (as defined below), subject to such security interest and claims being
      subordinated to the security interest securing the Obligations on terms
      satisfactory to the Administrative Agent.  The Borrowers acknowledge
      and agree that the Lenders and the Administrative Agent are relying on the
      Borrowers’ representations in Article VII hereof in granting this
      consent.

     

    ARTICLE
      IV

    WAIVERS

     

    Section
      4.1.                      Waivers.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    

     

    (a)           The
      Lenders hereby agree to waive the Existing Events of Default for the duration
      of
      the Forbearance Period.

     

    (b)           The
      Lenders hereby agree to waive the Borrowers’ compliance with Sections 5.01(a),
      (b), (f), (k), (l), (n), (o) and (p), 5.17, 5.18, 6.05, 6.12 and 6.13 of the
      Credit Agreement and any event of default under clause (m) of Article VII in
      connection with a change in the composition of the Board of Directors for the
      duration of the Forbearance Period.

     

    (c)           Notwithstanding
      any term or provision to the contrary in any Loan Document, during the
      Forbearance Period, the consent of the Administrative Agent and the Lenders
      shall not be required in connection with any sale, transfer or other disposition
      of any property or asset of any Loan Party and the Lenders hereby agree to
      waive
      the mandatory prepayment requirements set forth in Section 2.11 of the Credit
      Agreement with respect to any such sale, transfer or other disposition;
provided, however, that 100% of the Net Proceeds of any such sale,
      transfer or other disposition shall be applied in accordance with the provisions
      of Section 3.1 hereof; provided, further, that in the case of a
      sale of the capital stock or assets of Dairy, there shall be paid to the
      Administrative Agent for the ratable benefit of the Lenders an amount sufficient
      to pay (i) the Secured Obligations in full and (ii) all fees and expenses due
      and owing to Chase, as administrative agent under the Americana Credit
      Agreement.

     

    ARTICLE
      V

     

    AMENDMENTS
      TO CREDIT AGREEMENT

     

    Section
      5.1.                      Amendments.

     

    (a)           Section
      1.01 of the Credit Agreement is hereby amended by amending the definition of
      “Maturity Date” to read as follows:

     

    “Maturity
      Date” means the earlier to occur of either of the following
      events:  (a) 5:00 p.m. (Eastern time) on May 17, 2007;
      (b) the date on which any Loan Party becomes subject to a proceeding under
      any existing or future law of any jurisdiction, domestic or foreign, relating
      to
      bankruptcy, insolvency, reorganization, conservatorship or relief of debtors
      (including any case under Title 7 or 11 of the United States Code, as amended
      from time to time, or any successor statute) or (c) the date on which the
      Obligations are accelerated in accordance with the terms of Article VII of
      the
      Credit Agreement.

     

    (b)           Section
      1.01 of the Credit Agreement is hereby further amended by amending the
      definition of “Revolving Commitment” to read as follows:

     

    “Revolving
      Commitment” means, with respect to each Lender, the commitment, if any, of
      such Lender to make Revolving Loans and to acquire participations in Letters
      of
      Credit, Overadvances and Swingline Loans hereunder, expressed as an amount
      representing the maximum possible aggregate amount of such Lender’s Revolving
      Exposure hereunder, as such commitment may be (a) reduced from time to time
      pursuant to Section 2.09 and (b) reduced from time to time pursuant to
      assignments by or to such Lender pursuant to section 9.04.  The amount
      of each Lender’s Revolving Commitment is set forth on the Commitment Schedule,
      or in the assignment and Assumption pursuant to which such Lender shall have
      assumed its Revolving Commitment, as applicable.  The aggregate amount
      of the Lenders’ Revolving Commitments is $8,000,000.

     

    (c)           Section
      1.01 of the Credit Agreement is further amended by adding thereto each of the
      following defined terms and definitions thereof in the proper alphabetical
      order:

     

    “Forbearance
      and First Amendment” means that certain Forbearance, Waiver and First
      Amendment, dated as of November 17, 2006, among the Borrowers, the Guarantors,
      the Administrative Agent and the Lenders (as may be amended, modified or
      supplemented from time to time).

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    

     

    “Intercreditor
      Agreement” means that certain Amended and Restated Intercreditor and
      Subordination Agreement, dated as of November 17, 2006, between the
      Administrative Agent and Chase, as administrative agent for the lenders party
      to
      the Americana Credit Agreement.

     

    “Revolving
      Loan Obligations” means all obligations of the Borrowers to make payment, at
      the times and on the terms set forth in this Agreement, of the unpaid principal
      amount of and interest on the Revolving Loans and the payment or performance
      of
      all other obligations, liabilities and Indebtedness of the Borrowers to the
      Revolving Lenders arising under or in connection with any Loan Document,
      including, without limitation, all fees, costs, expenses and indemnity
      obligations thereunder.

     

    “Subdebt
      Intercreditor Agreement” means that certain Intercreditor and Subordination
      Agreement, dated as of November 17, 2006, by and among the Administrative Agent,
      Chase, as administrative agent for the lenders party to the Americana Credit
      Agreement, 2118769 Ontario Inc., an Ontario corporation and Michael Serruya,
      an
      individual.

     

    (d)           The
      definition of “Loan Documents” in Section 1.01 of the Credit Agreement is hereby
      amended by inserting the phrase “Subdebt Intercreditor Agreement” after the
      phrase “the Loan Guaranty,” on the second line thereof.

     

    (e)           Section
      5.11 of the Credit Agreement is hereby deleted in its entirety and replaced
      with
      the following:

     

    “Section
      5.11.  Field Examinations.  During the pendency of an
      Event of Default, each Loan Party shall, at their expense and upon the
      Administrative Agent’s request, during normal business hours (and at any time
      when a Default exists) permit the Administrative Agent to conduct field
      examinations and accounting reviews of the existence and condition of the
      Accounts, Inventory and books and records of such Loan Party and each Subsidiary
      thereof and to review their compliance with the terms and conditions of this
      Agreement and the other Loan Documents.”

     

    (f)           To
      reflect the permanent reduction in the Revolving Commitments, the Commitment
      Schedule to the Credit Agreement is hereby amended by deleting such
      Schedule in its entirety and substituting therefor the Commitment Schedule
      attached hereto.

     

    ARTICLE
      VI

     

    

     

    CONDITIONS
      TO EFFECTIVENESS

     

    Section
      6.1.                      Effective
      Date.  This Forbearance and First Amendment shall become effective
      on the date (the “Effective Date”) when all of the following conditions
      have been satisfied:

     

    (a)           the
      Administrative Agent shall have received counterparts of this Forbearance and
      First Amendment executed on behalf of the Borrowers, the Guarantors and the
      Lenders;

     

    (b)           the
      Administrative Agent shall have received an irrevocable standby letter of credit
      (the “Standby Letter of Credit”) in favor of the Administrative Agent,
      for the ratable benefit of the Revolving Lenders, in the aggregate face amount
      of $5,000,000, which Standby Letter of Credit shall be issued by an acceptable
      financial institution and be in form and substance satisfactory to the
      Administrative Agent;

     

    (c)           the
      Administrative Agent shall have received executed counterparts of an
      indemnification and waiver agreement (the “Indemnification and Waiver”),
      dated as of the date hereof, by  and among Serruya, Ontario Inc.,
      JPMorgan Chase Bank, N.A., in its respective capacities as Administrative Agent
      and Lender under the Credit Agreement and the Americana Credit Agreement and
      General Electric Capital Corporation and GMAC Commercial Finance LLC, in their
      respective capacities as lenders under the Credit Agreement and the Americana
      Credit Agreement, in form and substance satisfactory to the Administrative
      Agent;

     

    (d)           the
      Administrative Agent shall have received a duly executed copy of the Master
      Assignment and Assumption, in the form of Exhibit A to the Americana
      Credit Agreement,  dated as of the date hereof, by and between each of
      the Assignors identified on the signature pages thereto and each of the
      Assignees identified on the signature pages thereto, and the transactions
      contemplated thereby shall have been consummated;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    

     

    (e)           the
      Administrative Agent shall have received a duly executed copy of the
      Intercreditor Agreement, in form and substance satisfactory to the
      Administrative Agent;

     

    (f)           the
      Administrative Agent shall have received a duly executed copy of the Subdebt
      Intercreditor Agreement, in form and substance satisfactory to the
      Administrative Agent;

     

    (g)           no
      Default or Event of Default, other
      than the Existing Events of Default, shall have occurred;

     

    (h)           the
      representations and warranties made
      by each of the Loan Parties herein shall be true and correct in all material
      respects;

     

    (i)           the
      Loan Parties shall have obtained all consents and waivers from any Person
      necessary for the execution, delivery and performance of this Forbearance and
      First Amendment and any other document, action or transaction contemplated
      hereby;

     

    (j)           the
      Borrowers shall have paid the
      Administrative Agent, by wire transfer of immediately available funds, in
      accordance with the Credit Agreement and the other Loan Documents, all fees
      accrued and unpaid as of the Effective Date; and

     

    (k)           the
      professional fees and expenses of
      the Administrative Agent and the Lenders, including the reasonable fees and
      expenses of the Administrative Agent’s legal counsel and financial advisor,
Carl Marks Advisory Group (“CMAG”), shall have
      been paid in full by wire
      transfer of immediately available funds.

     

    ARTICLE
      VII

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      7.1.                      Representations
      and Warranties.  In order to induce the Administrative Agent and
      the Lenders to enter into this Forbearance and First Amendment, the Loan Parties
      represent and warrant to the Administrative Agent and the Lenders as
      follows:

     

    (a)           the
      execution, delivery and performance by the Loan Parties of this Forbearance
      and
      First Amendment and the performance by the Loan Parties of their respective
      obligations under the Credit Agreement as modified by this Forbearance and
      First
      Amendment (and the transactions contemplated thereby) (i) have been duly
      authorized by all requisite corporate or other action on the part of the Loan
      Parties and (ii) do not (x) contravene or violate any of the organizational
      or
      constitutive documents of the Loan Parties, (y) contravene any contractual
      restriction, law or governmental regulation or court decree or order binding
      on
      or affecting the Loan Parties, or (z) result in, or require the creation or
      imposition of, any Lien on any property or assets of the Loan Parties except
      pursuant to the terms of the Loan Documents;

     

    (b)           upon
      the effectiveness of this Forbearance and First Amendment, it will constitute
      the legal, valid and binding obligation of the Loan Parties, enforceable against
      the Loan Parties in accordance with its terms, in each case subject to the
      effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
      moratorium or other similar laws relating to or affecting creditors’ rights
      generally, and to general equitable principles (whether considered in a
      proceeding in equity or at law);

     

    (c)           except
      with respect to the occurrence of the Existing Events of Default, the
      representations and warranties set forth in Article III of the Credit
      Agreement and in each of the other Loan Documents are true and correct in all
      material respects, or in the case of a representation and warranty that is
      qualified by a Material Adverse Effect shall be true and correct, with the
      same
      effect as if made on the Effective Date (except for representations and
      warranties that are made as of a specific date or time, which shall be true
      and
      correct only as of such specific date or time); and

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    

     

    (d)           except
      with respect to the occurrence of the Existing Events of Default, after giving
      effect to the amendments set forth in this Forbearance and First Amendment,
      no
      Default or Event of Default has occurred and is continuing.

     

    ARTICLE
      VIII

     

    ACKNOWLEDGEMENTS
      BY BORROWER AND GUARANTORS

     

    Section
      8.1.                      Acknowledgments
      of Indebtedness.

     

    (a)           Each
      Borrower hereby confirms and acknowledges, as of the date hereof, that it is
      validly indebted to the Administrative Agent and the Lenders for the payment
      in
      full of all Secured Obligations, without defense, counterclaim, offset,
      cross-complaint, claim or demand of any kind or nature whatsoever.

     

    (b)           Each
      Guarantor hereby confirms and acknowledges as of the date hereof that it is
      validly indebted to the Administrative Agent and the Lenders for the payment
      in
      full of all Secured Obligations which it has guaranteed, without defense,
      counterclaim, offset, cross-complaint, claim or demand of any kind or nature
      whatsoever.

     

    Section
      8.2.                      Release.  Each
      of the Borrowers and each of the Guarantors, on its own behalf, and on behalf
      of
      its successors and assigns, hereby releases, waives and forever discharges
      the
      Administrative Agent, the Lenders and all of their officers, directors,
      employees and agents from any and all actions, causes of action, debts, dues,
      claims, demands, liabilities and obligations of every kind and nature, both
      in
      law and equity, known or unknown, whether matured or unmatured, absolute or
      contingent arising from the beginning of the world through the date hereof
      with
      respect to this Forbearance and First Amendment, the Credit Agreement, the
      other
      Loan Documents and the transactions contemplated thereby.

     

    Section
      8.3.                      Loan
      Documents Still in Force.  Each of the Borrowers and the
      Guarantors hereby (a) ratifies and affirms in their entirety the Credit
      Agreement and the other Loan Documents and (b) subject to the terms and
      conditions of this Forbearance, agrees that the Credit Agreement and other
      Loan
      Documents shall remain in full force and effect throughout the Forbearance
      Period and from and after the expiration or termination thereof.  Each
      of the Borrowers and the Guarantors agrees that nothing in this Forbearance
      and
      First Amendment shall, or shall be construed to: (i) impair the validity,
      perfection or priority of the lien and security interest created under or
      evidenced by any Mortgage, any Security Agreement or any of the other Collateral
      Documents to which it is a party; (ii) waive or impair any rights, powers
      or remedies of the Administrative Agent or the Lenders under the Loan Documents
      upon termination of the Forbearance Period, all of which are expressly reserved;
      (iii) require the Administrative Agent or the Lenders to extend the
      Forbearance Period, or grant additional cure or forbearance periods, or
      otherwise modify this Forbearance and First Amendment; or (iv) waive the
      Existing Events of Default except as expressly set forth herein.

     

    ARTICLE
      IX

     

    MISCELLANEOUS

     

    Section
      9.1.                      Loan
      Document.  This Forbearance and First Amendment is a Loan Document
      executed pursuant to the Credit Agreement and shall (unless otherwise expressly
      indicated therein) be construed, administered and applied in accordance with
      the
      terms and provisions of the Credit Agreement, including Article VII
      thereof.

     

    Section
      9.2.                      Counterparts,
      etc.  This Forbearance and First Amendment may be executed by the
      parties hereto in several counterparts, each of which shall be deemed to be
      an
      original and all of which shall constitute but one and the same
      agreement.  Delivery of an executed counterpart by facsimile shall be
      effective as delivery of a manually executed counterpart.

     

    Section
      9.3.                      GOVERNING
      LAW.  THIS FORBEARANCE AND FIRST AMENDMENT, IN ACCORDANCE WITH
      SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK SHALL
      BE
      GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
      BUT OTHERWISE WITHOUT REGARD TO ANY CONFLICTS OF LAWS PRINCIPLES THEREOF THAT
      WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, BUT GIVING
      EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    

     

    Section
      9.4.                      Successors
      and Assigns.  This Forbearance and First Amendment shall be
      binding upon and inure to the benefit of the parties hereto and their respective
      successors and assigns.

     

    Section
      9.5.                      Entire
      Agreement.  This Forbearance and First Amendment and the other
      Loan Documents set forth the entire understanding and agreement of the parties
      hereto in relation to the subject matter hereof and thereof and supersede any
      prior negotiations and agreements among the parties relative to such subject
      matter.  No promise, condition, representation or warranty, express or
      implied, not herein or therein set forth shall bind any party hereto, and no
      one
      of them has relied on any such promise, condition, representation or
      warranty.  Each of the parties hereto acknowledges that, except as
      otherwise expressly stated in this Forbearance and First Amendment, no
      representations, warranties or commitments, express or implied, have been made
      by any party to any other party with respect to the subject matter of this
      Forbearance and First Amendment.  None of the terms or conditions of
      this Forbearance and First Amendment may be changed, modified, waived or
      canceled, orally or otherwise, except as provided in the Credit
      Agreement.

     

    Section
      9.6.                      Relationship.
      The Loan Parties agree that the relationship between the Administrative Agent,
      the Lenders and the Loan Parties is that of creditor and debtor and not that
      of
      partners or joint venturers.  This Forbearance and First Amendment
      does not constitute a partnership agreement, or any other association between
      the Administrative Agent, the Lenders and the Loan Parties.  The Loan
      Parties acknowledge that the Administrative Agent and the Lenders have acted
      at
      all times only as creditors to the Loan Parties within the normal and usual
      scope of the activities normally undertaken by a creditor and in no event have
      the Administrative Agent or any of the Lenders attempted to exercise any control
      over the Loan Parties or their respective businesses or affairs.

     

    Section
      9.7.                      No
      Third Party Beneficiaries.  This Forbearance and First Amendment
      is made and entered into for the sole protection and benefit of the Loan
      Parties, the Administrative Agent and the Lenders and no other person or entity
      shall have any right of action hereon, right to claim any right or benefit
      from
      the terms contained herein, or be deemed a third party beneficiary
      hereunder.

     

    Section
      9.8.                      Expenses.
      All reasonable out-of-pocket costs and expenses incurred by the Administrative
      Agent in connection with the preparation, negotiation, execution and
      administration of the forbearance contemplated herein, including, without
      limitation, the reasonable fees and disbursements of Kaye Scholer LLP and CMAG
      shall be paid or reimbursed by the Borrowers, promptly upon receipt of invoices
      therefor; provided, that the Borrowers shall not be required to reimburse
      the Administrative Agent for the fees and expenses of CMAG or any other
      financial advisor retained by the Administrative Agent or the Lenders during
      the
      administration of the forbearance contemplated herein.

     

    Section
      9.9.                      Full
      Force and Effect.  This Forbearance and First Amendment shall be
      limited precisely as written and shall not be deemed (a) to be a consent granted
      pursuant to, or a waiver or modification of, any term or condition of the Credit
      Agreement, the other Loan Documents or any of the instruments or agreements
      referred to therein or a waiver of any Default or Event of Default under the
      Credit Documents, whether or not known to any of the Administrative Agent or
      any
      of the Lenders or (b) to prejudice any other right or rights which the
      Administrative Agent or the Lenders may now have or have in the future under
      or
      in connection with the Credit Agreement, the other Loan Documents or any of
      the
      instruments or agreements referred to therein.  Except to the extent
      hereby amended or modified, the Credit Agreement and each of the Loan Documents
      shall continue in full force and effect in accordance with the provisions
      thereof, and are hereby ratified and confirmed.  As used in the Credit
      Agreement, the terms “Credit Agreement,” “this
      Agreement,” “herein,” “hereafter,”
“hereto,” “hereof,”
and
      words of similar
      import shall, unless the context otherwise requires, mean the Credit Agreement
      as modified by this Forbearance and First Amendment.  References to
      the terms “Agreement” or “Credit Agreement”
appearing in the Exhibits or Schedules
      to the Credit Agreement or in the other
      Loan Documents shall, unless the context otherwise requires, mean the Credit
      Agreement as modified by this Forbearance and First Amendment.

     

    Section
      9.10.                                Consultation
      with Advisors.  Each of the Loan Parties acknowledges that it has
      consulted with counsel and with such other experts and advisors as it has deemed
      necessary in connection with the negotiation, execution and delivery of this
      Forbearance and First Amendment.  This Forbearance and First Amendment
      shall be deemed to have been jointly drafted and shall be construed without
      regard to any presumption or rule requiring that it be construed against the
      party causing this Forbearance and First Amendment or any part hereof or thereof
      to be drafted.

     

    Section
      9.11.                                Invalidity;
      Severability.  Whenever possible, each provision of this
      Forbearance and First Amendment shall be interpreted in such manner as to be
      effective and valid under all applicable laws and

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    

    regulations.  Any
      provision of this Forbearance and First Amendment which is prohibited or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such prohibition or unenforceability without invalidating
      the
      remaining provisions hereof, and any such prohibition or unenforceability in
      any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

     

    Section
      9.12.                                Headings.  The
      headings of this Forbearance and First Amendment are for the purposes of
      reference only and shall not affect the construction of, or be taken into
      consideration in interpreting, this Forbearance and First
      Amendment.

     

    Section
      9.13.                                Survival.  Section
      8.2 of this Forbearance and First Amendment shall survive the Maturity Date
      and
      the repayment of the Obligations.  All other representations,
      warranties, covenants, agreements, undertakings, waivers and releases by each
      of
      the Loan Parties contained herein shall survive until all Obligations shall
      have
      been indefeasibly paid in full in cash (whether or not the Maturity Date shall
      have occurred).

     

    Section
      9.14.                                Further
      Amendments and Consents.  Should there be a need for further
      amendments, modifications, waivers or consents with respect to the matters
      addressed herein or any other matters, requests for such amendments,
      modifications, waivers or consents shall be evaluated by the Administrative
      Agent and the Lenders when formally requested, in writing, by the Borrower
      Representative and except as otherwise expressly set forth herein to the
      contrary, the Administrative Agent and the Lenders may deny any such
      requests.  No such amendment, modification waiver or consent shall be
      effective unless made in accordance with the terms of the Credit
      Agreement.

     

    [Remainder
      of page intentionally left blank]

     

     

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
 

    IN
      WITNESS WHEREOF the Borrowers, the other Loan Parties, the Lenders and the
      Administrative Agent have caused this Forbearance and First Amendment to be
      duly
      executed on the date first above written.

     

    
      	 	 
	
              BORROWERS:

            	
              INTEGRATED
                BRANDS INC.

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            
	 	 
	 	
              ESKIMO
                PIE FROZEN DISTRIBUTION, INC.

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            
	 	 
	 	
              ESKIMO
                PIE CORPORATION

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            
	 	 
	 	
              COOLBRANDS
                DAIRY, INC.

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            
	 	 
	
              OTHER
                LOAN PARTIES:

            	
              COOLBRANDS
                INTERNATIONAL INC.

            
	 	 
	 	
               

              By:
                ____________________________________________

              Name:

              Title:

            
	 	 
	 	
              SUGAR
                CREEK FOODS, INC.

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            
	 	 
	 	
              INTEGRATED
                BRANDS FRANCHISE CORP.

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            

    

     

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    

    
      	 	 
	 	
              COOLBRANDS
                SMOOTHIES FRANCHISE LLC

               

              By:
                INTEGRATED BRANDS  FRANCHISE CORP., its sole member

               

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            
	 	 

    

    

    
      	 	 
	
              AGENT
                AND LENDERS:

            	
              JPMORGAN
                CHASE BANK, N.A., individually, as

              Administrative
                Agent, Issuing Bank and Swingline Lender

            
	 	 
	 	
              By:
                ____________________________________________

              Title:

            
	 	 
	 	
              GMAC
                COMMERCIAL FINANCE LLC, as a Lender

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

            
	 	 
	 	
              GENERAL
                ELECTRIC CAPITAL CORPORATION,

              as Documentation
                Agent and as a Lender

            
	 	 
	 	
              By:
                ____________________________________________

              Name:

              Title:

               

            

    

    

    

    

    

    

    
      11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]