Document:

exv10w58

 

Exhibit
10.58

SEVENTH AMENDMENT TO CREDIT AGREEMENT

     This
Seventh Amendment (“Amendment”) is made as of the February 2, 2006 to the Credit
Agreement dated as of March 31, 1998 (as amended, supplemented, restated or otherwise modified and
in effect from time to time, the “Credit Agreement”), by and among JOHN B. SANFILIPPO & SON, INC.,
a Delaware corporation (and successor in interest to Sunshine Nut Co., Inc. and Quantz Acquisition
Co., Inc., “Sanfilippo” or the “Borrower”), and JBS INTERNATIONAL, INC., a Barbados corporation
which has been dissolved prior to the date of this Amendment (“JBS”), the financial institutions
party thereto (collectively “Lenders” and
individually a “Lender”) and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, in its capacity as successor Agent for the Lenders to
U.S. Bancorp Ag Credit, Inc., a Colorado corporation (the “Agent”).

RECITAL

     Except as defined herein, all capitalized terms used in this Amendment shall have
meaning assigned to them in the Credit Agreement.

     Sun
Trust Bank, N.A.(“Sun Trust”) has declined to continue as a Lender under the Credit
Agreement as amended by this Amendment. U.S. Bank and LaSalle Bank National Association
(“LaSalle”) have agreed to continue as Lenders under the Credit Agreement as amended by this
Amendment. Sun Trust will be paid in full and shall have no further obligations under the Credit
Agreement on the date of this Amendment.

     Borrower has requested certain waivers of the terms of the Credit Agreement and has requested
to borrow increased sums under the Credit Agreement, and the Agent and the Lenders have agreed to
such waivers and amendments upon the terms and conditions contained herein.

     NOW, THEREFORE, in consideration of the foregoing and of the terms and conditions contained in
the Credit Agreement and this Amendment, and of any loans or extensions of credit or other
financial accommodations at any time made to or for the benefit of the Borrower by Lenders, the
Borrower, the Agent and the Lenders agree as follows:

     1. The following definitions as set forth in Section 1.1 of the Credit Agreement,
General Definitions, shall be amended to add, delete or modify such definitions as
follows:

“Loan
Commitment” shall mean as to any Lender, such Lender’s Pro Rata
Percentage of $100,000,000 through and including April 30, 2006 and $80,000,000
thereafter as set forth opposite such Lender’s name under the heading “Loan
Commitments” on Exhibit 1A-4, as such amount may be reduced or terminated
from time to time pursuant to Section 4.4 or 11.1, and
“Loan
Commitments” shall mean, collectively, the Loan Commitments for all the
Lenders.

Page 1 of 7

 

     2. The Notes referred to in Subsection (h) of Section 2.1 of the Credit
Agreement, Loans, shall be in the form attached hereto as Exhibit 2A-4.

     3. Payments of principal, interest, non-use fees and letter of credit fees by Borrower
and Equalization Transfers between the Lenders, shall be made on the date of this Amendment:
(i) to cause the payment in full of Sun Trust under the Credit Agreement (including the
payment of all interest, non-use fees and letter of credit fees to said date), (ii) to cause the
payment of interest, non-use fees and letter of credit fees to said date to the U.S. Bank and LaSalle
under the Credit Agreement; and (iii) to cause the Loans to be held by U.S. Bank and LaSalle according
to their respective Pro Rata Percentages as set forth in this Amendment. Borrower acknowledges
that, as a result of payment in full of Sun Trust pursuant to this Amendment, Borrower may
have reimbursement obligations under Section 5.3 of the Credit Agreement. LaSalle
acknowledges that it may hold a greater percentage in existing LIBOR Rate Loans in the amount of its new
Pro Rata Percentage.

     4. In addition to the fees owed by Borrower to the Agent and the Lenders pursuant
to Section 6 of the Credit Agreement, Borrower agrees to pay to the Agent, for
distribution to the Lenders, a fee of $25,000 for the temporary increase of the Loan Commitment as provided for
herein (based on their respective pro rata share of the $20,000,000 temporary increase). Such
fee shall be due upon execution of this Amendment and shall be fully earned on such date.

     5. At December 29, 2005, Borrower failed to obtain the required EBITDA and failed
to maintain the required Leverage Ratio, in violation of Section 9.6 of the Credit
Agreement, Financial Covenants and Ratios, (the “Financial Covenants Violation”).In addition, as
a result of the failure to meet such financial covenants, Borrower is also in default (the “Note
Default”) under the terms of that certain Note Purchase Agreement dated as of December 16, 2004 relating
to those certain 4.67% Senior Notes due December 1, 2014 (the
“Notes”), which default is a
Matured Default in accordance with Subsection (1) of the definition of “Matured Default” as
set forth in Section 1 of the Credit Agreement (the “Cross Default”). The Financial Covenants
Violation is also a Matured Defaut in accordance with Subsection (p) of the definition of
“Matured Default” as set forth in Section 1 of the Credit Agreement. The Lenders hereby
consent to the Financial Covenants Violation and, subject to the proviso below, the Cross
Default, and waive their rights powers and remedies with respect to the Financial Covenants
Violation and, subject to the proviso below, the Cross Default; provided however that it is
acknowledged and agreed that the aforementioned waiver hereunder of the Cross Default shall
immediately cease to be effective upon the acceleration, if any, by the holders of the Notes
as a result of the Note Default, whereupon the Agent and the Lenders shall thereafter be entitled
to exercise all rights and remedies relating to the Cross Default as are provided for or
permitted under the Credit Agreement and applicable law. Notwithstanding the foregoing waiver and
consent, it is expressly understood and agreed that the Lenders shall have the right at all
times hereafter to require strict performance by Borrower of all terms of the Credit Agreement or
any other Financing Agreement, including without limitation, the terms of the aforementioned
Section of the Credit Agreement, that the Lenders do not waive, affect or diminish any right,
power or remedy of the Lenders under the Credit Agreement or any other Financing Agreement

Page 2 of 7

 

except as expressly set forth herein and that except as expressly set forth herein, the Credit
Agreement and each other Financing Agreement shall continue in full force and effect in accordance
with their respective terms.

     6. Exhibits.
Exhibit 1A-3 to the Credit Agreement, Lenders’ Commitments,
shall hereafter be replaced by Exhibit 1A-4; and Exhibit 2A-3 to the Credit
Agreement, Form of Notes, shall hereafter be replaced by Exhibit 2A-4.

     7. The effectiveness of this Amendment is conditioned on the execution and delivery
to Agent of the items listed on Exhibit A attached to this Amendment in form and substance
reasonably acceptable to Agent. 

     8. This Amendment shall be an integral part of the Credit Agreement, as amended,
and all of the terms set forth therein are hereby incorporated in this Amendment by reference,
and all terms of this Amendment are hereby incorporated into said Credit Agreement, as if made
an original part thereof. All of the terms and provisions of the Agreement, as amended, which
are not modified in this Amendment shall remain in full force and effect.

{Signature Page Follows}

Page 3 of 7

 

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	JOHN B. SANFILIPPO & SON, INC., a  
	 	 	 	 	 	 	Delaware corporation
	ATTEST:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ Jeffrey Sanfilippo
	 	 	 	By
	 	/s/ Michael J. Valentine	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Its Exec. Vice President
	 	 	 	 	 	Its CFO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S. BANK NATIONAL ASSOCIATION
	 	 	 	 	 	 	as Agent and as a Lender
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By
	 	/s/ John Ball	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	LASALLE BANK NATIONAL
	 	 	 	 	 	 	ASSOCIATION (f/k/a LaSalle National
	 	 	 	 	 	 	Bank), as a Lender
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By
	 	/s/ Emily Eigel	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its Loan Officer	 	 

{Signature Page to Seventh Amendment to Credit Agreement Dated February 2, 2006}

Page 4 of 7

 

EXHIBIT 1A-4

TO

CREDIT AGREEMENT

Lenders’ Commitments

	 	 	 	 	 	 	 
	Loan	 	Pro Rata	 	Maximum $ Through	 
	Commitments	 	Percentage	 	And Including 4/30/06	 
	U.S. Bank
	 	50.000000%	 	$	50,000,000	 
	LaSalle Bank
	 	50.000000%	 	$	50,000,000	 
	TOTAL:
	 	100%	 	$	100,000,000	 

	 	 	 	 	 	 	 
	Loan	 	Pro Rata	 	Maximum $ After	 
	Commitments	 	Percentage	 	4/30/06	 
	U.S. Bank
	 	50.00000%	 	$	40,000,000	 
	LaSalle Bank
	 	50.00000%	 	$	40,000,000	 
	TOTAL:
	 	100%	 	$	80,000,000	 

	 	 	 	 	 	 	 
	LC	 	Pro Rata	 	 	 
	Commitments	 	Percentage	 	Maximum $	 
	U.S. Bank
	 	50.00000%	 	$	10,000,000	 
	LaSalle Bank
	 	50.00000%	 	$	10,000,000	 
	TOTAL:
	 	100%	 	$	20,000,000	 

Page 5 of 7

 

EXHIBIT 2A-3

TO

CREDIT AGREEMENT

Form of Notes 

Attached

Page 6 of 7

 

Exhibit A to

Seventh Amendment to

Credit Agreement

List of Closing Documents

	 	 	 
	1.

	 	This Seventh Amendment executed by the Borrower and all of the Lenders
	 
	 	 
	2.

	 	Revolving Note in favor of U.S. Bank National Association
	 
	 	 
	3.

	 	Revolving Note in favor of LaSalle Bank National Association

Page 7 of 7exv10w59

 

Exhibit
10.59

AMENDED
AND RESTATED LINE OF CREDIT NOTE

			
	$50,000,000
	 	Denver, Colorado
	 
	 	February 2, 2006

     FOR VALUE RECEIVED, the undersigned JOHN B. SANFILIPPO & SON, INC., a Delaware corporation
(and successor in interest to Sunshine Nut Co., Inc. and Quantz Acquisition Co., Inc.),
(collectively, the “Borrower” whether one or more) promises to pay to the order of U.S. BANK
NATIONAL ASSOCIATION (hereinafter referred to as “Lender”), at such place as U.S. Bank National
Association, as agent for the Lender, may designate, in lawful money of the United States of
America and in immediately available funds, the principal sum of Fifty Million Dollars
($50,000,000) or so much thereof as may be advanced and be outstanding, together with interest on
any and all principal amounts outstanding calculated in accordance with the provisions set forth
below. This Amended and Restated Note (this “Note”) is issued under that certain Credit Agreement
dated as of March 31, 1998 (as amended, supplemented, restated or otherwise modified and in effect
from time to time, the “Credit Agreement”) between Borrower, U.S. Bank National Association, a
national banking association, as agent (the “Agent”), Lender and the other lenders identified
therein (collectively the “Lenders”).

     Capitalized terms used and not defined herein shall have the meanings given to such terms in
the Credit Agreement.

     The outstanding Loans hereunder shall be maintained as Prime Rate Loans, LIBOR Rate Loans, or
Overnight Funds Rate Loans as more fully provided in the Credit Agreement. The Borrower shall have
the right to make prepayments of principal only in accordance with the Credit Agreement.

     Borrower shall pay interest on the unpaid principal amount of each Loan made by the Lender
from the date of such Loan until such principal amount shall be paid in full, at the times and at
the rates per annum set forth in the Credit Agreement.

     The unpaid balance of this obligation at any time shall be the total amounts advanced
hereunder by the Lender, together with accrued and unpaid interest, less the amount of payments
made hereon by or for the Borrower, which balance may be endorsed hereon from time to time by the
Lender.

     In addition to the repayment requirements imposed upon the Borrower under the Credit
Agreement, together with the agreements referred to therein, the principal and interest owing
under this Note shall be due and payable in full on the Maturity Date, without presentment,
demand, protest or further notice (including without limitation, notice of intent to accelerate
and notice of acceleration) of any kind, all of which are expressly waived by the Borrower. Time
is of the essence hereof.

     Interim
payments made by Borrower pursuant to and in accordance with the Credit

 

 

Agreement shall be applied as provided therein.

     Should any Matured Default occur, then all sums of principal and interest outstanding
hereunder may be declared immediately due and payable in accordance with the Credit Agreement,
without presentment, demand or notice of dishonor, all of which are expressly waived, and the
Lender shall have no obligation to make any further Loans pursuant to the Credit Agreement.

     This Note (i) in part, re-evidences and amends and restates in its entirety, that certain Line
of Credit Note dated as of March 7, 2005 in the original principal amount of Fifty Two Million Five
Hundred Thousand Dollars ($52,500,000) made by the Borrower in favor of the Lender (the “Original
Note”) and (ii) in part, evidences new Loans being made by the Lender to the Borrower under and
pursuant to the Credit Agreement. The Borrower hereby acknowledges that the indebtedness evidenced
by the Original Note is a continuing indebtedness of the Borrower and that this Note is being
issued in substitution thereof and not as a release or novation thereof.

     This Note shall be construed in accordance with the laws of the State of Colorado.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	JOHN B. SANFILIPPO & SON, INC., a
	 	 	 	 	 	 	Delaware corporation
	ATTEST:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Jeffrey Sanfilippo
	 	 	 	By	 	/s/ Michael J. Valentine
	 

	 	 
	 	 	 	 	 	 
	 

	 	Its Exec. Vice President
	 	 	 	 	 	Its CFO

- 2 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]