Document:

Exhibit 10.1

 

FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

This Fourth Amendment to
Loan and Security Agreement (this “Fourth Amendment”) made and entered into as
of the 4th day of April, 2005, is by and between LASALLE BANK NATIONAL ASSOCIATION, a national banking
association (“LENDER”), having its
principal place of business at 135 South LaSalle Street, Chicago, Illinois
60603-4105, and VITA FOOD PRODUCTS, INC.,
a Nevada corporation, with its chief executive office located at 2222 West Lake
Street, Chicago, Illinois 60612 (“Vita Food”), VIRGINIA HONEY COMPANY, INC., a Virginia corporation, with its
chief executive office located at 2222 West Lake Street, Chicago, Illinois
60612 (“Virginia Honey”), THE HALIFAX GROUP,
INC., a Georgia corporation, with its chief executive office located
at 2222 West Lake Street, Chicago, Illinois 60612 (“Halifax”), and VITA SPECIALTY FOODS, INC., a Delaware
corporation, with its chief executive office located at 2222 West Lake Street,
Chicago, Illinois 60612 (“Specialty Foods”) (Vita Food, Virginia Honey, Halifax
and Specialty Foods are individually a “Borrower” and collectively the
Borrowers”).

 

W I T N E S S E T H:

 

WHEREAS, prior hereto, Lender provided certain loans,
extensions of credit and other financial accommodations (the “Financial
Accommodations”) to Borrowers pursuant to (a) that certain Loan and Security
Agreement dated as of September 5, 2003, as amended by that certain First
Amendment to Loan and Security Agreement dated as of November 5, 2004, that
certain Second Amendment to Loan and Security Agreement dated as of December
21, 2004, and that certain Third Amendment to Loan and Security Agreement dated
as of January 31, 2005, each by and between Lender and Borrowers (as further
amended or restated from time to time, the “Loan Agreement”), and (b) the other
documents, agreements and instruments referenced in the Loan Agreement or
executed and delivered pursuant thereto;

 

WHEREAS, Borrowers have requested that Lender, among
other things, provide a temporary overadvance in the amount $800,000.00
(collectively the “Additional Financial Accommodations”); and

 

WHEREAS, Lender is willing to provide the Additional
Financial Accommodations, but solely on the terms and subject to the provisions
set forth in this Fourth Amendment and the other agreements, documents and
instruments referenced herein or executed and delivered pursuant hereto.

 

NOW,
THEREFORE, in
consideration of the foregoing, the mutual promises and understandings of the
parties hereto set forth herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Lender and Borrowers
hereby agree as set forth in this Fourth Amendment.

 

 

I.                                         Definitions.

 

A.                                    Use of Defined Terms.   Except as expressly set
forth in this Fourth Amendment, all terms which have an initial capital letter
where not required by the rules of grammar are used herein as defined in the
Loan Agreement.

 

B.                                    Amended Definitions.   Effective as of the date
of this Fourth Amendment, Section 1.1 of the Loan Agreement is hereby amended
by deleting the definition of “Overadvance” and substituting therefor the
following:

 

“Overadvance”:   shall
mean, an amount equal to (1) Eight Hundred Thousand and no/100 Dollars
($800,000.00) from the April 4, 2005, through June 30, 2005, and (2) zero
Dollars ($0) from July 1, 2005, and thereafter.

 

C.                                    Deleted Definitions.   Effective as of the date
of this Fourth Amendment, Section 1.1 of the Loan Agreement is hereby amended
by deleting the definition of “Overadvance Notice”.

 

II.                                   Amendments to Loan Agreement.   Effective as of the date
of this Fourth Amendment, the Loan Agreement is hereby amended as follows:

 

A.                                    Overadvance Note.   Section 2.1 of the Loan
Agreement is hereby amended by deleting Section 2.1(A)(4) of the Loan Agreement
in its entirety.

 

B.                                    Interest Rate and Fees.   Borrowers and Lender
acknowledge and agree that LIBOR Rate Loans shall no longer be available under
the Loan Agreement and, accordingly, Section 2.2 of the Loan Agreement is
hereby amended by deleting Section 2.2 of the Loan Agreement in its entirety
and substituting therefor the following:

 

“2.2                        Interest Rates and Fees.

 

(A)                              Revolving Loan.   Borrowers hereby jointly
and severally promise to pay interest on the unpaid principal amount of the Revolving
Loan as provided in Section 3.1 below at the floating per annum rate of
interest equal to the Prime Rate until the date such Loan is paid in full.
Notwithstanding the foregoing, upon the occurrence and during the continuance
of an Event of Default, the unpaid principal amount of the Revolving Loan
shall, at Lender’s option bear interest at the Default Rate.

 

(B)                                Term Loan A.   Borrowers hereby jointly and severally promise to pay
interest on the unpaid principal amount of Term Loan A as provided in Section
3.1 below at the floating per annum rate of interest equal to the Prime Rate
plus one-quarter of one percent (.25%) until the date such Loan is paid in
full. Notwithstanding the foregoing, upon the occurrence and during the
continuance of an Event of Default, the unpaid principal amount of Term Loan A
shall, at Lender’s option, bear interest at the Default Rate.

 

(C)                                Unused Line of Credit Fee.   Borrowers shall pay to
Lender an unused line

 

2

 

of credit fee equal to the
daily rate equivalent of one-quarter of one percent per annum (1/4%) of the
difference between the Maximum Revolving Loan and the average daily balance of
the sum of the Revolving Loan and the Letter of Credit Obligations for each calendar
quarter or part thereof, which fee shall be fully earned by Lender and payable
quarterly in arrears on the fifth (5th) Business Day of each calendar quarter.
Said fee shall be calculated on the basis of a 360-day year.

 

(D)                               Letter of Credit
Fees.   Prior
to the issuance of each standby Letter of Credit and on each annual anniversary
of the issuance thereof, Borrowers shall pay to Lender, a fee computed on a
daily basis equal to the amount of such Letter of Credit multiplied by one
hundred fifty (150) basis points per annum. Prior to the issuance of each
documentary Letter of Credit, Borrowers shall remit to Lender a Letter of
Credit fee at the rate quoted by Lender to Borrowers at the time of issuance.
In addition, Borrowers shall pay to and/or reimburse Lender for any costs, fees
and expenses incurred by Lender in connection with the application for,
issuance of or amendment to any Letter of Credit upon Lender’s demand therefor
and any amounts not so paid shall bear interest at the Default Rate until paid.”

 

III.                                 Conditions Precedent.   Lender’s obligation to
provide the Additional Financial Accommodations to Borrowers is subject to the
full and timely performance of the following covenants prior to or
contemporaneously with the execution of this Fourth Amendment:

 

A.                                   Borrowers executing and delivering, or
causing to be executed and delivered to Lender, the following documents, each
of which shall be in form and substance acceptable to Lender:

 

(i)                                     An original Secretary’s Certificate of even
date herewith executed by the Secretary of each Borrower to Lender; and

 

(ii)                                  such other agreements, documents and
instruments as Lender may reasonably request;

 

B.                                     No Unmatured Event of Default or Event of
Default exists under the Loan Agreement, as amended by this Fourth Amendment,
or the Other Agreements;

 

C.                                     No claims, litigation, arbitration
proceedings or governmental proceedings not disclosed in writing to Lender
prior to the date of hereof shall be pending or known to be threatened against
Borrowers and no known material development not so disclosed shall have
occurred in any claims, litigation, arbitration proceedings or governmental
proceedings so disclosed which in the opinion of Lender is likely to materially
or adversely affect the financial position or business of any Borrower or the
capability of any Borrower to pay its obligations and liabilities to Lender;
and

 

D.                                    There shall have been no material or adverse
change in the business, financial condition or results of operations since the
date of each Borrower’s most recently delivered financial statements to Lender.

 

3

 

IV.                                Conflict.   If, and to the extent, the
terms and provisions of this Fourth Amendment contradict or conflict with the
terms and provisions of the Loan Agreement, the terms and provisions of this
Fourth Amendment shall govern and control; provided, however, to the extent the
terms and provisions of this Fourth Amendment do not contradict or conflict
with the terms and provisions of the Loan Agreement, the Loan Agreement, as
amended by this Fourth Amendment, shall remain in and have its intended full
force and effect, and Lender and Borrowers hereby affirm, confirm and ratify
the same.

 

V.                                    Severability.   Wherever possible, each provision of this
Fourth Amendment shall be interpreted in such manner as to be valid and
enforceable under applicable law, but if any provision of this Fourth Amendment
is held to be invalid or unenforceable by a court of competent jurisdiction,
such provision shall be severed herefrom and such invalidity or
unenforceability shall not affect any other provision of this Fourth Amendment,
the balance of which shall remain in and have its intended full force and
effect. Provided, however, if such provision may be modified so as to be valid
and enforceable as a matter of law, such provision shall be deemed to be
modified so as to be valid and enforceable to the maximum extent permitted by
law.

 

VI.                                Reaffirmation.   Borrowers hereby reaffirm
and remake all of the representations, warranties, covenants, duties,
obligations and liabilities contained in the Loan Agreement, as amended hereby.

 

VII.                            Fees, Costs and Expenses.

 

A.                                   Borrowers agree to pay, upon demand, all
fees, costs and expenses of Lender, including, but not limited to, reasonable
attorneys’ fees, in connection with the preparation, execution, delivery and
administration of this Fourth Amendment and the other agreements, documents and
instruments executed and delivered in connection herewith or pursuant hereto.

 

B.                                     Contemporaneously herewith, Borrowers shall
pay to Lender a fully earned, nonrefundable amendment fee in the amount of Five
Thousand and no/100 Dollars ($5,000.00).

 

VIII.                        Choice of Law.   This Fourth Amendment has
been delivered and accepted in Chicago, Illinois, and shall be governed by and
construed in accordance with the laws of the State of Illinois, regardless of
the laws that might otherwise govern under applicable principles of conflicts
of law as to all matters, including matters of validity, construction, effect,
performance and remedies.

 

IX.                                Counterpart.   This Agreement may be
executed in two or more counterparts, each of which will be deemed an original,
but all of which together will constitute one and the same instrument.

 

X.                                    Waiver of Jury Trial.   BORROWERS AND LENDER EACH HEREBY WAIVE THEIR
RESPECTIVE RIGHT TO TRIAL BY JURY.

 

[signature
page follows]

 

4

 

IN WITNESS WHEREOF, Lender and Borrowers have caused this Fourth
Amendment to be executed and delivered by their duly authorized officers as of
the date first set forth above.

 

	
  LASALLE
  BANK NATIONAL ASSOCIATION,

  	
   

  	
  VITA FOOD PRODUCTS, INC.,

  
	
  a national banking association

  	
   

  	
  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Sara A. Huizinga

  	
   

  	
   

  	
  By:

  	
  /s/ Stephen D. Rubin

  	
   

  
	
  Name:

  	
  Sara A. Huizinga

  	
   

  	
   

  	
  Name:

  	
  Stephen D. Rubin

  	
   

  
	
  Title:

  	
  Assistant Vice President

  	
   

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VIRGINIA HONEY COMPANY, INC.,

  
	
   

  	
   

  	
  a Virginia corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Clifford Bolen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Clifford Bolen

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE HALIFAX GROUP, INC.,

  
	
   

  	
   

  	
  a Georgia corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Clifford Bolen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Clifford Bolen

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Treasurer & Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VITA SPECIALTY FOODS, INC.,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Clifford Bolen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Clifford Bolen

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  	
   

  

 

5Exhibit 10.1

 

AGREEMENT

 

Release of Claims and Covenant not to Sue

 

This Agreement of Release
of Claims and Covenant not to Sue (“Agreement”) is made by and between Luis A.
Collazo (“Employee”), an individual, and Cornell Companies, Inc., a Delaware
corporation (“CORNELL”).

 

WHEREAS,
Employee and CORNELL executed an Employment Agreement, effective October 20,
2004, wherein Employee and Cornell made certain agreements regarding Employee’s
employment and separation from employment; and

 

WHEREAS,
Employee will be separated from employment with CORNELL at the sole discretion
of the CEO without cause;

 

NOW THEREFORE, in
consideration of the mutual promises and releases contemplated in that
Employment Agreement and contained herein and for other good and valuable consideration,
the sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.               Salary and
Benefits.  Upon the execution of this
Agreement, the parties agree as follows:

 

(a)          Employee shall be
separated from employment with CORNELL effective June 3, 2005 (hereinafter
referred to as “termination date”).

 

(b)         CORNELL shall provide
Employee regular pay up to and including termination date.

 

(c)          CORNELL shall provide
Employee with payment for Employee’s balance of vested but unused banked time
off hours, banked vacation hours, and banked floating holiday hours, as
applicable and available at termination date.

 

(d)         CORNELL shall provide
Employee with up to 40 hours of Paid Time Off, depending on available balance
at termination date.

 

(e)          CORNELL provide Employee
with the following severance amounts:

 

i.                  Outplacement
assistance in the amount of $1,500.00 and

 

ii.               Twenty-six equal,
biweekly payments, totaling an amount equivalent to one year’s additional
salary after termination date, such payments to be necessarily reduced by any
tax and/or related deductions as may be required by law for severance pay.

 

(f)            CORNELL shall provide Employee with full
medical/dental/vision benefits participation up to and including June 30,
2005.  Thereafter, Employee shall be
entitled to any and all other rights or benefits afforded to other terminated
employees of CORNELL, including, without limitation, the right to elect to continue coverage under the
CORNELL health plan, in accordance with the health care continuation coverage
provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).

 

(g)         CORNELL
shall further provide Employee with financial assistance in covering the cost
of the COBRA payments as described in Subparagraph 1(f), above, in the amount
of $1,000.00 per month for six (6) months, to be paid with the first biweekly
severance payment of each month, beginning in July and ending in December,
2005.

 

 

2.               Waiver of
Promissory Note.  CORNELL agrees to
waive and forgive the entire balance still outstanding on the Promissory Note
attached and made a part of that certain Loan Agreement dated July 15, 2001,
wherein, in return for a school loan of $85,600.00, Employee obligated himself
to remain employed until January 2, 2007, or, if separated from
employment for any reason, immediately remit the balance still outstanding on
said agreement.

 

3.               Employment
Agreement Still in Force.  Employee
agrees that this Agreement was specifically contemplated within Section 4.1(c)
the above-referenced Employment Agreement effective October 20, 2004, and that
the instant Agreement neither supersedes that prior agreement nor renders
ineffective any of its terms requiring Employee’s confidentiality and
non-competition for a period of twelve months following date of Employee’s
separation from employment.

 

4.               Non-Disparagement.
Employee and CORNELL mutually agree to refrain from making any statement, oral
or written, that would cast either party in a disparaging light, including to
prospective employers of Employee, to current or prospective funding agencies,
to current or prospective clients, to current or prospective
shareholders/stakeholders of CORNELL, to the media, to any internet site, to
the community at large, and/or to any other party which could ultimately,
directly or indirectly, result in an adverse effect against Employee and/or
CORNELL.

 

5.               Release and
Covenant not to Sue. Employee, on behalf of Employee, Employee’s
descendants, ancestors, dependents, heirs, executors, administrators, assigns,
and successors, and each of them, hereby covenants not to sue and fully
releases, acquits, and discharges CORNELL, and its subsidiaries and affiliates,
past, present, future and each of them, as well as its owners, trustees,
directors, officers, agents, servants, employees, stockholders,
representatives, assigns, and successors, and each of them (collectively
referred to as “CORNELL Releasees”) with respect to and from any and all
claims, wages, demands, assistance, support, rights, liens, agreements,
contracts, covenants, actions, suits, rights to appeal, entitlements and
notices, causes of action, obligations, debts, costs, expenses, interests,
attorneys’ fees, contributions, damages, judgments, orders and liabilities of
whatever kind or nature in law, equity or otherwise, whether known or unknown,
suspected or unsuspected, and whether or not concealed or hidden, which
Employee has at any time heretofore owned or held against said CORNELL
Releasees, including, without limitation, those arising out of or in any way
connected with Employee’s employment relationship with CORNELL or Employee’s
termination or any other transactions, occurrences, acts or omissions or any
loss, damage or injury whatever, known or unknown, suspected or unsuspected,
resulting from any of them, committed or omitted prior to the date of this
Agreement, and including, without limitation, claims for breach of contract,
libel, slander, wrongful discharge, intentional infliction of emotional harm,
or other tort, discrimination or harassment based upon any federal, state, or
municipal statute or local ordinance relating to discrimination in employment,
and/or any other claim arising out of any federal, state, or municipal statute
or local law to which CORNELL Releasees may have been subject with regard to
Employee.

 

6.               Confidentiality
of Agreement.  Employee agrees that
this Agreement, in its entirety, is to remain confidential.  As such, Employee agrees to refrain from
disclosing by any means or by any person the contents of this Agreement.  This clause in no way implies a waiver of the
privileged right to disclose to Employee’s attorney and/or members of Employee’s
immediate family who, themselves, will agree to maintain said confidentiality.

 

7.               Entire Agreement.
This Agreement constitutes and contains the entire agreement and understanding
concerning Employee’s employment and separation, and the other subject matters
addressed herein between the parties, and supersedes and replaces all prior
negotiations and all

 

2

 

prior agreements proposed
or otherwise, whether written or oral, concerning the subject matter hereof.

 

8.               Governing Law.
This Agreement shall be governed by and subject to the laws and exclusive
jurisdiction of the courts of the State of Texas. In the event that Employee
breaches any of the provisions of this Agreement, Employee agrees to pay
CORNELL’s reasonable costs of prosecuting such claims, including attorneys’
fees and costs.

 

9.               Severability.
In the event that one or more of the provisions of this Agreement shall for any
reason be held to be illegal or unenforceable, this Agreement shall be revised
only to the extent necessary to make such provision(s) legal and enforceable.

 

The
parties acknowledge that they have read the foregoing Agreement, understand its
contents, and accept and agree to the provisions it contains and hereby execute
it voluntarily and knowingly and with full understanding of its consequences.

 

PLEASE
READ CAREFULLY.  THIS AGREEMENT INCLUDES
A RELEASE OF KNOWN AND UNKNOWN CLAIMS.

 

	
  EMPLOYEE

  	
   

  	
  CORNELL COMPANIES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Luis A. Collazo

  	
   

  	
  By:

  	
  /s/ Patrick N. Perrin

  	
   

  
	
   Luis A. Collazo

  	
   

  	
   Patrick N. Perrin,

  
	
   

  	
   

  	
   Sr. Vice President &

  
	
   

  	
   

  	
   Chief Administrative Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
  April
  12, 2005

  	
   

  	
  Date:

  	
  April
  8, 2005

  	
   

  
									

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]