Document:

Consent and Second Amendment to Credit Agreement

 Exhibit 10.17 
  
 CONSENT AND SECOND AMENDMENT TO  
 CREDIT AGREEMENT 
  
 This CONSENT AND SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is effective as of August 8, 2008 by and among HARRY AND DAVID, an Oregon corporation (as successor by merger to Harry & David
Operations Corp., a Delaware corporation) (“Borrower”), the Guarantors (such term and each other capitalized term used but not defined herein having the meaning given to it in the Credit Agreement referenced below), the Lenders
signatory hereto, UBS AG, STAMFORD BRANCH, as administrative collateral agent and as administrative agent (in its capacity as administrative agent, the “Administrative Agent”) for the Lenders, and GMAC Commercial Finance LLC, as
collateral agent (the “Collateral Agent”) for the Secured Parties and Issuing Bank. 
  
 RECITALS 
  
 WHEREAS, Borrower, Guarantors, the Administrative Agent, the Collateral Agent, the other Agents and the Lenders entered into that certain Credit Agreement dated as of March 20, 2006 (as amended, supplemented,
restated or otherwise modified from time to time, the “Credit Agreement”); 
  
 WHEREAS, Borrower has requested that Administrative Agent and Lenders consent to Borrower’s acquisition (the “Transaction”) of the Acquired Assets (as defined in and pursuant to the terms and
conditions set forth in the Asset Purchase Agreement by and between Harry and David and Cushman Fruit Company attached hereto as Exhibit A (together with any documents and agreements related thereto, the “Transaction
Documents”); and 
  
 WHEREAS, Borrower has requested that
Agents and the Lenders amend certain provisions of the Credit Agreement, all upon the terms and subject to the conditions as herein set forth; 
  
 NOW THEREFORE, in consideration of the foregoing recitals and mutual agreements contained herein and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Agents, the Lenders signatory hereto, Borrower and the other Loan Parties agree as follows: 
  
 Section 1. Amendments. Subject to the satisfaction of the conditions to effectiveness as such in Section 3 herein, the Credit Agreement
is hereby amended as follows: 
  
 (a) Section 11.04
is hereby amended by adding the following as a new subsection (h) thereto: 
  
 “(h) Notwithstanding any provision to the contrary, any Lender (an “Assigning Lender”) may assign to one or more of
its Affiliates that is a special purpose funding vehicle (each, an “SPV”) all or any portion of its funded Loans (without the corresponding Commitment), without the consent of any Person or the payment of a fee, by execution of a
written assignment agreement in a form agreed to by such Assigning Lender and such SPV, and may grant any such SPV the option, in such SPV’s sole discretion, to provide the Borrower all or any part of any Loans that such Assigning 

 
Lender would otherwise be obligated to make pursuant to this Agreement. After notice to the Administrative Agent of such assignment as set forth below, such
SPVs shall have all the rights which a Lender making or holding such Loans would have under this Agreement, but no obligations. The Assigning Lender shall remain liable for all its original obligations under this Agreement, including its Commitment
(although such Commitment shall be reduced by the principal amount of any Loans held by an SPV). Notwithstanding such assignment, the Administrative Agent and Borrower may deliver notices to the Assigning Lender (as agent for the SPV) and not
separately to the SPV unless the Administrative Agent and Borrower are requested in writing by the SPV (or its agent) to deliver such notices separately to it. The Borrower shall, at the request of any Assigning Lender, execute and deliver to such
Person as such Assigning Lender may designate, a Note in the amount of such Assigning Lender’s original Note to evidence the Loans of such Assigning Lender and related SPV. The Assigning Lender shall provide the Administrative Agent with
written notice of any such assignment promptly after the occurrence thereof.” 
  
 (b) Section 11.12 is hereby amended by adding the following provision at the end thereof: 
  
 “The confidentiality provisions contained in this Agreement shall not prohibit disclosures to any trustee, administrator, collateral manager,
servicer, backup servicer, lender, rating agency or secured party of any SPV in connection with the evaluation, administration, servicing of, or the reporting on, the assets or securitization activities of such SPV (it being understood, however,
that any such Persons to whom such disclosure is made will be informed of the confidential nature of any Information so disclosed and instructed to keep such Information confidential pursuant to the terms hereof).” 
  
 Section 2. Consent and Waiver. Subject to the
satisfaction of the conditions to effectiveness set forth in Section 3 herein, the Administrative Agent and the Lenders whose signatures appear below consent to the consummation of the Transaction pursuant to and in accordance with the
terms and conditions set forth in the Transaction Documents and in connection with such consent and solely with respect to the Transaction hereby waive (a) the condition set forth in clause (vii) of the definition of Permitted Acquisition
in the Credit Agreement requiring delivery of an Officer’s Certificate at least ten (10) Business Days prior to the proposed date of such acquisition and (b) the condition set forth in clause (viii) of the definition of Permitted
Acquisition in the Credit Agreement to the extent that the Acquisition Consideration paid for all Permitted Acquisitions since the Closing Date through the date of the consummation of the Transaction (including in connection with the Transaction)
exceeds $30,000,000. 
  
 Section 3. Conditions to
Effectiveness. This Amendment shall be effective upon satisfaction of the following conditions precedent: 
  
 (a) This Amendment shall have been executed and delivered by the Agents party hereto, the Lenders comprising the Required Lenders and each of the Loan
Parties (and the Required Lenders so executing this Amendment hereby authorize and direct each of the Agents to so execute and deliver this Amendment). 
  

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 (b) The representations and warranties contained herein shall be true and correct in all respects, and,
after giving effect to this Amendment, no Event of Default or Default shall exist on the date hereof. 
  
 (c) The Administrative Agent shall have received final copies of the Transaction Documents in form and substance satisfactory to Administrative Agent.

  
 Section 4. Representations and Warranties of Loan
Parties. 
  
 (a) The execution, delivery and performance
by each Loan Party of this Amendment has been duly authorized by all necessary corporate action and this Amendment is a legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with its terms, except
as the enforcement thereof may be subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and (ii) general principles of equity (regardless of
whether such enforcement is sought in a proceeding in equity or at law); 
  
 (b) Each of the representations and warranties of the Loan Parties contained in the Credit Agreement is true and correct in all material respects on and as of the date hereof as if made on the date hereof, except to
the extent that such representations and warranties expressly relate to an earlier date; and 
  
 (c) Neither the execution, delivery and performance of this Amendment by each Loan Party nor the consummation of the transactions contemplated hereby does or will contravene, result in a breach of, or violate
(i) any provision of such Loan Party’s certificate or articles of incorporation or bylaws, (iii) any law or regulation, or any order or decree of any court or government instrumentality, in each case, applicable to any Loan Party or
its assets, or (iii) any indenture, mortgage, deed of trust, lease, agreement or other instrument to which such Loan Party or any of its Subsidiaries is a party or by which such Loan Party or any of its Subsidiaries or any of their property is
bound, except in any such case to the extent such conflict or breach has been waived by a written waiver document, a copy of which has been delivered to the Agents on or before the date hereof. 
  
 Section 5. Reference to and Effect upon the Credit Agreement. 

  
 (a) Except as specifically set forth above, the Credit
Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed, including, without limitation each Guarantor’s guarantee set forth in Article VII of the Credit Agreement. 
  
 (b) The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of any Agent or any Lender under the Credit Agreement or any other Loan Document, nor constitute an amendment of any provision of the Credit Agreement or any other Loan Document, except as
specifically set forth herein. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be
a reference to the Credit Agreement as amended hereby. 
  

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 (c) Each Loan Party acknowledges and agrees that the execution and delivery by Agents party hereto and
Required Lenders of this Amendment shall not be deemed (i) to create a course of dealing or otherwise obligate any Agent or any Lender to forbear, waive, consent or execute similar amendments under the same or similar circumstances in the
future, or (ii) to amend, relinquish or impair any right of any Agent or any Lender to receive any indemnity or similar payment from any Person or entity as a result of any matter arising from or relating to this Amendment. 
  
 (d) Each Loan Party affirms and acknowledges that this Amendment constitutes
a Loan Document under the Credit Agreement and any reference to the Loan Documents under the Credit Agreement contained in any notice, request, certificate or other document executed concurrently with or after the execution and delivery of this
Amendment shall be deemed to include this Amendment unless the context shall otherwise specify. 
  
 Section 6. Costs and Expenses. As provided in Section 11.03 of the Credit Agreement, Borrower agrees to reimburse Agents
for all reasonable out-of-pocket fees, costs and expenses, including the fees, costs and expenses of counsel or other advisors for advice, assistance, or other representation in connection with this Amendment. 
  
 Section 7. GOVERNING LAW. THIS AMENDMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 
  
 Section 8. Headings. Section headings in this Amendment
are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purposes. 
  
 Section 9. Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed
an original, but all such counterparts shall constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on
whose behalf the signatory is executing) the same with the same force and effect as if such facsimile signature page were an original thereof, and such party shall promptly follow its facsimile signature page by delivery of a hard copy original.

  
 [Signature Pages Follow] 
  

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

			
	HARRY AND DAVID
		
	 By:
	 	/s/ James A. Bell
	 Name: James A. Bell
 Title: Senior Vice President, Finance

  

			
	HARRY & DAVID HOLDINGS, INC.
		
	 By:
	 	/s/ James A. Bell
	 Name: James A. Bell
 Title: Senior Vice President, Finance

  

			
	BEAR CREEK ORCHARDS, INC.
		
	 By:
	 	/s/ James A. Bell
	 Name: James A. Bell
 Title: Senior Vice President, Finance

  

			
	BEAR CREEK OPERATIONS, INC.
		
	 By:
	 	/s/ James A. Bell
	 Name: James A. Bell
 Title: Senior Vice President, Finance

  
 [Signature Page
to Consent and Second Amendment to Credit Agreement] 

			
	 GMAC COMMERCIAL FINANCE LLC, 
 as a Lender and Collateral Agent

		
	 By:
	 	/s/ Joseph Skaferowsky
	 Name: Joseph Skaferowsky
 Title:   Director

  
 [Signature Page
to Consent and Second Amendment to Credit Agreement] 

			
	 UBS AG, STAMFORD BRANCH, as a Lender,
 Administrative Agent and Administrative Collateral
 Agent

		
	 By:
	 	/s/ Richard L. Tavrow
	 Name:
	 	Richard L. Tavrow
	 Title:
	 	Director
		
	 By:
	 	/s/ David B. Julie
	 Name:
	 	David B. Julie
	 Title:
	 	Director
	
	 UBS LOAN FINANCE LLC, as a Lender and
 Swingline Lender

		
	 By:
	 	/s/ Richard L. Tavrow
	 Name:
	 	Richard L. Tavrow
	 Title:
	 	Director
		
	 By:
	 	/s/ David B. Julie
	 Name:
	 	David B. Julie
	 Title:
	 	Director

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 [Signature Page to Consent and Second Amendment to Credit Agreement] 

			
	
	 LENDERS:

	
	 LASALLE BANK NATIONAL ASSOCIATION,
 as a Lender

		
	 By:
	 	/s/ Adam Gelfend
	 Name:
	 	Adam Gelfend
	 Title:
	 	Senior Vice President
	 
	
	 ISRAEL DISCOUNT BANK OF NEW YORK,
 as a Lender

		
	 By:
	 	/s/ Virginia J. Pulverenti
	 Name:
	 	Virginia J. Pulverenti
	 Title:
	 	Senior Vice President
		
	 By:
	 	/s/ Paul P. Neydavood
	 Name:
	 	Paul P. Neydavood
	 Title:
	 	Assistant Vice President

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 [Signature Page to Consent and Second Amendment to Credit Agreement]

 EXHIBIT A 
  

[ASSET PURCHASE AGREEMENT] 
  
  
  

 Exhibit A-1Fourth Amendment to Preferred Stock Purchase Agreement

 Exhibit 10.1 
 FOURTH AMENDMENT TO 
 PREFERRED STOCK PURCHASE AGREEMENT 
 and 
 SECOND AMENDMENT TO CREDIT
AGREEMENT 
 THIS FOURTH AMENDMENT TO PREFERRED STOCK PURCHASE AGREEMENT and SECOND AMENDMENT TO CREDIT AGREEMENT dated as of September
17, 2008, and effective as of September 12, 2008 (the “Amendment”), is entered into by and between ELANDIA INTERNATIONAL INC., a Delaware corporation (the “Company”); and STANFORD
INTERNATIONAL BANK LTD., an Antiguan banking corporation (the “Purchaser”). Capitalized terms used in this Amendment and not otherwise defined in this Amendment have the meanings assigned to them in the PSPA (defined
below). 
 RECITALS 
 WHEREAS, the Company and the Purchaser entered into that certain Preferred Stock Purchase Agreement, dated as of February 20, 2008 (the “Original Agreement”), whereby the Purchaser agreed to
purchase and the Company agreed to sell, for an aggregate purchase price of $40,000,000, (i) 5,925,926 shares of the Company’s Series B Preferred Stock, and (ii) Warrants to purchase an aggregate of 4,158,000 shares of the Common
Stock, subject to adjustment as provided in the Warrants; 
 WHEREAS, the Company and the Purchaser entered into that certain
(i) First Amendment to Preferred Stock Purchase Agreement dated February 28, 2008, (ii) Second Amendment to Preferred Stock Purchase Agreement dated as of April 30, 2008, and (iii) Third Amendment to Preferred Stock Purchase
Agreement and First Amendment to Credit Agreement dated as of September 5, 2008 (the foregoing amendments to Preferred Stock Purchase Agreement together with the Original Agreement, collectively, the “PSPA”);

 WHEREAS, the Company and the Purchaser desire to revise the funding schedule pursuant to which Purchaser shall satisfy its
remaining purchase obligations under Section 1(d) of the PSPA; 
 WHEREAS, the Company (as Borrower) and the Purchaser (as
Lender) entered into that certain (i) Credit Agreement, dated as of July 21, 2008 and (ii) First Amendment to Credit Agreement dated as of September 5, 2008 (the “Credit Agreement”), whereby the
Purchaser committed to loan the Company up to $40,000,000 on the terms and conditions set forth in the Credit Agreement; and 
 WHEREAS, the Company and the Purchaser wish to amend and restate the funding schedule for the Loans (as defined in the Credit Agreement) as provided in this Amendment. 

 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 AGREEMENT 
 1. Amended and Restated Funding Schedule for Loans. Exhibit B to the Credit Agreement is
hereby deleted in its entirety and replaced with Exhibit B attached hereto. 
 2. Funding Schedule for
Section 1(d). The funding schedule to the Third Amendment to PSPA is hereby deleted in its entirety and replaced with the funding schedule attached hereto as Exhibit B (the “Funding Schedule”).

 3. Miscellaneous. 
 (a) Each of the PSPA and the Credit Agreement is reaffirmed and ratified in all respects, except as expressly provided herein. 
 (b) The Company’s representations and warranties contained in the PSPA are true and correct in all respects on and as of the date hereof, as though made on and as of such date, except to the extent that any such representation or
warranty relates solely to an earlier date, in which case such representation or warranty is true and correct in all respects on and as of such earlier date. The Company has performed all covenants and agreements required to be performed pursuant to
the PSPA in all respects on and as of the date hereof and as of the date hereof there exists no violation or default (or any event which with the giving of notice, or lapse of time or both, would result in a violation or become a default) under the
PSPA. 
 (c) In the event of any conflict between the terms or provisions of this Amendment and the PSPA or the Credit Agreement, then this
Amendment shall prevail in all respects. Otherwise, the provisions of the PSPA or Credit Agreement, as applicable, shall remain in full force and effect. 
 (d) The parties shall execute and deliver any other instruments or documents and take any further actions after the execution of this Amendment, which may be reasonably required for the implementation of this
Amendment and the transactions contemplated hereby. 
 (e) The Company shall bear its own costs, including attorney’s fees, incurred in
the negotiation of this Amendment and consummation of the transactions contemplated herein and the corporate proceedings of the Company in contemplation hereof. At the first funding set forth in the Funding Schedule, the Company shall reimburse the
Purchaser for all of the Purchaser’s reasonable out-of-pocket expenses incurred in connection with the negotiation of performance of this Amendment, including without limitation reasonable fees and disbursements of counsel to the Purchaser.

 [Remainder of Page Intentionally Left Blank] 
  

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

  

			
	COMPANY:
	
	ELANDIA INTERNATIONAL INC.
		
	By:	 	 /s/ Pete R. Pizarro

	Name:	 	Pete R. Pizarro
	Title:	 	President & CEO

  

			
	PURCHASER:
	
	STANFORD INTERNATIONAL BANK LTD.
		
	By:	 	 /s/ James M. Davis

		 	James M. Davis
		 	Chief Financial Officer

  

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