Document:

exv10w1

 

EXHIBIT 10.1

AMENDMENT NO. 2 TO CREDIT AGREEMENT

     This Amendment No. 2 to Credit Agreement (this “Amendment”) dated as of August 30, 2007, is
made by and among TREEHOUSE FOODS, INC., a Delaware corporation (the “Borrower”), BAY VALLEY FOODS,
LLC, a Delaware limited liability company (the “Guarantor”), BANK OF AMERICA, N.A., a national
banking association organized and existing under the laws of the United States (“Bank of America”),
in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement
described below) (in such capacity, the “Administrative Agent”), and each of the Lenders signatory
hereto.

W I T N E S S E T H:

     WHEREAS, the Borrower, the Administrative Agent, Bank of America, as Swing Line Lender and L/C
Issuer and the Lenders have entered into that certain Credit Agreement dated as of June 27, 2005
(as amended by that certain Amendment No. 1 to Credit Agreement and Joinder Agreement dated as of
August 31, 2006, the “Credit Agreement”; capitalized terms used in this Amendment not otherwise
defined herein shall have the respective meanings given thereto in the Credit Agreement), pursuant
to which the Lenders have made available to the Borrower a revolving credit facility with letter of
credit and swing line subfacilities; and

     WHEREAS, the Guarantor has entered into the Guaranty pursuant to which it has guaranteed the
payment and performance of the obligations of the Borrower under the Credit Agreement and the other
Loan Documents; and

     WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that it desires to
amend certain provisions of the Credit Agreement to, among other things, (i) amend the Consolidated
Interest Coverage Ratio, and (ii) amend the Available Liquidity requirement in Section
7.07, in each case as more particularly set forth below, and the Administrative Agent, the
Required Lenders are willing to effect such amendment on the terms and conditions contained in this
Amendment;

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1. Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended as follows:

	 	(a)	 	Clause (iii) of Section 7.07 is amended by deleting “$50,000,000” and
inserting “$25,000,000” in lieu thereof.
	 
	 	(b)	 	Section 7.12(a) is deleted in its entirety and the following is
inserted in lieu thereof:

     (a) Consolidated Interest Coverage Ratio. Permit the Consolidated
Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to be
less than 2.50 to 1.00.

 

 

     2. Effectiveness; Conditions Precedent. The effectiveness of this Amendment and the
amendments to the Credit Agreement herein provided are subject to the satisfaction of the following
conditions precedent:

     (a) the Administrative Agent shall have received each of the following documents or
instruments in form and substance reasonably acceptable to the Administrative Agent:

     (i) counterparts of this Amendment, duly executed by the Borrower, the
Administrative Agent, the Guarantor, each of the Required Lenders; and

     (ii) such other documents, instruments, opinions, certifications, undertakings,
further assurances and other matters as the Administrative Agent, the L/C Issuer or
any Lender shall reasonably request;

     (b) the Borrower shall have paid the fees in the amounts and at the times specified in
the letter agreement, dated as of July 30, 2007, among the Borrower, the Administrative
Agent and BAS (the “Amendment Fee Letter”); and

     (c) unless waived by the Administrative Agent, all fees and expenses payable to the
Administrative Agent and the Lenders (including the fees and expenses of counsel to the
Administrative Agent to the extent invoiced prior to the date hereof) estimated to date
shall have been paid in full (without prejudice to final settling of accounts for such fees
and expenses).

     3. Consent of the Guarantor. The Guarantor hereby consents, acknowledges and agrees
to the amendments set forth herein and hereby confirms and ratifies in all respects the Guaranty
(including without limitation the continuation of the Guarantor’s payment and performance
obligations thereunder upon and after the effectiveness of this Amendment and the amendments
contemplated hereby) and the enforceability of the Guaranty against the Guarantor in accordance
with its terms.

     4. Representations and Warranties. In order to induce the Administrative Agent and
the Required Lenders to enter into this Amendment, the Borrower represents and warrants to the
Administrative Agent and the Lenders as follows:

     (a) Before and after giving effect to this Amendment, (A) the representations and
warranties contained in Article V and the other Loan Documents are true and correct
on and as of the Amendment Effective Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are true and
correct as of such earlier date, and except that the representations and warranties
contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall
be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Credit Agreement, and (B) no Default exists.

     (b) Since the date of the most recent financial reports of the Borrower delivered
pursuant to Section 6.01(a) of the Credit Agreement, there has been no event or

 

 

circumstance, either individually or in the aggregate, that has had or would reasonably
be expected to have a Material Adverse Effect;

     (c) The Guarantor is the only Person that is required to be a party to the Guaranty
pursuant to the terms of the Credit Agreement; and

     (d) This Amendment has been duly authorized, executed and delivered by the Borrower and
the Guarantor and constitutes a legal, valid and binding obligation of such parties, except
as may be limited by general principles of equity or by the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’
rights generally.

     5. Entire Agreement. This Amendment, together with the Amendment Fee Letter and the
Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and
agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior
negotiations and agreements among the parties relating to such subject matter. No promise,
condition, representation or warranty, express or implied, not set forth in the Relevant Documents
shall bind any party hereto, and no such party has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except as otherwise
expressly stated in the Relevant Documents, no representations, warranties or commitments, express
or implied, have been made by any party to the other in relation to the subject matter hereof or
thereof. None of the terms or conditions of this Amendment may be changed, modified, waived or
canceled orally or otherwise, except in writing and in accordance with Section 10.01 of the
Credit Agreement.

     6. Full Force and Effect of Agreement. Except as hereby specifically amended,
modified or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed
and ratified in all respects and shall be and remain in full force and effect according to their
respective terms.

     7. Counterparts. This Amendment may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all
of which shall together constitute one and the same instrument. Delivery of an executed
counterpart of a signature page of this Amendment by telecopy shall be effective as a manually
executed counterpart of this Amendment.

     8. Governing Law. This Amendment shall in all respects be governed by, and construed
in accordance with, the laws of the State of New York applicable to contracts executed and to be
performed entirely within such State, and shall be further subject to the provisions of
Sections 10.14 and 10.15 of the Credit Agreement.

     9. Enforceability. Should any one or more of the provisions of this Amendment be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

     10. References. All references in any of the Loan Documents to the “Credit Agreement”
shall mean the Credit Agreement, as amended hereby.

 

 

     11. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the Borrower, the Administrative Agent, the Guarantor, the Lenders and their respective
successors, legal representatives, and assignees to the extent such assignees are permitted
assignees as provided in Section 10.06 of the Credit Agreement.

[Signature pages follow.]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made, executed and
delivered by their duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	TREEHOUSE FOODS, INC.

 	 
	 	By:  	/s/ DENNIS F. RIORDAN
 	 
	 	 	Name:  	DENNIS F. RIORDAN 	 
	 	 	Title:  	SENIOR VICE PRESIDENT AND

CHIEF FINANCIAL OFFICER 	 
	 
	 	GUARANTOR:

BAY VALLEY FOODS, LLC

 	 
	 	By:  	/s/ DENNIS F. RIORDAN
 	 
	 	 	Name:  	DENNIS F. RIORDAN 	 
	 	 	Title:  	SENIOR VICE PRESIDENT AND

CHIEF FINANCIAL OFFICER 	 
	 
	 	ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as Administrative Agent

 	 
	 	By:  	/s/ JOAN MOK
 	 
	 	 	Name:  	JOAN MOK 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 
	 	BANK OF AMERICA, N.A., as a Lender, L/C

Issuer and Swing Line Lender

 	 
	 	By:  	/s/ DAVID L. CATHERALL
 	 
	 	 	Name:  	DAVID L. CATHERALL 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 
	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ JASON A. RASTOVSKI
 	 
	 	 	Name:  	JASON A. RASTOVSKI 	 
	 	 	Title:  	VICE PRESIDENT 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ HUGH E. BROWN
 	 
	 	 	Name:  	HUGH E. BROWN 	 
	 	 	Title:  	DIRECTOR 	 
	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ JORGE A. GONZALEZ
 	 
	 	 	Name:  	JORGE A. GONZALEZ 	 
	 	 	Title:  	MANAGING DIRECTOR 	 
	 
	 	COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
“RABOBANK NEDERLAND”, NEW YORK BRANCH

 	 
	 	By:  	/s/ PETER DUNCAN
 	 
	 	 	Name:  	PETER DUNCAN 	 
	 	 	Title:  	EXECUTIVE DIRECTOR 	 
	 
	 	By:  	/s/ REBECCA MORROW
 	 
	 	 	Name:  	REBECCA MORROW 	 
	 	 	Title:  	EXECUTIVE DIRECTOR 	 
	 
	 	LASALLE BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ MEG MARION
 	 
	 	 	Name:  	MEG MARION 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 
	 
	 	FARM CREDIT SERVICES OF AMERICA, PCA

 	 
	 	By:  	/s/ STEVEN L. MOORE
 	 
	 	 	Name:  	STEVEN L. MOORE 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 
	 	AGFIRST FARM CREDIT BANK

 	 
	 	By:  	/s/ BRUCE B. FORTNER
 	 
	 	 	Name:  	BRUCE B. FORTNER 	 
	 	 	Title:  	VICE PRESIDENT 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	COBANK, ACB

 	 
	 	By:  	/s/ PETER C. LITTLE
 	 
	 	 	Name:  	PETER C. LITTLE 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 
	 	U.S. AGBANK, FCB

 	 
	 	By:  	/s/ PATRICK ZEKA
 	 
	 	 	Name:  	PATRICK ZEKA 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 
	 	NORTHWEST FARM CREDIT SERVICES, PCA

 	 
	 	By:  	/s/ JIM D. ALLEN
 	 
	 	 	Name:  	JIM D. ALLEN 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 
	 
	 	FARM CREDIT BANK OF TEXAS

 	 
	 	By:  	
/s/ ERIC J. PAUL
 	 
	 	 	Name:  	ERIC J. PAUL 	 
	 	 	Title:  	MANAGING DIRECTOR 	 
	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By:  	/s/ JOHN E. BURDA
 	 
	 	 	Name:  	JOHN E. BURDA 	 
	 	 	Title:  	VICE PRESIDENT 	 
	 
	 	BMO CAPITAL MARKETS FINANCING, INC.

 	 
	 	By:  	/s/ BETZAIDA ERDELYI
 	 
	 	 	Name:  	BETZAIDA ERDELYI 	 
	 	 	Title:  	DIRECTOR 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	1ST FARM CREDIT SERVICES, PCA

 	 
	 	By:  	/s/ DALE A RICHARDSON
 	 
	 	 	Name:  	DALE A. RICHARDSON 	 
	 	 	Title:  	VP, ILLINOIS CAPITAL MARKETS
GROUP 	 
	 
	 	FARM CREDIT SERVICES OF MINNESOTA VALLEY, PCA dba FCS
COMMERCIAL FINANCE GROUP

 	 
	 	By:  	/s/ DANIEL J. BEST
 	 
	 	 	Name:  	DANIEL J. BEST 	 
	 	 	Title:  	ASST. VICE PRESIDENTexv10w1

 

EXHIBIT 10.1

26601 W. Agoura Road

Calabasas, California 91302 USA

Tel: 877.FOR.IXIA

Fax: 818.871.1805

www.ixiacom.com

August 6, 2007

CONFIDENTIAL

			
	Atul Bhatnagar 

19193 Allendale Avenue 

Saratoga, CA 95070
	 	Via Federal Express

Dear Atul,

On behalf of Ixia (“Ixia” or the “Company”), I am pleased to offer you employment as President and
Chief Operating Officer of the Company under the terms and conditions set forth in this letter. As
President and Chief Operating Officer, you will report directly to the Chief Executive Officer of
the Company and will have such duties and responsibilities as set forth in Ixia’s Bylaws and as may
be delegated to you from time to time by the Chief Executive Officer or the Board of Directors.
You will be principally responsible for managing the day-to-day operations of Ixia and for
developing and implementing Ixia’s strategic and tactical goals.

Your start date will be September 4, 2007. Within 30 days following the commencement of your
employment with Ixia, you will be appointed to the Board of Directors.

It is our expectation that if in the discretion of the Company’s Board of Directors you
satisfactorily perform your duties and responsibilities as President and Chief Operating Officer,
then you will be appointed as Chief Executive Officer and President of the Company to succeed Errol
Ginsberg on or before February 1, 2008.

You agree to devote your full-time attention and best efforts to the performance and discharge of
such duties and responsibilities and to perform and discharge such duties and responsibilities
faithfully, diligently and to the best of your abilities.

Your starting annual base salary will be $375,000 payable in accordance with Ixia’s payroll
policies as in effect at that time. You will be eligible to participate in the Company’s 2008
executive officer bonus plan, as approved by the Ixia Board of Directors, with a target bonus
opportunity of 75% of your 2008 annual salary upon 100% achievement of the Company’s 2008 financial
targets and a maximum bonus opportunity of up to 100% of your 2008 annual salary if the Company
exceeds its 2008 financial targets.

 

 

Mr. Bhatnagar

August 6, 2007

Page 2

For 2007, you will be eligible to receive a discretionary bonus in the maximum amount of $100,000,
based on the percentage degree to which you achieve certain individual business and/or strategic
objectives assigned to you for 2007. The Compensation Committee of the Board of Directors, in its
discretion, will determine the amount of your bonus no later than February 15, 2008, and any amount
so determined will be paid within 30 days following the Compensation Committee’s determination.

As a new employee, you will be eligible to participate in Ixia’s benefit programs (e.g., medical,
dental, life insurance, etc.), which are generally available to the Company’s executive officers.
In addition, you will be designated as an “Eligible Officer” under Ixia’s Officer Severance Plan (a
copy of which has been provided to you).

You will be offered the opportunity to participate in Ixia’s Employee Stock Purchase Plan and
401(k) Plan upon your satisfaction of the eligibility requirements for such Plans.

As part of your compensation package, I will recommend that the Company’s Compensation Committee
grant to you, within 30 days following your start date, under the Company’s Amended and Restated
1997 Equity Incentive Plan (the “Plan”): (i) nonstatutory stock options (“NSOs”) to purchase
400,000 shares of Ixia Common Stock (“Option A”); (ii) NSOs to purchase 300,000 shares of Ixia
Common Stock (“Option B”); and (iii) 15,000 Restricted Stock Units (“RSUs”). The exercise price of
your Options will be equal to the closing sales price of Ixia Common Stock on the date on which the
Options are granted.

Option A will vest and become exercisable with respect to 100,000 shares upon completion of one
year of employment with the Company, and the remaining 300,000 shares subject thereto will vest and
become exercisable, cumulatively, in 12 equal quarterly installments commencing on the last day of
the first full calendar quarter following the initial vesting date of your option, as long as you
remain an employee of the Company. Option B will vest and become exercisable as to all 300,000
shares subject thereto upon the Company’s achievement of certain financial goals.

Both Option A and Option B will be subject to the terms and provisions of the Plan and the Stock
Option Agreements evidencing the grant of your Options. Both Option A and Option B will expire, to
the extent previously unexercised, upon the earlier of four years from the vesting date of grant or
30 days (at a minimum) after you cease to be an employee of the Company. In addition to the
foregoing principal terms, both Option A and Option B will include such other terms and conditions
that are customarily included in options granted to employees of the Company.

Your RSUs will vest and the shares represented thereby will automatically be issued in eight equal
quarterly installments, with the first installment vesting on November 15, 2007 and one additional
installment vesting on the 15th day of the second month of each calendar quarter
thereafter as long as you remain an employee of the Company. Your RSUs will be subject to the
terms and provisions of the Plan and your RSU Agreement.

 

 

Mr. Bhatnagar

August 6, 2007

Page 3

Ixia will reimburse you for (i) the commissions and fees paid by you in connection with the sale of
your current home, (ii) the closing costs you incur in connection with your purchase of a new home
in the Los Angeles area (provided that such closing occurs prior to August 1, 2008), and (iii) up
to a maximum of $30,000 for your actual reasonable out-of-pocket travel, moving and other expenses
relating to your relocation to the Los Angeles area. In addition, the Company will pay you up to
an additional $15,000 to reimburse you for unanticipated or incidental matters related to your
relocation. The Company will also reimburse you for the reasonable costs of temporary housing in
the Los Angeles area pending your relocation (up to a maximum of six months).

As a condition of commencing your employment with Ixia, you will be required to sign Ixia’s
standard “Confidentiality and Non-Disclosure Agreement and Assignment of Rights” (a copy of which
is enclosed herewith). In addition, due to immigration law requirements, it will be necessary for
you to complete an Employee Eligibility Form (I-9). In connection therewith, we will need
appropriate identification as set out on page two of the Employee Eligibility Form (I-9).

As with every Ixia employee, you reserve the right to terminate your employment at any time, and we
reserve the right in our discretion to terminate your employment with immediate effect, for any
reason or no reason, and without any liability for compensation or damages. We hope, however, that
this will be a long and mutually beneficial relationship. Our offer is expressly subject to our
completion and receipt of satisfactory background reference checks on you which we expect to
complete within the next week.

This letter contains our entire understanding with respect to your employment with Ixia and
supersedes all prior or contemporaneous representations, promises, discussions or agreements with
respect to the subject matter hereof, whether written or oral, and whether made to you or with you
by any employee, director or officer of, or any other person affiliated with, Ixia or any actual or
perceived agent thereof. Ixia reserves the right to make reasonable minor changes to the terms and
conditions of employment of all its employees (including you); such changes shall be notified by
way of a general notice to all employees and shall take effect from the date of the notice (unless
such other effective date is specified in the notice). Subject thereto, the provisions of this
letter may be amended, modified, supplemented or waived only by a writing specifically identifying
this letter and signed by you and by myself or the Chairman of the Ixia Board of Directors on
behalf of Ixia. If you have any questions about the meaning of any of the terms or provisions
included herein, please let me know at your earliest convenience.

This letter and the rights and obligations of the parties hereto shall be governed and construed
under the laws of the State of California.

Atul, we believe that Ixia can provide you with a meaningful opportunity for professional growth
and financial return. We look forward to working with you and believe that you can make a very
significant, positive contribution to the success of Ixia. Our Company offers you an opportunity
to put your experience, abilities, dedication, energy and creativity to excellent use. Welcome to
the team!

 

 

Mr. Bhatnagar

August 6, 2007

Page 4

Please acknowledge your acceptance of this offer prior to August 9, 2007 by signing and dating the
enclosed copy of this letter where indicated below and sending (i) to me either a copy of the
signed agreement by fax (818.936.0564) or a pdf copy (errol@Ixiacom.com) and (ii) the signed copy
to me at Ixia, 26601 W. Agoura Road, Calabasas, California 91302.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Errol Ginsberg
 	 
	 	 	 
	 	Errol Ginsberg

President and Chief Executive Officer 	 
	 

Acknowledged and Accepted:

	 	 	 
	/s/ Atul Bhatnagar

	 	Date: August 8, 2007
	 

Atul Bhatnagar

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