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Title: |
Escrow Agreement |
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Entities: |
Chase Manhattan Bank; Vlasic Foods International Inc; Wells Fargo Bank Minnesota, NA; Dechert LLP |
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Date: |
2000 |
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Size: |
Preview shows 6KB of 41KB total |
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Price: |
$32 |
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ID: |
#1582149 |
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5 ex10-4.txt ESCROW AGREEMENT
1
[EXHIBIT 10.4]
ESCROW AGREEMENT
This Escrow Agreement (this "Escrow Agreement"), dated as of
August 2, 2000, is by and among Vlasic Foods International Inc., a New Jersey
corporation (the "Company"), the individuals listed on Schedule I hereto (the
"Family Participating Lenders"), Morgan Guaranty Trust Company of New York, as
Administrative Agent under the Credit Agreement referred to below (the
"Administrative Agent"), and Wells Fargo Bank Minnesota, National Association,
as escrow agent (the "Escrow Agent").
W I T N E S S E T H
WHEREAS, the Family Participating Lenders have entered into a
Master Loan Participation Agreement of even date herewith (the "Participation
Agreement") pursuant to which they have agreed to purchase participations in
one-half of additional Revolving Loans (the "New Revolving Loans") made under
the Amended and Restated Credit Agreement, dated as of September 30, 1998 (as
amended or waived to date (including by Amendment No. 2 and Waiver No. 5
thereunder dated as of June 28, 2000) and as hereafter amended or waived, the
"Credit Agreement"), among the Company, the Banks party thereto, The Chase
Manhattan Bank, as Syndication Agent, and the Administrative Agent (capitalized
terms used but not defined herein shall have the meanings assigned thereto in
the Credit Agreement), beyond the $185,200,000 of Revolving Loans under the
Credit Agreement currently outstanding, up to a maximum aggregate participation
amount of $17,500,000 (the "Maximum Amount"); and
WHEREAS, in connection with the Participation Agreement, the
Family Participating Lenders desire to establish an escrow account with the
Escrow Agent in accordance with the terms and conditions set forth herein, for
the deposit of funds representing the Maximum Amount and the application of such
funds toward the purchase of participations pursuant to the Participation
Agreement;
NOW THEREFORE, the parties hereto agree as follows:
1. Appointment of Escrow Agent. The Family Participating
Lenders hereby appoint Wells Fargo Bank Minnesota, National Association, to act
as Escrow Agent in accordance with the terms and provisions of this Escrow
Agreement, and Wells Fargo Bank Minnesota, National Association hereby accepts
such appointment on the terms and provisions of this Escrow Agreement.
2. Escrow Fund. The Family Participating Lenders have
deposited into an account (the "Escrow Account") maintained by the Escrow Agent,
by wire transfer, a total of the Maximum Amount in cash, in the respective
amounts set forth opposite each Family Participating Lender's name on Schedule I
hereto. Confirmation of receipt of these funds shall be immediately provided by
the Escrow Agent to the Administrative Agent upon notice to the Escrow Agent
that the Effective Date (as defined below) has occurred. Amounts deposited with
the Escrow Agent as provided by this Section 2, including any accretions and
reductions2
therefrom, are referred to herein and shall constitute the "Escrow Fund."
Commencing on the date on which any Escrow Funds were initially deposited into
the Escrow Account, such funds shall be invested in accordance with Section
4(a). Commencing on the Effective Date (as defined below), the Escrow Fund shall
continue to be invested and shall be held and administered in accordance with
the terms and provisions of this Escrow Agreement. The "Effective Date" shall
mean the date on which all of the following are executed and delivered to the
Family Participating Lenders, in form and substance satisfactory to the Family
Participating Lenders: (i) this Escrow Agreement; (ii) the Participation
Agreement; (iii) all documents, agreements and instruments necessary or
desirable, as determined by the Family Participating Lenders, to create, enforce
and perfect the liens, mortgages and security interests of the Family
Participating Lenders in the Collateral, as defined in Section 5 hereof; (iv) a
copy of all waivers executed by the Banks waiving any Events of Default under
the Financing Documents, including Waiver No. 6 under the Credit Agreement; and
(v) all other documentation (including legal opinions) requested by the Family
Participating Lenders in connection with this Escrow Agreement, the
Participation Agreement and the documents referred to in clause (iii) above. The
Family Participating Lenders authorize Dechert, their counsel, to notify the
Company and the Administrative Agent of the occurrence of the Effective Date.
3. Disbursement of Escrow Fund. At any time on or after the
Effective Date, the Escrow Agent shall release and disburse the Escrow Fund in
accordance with the provisions of this Section 3, without the requirement of any
prior notice to or action by any Family Participating Lender.
a. Promptly upon receipt of any Notice of Committed
Borrowing under the Credit Agreement, all or any portion of which will
constitute New Revolving Loans, the Administrative Agent shall, pursuant to the
Participation Agreement, deliver to the Escrow Agent a completed and signed
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