Document:

ex10-19.htm

     

     

     

     

    
 

    Exhibit
10.19

    

    THIRTEENTH AMENDMENT TO
FORBEARANCE AGREEMENT

    

    This
Thirteenth Amendment to Forbearance Agreement (the “Amendment”) is
entered into as of the 1st day of April, 2010 by and among RCLC, Inc. (formerly
known as Ronson Corporation), a New Jersey corporation (“Parent”), RCPC
Liquidating Corp. (formerly known as Ronson Consumer Products Corporation), a
New Jersey corporation (“RCPC”), Ronson
Aviation, Inc., a New Jersey corporation (“RAI”) and RCC Inc.
(formerly known as Ronson Corporation of Canada Ltd.), an Ontario corporation
(“Ronson
Canada”) (RCPC and RAI are collectively and individually referred to as
the “Domestic
Borrower” or “Domestic Borrowers”;
the Domestic Borrower and Ronson Canada are collectively and individually
referred to as the “Borrower” or “Borrowers”, and the
Borrowers, together with Parent are collectively and individually referred to as
the “Obligors”)
and Wells Fargo Bank, National Association (“Lender”), acting
through its Wells Fargo Business Credit operating division.

     

    RECITALS:

     

    Borrowers
and Lender are parties to a certain Credit and Security Agreement dated as of
May 30, 2008 (as amended, modified, supplemented or restated from time to time,
the “Credit
Agreement”), relating to financing by Lender to
Borrowers.  Capitalized terms used but not specifically defined herein
shall have the meanings provided for such terms in the Credit
Agreement.

     

    Certain
Events of Default occurred under the Credit Agreement and, as a result thereof,
Lender and Borrowers entered into that certain Forbearance Agreement dated as of
March 29, 2009 (as amended modified, supplemented or restated from time to time,
the “Forbearance
Agreement”), whereby Lender agreed to forbear from exercising certain of
its rights and remedies available under the Loan Documents as a result of the
Existing Events of Default.

     

    The
Forbearance Agreement expires pursuant to its terms not later than March 31,
2010.

     

    On
February 2, 2010, Parent, RCPC and Ronson Canada consummated a transaction (the
“Zippo Sale”)
pursuant to which RCPC and Ronson Canada sold substantially all of their assets
to Zippo Manufacturing Company and Nosnor, Inc., pursuant to an Asset Purchase
Agreement dated as of October 5, 2010.  The net proceeds of the Zippo
Sale were delivered to Lender in accordance with the terms of that certain
letter agreement by and among Lender and Obligors dated as of February 2, 2010
(the “Feb. 2
Letter”).

     

    Borrowers
have requested that Lender amend the definition of Termination Event to extend
the stated expiration date in the Forbearance Agreement from March 31, 2010 to
April 16, 2010 in order to provide Borrowers with additional time to consummate
the sale of RAI’s assets to Hawthorne TTN Holdings, LLC (“Hawthorne”) pursuant
to that certain Asset Purchase Agreement dated as of May 15, 2009 (as amended,
the “RAI APA”)
and to amend certain terms and conditions of the Credit Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     Lender
has considered Borrowers’ requests and, in an effort to continue working with
Borrowers, hereby agrees to amend the Forbearance Agreement and the Credit
Agreement on the terms and conditions set forth below.

     

    NOW,
THEREFORE, for and in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     

    1.            Amendment to Forbearance
Agreement.  As of the date hereof, Section 2(b) of the
Forbearance Agreement shall be amended and restated in its entirety to read as
follows:

     

    (b)           For
purposes of this Agreement, a “Termination Event”
shall mean the earliest to occur of (i) April 16, 2010 and (ii) any one or more
of the following:

     

    (A)           the
failure of the Obligors to comply with the terms, covenants, agreements and
conditions of this Agreement;

     

    (B)           any
representation or warranty made herein shall be incorrect in any material
respect;

     

    (C)           the
occurrence of any Event of Default under the Credit Agreement, other than (i)
the Existing Events of Default or (ii) breach by Obligors of their obligation
pursuant to (a) Section 6.1(a) of the Credit Agreement to deliver audited year
end annual financial statements for the fiscal year ending December 31, 2008
within 90 days of the end of such fiscal year or (b) Section 6.1(c) of the
Credit Agreement to deliver monthly financial statements to Lender for the
months ending October 31, 2009, November 30, 2009, December 31,
2009,  January 31, 2010, February 28, 2010 and March 31, 2010 within
30 days of the end of such months;

     

    (D)           Obligors
shall fail to employ a CRO (as defined below) throughout the term of this
Agreement;

     

    (E)           in
the Lender’s discretion, it determines that Parent is no longer actively
pursuing a Liquidity Transaction;

     

    (F)           any
Person, other than Lender, shall exercise its rights and remedies against the
Obligors as a result of defaults or events of defaults arising under any
agreement between Obligors and such Person due to cross-defaults arising from
the Existing Events of Default; and

     

    (G)           failure
of the Obligors to provide to the Lender no later than April 9, 2010 proof of
renewal of its property and casualty insurance until no earlier than May 3,
2010.

     

    2.            Amendment to Credit and
Security Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
following definition set forth in Section 1.1 of the Credit Agreement shall be
amended and restated in its entirety to read as follows:

     

    “Accommodation
Overadvance Limit” means $0 from April 9, 2010 through the occurrence of a
Termination Event (as such term is defined in the Forbearance Agreement),
provided, however, upon receipt by the Lender of notice of the closing of the
transaction contemplated by  the RAI APA (the “Closing Notice”), the
Accommodation Overadvance Limit shall mean $1,385,059.30.

     

     
 

     

    3.            Funding of RAI Pending
Closing of the RAI Sale.  Obligors acknowledge and agree that
as a result of the consummation of the Zippo Sale, RCPC and Ronson Canada shall
no longer be permitted to request Advances under the Credit Agreement and any
remaining assets of RCPC and/or Ronson Canada shall no longer be considered in
any borrowing base calculation.  Notwithstanding the foregoing, Lender
and Obligors agree that RAI shall be authorized, pending the closing of the
transaction contemplated by the RAI APA and until the occurrence of a
Termination Event, to request Advances subject to the terms of the Credit
Agreement as modified by this Amendment.  Obligors and Lender further
agree that Lender shall have no obligation to make Advances to RAI (i) after the
occurrence of a Termination Event or (ii) if  Lender, in its
reasonable discretion, believes that the issuance of the EDA Bonds is not
expected to occur by April 16, 2010.

     

    4.            Feb. 2
Letter.  Pursuant to the Feb. 2 Letter, the Lender is currently
holding the remaining portion of the Zippo Proceeds in the amount of
$2,751,952.78 in a custodial account in the name of and owned by the Lender (the
“Custodial
Funds”). Effective as of April 1, 2010, the Lender shall apply the
Custodial Funds to the outstanding obligations of the Obligors, first to fully
repay and satisfy the Accommodation Overadvance and the balance to the Real
Estate Term Advance. Upon receipt of the Closing Notice, the Lender will
immediately advance the full amount of the Accommodation Overadvance and the
amount repaid to the Real Estate Term Advance and shall restore the Custodial
Funds, which shall then be disbursed in accordance with the instructions
provided by the Obligors to the Lender consistent with the payoff letter to be
executed and in accordance with email correspondence from David M. Bass, Esq.,
to the Obligors and Lender dated March 11, 2010, with respect to the payment of
certain legal fees and expenses due and owing by the Obligors to Cole, Schotz,
Meisel, Forman & Leonard, P.A.

     

    5.            Reaffirmation of Forbearance
Fee.  Obligors hereby reaffirm their agreement to pay Lender a
forbearance fee in the amount of Five-Hundred Thousand Dollars ($500,000) in
accordance with the terms and conditions set forth in the Seventh Amendment to
Forbearance Agreement dated as of July 31, 2009.

     

    6.            Sums Secured;
Estoppel.  The Obligors acknowledge and reaffirm that their
obligations to Lender as set forth in and evidenced by the Loan Documents are
due and owing without any defenses, set-offs, recoupments, claims or
counterclaims of any kind as of the date hereof.  To the extent that
any defenses, set-offs, recoupments, claims or counterclaims may exist as of the
date hereof, the Obligors waive and release Lender from the same.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.            No Other Changes.
Except as explicitly amended by this Amendment, all of the terms and conditions
of the Forbearance Agreement shall remain in full force and effect.

     

    8.            References.  All
references in the Forbearance Agreement to “this Agreement” shall be deemed to
refer to the Forbearance Agreement as amended hereby.

     

    9.            No Waiver. Except as
specifically set forth in Paragraph 1 above, the execution of this Amendment
shall not be deemed to be a waiver of any Default or Event of Default under the
Credit Agreement, a waiver of any Termination Event under the Forbearance
Agreement or breach, default or event of default under any Loan Documents or
other document held by Lender, whether or not known to Lender and whether or not
existing on the date of this Amendment.

     

    10.            Waiver and Release of Claims
and Defenses.  The Obligors hereby waive and release all claims
and demands of any nature whatsoever that they now have or may have against
Lender, whether arising under the Loan Documents or by any acts or omissions of
Lender, or any of its directors, officers, employees, affiliates, attorneys or
agents, or otherwise, and whether known or unknown, existing as of the date of
the execution of this Amendment, and further waive and release any and all
defenses of any nature whatsoever to the payment of the Obligations or the
performance of their obligations under Loan Documents.

     

    11.            Reaffirmation of Loan
Documents.  The Obligors hereby agree with, reaffirm and
acknowledge their representations and warranties contained in the Loan
Documents.  Furthermore, the Obligors represent that their
representations and warranties contained in the Loan Documents continue to be
true and in full force and effect.  This agreement, reaffirmation and
acknowledgment is given to Lender by the Obligors without defenses, claims or
counterclaims of any kind.  To the extent that any such defenses,
claims or counterclaims against Lender may exist, the Obligors waive and release
Lender from same.

     

    12.            Ratification and
Reaffirmation of Loan Documents.  The Obligors ratify and
reaffirm all terms, covenants, conditions and agreements contained in the Loan
Documents.

     

    13.            No Preferential
Treatment.  No Obligor has entered into this Amendment to
provide any preferential treatment to Lender or any other
creditor.  No Obligor intends to file for protection or seek relief
under the United States Bankruptcy Code or any similar federal or state law
providing for the relief of debtors.

     

    14.            Legal
Representation.  Each of the parties hereto acknowledge that
they have been represented by independent legal counsel in connection with the
execution of this Amendment, that they are fully aware of the terms and
conditions contained herein, and that they have entered into and executed the
within Amendment as a voluntary action and without coercion or duress of any
kind.

     

    15.            Partial Invalidity; No
Repudiation. If any of the provisions of this Amendment shall contravene
or be held invalid under the laws of any jurisdiction, this Amendment shall be
construed as if not containing such provisions and the rights, remedies,
warranties, representations, covenants, and provisions hereof shall be construed
and enforced accordingly in

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    such
jurisdiction and shall not in any manner affect such provision in any other
jurisdiction, or any other provisions of this Amendment in any
jurisdiction.

     

    16.            Binding
Effect.  This Amendment is binding upon the parties hereto and
their respective heirs, administrators, executors, officers, directors,
representatives and agents.

     

    17.            Governing
Law.  This Amendment shall be governed by the laws of the State
of New York.

     

    18.            WAIVER OF JURY
TRIAL.  EACH OF THE PARTIES HERETO WAIVE THE RIGHT TO A TRIAL
BY JURY, AS TO ANY ACTION WHICH MAY ARISE AS A RESULT OF THE LOAN DOCUMENTS,
THIS AGREEMENT OR ANY DOCUMENT EXECUTED IN CONNECTION HEREWITH.

     

    19.            Counterparts.  This
Amendment and/or any documentation contemplated or required in connection
herewith may be executed in any number of counterparts, each of which shall be
deemed an original and all of which shall be considered one and the same
document.  Delivery of an executed counterpart of a signature page of
this document by facsimile shall be effective as delivery of a manually executed
counterpart of this document.

     

    [Signature
pages follow]

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, do
hereby execute this Amendment the date and year first above
written.

     

    
      	
              RCLC,
      INC. (f/k/a RONSON CORPORATION)

               

               

              By:/s/Joel
      Getzler                                                 
      

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring Officer

               

            
	
              RCPC
      LIQUIDATING CORP. (f/k/a/ RONSON CONSUMER PRODUCTS
      CORPORATION)

               

               

              By:/s/Joel
      Getzler                                                 
      

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring Officer

               

               

            
	
              RONSON
      AVIATION, INC.

               

               

              By:/s/Joel
      Getzler                                                 
      

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring Officer

               

            
	
              RCC
      INC. (f/k/a RONSON CORPORATION OF CANADA LTD.)

               

               

              By:/s/Joel
      Getzler                                                 
      

              Print
      Name: Joel Getzler

              Print
      Title: Chief Restructuring Officer

               

            
	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              WELLS
      FARGO BANK, NATIONAL ASSOCIATION

               

              By:          /s/Peter
      Gannon                             
                           

              Peter Gannon, Vice
      Presidentex10-23.htm

     

     

     

    
 

    Exhibit
10.23

    

    

    FIFTH
AMENDMENT

    TO THE
ASSET PURCHASE AGREEMENT

    

    Dated May
15, 2009

    

    

    among

    

    RCLC,
Inc. (formally known as RONSON CORPORATION),

    a New
Jersey corporation,

    

    and

    

    RONSON
AVIATION, INC.,

    a New
Jersey corporation,

    

    SELLER,

    

    

    HAWTHORNE
TTN HOLDINGS, LLC

    a
Delaware Limited Liability Company,

    

    BUYER.

    

    

    

    

    Sale by
RCLC, Inc. (formally known as Ronson Corporation) of

    Certain  of
the Assets and

    the
Business of its Wholly Owned Subsidiary,

    Ronson
Aviation, Inc. to

    

    

    Hawthorne
TTN Holdings, LLC

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    WHEREAS, RCLC, Inc. (formally known as
RONSON CORPORATION), a New Jersey corporation (“Parent”), and RONSON AVIATION,
INC., a New Jersey Corporation (“Aviation”) (Parent and Aviation hereinafter
referred to together as “Seller”), and Hawthorne TTN Holdings, LLC, a Delaware
limited liability company (“Buyer”) entered into that certain ASSET PURCHASE
AGREEMENT (“APA”) dated May 15, 2009; and

    

    WHEREAS, Seller and Buyer entered into
the First Amendment to the Asset Purchase Agreement on or about October 15, 2009
extending the Closing Date to on or before December 31, 2009; and

    

    WHEREAS, Seller and Buyer entered into
the Second Amendment of the Asset Purchase Agreement extending the Closing date
to March 5, 2010; and

    

    WHEREAS, Seller and Buyer entered into
the Third Amendment of the Asset Purchase Agreement extending the Closing Date
to March 26, 2010; and

    

    WHEREAS, Seller and Buyer entered into
the Fourth Amendment of the Asset Purchase Agreement, which among other things,
extended the Closing Date to March 31, 2010; and

    

    WHEREAS, Sell and Buyer wish to further
extend the closing date to April 14, 2010; and

    

    NOW THEREFORE, the parties hereby agree
as follows:

    

    
      	
               
      

            	
              1.

            	
              Section
      3 of the APA is amended to provide that the Closing Date shall be on or
      before April 14, 2010.

            

    

    

    
      	
               
      

            	
              2.

            	
              Section
      19 of the APA is amended to eliminate the provision that Seller shall
      reimburse Buyer a sum not to exceed $150,000 for its actual accounting,
      environmental and legal fees if Seller terminates the APA pursuant to that
      provision.

            

    

    

    IN WITNESS WHEREOF, the parties hereto
have duly executed this Agreement the day and year first above
written.

    

    
      	 
      	 
      	
              RCLC,
      Inc. (formally known as RONSON

            
	 
      	 
      	
              CORPORATION)

            
	 
      	 
      	 
      
	 
      	
              BY:

            	
               /s/ Joel Getzler

            
	 
      	 
      	
              Joel
      Getzler

            
	 
      	 
      	
              Chief
      Reconstruction Officer

            

    

    Dated:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	 
      	
              RONSON
      AVIATION, INC.

            
	 
      	 
      	 
      
	 
      	
              BY:

            	
              /s/ Joel Getzler

            
	 
      	 
      	
              Joel
      Getzler

            
	 
      	 
      	
              Chief
      Reconstruction Officer

            
	
              Dated:

            	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              HAWTHORNE
      TTN HOLDINGS, LLC

            
	 
      	 
      	 
      
	 
      	
              BY:

            	
              /s/ Steven Levesque

            
	 
      	 
      	
              Steven
      Levesque

            
	 
      	 
      	
              President,
      Hawthorne Corp.,

            
	 
      	 
      	
              Managing
      Member

            
	
              Dated:

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