Document:

sgrp20161231_10k.htm

Exhibit 10.48

 

 

AMENDED AND RESTATED SECURED REVOLVING LOAN NOTE 

 

	
$9,000,000.00 
	
As of __________ __, 2017

	
 
	
New York, New York

 

 

As and when provided by the terms of that certain Revolving Loan and Security Agreement effective July 6, 2010, as same has been amended from time to time and as same has been further amended as of the date hereof and as same may be subsequently amended, signed by the undersigned as "Borrower" (collectively, "Loan Agreement"), For Value Received, the undersigned (collectively, the "Borrower"), jointly and severally, promises to pay to the order of STERLING NATIONAL BANK (the "Lender"), in care of Sterling National Bank, as Agent pursuant to the Loan Agreement (the "Agent"), at 489 Fifth Avenue, New York, NY 10017, the principal sum of Nine Million and 00/100 Dollars ($9,000,000.00), or such lesser principal amount actually advanced pursuant to the Loan Agreement.

 

This Note bears interest during each calendar month from the date hereof until paid as set forth in the Loan Agreement. Interest is to be paid at time intervals as set forth in the Loan Agreement. In no event is the interest rate to be higher than the maximum lawful rate. Interest is calculated on a daily basis upon the unpaid balance with each day representing 1/360th of a year.

 

All payments on this Note are to be made in immediately available lawful money of the United States by the Agent's direct charge to the Borrower's and the Guarantor's deposit accounts with the Agent. In addition to the provision above for direct charge of payments due, the Agent is hereby authorized, at its sole and absolute discretion, to debit any other of the Borrower's or the Guarantor's accounts for payments due as set forth in the Loan Agreement. This authorization does not affect the Borrower's obligations to pay when due all amounts payable under this Note, whether or not there are sufficient funds therefor in such accounts. The foregoing authorization is in addition to, and not in limitation of, any rights of setoff.

 

In the event and during the continuance of a Default (as defined in the Loan Agreement), the Agent in its discretion may impose the accrual of default interest on all amounts payable hereunder at a rate equal to five percent (5%) per annum (the "Default Rate") in addition to the interest rate otherwise payable hereunder. The Borrower acknowledges that: (i) such additional Default Rate is a material inducement to the Lender to make the loan; (ii) the Lender would not have made the loan in the absence of the agreement of the Borrower to pay such additional Default Rate; (iii) such additional Default Rate represents compensation for increased risk to the Lender that the loan will not be repaid; and (iv) such additional Default Rate is not a penalty and represents a reasonable estimate of (a) the cost to the Lender in allocating its resources (both personnel and financial) to the ongoing review, monitoring, administration and collection of the loan and (b) compensation to the Lender for losses that are difficult to ascertain.

 

In the event any payment is received by the Agent more than ten (10) days after the date due, the Agent may assess, in its discretion, and the undersigned is to pay, to the extent permitted by law, to the Lender a late charge of five percent (5%) of the overdue payment. Any such late charge so assessed by the Agent is immediately due and payable. Any payment received after 3:00 P.M. on a banking day (other than as advanced or debited later than such time by the Agent or any Lender) is deemed received on the next succeeding banking day.

 

 

 

 

 

 

This Note is secured by the Collateral as defined in the Loan Agreement. Capitalized terms used and not otherwise defined in this Nate have the meaning set forth in the Loan Agreement. The terms and provisions of the Loan Agreement are incorporated herein by reference. In the event of conflict, ambiguity or inconsistency between the terms of the Loan Agreement and the terms hereof, the terms of the Loan Agreement prevail.

 

Except as otherwise specified in the Loan Agreement, each payment made in respect of this Nate is to be applied first to the payment of any expenses or charges payable hereunder and accrued interest, and the balance applied to principal amounts due under this Note.

 

The undersigned hereby waives demand, notice of non-payment, protest, and all other notices or demands whatsoever, and hereby consents that without notice to and without releasing the liability of any party, the obligations evidenced by this Note or the Loan Agreement may from time to time, in whole or part, be renewed, extended, modified, accelerated, compromised, settled or released by the Lender.

 

The Lender's books and records are prima facie evidence of the amount of the obligations and are binding upon the Borrower absent manifest error.

 

The Lender is hereby authorized to fill in any blank spaces in this Note and to date this Note as of the applicable date and to correct patent errors herein.

 

Pursuant to Section 5-1401 of the New York General Obligations Law, the substantive laws of the State of New York, without regard to the choice of law principles that might otherwise apply to defer to the substantive laws of another jurisdiction, shall govern the validity, construction, enforcement and interpretation of this Note.

 

BORROWER, AGENT AND LENDERS EACH HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY IN ANY LITIGATION RELATING TO THIS NOTE OR OTHER LOAN DOCUMENTS AS AN INDUCEMENT TO THE ACCEPTANCE BY THE LENDER OF THIS NOTE.

 

 

(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

 

 

- 2 -

 

 

This Note is being executed and delivered as a restatement of the outstanding indebtedness evidenced by that certain Amended and Restated Secured Revolving Loan Note dated as of December 22, 2016, as same may have previously been amended or restated (hereinafter referred to as the "Existing Note") and secured by the Loan Agreement. The indebtedness evidenced by this Note constitutes a total restatement of the indebtedness evidenced by the Existing Note in the current aggregate amount outstanding and/or available to be advanced thereunder of $9,000,000.00. This Note shall not constitute a cancellation or novation with respect to the indebtedness evidenced by the Existing Note. Such indebtedness (as heretofore evidenced by the Existing Note and as hereafter evidenced by this Note) shall continue to be secured by, inter alia, the Loan Agreement without interruption in the lien or priority thereof. Subject to the foregoing provisions this Note amends, restates and supersedes the Existing Note.

 

	
Witness: 
	
SPAR GROUP, INC.

	 	 
	
___________________________
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

	
 
	
 

	
Witness:
	
SPAR ASSEMBLY & INSTALLATION, INC.

	 	 
	
____________________________ 
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

	
 
	
 

	
Witness:
	
SPAR GROUP INTERNATIONAL, INC.

	 	 
	
_____________________________ 
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

 

 

-Signatures Continued on Following Page-

 

 

- 3 -

 

 

	
Witness: 
	
SPAR ACQUISITION, INC.

	 	 
	
___________________________
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

	
 
	
 

	
Witness:
	
SPAR TRADEMARKS, INC.

	 	 
	
____________________________ 
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

	
 
	
 

	
Witness:
	
SPAR MARKETING FORCE, INC.

	 	 
	
_____________________________ 
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

 

	
Witness: 
	
SPAR CANADA, INC.

	 	 
	
___________________________
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

	
 
	
 

	
Witness:
	
SPAR CANADA COMPANY

	 	 
	
____________________________ 
	
By: ___________________________

Name: James R. Segreto

Title:    Chief Financial Officer,

            Treasurer and Secretary

 

 

- 4 -

 

 

	
STATE OF
	
 )

	
 
	
 ) ss.:

	
COUNTY OF
	
 )

 

On the ___ day of _________ in the year 2017, before me, the undersigned, personally appeared James R. Segreto, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacities, and that by his signatures on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Notary Public
	
 

 

 

- 5 -EX-10.1

 Exhibit 10.1 

[Company letterhead] 
 April 11, 2017

 Brian J. Driscoll 
 Dear Brian: 

On behalf of Snyder’s-Lance, Inc. (the “Company”), it is a pleasure to extend you this offer of
employment for a temporary role as interim chief executive officer of the Company (“Interim CEO”), commencing April 11, 2017 (the “Effective Date”). In this role, you will have all of the powers and responsibilities of the
CEO. 
 You will continue to serve as a director of the Company while you are Interim CEO, provided that you will not receive additional compensation as a non-employee director following the Effective Date and until such time as you are no longer an employee of the Company. However, you will continue to be treated as in-service
for purposes of vesting and exercisability of options or other outstanding equity awards. Any awards that vest as a result of your service as non-employee director will not be subject to withholding taxes.
Following your termination of employment, you will return to your status (and compensation) as a non-employee director. 

Your employment, but not your status as a director, pursuant to this letter will automatically terminate six months from the Effective Date unless both
parties agree to extend it. 
 We are pleased to offer you the following compensation. 

 

			
	Salary	  	 You will be paid a salary of $75,000 per month.
  

All compensation is payable in accordance with the Company’s regular payroll practices and subject to all applicable withholdings.

		
	Bonus	  	You will be eligible for the Company’s 2017 Annual Performance Incentive Plan for Officers and Key Managers (the “2017 AIP”) with a target bonus of $890,000, prorated for each day of 2017 you are employed as
Interim CEO. To the extent other bonus programs are made available to the senior executive team, you will also be eligible for a maximum bonus percentage opportunity consistent with other senior executive team members and criteria for such bonus
opportunities shall be consistent with the criteria for such other senior executive team members.
		
	Equity
compensation	  	You will be granted an equity award, with a grant date of the thirtieth (30th) day following the Effective Date, comprised of (A) a restricted stock award with a fair
market value of $300,000 and (B) an option award with a Black Scholes value of $300,000 (determined in a manner consistent with other senior executive option grants) with an exercise

			
	  
	  	 price equal to the closing price of the Company’s stock on the grant date (or the next day that markets are open). Each award will be
subject to the following terms and conditions:
  

1.      Each award will vest and become fully vested and exercisable at the end of the
sixth month period following the Effective Date subject to your continued employment as the Interim CEO on such date, except as set forth below.
  

2.      Upon a Change of Control of the Company or if your employment is terminated due
to death, Disability, or by the Company without Cause or by you for Good Reason (as such defined terms are defined in the applicable award agreements), the award will vest and become exercisable in full, and any options will continue to be
exercisable while you remain a director of the Company and for no less than three months thereafter (but no later than the 10th anniversary of the grant date).

 
 3.      This award
will be subject to the terms and conditions of the 2016 Key Employee Incentive Plan and such award agreements as provided by the Compensation Committee of the Company.

		
	Employee
benefits	  	Subject to each plan’s applicable terms and conditions, you will participate in employee benefit plans and programs commensurate with your status as a senior executive officer, including health, dental, disability, life, and
401(k).
		
	Severance	  	Because your employment is being established as a temporary employment engagement, the end of this employment is not considered to be an involuntary termination under any plan or program of the Company, which means that you will
not be eligible to receive severance benefits under any plan or other arrangement in connection with your employment, or termination thereof, as Interim CEO. Notwithstanding, the foregoing, in addition to the equity award vesting set forth above,
upon termination of your employment by the Company without Cause or by you for Good Reason, you will receive your 2017 AIP (determined based on actual Company performance, but prorated for each day during the performance period you served as Interim
CEO), when other 2017 AIP participants are paid, but no later than March 15, 2018.

			
	Indemnification
and D&O	  	 (A)   During your term of employment under this letter and thereafter throughout
all applicable limitation periods, the Company shall provide you (including your heirs, personal representatives, executors and administrators) with such coverage, as will be generally available to senior officers of the Company under the
Company’s then current directors and officers liability insurance policy at the Company’s sole expense.
  

(B)   In addition to the insurance coverage provided in (A) above, the Company shall defend, hold
harmless and indemnify you (and your heirs, personal representatives, executors and administrators) to the fullest extent permitted by the Company’s articles and by-laws and applicable law from and
against any and all liabilities, costs, claims and expenses including without limitation all costs and expenses incurred in defense of litigation, including attorneys’ fees, arising out of your employment hereunder.

 
 (C)   Nothing in this letter shall
diminish any indemnification rights otherwise applicable to you, and the Company agrees that it shall provide indemnification rights to you that are no less favorable than provided to other senior executives of the Company as exist on the Effective
Date.
  
 (D)   This
indemnification provision shall survive the termination of your employment as Interim CEO.

		
	Housing
stipend and
expenses	  	You may use the Company-owned apartment while in Charlotte, NC, or if such accommodations are insufficient for your family’s needs, the Company will pay you a monthly housing stipend of $2,500, less required tax
withholdings. The Company will reimburse your reasonable travel expenses from your home to the Company’s offices in Charlotte, NC, less required tax withholdings. You will be eligible for reimbursement of your reasonable travel and business
expenses in accordance with the terms of the Company’s expense reimbursement policy. The Company will reimburse your legal fees in connection with this letter agreement not to exceed $5,000.

 Following your employment, the Company will provide reimbursement for any reasonable expenses actually incurred in providing
cooperation to the Company by providing truthful information and testimony as reasonably requested by the Company, with regard to any claim asserted by or against the Company or its subsidiaries as to which you have relevant knowledge and, in
situations where you are not a named defendant in the claim, the Company will also provide a reasonable rate of pay per hour for time spent in providing such services. The Company represents and warrants that your employment as Interim CEO will not
adversely affect your payments, benefits or rights pursuant to (i) that certain offer letter agreement entered 

 
into by and between you and Diamond Foods, Inc., dated May 4, 2012, as amended September 24, 2015 or (ii) any other agreement related to your termination as an employee of Diamond
Foods, Inc. 
 Your employment is “at will” and is subject to all terms and conditions contained in the current version of the Employee
Handbook. Nothing in this letter shall restrict in any way your rights or the Company’s rights, which rights are hereby expressly reserved by each, to terminate employment at any time for any reason, with or without cause, subject to applicable
law. 
 Speaking on behalf of the board of directors and myself, I thank you for your willingness to serve and we look forward to working with you over the
coming months. 
  

			
	Sincerely,
	
	Snyder’s-Lance, Inc.
		
	By:	 	 /s/ Gail Sharps Myers

	Name:	 	Gail Sharps Myers
	Title:	 	SVP, General Counsel & Secretary
	
	I accept this offer as presented.
	
	 /s/ Brian J. Driscoll

	Brian J. Driscoll
	
	Date: April 11, 2017

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