Document:

amendment_no1to2012ralcor.htm - Generated by SEC Publisher for SEC Filing

EXHIBIT 10.2

 

EXECUTION VERSION

 

AMENDMENT NO. 1 TO CREDIT AGREEMENT AND WAIVER

This Amendment No. 1 to Credit Agreement and Waiver (this “Amendment”) is entered into as of November 27, 2012 by and among Ralcorp Holdings, Inc., a Missouri corporation (the “Borrower”), JPMorgan Chase Bank, N.A., individually and as administrative agent (the “Administrative Agent”), and the other financial institutions signatory hereto.

RECITALS

A.        The Borrower, the Administrative Agent and the financial institutions party thereto (the “Lenders”) are party to that certain Credit Agreement dated as of May 1, 2012 (the “Credit Agreement”).  Unless otherwise specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them by the Credit Agreement.

B.        The Borrower, the Administrative Agent and the undersigned Lenders wish to amend the Credit Agreement and grant certain waivers on the terms and conditions set forth below.

Now, therefore, in consideration of the mutual execution hereof and other good and valuable consideration, the parties hereto agree as follows:

1.         Amendment to Credit Agreement.  As and to the extent set forth in Section 4 below, the Credit Agreement shall be amended as follows:

(a)        The definition of “EBIT” is amended in its entirety to read as follows:

“EBIT” means, for any applicable computation period, the Borrower’s and Subsidiaries’ Net Income on a consolidated basis, plus  (a) consolidated federal, state, local and foreign income and franchise taxes  paid or accrued during such period, (b) Consolidated Interest Expense for such period, (c) one-time cash losses occurring prior to December 31, 2012 on account of (i) organic inventory losses in an aggregate amount not to exceed $2,800,000, (ii) merger and integration costs in connection with the acquisition of Sara Lee Corporation’s frozen dough business, the acquisition of Pastificio Annoni S.p.A., the acquisition of Petri Baking Products, Inc., and the acquisition of Gelit S.r.l.in an aggregate amount not to exceed $8,800,000, (iii) financial restatement costs in an aggregate amount not to exceed $1,500,000, (iv) provision for legal settlements related to labor claims in the State of California and the shutdown of the Bloomfield Bakers plant located in Los Alamitos, California in an aggregate amount not to exceed $6,200,000, (v) restructuring costs in an aggregate amount not to exceed $25,000,000, (vi) severance charges and asset write-downs associated with the shutdown of the Bloomfield Bakers plant located in Los Alamitos, California, the Poteau plant located in Poteau, Oklahoma, the administrative office in Kansas City, Missouri, and the Western Waffles plant located in Delta, British Columbia, Canada, in an aggregate amount not to exceed $18,300,000, 

and (vii) retained share disposition costs in connection with the disposition of the Retained Shares following the Post Spin-Off in an aggregate amount not to exceed $8,400,000, and (viii) one-time non-cash losses occurring prior to December 31, 2012 on account of  accelerated depreciation and amortization in an aggregate amount not to exceed $6,200,000, minus  (or plus) equity earnings (or losses) during such period attributable to equity investments by the Borrower and its Subsidiaries in the capital stock or other equity interests in any Person which is not a Subsidiary.

 

 

  

 (b)       Section 6.17(b) is amended in its entirety to read as follows: 

(b)        Interest Expense Coverage Ratio.  As of the end of each Fiscal Quarter, maintain an Interest Expense Coverage Ratio of not less than 2.75:1.00.

2.         Waiver.  As and to the extent set forth in Section 4 below, the Administrative Agent and the undersigned Lenders hereby waive (a) any breach of Section 6.17(b) of the Credit Agreement arising solely out of the Borrower’s failure to maintain an Interest Expense Coverage Ratio of not less than 3.00:1.00 as of the end of the Fiscal Quarter ending September 30, 2012, and (b) any Defaults or Events of Default under the Credit Agreement or any other Loan Document relating solely to such breach.

3.         Representations and Warranties of the Borrower.  The Borrower represents and warrants that:

(a)        The execution and delivery by the Borrower of this Amendment and the performance of its obligations hereunder have been duly authorized by proper corporate proceedings and this Amendment constitutes a legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, except as the enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity;

(b)        After giving effect to this Amendment, each of the representations and warranties contained in the Credit Agreement (treating this Amendment as a Loan Document for purposes thereof) is true and correct in all material respects on and as of the date hereof as if made on the date hereof; and

(c)        After giving effect to this Amendment, no Default has occurred and is continuing.

4.         Effectiveness.   

(a)        This Amendment (other than Section 1(a) hereof) shall become effective upon the execution and delivery hereof by the Borrower, the Administrative Agent and the Required Lenders (without respect to whether it has been executed and delivered by all the Lenders); provided that Section 1(b) and Section 2 hereof shall not become effective until the date when the following additional conditions have also been satisfied:

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            (i)         Each
of the Guarantors shall have executed and delivered to the Administrative Agent
a Reaffirmation of Guaranty in the form of Exhibit A hereto.

            (ii)        The
Borrower shall have paid (A) to the Administrative Agent a fee (for the benefit
of the Lenders signatory hereto) in the amount of $7,500 per each Lender
signatory hereto and (B) to the Administrative Agent for its own account any
other separately agreed fees relating hereto, which fees shall be deemed fully
earned and non-refundable upon the effectiveness of this Amendment (other than
Section 1(a) hereof).

            (iii)       The
Borrower shall have provided such other corporate and other certificates,
opinions, documents, instruments and agreements as the Administrative Agent may
reasonably request.

                                    (b)        Section
1(a) hereof shall become effective upon the satisfaction of the conditions set
forth in Section 4(a) hereof and the delivery to the Administrative Agent of
amendments to the Borrower’s private placement Indebtedness implementing
adjustments thereto consistent with the adjustments contemplated by Section
1(a) hereof, in form and substance satisfactory to the Administrative Agent.

5.         Reference to and Effect Upon
the Credit Agreement. 

(a)        Except
as specifically amended above, the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed. 

(b)        The
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Administrative Agent or any Lender
under the Credit Agreement or any Loan Document, nor constitute a waiver of any
provision of the Credit Agreement or any 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.  

6.         Costs and Expenses.   The
Borrower hereby affirms its obligation under Section 9.03 of the Credit
Agreement to reimburse the Administrative Agent for all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its affiliates,
including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent, in connection with the preparation and administration of
this Amendment.

7.         Governing
Law.  This Agreement shall be construed in accordance with and governed by
the law of the State of New York.

8.         Headings. 
Section headings used herein are for convenience of reference only, are not
part of this Amendment and shall not affect the construction of, or be taken
into consideration in interpreting, this Amendment.

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9.         Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed signature page of this Amendment by facsimile transmission or be electronic mail shall be effective as delivery of manually executed counterpart hereof.

[signature pages follow]

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

	

   RALCORP HOLDINGS, INC.
	

   
	

   JPMORGAN CHASE BANK, N.A.,

	

    
	

   
	

   individually and as Administrative Agent

	

    
	

   
	

    
	

    

	

   By:/s/ Scott Monette                             
	

   
	

   By:
	

   /s/ Brendan Korb 
	

    

	

    
	

   
	

    
	

    

	

   Name:
	

   Scott Monette
	

   
	

   Name: 
	

   Brendan Korb
	

    

	

    
	

    

	

   Title:
	

   Corporate Vice President

   and Chief Financial Officer
	

   
	

   Title: 
	

   Vice President
	

    

	

    
	

    

	 	 		 	 	 	 

 

 

 

 

 

  

SUNTRUST BANK

                                                                                    By: /s/ Tesha Winslow

                                                                                    Name:  Tesha Winslow

                                                                                    Title:    Vice President

 

[Signature Page to Amendment No. 1]

 

  

WELLS FARGO BANK, NATIONAL ASSOCIATION

                                                                                    By: /s/ Daniel R. Van Aken                            

                                                                                    Name:  Daniel R. Van Aken                            

                                                                                    Title:     Director                                                   

[Signature Page to Amendment No. 1]

 

  

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

                                                                                    By: /s/ Thomas Danielson                               

                                                                                    Name:  Thomas Danielson                               

                                                                                    Title:     Authorized Signatory                            

[Signature Page to Amendment No. 1]

 

  

AGFIRST FARM CREDIT BANK

                                                                                    By: /s/ Steven J O’Shea                                  

                                                                                    Name:  Steven J O’Shea                                  

                                                                                    Title:     Vice President                                       

[Signature Page to Amendment No. 1]

 

  

COBANK

                                                                                    By: /s/ Hal Nelson                                           

                                                                                    Name:  Hal Nelson                                           

                                                                                    Title:     Vice President                                       

[Signature Page to Amendment No. 1]

 

  

CREDIT SUISSE AG, Cayman Islands Branch

                                                                                    By: /s/ Ari Bruger                                            

                                                                                    Name:  Ari Bruger                                          

                                                                                    Title:     Vice President                                    

 

                                                                                    By: /s/ Alex Verdone                                      

                                                                                    Name:  Alex Verdone                                     

                                                                                    Title:     Associate                                          

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Amendment No. 1]

 

  

 

 

BANK OF AMERICA, N.A.

                                                                                    By: /s/ David L. Catherall                               

                                                                                    Name:  David L. Catherall                              

                                                                                    Title:     Director                                            

[Signature Page to Amendment No. 1]

 

  

PNC BANK, NATIONAL ASSOCIATION

                                                                                    By: /s/ David Bentzinger                                

                                                                                    Name:  David Bentzinger                               

                                                                                    Title:     SVP                                                

[Signature Page to Amendment No. 1]

 

  

BANK OF THE WEST

                                                                                    By: /s/ Roger Lumley                                      

                                                                                    Name:  Roger Lumley                                     

                                                                                    Title:     Senior Vice President                         

[Signature Page to Amendment No. 1]

 

  

US BANK, NATIONAL ASSOCIATION

                                                                                    By: /s/ Patrick Engel                                       

                                                                                    Name:  Patrick Engel                                     

                                                                                    Title:     Vice President                                  

[Signature Page to Amendment No. 1]

 

  

BMO BANK OF MONTREAL

                                                                                    By: /s/ Barkin Sayiner                                     

                                                                                    Name:  Barkin Sayiner                                   

                                                                                    Title:     Director                                             

[Signature Page to Amendment No. 1]

 

  

FARM CREDIT BANK OF TEXAS

                                                                                    By: /s/ Luis M. H. Requejo                             

                                                                                    Name:  Luis M. H. Requejo                           

                                                                                    Title:     Director Capital Markets                    

[Signature Page to Amendment No. 1]

 

  

GREENSTONE FARM CREDIT SERVICES, ACA/FLCA

                                                                                    By: /s/ Alfred S. Compton, Jr.                        

                                                                                    Name:  Alfred S. Compton, Jr.                       

                                                                                    Title:     SVP/Managing Director                    

[Signature Page to Amendment No. 1]

 

  

COMMERCE BANK

                                                                                    By: /s/ Anthony Clarkson                               

                                                                                    Name:  Anthony Clarkson                              

                                                                                    Title:     Senior Relationship Manager             

[Signature Page to Amendment No. 1]

 

  

FCS FINANCIAL, PCA

                                                                                    By: /s/ Laura Roessler                                     

                                                                                    Name:  Laura Roessler                                    

                                                                                    Title:     Senior Lending Officer                       

 

[Signature Page to Amendment No. 1]

 

 

REAFFIRMATION OF GUARANTY

Each of the undersigned (a) acknowledges receipt of a copy of Amendment No. 1 to Credit Agreement and Waiver (the “Amendment”) dated as of the date hereof, (b) consents to such amendment and each of the transactions referenced therein and (c) hereby reaffirms its obligations under (i) the Subsidiary Guaranty dated as of May 1, 2012 in favor of JPMorgan Chase Bank, N.A., as Administrative Agent, the Collateral Agent and the Lenders (as defined in the Amendment), as supplemented and (ii) to the extent it is a party thereto, the Pledge Agreement dated as of July 18, 2008 in favor of JPMorgan Chase Bank, N.A. as Collateral Agent. 

Dated as of November 27, 2012

 

	

   BREMNER FOOD GROUP, INC.

	

   LINETTE QUALITY CHOCOLATES, INC. 

	

   RH FINANCIAL CORPORATION

	

   THE CARRIAGE HOUSE COMPANIES, INC.

	

   RALCORP FROZEN BAKERY PRODUCTS, INC.

	

   MEDALLION FOODS, INC.

	

   COTTAGE BAKERY, INC.

	

   LOVIN OVEN, LLC

	

   NUTCRACKER BRANDS, INC.

	

   AMERICAN ITALIAN PASTA COMPANY

    

	

     By:
	

   /s/ Scott Monette                                                

    

	

     Name:
	

   Scott Monette

    

	

     Title:
	

   

   Treasurer of each of the above entities

	

     
	

   on behalf of each of the above entitiesltiretentionawardletterform.htm - Generated by SEC Publisher for SEC Filing

     

Exhibit 10.3

November 27, 2012

Re:  Retention Bonus Award

Dear [_______]:

As you know, Ralcorp Holdings, Inc. (the “Company”) has entered into a merger agreement (the “Merger Agreement”) with ConAgra Foods Inc. (“ConAgra”).  We understand that the pending merger (the “Merger”) may create uncertainty for highly valued employees such as yourself.  In order to encourage you to remain in the employ of the Company through and following the Merger, and to provide an additional incentive for you to promote the success of the business of the Company, the Company has provided you with this agreement (this “Agreement”), which provides for a retention bonus in the aggregate amount set forth on Exhibit A (the “Retention Bonus”) according to the terms and conditions set forth in this Agreement.  As set out in more detail below, the Retention Bonus shall be paid in three equal installments subject to your continued employment with the Company through the closing of the Merger or another Change in Control, six months following the closing of the Merger or other Change in Control, and one year following the closing of the Merger or other Change in Control, subject to the exceptions set forth below).  Capitalized terms not otherwise defined in this Agreement are defined in Exhibit B to this Agreement.  If the Merger or another Change in Control does not occur within nine months after the date of the Merger Agreement, this Agreement shall have no force or effect and shall be null and void.

You shall be entitled to one-third (1/3) of the Retention Bonus upon a Change in Control, one-third (1/3) of the Retention Bonus on the day that is six months after the Change in Control, and one-third (1/3) of the Retention Bonus on the day that is one year after the Change in Control, in each case subject to your continued employment through the applicable payment date.  Notwithstanding the foregoing, if your employment with the Company is terminated at any time without Cause or, upon or after a Change in Control, you resign for Good Reason, prior to payment of any portion of the Retention Bonus, you shall, subject to your signing and delivering to the Company and not revoking a Release no later than 30 days after your termination, be entitled to receive any unpaid installments of the Retention Bonus (i) in the case of a termination without Cause prior to a Change in Control, on the later of the date of such Change in Control or the 30th day following your termination of employment, and (ii) in the case of a termination without Cause or a resignation for Good Reason in each case upon or after a Change in Control, on the 30th day following your termination of employment.

The Company reserves the right to terminate your employment at any time with Cause or without Cause, subject to the terms of any other written employment, consulting or similar agreement between you and the Company, and subject to the terms of any severance plan or arrangement then in effect.  You agree to keep the existence and terms and conditions of this Agreement confidential.

Non-Exclusivity of Rights.  Nothing in this Agreement shall prevent or limit your continuing or future participation in any benefit, bonus, incentive or other plan, program, arrangement or policy provided by the Company for which you and/or your dependents may quali-

 

 

  

 

fy, including without limitation any Change in Control or other severance plan in which you are entitled to participate.  Amounts that are vested benefits or that you and/or your family are otherwise entitled to receive under any plan, program, arrangement, agreement or policy of the Company or any of its Affiliates shall be payable in accordance with such plan, program, arrangement, agreement or policy.  

No Set-Off; No Duty to Mitigate.  The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company or its Affiliates may have against you or others.  In no event shall you be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to you under any of the provisions of this Agreement.

Assumption.  This letter shall be binding upon any successor of the Company or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated under this Agreement if no succession had taken place.  In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by this Agreement, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s obligations under this Agreement, in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.  The term “Company,” as used in this Agreement, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by this Agreement.

Code Section 409A.  This Agreement is intended to comply with Section 409A of the Code (“Section 409A”) or an exemption thereto, and, to the extent necessary in order to avoid the imposition of penalty taxes on you under Section 409A, payments may be made under this Agreement only upon an event and in a manner permitted by Section 409A.  Any payments that qualify for the “short-term deferral” exception or another exception under Section 409A shall be paid under the applicable exception.  Notwithstanding anything herein to the contrary, if you are a “specified employee” within the meaning of Section 409A, no portion of your Retention Bonus shall, to the extent necessary to avoid the imposition of penalty taxes on you under Section 409A, be paid on account of a “separation from service,” as defined by Section 409A, before the earlier of: (i) the date that is six months following the date of your separation from service, or (ii) the date of your death.  Amounts that, absent the immediately preceding sentence, would have been paid during the six-month delay will be paid on the first business day following such delay.  For purposes of section 409A, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.  In no event may you, directly or indirectly, designate the calendar year of a payment.  

Miscellaneous.  The terms of this Agreement shall be interpreted and enforced in accordance with the laws of the State of Missouri, without regard to the conflict of laws rules thereof or of any other jurisdiction.  If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of the Agreement not held so invalid, and each such other provision shall to the full extent consistent with law continue in full force and effect.  All payments hereunder are subject to withholding for applicable income and payroll 

taxes or otherwise as required by law.  This is the sole and exclusive Agreement between the parties hereto concerning the matters contained herein and this Agreement may not be modified or revised, except in writing between the parties hereto.

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Ralcorp Holdings, Inc.

By:                                                                               
Title:                                                                             

Accepted and Acknowledged:

________________________

Dated:                                      

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EXHIBIT A

Aggregate Amount of Retention Bonus

$[_______]

 

 

  

EXHIBIT B

 

The following terms shall have the meaning set forth below when used in the attached letter Agreement:

“Affiliate”  means any company controlled by, controlling or under common control with the Company.

“Cause” means (i) your conviction of, or plea of guilty or nolo contendere to, a felony (other than a traffic-related felony), (ii) your gross negligence or willful misconduct having a material adverse impact on the Company, or (iii) your willful refusal to attempt to perform your job duties (other than due to Disability or an approved leave) after receipt of written notice from the Company. 

“Change in Control” means the occurrence of any of the following events: 

            (i) the acquisition by any person, entity or “group” within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of (A) 50% or more of the aggregate voting power of the then-outstanding shares of common stock of the Company, other than acquisitions by the Company or any of its subsidiaries or any employee benefit plan of the Company (or any trust created to hold or invest in issues thereof) or any entity holding common stock for or pursuant to the terms of any such plan, or (B) all, or substantially all, of the assets of the Company or its subsidiaries taken as a whole; or 

            (ii) individuals who shall qualify as “Continuing Directors” (as defined below) shall have ceased for any reason to constitute at least a majority of the Board.  For this purpose, “Continuing Director” means any member of the Board, as of February 1, 1997 while such person is a member of the Board, and any other director, while such other director is a member of the Board, who is recommended or elected to succeed the Continuing Director by at least two-thirds (2/3) of the Continuing Directors then in office.  Notwithstanding anything to the contrary in this Agreement, to the extent necessary to avoid the imposition of penalty taxes on you under Section 409A, an event shall not be a Change in Control if it is not a “change in control event” as that term is used in Section 409A.

“Disability” means your physical or mental injury which has prevented you from performing your duties (as they existed immediately prior to the illness or injury) on a full-time basis for one hundred eighty (180) consecutive days.

“Good Reason” means (i) if you are a party to an Amended and Restated Management Continuity Agreement with the Company, as amended from to time (an “MCA”), the occurrence of an event, circumstance or condition described in clause (b) of the definition of “Involuntary Termination” in the MCA, or (ii) if you are not party to an MCA but are a participant in the Ralcorp Holdings, Inc. Severance Plan for Exempt Administrative Employees Eligible for the Ralcorp 

Holdings, Inc. Management Bonus Program, as amended from to time (the “Severance Plan”), “Good Reason” as defined, and according to the procedures described, in the Severance Plan; provided that the event, circumstance or condition triggering “Good Reason” must occur upon or after a Change in Control, or (iii) if you are not party to an MCA or a participant in the Severance Plan, the occurrence of any of the following upon or after a Change in Control, without your prior written consent:  (A) the Company’s requiring you to be based at any location other than the location at which you were based immediately prior to the Change in Control or within 50 miles of such location, or (B) a reduction in your annual base salary or wages in effect immediately prior to the Change in Control; provided, however, that in the case of clauses (i) and (iii), if applicable, in order to invoke a termination for Good Reason, (x) you shall provide written notice to the Company of the existence of one or more of the events, circumstances or conditions described in clauses (i) or (iii), as applicable, within 90 days following the date you have knowledge of such events, circumstances or conditions, and the Company shall have 30 days following receipt of such written notice during which it may remedy the condition (the “Cure Period”), and (y) in the event that the Company fails to remedy any event, circumstance or condition constituting Good Reason during the Cure Period, you must terminate employment, if at all, within 120 days following the end of the Cure Period in order to terminate employment for Good Reason. 

 

 

  

 

“Release” means a written release of employment-related claims against the Company and each of its Affiliates, employees, officers and directors in the case of a termination prior to a Change in Control, and against the Company, ConAgra and each of their respective Affiliates, employees, officers and directors in the case of a termination upon or after a Change in Control, in each case in a form that shall be supplied to you by the Company not later than the date of your termination of employment by the Company without Cause or, if upon or following a Change in Control, your resignation for Good Reason.  The Release will include a release of age-related claims and, therefore, you will have no less than 21 days to consider, sign and deliver it to the Company and, once you have signed and delivered it to the Company, you will have seven days thereafter to revoke it.

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