Exhibit 10.1

AMENDMENT TO PROMISSORY NOTE

 

THIS  AMENDMENT TO  PROMISSORY NOTE  (this “Amendment”) is made and

entered  into   the   15th     day  of   April,  2020  (the  “Execution  Date”),
by  and   between J.

ALEXANDER’S, LLC, a Tennessee limited liability company (“Borrower”), and
PINNACLE BANK, a Tennessee state-chartered bank (“Lender”). J. ALEXANDER’S
HOLDINGS, LLC, a Delaware limited liability company, J. ALEXANDER’S RESTAURANTS,
LLC, a Tennessee limited liability company, J. ALEXANDER’S RESTAURANTS OF
KANSAS, LLC, a Kansas limited liability company, J. ALEXANDER’S OF TEXAS, LLC, a
Texas limited liability company, JAX REAL ESTATE, LLC, a Delaware limited
liability company, JAX RE HOLDINGS, LLC, a Delaware limited liability company,
JAX REAL ESTATE MANAGEMENT, LLC, a Delaware limited liability company, STONEY
RIVER MANAGEMENT COMPANY, LLC, a Delaware limited liability company, SRLS LLC, a
Delaware limited liability company, STONEY RIVER LEGENDARY MANAGEMENT, L.P., a
Georgia limited partnership, and STONEY RIVER, LLC, a Delaware limited liability
company (each a “Guarantor” and collectively the “Guarantors”) join in the
execution of this Amendment to consent to the terms of this Amendment,
including, without limitation, Section 2 of this Amendment.

 

W I T N E S S E T H:

 

WHEREAS, Borrower executed that certain Amended and Restated Promissory Note
dated as of January 2, 2019 in the principal amount of $10,000,000.00 to Lender
(the “Promissory Note”); and

 

WHEREAS, Borrower, Guarantors, and Lender have agreed to amend the Promissory
Note as set forth herein.

 

NOW, THEREFORE, for and in consideration of the premises, the mutual covenants
of the parties, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Borrower, Guarantor, and Lender
covenant and agree as follows:

 

 

1.

The first paragraph of the Promissory Note is modified to read as follows:

 

FOR VALUE RECEIVED, the undersigned, J. ALEXANDER’S, LLC, a Tennessee limited
liability company (“Borrower”), promises to pay to the order of PINNACLE BANK
(“Lender”), in lawful currency of the United States of America, at its principal
office in Nashville, Tennessee, or at such other place as the holder from time
to time may designate in writing, the principal sum of TEN MILLION AND NO/100
($10,000,000.00) DOLLARS, at a rate per annum (the “Applicable Interest Rate”)
equal to the sum of the Benchmark (as hereinafter defined) as in effect on the
first (1st) Business Day of such month, plus the number of basis points as
specified below (the “Margin”) determined by Borrower’s reported Maximum
Adjusted Debt to EBITDAR Ratio for the preceding quarter, established by
Borrower’s quarterly loan compliance report submitted to Lender in accordance
with Section 3.4 of the Second Amended and Restated Loan Agreement dated May 20,
2015, modified by Modification Agreement dated January 2, 2019 (collectively the
“Loan Agreement”):

 

 

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Reported Maximum Adjusted Debt to EBITDAR Ratio for Preceding Quarter

Margin

˂ 1.25x

160 basis points

˂ 2.25x

185 basis points

˂ 3.25x

210 basis points

≥ 3.25x

235 basis points

 

but in no event to exceed the maximum rate of interest permitted by law.
“Benchmark” means LIBOR; provided, however, that after the occurrence of a
Benchmark Transition Event (as hereinafter defined), at Lender’s option and in
Lender’s sole discretion, the Benchmark shall be the Alternate Benchmark (as
hereinafter defined). “LIBOR” means the London Interbank Offered Rate for U.S.
dollar deposits for an interest period of one month, as published by the ICE
Benchmark Administration or any successor entity administering such rate, on the
applicable Reset Date, as published by The WALL STREET JOURNAL (or as obtainable
from such other commercially available source providing such quotations as may
be designated by Lender from time to time). For each calendar month while this
Promissory Note is outstanding, LIBOR, as in effect on the first day of such
month (or if such day is not a Business Day, then on the next preceding Business
Day), shall be the applicable LIBOR for the entirety of such month. For the
purposes hereof, LIBOR in no event shall be less than zero. “Benchmark
Transition Event” means any one or more of the following events with respect to
LIBOR: (a) a public statement or publication of information by or on behalf of
the administrator of LIBOR announcing that such administrator has ceased or will
cease to provide LIBOR, permanently or indefinitely; provided that, at the time
of such statement or publication, there is no successor administrator that will
continue to provide LIBOR; (b) a public statement  or publication of
information  by the regulatory supervisor for the administrator of LIBOR, the
U.S. Federal Reserve System, an insolvency official with jurisdiction over the
administrator for LIBOR, a resolution authority with jurisdiction over the
administrator for LIBOR, or a court or an entity with similar insolvency or
resolution authority over the administrator for LIBOR that states that the
administrator of LIBOR has ceased or will cease to provide LIBOR permanently or
indefinitely; provided that, at the time of such statement or publication, there
is no successor administrator that will continue to provide LIBOR; (c) a public
statement or publication of information by the regulatory supervisor for the
administrator of LIBOR announcing that LIBOR is no longer representative; (d) a
determination by Lender, in its sole discretion, that reasonable and adequate
means no longer exist for ascertaining LIBOR and that the circumstances giving
rise to such determination are unlikely to be temporary; and/or (e) a
determination by Lender, in its sole discretion, that comparable credit
facilities then being executed or amended with commercial banks active in
leading and participating in such facilities or that include benchmark
transition provisions similar to those contained herein are being executed or
amended (as applicable) to incorporate or adopt a new interest rate benchmark to
replace LIBOR for determining interest rates for loans. “Alternate Benchmark”
means a rate benchmark (including any necessary or appropriate mathematical or
other adjustments to such rate benchmark) that Lender, in its sole discretion
after taking into account any then-existing or evolving convention for a rate
benchmark to replace LIBOR in comparable bank-originated commercial extensions
of credit

 

2

 

 

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in the United States of America, determines will represent the substantial
economic equivalent of using LIBOR as a rate benchmark. For each calendar month
while this Promissory Note is outstanding and the Applicable Interest Rate is
determined with reference to the Alternate Benchmark, the Alternate Benchmark as
in effect on the first day of such month (or if such day is not a Business Day,
then on the next preceding Business Day) shall be the applicable Alternate
Benchmark for the entirety of such month. For the purposes hereof, the Alternate
Benchmark in no event shall be less than zero. “Business Day” means any day
other than a Saturday, a Sunday, or another day on which commercial banks are
authorized to close under the laws of or are in fact closed in the State of
Tennessee and, if such day relates to any determination of LIBOR, means any such
day that is also a London Banking Day. “London Banking Day” means any day on
which dealings in U.S. dollar deposits are conducted by and between banks in the
London interbank Eurodollar market. To the extent practicable, Lender will
endeavor to give Borrower prior notice of the substitution of an Alternate
Benchmark for LIBOR.

 

2.

Lender hereby modifies the schedule for Borrower’s principal and interest
payments under the Promissory Note. Borrower shall make monthly interest
payments as set forth herein but shall no longer make monthly principal
reduction payments of $277,778.00 per month as provided in the Promissory Note.
The outstanding principal balance shall be paid in full on the Maturity Date.
Borrower’s next interest payment under the Promissory Note shall be due and
payable on July 3, 2020; provided, however, that interest shall continue to
accrue on the indebtedness evidenced by the Promissory Note at the rate or rates
set forth in the Promissory Note. Subsection (a) and (b) on page 2 of the
Promissory Note are amended and restated in their entirety to read as follows:

 

 

 

(a)

On April 3, 2020, May 3, 2020, and June 3, 2020, no payments shall be due and
payable to Lender. On July 3, 2020, and on the third (3rd) day of each
succeeding month up to and including August 3, 2021, consecutive monthly
payments of interest only shall be due and payable.

 

 

 

(b)

The entire unpaid principal balance and all accrued interest and other charges
shall be due and payable on September 3, 2021 (the “Maturity Date”).

 

 

3.IN ORDER TO INDUCE LENDER TO EXECUTE THIS AMENDMENT AND IN CONSIDERATION OF
THIS AMENDMENT, BORROWER AND GUARANTORS REPRESENT AND WARRANT TO LENDER THAT, AS
OF THE EXECUTION DATE OF THIS AMENDMENT, BORROWER, GUARANTORS, AND ALL BORROWER
PARTIES, TO THE FULLEST EXTENT PERMITTED BY LAW, HEREBY RELEASE, ACQUIT, AND
FOREVER DISCHARGE LENDER AND ANY OTHER LENDER PARTIES FROM ANY AND ALL CLAIMS
THAT BORROWER, GUARANTORS, AND/OR ANY BORROWER PARTIES HAD OR NOW HAVE AGAINST
LENDER AND ANY OTHER LENDER PARTIES FOR OR BY REASON OF ANY MATTER, CAUSE, OR
THING WHATSOEVER OCCURRING ON OR PRIOR TO THE EXECUTION DATE HEREOF. BORROWER,
GUARANTORS, AND ALL BORROWER PARTIES FURTHER WAIVE ANY PRESENTLY EXISTING
DEFENSES AGAINST THE PAYMENT AND PERFORMANCE OF ALL OBLIGATIONS OF EVERY NATURE,
CHARACTER, AND

 

3

 

 

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DESCRIPTION TO LENDER OR ANY OTHER LENDER PARTIES UNDER THE LOAN DOCUMENTS OR
OTHERWISE. BORROWER, GUARANTOR, AND ALL BORROWER PARTIES AGREE NOT TO COMMENCE,
JOIN IN, OR PROSECUTE ANY SUIT OR OTHER PROCEEDING IN A POSITION THAT IS ADVERSE
TO LENDER OR ANY OTHER LENDER PARTIES ARISING DIRECTLY OR INDIRECTLY FROM ANY
MATTER RELEASED HEREIN. BORROWER, GUARANTORS, AND ALL BORROWER PARTIES REPRESENT
AND WARRANT THAT BORROWER, GUARANTOR, AND ALL BORROWER PARTIES HAVE NOT
PURPORTED TO TRANSFER, ASSIGN, OR OTHERWISE CONVEY ANY INTEREST IN AND HAVE NOT
ACTUALLY TRANSFERRED, ASSIGNED, OR OTHERWISE CONVEYED ANY INTEREST IN ANY MATTER
RELEASED HEREIN TO ANY OTHER PERSON OR ENTITY AND THAT THEIR EXECUTION OF THIS
AMENDMENT DOES NOT REQUIRE THE CONSENT OF OR NOTICE TO ANY THIRD PARTY.
BORROWER, GUARANTORS, AND ALL BORROWER PARTIES AGREE TO INDEMNIFY, DEFEND (WITH
COUNSEL SATISFACTORY TO LENDER), AND HOLD LENDER AND ANY OTHER LENDER PARTIES
HARMLESS AGAINST ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, OR EXPENSES,
INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS’ FEES, THAT LENDER OR ANY
OTHER LENDER PARTIES MIGHT INCUR AS A RESULT OF ANY BREACH OF THIS AMENDMENT BY
BORROWER, GUARANTOR, OR ANY BORROWER PARTIES OR THE ASSERTION OF ANY CLAIM OR
DEFENSE THAT EXISTS AS OF THE EXECUTION DATE OF THIS AMENDMENT BY BORROWER,
GUARANTOR, OR ANY BORROWER PARTIES. “Affiliate” means, with

respect to any Person, another Person who (a) owns an equity interest in the
first Person of any degree; (b) is owned, as to any equity interest, by the
first Person, in any degree; (c) Controls the first Person; (d) is Controlled by
the first Person; or (e) is Controlled by a Person who also Controls the first
Person. “Borrower Parties” means Borrower, Guarantor, and any of their
respective predecessors, successors, heirs, representatives, and assigns, and
any of their respective present and previous agents, attorneys, representatives,
Affiliates, officers, directors, and each of them. “Claims” means any and all
accounts, covenants, agreements, obligations, claims, debts, liabilities,
offsets, demands, costs, expenses, actions, or causes of action of every nature,
character, and description, whether arising at law or in equity or under
statute, regulation, or otherwise, and whether liquidated or unliquidated,
contingent or noncontingent, known or unknown, or suspected or unsuspected.
“Control” means the ability to direct the policies of a Person in a substantial
or material manner, whether directly or indirectly and whether such influence
exists by right or by economic compulsion. “Lender Parties” means Lender, its
participants, predecessors, successors, and assigns and their present and
previous agents, attorneys, accountants, consultants, representatives,
Affiliates, officers, directors, employees, and each of them. “Loan Documents”
means any and all documents, instruments, and/or agreements evidencing or
securing or executed in connection with the indebtedness evidenced by the
Promissory Note. “Person” means any natural person and any legal entity with the
ability to enter into contracts.

 

4.

The Promissory Note, as amended hereby, shall continue in full force and effect
and be enforceable in accordance with its terms. Borrower hereby ratifies,
renews, and reaffirms the terms and conditions of the Promissory Note, as
amended hereby.

 

 

 

5.

Notwithstanding anything in this Amendment or in the Promissory Note to the

 

4

 

 

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contrary, this Amendment may be executed in multiple counterparts that when
taken as a whole shall constitute a complete agreement/instrument.

 

{Signature pages to follow}

 

5

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

 

BORROWER:

 

J. ALEXANDER'S, LLC,

a Tennessee limited liability company

 

By:         /s/ Mark A.
Parkey                                                          

Name:  Mark A. Parkey

Title:    Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

 

 

 

LENDER:

 

PINNACLE BANK,

a Tennessee state-chartered bank

 

By:  /s/ William W. Decamp                              

      William W. DeCamp, Senior Vice President

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

J. ALEXANDER'S HOLDINGS, LLC,

A Delaware limited liability company

 

By:          /s/ Mark A.
Parkey                                                                

Name:  Mark A. Parkey

Title:    Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

J. ALEXANDER'S RESTAURANTS, LLC,

a Tennessee limited liability company

By:       /s/ Mark A.
Parkey                                                      

Name: Mark A. Parkey

Title:   Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

J. ALEXANDER'S RESTAURANTS OF KANSAS, LLC, a Kansas limited liability company

 

By:        /s/ Mark A.
Parkey                                                      

Name: Mark A. Parkey

Title:   Executive Vice President and Chief Financial Officer

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

J. ALEXANDER'S OF TEXAS, LLC,

a Texas limited liability company

 

By:       /s/ Mark A. Parkey                                                  

Name: Mark A. Parkey

Title:   Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned  has executed  this Amendment effective as
of the Execution Date.

 

GUARANTOR:

 

 

 

JAX REAL ESTATE, LLC,

a Delaware limited liability company

 

By:       /s/ Mark A. Parkey                                                  

Name: Mark A. Parkey

Title:   Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed  this Amendment  effective  as
of the Execution Date.

 

GUARANTOR:

 

 

 

JAX RE HOLDINGS, LLC,

a Delaware limited liability company

 

By:         /s/ Mark A.
Parkey                                                      

Name: Mark A. Parkey

Title:Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

JAX REAL ESTATE MANAGEMENT, LLC,

a Delaware limited liability company

 

By:        /s/ Mark A.
Parkey                                                    

Name: Mark A. Parkey

Title:    Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

STONEY RIVER MANAGEMENT COMPANY, LLC,

a Delaware limited liability company

 

By:       _/s/ Mark A.
Parkey                                                    

Name:  Mark A. Parkey

Title:    Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

SRLS LLC,

a Delaware limited liability company

 

By:       _/s/ Mark A.
Parkey                                                    

Name: Mark A. Parkey

Title:    Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

STONEY RIVER LEGENDARY MANAGEMENT, L.P.,

a Georgia limited partnership

 

 

By:       _/s/ Mark A.
Parkey                                                    

Name: Mark A. Parkey

Title:    Executive Vice President and Chief Financial Officer

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of
the Execution Date.

 

GUARANTOR:

 

 

 

STONEY RIVER, LLC,

a Delaware limited liability company

 

By:       _/s/ Mark A.
Parkey                                                    

Name: Mark A. Parkey

Title:    Executive Vice President and Chief Financial Officer