Exhibit 10.4
SECOND AMENDMENT TO STOCK PURCHASE DOCUMENTS
This Second Amendment to Stock Purchase Documents is made effective as of
February 21, 2002 among Fresh America Corp., a Texas corporation (`"Fresh"), and
Xxx Xxxxxxxxx, Xx., Xxxxx Xxxxx, and the Xxx Xxxxxxxxx Children's Trust
(collectively "Sellers").
1. This Second Amendment to Stock Purchase Documents modifies that certain Stock
Purchase Agreement and related documents ("Stock Purchase Documents") between
the parties dated October 30, 1998. This Second Amendment also modifies that
certain Amendment to Stock Purchase Documents between the parties effective as
of July 28, 2000.
2. The Stock Purchase Agreement and previous Amendment to Stock Purchase
Documents are modified as follows:
A. Because of the failure of Fresh to pay the sum of $350,000 due
on January 1, 2002, Sellers have accelerated all remaining
indebtedness in the sum of $725,000, which is now due and
payable.
B. Fresh has represented to Sellers that it is presently engaged
in efforts to refinance its debt and, if successful, Fresh
will pay the entire accelerated debt of $725,000 plus
interest, to Sellers.
X. Xxxxxxx agree to defer collection efforts to collect the
payment of the accelerated debt of $725,000 due under the
Stock Purchase Documents and Amendment to Stock Purchase
Documents until the earlier of January 7, 2003 or the date
upon which refinancing efforts of Fresh achieve funding.
D. Interest will accrue at the rate of 10% per annum on
accelerated debt of $725,000, from January 1, 2002, until
paid.
E. Until the entire accelerated debt is paid, Fresh will make
partial quarterly interest payments to Sellers, based upon a
5% interest rate, on April 1, 2002, July 1, 2002 and October
1, 2002. The balance of the interest, based upon a 10%
interest rate, will accrue and will be due when the principal
is due in accordance with subsection 2.C. above.
3. If the entire indebtedness, principal and interest, is not paid to the
Sellers in accordance with paragraph 2.C. above, the Sellers shall be entitled
to commence collection efforts for the entire amount of the accelerated debt,
principal and interest, without further notice.
4. The Agreement by Sellers herein to defer collection efforts is
dependent upon and expressly conditioned upon the following:
A. That Xxxxx Xxxxxx, Xxxxxx Xxxxxxxxxx & Co., Inc., Xxxxxx X.
Xxxxxxxx, who have indebtedness currently due from Fresh,
will cease, desist and
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defer their collection efforts until the earlier of refinance
by Fresh or until January 7, 2003;
B. That Fresh will proceed diligently, and use its best and
continuous efforts, to obtain refinancing of its current
debt, in an amount and upon terms that will allow the payoff
of the entire accelerated indebtedness to Sellers, with
interest, at the time the refinancing by Fresh is funded; and
C. That Fresh will notify Sellers when a firm date for the
funding of the refinancing is known to Fresh, within five (5)
days of Fresh's receipt of that knowledge.
5. The Agreement by Sellers herein to defer collection efforts will
automatically terminate upon the earliest of any of the following:
A. The funding of refinancing obtained by Fresh;
B. The filing by Fresh of a petition in bankruptcy, the
commencement of an involuntary bankruptcy proceeding against
Fresh, the service of any notice of assignment for benefit of
creditors, commencement of an asset foreclosure proceeding
against Fresh, a sale of assets, or a merger or acquisition;
C. Collection activity instituted by Xxxxx Xxxxxx, Xxxxxx
Xxxxxxxxxx & Co., Inc., or Xxxxxx X. Xxxxxxxx; or
D. January 7, 2003.
6. If legal action is brought to enforce the terms and provisions of this Second
Amendment, the prevailing party shall be entitled to reasonable attorneys' fees
and costs.
7. Venue and jurisdiction for any disputes arising out of this Agreement shall
be in the State or Federal Court in Los Angeles, California. This Agreement
shall be governed by the laws of the State of California.
8. This Agreement shall be binding upon third parties, successors, assigns,
heirs, parties, subsidiaries, lenders, partners, spouses and the premises and
representations made herein shall survive the execution of this Agreement.
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/S/ Xxx Xxxxxxxxx
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Xxx Xxxxxxxxx
Xxx Xxxxxxxxx Children's Trust
/S/ Xxxx Xxxxx
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Xxxx Xxxxx, Trustee
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Xxxxx Xxxxx
Fresh America Corp.
By:_____________________________________
Xxxxxx Xxxxxx, Chief Financial Officer
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