Document:

EXHIBIT
10.4

AMENDMENT
NO. 3 TO RIGHTS AGREEMENT

 

This Amendment No. 3, dated as of April 29,
2002 (the “Amendment”), to the Amended and Restated Rights Agreement (the
“Rights Agreement”) dated as of July 15, 1999, as amended by Amendment
Nos. 1 and 2, by and between Gardenburger, Inc. (the “Company”), and
EquiServe Trust Company, N.A. (the “Rights Agent”).

WITNESSETH:

WHEREAS, the Company and the Rights Agent have entered
into the Rights Agreement; and

WHEREAS, the Board of Directors of the Company, in accordance
with Section 26 of the Rights Agreement, has determined it desirable and
in the best interests of the Company and its shareholders to supplement and
amend certain provisions of the Rights Agreement.

NOW, THEREFORE, in consideration of the premises and
the mutual agreements herein set forth, the parties agree as follows:

Section 1. 
Amendment
to Section 1.1. 
Section 1.1 of the Rights Agreement is amended to read in its
entirety as follows:

“1.1         “Acquiring
Person” shall mean any Person (as such term is hereinafter defined) who or
which, together with all Affiliates and Associates (as such terms are
hereinafter defined) of such Person, shall be the Beneficial Owner (as such
term is hereinafter defined) of 15% or more of the Common Shares of the Company
then outstanding, but shall not include: 
(i) the Company; (ii) any Subsidiary of the Company;
(iii) any employee benefit plan of the Company or of any Subsidiary of the
Company or any entity holding shares of capital stock of the Company for or
pursuant to the terms of any such plan, in its capacity as an agent or trustee
for any such plan; or (iv) any Exempt Person, unless such Exempt Person
becomes the Beneficial Owner of more than the Exempt Percentage of the Common
Shares of the Company then outstanding. 
“Exempt Person” shall mean (x) Paul F. Wenner, together with
all of his Affiliates and Associates, including, without limitation, the
Paul F. Wenner Charitable Foundation Trust (collectively, “Wenner”);
(y) Dresdner Kleinwort Benson Private Equity Partners LP, together with
all of its Affiliates and Associates, or any one or more of the Affiliates and
Associates of Dresdner Kleinwort Benson Private Equity Partners LP
(collectively, “Dresdner”); and (z) Gruber & McBaine Capital
Management, LLC, together with all of its Affiliates and Associates, or any one
or more of the Affiliates and Associates of Gruber & McBaine Capital
Management, LLC (collectively, “Gruber & McBaine”).  “Exempt Percentage” shall mean up to 25% of
the Common Shares of the Company then outstanding.  Notwithstanding the foregoing, (a) no Person shall become an
“Acquiring Person” as the result of an acquisition of Common Shares by the
Company which, by reducing the number of shares outstanding, increases the
proportionate number of shares beneficially owned by such Person to 15% (25% as
to any Exempt Person) or more of the Common Shares of the Company then
outstanding, provided that if a Person shall become the Beneficial Owner
of 15% (25% as to any 

 

-1-

 

Exempt Person) or more of the Common Shares of the
Company then outstanding solely by reason of share purchases by the Company and
shall, after such purchases by the Company, become the Beneficial Owner of any
additional Common Shares of the Company, then such Person shall be deemed to be
an “Acquiring Person;” (b) if the Board of Directors of the Company determines
in good faith that a Person who would otherwise be an “Acquiring Person,” as
defined pursuant to the foregoing provisions of this Section 1.1,
has become such inadvertently, and such Person divests as promptly as
practicable a sufficient number of Common Shares so that such Person would no
longer be an Acquiring Person, as defined pursuant to the foregoing provisions
of this Section 1.1, then such Person shall not be deemed to be an
“Acquiring Person” for any purposes of this Agreement (so long as such Person
does not become an Acquiring Person after such divestiture); and (c) none of
the Purchasers (as defined in that certain Stock Purchase Agreement dated as of
March 29, 1999, by and among the Company and the Purchasers, as amended by
letter agreement dated April 14, 1999) or Holders (as defined in that
certain Preferred Stock Exchange Agreement dated as of January 10, 2002, by
and among the Company and the Holders), together with any one or more or all of
each Purchaser’s and Holder’s Affiliates and Associates (Purchasers and
Holders, collectively, the “Preferred Investors”), shall become or be deemed to
be an “Acquiring Person,” either singly or as a group, solely by reason of
being or becoming the Beneficial Owner of any number of the Company’s shares of
Series C Convertible Preferred Stock or Series D Convertible
Preferred Stock (together, the “Convertible Preferred Shares”), or any of the
Common Shares into which such Convertible Preferred Shares are converted or may
become convertible.”

Section 2. 
Rights
Agreement as Amended.  The
term “Rights Agreement” as used in the Rights Agreement shall be deemed to
refer to the Rights Agreement as amended hereby.  This Amendment shall be effective as of the date hereof and,
except as set forth herein, the Rights Agreement and all schedules or exhibits
thereto shall remain in full force and effect and be otherwise unaffected
hereby.

Section 3. 
Officer’s
Certificate.  In accordance
with Section 26 of the Rights Agreement, the Company has provided the
Rights Agent a certificate executed by an authorized officer of the Company,
stating that the Amendment is in compliance with the terms of Section 26
of the Rights Agreement.

Section 4. 
Counterparts.  This Amendment may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all of such counterparts shall together constitute but
one and the same instrument.

 

-2-

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed in their names
and on their behalf by and through their duly authorized officers, as of the
day and year first above written.

 

	
   

  	
  GARDENBURGER,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lorraine
  Crawford

  
	
   

  	
  Name:

  	
  Lorraine
  Crawford

  
	
   

  	
  Title:

  	
  Vice President
  of Finance

  

 

 

	
   

  	
  EQUISERVE TRUST
  COMPANY, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tom
  McDonough

  
	
   

  	
  Name:

  	
  Tom McDonough

  
	
   

  	
  Title:

  	
   

  

 

 

-3-EXHIBIT
10.12

 

 

LEASE EXTENSION AGREEMENT

BY AND BETWEEN FREEPORT CENTER
ASSOCIATES

AND GARDENBURGER, INC.

 

 

 

October 17, 2002

 

Mr. Stephen L. Barrett

General Manager

Freeport Center Associates

P.O. Box 160466 — Freeport Center

Clearfield, Utah 84016-0466

 

Re: Lease Renewal

 

Dear Steve:

 

Pursuant to the lease between and with
Gardenburger, Inc. and Freeport Center Associates and your letter dated October
16, 2002, Gardenburger, Inc. hereby exercises the renewal option of the
original lease dated May 28, 1997, for the five-year period from January 1,
2003 through December 31, 2007.  This
extension of the lease is in accordance with the terms and conditions as
specified in the lease.

 

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
  /s/ James W. Linford

  	
   

  
	
  James W. Linford

  	
   

  
	
  Chief Operating Officer

  	
   

  
	
  Gardenburger, Inc

  	
   

  

.

 

-1-EXHIBIT
10.19

THIRD
AMENDMENT TO

NOTE
PURCHASE AGREEMENT

 

THIS THIRD
AMENDMENT (this “Amendment”), dated as of September 30, 2002, to the
Note Purchase Agreement, dated as of March 27, 1998, by and among DRESDNER
KLEINWORT BENSON PRIVATE EQUITY PARTNERS LP, a Delaware limited partnership
(“the Purchaser”), and GARDENBURGER, INC., an Oregon corporation (the “Company”).

 

WHEREAS, the
parties hereto have entered into the Note Purchase Agreement, dated as of March
27, 1998 (the “Agreement”), a First Amendment to Note Purchase Agreement
dated as of December 23, 1999 (the “First Amendment”), and a Second
Amendment to Note Purchase Agreement dated as of January 10, 2002 (the “Second
Amendment”); unless otherwise defined herein, all capitalized terms used
herein (including the recitals) shall have the meanings assigned to such terms
in the Agreement, as amended by the First Amendment and Second Amendment and
hereby;

 

WHEREAS, the
Company has entered into a Revolving Credit and Term Loan Agreement dated as of
January 10, 2002, with CapitalSource Finance LLC as a lender  and as agent (“CapitalSource”),
pursuant to which, among other things, the Company refinanced its obligations
under the previous Senior Credit Agreement dated December 23, 1999, between the
Company and Bank of America Commercial Finance Corporation and received a
credit facility with an aggregate maximum borrowing availability of
$15,000,000;

 

WHEREAS, the
Company and CapitalSource have executed a First Amendment to Revolving Credit
and Term Loan Agreement dated September 30, 2002 (the “Senior Amendment”),
in which the limits on the Capital Expenditures of the Company have been
altered;

 

WHEREAS, the
Company has requested the Purchaser to amend the Agreement on the terms and
conditions set forth in this Amendment;

 

NOW, THEREFORE, in
consideration of the premises and the agreements, provisions, and covenants
contained herein, the parties hereto agree as follows.

 

1.     Amendment.

Section 2D(b)(iv) of the Agreement, as amended by the Second Amendment,
is hereby amended and restated to read as follows:

“(iv)        Capital
Expenditures

The Company shall
not permit its Capital Expenditures in the aggregate to exceed (i) $2,420,000
during the fiscal year ending on September 30, 2002, and (ii) 1,210,000 during
any fiscal year thereafter.”

 

1

 

2.     Ratification of Agreement.

(a)   To induce the Purchaser to enter into this
Amendment, the Company represents and warrants that after giving effect to this
Amendment, no violation of the terms of the Agreement exist and all
representations and warranties contained in the Agreement are true, correct,
and complete in all material respects on and as of the date hereof except as
(i) reflected in any schedule to the New Senior Credit Agreement, (ii)
disclosed in the Company’s reports filed with the Securities and Exchange
Commission, or (iii) disclosed to Purchaser’s representative on the Board
during a meeting of the Board, and except to the extent such representations
and warranties specifically relate to an earlier date in which case they were
true, correct, and complete in all material respects on and as of such earlier
date.

(b)   Except as expressly set forth in this
Amendment, the terms, provisions and conditions of the Agreement and the
Investment Documents are unchanged, and said agreements, as amended, shall
remain in full force and effect and are hereby confirmed and ratified.

3.     Conditions.  This Amendment shall become effective as of
the date first set forth above upon (i) the execution of the counterparts
hereof by the Company and the Purchaser, and (ii) the receipt by the Purchaser
of evidence of the effectiveness of the Senior Amendment.

4.     Binding on Successors and Assigns.  All the terms and provisions of this
Amendment shall be binding upon and inure to the benefit of the parties hereto,
their respective successors, assigns and legal representatives.  Whenever in this Amendment any of the
parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party.

5.     Further Assurances.  Each of the Company and the Purchaser, as
the case may be, shall duly execute and deliver, or cause to be executed and
delivered, such further instruments and perform or cause to be performed such
further acts as may be necessary or proper in the reasonable opinion of the
Purchaser to carry out the provisions and purposes of this Amendment.

6.     Effect of Amendment.  To the extent any terms and conditions in
the Agreement shall contradict or be in conflict with any provisions of this
Amendment, the provisions of this Amendment shall govern.

7.     Expenses.  All expenses of the Purchaser incurred in connection with this
Amendment, including reasonable expenses of Purchaser’s counsel, will be paid
by the Company.

8.     Governing Law.  This Amendment shall be governed by, and
shall be construed in accordance with, the laws of the state of New York,
without giving effect to any choice of law or conflict of law rules or
provisions (whether of the state of New York or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the
state of New York.

9.     Counterparts.  This Amendment may be executed in separate
counterparts, each of which shall be an original and all of which taken together
shall constitute one and the same agreement.

 

2

 

10.   Consent.  Purchaser acknowledges receipt of a copy of the Senior Amendment
and hereby consents to the execution thereof and consummation of the transactions
contemplated thereby and acknowledges that the execution thereof and
consummation of the transactions contemplated thereby are not a default or
event of default under the Agreement, as amended by the First Amendment and
Second Amendment.

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

 

	
   

  	
  DRESDNER KLEINWORT BENSON PRIVATE

  EQUITY PARTNERS LP   

  
	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  By: 

  	
  Dresdner Kleinwort
  Benson Private Equity LLC

  	 

	
   

  	
  Its:

  	
  General Partner  

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
  /s/Alex Coleman  

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Its:

  	
  General Partner

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

						

 

 

 

	
   

  	
  GARDENBURGER, INC.

  	 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lorraine Crawford

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Vice President, Finance
  and Corporate Controller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

 

3

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