Diamond Foods, Inc. 1050 South Diamond Street Stockton, California 95201 Third Amendment to Note Purchase Agreement dated as of July 17, 2001
Exhibit 99.04
Diamond Foods, Inc.
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Xxxxxxxx, Xxxxxxxxxx 00000
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Xxxxxxxx, Xxxxxxxxxx 00000
7.35% Senior Notes, Series A, due December 1, 2013
Third Amendment to Note Purchase Agreement
dated as of July 17, 2001
dated as of July 17, 2001
Dated as of
March 19, 2007
March 19, 2007
To Each of the Holders of the above Notes
as listed in the attached Schedule A
as listed in the attached Schedule A
Ladies and Gentlemen:
Diamond Foods, Inc., a Delaware corporation and successor by merger to Diamond Walnut
Growers, Inc., a California corporation (the “Company”), is requesting modification to certain of
the provisions of the Agreement referred to below.
In consideration of the foregoing, the Company hereby agrees with you as follows:
1. Note Purchase Agreement. Reference is hereby made to the Note Purchase Agreement,
dated as of July 17, 2001, as amended by (i) the Amendment to Note Purchase Agreement dated as of
December 1, 2004, and (ii) the Second Amendment to Note Purchase Agreement, dated as of April 8,
2005 (as amended, the “Agreement”), between the Company and you (or your predecessor in interest
listed in Schedule A to the Agreement) pursuant to which the Company issued its 7.35% Senior Notes,
Series A, due December 1, 2013, held by you. Certain capitalized terms used in this Amendment are
defined in Schedule B to the Agreement.
2. Amendments.
(a) Each of the following defined terms set forth in Schedule B to the Agreement is hereby
amended and restated, as follows:
“EBIT” means, with respect to any period, Consolidated Net Income for
such period plus all amounts deducted in the computation thereof on account
of (a) Interest Charges, (b) taxes imposed on or measured by income or
excess profits, (c) any Make-Whole Loan Amount paid by the Company pursuant
to Section 4.2 of the Trust Agreement in connection with an Unscheduled
Redemption of Preferred Securities, (d) non-cash share based expenses
governed by FASB 123(R) and (e) non-cash pension termination expenses
resulting from the Company’s termination of its defined benefit pension
plan, provided that if any portion of such expense is paid in cash
in any subsequent period, then such portion shall be deducted from EBIT in
such subsequent period.
“EBITDA” means, with respect to any period, Consolidated Net Income for
such period plus all amounts deducted in the computation thereof on account
of (a) Interest Charges, (b) taxes imposed on or measured by income or
excess profits, (c) any Make-Whole Loan Amount paid by the Company pursuant
to Section 4.2 of the Trust Agreement in connection with an Unscheduled
Redemption of Preferred Securities, (d) non-cash share based expenses
governed by FASB 123(R), (e) non-cash pension termination expenses resulting
from the Company’s termination of its defined benefit pension plan,
provided that if any portion of such expense is paid in cash in any
subsequent period, then such portion shall be deducted from EBIT in such
subsequent period, (f) depreciation expense and (g) amortization expense.
(b) Section 10.5 of the Agreement is amended, effective as of the Effective Date (as such term
is defined in the Second Amendment to Note Purchase Agreement, dated as of April 8, 2005, between
the Company and you), to delete the term “Consolidated Adjusted Net Worth and to replace such term
with “Consolidated Net Worth”.
3. Effect of this Amendment. On and after the date hereof, each reference in the
Agreement or the Notes to “this Agreement” or “the Other Agreements” or the like shall mean “this
Agreement” or “the Other Agreements” as amended hereby.
4. Scope of Amendment. Except as specifically amended above, (a) the Agreement and
the Other Agreements shall each remain in full force and effect and each is hereby ratified and
confirmed and (b) the execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power, or remedy of the holders of the
Notes, nor constitute a waiver of any provision of the Agreement, the Notes or any other document,
instrument or agreement executed in connection with the Agreement or the Notes.
5. Representations and Warranties. The Company hereby represents and warrants as
follows:
(a) no Default or Event of Default has occurred and is continuing;
(b) the Company’s execution, delivery and performance of the Agreement, as modified by this
letter agreement, have been duly authorized by all necessary corporate and other action and do not
and will not require any registration with, consent or approval of, or notice to or action by, any
Person (including any Governmental Authority) in order to be effective and enforceable; and
(c) the Agreement, as modified by this letter agreement, constitutes the legal, valid and
binding obligation of the Company, enforceable against the Company in accordance with its terms
except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws
of general application relating to or affecting the enforcement of creditors’ rights or by general
principles of equity.
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6. Payment of Legal Fees. Without limiting the provisions of Section 15.1 of the
Agreement, the Company shall pay the fees, charges and disbursements of your special counsel to the
extent reflected in a statement or statements of such counsel rendered to the Company, within 30
days of receipt of such statements.
7. Miscellaneous
(a) Counterparts. This Amendment may be executed in any number of identical counterparts, any
set of which signed by all the parties hereto shall be deemed to constitute a complete, executed
original for all purposes.
(b) Governing Law. This Amendment shall be governed by and construed in accordance with the
laws of the State of California without reference to conflicts of law rules.
(c) Headings. Heading in this Amendment are for convenience of reference only and are not
part of the substance hereof.
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If you are in agreement with the foregoing, please sign the form of agreement on the
accompanying counterpart of this Agreement and return it to the Company, whereupon the foregoing
shall become a binding agreement between you and the Company.
Very truly yours,
Diamond Foods, Inc.
By: |
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Name: Title: |
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The foregoing is hereby agreed to as of the date hereof. | ||||
Teachers Insurance And Annuity Association Of America |
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By: |
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Name: Title: |
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PRU & CO. | ||||
By:
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Prudential Investment Management, Inc., | |||
a general partner | ||||
By: |
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Name: Title: |
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Schedule A
Teachers Insurance and Annuity Association of America
Pru & Co.
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