Exhibit 10.1

 

AMENDMENT NO. 2

 

to that certain

 

REVOLVING CREDIT AND TERM LOAN AGREEMENT

dated as of September 30, 2002

 

AMENDMENT NO. 2 (this “Amendment”), dated as of February         , 2004, to the
Revolving Credit and Term Loan Agreement, dated as of September 30, 2002 (as
amended and in effect from time to time, the “Credit Agreement”), is by and
among (a) BUCA, INC. (the “Borrower”), a Minnesota corporation, (b) BUCA
RESTAURANTS, INC., a Minnesota corporation, BUCA RESTAURANTS 2, INC., a
Minnesota corporation (as an original party and as successor by merger to BUCA
(Nevada), Inc.), BUCA RESTAURANTS 3, INC., a Minnesota corporation, BUCA
INVESTMENTS, INC., a Minnesota corporation, BUCA (KANSAS), INC., a Kansas
corporation, BUCA TEXAS RESTAURANTS, L.P., a Texas limited partnership, and BUCA
TEXAS BEVERAGE, INC., a Texas corporation (collectively, the “Guarantors”), (c)
FLEET NATIONAL BANK and the other lending institutions listed on Schedule 1
attached thereto (the “Lenders”), (d) FLEET NATIONAL BANK, as administrative
agent (in such capacity, the “Administrative Agent”) for the Lenders, and (e)
SUNTRUST BANK, as syndication agent.

 

WHEREAS, the Borrower has advised the Lenders and the Administrative Agent that
it intends to enter into a private placement transaction whereby it will receive
net cash proceeds of at least $17,000,000 in exchange for the issuance of equity
interests in the Borrower (collectively, the “New Equity Transaction”); and

 

WHEREAS, the Borrower, the Required Lenders and the Administrative Agent have
agreed, on the terms and conditions set forth herein, to amend certain
provisions of the Credit Agreement;

 

NOW THEREFORE, the parties hereto hereby agree as follows:

 

§1. Defined Terms. Capitalized terms which are used herein without definition
and which are defined in the Credit Agreement shall have the same meanings
herein as in the Credit Agreement.

 

§2. Amendments to the Credit Agreement.

 

(a) Definition of Amendment No. 2. Section 1.1 of the Credit Agreement is hereby
amended by adding the following new definition in the proper alphabetical order:

 

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“Amendment No. 2. Amendment No. 2 to this Credit Agreement, dated as of February
23, 2004, by and among the Borrower, the Guarantors, the Administrative Agent
and certain Lenders party thereto.”

 

(b) Definition of Consolidated EBITDA. The definition of “Consolidated EBITDA”
in Section 1.1 of the Credit Agreement is hereby amended by deleting such
definition and substituting the following new definition in lieu thereof:

 

“Consolidated EBITDA. With respect to the Borrower and its Subsidiaries and any
period, (a) Consolidated EBIT for such period, plus (b) in each case to the
extent deducted in calculating such Consolidated EBIT and without duplication,
(i) depreciation and amortization for such period, (ii) other noncash charges
for such period (other than those resulting in cash payments in a future
period), (iii) pre-opening expenses for any Store for such period, and (iv) any
costs and expenses associated with the early termination of Indebtedness for
such period in an aggregate amount not to exceed $500,000 over the term of this
Credit Agreement, all as determined in accordance with GAAP.”

 

(c) Definition of Reference Period. The definition of “Reference Period” in
Section 1.1 of the Credit Agreement is hereby amended by adding the text “;
provided that with respect to (a) the calculation of the Interest Coverage Ratio
and Consolidated EBITDA (for the purpose of Section 11.6 of the Credit
Agreement) for FQ4 2003 and the calculation of the Fixed Charge Ratio and
Consolidated EBITDA (for the purpose of Section 11.6 of the Credit Agreement)
for FQ1 2004, the Reference Period in each such case shall be deemed to be such
fiscal quarter only, and (b) the calculation of the Fixed Charge Ratio and
Consolidated EBITDA (for the purpose of Section 11.6 of the Credit Agreement)
(i) for FQ2 2004, the Reference Period shall be deemed to be the period of two
consecutive fiscal quarters ended on the last day of that fiscal quarter, and
(ii) for FQ3 2004, the Reference Period shall be deemed to be the period of
three consecutive fiscal quarters ended on the last day of that fiscal quarter”
immediately before the period (“.”) in such definition.

 

(d) Definition of Term Loan Maturity Date. The definition of “Term Loan Maturity
Date” in Section 1.1 of the Credit Agreement is hereby amended by deleting such
definition and substituting the following new definition in lieu thereof:

 

“Term Loan Maturity Date. October 11, 2006.”

 

(e) Schedule of Installment Payments of Principal of Term Loan. Section 4.3.1 of
the Credit Agreement is hereby amended by deleting such Section in its entirety
and substituting the following new Section 4.3.1 in lieu thereof:

 

“4.3.1. Schedule of Installment Payments of Principal of Term Loan. The Borrower
promises to pay to the Administrative Agent for the account of the Lenders the
principal amount of the Term Loan in fifteen (15) consecutive quarterly payments
of (x) with respect to payments for FQ1 2003 through FQ4 2003, $1,250,000, and
(y) after giving effect to the New Equity Transaction (as

 

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defined in Amendment No. 2) and the application of certain Net Cash Equity
Issuance Proceeds therefrom among the remaining scheduled installments of the
principal on the Term Loan as provided in Amendment No. 2, with respect to
payments for FQ1 2004 through FQ3 2006, $958,333, each such payment to be due
and payable on the last day of each fiscal quarter of the Borrower, commencing
on March 30, 2003, with a final payment on the Term Loan Maturity Date in an
amount equal to the unpaid balance of the Term Loan.”

 

(f) Leverage Ratio. Section 11.1 of the Credit Agreement is hereby amended by
deleting the table in Section 11.1 and inserting the following table in lieu
thereof:

 

Period

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  Ratio

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FQ4 2003

  2.50:1.00

FQ1 2004 through FQ3 2004

  2.00:1.00

FQ4 2004 and thereafter

  1.75:1.00

 

(g) Interest Coverage Ratio. Section 11.2 of the Credit Agreement is hereby
amended by deleting Section 11.2 in its entirety and inserting the following in
lieu thereof:

 

“11.2 Interest Coverage Ratio. The Borrower will not permit the Interest
Coverage Ratio as at the end of FQ4 2003 to be less than 0.70:1.00.”

 

(h) Fixed Charge Coverage Ratio. Section 11.3 of the Credit Agreement is hereby
amended by deleting the table in Section 11.3 and inserting the following table
in lieu thereof:

 

Period

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  Ratio

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FQ4 2003

  1.25:1.00

FQ1 2004

  1.15:1.00

FQ2 2004 through FQ3 2004

  1.25:1.00

FQ4 2004

  1.35:1.00

FQ1 2005 and thereafter

  1.40:1.00

 

(i) Capital Expenditures. Section 11.5.1 of the Credit Agreement is hereby
amended by (1) deleting the amount “$27,500,000” in clause (a) of such Section
and substituting the amount “$29,000,000” in lieu thereof, (2) deleting the word
“and” appearing immediately before existing clause (c) in such Section, and (3)
deleting existing clause (c) in such Section and substituting the text “, (c) in
fiscal year 2005, in excess of $17,000,000, (d) in fiscal year 2006, in excess
of $19,000,000 and (e) in fiscal year 2007, in excess of $21,000,000” in lieu
thereof immediately before the proviso in such Section.

 

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(j) Growth Capital Expenditures. Section 11.5.2 of the Credit Agreement is
hereby amended by deleting Section 11.5.2 in its entirety and substituting the
following in lieu thereof:

 

“11.5.2. Growth Capital Expenditures. The Borrower will not make, or permit any
Subsidiary of the Borrower to make, Growth Capital Expenditures (including the
signing of new leases) if the Pro Forma Leverage Ratio as of the time the
Borrower or any Subsidiary of the Borrower commits to incur such Growth Capital
Expenditures is greater than or equal to 1.75:1.00, provided that (x) the
Borrower will not make, or permit any Subsidiary of the Borrower to make, Growth
Capital Expenditures (other than as set forth in clauses (y) and (z) of this
proviso) prior to the receipt by the Lenders of the FQ1 2004 financial
statements required to be delivered by the Borrower pursuant Section 9.4, (y) at
any time during FQ1 2004 or thereafter, the Borrower or any Subsidiary of the
Borrower shall be permitted to sign a new lease in connection with the Store to
be located in Long Beach, California, and (z) such Pro Forma Leverage Ratio
restriction shall not prohibit the Borrower from making Growth Capital
Expenditures otherwise permitted under §11.5.1 with respect to those Stores
listed on Schedule 11.5.2.”

 

(k) Minimum Consolidated EBITDA. Section 11.6 of the Credit Agreement is hereby
amended by deleting such Section in its entirety and substituting the following
new Section 11.6 in lieu thereof:

 

“11.6. Consolidated EBITDA. The Borrower will not permit Consolidated EBITDA for
any Reference Period of the Borrower ending during any fiscal quarter end
described in the table set forth below to be less than the amount set forth
opposite such fiscal quarter in such table:

 

Reference Period Ending

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  Amount

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FQ4 2003

  $ 4,800,000

FQ1 2004

  $ 3,600,000

FQ2 2004

  $ 8,000,000

FQ3 2004

  $ 12,800,000

FQ4 2004

  $ 19,125,000

FQ1 2005 though FQ3 2005

  $ 19,500,000

FQ4 2005 through FQ3 2006

  $ 21,000,000

FQ4 2006 and thereafter

  $ 22,000,000

 

§3. Waiver. Subject to satisfaction of the conditions set forth in §4 below, the
Required Lenders, the Administrative Agent and the Borrower hereby waive the
requirement that the Borrower and the Administrative Agent comply with the
requirements of §§4.3.3 and 4.3.4 of the Credit Agreement with respect to the
application of the Net Cash Equity Issuance Proceeds received in connection with
the New Equity Transaction to the Term Loan and the Revolving Credit Loans;
provided that an amount

 

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equal to $8,500,000 of Net Cash Equity Issuance Proceeds from the New Equity
Transaction shall be applied as a permanent repayment of the Term Loan
immediately upon receipt (with the application of such proceeds being $5,000,000
to the final four installments due in respect of the Term Loan as reflected in
the amendment to the definition of Term Loan Maturity Date and the remaining
$3,500,000 being applied equally to the remaining scheduled installments of the
principal on the Term Loan as reflected in the amendment to §4.3.1 of the Credit
Agreement provided herein), and all remaining Net Cash Equity Issuance Proceeds
of the New Equity Transaction shall be simultaneously applied to repay the
Revolving Credit Loans, but not to reduce the Total Commitment. Nothing
contained in this Amendment shall be construed to imply a willingness on the
part of the Lenders and the Administrative Agent to grant any similar or other
future waivers of any of the terms and conditions of the Credit Agreement.

 

§4. Conditions to Effectiveness. This Amendment shall become effective upon the
satisfaction of the following conditions precedent, all of the following to be
in form and substance satisfactory to the Administrative Agent:

 

(a) Delivery of Amendment. The Administrative Agent shall have received a
counterpart signature page to this Amendment duly executed and delivered by the
Borrower, each of the Guarantors and the Required Lenders.

 

(b) Fees. The Administrative Agent shall have received payment, for the pro rata
account of each Lender which returns an executed counterpart signature page to
this Amendment to the Administrative Agent on or prior to 11:00pm (Boston time)
on February 23, 2004, an amendment fee equal to 0.25% of the sum of such
Lender’s Commitment and the outstanding principal amount of such Lender’s Term
Loan (prior to giving effect to the consummation of the New Equity Transaction).

 

(c) New Equity Transaction and Proceeds. The Borrower shall have (1) consummated
the New Equity Transaction on terms and pursuant to material documentation
reasonably acceptable to the Administrative Agent and shall have received
proceeds therefrom of not less than $17,000,000, and (2) paid to the
Administrative Agent for the respective accounts of the Lenders an amount equal
to the Net Cash Equity Issuance Proceeds received in connection with the New
Equity Transaction, to be applied to the Term Loan and the Revolving Credit
Loans; provided that an amount equal to $8,500,000 of Net Cash Equity Issuance
Proceeds from the New Equity Transaction shall be applied as a permanent
repayment of the Term Loan (with the application of such proceeds being
$5,000,000 to the final four installments due in respect of the Term Loan as
reflected in the amendment to the definition of Term Loan Maturity Date and the
remaining $3,500,000 being applied equally to the remaining scheduled
installments of the principal on the Term Loan as reflected in the amendment to
§4.3.1 of the Credit Agreement provided herein), and all remaining Net Cash
Equity Issuance Proceeds of the New Equity Transaction shall be simultaneously
applied to repay the Revolving Credit Loans, but not to reduce the Total
Commitment.

 

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§5. Affirmation and Acknowledgment of the Borrower and the Guarantors.

 

(a) The Borrower. The Borrower hereby ratifies and confirms all of its
Obligations to the Lenders and the Administrative Agent and the Borrower hereby
affirms its absolute and unconditional promise to pay to the Lenders and the
Administrative Agent the Loans and all other Obligations under the Credit
Agreement, as amended hereby.

 

(b) The Guarantors. Each of the Guarantors hereby ratifies and confirms all of
its Obligations to the Lenders and the Administrative Agent and each of the
Guarantors hereby affirms its unconditional and irrevocable guaranty of the
Obligations under the Credit Agreement, as amended hereby.

 

§6. Representations and Warranties. Each of the Guarantors and the Borrower
hereby represents and warrants to the Administrative Agent and the Lenders as
follows:

 

(a) Representation and Warranties. The representations and warranties of each of
the Guarantors and the Borrower contained in the Credit Agreement and the other
Loan Documents were true and correct in all material respects as of the date
when made and continue to be true and correct in all material respects on the
date hereof, except to the extent of changes resulting from transactions
contemplated or permitted by the Credit Agreement and the other Loan Documents
and changes occurring in the ordinary course of business that singly or in the
aggregate are not materially adverse to the Guarantors and the Borrower, taken
as a whole, or to the extent that such representations and warranties relate
expressly to an earlier date.

 

(b) Ratification, Etc. Except as expressly amended or waived hereby, the Credit
Agreement, and all documents, instruments and agreements related thereto, are
hereby ratified and confirmed in all respects and shall continue in full force
and effect. The Credit Agreement shall, together with this Amendment, be read
and construed as a single agreement. All references to the Credit Agreement in
the Credit Agreement or any related agreement or instrument shall hereafter
refer to the Credit Agreement as amended hereby.

 

(c) Authority, Etc. The execution and delivery by each of the Guarantors and the
Borrower of this Amendment and the performance by each of the Guarantors and the
Borrower of their respective agreements and obligations under the Credit
Agreement as amended hereby are within the corporate or partnership authority of
each such Person and have been duly authorized by all necessary corporate or
partnership action on the part of such Person.

 

(d) Enforceability of Obligations. This Amendment and the Credit Agreement as
amended hereby constitute the legal, valid and binding obligations of each of
the Guarantors and the Borrower, enforceable against each such Person in
accordance with their terms, except as enforceability is limited by bankruptcy,
insolvency, reorganization, moratorium or other laws relating to, or affecting
generally

 

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the enforcement of, creditors’ rights and by equitable principles.

 

(e) No Default. No Default or Event of Default has occurred and is continuing
(except as waived hereby and after giving effect to the amendments contemplated
herein), and no Default or Event of Default will exist after execution and
delivery of, and after giving effect to, this Amendment.

 

§7. Miscellaneous Provisions. (a) Except as otherwise expressly provided by this
Amendment, all of the terms, conditions and provisions of the Credit Agreement
shall remain the same. It is declared and agreed by each of the parties hereto
that the Credit Agreement, as amended or waived hereby, shall continue in full
force and effect, and that this Amendment and the Credit Agreement shall be read
and construed as one instrument.

 

(b) THIS AMENDMENT IS INTENDED TO TAKE EFFECT AS AN AGREEMENT UNDER SEAL AND
SHALL BE CONSTRUED ACCORDING TO AND GOVERNED BY THE LAWS OF THE COMMONWEALTH OF
MASSACHUSETTS (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS).

 

(c) This Amendment may be executed in any number of counterparts, but all such
counterparts shall together constitute but one instrument. In making proof of
this Amendment it shall not be necessary to produce or account for more than one
counterpart signed by each party hereto by and against which enforcement hereof
is sought. Delivery of an executed signature page of this Amendment by facsimile
transmission shall be effective as delivery of a manually executed counterpart
thereof.

 

(d) The Borrower hereby agrees to pay to the Administrative Agent, on demand by
the Administrative Agent, all reasonable legal fees and expenses incurred or
sustained by the Administrative Agent in connection with the preparation of this
Amendment.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be
executed as of the date first written above.

 

BUCA, INC., as the Borrower

By:   /s/    Greg A. Gadel             

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    Name:   Greg A. Gadel     Title:   Executive Vice President and Chief
Financial Officer

 

BUCA RESTAURANTS, INC., as a Guarantor By:   /s/    Greg A. Gadel             

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    Name:   Greg A. Gadel     Title:   Chief Financial Officer

 

BUCA RESTAURANTS 2, INC., as a Guarantor By:   /s/    Greg A. Gadel             

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    Name:   Greg A. Gadel     Title:   Chief Financial Officer

 

BUCA RESTAURANTS 3, INC., as a Guarantor By:   /s/    Greg A. Gadel             

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    Name:   Greg A. Gadel     Title:   Chief Financial Officer

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BUCA INVESTMENTS, INC., as a Guarantor

By:  

/s/    Greg A. Gadel        

   

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    Name: Greg A. Gadel     Title: Chief Financial Officer

BUCA (KANSAS), INC., as a Guarantor

By:  

/s/    Greg A. Gadel        

   

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    Name: Greg A. Gadel     Title: Chief Financial Officer

BUCA TEXAS RESTAURANTS, L.P., as a Guarantor

 

By: BUCA Restaurants, Inc., its General Partner

By:  

/s/    Greg A. Gadel        

   

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    Name: Greg A. Gadel     Title: Chief Financial Officer

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BUCA TEXAS BEVERAGE, INC., as a Guarantor

By:  

/s/    John James Morrison, Jr.        

   

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    Name: John James Morrison, Jr.     Title: President and Secretary

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FLEET NATIONAL BANK, individually and as Administrative Agent

By:  

/s/    Alexandra Burke        

   

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    Name: Alexandra Burke     Title: Director

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SUNTRUST BANK, individually and as

Syndication Agent

By:   /s/    Charles J. Johnson            

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    Name:   Charles J. Johnson     Title:   Managing Director

 

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WELLS FARGO BANK, N.A.

By:   /s/    Jeffrey H. Morsman            

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    Name:   Jeffrey H. Morsman     Title:   AVP

 

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U.S. BANK, NATIONAL ASSOCIATION

By:   /s/    Christopher W. Rupp            

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    Name:   Christopher W. Rupp     Title:   Assistant Vice President