Document:

Employment Agreement of Geoffrey D.K. Stiles

 Exhibit 10.20 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT made and entered into on October 31, 2003 between RUTH’S CHRIS STEAK HOUSE, (hereinafter referred to as the “Employer”), and
GEOFF STILES, (hereinafter referred to as the “Employee”). 
  
 The parties hereto agree upon the following terms of employment of Employee by Employer. 
  
 1. Term. The term of this Employment Agreement shall begin on November 3, 2003, and continue for a term of three years, up to and including,
November 3, 2006. Amendments to this Agreement may be made at any time upon mutual written consent of the Employer and the Employee. 
  
 2. Duties. Employee shall be employed in the position of Executive Vice-President. The Employee will advance the best interests of the
Employer at all times during the term of employment and shall at all such times faithfully, industriously and to the best of his ability, perform all duties as may be required of him by virtue of his title and position and in accordance with the job
description for his title and position as established by the Employer’s Board of Directors and/or its Designee from time to time. The Employee shall comply with any and all written personnel policies and employment manuals of the Employer in
the conduct of his duties. 
  
 3. Extent of Service.
Employee shall devote his full time and best efforts to the performance of his duties. Employee shall not engage in any business or perform any services in any capacity that would, in the judgment of the Employer, interfere with the full and proper
performance by Employee of his duties. 
  

 Page 1 of 6 

 4. Compensation. 
  
 a. Salary. For all duties to be performed by Employee in any capacity hereunder, Employee shall receive an initial
annual salary of $250,000. Employee may be subject to annual reviews, salary adjustments and incentive plans as determined in the sole discretion of the Board of Directors and/or its Designee. 
  
 5. Benefits 
  
 a. Vacation/Leave - Employee shall be entitled to three (3) weeks of
paid vacation per calendar year, with normal sick and holiday leave as defined by Employer’s policies. 
  
 b. Benefit Plan - Employee shall be eligible to participate in the Health and Welfare Plans provided by Employer. 
  
 c. Retirement Benefits - Employee will be eligible for all applicable
retirement benefits offered by Employer. 
  
 f. Where applicable,
Employee should refer to the Summary Plan Description for a complete and detailed explanation of the benefits described in this paragraph. Employee understands that the Summary Plan Description is the controlling document as to the nature of, and
entitlement to, these benefits. 
  
 h. Reimbursement of
Expenses - Employer agrees to reimburse Employee for any and all reasonable and appropriate Employer-related expenses (as determined by Employer) paid by Employee in furtherance of his duties under this Employment Agreement, including, but not
limited to, travel expenses, entertainment expenses and automobile expenses, upon submission of proper accounting records for such expenses. Employer agrees to reimburse Employee for in-transition living expenses and moving expenses, including any
penalties incurred in voiding Employee’s lease in San Antonio (up to a maximum of $1,800), moving costs from San Antonio to New Orleans (up to a maximum of $1,000), costs for temporary housing through March 31, 2004 (up to a maximum of $7,000),
expenses for moving household goods from Phoenix to New 
  

 Page 2 of 6 

 Orleans (up to a maximum of $20,000), and closing costs on Employee’s new home in the New Orleans area (up to a
maximum of $10,000). 
  
 6. Disability or Incapacity of
Employee. 
  
 If, for a period of ninety (90) consecutive
days during the term of this Employment Agreement, Employee is disabled or incapacitated for mental, physical or other cause to the extent that he is unable to perform his duties as herein contemplated during said ninety (90) consecutive days,
Employer shall immediately thereafter have the right to terminate this Employment Agreement upon providing ten (10) days written notice to Employee and shall be obligated to pay Employee compensation due him under Paragraph 4 of this Employment
Agreement, up to the effective date of said termination. The right of termination in this section in no way affects or diminishes other rights of termination as stated in this Employment Agreement. 
  
 7. Termination. 
  
 a. Notwithstanding any other provision hereof, this Employment Agreement
shall be terminated immediately upon the death or disability of Employee or Employee’s discharge upon good faith and sufficient cause. The term “disability” is described in Paragraph 6 of this Employment Agreement. 
  
 b. For purposes of this Agreement, “good faith and sufficient
cause” shall include: 
  
 (1) Dishonesty
detrimental to the best interests of Employer; 
  
 (2) Refusal or failure by Employee to perform his duties, as determined in the sole discretion of the Board of Directors and/or its Designee. 
  
 (3) Misuse of funds of Employer; 
  
 (4) Any conduct which violates any local, state or federal law; 
  
 (5) Any conduct involving personal dishonesty, misconduct or breach of fiduciary duty; or 
  
 (6) Violation of any of the provisions of paragraphs 2, and 7
hereunder. 
  

 Page 3 of 6 

 c. Should Employer terminate this Agreement for good and sufficient cause, then Employee is entitled to
no more than his salary through the date of termination and any unused vacation days. 
  
 d. Employer reserves the right to terminate this Agreement without good faith and sufficient cause, as defined in paragraph 7(b). However, in the event that occurs, then Employee will receive twelve (12) months
severance at the current salary rate in return for Employee executing a severance agreement and waiver and release prepared by the Employer. 
  
 e. Employee understands that should Employee terminate this Employment Agreement, Employee is entitled to no more than his salary through the date of
termination and any unused vacation days. 
  
 8. Disclosure
of Information. Employer understands and agrees that Employee needs access to certain Employer information to properly perform the duties of Executive Vice President. Employee agrees that he will not, during employment or any time after
termination of employment hereunder, without authorization of Employer, disclose to, or make use of for himself or for any person, corporation or other entity, any files, videos, trade secrets, papers, photographs, presentations, recipes,
specifications, drawings, salary structures, sources of income, business plans, minutes of meetings, contractual arrangements, or other confidential information concerning the business, clients, methods, operations, financing or services of
Employer. Trade secrets and confidential information shall mean information disclosed to Employee or known by him as a consequence of his employment by Employer, whether or not pursuant to this Employment Agreement, and not generally known to the
restaurant industry. 
  
 9. Surrender of Books and
Records. Employee acknowledges that all files, lists, books, records, photographs, videotapes, slides, specifications, drawings or any other materials used or created by Employee or used or created by Employer in connection with the conduct
of its business, shall at all times remain the property of Employer and that upon termination of employment hereunder, irrespective of the time, manner or cause of termination, Employee 
  

 Page 4 of 6 

 will surrender to Employer all such files, lists, books, records, photographs, videotapes, slides, specifications,
drawings or any other materials. 
  
 10.
Severability. If any provision of this Employment Agreement shall be held invalid or unenforceable, the remainder of this Employment Agreement shall, nevertheless, remain in full force and effect. If any provision is held invalid or
unenforceable with respect to particular circumstances, it shall, nevertheless, remain in full force and effect in all other circumstances. 
  
 11. Notice. All notices required to be given under the terms of this Employment Agreement shall be in writing, shall be effective upon
receipt, and shall be delivered to the addressee in person or mailed by certified mail, returned receipt requested: 
  
 If to Employer, addressed to: 
  
 Mr. Jeff Conway 
 RCSH Operations, LLC 
 Corporate Office 
 3321 Hessmer Avenue 
 Metairie, LA 70002 
  
 If to Employee, addressed to:

  
 Mr. Geoff Stiles 
 9412 North Broken Bow 
 Fountain Hills, Arizona 85268 
  
 or such other address as a party shall
have designated for notices to be given to him or it by notice given in accordance with this paragraph. 
  
 12. Assignment. This Employment Agreement shall be non-assignable by either party hereto without the prior written consent of both parties.
Any attempted assignment hereof without such prior written consent shall be null and void. 
  
 13. Waiver. The waiver by either party of any breach or violation of any provision of this Employment Agreement shall not operate or be construed as a waiver of any subsequent breach or violation hereof.

  

 Page 5 of 6 

 14. Governing Law and Resolution of Dispute. This contract shall be governed by and
construed in accordance with the laws of or applicable to the State of Louisiana. Any dispute, controversy or claim arising out of or relating to this Employment Agreement, or the breach thereof, shall be resolved by arbitration conducted in
accordance with the rules then existing of the American Arbitration Association, applying the substantive law of the State of Louisiana. The parties further agree that any such arbitration shall be conducted in Jefferson Parish, Louisiana.

  
 15. Entire Agreement. This Employment Agreement
contains the entire agreement between the parties hereto. No change, addition or amendment shall be made except by written amendment signed by the parties hereto. 
  
 16. Binding Effect. Each and every one of the terms, conditions and covenants contained herein shall be
binding on and inure to the benefit of the respective parties hereto, their heirs, succession representatives, transferees, successors and assigns. This Agreement is effective for all purposes on October 31, 2003. 
  
 IN WITNESS WHEREOF the parties have executed this Employment Agreement
on this day and year first written above. 
  

					
	 	 	 	 	 RUTH’S CHRIS STEAK HOUSE, INC.

			
	/s/    Geoffrey Stiles	 	 	 	/s/    Thomas J. Pennison, Jr.
	Geoffrey Stiles	 	 	 	 Thomas J. Pennison, Jr.
 Vice-President of
Finance

			
	10/31/03	 	 	 	10/31/03
	Date	 	 	 	Date

  

 Page 6 of 6Credit Agreement, dated March 11, 2005

 Exhibit 10.21 
  
 EXECUTION VERSION 
  
 CREDIT AGREEMENT 
  
 DATED AS OF MARCH 11, 2005 
  
 AMONG 
  
 RUTH’S CHRIS STEAK HOUSE, INC., 
 as Borrower, 
  
 THE LENDERS LISTED HEREIN, 
 as Lenders, 
  
 and 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 
 as Administrative Agent 
  

  
 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page No.

	 SECTION 1. DEFINITIONS
	  	1
			
	 1.1
	  	Certain Defined Terms	  	1
			
	 1.2
	  	Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement	  	27
			
	 1.3
	  	Other Definitional Provisions and Rules of Construction	  	28
		
	 SECTION 2. AMOUNTS AND TERMS OF COMMITMENTS AND LOANS
	  	28
			
	 2.1
	  	Commitments; Making of Loans; the Register; Optional Notes	  	28
			
	 2.2
	  	Interest on the Loans	  	35
			
	 2.3
	  	Fees	  	39
			
	 2.4
	  	Repayments, Prepayments and Reductions of Revolving Loan Commitment Amount; General Provisions Regarding Payments; Application of Proceeds of Collateral and Payments Under Subsidiary
Guaranty	  	40
			
	 2.5
	  	Use of Proceeds	  	47
			
	 2.6
	  	Special Provisions Governing Eurodollar Rate Loans	  	48
			
	 2.7
	  	Increased Costs; Taxes; Capital Adequacy	  	50
			
	 2.8
	  	Statement of Lenders; Obligation of Lenders and Issuing Lender to Mitigate	  	54
			
	 2.9
	  	Replacement of a Lender	  	55
		
	 SECTION 3. LETTERS OF CREDIT
	  	56
			
	 3.1
	  	Issuance of Letters of Credit and Lenders’ Purchase of Participations Therein	  	56
			
	 3.2
	  	Letter of Credit Fees	  	58
			
	 3.3
	  	Drawings and Reimbursement of Amounts Paid Under Letters of Credit	  	58
			
	 3.4
	  	Obligations Absolute	  	61
			
	 3.5
	  	Nature of Issuing Lender’s Duties	  	62
		
	 SECTION 4. CONDITIONS TO LOANS AND LETTERS OF CREDIT
	  	63
			
	 4.1
	  	Conditions to Term Loans and Initial Revolving Loans and Swing Line Loans	  	63
			
	 4.2
	  	Conditions to All Loans	  	68
			
	 4.3
	  	Conditions to Letters of Credit	  	69

  

 i 

					
	 SECTION 5. COMPANY’S REPRESENTATIONS AND WARRANTIES
	  	70
			
	 5.1
	  	Organization, Powers, Qualification, Good Standing, Business and Subsidiaries	  	70
			
	 5.2
	  	Authorization of Borrowing, etc.	  	70
			
	 5.3
	  	Financial Condition	  	71
			
	 5.4
	  	No Material Adverse Change; No Restricted Junior Payments	  	71
			
	 5.5
	  	Title to Properties; Liens; Real Property; Intellectual Property	  	72
			
	 5.6
	  	Litigation; Adverse Facts	  	72
			
	 5.7
	  	Payment of Taxes	  	73
			
	 5.8
	  	Governmental Regulation	  	73
			
	 5.9
	  	Securities Activities	  	73
			
	 5.10
	  	Employee Benefit Plans	  	74
			
	 5.11
	  	Certain Fees	  	74
			
	 5.12
	  	Environmental Protection	  	74
			
	 5.13
	  	Employee Matters	  	75
			
	 5.14
	  	Solvency	  	75
			
	 5.15
	  	Matters Relating to Collateral	  	75
			
	 5.16
	  	Disclosure	  	76
			
	 5.17
	  	Foreign Assets Control Regulations, etc.	  	76
			
	 5.18
	  	UFOC	  	76
		
	 SECTION 6. COMPANY’S AFFIRMATIVE COVENANTS
	  	77
			
	 6.1
	  	Financial Statements and Other Reports	  	77
			
	 6.2
	  	Existence, etc.	  	82
			
	 6.3
	  	Payment of Taxes and Claims; Tax	  	82
			
	 6.4
	  	Maintenance of Properties; Insurance; Application of Net Insurance/ Condemnation Proceeds	  	82
			
	 6.5
	  	Inspection Rights; Lender Meeting	  	84
			
	 6.6
	  	Compliance with Laws, etc.	  	85
			
	 6.7
	  	Environmental Matters	  	85
			
	 6.8
	  	Execution of Subsidiary Guaranty and Personal Property Collateral Documents After the Closing Date	  	86
			
	 6.9
	  	Matters Relating to Additional Real Property Collateral	  	87
			
	 6.10
	  	Post Closing	  	87

  

 ii 

					
	 SECTION 7. COMPANY’S NEGATIVE COVENANTS
	  	88
			
	 7.1
	  	Indebtedness	  	88
			
	 7.2
	  	Liens and Related Matters	  	89
			
	 7.3
	  	Investments; Acquisitions	  	90
			
	 7.4
	  	Contingent Obligations	  	91
			
	 7.5
	  	Restricted Junior Payments	  	91
			
	 7.6
	  	Financial Covenants	  	91
			
	 7.7
	  	Restriction on Fundamental Changes; Asset Sales	  	92
			
	 7.8
	  	Transactions with Shareholders and Affiliates	  	93
			
	 7.9
	  	Sales and Lease-Backs	  	94
			
	 7.10
	  	Conduct of Business	  	94
			
	 7.11
	  	Amendments of Organizational Documents and Preferred Stock Purchase Agreement	  	94
			
	 7.12
	  	Fiscal Year	  	94
			
	 7.13
	  	New Subsidiaries	  	94
			
	 7.14
	  	UFOC	  	94
		
	 SECTION 8. EVENTS OF DEFAULT
	  	95
			
	 8.1
	  	Failure to Make Payments When Due	  	95
			
	 8.2
	  	Default in Other Agreements	  	95
			
	 8.3
	  	Breach of Certain Covenants	  	95
			
	 8.4
	  	Breach of Warranty	  	95
			
	 8.5
	  	Other Defaults Under Loan Documents	  	96
			
	 8.6
	  	Involuntary Bankruptcy; Appointment of Receiver, etc.	  	96
			
	 8.7
	  	Voluntary Bankruptcy; Appointment of Receiver, etc.	  	96
			
	 8.8
	  	Judgments and Attachments	  	97
			
	 8.9
	  	Nonmonetary Judgments	  	97
			
	 8.10
	  	Dissolution	  	97
			
	 8.11
	  	Employee Benefit Plans	  	97
			
	 8.12
	  	Change in Control	  	97
			
	 8.13
	  	Invalidity of Loan Documents; Failure of Security; Repudiation of Obligations	  	97

  

 iii 

					
	 SECTION 9. ADMINISTRATIVE AGENT
	  	98
			
	 9.1
	  	Appointment	  	98
			
	 9.2
	  	Powers and Duties; General Immunity	  	99
			
	 9.3
	  	Independent Investigation by Lenders; No Responsibility For Appraisal of Creditworthiness	  	101
			
	 9.4
	  	Right to Indemnity	  	101
			
	 9.5
	  	Resignation of Agents; Successor Administrative Agent and Swing Line Lender	  	102
			
	 9.6
	  	Collateral Documents and Subsidiary Guaranty	  	103
			
	 9.7
	  	Duties of Other Agents	  	104
			
	 9.8
	  	Administrative Agent May File Proofs of Claim	  	104
		
	 SECTION 10. MISCELLANEOUS
	  	105
			
	 10.1
	  	Successors and Assigns; Assignments and Participations in Loans and Letters of Credit	  	105
			
	 10.2
	  	Expenses	  	108
			
	 10.3
	  	Indemnity	  	109
			
	 10.4
	  	Set-Off	  	110
			
	 10.5
	  	Ratable Sharing	  	110
			
	 10.6
	  	Amendments and Waivers	  	111
			
	 10.7
	  	Independence of Covenants	  	113
			
	 10.8
	  	Notices; Effectiveness of Signatures	  	113
			
	 10.9
	  	Survival of Representations, Warranties and Agreements	  	114
			
	 10.10
	  	Failure or Indulgence Not Waiver; Remedies Cumulative	  	114
			
	 10.11
	  	Marshalling; Payments Set Aside	  	115
			
	 10.12
	  	Severability	  	115
			
	 10.13
	  	Obligations Several; Independent Nature of Lenders’ Rights; Damage Waiver	  	115
			
	 10.14
	  	Release of Security Interest or Subsidiary Guaranty	  	116
			
	 10.15
	  	Applicable Law	  	116
			
	 10.16
	  	Construction of Agreement; Nature of Relationship	  	116
			
	 10.17
	  	Consent to Jurisdiction and Service of Process	  	117
			
	 10.18
	  	Waiver of Jury Trial	  	117
			
	 10.19
	  	Confidentiality	  	118
			
	 10.20
	  	Counterparts; Effectiveness	  	119
			
	 10.21
	  	Successor Issuing Lender	  	119
			
	 10.22
	  	USA Patriot Act	  	120
		
	 Signature pages
	  	S-1

  

 iv 

  
 EXHIBITS 

 

			
		
	I	  	FORM OF NOTICE OF BORROWING
		
	II	  	FORM OF NOTICE OF CONVERSION/CONTINUATION
		
	III	  	FORM OF REQUEST FOR ISSUANCE
		
	IV	  	FORM OF TERM NOTE
		
	V	  	FORM OF REVOLVING NOTE
		
	VI	  	FORM OF SWING LINE NOTE
		
	VII	  	FORM OF COMPLIANCE CERTIFICATE
		
	VIII	  	MATTERS TO BE COVERED IN OPINION OF COMPANY COUNSEL
		
	IX	  	FORM OF ASSIGNMENT AGREEMENT
		
	X	  	FORM OF SUBSIDIARY GUARANTY
		
	XI	  	FORM OF SECURITY AGREEMENT
		
	XII	  	FORM OF MORTGAGE

  

 v 

  
 SCHEDULES 

 

			
		
	1.1	  	EXISTING LETTERS OF CREDIT
		
	2.1	  	LENDERS’ COMMITMENTS AND PRO RATA SHARES
		
	4.1C	  	CORPORATE AND CAPITAL STRUCTURE; OWNERSHIP; MANAGEMENT
		
	4.1J	  	CLOSING DATE MORTGAGED PROPERTIES
		
	4.1M	  	SOURCES AND USES
		
	5.1	  	SUBSIDIARIES OF COMPANY
		
	5.5B	  	REAL PROPERTY
		
	5.5C	  	INTELLECTUAL PROPERTY
		
	5.6	  	LITIGATION
		
	5.12	  	ENVIRONMENTAL MATTERS
		
	7.1	  	CERTAIN EXISTING INDEBTEDNESS
		
	7.2	  	CERTAIN EXISTING LIENS
		
	7.3	  	CERTAIN EXISTING INVESTMENTS
		
	7.4	  	CERTAIN EXISTING CONTINGENT OBLIGATIONS

  

 vi 

  
 EXECUTION VERSION

  
 RUTH’S CHRIS STEAK HOUSE, INC. 
  
 CREDIT AGREEMENT 
  
 This CREDIT AGREEMENT is dated as of March 11, 2005 and entered into
by and among RUTH’S CHRIS STEAK HOUSE, INC., a Louisiana corporation (“Company”), THE FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HEREOF (each individually referred to herein as a
“Lender” and collectively as “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”), as administrative agent for Lenders (in such capacity, “Administrative
Agent”). 
  
 RECITALS 
  
 WHEREAS, Lenders, at the request of Company, have agreed to
extend certain credit facilities to Company, the proceeds of which will be used (i) to refinance certain existing Indebtedness (this and other capitalized terms used in these recitals without definition being used as defined in subsection 1.1) of
Company and to redeem all of the outstanding Senior Subordinated Notes and a portion of the outstanding Senior Preferred Stock, (ii) to pay Transaction Costs and (iii) to provide financing for working capital and other general corporate purposes of
Company and its Subsidiaries; 
  
 WHEREAS, Company desires
to secure all of the Obligations hereunder and under the other Loan Documents by granting to Administrative Agent, on behalf of Lenders, a First Priority Lien on substantially all of its real, personal and mixed property, all of the Capital Stock of
its Subsidiaries; and 
  
 WHEREAS, Subsidiary Guarantors
have agreed to guarantee the Obligations hereunder and under the other Loan Documents and to secure their guaranties by granting to Administrative Agent, on behalf of Lenders, a first priority Lien on substantially all of their real, personal and
mixed property, all of the Capital Stock of their Subsidiaries: 
  
 NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, Company, Lenders and Administrative Agent agree as follows: 
  
 Section 1. DEFINITIONS 
  

	 	1.1	Certain Defined Terms 

  
 The following terms used in this Agreement shall have the following meanings: 
  
 “Additional Mortgaged Property” has the
meaning set forth in subsection 6.9. 
  
 “Additional Mortgages” has the meaning set forth in subsection 6.9. 
  

 “Administrative Agent” has the meaning assigned to that term in the
introduction to this Agreement and also means and includes any successor Administrative Agent appointed pursuant to subsection 9.5A. 
  
 “Affected Lender” has the meaning assigned to that term in subsection 2.6C. 
  
 “Affected Loans” has the meaning assigned
to that term in subsection 2.6C. 
  
 “Affiliate”, as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with, that Person. For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise. 
  
 “Affiliated Funds” means Funds that are administered or managed by (i) a single entity or (ii) an Affiliate of such
entity. 
  
 “Agents” means
Administrative Agent and Arranger. 
  
 “Agreement” means this Credit Agreement dated as of March 11, 2005. 
  
 “Approved Fund” means a Fund that is administered or managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an
entity or an Affiliate of an entity that administers or manages a Lender. 
  
 “Arranger” means Wells Fargo. 
  
 “Asset Sale” means the sale by Company or any of its Subsidiaries to any Person other than Company or any of its
wholly-owned Subsidiaries of (i) any of the stock of any of Company’s Subsidiaries, (ii) substantially all of the assets of any division or line of business of Company or any of its Subsidiaries, or (iii) any other assets (whether tangible or
intangible) of Company or any of its Subsidiaries (other than (a) inventory sold in the ordinary course of business, (b) sales, assignments, transfers or dispositions of accounts in the ordinary course of business for purposes of collection and (c)
any such other assets to the extent that the aggregate value of such assets sold in any Fiscal Year is equal to $500,000 or less). 
  
 “Assignment Agreement” means an Assignment and Assumption in substantially the form of Exhibit IX annexed hereto.

  
 “Bankruptcy Code” means
Title 11 of the United States Code entitled “Bankruptcy”, as now and hereafter in effect, or any successor statute. 
  
 “Base Rate” means, at any time, the higher of (i) the Prime Rate or (ii) the rate which is 1/2 of 1% in excess of the
Federal Funds Effective Rate. Any change in the Base Rate 

  

 2 

 
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective on the effective date of such change. 
  
 “Base Rate Loans” means Loans bearing
interest at rates determined by reference to the Base Rate as provided in subsection 2.2A. 
  
 “Base Rate Margin” means the margin over the Base Rate used in determining the rate of interest of Revolving Loans that
are Base Rate Loans pursuant to subsection 2.2A. 
  
 “Business Day” means (i) for all purposes other than as covered by clause (ii) below, any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of New York, California or Louisiana
or is a day on which banking institutions located in such state are authorized or required by law or other governmental action to close, and (ii) with respect to all notices, determinations, fundings and payments in connection with the Eurodollar
Rate or any Eurodollar Rate Loans, any day that is a Business Day described in clause (i) above and that is also a day for trading by and between banks in Dollar deposits in the London interbank market. 
  
 “Capital Lease”, as applied to any Person,
means any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of that Person. 
  
 “Capital Stock” means the capital stock of
or other equity interests in a Person. 
  
 “Cash” means money, currency or a credit balance in a Deposit Account. 
  
 “Cash Equivalents” means, as at any date of determination, (i) marketable securities (a) issued or directly and
unconditionally guaranteed as to interest and principal by the United States Government or (b) issued by any agency of the United States the obligations of which are backed by the full faith and credit of the United States, in each case maturing
within one year after such date; (ii) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof, in each case maturing within one year after
such date and having, at the time of the acquisition thereof, the highest rating obtainable from either Standard & Poor’s (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”); (iii)
commercial paper maturing no more than one year from the date of creation thereof and having, at the time of the acquisition thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iv) certificates of deposit or
bankers’ acceptances maturing within one year after such date and issued or accepted by any Lender or by any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia that (a) is
at least “adequately capitalized” (as defined in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as defined in such regulations) of not less than $100,000,000; and (v) shares of any money market mutual
fund that (a) has at least 95% of its assets invested continuously in the types of investments referred to in clauses (i) and (ii) above, (b) has net assets of not less than $500,000,000, and (c) has the highest rating obtainable from either S&P
or Moody’s. 
  

 3 

 “Change in Control” means any of the following: (i) Madison Dearborn and
its Affiliates shall cease to directly own and control at least 51% of the issued and outstanding shares of capital stock of Company entitled (without regard to the occurrence of any contingency) to vote for the election of members of the Governing
Body of Company; (ii) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), other than Madison Dearborn and its Affiliates, existing stockholders as of the Closing Date and employees of
Company and its Subsidiaries, becomes the beneficial owner, directly or indirectly of 10% or more of the issued and outstanding shares of capital stock of Company entitled (without regard to the occurrence of any contingency) to vote for the
election of members of the Governing Body of Company, (iii) the occurrence of a change in the composition of the Governing Body of Company such that a majority of the members of any such Governing Body are not Continuing Members; and (iv) the
occurrence of any “Change of Control” as defined in the Company’s Articles of Incorporation. As used herein, the term “beneficially own” or “beneficial ownership” shall have the meaning set forth in the Exchange
Act and the rules and regulations promulgated thereunder. 
  
 “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any law, rule, regulation, treaty or order, (ii) any change in any
law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Government Authority, (iii) any determination of a court or other Government Authority or (iv) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Government Authority. 
  
 “Class”, as applied to Lenders, means each of the following two classes of Lenders: (i) Lenders having Revolving Loan
Exposure and (ii) Lenders having Term Loan Exposure. 
  
 “Closing Date” means the date on which the initial Loans are made. 
  
 “Closing Date Mortgaged Property” has the meaning set forth in subsection 4.1J. 
  
 “Closing Date Mortgages” has the meaning
set forth in subsection 4.1J. 
  
 “Collateral” means, collectively, all of the real, personal and mixed property in which Liens are purported to be granted pursuant to the Collateral Documents as security for the Obligations. 
  
 “Collateral Account” has the meaning
assigned to that term in the Security Agreement. 
  
 “Collateral Documents” means the Security Agreement, the Mortgages and all other instruments or documents delivered by any Loan Party pursuant to this Agreement or any of the other Loan Documents in order to grant to
Administrative Agent, on behalf of Lenders, a Lien on any real, personal or mixed property of that Loan Party as security for the Obligations. 
  

 4 

 “Commercial Letter of Credit” means any letter of credit or similar
instrument issued for the purpose of providing the primary payment mechanism in connection with the purchase of any materials, goods or services by Company or any of its Subsidiaries in the ordinary course of business of Company or such Subsidiary.

  
 “Commitments” means the
commitments of Lenders to make Loans as set forth in subsections 2.1A and 3.3. 
  
 “Communications” has the meaning assigned to that term in subsection 10.8. 
  
 “Company” has the meaning assigned to that
term in the introduction to this Agreement. 
  
 “Compliance Certificate” means a certificate substantially in the form of Exhibit VII annexed hereto. 
  
 “Confidential Information Memorandum” means the Confidential Information Memorandum dated February 2005 and supplements
thereto prepared by Company relating to the credit facilities evidenced by this Agreement. 
  
 “Consolidated Capital Expenditures” means, for any period, the sum of the aggregate of all expenditures, including, to
the extent not already included as an expenditure, the purchase price of any acquired Ruth’s Chris restaurant franchise, (whether paid in cash or other consideration or accrued as a liability and including that portion of Capital Leases which
is capitalized on the consolidated balance sheet of Company and its Subsidiaries) by Company and its Subsidiaries during that period that, in conformity with GAAP, are included in “additions to property, plant or equipment” or comparable
items reflected in the consolidated statement of cash flows of Company and its Subsidiaries. For purposes of this definition, the purchase price of equipment that is purchased with insurance proceeds shall be included in Consolidated Capital
Expenditures only to the extent of the gross amount of such purchase price less the amount of such proceeds. 
  
 “Consolidated Cash Interest Expense” means, for any period, Consolidated Interest Expense for such period
excluding, however, any interest expense not payable in Cash (including amortization of discount and amortization of debt issuance costs). 
  
 “Consolidated EBITDA” means, for any period, the sum, without duplication, of the amounts for such period of (i)
Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) provisions for taxes based on income, (iv) total depreciation expense, (v) total amortization expense, (vi) non-cash write-offs of restaurant assets (including write-offs due to
impairment of goodwill only) and cash write-offs of the Sugar Land Facility and the Manhattan UN Facility, and (vii) non-recurring costs and expenses not to exceed $300,000, paid on or prior to the Fiscal Quarter ended June 27, 2004, by Company in
connection with the search for a chief executive officer and relocation expenses of such newly appointed chief executive officer, in the case of clauses (ii)-(vii), to the extent deducted in the calculation of Consolidated Net Income, less
non-cash items added in the calculation of Consolidated Net Income, all of the foregoing as 

  

 5 

 
determined on a consolidated basis for Company and its Subsidiaries in conformity with GAAP; provided that in the event Company or any of its
Subsidiaries acquires a Ruth’s Chris restaurant franchise during such period, Consolidated EBITDA for such period shall be calculated on a Pro Forma Basis. 
  
 “Consolidated EBITDAR” means, for any period, the sum, without duplication, of the amounts
for such period of (i) Consolidated EBITDA and (ii) Consolidated Rental Expense. 
  
 “Consolidated Excess Cash Flow” means, for any period, an amount (if positive) equal to (i) Consolidated EBITDA
minus (ii) the sum, without duplication, of the amounts for such period of (a) voluntary repayments of the Obligations (excluding repayments of Revolving Loans except to the extent the Revolving Loan Commitment Amount is permanently reduced
in connection with such repayments), (b) scheduled repayments of Consolidated Total Debt and Restricted Junior Payments made in accordance with subsection 7.5, (c) Consolidated Capital Expenditures (net of any proceeds of any related financings with
respect to such expenditures), (d) Consolidated Cash Interest Expense, and (e) current taxes based on income of Company and its Subsidiaries and paid in cash with respect to such period. 
  
 “Consolidated Fixed Charges” means, for any period, the sum (without duplication) of the
amounts for such period of (i) Consolidated Interest Expense, (ii) scheduled principal payments in respect of Consolidated Total Debt, and (iii) Consolidated Rental Expense, all of the foregoing as determined on a consolidated basis for Company and
its Subsidiaries in conformity with GAAP. 
  
 “Consolidated Interest Expense” means, for any period, total interest expense (including that portion attributable to Capital Leases in accordance with GAAP and capitalized interest) of Company and its Subsidiaries on a
consolidated basis with respect to all outstanding Indebtedness of Company and its Subsidiaries, including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, net costs
under Interest Rate Agreements and amounts referred to in subsection 2.3 payable to Administrative Agent and Lenders that are considered interest expense in accordance with GAAP, but excluding, however, any such amounts referred to in subsection 2.3
payable on or before the Closing Date. 
  
 “Consolidated Leverage Ratio” means, as at any date, the ratio of (i) Consolidated Total Debt as at such date plus eight times Consolidated Rental Expense for the consecutive four Fiscal Quarters ending on such date
to (ii) Consolidated EBITDAR for such period. 
  
 “Consolidated Maintenance Capital Expenditures” means, for any period, Consolidated Capital Expenditures minus all such Consolidated Capital Expenditures relating to opening new Ruth’s Chris restaurants or
acquiring Ruth’s Chris restaurant franchises. 
  
 “Consolidated Net Income” means, for any period, the net income (or loss) of Company and its Subsidiaries on a consolidated basis for such period taken as a single 

  

 6 

 
accounting period determined in conformity with GAAP; provided that there shall be excluded (i) the income (or loss) of any Person (other than a
Subsidiary of Company) in which any other Person (other than Company or any of its Subsidiaries) has a joint interest, except to the extent of the amount of dividends or other distributions actually paid to Company or any of its Subsidiaries by such
Person during such period, (ii) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of Company or is merged into or consolidated with Company or any of its Subsidiaries or that Person’s assets are acquired by
Company or any of its Subsidiaries, (iii) the income of any Subsidiary of Company to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income is not at the time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary, (iv) any after-tax gains or losses attributable to asset sales or returned surplus assets of any
Pension Plan, and (v) (to the extent not included in clauses (i) through (iv) above) any net extraordinary gains or net non-cash extraordinary losses. 
  
 “Consolidated Pricing EBITDA” means, for any period, the sum, without duplication, of the amounts for such period of (i)
Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) provisions for taxes based on income, (iv) total depreciation expense, (v) total amortization expense, (vi) non-cash write-offs of restaurant assets (including write-offs due to
impairment of goodwill only) and cash write-offs of the Sugar Land Facility and the Manhattan UN Facility, and (vii) non-recurring costs and expenses not to exceed $300,000, paid on or prior to the Fiscal Quarter ended June 27, 2004, by Company in
connection with the search for a chief executive officer and relocation expenses of such newly appointed chief executive officer, in the case of clauses (ii)-(vii), to the extent deducted in the calculation of Consolidated Net Income, less
non-cash items added in the calculation of Consolidated Net Income, all of the foregoing as determined on a consolidated basis for Company and its Subsidiaries in conformity with GAAP; provided that in the event Company or any of its
Subsidiaries acquires a Ruth’s Chris restaurant franchise during such period, Consolidated Pricing EBITDA for such period shall be calculated on a Pro Forma Basis. 
  
 “Consolidated Pricing Leverage Ratio” means, as at any date, the ratio of (i) Consolidated
Total Debt as at such date plus eight times Consolidated Rental Expense for the consecutive four Fiscal Quarters ending on such date to (ii) Consolidated Pricing EBITDA plus Consolidated Rental Expense for such period. 
  
 “Consolidated Rental Expense” means, for
any period, the aggregate amount of all rents paid or payable during that period under all Real Property Operating Leases to which Company or any of its Subsidiaries is a party as lessee as determined on a consolidated basis for Company and its
Subsidiaries in conformity with GAAP. 
  
 “Consolidated Total Debt” means, as at any date of determination, the aggregate stated balance sheet amount of all Indebtedness of Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.

  
 “Contingent Obligation”, as
applied to any Person, means any direct or indirect liability, contingent or otherwise, of that Person (i) with respect to any Indebtedness, lease, 

  

 7 

 
dividend or other obligation of another if the primary purpose or intent thereof by the Person incurring the Contingent Obligation is to provide assurance to
the obligee of such obligation of another that such obligation of another will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such obligation will be protected (in whole or in part)
against loss in respect thereof, (ii) with respect to any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings, or (iii) under Hedge Agreements. Contingent Obligations
shall include (a) the direct or indirect guaranty, endorsement (otherwise than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the obligation of another, (b)
the obligation to make take-or-pay or similar payments if required regardless of non-performance by any other party or parties to an agreement, and (c) any liability of such Person for the obligation of another through any agreement (contingent or
otherwise) (1) to purchase, repurchase or otherwise acquire such obligation or any security therefor, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances, stock purchases, capital contributions
or otherwise) or (2) to maintain the solvency or any balance sheet item, level of income or financial condition of another if, in the case of any agreement described under subclauses (1) or (2) of this sentence, the primary purpose or intent thereof
is as described in the preceding sentence. The amount of any Contingent Obligation shall be equal to the amount of the obligation so guaranteed or otherwise supported or, if less, the amount to which such Contingent Obligation is specifically
limited. 
  
 “Continuing Member”
means, as of any date of determination any member of the Governing Body of Company who (i) was a member of such Governing Body on the Closing Date or (ii) was nominated for election or elected to such Governing Body with the affirmative vote of a
majority of the members who were either members of such Governing Body on the Closing Date or whose nomination or election was previously so approved. 
  
 “Contractual Obligation”, as applied to any Person, means any provision of any Security issued by that Person or of any
material indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it or any of its properties is bound or to which it or any of its properties is subject. 
  
 “Currency Agreement” means any foreign
exchange contract, currency swap agreement, futures contract, option contract, synthetic cap or other similar agreement or arrangement to which Company or any of its Subsidiaries is a party. 
  
 “Deposit Account” means a demand, time,
savings, passbook or similar account maintained with a Person engaged in the business of banking, including a savings bank, savings and loan association, credit union or trust company. 
  
 “Dollars” and the sign “$” mean the lawful money of the United States of
America. 
  
 “Domestic
Subsidiary” means any Subsidiary of Company that is incorporated or organized under the laws of the United States of America, any state thereof or in the District of Columbia. 
  

 8 

 “Eligible Assignee” means (i) any Lender, any Affiliate of any Lender
and any Approved Fund of any Lender; and (ii) (a) a commercial bank organized under the laws of the United States or any state thereof; (b) a savings and loan association or savings bank organized under the laws of the United States or any state
thereof; (c) a commercial bank organized under the laws of any other country or a political subdivision thereof; provided that (1) such bank is acting through a branch or agency located in the United States or (2) such bank is organized under
the laws of a country that is a member of the Organization for Economic Cooperation and Development or a political subdivision of such country; and (d) any other entity that is an “accredited investor” (as defined in Regulation D under the
Securities Act) that extends credit or buys loans as one of its businesses including insurance companies, mutual funds and lease financing companies; provided that neither Company nor any Affiliate of Company shall be an Eligible Assignee.

  
 “Employee Benefit Plan”
means any “employee benefit plan” as defined in Section 3(3) of ERISA which is or was maintained or contributed to by Company, any of its Subsidiaries or any of their respective ERISA Affiliates. 
  
 “Environmental Claim” means any
investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Government Authority or any other Person, arising (i) pursuant to or in connection
with any actual or alleged violation of any Environmental Law, or (ii) in connection with any Hazardous Materials or any actual or alleged Hazardous Materials Activity. 
  
 “Environmental Laws” means any and all current or future statutes, ordinances, orders,
rules, regulations, guidance documents, judgments, Governmental Authorizations, or any other requirements of any Government Authority relating to (i) environmental matters, including those relating to any Hazardous Materials Activity, (ii) the
generation, use, storage, transportation or disposal of Hazardous Materials, or (iii) occupational safety and health, industrial hygiene, land use or the protection of human, plant or animal health or welfare, in any manner applicable to Company or
any of its Subsidiaries or any Facility. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor thereto. 
  
 “ERISA Affiliate”, as applied to any Person, means (i) any corporation that is a member of a controlled group of
corporations within the meaning of Section 414(b) of the Internal Revenue Code of which that Person is a member; (ii) any trade or business (whether or not incorporated) that is a member of a group of trades or businesses under common control within
the meaning of Section 414(c) of the Internal Revenue Code of which that Person is a member; and (iii) any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code of which that Person, any
corporation described in clause (i) above or any trade or business described in clause (ii) above is a member. Any former ERISA Affiliate of a Person or any of its Subsidiaries shall continue to be considered an ERISA Affiliate of such Person or
such Subsidiary within the meaning of this definition with respect to the period such entity was an ERISA Affiliate of such Person or such Subsidiary and with 

  

 9 

 
respect to liabilities arising after such period for which such Person or such Subsidiary could be liable under the Internal Revenue Code or ERISA.

  
 “ERISA Event” means (i) a
“reportable event” within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those for which the provision for 30-day notice to the PBGC has been waived by regulation);
(ii) the failure to meet the minimum funding standard of Section 412 of the Internal Revenue Code with respect to any Pension Plan (whether or not waived in accordance with Section 412(d) of the Internal Revenue Code) or the failure to make by its
due date a required installment under Section 412(m) of the Internal Revenue Code with respect to any Pension Plan or the failure to make any required contribution to a Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan
pursuant to Section 4041(a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA; (iv) the withdrawal by Company, any of its Subsidiaries or any of their respective ERISA Affiliates
from any Pension Plan with two or more contributing sponsors or the termination of any such Pension Plan resulting in liability pursuant to Section 4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension Plan,
or the occurrence of any event or condition which might constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (vi) the imposition of liability on Company, any of its Subsidiaries or
any of their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal of Company, any of its Subsidiaries or any of their respective ERISA Affiliates
in a complete or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential liability therefor, or the receipt by Company, any of its Subsidiaries or any of their respective ERISA
Affiliates of notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA; (viii) the assertion of a
material claim (other than routine claims for benefits) against any Employee Benefit Plan other than a Multiemployer Plan or the assets thereof, or against Company, any of its Subsidiaries or any of their respective ERISA Affiliates in connection
with any Employee Benefit Plan; (ix) receipt from the Internal Revenue Service of notice of the failure of any Pension Plan (or any other Employee Benefit Plan intended to be qualified under Section 401(a) of the Internal Revenue Code) to qualify
under Section 401(a) of the Internal Revenue Code, or the failure of any trust forming part of any Pension Plan to qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or (x) the imposition of a Lien pursuant to
Section 401(a)(29) or 412(n) of the Internal Revenue Code or pursuant to ERISA with respect to any Pension Plan. 
  
 “Eurodollar Rate” means, for any Interest Rate Determination Date with respect to an Interest Period for a Eurodollar
Rate Loan, the rate per annum obtained by dividing (i) (a) the rate per annum (rounded upward to the nearest 1/16 of one percent) that appears on the Moneyline Telerate page 3750 (or such other comparable page as may, in the opinion of
Administrative Agent, replace such page for the purpose of displaying such rate) as the London interbank offered rate for Dollar deposits with maturities comparable to such Interest Period as of approximately 11:00 a.m. (London time) on such
Interest Rate Determination Date or (b) if such 

  

 10 

 
rate is not available at such time for any reason, the arithmetic average (rounded upward to the nearest 1/16 of one percent) of the offered quotations, if
any, to first class banks in the London interbank Eurodollar market by Wells Fargo for Dollar deposits of amounts in same day funds comparable to the principal amount of the Eurodollar Rate Loan of Wells Fargo for which the Eurodollar Rate is then
being determined with maturities comparable to such Interest Period as of approximately 11:00 A.M. (New York time) on such Interest Rate Determination Date by (ii) a percentage equal to 100% minus the stated maximum rate of all reserve
requirements (including any marginal, emergency, supplemental, special or other reserves) applicable on such Interest Rate Determination Date to any member bank of the Federal Reserve System in respect of “Eurocurrency liabilities” as
defined in Regulation D (or any successor category of liabilities under Regulation D). 
  
 “Eurodollar Rate Loans” means Loans bearing interest at rates determined by reference to the Eurodollar Rate as provided
in subsection 2.2A. 
  
 “Eurodollar Rate
Margin” means the margin over the Eurodollar Rate used in determining the rate of interest of Revolving Loans that are Eurodollar Rate Loans pursuant to subsection 2.2A. 
  
 “Event of Default” means each of the events set forth in Section 8. 
  
 “Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time, and any successor statute. 
  
 “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, or any other recipient of any payment to be
made by or on account of any obligation of Company hereunder (i) taxes that are imposed on the overall net income (however denominated) and franchise taxes imposed in lieu thereof (a) by the United States, (b) by any other Government Authority under
the laws of which such Lender is organized or has its principal office or maintains its applicable lending office, or (c) by any Government Authority solely as a result of a present or former connection between such recipient and the jurisdiction of
such Government Authority (other than any such connection arising solely from such recipient having executed, delivered or performed its obligations or received a payment under, or enforced, any of the Loan Documents), (ii) any branch profits taxes
imposed by the United States or any similar tax imposed by any other jurisdiction in which Company is located, and (iii) in the case of a Foreign Lender (other than an assignee pursuant to a request of Company under subsection 2.9), any withholding
tax that (x) is imposed on amounts payable to such Foreign Lender at the time it becomes a party hereto (or designates a new lending office), (y) is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change
in Law) to comply with its obligations under subsection 2.7B(iv), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts
from Company with respect to such withholding tax pursuant to subsection 2.7B, or (z) is required to be deducted under applicable law from any payment hereunder on the basis of the information provided by such Foreign Lender pursuant to clause (d)
of subsection 2.7B(iv). 
  

 11 

 “Existing Credit Agreement” means that certain Loan and Security
Agreement dated as of March 31, 2004 by and among Company, the Subsidiaries party thereto and Wells Fargo Foothill, Inc., as the arranger and administrative agent. 
  
 “Existing Letters of Credit” means the letters of credit listed on Schedule 1.1
annexed hereto. 
  
 “Facilities”
means any and all real property (including all buildings, fixtures or other improvements located thereon) now, hereafter or heretofore owned, leased, operated or used by Company or any of its Subsidiaries or any of their respective predecessors or
Affiliates. 
  
 “Federal Funds Effective
Rate” means, for any period, a fluctuating interest rate equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds
brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the
quotations for such day on such transactions received by Administrative Agent from three Federal funds brokers of recognized standing selected by Administrative Agent. 
  
 “Financial Plan” has the meaning assigned to that term in subsection 6.1(xii). 

 
 “First Priority” means, with respect to
any Lien purported to be created in any Collateral pursuant to any Collateral Document, that (i) such Lien is perfected and has priority over any other Lien on such Collateral (other than Liens permitted pursuant to subsection 7.2A) and (ii) such
Lien is the only Lien (other than Liens permitted pursuant to subsection 7.2A) to which such Collateral is subject. 
  
 “First Union Warrant” means the warrant dated as of September 17, 1999 issued by Company (f/k/a Ruth U. Fertel, Inc.) to
First Union Investors, Inc. pursuant to that certain Common Stock Purchase Warrant dated as of September 17, 1999. 
  
 “Fiscal Month” means a monthly fiscal period of Company and its Subsidiaries ending on the last Sunday in each calendar
month. 
  
 “Fiscal Quarter”
means a quarterly fiscal period of Company and its Subsidiaries ending on the last Sunday in March, June, September and December of each calendar year. 
  
 “Fiscal Year” means the fiscal year of Company and its Subsidiaries ending on the last Sunday in December of each
calendar year. 
  
 “Flood Hazard
Property” means a Closing Date Mortgaged Property or an Additional Mortgaged Property located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards. 
  

 12 

 “Foreign Lender” means any Lender that is organized under the laws of a
jurisdiction other than that in which Company is resident for tax purposes. For purposes of this definition, the United States, each state thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
  
 “Foreign Subsidiary” means any Subsidiary
of Company that is not a Domestic Subsidiary. 
  
 “Franchise EBITDA” means, for any period, with respect to each Ruth’s Chris restaurant franchise acquired by Company or any of its Subsidiaries during such period, the sum, without duplication, of the amounts for such
period of (i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) provisions for taxes based on income, (iv) total depreciation expense, and (v) total amortization expense, in the case of clauses (ii)-(v), to the extent deducted in
the calculation of Consolidated Net Income, determined for such franchise in conformity with GAAP. For purposes of determining Franchise EBITDA, references in the definitions of “Consolidated Net Income” and “Consolidated Interest
Expense” to Company and its Subsidiaries shall be deemed to refer to such franchise. 
  
 “Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
  
 “Funding and Payment Office” means (i) the office of Administrative Agent and Swing Line Lender located at 201 3rd
Street, 8th Floor, San Francisco, California 94103 or (ii) such other office of Administrative Agent and Swing Line Lender as may from time to time hereafter be designated as such in a written notice delivered by Administrative Agent and Swing Line
Lender to Company and each Lender. 
  
 “Funding Date” means the date of funding of a Loan. 
  
 “GAAP” means, subject to the limitations on the application thereof set forth in subsection 1.2, generally accepted accounting principles set forth in opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of
the accounting profession, in each case as the same are applicable to the circumstances as of the date of determination. 
  
 “Governing Body” means the board of directors or other body having the power to direct or cause the direction of the
management and policies of a Person that is a corporation, partnership, trust or limited liability company. 
  
 “Government Authority” means the government of the United States or any other nation, or any state, regional or local
political subdivision or department thereof, and any other governmental or regulatory agency, authority, body, commission, central bank, board, bureau, organ, court, instrumentality or other entity exercising executive, legislative, judicial,

  

 13 

 
taxing, regulatory or administrative powers or functions of or pertaining to government, in each case whether federal, state, local or foreign (including
supra-national bodies such as the European Union or the European Central Bank). 
  
 “Governmental Authorization” means any permit, license, registration, authorization, plan, directive, accreditation,
consent, order or consent decree of or from, or notice to, any Government Authority. 
  
 “GS Warrants” means (i) the warrant dated as of September 17, 1999 issued by Company (f/k/a Ruth U. Fertel, Inc.) to GS
Mezzanine Partners, L.P. pursuant to that certain Common Stock Purchase Warrant dated as of September 17, 1999 and (ii) the warrant dated as of September 17, 1999 issued by Company (f/k/a Ruth U. Fertel, Inc.) to GS Mezzanine Partners Offshore, L.P.
pursuant to that certain Common Stock Purchase Warrant dated as of September 17, 1999. 
  
 “Hazardous Materials” means (i) any chemical, material or substance at any time defined as or included in the definition
of “hazardous substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous waste”, “acutely hazardous waste”, “radioactive waste”, “biohazardous waste”,
“pollutant”, “toxic pollutant”, “contaminant”, “restricted hazardous waste”, “infectious waste”, “toxic substances”, or any other term or expression intended to define, list or classify
substances by reason of properties harmful to health, safety or the indoor or outdoor environment (including harmful properties such as ignitability, corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, “TCLP
toxicity” or “EP toxicity” or words of similar import under any applicable Environmental Laws); (ii) any oil, petroleum, petroleum fraction or petroleum derived substance; (iii) any drilling fluids, produced waters and other wastes
associated with the exploration, development or production of crude oil, natural gas or geothermal resources; (iv) any flammable substances or explosives; (v) any radioactive materials; (vi) any asbestos-containing materials; (vii) urea formaldehyde
foam insulation; (viii) electrical equipment which contains any oil or dielectric fluid containing polychlorinated biphenyls; (ix) pesticides; and (x) any other chemical, material or substance, exposure to which is prohibited, limited or regulated
by any Government Authority or which may or could pose a hazard to the health and safety of the owners, occupants or any Persons in the vicinity of any Facility or to the indoor or outdoor environment. 
  
 “Hazardous Materials Activity” means any
past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

  
 “Hedge Agreement” means an
Interest Rate Agreement or a Currency Agreement designed to hedge against fluctuations in interest rates or currency values, respectively. 
  

 14 

 “Indebtedness”, as applied to any Person, means (i) all indebtedness for
borrowed money, (ii) that portion of obligations with respect to Capital Leases that is properly classified as a liability on a balance sheet in conformity with GAAP, (iii) notes payable and drafts accepted representing extensions of credit whether
or not representing obligations for borrowed money, (iv) any obligation owed for all or any part of the deferred purchase price of property or services (excluding any such obligations incurred under ERISA), which purchase price is (a) due more than
six months from the date of incurrence of the obligation in respect thereof or (b) evidenced by a note or similar written instrument, (v) Synthetic Lease Obligations, and (vi) all indebtedness secured by any Lien on any property or asset owned or
held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is nonrecourse to the credit of that Person. Obligations under Interest Rate Agreements and Currency Agreements constitute (1) in
the case of Hedge Agreements, Contingent Obligations, and (2) in all other cases, Investments, and in neither case constitute Indebtedness. 
  
 “Indemnified Liabilities” has the meaning assigned to that term in subsection 10.3. 
  
 “Indemnified Taxes” means Taxes other than
Excluded Taxes. 
  
 “Indemnitee”
has the meaning assigned to that term in subsection 10.3. 
  
 “Intellectual Property” means all patents, trademarks, tradenames, copyrights, technology, software, know-how and processes used in or necessary for the conduct of the business of Company and its
Subsidiaries. 
  
 “Interest Payment
Date” means (i) with respect to any Base Rate Loan, each March 31, June 30, September 30 and December 31 of each calendar year, commencing on the first such date to occur after the Closing Date, and (ii) with respect to any Eurodollar Rate
Loan, the last day of each Interest Period applicable to such Loan; provided that in the case of each Interest Period of six months “Interest Payment Date” shall also include the date that is three months after the commencement of
such Interest Period. 
  
 “Interest
Period” has the meaning assigned to that term in subsection 2.2B. 
  
 “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement or arrangement to which Company or any of its
Subsidiaries is a party. 
  
 “Interest
Rate Determination Date”, with respect to any Interest Period, means the second Business Day prior to the first day of such Interest Period. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time
hereafter, and any successor statute. 
  

 15 

 “Investment” means (i) any direct or indirect purchase or other
acquisition by Company or any of its Subsidiaries of, or of a beneficial interest in, any Securities of any other Person (including any Subsidiary of Company,), (ii) any direct or indirect redemption, retirement, purchase or other acquisition for
value, by any Subsidiary of Company from any Person other than Company or any of its Subsidiaries, of any equity Securities of such Subsidiary, (iii) any direct or indirect loan, advance (other than advances to employees for moving, entertainment
and travel expenses, drawing accounts and similar expenditures in the ordinary course of business) or capital contribution by Company or any of its Subsidiaries to any other Person, including all indebtedness and accounts receivable from that other
Person that are not current assets or did not arise from sales to that other Person in the ordinary course of business, or (iv) Interest Rate Agreements or Currency Agreements not constituting Hedge Agreements. The amount of any Investment shall be
the original cost of such Investment plus the cost of all additions thereto, without any adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with respect to such Investment (other than adjustments for the
repayment of, or the refund of capital with respect to, the original principal amount of any such Investment). 
  
 “IP Collateral” means, collectively, the Intellectual Property that constitutes Collateral under the Security Agreement.

  
 “IP Filing Office” means the
United States Patent and Trademark Office, the United States Copyright Office or any successor or substitute office in which filings are necessary or, in the opinion of Administrative Agent, desirable in order to create or perfect Liens on, or
evidence the interest of Administrative Agent and Lenders in, any IP Collateral. 
  
 “Issuing Lender” means Wells Fargo, in its capacity as Issuing Lender. 
  
 “Joint Venture” means a joint venture,
partnership or other similar arrangement, whether in corporate, partnership or other legal form. 
  
 “Leasehold Property” means any leasehold interest of any Loan Party as lessee under any lease of real property, other
than any such leasehold interest designated from time to time by Administrative Agent in its sole discretion as not being required to be included in the Collateral. 
  
 “Lender” and “Lenders” means the Persons identified as “Lenders”
and listed on the signature pages of this Agreement, together with their successors and permitted assigns pursuant to subsection 10.1, and the term “Lenders” shall include Swing Line Lender unless the context otherwise requires;
provided that the term “Lenders”, when used in the context of a particular Commitment, shall mean Lenders having that Commitment. 
  
 “Letter of Credit” or “Letters of Credit” means Commercial Letters of Credit and Standby Letters of
Credit issued or to be issued by Issuing Lender for the account of Company pursuant to subsection 3.1 and shall include the Existing Letters of Credit. 
  

 16 

 “Letter of Credit Usage” means, as at any date of determination, the sum
of (i) the maximum aggregate amount which is or at any time thereafter may become available for drawing under all Letters of Credit then outstanding plus (ii) the aggregate amount of all drawings under Letters of Credit honored by Issuing
Lender and not theretofore reimbursed out of the proceeds of Revolving Loans pursuant to subsection 3.3B or otherwise reimbursed by Company. 
  
 “Lien” means any lien, mortgage, pledge, assignment, security interest, charge or encumbrance of any kind (including any
conditional sale or other title retention agreement, any lease in the nature thereof, and any agreement to give any security interest) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing.

  
 “Loan” or
“Loans” means one or more of the Loans made by Lenders to Company pursuant to subsection 2.1A. 
  
 “Loan Documents” means this Agreement, the Notes, the Letters of Credit (and any applications for, or reimbursement
agreements or other documents or certificates executed by Company in favor of Issuing Lender relating to, the Letters of Credit), the Subsidiary Guaranty and the Collateral Documents. 
  
 “Loan Party” means each of Company and any of Company’s Subsidiaries from time to time
executing a Loan Document, and “Loan Parties” means all such Persons, collectively. 
  
 “Madison Dearborn” means Madison Dearborn Capital Partners III, L.P. 
  
 “Manhattan UN Facility” means the property
located at 885 Second Avenue, New York, New York. 
  
 “Margin Stock” has the meaning assigned to that term in Regulation U of the Board of Governors of the Federal Reserve System as in effect from time to time. 
  
 “Material Adverse Effect” means a material adverse effect upon (i) the business,
operations, properties, assets, liabilities, condition (financial or otherwise) or prospects of Company and its Subsidiaries taken as a whole or (ii) the ability of any Loan Party to perform, or of Administrative Agent or Lenders to enforce, the
Obligations. 
  
 “Moody’s”
has the meaning assigned to that term in the definition of Cash Equivalents. 
  
 “Mortgage” means (i) a security instrument (whether designated as a deed of trust or a mortgage or by any similar title)
executed and delivered by any Loan Party, substantially in the form of Exhibit XII annexed hereto or in such other form as may be approved by Administrative Agent in its sole discretion, in each case with such changes thereto as may be
recommended by Administrative Agent’s local counsel based on local laws or customary local mortgage or deed of trust practices, or (ii) at Administrative Agent’s option, in the case of an 

  

 17 

 
Additional Mortgaged Property, an amendment to an existing Mortgage, in form satisfactory to Administrative Agent, adding such Additional Mortgaged Property
to the Real Property Assets encumbered by such existing Mortgage. “Mortgages” means all such instruments, including the Closing Date Mortgages and any Additional Mortgages, collectively. 
  
 “Multiemployer Plan” means any Employee
Benefit Plan that is a “multiemployer plan” as defined in Section 3(37) of ERISA. 
  
 “Net Asset Sale Proceeds”, with respect to any Asset Sale, means Cash payments (including any Cash received by way of
deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) received from such Asset Sale, net of any bona fide direct costs incurred in connection with such Asset Sale, including (i) income
taxes reasonably estimated to be actually payable within two years of the date of such Asset Sale as a result of any gain recognized in connection with such Asset Sale and (ii) payment of the outstanding principal amount of, premium or penalty, if
any, and interest on any Indebtedness (other than the Loans) that is (a) secured by a Lien on the stock or assets in question and that is required to be repaid under the terms thereof as a result of such Asset Sale and (b) actually paid at the time
of receipt of such cash payment to a Person that is not an Affiliate of any Loan Party or of any Affiliate of a Loan Party. 
  
 “Net Insurance/Condemnation Proceeds” means any Cash payments or proceeds received by Company or any of its Subsidiaries
(i) under any business interruption or casualty insurance policy in respect of a covered loss thereunder or (ii) as a result of the taking of any assets of Company or any of its Subsidiaries by any Person pursuant to the power of eminent domain,
condemnation or otherwise, or pursuant to a sale of any such assets to a purchaser with such power under threat of such a taking, in each case net of any actual and reasonable documented costs incurred by Company or any of its Subsidiaries in
connection with the adjustment or settlement of any claims of Company or such Subsidiary in respect thereof. 
  
 “Net Securities Proceeds” means the cash proceeds (net of underwriting discounts and commissions and other reasonable
costs and expenses associated therewith, including reasonable legal fees and expenses) from the (i) issuance of Capital Stock of or incurrence of Indebtedness by Company or any of its Subsidiaries and (ii) capital contributions made by a holder of
Capital Stock of Company. 
  
 “Non-Consenting Lender” has the meaning assigned to that term in subsection 2.9. 
  
 “Notes” means one or more of the Term Notes, Revolving Notes or Swing Line Note or any combination thereof. 

 
 “Notice of Borrowing” means a notice
substantially in the form of Exhibit I annexed hereto. 
  
 “Notice of Conversion/Continuation” means a notice substantially in the form of Exhibit II annexed hereto. 
  

 18 

 “Obligations” means all obligations of every nature of each Loan Party
from time to time owed to Administrative Agent, Lenders or any of them under the Loan Documents, whether for principal, interest, reimbursement of amounts drawn under Letters of Credit, fees, expenses, indemnification or otherwise. 
  
 “Officer” means the president, chief
executive officer, a vice president, chief financial officer, treasurer, general partner (if an individual), managing member (if an individual) or other individual appointed by the Governing Body or the Organizational Documents of a corporation,
partnership, trust or limited liability company to serve in a similar capacity as the foregoing. 
  
 “Officer’s Certificate”, as applied to any Person that is a corporation, partnership, trust or limited liability
company, means a certificate executed on behalf of such Person by one or more Officers of such Person or one or more Officers of a general partner or a managing member if such general partner or managing member is a corporation, partnership, trust
or limited liability company. 
  
 “Operating Lease”, as applied to any Person, means any lease (including leases that may be terminated by the lessee at any time) of any property (whether real, personal or mixed) that is not a Capital Lease other than any
such lease under which that Person is the lessor. 
  
 “Organizational Documents” means the documents (including bylaws, if applicable) pursuant to which a Person that is a corporation, partnership, trust or limited liability company is organized. 
  
 “Other Taxes” means all present or future
stamp or documentary taxes or any other excise or property taxes, charges, fees, expenses or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document. 
  
 “Participant” means a purchaser of a participation in the rights and obligations under this Agreement pursuant to subsection 10.1C. 
  

“PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto. 
  
 “Pension Plan” means any Employee Benefit
Plan, other than a Multiemployer Plan, that is subject to Section 412 of the Internal Revenue Code or Section 302 of ERISA. 
  
 “Permitted Encumbrances” means the following types of Liens (excluding any such Lien imposed pursuant to Section
401(a)(29) or 412(n) of the Internal Revenue Code or by ERISA, any such Lien relating to or imposed in connection with any Environmental Claim, and any such Lien expressly prohibited by any applicable terms of any of the Collateral Documents):

  
 (i) Liens for taxes, assessments or governmental charges or
claims the payment of which is not, at the time, required by subsection 6.3; 
  

 19 

 (ii) statutory Liens of landlords, Liens of collecting banks under the UCC on items in the course of
collection, statutory Liens and rights of set-off of banks as to deposit accounts, provided that, in each case, (a) such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by Company
or any of its Subsidiaries owning the affected deposit account in excess of those set forth by regulations promulgated by the Federal Reserve Board or any foreign regulatory agency performing an equivalent function, and (b) such deposit account is
not intended by Company or any of its Subsidiaries to provide collateral (other than such as is ancillary to the establishment of such deposit account) to the bank, statutory Liens of carriers, warehousemen, mechanics, repairmen, workmen and
materialmen, and other Liens imposed by law, in each case incurred in the ordinary course of business (1) for amounts not yet overdue or (2) for amounts that are overdue and that (in the case of any such amounts overdue for a period in excess of 5
days) are being contested in good faith by appropriate proceedings, so long as (x) such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts, and (y) in the case of a Lien
with respect to any portion of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral on account of such Lien; 
  
 (iii) deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance
and other types of social security, or to secure the performance of statutory obligations, bids, leases, government contracts, trade contracts, and other similar obligations (exclusive of obligations for the payment of borrowed money), so long as no
foreclosure, sale or similar proceedings have been commenced with respect to any portion of the Collateral on account thereof; 
  
 (iv) any attachment or judgment Lien not constituting an Event of Default under subsection 8.8 or 8.9; 
  
 (v) licenses (with respect to Intellectual Property and other property),
leases or subleases granted to third parties in accordance with any applicable terms of the Collateral Documents and not interfering in any material respect with the ordinary conduct of the business of Company or any of its Subsidiaries or resulting
in a material diminution in the value of any Collateral as security for the Obligations; 
  
 (vi) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title, in each case which do not and will not interfere in any material respect with the ordinary conduct of the
business of Company or any of its Subsidiaries or result in a material diminution in the value of any Collateral as security for the Obligations; 
  
 (vii) any (a) interest or title of a lessor or sublessor under any lease not prohibited by this Agreement, (b) Lien or restriction that the interest or
title of 

  

 20 

 
such lessor or sublessor may be subject to, or (c) subordination of the interest of the lessee or sublessee under such lease to any Lien or restriction
referred to in the preceding clause (b), so long as the holder of such Lien or restriction agrees to recognize the rights of such lessee or sublessee under such lease; 
  
 (viii) Liens arising from filing UCC financing statements relating solely to leases not prohibited by this Agreement;

  
 (ix) Liens in favor of customs and revenue authorities
arising as a matter of law to secure payment of customs duties in connection with the importation of goods; 
  
 (x) any zoning or similar law or right reserved to or vested in any Government Authority to control or regulate the use of any real property; 

 
 (xi) Liens granted pursuant to the Collateral Documents; and 

 
 (xii) Liens securing obligations (other than obligations representing
Indebtedness for borrowed money) under operating, reciprocal easement or similar agreements entered into in the ordinary course of business of Company and its Subsidiaries. 
  
 “Person” means and includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships, joint stock companies, Joint Ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal
entities, and Government Authorities. 
  
 “Platform” means an electronic delivery system (which may be provided by Administrative Agent, an Affiliate of Administrative Agent or any Person that is not an Affiliate of Administrative Agent), such as IntraLinks or a
substantially similar electronic system. 
  
 “Pledged Collateral” means, collectively, the “Pledged Collateral” as defined in the Security Agreement. 
  
 “Potential Event of Default” means a condition or event that, after notice or lapse of time or both, would constitute an
Event of Default. 
  
 “Preferred
Stock” means (i) the Senior Preferred Stock and (ii) the Series B Junior Cumulative Preferred Stock, par value $0.01 per share, of Company. 
  
 “Preferred Stock Purchase Agreement” means the Securities Purchase Agreement dated as of September 17, 1999 by and
between Company (f/k/a Ruth U. Fertel, Inc.) and First Union Investors, Inc. 
  
 “Pricing Certificate” means an Officer’s Certificate of Company certifying the Consolidated Pricing Leverage Ratio as at the last day of any Fiscal Quarter and setting forth the calculation of
such Consolidated Pricing Leverage Ratio in reasonable detail. 
  

 21 

 “Prime Rate” means the rate that Wells Fargo publicly announces from
time to time as its prime lending rate, as in effect from time to time. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. Wells Fargo or any other Lender may make
commercial loans or other loans at rates of interest at, above or below the Prime Rate. 
  
 “Proceedings” means any action, suit, proceeding (whether administrative, judicial or otherwise), governmental
investigation or arbitration. 
  
 “Pro
Forma Basis”, with respect to any determination of Consolidated EBITDA or Consolidated Pricing EBITDA for any period, means adjusting the calculation of Consolidated EBITDA or Consolidated Pricing EBITDA, as the case may be, to include, for
each Ruth’s Chris restaurant franchise acquired by Company or any of its Subsidiaries during such period and not subsequently sold, transferred or otherwise disposed of prior to the end of such period, Franchise EBITDA for such period as
reflected in the financial statements of such franchise for such period delivered to Company and Administrative Agent (as if such franchise were acquired on the first day of such period). 
  
 “Pro Rata Share” means (i) with respect to
all payments, computations and other matters relating to the Term Loan Commitment or the Term Loan of any Lender, the percentage obtained by dividing (x) the Term Loan Exposure of that Lender by (y) the aggregate Term Loan Exposure of
all Lenders, (ii) with respect to all payments, computations and other matters relating to the Revolving Loan Commitment or the Revolving Loans of any Lender or any Letters of Credit issued or participations therein deemed purchased by any Lender or
any assignments of any Swing Line Loans deemed purchased by any Lender, the percentage obtained by dividing (x) the Revolving Loan Exposure of that Lender by (y) the aggregate Revolving Loan Exposure of all Lenders, and (iii) for all
other purposes with respect to each Lender, the percentage obtained by dividing (x) the sum of the Term Loan Exposure of that Lender plus the Revolving Loan Exposure of that Lender by (y) the sum of the aggregate Term Loan
Exposure of all Lenders plus the aggregate Revolving Loan Exposure of all Lenders, in any such case as the applicable percentage may be adjusted by assignments permitted pursuant to subsection 10.1. The initial Pro Rata Share of each Lender
for purposes of each of clauses (i), (ii) and (iii) of the preceding sentence is set forth opposite the name of that Lender in Schedule 2.1 annexed hereto. 
  
 “Real Property Asset” means, at any time of determination, any interest then owned by any
Loan Party in any real property. 
  
 “Real Property Operating Lease”, as applied to any Person, means any lease (including leases that may be terminated by the lessee at any time) of any real property that is not a Capital Lease other than any such lease under
which that Person is the lessor. 
  
 “Refunded Swing Line Loans” has the meaning assigned to that term in subsection 2.1A(iii). 
  
 “Register” has the meaning assigned to that term in subsection 2.1D. 
  

 22 

 “Regulation D” means Regulation D of the Board of Governors of the
Federal Reserve System, as in effect from time to time. 
  
 “Reimbursement Date” has the meaning assigned to that term in subsection 3.3B. 
  
 “Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal,
discharge, dispersal, dumping, leaching or migration of Hazardous Materials into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Materials),
including the movement of any Hazardous Materials through the air, soil, surface water or groundwater. 
  
 “Request for Issuance” means a request substantially in the form of Exhibit III annexed hereto. 
  
 “Requisite Class Lenders” means, at any
time of determination (i) for the Class of Lenders having Revolving Loan Exposure, Lenders having or holding more than 50% of the aggregate Revolving Loan Exposure of all Lenders, and (ii) for the Class of Lenders having Term Loan Exposure, Lenders
having or holding more than 50% of the aggregate Term Loan Exposure of all Lenders. 
  
 “Requisite Lenders” means Lenders having or holding more than 50% of the sum of the aggregate Term Loan Exposure of all
Lenders plus the aggregate Revolving Loan Exposure of all Lenders. 
  
 “Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect, on account of any shares of any class of stock of Company now or hereafter outstanding, except a dividend
payable solely in shares of that class of stock to the holders of that class, (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of stock of
Company now or hereafter outstanding, (iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of stock of Company now or hereafter outstanding, and (iv) any
payment or prepayment of principal of, premium, if any, or interest on, or redemption, purchase, retirement, defeasance (including in-substance or legal defeasance), sinking fund or similar payment with respect to, any Subordinated Indebtedness.

  
 “Revolving Lender” means a
Lender that has a Revolving Loan Commitment and/or that has an outstanding Revolving Loan. 
  
 “Revolving Loan Commitment” means the commitment of a Revolving Lender to make Revolving Loans to Company pursuant to
subsection 2.1A(ii), and “Revolving Loan Commitments” means such commitments of all Revolving Lenders in the aggregate. 
  

 23 

 “Revolving Loan Commitment Amount” means, at any date, the aggregate
amount of the Revolving Loan Commitments of all Revolving Lenders. 
  
 “Revolving Loan Commitment Termination Date” means March 11, 2010. 
  
 “Revolving Loan Exposure”, with respect to any Revolving Lender, means, as of any date of determination (i) prior to the
termination of the Revolving Loan Commitments, the amount of that Lender’s Revolving Loan Commitment, and (ii) after the termination of the Revolving Loan Commitments, the sum of (a) the aggregate outstanding principal amount of the Revolving
Loans of that Lender plus (b) in the event that Lender is an Issuing Lender, the aggregate Letter of Credit Usage in respect of all Letters of Credit issued by that Lender (in each case net of any participations purchased by other Lenders in
such Letters of Credit or in any unreimbursed drawings thereunder) plus (c) the aggregate amount of all participations purchased by that Lender in any outstanding Letters of Credit or any unreimbursed drawings under any Letters of Credit
plus (d) in the case of Swing Line Lender, the aggregate outstanding principal amount of all Swing Line Loans (net of any assignments thereof deemed purchased by other Revolving Lenders) plus (e) the aggregate amount of all assignments
deemed purchased by that Lender in any outstanding Swing Line Loans. 
  
 “Revolving Loans” means the Loans made by Revolving Lenders to Company pursuant to subsection 2.1A(ii). 
  
 “Revolving Notes” means any promissory notes of Company issued pursuant to subsection 2.1E to evidence the Revolving
Loans of any Revolving Lenders, substantially in the form of Exhibit V annexed hereto. 
  
 “S&P” has the meaning assigned to that term in the definition of Cash Equivalents. 
  
 “Securities” means any stock, shares,
partnership interests, voting trust certificates, certificates of interest or participation in any profit-sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated, certificated or uncertificated, or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the
purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing. 
  
 “Securities Account” means an account to which a financial asset is or may be credited in accordance with an agreement
under which the Person maintaining the account undertakes to treat the Person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset. 
  
 “Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor statute. 
  

 24 

 “Security Agreement” means the Security Agreement executed and delivered
on the Closing Date, substantially in the form of Exhibit XI annexed hereto. 
  
 “Senior Preferred Stock” means the Series A Senior Cumulative Preferred Stock, par value $0.01 per share, of Company.

  
 “Senior Subordinated Notes”
means the 13% Senior Subordinated Notes due 2006 of Company issued to GS Mezzanine Partners, L.P. and GS Mezzanine Partners Offshore, L.P. 
  
 “Solvent”, with respect to any Person, means that as of the date of determination both (i)(a) the then fair saleable
value of the property of such Person is (1) greater than the total amount of liabilities (including contingent liabilities) of such Person and (2) not less than the amount that will be required to pay the probable liabilities on such Person’s
then existing debts as they become absolute and due considering all financing alternatives and potential asset sales reasonably available to such Person; (b) such Person’s capital is not unreasonably small in relation to its business or any
contemplated or undertaken transaction; and (c) such Person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (ii) such Person is
“solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as
the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  
 “Standby Letter of Credit” means any letter of credit or similar instrument other than a
Commercial Letter of Credit. 
  
 “Subject
Lender” has the meaning assigned to that term in subsection 2.9. 
  
 “Subordinated Indebtedness” means any Indebtedness of Company incurred from time to time and subordinated in right of payment to the Obligations. 
  
 “Subsidiary”, with respect to any Person,
means any corporation, partnership, trust, limited liability company, association, Joint Venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to
the occurrence of any contingency) to vote in the election of the members of the Governing Body is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination
thereof. 
  
 “Subsidiary
Guarantor” means any Domestic Subsidiary of Company that executes and delivers a counterpart of the Subsidiary Guaranty on the Closing Date or from time to time thereafter pursuant to subsection 6.8. 
  
 “Subsidiary Guaranty” means the Subsidiary
Guaranty executed and delivered by existing Domestic Subsidiaries of Company on the Closing Date and to be executed and 

  

 25 

 
delivered by additional Domestic Subsidiaries of Company from time to time thereafter in accordance with subsection 6.8, substantially in the form of
Exhibit X annexed hereto. 
  
 “Sugar Land Facility” means the property located at 14135 Southwest Freeway, Sugar Land, Texas. 
  
 “Supplemental Collateral Agent” has the meaning assigned to that term in subsection 9.1B. 
  
 “Swap Counterparty” means a Lender or an
Affiliate of a Lender that has entered into a Hedge Agreement with Company or one of its Subsidiaries, the obligations under which are secured pursuant to the Collateral Documents and guarantied pursuant to the Subsidiary Guaranty. 
  
 “Swing Line Lender” means Wells Fargo, or
any Person serving as a successor Administrative Agent hereunder, in its capacity as Swing Line Lender hereunder. 
  
 “Swing Line Loan Commitment” means the commitment of Swing Line Lender to make Swing Line Loans to Company pursuant to
subsection 2.1A(iii). 
  
 “Swing Line
Loans” means the Loans made by Swing Line Lender to Company pursuant to subsection 2.1A(iii). 
  
 “Swing Line Note” means any promissory note of Company issued pursuant to subsection 2.1E to evidence the Swing Line
Loans of Swing Line Lender, substantially in the form of Exhibit VI annexed hereto. 
  
 “Synthetic Lease Obligation” means the monetary obligation of a Person under (i) a so-called synthetic, off-balance sheet
or tax retention lease, or (ii) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment). 
  
 “Tax” or “Taxes” means any present or future tax, levy, impost, duty, fee, assessment, deduction, withholding or other charge of any nature and whatever called, by whomsoever, on
whomsoever and wherever imposed, levied, collected, withheld or assessed, including interest, penalties, additions to tax and any similar liabilities with respect thereto. 
  
 “Term Loan Commitment” means the commitment of a Lender to make a Term Loan to Company
pursuant to subsection 2.1A(i), and “Term Loan Commitments” means such commitments of all Lenders in the aggregate. 
  
 “Term Loan Exposure”, with respect to any Lender, means, as of any date of determination (i) prior to the funding of the
Term Loans, the amount of that Lender’s Term Loan Commitment, and (ii), after the funding of the Term Loans, the outstanding principal amount of the Term Loan of that Lender. 
  

 26 

 “Term Loans” means the Loans made by Lenders to Company pursuant to
subsection 2.1A(i). 
  
 “Term Loan
Maturity Date” means March 11, 2011. 
  
 “Term Notes” means any promissory notes of Company issued pursuant to subsection 2.1E to evidence the Term Loans of any Lenders, substantially in the form of Exhibit IV annexed hereto. 
  
 “Title Company” means one or more title
insurance companies reasonably satisfactory to Administrative Agent. 
  
 “Total Utilization of Revolving Loan Commitments” means, as at any date of determination, the sum of (i) the aggregate principal amount of all outstanding Revolving Loans plus (ii) the
aggregate principal amount of all outstanding Swing Line Loans plus (iii) the Letter of Credit Usage. 
  
 “Transaction Costs” means the fees, costs and expenses payable by Company on or before the Closing Date in connection
with the transactions contemplated by the Loan Documents. 
  
 “UCC” means the Uniform Commercial Code as in effect in any applicable jurisdiction. 
  
 “UFOC” means Company’s Uniform Franchise Offering Circular. 
  
 “Unasserted Obligations” means, at any
time, Obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities (except for (i) the principal of and interest on, and fees relating to, any Indebtedness and (ii) contingent reimbursement obligations in respect of
amounts that may be drawn under Letters of Credit) in respect of which no claim or demand for payment has been made (or, in the case of Obligations for indemnification, no notice for indemnification has been issued by the Indemnitee) at such time.

  
 “Wells Fargo” has the
meaning assigned to that term in the introduction to this Agreement. 
  

	 	1.2	Accounting Terms; Utilization of GAAP for Purposes of Calculations Under Agreement 

  
 Except as otherwise expressly provided in this Agreement, all accounting terms not otherwise defined herein
shall have the meanings assigned to them in conformity with GAAP. Financial statements and other information required to be delivered by Company to Lenders pursuant to clauses (ii), (iii) and (xii) of subsection 6.1 shall be prepared in accordance
with GAAP as in effect at the time of such preparation. Calculations in connection with the definitions, covenants and other provisions of this Agreement shall utilize GAAP as in effect on the date of determination, applied in a manner consistent
with that used in preparing the financial statements referred to in subsection 5.3. If at any time any change in GAAP would affect the 

  

 27 

 
computation of any financial ratio or requirement set forth in any Loan Document, and Company or Requisite Lenders shall so request, Administrative Agent,
Lenders and Company shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of Requisite Lenders), provided that, until so amended, such
ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and Company shall provide to Administrative Agent and Lenders reconciliation statements provided for in subsection 6.1(v). 
  

	 	1.3	Other Definitional Provisions and Rules of Construction 

  

A. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending
on the reference. 
  
 B. References to
“Sections” and “subsections” shall be to Sections and subsections, respectively, of this Agreement unless otherwise specifically provided. Section and subsection headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect. 
  
 C. The use in any of the Loan Documents of the word “include” or “including”, when following any general
statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such as
“without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such
general statement, term or matter. 
  
 D.
Unless otherwise expressly provided herein, references to Organizational Documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions,
supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document. 
  

	Section	2. AMOUNTS AND TERMS OF COMMITMENTS AND LOANS 

  

	 	2.1	Commitments; Making of Loans; the Register; Optional Notes 

  
 A. Commitments. Subject to the terms and conditions of this Agreement and in reliance
upon the representations and warranties of Company herein set forth, each Lender hereby severally agrees to make the Loans as described in subsections 2.1A(i) and 2.1A(ii) and Swing Line Lender hereby agrees to make the Swing Line Loans as described
in subsection 2.1A(iii). 
  
 (i) Term
Loans. Each Lender that has a Term Loan Commitment severally agrees to lend to Company on the Closing Date an amount not exceeding its Pro Rata Share of the aggregate amount of the Term Loan Commitments to be used for the 

  

 28 

 
purposes identified in subsection 2.5A. The amount of each Lender’s Term Loan Commitment is set forth opposite its name on Schedule 2.1 annexed
hereto and the aggregate amount of the Term Loan Commitments is $105,000,000; provided that the amount of the Term Loan Commitment of each Lender shall be adjusted to give effect to any assignment of such Term Loan Commitment pursuant to
subsection 10.1B. Company may make only one borrowing under the Term Loan Commitments. Amounts borrowed under this subsection 2.1A(i) and subsequently repaid or prepaid may not be reborrowed. 
  
 (ii) Revolving Loans. Each Revolving Lender severally
agrees, subject to the limitations set forth below with respect to the maximum amount of Revolving Loans permitted to be outstanding from time to time, to lend to Company from time to time during the period from the Closing Date to but excluding the
Revolving Loan Commitment Termination Date an aggregate amount not exceeding its Pro Rata Share of the aggregate amount of the Revolving Loan Commitments to be used for the purposes identified in subsection 2.5B. The original amount of each
Revolving Lender’s Revolving Loan Commitment is set forth opposite its name on Schedule 2.1 annexed hereto and the original Revolving Loan Commitment Amount is $15,000,000; provided that the amount of the Revolving Loan Commitment
of each Revolving Lender shall be adjusted to give effect to any assignment of such Revolving Loan Commitment pursuant to subsection 10.1B and shall be reduced from time to time by the amount of any reductions thereto made pursuant to subsection
2.4. Each Revolving Lender’s Revolving Loan Commitment shall expire on the Revolving Loan Commitment Termination Date and all Revolving Loans and all other amounts owed hereunder with respect to the Revolving Loans and the Revolving Loan
Commitments shall be paid in full no later than that date. Amounts borrowed under this subsection 2.1A(ii) may be repaid and reborrowed to but excluding the Revolving Loan Commitment Termination Date. 
  
 Anything contained in this Agreement to the contrary
notwithstanding, the Revolving Loans and the Revolving Loan Commitments shall be subject to the limitation that in no event shall the Total Utilization of Revolving Loan Commitments at any time exceed the Revolving Loan Commitment Amount then in
effect. 
  
 (iii) Swing Line Loans.

  
 (a) General Provisions. Swing Line
Lender hereby agrees, subject to the limitations set forth in the last paragraph of subsection 2.1A(ii) and set forth below with respect to the maximum amount of Swing Line Loans permitted to be outstanding from time to time, to make a portion of
the Revolving Loan Commitments available to Company from time to time during the period from the Closing Date to but excluding the Revolving Loan Commitment Termination Date by making Swing Line Loans to Company in an aggregate amount not exceeding
the amount of the Swing Line Loan Commitment to be used for the purposes identified in subsection 2.5B, notwithstanding the fact that such Swing Line Loans, when aggregated with Swing Line Lender’s outstanding Revolving Loans and Swing Line
Lender’s Pro Rata Share of the Letter of Credit Usage 

  

 29 

 
then in effect, may exceed Swing Line Lender’s Revolving Loan Commitment. The original amount of the Swing Line Loan Commitment is $5,000,000;
provided that any reduction of the Revolving Loan Commitment Amount made pursuant to subsection 2.4 that reduces the Revolving Loan Commitment Amount to an amount less than the then current amount of the Swing Line Loan Commitment shall
result in an automatic corresponding reduction of the amount of the Swing Line Loan Commitment to the amount of the Revolving Loan Commitment Amount, as so reduced, without any further action on the part of Company, Administrative Agent or Swing
Line Lender. The Swing Line Loan Commitment shall expire on the Revolving Loan Commitment Termination Date and all Swing Line Loans and all other amounts owed hereunder with respect to the Swing Line Loans shall be paid in full no later than that
date. Amounts borrowed under this subsection 2.1A(iii) may be repaid and reborrowed to but excluding the Revolving Loan Commitment Termination Date. 
  
 (b) Swing Line Loan Prepayment with Proceeds of Revolving Loans. With respect to any Swing Line Loans that have not been
voluntarily prepaid by Company pursuant to subsection 2.4B(i), Swing Line Lender may, at any time in its sole and absolute discretion, deliver to Administrative Agent (with a copy to Company), no later than 10:00 A.M. (San Francisco time) on the
first Business Day in advance of the proposed Funding Date, a notice requesting Revolving Lenders to make Revolving Loans that are Base Rate Loans on such Funding Date in an amount equal to the amount of such Swing Line Loans (the “Refunded
Swing Line Loans”) outstanding on the date such notice is given. Company hereby authorizes the giving of any such notice and the making of any such Revolving Loans. Anything contained in this Agreement to the contrary notwithstanding, (1)
the proceeds of such Revolving Loans made by Revolving Lenders other than Swing Line Lender shall be immediately delivered by Administrative Agent to Swing Line Lender (and not to Company) and applied to repay a corresponding portion of the Refunded
Swing Line Loans and (2) on the day such Revolving Loans are made, Swing Line Lender’s Pro Rata Share of the Refunded Swing Line Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by Swing Line Lender, and such portion
of the Swing Line Loans deemed to be so paid shall no longer be outstanding as Swing Line Loans and shall no longer be due under the Swing Line Note, if any, of Swing Line Lender but shall instead constitute part of Swing Line Lender’s
outstanding Revolving Loans and shall be due under the Revolving Note, if any, of Swing Line Lender. Company hereby authorizes Administrative Agent and Swing Line Lender to charge Company’s accounts with Administrative Agent and Swing Line
Lender (up to the amount available in each such account) in order to immediately pay Swing Line Lender the amount of the Refunded Swing Line Loans to the extent the proceeds of such Revolving Loans made by Revolving Lenders, including the Revolving
Loan deemed to be made by Swing Line Lender, are not sufficient to repay in full the Refunded Swing Line Loans. If any portion of any such amount paid (or deemed to be paid) to Swing Line 

  

 30 

 
Lender should be recovered by or on behalf of Company from Swing Line Lender in any bankruptcy proceeding, in any assignment for the benefit of creditors or
otherwise, the loss of the amount so recovered shall be ratably shared among all Revolving Lenders in the manner contemplated by subsection 10.5. 
  
 (c) Swing Line Loan Assignments. On the Funding Date of each Swing Line Loan, each Revolving Lender shall be deemed to, and hereby
agrees to, purchase an assignment of such Swing Line Loan in an amount equal to its Pro Rata Share. If for any reason (1) Revolving Loans are not made upon the request of Swing Line Lender as provided in the immediately preceding paragraph in an
amount sufficient to repay any amounts owed to Swing Line Lender in respect of such Swing Line Loan or (2) the Revolving Loan Commitments are terminated at a time when such Swing Line Loan is outstanding, upon notice from Swing Line Lender as
provided below, each Revolving Lender shall fund the purchase of such assignment in an amount equal to its Pro Rata Share (calculated, in the case of the foregoing clause (2), immediately prior to such termination of the Revolving Loan Commitments)
of the unpaid amount of such Swing Line Loan together with accrued interest thereon. Upon one Business Day’s notice from Swing Line Lender, each Revolving Lender shall deliver to Swing Line Lender such amount in same day funds at the Funding
and Payment Office. In order to further evidence such assignment (and without prejudice to the effectiveness of the assignment provisions set forth above), each Revolving Lender agrees to enter into an Assignment Agreement at the request of Swing
Line Lender in form and substance reasonably satisfactory to Swing Line Lender. In the event any Revolving Lender fails to make available to Swing Line Lender any amount as provided in this paragraph, Swing Line Lender shall be entitled to recover
such amount on demand from such Revolving Lender together with interest thereon at the rate customarily used by Swing Line Lender for the correction of errors among banks for three Business Days and thereafter at the Base Rate. In the event Swing
Line Lender receives a payment of any amount with respect to which other Revolving Lenders have funded the purchase of assignments as provided in this paragraph, Swing Line Lender shall promptly distribute to each such other Revolving Lender its Pro
Rata Share of such payment. 
  
 (d) Revolving
Lenders’ Obligations. Anything contained herein to the contrary notwithstanding, each Revolving Lender’s obligation to make Revolving Loans for the purpose of repaying any Refunded Swing Line Loans pursuant to subsection 2.1A(iii)(b)
and each Revolving Lender’s obligation to purchase an assignment of any unpaid Swing Line Loans pursuant to the immediately preceding paragraph shall be absolute and unconditional and shall not be affected by any circumstance, including (1) any
set-off, counterclaim, recoupment, defense or other right which such Revolving Lender may have against Swing Line Lender, Company or any other Person for any reason 

  

 31 

 
whatsoever; (2) the occurrence or continuation of an Event of Default or a Potential Event of Default; (3) any adverse change in the business, operations,
properties, assets, condition (financial or otherwise) or prospects of Company or any of its Subsidiaries; (4) any breach of this Agreement or any other Loan Document by any party thereto; or (5) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing; provided that such obligations of each Revolving Lender are subject to the condition that (x) Swing Line Lender believed in good faith that all conditions under Section 4 to the
making of the applicable Refunded Swing Line Loans or other unpaid Swing Line Loans, as the case may be, were satisfied at the time such Refunded Swing Line Loans or unpaid Swing Line Loans were made or (y) the satisfaction of any such condition not
satisfied had been waived in accordance with subsection 10.6 prior to or at the time such Refunded Swing Line Loans or other unpaid Swing Line Loans were made. 
  

B. Borrowing Mechanics. Loans made on any Funding Date (other than Swing Line Loans, Revolving Loans made pursuant
to a request by Swing Line Lender pursuant to subsection 2.1A(iii) or Revolving Loans made pursuant to subsection 3.3B) shall be in an aggregate minimum amount of $500,000 and multiples of $100,000 in excess of that amount. Swing Line Loans made on
any Funding Date shall be in an aggregate minimum amount of $500,000 and multiples of $100,000 in excess of that amount. Whenever Company desires that Lenders make Term Loans or Revolving Loans it shall deliver to Administrative Agent a duly
executed Notice of Borrowing no later than 10:00 A.M. (San Francisco time) at least three Business Days in advance of the proposed Funding Date (in the case of a Eurodollar Rate Loan) or at least one Business Day in advance of the proposed Funding
Date (in the case of a Base Rate Loan). Whenever Company desires that Swing Line Lender make a Swing Line Loan, it shall deliver to Administrative Agent a duly executed Notice of Borrowing no later than 10:00 A.M. (San Francisco time) on the
proposed Funding Date. Term Loans and Revolving Loans may be continued as or converted into Base Rate Loans and Eurodollar Rate Loans in the manner provided in subsection 2.2D. In lieu of delivering a Notice of Borrowing, Company may give
Administrative Agent telephonic notice by the required time of any proposed borrowing under this subsection 2.1B; provided that such notice shall be promptly confirmed in writing by delivery of a duly executed Notice of Borrowing to
Administrative Agent on or before the applicable Funding Date. 
  
 Neither Administrative Agent nor any Lender shall incur any liability to Company in acting upon any telephonic notice referred to above that Administrative Agent believes in good faith to have been given by an Officer
or other person authorized to borrow on behalf of Company or for otherwise acting in good faith under this subsection 2.1B or under subsection 2.2D, and upon funding of Loans by Lenders, and upon conversion or continuation of the applicable basis
for determining the interest rate with respect to any Loans pursuant to subsection 2.2D, in each case in accordance with this Agreement, pursuant to any such telephonic notice Company shall have effected Loans or a conversion or continuation, as the
case may be, hereunder. 
  

 32 

 Company shall notify Administrative Agent prior to the funding of any Loans in the event
that any of the matters to which Company is required to certify in the applicable Notice of Borrowing is no longer true and correct as of the applicable Funding Date, and the acceptance by Company of the proceeds of any Loans shall constitute a
re-certification by Company, as of the applicable Funding Date, as to the matters to which Company is required to certify in the applicable Notice of Borrowing. 
  
 Except as otherwise provided in subsections 2.6B, 2.6C and 2.6G, a Notice of Borrowing for, or a Notice of
Conversion/Continuation for conversion to, or continuation of, a Eurodollar Rate Loan (or telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate Determination Date, and Company shall be bound to make a
borrowing or to effect a conversion or continuation in accordance therewith. 
  
 Notwithstanding the foregoing provisions of this subsection 2.1B, no Eurodollar Rate Loans may be made and no Base Rate Loan may be converted into a Eurodollar Rate Loan until the earlier of the tenth Business Day
after the Closing Date and the date specified by Administrative Agent to Company on which the primary syndication of the Loans has been completed. 
  
 C. Disbursement of Funds. All Term Loans and Revolving Loans shall be made by Lenders simultaneously and proportionately to
their respective Pro Rata Shares, it being understood that neither Administrative Agent nor any Lender shall be responsible for any default by any other Lender in that other Lender’s obligation to make a Loan requested hereunder nor shall the
amount of the Commitment of any Lender to make the particular type of Loan requested be increased or decreased as a result of a default by any other Lender in that other Lender’s obligation to make a Loan requested hereunder. Promptly after
receipt by Administrative Agent of a Notice of Borrowing pursuant to subsection 2.1B (or telephonic notice in lieu thereof), Administrative Agent shall notify each Lender for that type of Loan or Swing Line Lender, as the case may be, of the
proposed borrowing. Each such Lender (other than Swing Line Lender) shall make the amount of its Loan available to Administrative Agent not later than 11:00 A.M. (San Francisco time) on the applicable Funding Date, and Swing Line Lender shall make
the amount of its Swing Line Loan available to Administrative Agent not later than 2:00 P.M. (San Francisco time) on the applicable Funding Date, in each case in same day funds in Dollars, at the Funding and Payment Office. Except as provided in
subsection 2.1A(iii) and subsection 3.3B with respect to Revolving Loans used to repay Refunded Swing Line Loans or to reimburse Issuing Lender for the amount of a drawing under a Letter of Credit issued by it, upon satisfaction or waiver of the
conditions precedent specified in subsections 4.1 (in the case of Loans made on the Closing Date) and 4.2 (in the case of all Loans), Administrative Agent shall make the proceeds of such Loans available to Company on the applicable Funding Date by
causing an amount of same day funds in Dollars equal to the proceeds of all such Loans received by Administrative Agent from Lenders to be credited to the account of Company at the Funding and Payment Office. 
  
 Unless Administrative Agent shall have been notified by any
Lender prior to a Funding Date that such Lender does not intend to make available to Administrative Agent the amount of such Lender’s Loan requested on such Funding Date, Administrative Agent may 

  

 33 

 
assume that such Lender has made such amount available to Administrative Agent on such Funding Date and Administrative Agent may, in its sole discretion, but
shall not be obligated to, make available to Company a corresponding amount on such Funding Date. If such corresponding amount is not in fact made available to Administrative Agent by such Lender, Administrative Agent shall be entitled to recover
such corresponding amount on demand from such Lender together with interest thereon, for each day from such Funding Date until the date such amount is paid to Administrative Agent, at the customary rate set by Administrative Agent for the correction
of errors among banks for three Business Days and thereafter at the Base Rate. If such Lender does not pay such corresponding amount forthwith upon Administrative Agent’s demand therefor, Administrative Agent shall promptly notify Company and
Company shall immediately pay such corresponding amount to Administrative Agent together with interest thereon, for each day from such Funding Date until the date such amount is paid to Administrative Agent, at the rate payable under this Agreement
for Base Rate Loans. Nothing in this subsection 2.1C shall be deemed to relieve any Lender from its obligation to fulfill its Commitments hereunder or to prejudice any rights that Company may have against any Lender as a result of any default by
such Lender hereunder. 
  
 D. The
Register. Administrative Agent, acting for these purposes solely as an agent of Company (it being acknowledged that Administrative Agent, in such capacity, and its officers, directors, employees, agent and affiliates shall constitute Indemnitees
under subsection 10.3), shall maintain (and make available for inspection by Company upon reasonable prior notice at reasonable times) at its address referred to in subsection 10.8 a register for the recordation of, and shall record, the names and
addresses of Lenders and the respective amounts of the Term Loan Commitment, Revolving Loan Commitment, Swing Line Loan Commitment, Term Loan, Revolving Loans and Swing Line Loans of each Lender from time to time (the “Register”).
Company, Administrative Agent and Lenders shall deem and treat the Persons listed as Lenders in the Register as the holders and owners of the corresponding Commitments and Loans listed therein for all purposes hereof; all amounts owed with respect
to any Commitment or Loan shall be owed to the Lender listed in the Register as the owner thereof; and any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is listed in the
Register as a Lender shall be conclusive and binding on any subsequent holder, assignee or transferee of the corresponding Commitments or Loans. Each Lender shall record on its internal records the amount of its Loans and Commitments and each
payment in respect hereof, and any such recordation shall be conclusive and binding on Company, absent manifest error, subject to the entries in the Register, which shall, absent manifest error, govern in the event of any inconsistency with any
Lender’s records. Failure to make any recordation in the Register or in any Lender’s records, or any error in such recordation, shall not affect any Loans or Commitments or any Obligations in respect of any Loans. 
  
 E. Optional Notes. If so requested by
any Lender by written notice to Company (with a copy to Administrative Agent) at least two Business Days prior to the Closing Date or at any time thereafter, Company shall execute and deliver to such Lender (and/or, if applicable and if so specified
in such notice, to any Person who is an assignee of such Lender pursuant to subsection 10.1) on the Closing Date (or, if such notice is delivered after the Closing Date, promptly after Company’s receipt of such notice) a promissory note or
promissory notes to 

  

 34 

 
evidence such Lender’s Term Loan, Revolving Loans or Swing Line Loans, substantially in the form of Exhibit IV, Exhibit V or Exhibit
VI annexed hereto, respectively, with appropriate insertions. 
  

	 	2.2	Interest on the Loans 

  
 A. Rate of Interest. Subject to the provisions of subsections 2.6 and 2.7, each Term Loan and each Revolving Loan
shall bear interest on the unpaid principal amount thereof from the date made through maturity (whether by acceleration or otherwise) at a rate determined by reference to the Base Rate or the Eurodollar Rate. Subject to the provisions of subsection
2.7, each Swing Line Loan shall bear interest on the unpaid principal amount thereof from the date made through maturity (whether by acceleration or otherwise) at a rate determined by reference to the Base Rate. The applicable basis for determining
the rate of interest with respect to any Term Loan or any Revolving Loan shall be selected by Company initially at the time a Notice of Borrowing is given with respect to such Loan pursuant to subsection 2.1B, and the basis for determining the
interest rate with respect to any Term Loan or any Revolving Loan may be changed from time to time pursuant to subsection 2.2D. If on any day a Term Loan or Revolving Loan is outstanding with respect to which notice has not been delivered to
Administrative Agent in accordance with the terms of this Agreement specifying the applicable basis for determining the rate of interest, then for that day that Loan shall bear interest determined by reference to the Base Rate. 
  
 (i) Subject to the provisions of subsections 2.2E, 2.2G and
2.7, the Term Loans shall bear interest through maturity as follows: 
  
 (a) if a Base Rate Loan, then at the sum of the Base Rate plus 2.00% per annum; or 
  
 (b) if a Eurodollar Rate Loan, then at the sum of the Eurodollar Rate plus 3.00% per annum. 
  
 (ii) Subject to the provisions of subsections 2.2E, 2.2G and
2.7, the Revolving Loans shall bear interest through maturity as follows: 
  
 (a) if a Base Rate Loan, then at the sum of the Base Rate plus the Base Rate Margin set forth in the table below opposite the applicable Consolidated Pricing Leverage Ratio for the four-Fiscal Quarter period
for which the applicable Pricing Certificate has been delivered pursuant to subsection 6.1(iv); or 
  

 35 

 (b) if a Eurodollar Rate Loan, then at the sum of the Eurodollar Rate plus the
Eurodollar Rate Margin set forth in the table below opposite the applicable Consolidated Pricing Leverage Ratio for the four-Fiscal Quarter period for which the applicable Pricing Certificate has been delivered pursuant to subsection 6.1(iv):

  

									
	 	  	 Consolidated Pricing
 Leverage Ratio

	  	 Eurodollar Rate
 Margin

	 	 	 Base
 Rate Margin

	 
	 Greater than or equal to
	  	4.50:1.00	  	3.25	%	 	2.25	%
				
	 Greater than or equal to but less than
	  	4.00:1.00
4.50:1.00	  	3.00	%	 	2.00	%
				
	 Greater than or equal to but less than
	  	3.50:1.00
4.00:1.00	  	2.75	%	 	1.75	%
				
	 Greater than or equal to but less than
	  	3.00:1.00
3.50:1.00	  	2.50	%	 	1.50	%
				
	 Less than
	  	3.00:1.00	  	2.25	%	 	1.25	%

  
 provided that
until the delivery of the Pricing Certificate for the second full Fiscal Quarter ending after the Closing Date, the applicable margin for Revolving Loans that are Eurodollar Rate Loans shall be 3.00% per annum and for Revolving Loans that are Base
Rate Loans shall be 2.00% per annum. 
  
 (iii)
Upon delivery of the Pricing Certificate by Company to Administrative Agent pursuant to subsection 6.1(iv), the Base Rate Margin and the Eurodollar Rate Margin shall automatically be adjusted in accordance with such Pricing Certificate, such
adjustment to become effective on the third succeeding Business Day following the receipt by Administrative Agent of such Pricing Certificate (subject to the provisions of the foregoing clauses (i) and (ii)); provided that, for the period
commencing on the Business Day following the date that is the last day of the second full Fiscal Quarter after the Closing Date, the Base Rate Margin and Eurodollar Rate Margin shall be determined by reference to the Pricing Certificate most
recently received by Administrative Agent and provided further that, if at any time a Pricing Certificate is not delivered at the time required pursuant to subsection 6.1(iv), from the time such Pricing Certificate was required to be
delivered until the third Business Day succeeding delivery of such Pricing Certificate, the applicable margins shall be the maximum percentage amount for the relevant Loan set forth above. 
  
 (iv) Subject to the provisions of subsections 2.2E, 2.2G and
2.7, the Swing Line Loans shall bear interest through maturity at the sum of the Base Rate plus the 

  

 36 

 
applicable Base Rate Margin for Revolving Loans minus a rate equal to the commitment fee percentage then in effect as determined pursuant to
subsection 2.3A. 
  
 B. Interest
Periods. In connection with each Eurodollar Rate Loan, Company may, pursuant to the applicable Notice of Borrowing or Notice of Conversion/Continuation, as the case may be, select an interest period (each an “Interest Period”)
to be applicable to such Loan, which Interest Period shall be, at Company’s option, either a one, three or six month period; provided that: 
  
 (i) the initial Interest Period for any Eurodollar Rate Loan shall commence on the Funding Date in respect of such Loan, in the case of a
Loan initially made as a Eurodollar Rate Loan, or on the date specified in the applicable Notice of Conversion/Continuation, in the case of a Loan converted to a Eurodollar Rate Loan; 
  
 (ii) in the case of immediately successive Interest Periods applicable to a Eurodollar Rate Loan continued
as such pursuant to a Notice of Conversion/Continuation, each successive Interest Period shall commence on the day on which the next preceding Interest Period expires; 
  
 (iii) if an Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period
shall expire on the next succeeding Business Day; provided that, if any Interest Period would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such
Interest Period shall expire on the next preceding Business Day; 
  
 (iv) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall,
subject to clause (v) of this subsection 2.2B, end on the last Business Day of a calendar month; 
  
 (v) no Interest Period with respect to any portion of the Term Loans shall extend beyond the Term Loan Maturity Date, and no Interest
Period with respect to any portion of the Revolving Loans shall extend beyond the Revolving Loan Commitment Termination Date; 
  
 (vi) no Interest Period with respect to any Term Loans shall extend beyond a date on which Company is required to make a scheduled payment
of principal of the Term Loans, unless the sum of (a) the aggregate principal amount of the Term Loans that are Base Rate Loans plus (b) the aggregate principal amount of the Term Loans that are Eurodollar Rate Loans with Interest Periods
expiring on or before such date equals or exceeds the principal amount required to be paid on the Term Loans on such date; 
  
 (vii) there shall be no more than eight Interest Periods outstanding at any time; and 
  

 37 

 (viii) in the event Company fails to specify an Interest Period for any Eurodollar Rate
Loan in the applicable Notice of Borrowing or Notice of Conversion/Continuation, Company shall be deemed to have selected an Interest Period of one month. 
  
 C. Interest Payments. Subject to the provisions of subsection 2.2E, interest on each Loan shall be payable in arrears on and
to each Interest Payment Date applicable to that Loan, upon any prepayment of that Loan (to the extent accrued on the amount being prepaid) and at maturity (including final maturity); provided that, in the event any Swing Line Loans or any
Revolving Loans that are Base Rate Loans are prepaid pursuant to subsection 2.4B(i), interest accrued on such Loans through the date of such prepayment shall be payable on the next succeeding Interest Payment Date applicable to Base Rate Loans (or,
if earlier, at final maturity). 
  
 D.
Conversion or Continuation. Subject to the provisions of subsection 2.6, Company shall have the option (i) to convert at any time all or any part of its outstanding Term Loans or Revolving Loans equal to $500,000 and multiples of $100,000
in excess of that amount from Loans bearing interest at a rate determined by reference to one basis to Loans bearing interest at a rate determined by reference to an alternative basis or (ii) upon the expiration of any Interest Period applicable to
a Eurodollar Rate Loan, to continue all or any portion of such Loan equal to $500,000 and multiples of $100,000 in excess of that amount as a Eurodollar Rate Loan; provided, however, that a Eurodollar Rate Loan may only be converted
into a Base Rate Loan on the expiration date of an Interest Period applicable thereto. 
  
 Company shall deliver a duly executed Notice of Conversion/Continuation to Administrative Agent no later than 10:00 A.M. (San Francisco
time) at least one Business Day in advance of the proposed conversion date (in the case of a conversion to a Base Rate Loan) and at least three Business Days in advance of the proposed conversion/continuation date (in the case of a conversion to, or
a continuation of, a Eurodollar Rate Loan). In lieu of delivering a Notice of Conversion/Continuation, Company may give Administrative Agent telephonic notice by the required time of any proposed conversion/continuation under this subsection 2.2D;
provided that such notice shall be promptly confirmed in writing by delivery of a duly executed Notice of Conversion/Continuation to Administrative Agent on or before the proposed conversion/continuation date. Administrative Agent shall
notify each Lender of any Loan subject to a Notice of Conversion/Continuation. 
  
 E. Default Rate. Upon the occurrence and during the continuation of any Event of Default, upon election by Requisite
Lenders, the outstanding principal amount of all Loans and, to the extent permitted by applicable law, any interest payments thereon not paid when due and any fees and other amounts then due and payable hereunder, shall thereafter bear interest
(including post-petition interest in any proceeding under the Bankruptcy Code or other applicable bankruptcy laws) payable upon demand by Administrative Agent at a rate that is 2% per annum in excess of the interest rate otherwise payable under this
Agreement with respect to the applicable Loans (or, in the case of any such fees and other amounts, at a rate which is 2% per annum in excess of the interest rate otherwise payable under this Agreement for Base Rate Loans); provided that, in
the case of Eurodollar Rate Loans, upon the expiration of the Interest Period in effect at the time any such increase in interest rate is effective such Eurodollar Rate Loans shall thereupon become Base Rate Loans and shall thereafter bear interest
payable upon 

  

 38 

 
demand at a rate which is 2% per annum in excess of the interest rate otherwise payable under this Agreement for Base Rate Loans. Payment or acceptance of
the increased rates of interest provided for in this subsection 2.2E is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Administrative
Agent or any Lender. 
  
 F. Computation
of Interest. Interest on the Loans shall be computed (i) in the case of Base Rate Loans, on the basis of a 365-day or 366-day year, as the case may be, and (ii) in the case of Eurodollar Rate Loans, on the basis of a 360-day year, in each case
for the actual number of days elapsed in the period during which it accrues. In computing interest on any Loan, the date of the making of such Loan or the first day of an Interest Period applicable to such Loan or, with respect to a Base Rate Loan
being converted from a Eurodollar Rate Loan, the date of conversion of such Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall be included, and the date of payment of such Loan or the expiration date of an Interest Period
applicable to such Loan or, with respect to a Base Rate Loan being converted to a Eurodollar Rate Loan, the date of conversion of such Base Rate Loan to such Eurodollar Rate Loan, as the case may be, shall be excluded; provided that if a Loan
is repaid on the same day on which it is made, one day’s interest shall be paid on that Loan. 
  
 G. Maximum Rate. Notwithstanding the foregoing provisions of this subsection 2.2, in no event shall the rate of
interest payable by Company with respect to any Loan exceed the maximum rate of interest permitted to be charged under applicable law. 
  

	 	2.3	Fees 

  
 A. Commitment Fees. Company agrees to pay to Administrative Agent, for distribution to each Revolving Lender in proportion
to that Lender’s Pro Rata Share, commitment fees for the period from and including the Closing Date to and excluding the Revolving Loan Commitment Termination Date equal to the average of the daily excess of the Revolving Loan Commitment Amount
over the sum of (i) the aggregate principal amount of outstanding Revolving Loans (but not any outstanding Swing Line Loans) plus (ii) the Letter of Credit Usage multiplied by a rate per annum equal to the percentage set forth in the
table below opposite the Consolidated Pricing Leverage Ratio for the four Fiscal Quarter period for which the applicable Pricing Certificate has been delivered pursuant to subsection 6.1(iv): 
  

				
	 Consolidated
Leverage Ratio

	  	Commitment
Fee Percentage

	 
	 3.00:1.00 or greater
	  	0.50	%
		
	 less than 3.00:1.00
	  	0.375	%

  

 39 

 such commitment fees to be calculated on the basis of a 360-day year and the actual number of days
elapsed and to be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each calendar year, commencing on the first such date to occur after the Closing Date, and on the Revolving Loan Commitment Termination Date;
provided that until the delivery of the Pricing Certificate for the second full Fiscal Quarter ending after the Closing Date, the applicable commitment fee percentage shall be 0.50% per annum. Upon delivery of the Pricing Certificate by
Company to Administrative Agent pursuant to subsection 6.1(iv), the applicable commitment fee percentage shall automatically be adjusted in accordance with such Pricing Certificate, such adjustment to become effective on the third succeeding
Business Day following the receipt by Administrative Agent of such Pricing Certificate; provided that, for the period commencing on the Business Day following the date that is the last day of the second full Fiscal Quarter after the Closing
Date, the applicable commitment fee percentage shall be determined by reference to the Pricing Certificate most recently received by Administrative Agent and provided further that if at any time a Pricing Certificate is not delivered
at the time required pursuant to subsection 6.1(iv), from the time such Pricing Certificate was required to be delivered until delivery of such Pricing Certificate, the applicable commitment fee percentage shall be the maximum percentage amount set
forth above. 
  
 B. Other Fees.
Company agrees to pay to Administrative Agent such fees in the amounts and at the times separately agreed upon between Company and Administrative Agent. 
  

	 	2.4	Repayments, Prepayments and Reductions of Revolving Loan Commitment Amount; General Provisions Regarding Payments; Application of Proceeds of Collateral and Payments
Under Subsidiary Guaranty 

  
 A. Scheduled Payments of Term Loans. Company shall make principal payments on the Term Loans in installments on the dates and in the amounts set forth below: 
  

				
	 Date

	  	Scheduled Repayment

	 June 30, 2005
	  	$	828,947.37
		
	 September 30, 2005
	  	$	828,947.37
		
	 December 31, 2005
	  	$	828,947.37
		
	 March 31, 2006
	  	$	828,947.37
		
	 June 30, 2006
	  	$	1,105,263.16
		
	 September 30, 2006
	  	$	1,105,263.16
		
	 December 31, 2006
	  	$	1,105,263.16
		
	 March 31, 2007
	  	$	1,105,263.16
		
	 June 30, 2007
	  	$	1,381,578.95
		
	 September 30, 2007
	  	$	1,381,578.95

  

 40 

				
	 Date

	  	Scheduled Repayment

	 December 31, 2007
	  	$	1,381,578.95
		
	 March 31, 2008
	  	$	1,381,578.95
		
	 June 30, 2008
	  	$	1,657,894.74
		
	 September 30, 2008
	  	$	1,657,894.74
		
	 December 31, 2008
	  	$	1,657,894.74
		
	 March 31, 2009
	  	$	1,657,894.74
		
	 June 30, 2009
	  	$	1,934,210.53
		
	 September 30, 2009
	  	$	1,934,210.53
		
	 December 31, 2009
	  	$	1,934,210.53
		
	 March 31, 2010
	  	$	1,934,210.53
		
	 June 30, 2010
	  	$	2,578,947.36
		
	 September 30, 2010
	  	$	2,578,947.36
		
	 December 31, 2010
	  	$	2,578,947.36
		
	 Term Loan Maturity Date
	  	$	69,631,578.92

  
 provided that
the scheduled installments of principal of the Term Loans set forth above shall be reduced in connection with any voluntary or mandatory prepayments of the Term Loans in accordance with subsection 2.4B(iv); and provided, further that
the Term Loans and all other amounts owed hereunder with respect to the Term Loans shall be paid in full no later than the Term Loan Maturity Date, and the final installment payable by Company in respect of the Term Loans on such date shall be in an
amount, if such amount is different from that specified above, sufficient to repay all amounts owing by Company under this Agreement with respect to the Term Loans. 
  
 B. Prepayments and Reductions in Revolving Loan Commitment Amount. 
  
 (i) Voluntary Prepayments. Company may, upon written
or telephonic notice to Administrative Agent on or prior to 12:00 Noon (San Francisco time) (in the case of Swing Line loans) or 10:00 A.M. (San Francisco time) (in the case of Base Rate Loans) on the date of prepayment, which notice, if telephonic,
shall be promptly confirmed in writing, at any time and from time to time prepay any Swing Line Loan or Base Rate Loan on any Business Day in whole or in part in an aggregate minimum amount of $500,000 and multiples of $100,000 in excess of that
amount. Company may, upon not less than three Business Days’ prior written or telephonic notice given to Administrative Agent by 12:00 Noon (San Francisco time) on the date required and, if given by telephone, promptly confirmed in writing to
Administrative Agent, who will promptly 

  

 41 

 
notify each Lender whose Loans are to be prepaid of such prepayment, at any time and from time to time prepay any Eurodollar Rate Loans on any Business Day
in whole or in part in an aggregate minimum amount of $500,000 and multiples of $100,000 in excess of that amount. Notice of prepayment having been given as aforesaid, the principal amount of the Loans specified in such notice shall become due and
payable on the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified in subsection 2.4B(iv). 
  
 (ii) Voluntary Reductions of Revolving Loan Commitments. Company may, upon not less than two Business Days’ prior written or
telephonic notice confirmed in writing to Administrative Agent, or upon such lesser number of days’ prior written or telephonic notice, as determined by Administrative Agent in its sole discretion, at any time and from time to time, terminate
in whole or permanently reduce in part, without premium or penalty, the Revolving Loan Commitment Amount in an amount up to the amount by which the Revolving Loan Commitment Amount exceeds the Total Utilization of Revolving Loan Commitments at the
time of such proposed termination or reduction; provided that any such partial reduction of the Revolving Loan Commitment Amount shall be in an aggregate minimum amount of $500,000 and multiples of $100,000 in excess of that amount.
Company’s notice to Administrative Agent (who will promptly notify each Revolving Lender of such notice) shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such
termination or reduction shall be effective on the date specified in Company’s notice and shall reduce the amount of the Revolving Loan Commitment of each Revolving Lender proportionately to its Pro Rata Share. Any such voluntary reduction of
the Revolving Loan Commitment Amount shall be applied as specified in subsection 2.4B(iv). 
  
 (iii) Mandatory Prepayments and Mandatory Reductions of Revolving Loan Commitments. The Loans shall be prepaid and/or the Revolving
Loan Commitment Amount shall be permanently reduced in the amounts and under the circumstances set forth below, all such prepayments and/or reductions to be applied as set forth below or as more specifically provided in subsection 2.4B(iv) and
subsection 2.4D: 
  
 (a) Prepayments and
Reductions From Net Asset Sale Proceeds. No later than the date of receipt by Company or any Subsidiary Guarantor of any Net Asset Sale Proceeds in respect of any Asset Sale (other than the sale of the Sugar Land Facility) permitted by
subsection 7.7 or otherwise approved by Administrative Agent and Requisite Lenders, Company shall either (1) prepay the Loans and/or the Revolving Loan Commitment Amount shall be permanently reduced in an aggregate amount equal to such Net Asset
Sale Proceeds or (2), so long as no Potential Event of Default or Event of Default shall have occurred and be continuing and to the extent that aggregate Net Asset Sale Proceeds from the Closing Date through the date of determination do not exceed
$2,000,000, deliver to Administrative Agent an Officer’s Certificate setting forth (x) that portion of such Net Asset Sale Proceeds that Company or such Subsidiary intends to reinvest in equipment or other productive assets of the 

  

 42 

 
general type used in the business of Company and its Subsidiaries within 360 days of such date of receipt and (y) the proposed use of such portion of the Net
Asset Sale Proceeds and such other information with respect to such reinvestment as Administrative Agent may reasonably request, and Company shall, or shall cause one or more of its Subsidiaries to, promptly and diligently apply such portion to such
reinvestment purposes; provided, however, that, pending such reinvestment, such portion of the Net Asset Sale Proceeds shall be either applied to prepay outstanding Revolving Loans (without a reduction in the Revolving Loan Commitment
Amount) to the full extent thereof or deposited in the Collateral Account; provided further, that if (A) Company, within 180 days of receipt of such Net Asset Sale Proceeds, has not reinvested all or any portion of such Net Asset Sale
Proceeds as provided above and has not delivered to Administrative Agent evidence reasonably satisfactory to Administrative Agent that Company has entered into one or more binding contractual commitments to so reinvest such Net Asset Sale Proceeds,
(B) Company, within 360 days after the date of receipt of such Net Asset Sale Proceeds, has not reinvested all or any portion of such Net Asset Sale Proceeds as provided above or (C) a Potential Event of Default or Event of Default shall have
occurred and be continuing, Company shall apply an amount equal to such Net Asset Sale Proceeds to prepay the Loans (and/or the Revolving Loan Commitments shall be reduced) in the full amount of all such Net Asset Sale Proceeds. 
  
 (b) Prepayments from Net Insurance/Condemnation
Proceeds. No later than the first Business Day following the date of receipt by Administrative Agent or by Company or any Subsidiary Guarantor of any Net Insurance/Condemnation Proceeds that are required to be applied to prepay the Term Loans
pursuant to the provisions of subsection 6.4C, Company shall prepay the Term Loans in an aggregate amount equal to the amount of such Net Insurance/Condemnation Proceeds. 
  
 (c) Prepayments Due to Issuance of Equity Securities. On the date of receipt of the Net Securities
Proceeds from the issuance of any Capital Stock of Company or of any Subsidiary of Company or from any capital contribution to Company by any holder of Capital Stock thereof after the Closing Date (other than, so long as no Event of Default has
occurred and is continuing, Net Securities Proceeds received (1) as a result of the exercise of the First Union Warrant or the GS Warrants, (2) from the issuance of any Capital Stock of Company or of any Subsidiary of Company to any Subsidiary of
Company, (3) from the issuance of any Capital Stock of Company (including as a result of the exercise of any options with regard thereto) or options to purchase shares of Capital Stock of Company to officers, directors and employees of Company or
any Subsidiary of Company in an aggregate amount not to exceed $1,500,000 or (4) from the issuance of any Capital Stock of Company in an aggregate amount (when combined with all other issuances of Capital Stock of Company made since the Closing
Date) not to exceed $20,000,000), Company shall prepay the 

  

 43 

 
Term Loans in an aggregate amount equal to 50% of such Net Securities Proceeds. 
  
 (d) Prepayments Due to Issuance of Indebtedness. On the date of receipt of the Net Securities
Proceeds from the issuance of any Indebtedness of Company or any of its Subsidiaries after the Closing Date, other than Indebtedness permitted pursuant to subsection 7.1, Company shall prepay the Term Loans in an aggregate amount equal to such Net
Securities Proceeds. 
  
 (e) Prepayments from
Consolidated Excess Cash Flow. In the event that there shall be Consolidated Excess Cash Flow for any Fiscal Year (commencing with Fiscal Year 2005), Company shall, no later than 90 days after the end of such Fiscal Year, prepay the Term Loans
in an aggregate amount equal to (a) 50% of such Consolidated Excess Cash Flow in respect of any Fiscal Year for which the Consolidated Leverage Ratio as of the last day of such Fiscal Year is greater than 3.00 to 1.00; provided,
however, that Company shall only be required to pay that portion of Consolidated Excess Cash Flow, not to exceed 50% of Consolidated Excess Cash Flow, as shall be necessary to reduce the Consolidated Leverage Ratio as of the last day of such
Fiscal Year to 3.00 to 1.00; and (b) 0% of such Consolidated Excess Cash Flow in respect of any Fiscal Year for which the Consolidated Leverage Ratio as of the last day of such Fiscal Year is less than or equal to 3.00 to 1.00. 
  
 (f) Calculations of Net Proceeds Amounts; Additional
Prepayments and Reductions Based on Subsequent Calculations. Concurrently with any prepayment of the Loans and/or reduction of the Revolving Loan Commitment Amount pursuant to subsections 2.4B(iii)(a)-(e), Company shall deliver to Administrative
Agent an Officer’s Certificate demonstrating the calculation of the amount of the applicable Net Asset Sale Proceeds, Net Insurance/Condemnation Proceeds, Net Securities Proceeds, or Consolidated Excess Cash Flow, as the case may be, that gave
rise to such prepayment and/or reduction. In the event that Company shall subsequently determine that the actual amount was greater than the amount set forth in such Officer’s Certificate, Company shall promptly make an additional prepayment of
the Loans (and/or, if applicable, the Revolving Loan Commitment Amount shall be permanently reduced) in an amount equal to the amount of such excess, and Company shall concurrently therewith deliver to Administrative Agent an Officer’s
Certificate demonstrating the derivation of the additional amount resulting in such excess. 
  
 (iv) Application of Prepayments. 
  
 (a) Application of Voluntary Prepayments by Type of Loans and Order of Maturity. Any voluntary prepayments pursuant to subsection
2.4B(i) shall be applied as specified by Company in the applicable notice of prepayment; provided that in the event Company fails to specify the Loans to which any such prepayment shall be applied, such prepayment shall be applied
first to repay 

  

 44 

 
outstanding Swing Line Loans to the full extent thereof, second to repay outstanding Revolving Loans to the full extent thereof, and third to
repay outstanding Term Loans to the full extent thereof. Any voluntary prepayments of the Term Loans pursuant to subsection 2.4B(i) shall be applied as specified by Company in the applicable notice of prepayment; provided that in the event
Company fails to specify the order of maturity for such prepayment, such prepayment shall be applied to reduce the scheduled installments of principal of the Term Loans set forth in subsection 2.4A on a pro rata basis (in accordance with the
respective outstanding principal amounts thereof) to each remaining scheduled installment of principal of the Term Loans set forth in subsection 2.4A that is unpaid at the time of such prepayment. 
  
 (b) Application of Mandatory Prepayments by Type of
Loans. Except as provided in subsection 2.4D, any amount required to be applied as a mandatory prepayment of the Loans and/or a reduction of the Revolving Loan Commitment Amount pursuant to subsections 2.4B(iii)(a)-(f) shall be applied
first to prepay the Term Loans to the full extent thereof, second, to the extent of any remaining portion of such amount, to prepay the Swing Line Loans to the full extent thereof and to permanently reduce the Revolving Loan Commitment
Amount by the amount of such prepayment, and third, to the extent of any remaining portion of such amount, to prepay the Revolving Loans to the full extent thereof (and, after prepaying all Revolving Loans, Cash collateralize any outstanding
Letters of Credit by depositing the requisite amount in the Collateral Account) and to further permanently reduce the Revolving Loan Commitment Amount by the amount of such prepayment. Any mandatory prepayments of the Term Loans pursuant to
subsections 2.4B(iii)(a)-(f) shall be applied to reduce the scheduled installments of principal of the Term Loans set forth in subsection 2.4A on a pro rata basis (in accordance with the respective outstanding principal amounts thereof) to each
remaining scheduled installment of principal of the Term Loans set forth in subsection 2.4A that is unpaid at the time of such prepayment. Any mandatory reduction of the Revolving Loan Commitment Amount pursuant to this subsection 2.4B shall be in
proportion to each Revolving Lender’s Pro Rata Share. 
  
 (c) Application of Prepayments to Base Rate Loans and Eurodollar Rate Loans. Considering Term Loans and Revolving Loans being prepaid separately, any prepayment thereof shall be applied first to Base Rate Loans
to the full extent thereof before application to Eurodollar Rate Loans, in each case in a manner that minimizes the amount of any payments required to be made by Company pursuant to subsection 2.6D. 
  
 C. General Provisions Regarding
Payments. 
  
 (i) Manner and Time
of Payment. All payments by Company of principal, interest, fees and other Obligations shall be made in Dollars in same day funds, without defense, setoff or counterclaim, free of any restriction or condition, and delivered to 

  

 45 

 
Administrative Agent not later than 12:00 Noon (San Francisco time) on the date due at the Funding and Payment Office for the account of Lenders; funds
received by Administrative Agent after that time on such due date shall be deemed to have been paid by Company on the next succeeding Business Day. 
  
 (ii) Application of Payments to Principal and Interest. Except as provided in subsection 2.2C, all payments in respect of the
principal amount of any Loan shall include payment of accrued interest on the principal amount being repaid or prepaid, and all such payments shall be applied to the payment of interest before application to principal. 
  
 (iii) Apportionment of Payments. Aggregate payments
of principal and interest shall be apportioned among all outstanding Loans to which such payments relate, in each case proportionately to Lenders’ respective Pro Rata Shares. Administrative Agent shall promptly distribute to each Lender, at the
account specified in the payment instructions delivered to Administrative Agent by such Lender, its Pro Rata Share of all such payments received by Administrative Agent and the commitment fees and letter of credit fees of such Lender, if any, when
received by Administrative Agent pursuant to subsections 2.3 and 3.2. Notwithstanding the foregoing provisions of this subsection 2.4C(iii), if, pursuant to the provisions of subsection 2.6C, any Notice of Conversion/Continuation is withdrawn as to
any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its Pro Rata Share of any Eurodollar Rate Loans, Administrative Agent shall give effect thereto in apportioning interest payments received thereafter. 
  
 (iv) Payments on Business Days. Whenever any payment
to be made hereunder shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder
or of the commitment fees hereunder, as the case may be. 
  
 (v) Notation of Payment. Each Lender agrees that before disposing of any Note held by it, or any part thereof (other than by granting participations therein), that Lender will make a notation thereon of all
Loans evidenced by that Note and all principal payments previously made thereon and of the date to which interest thereon has been paid; provided that the failure to make (or any error in the making of) a notation of any Loan made under such
Note shall not limit or otherwise affect the obligations of Company hereunder or under such Note with respect to any Loan or any payments of principal or interest on such Note. 
  
 D. Application of Proceeds of Collateral and Payments after Event of Default. Upon the
occurrence and during the continuation of an Event of Default, if requested by Requisite Lenders, or upon acceleration of the Obligations pursuant to Section 8, (a) all payments received by Administrative Agent, whether from Company, any Subsidiary
Guarantor or otherwise, and (b) all proceeds received by Administrative Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral under any Collateral 

  

 46 

 
Document may, in the discretion of Administrative Agent, be held by Administrative Agent as Collateral for, and/or (then or at any time thereafter) applied
in full or in part by Administrative Agent, in each case in the following order of priority: 
  
 (i) to the payment of all costs and expenses of such sale, collection or other realization, all other expenses, liabilities and advances
made or incurred by Administrative Agent in connection therewith, and all amounts for which Administrative Agent is entitled to compensation (including the fees described in subsection 2.3), reimbursement and indemnification under any Loan Document
and all advances made by Administrative Agent thereunder for the account of the applicable Loan Party, and to the payment of all costs and expenses paid or incurred by Administrative Agent in connection with the Loan Documents, all in accordance
with subsections 9.4, 10.2 and 10.3 and the other terms of this Agreement and the Loan Documents; 
  
 (ii) thereafter, to the payment of all other Obligations and obligations of Loan Parties under any Hedge Agreement between a Loan Party
and a Swap Counterparty for the ratable benefit of the holders thereof (subject to the provisions of subsection 2.4C(ii) hereof); and 
  
 (iii) thereafter, to the payment to or upon the order of such Loan Party or to whosoever may be lawfully entitled to receive the same or
as a court of competent jurisdiction may direct. 
  

	 	2.5	Use of Proceeds 

  
 A. Term Loans. The proceeds of the Term Loans shall be applied by Company to refinance Indebtedness under the
Existing Credit Agreement, to redeem all outstanding Senior Subordinated Notes, to redeem a portion of the outstanding Senior Preferred Stock in an aggregate amount not less than $30,000,000 and to pay the Transaction Costs. 
  
 B. Revolving Loans; Swing Line Loans.
The proceeds of any Revolving Loans and any Swing Line Loans shall be applied by Company for working capital and other general corporate purposes, which may include the making of intercompany loans to any of Company’s wholly-owned Subsidiaries,
in accordance with subsection 7.1(iv), for their own general corporate purposes. 
  
 C. Margin Regulations. No portion of the proceeds of any borrowing under this Agreement shall be used by Company or
any of its Subsidiaries in any manner that might cause the borrowing or the application of such proceeds to violate Regulation U, Regulation T or Regulation X of the Board of Governors of the Federal Reserve System or any other regulation of such
Board or to violate the Exchange Act, in each case as in effect on the date or dates of such borrowing and such use of proceeds. 
  

 47 

	 	2.6	Special Provisions Governing Eurodollar Rate Loans 

  
 Notwithstanding any other provision of this Agreement to the contrary, the following provisions shall govern with respect to Eurodollar
Rate Loans as to the matters covered: 
  
 A.
Determination of Applicable Interest Rate. On each Interest Rate Determination Date, Administrative Agent shall determine in accordance with the terms of this Agreement (which determination shall, absent manifest error, be conclusive and
binding upon all parties) the interest rate that shall apply to the Eurodollar Rate Loans for which an interest rate is then being determined for the applicable Interest Period and shall promptly give notice thereof (in writing or by telephone
confirmed in writing) to Company and each applicable Lender. 
  
 B. Inability to Determine Applicable Interest Rate. In the event that Administrative Agent shall have determined (which determination shall be conclusive and binding upon all parties hereto), on
any Interest Rate Determination Date that by reason of circumstances affecting the interbank Eurodollar market adequate and fair means do not exist for ascertaining the interest rate applicable to such Loans on the basis provided for in the
definition of Eurodollar Rate, Administrative Agent shall on such date give notice (by telefacsimile or by telephone confirmed in writing) to Company and each Lender of such determination, whereupon (i) no Loans may be made as, or converted to,
Eurodollar Rate Loans until such time as Administrative Agent notifies Company and Lenders that the circumstances giving rise to such notice no longer exist and (ii) any Notice of Borrowing or Notice of Conversion/Continuation given by Company with
respect to the Loans in respect of which such determination was made shall be deemed to be for a Base Rate Loan. 
  
 C. Illegality or Impracticability of Eurodollar Rate Loans. In the event that on any date any Lender shall have
determined (which determination shall be conclusive and binding upon all parties hereto but shall be made only after consultation with Company and Administrative Agent) that the making, maintaining or continuation of its Eurodollar Rate Loans (i)
has become unlawful as a result of compliance by such Lender in good faith with any law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such treaty, governmental rule, regulation, guideline or order not having
the force of law even though the failure to comply therewith would not be unlawful) or (ii) has become impracticable, or would cause such Lender material hardship, as a result of contingencies occurring after the date of this Agreement which
materially and adversely affect the interbank Eurodollar market or the position of such Lender in that market, then, and in any such event, such Lender shall be an “Affected Lender” and it shall on that day give notice (by
telefacsimile or by telephone confirmed in writing) to Company and Administrative Agent of such determination. Administrative Agent shall promptly notify each other Lender of the receipt of such notice. Thereafter (a) the obligation of the Affected
Lender to make Loans as, or to convert Loans to, Eurodollar Rate Loans shall be suspended until such notice shall be withdrawn by the Affected Lender, (b) to the extent such determination by the Affected Lender relates to a Eurodollar Rate Loan then
being requested by Company pursuant to a Notice of Borrowing or a Notice of Conversion/Continuation, the Affected Lender shall make such Loan as (or convert such Loan to, as the case may be) a Base Rate Loan, (c) the Affected Lender’s
obligation to maintain its 

  

 48 

 
outstanding Eurodollar Rate Loans (the “Affected Loans”) shall be terminated at the earlier to occur of the expiration of the Interest
Period then in effect with respect to the Affected Loans or when required by law, and (d) the Affected Loans shall automatically convert into Base Rate Loans on the date of such termination. Notwithstanding the foregoing, to the extent a
determination by an Affected Lender as described above relates to a Eurodollar Rate Loan then being requested by Company pursuant to a Notice of Borrowing or a Notice of Conversion/Continuation, Company shall have the option, subject to the
provisions of subsection 2.6D, to rescind such Notice of Borrowing or Notice of Conversion/Continuation as to all Lenders by giving notice (by telefacsimile or by telephone confirmed in writing) to Administrative Agent of such rescission on the date
on which the Affected Lender gives notice of its determination as described above. Administrative Agent shall promptly notify each other Lender of the receipt of such notice. Except as provided in the immediately preceding sentence, nothing in this
subsection 2.6C shall affect the obligation of any Lender other than an Affected Lender to make or maintain Loans as, or to convert Loans to, Eurodollar Rate Loans in accordance with the terms of this Agreement. 
  
 D. Compensation For Breakage or Non-Commencement
of Interest Periods. Company shall compensate each Lender, upon written request by that Lender pursuant to subsection 2.8, for all reasonable losses, expenses and liabilities (including any interest paid by that Lender to lenders of funds
borrowed by it to make or carry its Eurodollar Rate Loans and any loss, expense or liability sustained by that Lender in connection with the liquidation or re-employment of such funds) which that Lender may sustain: (i) if for any reason (other than
a default by that Lender) a borrowing of any Eurodollar Rate Loan does not occur on a date specified therefor in a Notice of Borrowing or a telephonic request therefor, or a conversion to or continuation of any Eurodollar Rate Loan does not occur on
a date specified therefor in a Notice of Conversion/Continuation or a telephonic request therefor, (ii) if any prepayment or other principal payment or any conversion of any of its Eurodollar Rate Loans (including any prepayment or conversion
occasioned by the circumstances described in subsection 2.6C) occurs on a date prior to the last day of an Interest Period applicable to that Loan, (iii) if any prepayment of any of its Eurodollar Rate Loans is not made on any date specified in a
notice of prepayment given by Company, or (iv) as a consequence of any other default by Company in the repayment of its Eurodollar Rate Loans when required by the terms of this Agreement. 
  
 E. Booking of Eurodollar Rate Loans.
Any Lender may make, carry or transfer Eurodollar Rate Loans at, to, or for the account of any of its branch offices or the office of an Affiliate of that Lender. 
  
 F. Assumptions Concerning Funding of Eurodollar Rate Loans. Calculation of all amounts
payable to a Lender under this subsection 2.6 and under subsection 2.7A shall be made as though that Lender had funded each of its Eurodollar Rate Loans through the purchase of a Eurodollar deposit bearing interest at the rate obtained pursuant to
clause (i) of the definition of Eurodollar Rate in an amount equal to the amount of such Eurodollar Rate Loan and having a maturity comparable to the relevant Interest Period, whether or not its Eurodollar Rate Loans had been funded in such manner.

  

 49 

 G. Eurodollar Rate Loans After Default. After the occurrence of and
during the continuation of a Potential Event of Default or an Event of Default, (i) Company may not elect to have a Loan be made or maintained as, or converted to, a Eurodollar Rate Loan after the expiration of any Interest Period then in effect for
that Loan and (ii) subject to the provisions of subsection 2.6D, any Notice of Borrowing or Notice of Conversion/Continuation given by Company with respect to a requested borrowing or conversion/continuation that has not yet occurred shall be deemed
to be for a Base Rate Loan or, if the conditions to making a Loan set forth in subsection 4.2 cannot then be satisfied, to be rescinded by Company. 
  

	 	2.7	Increased Costs; Taxes; Capital Adequacy 

  
 A. Compensation for Increased Costs. Subject to the provisions of subsection 2.7B (which shall be controlling with respect
to the matters covered thereby), in the event that any Lender (including Issuing Lender) shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto) that any Change in Law:

  
 (i) subjects such Lender to any additional
tax of any kind whatsoever with respect to this Agreement or any of its obligations hereunder (including with respect to issuing or maintaining any Letters of Credit or purchasing or maintaining any participations therein or maintaining any
Commitment hereunder) or any payments to such Lender of principal, interest, fees or any other amount payable hereunder (except for the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender); 
  
 (ii) imposes, modifies or holds applicable any reserve,
special deposit, compulsory loan, insurance charge or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by,
any office of such Lender (other than any such reserve or other requirements with respect to Eurodollar Rate Loans that are reflected in the definition of Eurodollar Rate); or 
  
 (iii) imposes any other condition (other than with respect to Taxes) on or affecting such Lender or its
obligations hereunder or the interbank Eurodollar market; 
  
 and the result of
any of the foregoing is to increase the cost to such Lender of agreeing to make, making or maintaining its Loans or Commitments or agreeing to issue, issuing or maintaining any Letter of Credit or agreeing to purchase, purchasing or maintaining any
participation therein or to reduce any amount received or receivable by such Lender with respect thereto; then, in any such case, Company shall promptly pay to such Lender, upon receipt of the statement referred to in subsection 2.8A, such
additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Lender in its sole discretion shall determine) as may be necessary to compensate such Lender on an after-tax basis
for any such increased cost or reduction in amounts received or receivable hereunder. Company shall not be required to compensate a Lender pursuant to this subsection 2.7A for any increased cost or reduction in respect of a period occurring more
than 270 days prior to the date on which such 

  

 50 

 
Lender notifies Company of such Change in Law and such Lender’s intention to claim compensation therefor, except, if the Change in Law giving rise to
such increased cost or reduction is retroactive, no such time limitation shall apply so long as such Lender requests compensation within 270 days from the date on which the applicable Government Authority informed such Lender of such Change in
Law. 
  
 B. Taxes.

  
 (i) Payments to Be Free and Clear. Any
and all payments by or on account of any obligation of Company under this Agreement and the other Loan Documents shall be made free and clear of, and without any deduction or withholding on account of, any Indemnified Taxes or Other Taxes.

  
 (ii) Grossing-up of Payments. If
Company or any other Person is required by law to make any deduction or withholding on account of any Tax from any sum paid or payable by Company to Administrative Agent or any Lender under any of the Loan Documents: 
  
 (a) Company shall notify Administrative Agent of any such
requirement or any change in any such requirement as soon as Company becomes aware of it; 
  
 (b) Company shall timely pay any such Tax to the relevant Government Authority when such Tax is due, in accordance with applicable law;

  
 (c) unless such Tax is an Excluded Tax, the
sum payable by Company shall be increased to the extent necessary to ensure that, after making the required deductions (including deductions applicable to additional sums payable under this subsection 2.7B(ii)), Administrative Agent or such Lender,
as the case may be, receives on the due date a net sum equal to the sum it would have received had no such deduction been required or made; and 
  
 (d) within 30 days after paying any sum from which it is required by law to make any such deduction, and within 30 days after the due
date of payment of any Tax which it is required by clause (b) above to pay, Company shall deliver to Administrative Agent the original or a certified copy of an official receipt or other document satisfactory to the other affected parties to
evidence the payment and its remittance to the relevant Government Authority. 
  
 (iii) Indemnification by Company. Company shall indemnify Administrative Agent and each Lender, within 10 days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including for
the full amount of any Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this subsection 2.7B(iii)) paid by Administrative Agent or such Lender, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally 

  

 51 

 
imposed or asserted by the relevant Government Authority. A certificate as to the amount of such payment or liability delivered to Company by a Lender (with
a copy to Administrative Agent), or by Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. 
  
 (iv) Tax Status of Lenders. Unless not legally entitled to do so: 
  
 (a) any Lender, if requested by Company or Administrative Agent, shall deliver such forms or other
documentation prescribed by applicable law or reasonably requested by Company or Administrative Agent as will enable Company or Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting
requirements; 
  
 (b) any Foreign Lender that is
entitled to an exemption from or reduction of any Tax with respect to payments hereunder or under any other Loan Document shall deliver to Company and Administrative Agent, on or prior to the date on which such Foreign Lender becomes a Lender under
this Agreement (and from time to time thereafter, as may be necessary in the determination of Company or Administrative Agent, each in the reasonable exercise of its discretion), such properly completed and duly executed forms or other documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate of withholding; 
  
 (c) without limiting the generality of the foregoing, in the event that Company is resident for tax purposes in the United States, any
Foreign Lender shall deliver to Company and Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter, as may be necessary in the determination of Company or Administrative Agent, each in the reasonable exercise of its discretion), whichever of the following is applicable: 
  
 (1) properly completed and duly executed copies of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States is a party, 
  
 (2) properly completed and duly executed copies of Internal Revenue Service Form W-8ECI, 
  
 (3) in the case of a Foreign Lender claiming the benefits
of the exemption “portfolio interest” under Section 881(c) of the Internal Revenue Code, (A) a duly executed certificate to the effect that such Foreign Lender is not (i) a “bank” within the meaning of Section 881(c)(3)(A) of the
Internal Revenue Code, (ii) a ten-percent shareholder (within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code) of Company or (iii) a controlled foreign corporation described in 

  

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Section 881(c)(3)(C) of the Internal Revenue Code and (B) properly completed and duly executed copies of Internal Revenue Service Form W-8BEN. 
  
 (4) properly completed and duly executed copies of any
other form prescribed by applicable law as a basis for claiming exemption from or a reduction in any Tax, 
  
 in each case together with such supplementary documentation as may be prescribed by applicable law to permit Company and Administrative Agent to
determine the withholding or deduction required to be made, if any; 
  
 (d) without limiting the generality of the foregoing, in the event that Company is resident for tax purposes in the United States, any Foreign Lender that does not act or ceases to act for its own account with respect
to any portion of any sums paid or payable to such Lender under any of the Loan Documents (for example, in the case of a typical participation by such Lender) shall deliver to Administrative Agent and Company (in such number of copies as shall be
requested by the recipient), on or prior to the date such Foreign Lender becomes a Lender, or on such later date when such Foreign Lender ceases to act for its own account with respect to any portion of any such sums paid or payable, and from time
to time thereafter, as may be necessary in the determination of Company or Administrative Agent (each in the reasonable exercise of its discretion): 
  
 (1) duly executed and properly completed copies of the forms and statements required to be provided by such Foreign Lender under clause
(c) of subsection 2.7B(iv), to establish the portion of any such sums paid or payable with respect to which such Lender acts for its own account and may be entitled to an exemption from or a reduction of the applicable Tax, and 
  
 (2) duly executed and properly completed copies of Internal
Revenue Service Form W-8IMY (or any successor forms) properly completed and duly executed by such Foreign Lender, together with any information, if any, such Foreign Lender chooses to transmit with such form, and any other certificate or statement
of exemption required under the Internal Revenue Code or the regulations thereunder, to establish that such Foreign Lender is not acting for its own account with respect to a portion of any such sums payable to such Foreign Lender; 
  
 (e) without limiting the generality of the foregoing, in
the event that Company is resident for tax purposes in the United States, any Lender that is not a Foreign Lender and has not otherwise established to the reasonable satisfaction of Company and Administrative Agent that it is an exempt recipient (as
defined in section 6049(b)(4) of the Internal Revenue Code and the United States Treasury Regulations thereunder) shall deliver to Company and Administrative Agent (in 

  

 53 

 
such number of copies as shall be requested by the recipient) on or prior to the date on which such Lender becomes a Lender under this Agreement (and from
time to time thereafter as prescribed by applicable law or upon the request of Company or Administrative Agent), duly executed and properly completed copies of Internal Revenue Service Form W-9; and 
  
 (f) without limiting the generality of the foregoing, each
Lender hereby agrees, from time to time after the initial delivery by such Lender of such forms, whenever a lapse in time or change in circumstances renders such forms, certificates or other evidence so delivered obsolete or inaccurate in any
material respect, that such Lender shall promptly (1) deliver to Administrative Agent and Company two original copies of renewals, amendments or additional or successor forms, properly completed and duly executed by such Lender, together with any
other certificate or statement of exemption required in order to confirm or establish that such Lender is entitled to an exemption from or reduction of any Tax with respect to payments to such Lender under the Loan Documents and, if applicable, that
such Lender does not act for its own account with respect to any portion of such payment, or (2) notify Administrative Agent and Company of its inability to deliver any such forms, certificates or other evidence. 
  
 C. Capital Adequacy Adjustment. If any
Lender shall have determined that any Change in Law regarding capital adequacy has or would have the effect of reducing the rate of return on the capital of such Lender or any corporation controlling such Lender as a consequence of, or with
reference to, such Lender’s Loans or Commitments or Letters of Credit or participations therein or other obligations hereunder with respect to the Loans or the Letters of Credit to a level below that which such Lender or such controlling
corporation could have achieved but for such Change in Law (taking into consideration the policies of such Lender or such controlling corporation with regard to capital adequacy), then from time to time, within five Business Days after receipt by
Company from such Lender of the statement referred to in subsection 2.8A, Company shall pay to such Lender such additional amount or amounts as will compensate such Lender or such controlling corporation on an after-tax basis for such reduction.
Company shall not be required to compensate a Lender pursuant to this subsection 2.7C for any reduction in respect of a period occurring more than 270 days prior to the date on which such Lender notifies Company of such Change in Law and such
Lender’s intention to claim compensation therefor, except, if the Change in Law giving rise to such reduction is retroactive, no such time limitation shall apply so long as such Lender requests compensation within 270 days from the date on
which the applicable Government Authority informed such Lender of such Change in Law. 
  

	 	2.8	Statement of Lenders; Obligation of Lenders and Issuing Lender to Mitigate 

  
 A. Statements. Each Lender claiming compensation or reimbursement pursuant to subsection 2.6D,
2.7 or 2.8B shall deliver to Company (with a copy to Administrative Agent) a written statement, setting forth in reasonable detail the basis of the calculation of such compensation or reimbursement, which statement shall be conclusive and binding
upon all parties hereto absent manifest error. 
  

 54 

 B. Mitigation. Each Lender and Issuing Lender agrees that, as promptly as
practicable after the officer of such Lender or Issuing Lender responsible for administering the Loans or Letters of Credit of such Lender or Issuing Lender, as the case may be, becomes aware of the occurrence of an event or the existence of a
condition that would cause such Lender to become an Affected Lender or that would entitle such Lender or Issuing Lender to receive payments under subsection 2.7, it will use reasonable efforts to make, issue, fund or maintain the Commitments of such
Lender or the Loans or Letters of Credit of such Lender or Issuing Lender through another lending or letter of credit office of such Lender or Issuing Lender, if (i) as a result thereof the circumstances which would cause such Lender to be an
Affected Lender would cease to exist or the additional amounts which would otherwise be required to be paid to such Lender or Issuing Lender pursuant to subsection 2.7 would be materially reduced and (ii) as determined by such Lender or Issuing
Lender in its sole discretion, such action would not otherwise be disadvantageous to such Lender or Issuing Lender; provided that such Lender or Issuing Lender will not be obligated to utilize such other lending or letter of credit office
pursuant to this subsection 2.8B unless Company agrees to pay all incremental expenses incurred by such Lender or Issuing Lender as a result of utilizing such other lending or letter of credit office as described above. 
  

	 	2.9	Replacement of a Lender 

  
 If Company receives a statement of amounts due pursuant to subsection 2.8A from a Lender, a Revolving Lender defaults in its obligations
to fund a Revolving Loan pursuant to this Agreement, a Lender (a “Non-Consenting Lender”) refuses to consent to an amendment, modification or waiver of this Agreement that, pursuant to subsection 10.6, requires consent
of 100% of the Lenders or 100% of the Lenders with Obligations directly affected or a Lender becomes an Affected Lender (any such Lender, a “Subject Lender”), so long as (i) no Potential Event of Default or Event of
Default shall have occurred and be continuing and Company has obtained a commitment from another Lender or an Eligible Assignee to purchase at par the Subject Lender’s Loans and assume the Subject Lender’s Commitments and all other
obligations of the Subject Lender hereunder, (ii) such Lender is not an Issuing Lender with respect to any Letters of Credit outstanding (unless all such Letters of Credit are terminated or arrangements acceptable to such Issuing Lender (such as a
“back-to-back” letter of credit) are made) and (iii), if applicable, the Subject Lender is unwilling to withdraw the notice delivered to Company pursuant to subsection 2.8 and/or is unwilling to remedy its default upon ten days prior
written notice to the Subject Lender and Administrative Agent, Company may require the Subject Lender to assign all of its Loans and Commitments to such other Lender, Lenders, Eligible Assignee or Eligible Assignees pursuant to the provisions of
subsection 10.1B; provided that, prior to or concurrently with such replacement, (a) the Subject Lender shall have received payment in full of all principal, interest, fees and other amounts (including all amounts under subsections 2.6D, 2.7
and/or 2.8B (if applicable)) through such date of replacement and a release from its obligations under the Loan Documents, (b) the processing fee required to be paid by subsection 10.1B(i) shall have been paid to Administrative Agent, (c) all of the
requirements for such assignment contained in subsection 10.1B, including, without limitation, the consent of Administrative Agent (if required) and the receipt by Administrative Agent of an executed Assignment Agreement executed by the assignee
(Administrative Agent being hereby authorized 

  

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to execute any Assignment Agreement on behalf of a Subject Lender relating to the assignment of Loans and/or Commitments of such subject Lender) and other
supporting documents, have been fulfilled, and (d) in the event such Subject Lender is a Non-Consenting Lender, each assignee shall consent, at the time of such assignment, to each matter in respect of which such Subject Lender was a Non-Consenting
Lender and Company also requires each other Subject Lender that is a Non-Consenting Lender to assign its Loans and Commitments. For the avoidance of doubt, if a Lender is a Non-Consenting Lender solely because it refused to consent to an amendment,
modification or waiver that required the consent of 100% of Lenders with Obligations directly affected thereby (which amendment, modification or waiver did not accordingly require the consent of 100% of all Lenders), the Loans and Commitments of
such Non-Consenting Lender that are subject to the assignments required by this subsection 2.9 shall include only those Loans and Commitments that constitute the Obligations directly affected by the amendment, modification or waiver to which such
Non-Consenting Lender refused to provide its consent. 
  

	Section	3. LETTERS OF CREDIT 

  

	 	3.1	Issuance of Letters of Credit and Lenders’ Purchase of Participations Therein 

  
 A. Letters of Credit. Company may request, in accordance with the provisions of this
subsection 3.1, from time to time during the period from the Closing Date to but excluding the 30th day prior to the
Revolving Loan Commitment Termination Date, that Issuing Lender issue Letters of Credit for the account of Company for the general corporate purposes of Company or a Subsidiary of Company. Subject to the terms and conditions of this Agreement and in
reliance upon the representations and warranties of Company herein set forth, Issuing Lender shall issue such Letters of Credit in accordance with the provisions of this subsection 3.1; provided that Company shall not request that Issuing
Lender issue: 
  
 (i) any Letter of Credit if,
after giving effect to such issuance, the Total Utilization of Revolving Loan Commitments would exceed the Revolving Loan Commitment Amount then in effect; 
  
 (ii) any Letter of Credit if, after giving effect to such issuance, the Letter of Credit Usage would exceed $5,000,000; 
  
 (iii) any Standby Letter of Credit having an expiration date
later than the earlier of (a) 30 days prior to the Revolving Loan Commitment Termination Date and (b) the date which is one year from the date of issuance of such Standby Letter of Credit; provided that the immediately preceding clause (b)
shall not prevent Issuing Lender from agreeing that a Standby Letter of Credit will automatically be extended for one or more successive periods not to exceed one year each unless Issuing Lender elects not to extend for any such additional period;
and provided, further that Issuing Lender shall elect not to extend such Standby Letter of Credit if it has knowledge that an Event of Default has occurred and is continuing (and has not been waived in accordance with subsection 10.6)
at the time Issuing Lender must elect whether or not to allow such extension; 
  

 56 

 (iv) any Standby Letter of Credit issued for the purpose of supporting (a) trade payables
or (b) any Indebtedness constituting “antecedent debt” (as that term is used in Section 547 of the Bankruptcy Code); 
  
 (v) any Commercial Letter of Credit having an expiration date (a) later than the earlier of (1) the date which is 30 days prior to the
Revolving Loan Commitment Termination Date and (2) the date which is 180 days from the date of issuance of such Commercial Letter of Credit or (b) that is otherwise unacceptable to Issuing Lender in its reasonable discretion; or 
  
 (vi) any Letter of Credit denominated in a currency other
than Dollars. 
  
 All Existing Letters of Credit
shall be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof. 
  

B. Mechanics of Issuance. 
  
 (i) Request for Issuance. Whenever Company desires the issuance of a Letter of Credit, it shall
deliver to Administrative Agent a Request for Issuance no later than 9:00 A.M. (San Francisco time) at least three Business Days, or such shorter period as may be agreed to by Issuing Lender in any particular instance, in advance of the proposed
date of issuance. Issuing Lender, in its reasonable discretion, may require changes in the text of the proposed Letter of Credit or any documents described in or attached to the Request for Issuance. In furtherance of the provisions of subsection
10.8, and not in limitation thereof, Company may submit Requests for Issuance by telefacsimile and Administrative Agent and Issuing Lender may rely and act upon any such Request for Issuance without receiving an original signed copy thereof. No
Letter of Credit shall require payment against a conforming demand for payment to be made thereunder on the same business day (under the laws of the jurisdiction in which the office of Issuing Lender to which such demand for payment is required to
be presented is located) on which such demand for payment is presented if such presentation is made after 10:00 A.M. (in the time zone of such office of Issuing Lender) on such business day. 
  
 (ii) Issuance of Letter of Credit. Upon satisfaction
or waiver (in accordance with subsection 10.6) of the conditions set forth in subsection 4.3, Issuing Lender shall issue the requested Letter of Credit in accordance with Issuing Lender’s standard operating procedures. 
  
 (iii) Notification to Revolving Lenders. Upon the
issuance of or amendment to any Letter of Credit, Issuing Lender shall promptly notify Administrative Agent and Company of such issuance or amendment in writing and such notice shall be accompanied by a copy of such Letter of Credit or amendment.
Upon receipt of such notice (or, if Administrative Agent is Issuing Lender, together with such notice), Administrative Agent shall notify each Revolving Lender in writing of such issuance or amendment and the amount of such Revolving Lender’s
respective participation in such 

  

 57 

 
Letter of Credit or amendment, and, if so requested by a Revolving Lender, Administrative Agent shall provide such Lender with a copy of such Letter of
Credit or amendment. 
  
 C. Revolving
Lenders’ Purchase of Participations in Letters of Credit. Immediately upon the issuance of each Letter of Credit, each Revolving Lender shall be deemed to, and hereby agrees to, have irrevocably purchased from the Issuing Lender a
participation in such Letter of Credit and any drawings honored thereunder in an amount equal to such Revolving Lender’s Pro Rata Share of the maximum amount that is or at any time may become available to be drawn thereunder. 
  

	 	3.2	Letter of Credit Fees 

  
 Company agrees to pay the following amounts with respect to Letters of Credit issued hereunder: 
  
 (i) with respect to each Letter of Credit, (a) a fronting
fee, payable directly to Issuing Lender for its own account, equal to 0.25% per annum of the daily amount available to be drawn under such Letter of Credit and (b) a letter of credit fee, payable to Administrative Agent for the account of Revolving
Lenders, equal to the applicable Eurodollar Rate Margin for Revolving Loans plus, upon the application of increased rates of interest pursuant to subsection 2.2E, 2% per annum, multiplied by the daily amount available to be drawn under
such Letter of Credit, each such fronting fee or letter of credit fee to be payable in arrears on and to (but excluding) March 31, June 30, September 30 and December 31 of each calendar year and computed on the basis of a 360-day year for the actual
number of days elapsed; 
  
 (ii) with respect to
the issuance, amendment or transfer of each Letter of Credit and each payment of a drawing made thereunder (without duplication of the fees payable under clause (i) above), documentary and processing charges payable directly to Issuing Lender for
its own account in accordance with Issuing Lender’s standard schedule for such charges in effect at the time of such issuance, amendment, transfer or payment, as the case may be. 
  
 For purposes of calculating any fees payable under clause (i) of this subsection 3.2, the daily amount available to be drawn under any
Letter of Credit shall be determined as of the close of business on any date of determination. 
  

	 	3.3	Drawings and Reimbursement of Amounts Paid Under Letters of Credit 

  
 A. Responsibility of Issuing Lender With Respect to Drawings. In determining whether to
honor any drawing under any Letter of Credit by the beneficiary thereof, Issuing Lender shall be responsible only to examine the documents delivered under such Letter of Credit with reasonable care so as to ascertain whether they appear on their
face to be in accordance with the terms and conditions of such Letter of Credit. 
  

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 B. Reimbursement by Company of Amounts Paid Under Letters of Credit.
In the event Issuing Lender has determined to honor a drawing under a Letter of Credit issued by it, Issuing Lender shall immediately notify Company and Administrative Agent, and Company shall reimburse Issuing Lender on or before the Business Day
immediately following the date on which such drawing is honored (the “Reimbursement Date”) in an amount in Dollars and in same day funds equal to the amount of such payment; provided that, anything contained in
this Agreement to the contrary notwithstanding, (i) unless Company shall have notified Administrative Agent and Issuing Lender prior to 10:00 A.M. (San Francisco time) on the date such drawing is honored that Company intends to reimburse Issuing
Lender for the amount of such payment with funds other than the proceeds of Revolving Loans, Company shall be deemed to have given a timely Notice of Borrowing to Administrative Agent requesting Revolving Lenders to make Revolving Loans that are
Base Rate Loans on the Reimbursement Date in an amount in Dollars equal to the amount of such payment and (ii) subject to satisfaction or waiver of the conditions specified in subsection 4.2B, Revolving Lenders shall, on the Reimbursement Date, make
Revolving Loans that are Base Rate Loans in the amount of such payment, the proceeds of which shall be applied directly by Administrative Agent to reimburse Issuing Lender for the amount of such payment; and provided, further that if
for any reason proceeds of Revolving Loans are not received by Issuing Lender on the Reimbursement Date in an amount equal to the amount of such payment, Company shall reimburse Issuing Lender, on demand, in an amount in same day funds equal to the
excess of the amount of such payment over the aggregate amount of such Revolving Loans, if any, which are so received. Nothing in this subsection 3.3B shall be deemed to relieve any Revolving Lender from its obligation to make Revolving Loans on the
terms and conditions set forth in this Agreement, and Company shall retain any and all rights it may have against any Revolving Lender resulting from the failure of such Revolving Lender to make such Revolving Loans under this subsection 3.3B.

  
 C. Payment by Lenders of
Unreimbursed Amounts Paid Under Letters of Credit. 
  
 (i) Payment by Revolving Lenders. In the event that Company shall fail for any reason to reimburse Issuing Lender as provided in subsection 3.3B in an amount equal to the amount of any payment by Issuing
Lender, Issuing Lender shall promptly notify Administrative Agent, who shall promptly notify each Revolving Lender of the unreimbursed amount of such honored drawing and of such Revolving Lender’s respective participation therein based on such
Revolving Lender’s Pro Rata Share. Each Revolving Lender (other than Issuing Lender) shall make available to Administrative Agent an amount equal to its respective participation, in Dollars, in same day funds, at the Funding and Payment Office,
not later than 12:00 Noon (San Francisco time) on the first Business Day after the date notified by Administrative Agent, and Administrative Agent shall make available to Issuing Lender in Dollars, in same day funds, at the office of Issuing Lender
on such Business Day the aggregate amount of the payments so received by Administrative Agent. In the event that any Revolving Lender fails to make available to Administrative Agent on such Business Day the amount of such Revolving Lender’s
participation in such Letter of Credit as provided in this subsection 3.3C, Issuing Lender shall be entitled to recover such amount on demand from such Revolving 

  

 59 

 
Lender together with interest thereon at the rate customarily used by Issuing Lender for the correction of errors among banks for three Business Days and
thereafter at the Base Rate. Nothing in this subsection 3.3C shall be deemed to prejudice the right of Administrative Agent to recover, for the benefit of Revolving Lenders, from Issuing Lender any amounts made available to Issuing Lender pursuant
to this subsection 3.3C in the event that it is determined by the final judgment of a court of competent jurisdiction that the payment with respect to a Letter of Credit by Issuing Lender in respect of which payments were made by Revolving Lenders
constituted gross negligence or willful misconduct on the part of Issuing Lender. 
  
 (ii) Distribution to Lenders of Reimbursements Received From Company. In the event Issuing Lender shall have been reimbursed by
other Revolving Lenders pursuant to subsection 3.3C(i) for all or any portion of any payment by Issuing Lender under a Letter of Credit issued by it, and Administrative Agent or Issuing Lender thereafter receives any payments from Company in
reimbursement of such payment under the Letter of Credit, to the extent any such payment is received by Issuing Lender, it shall distribute such payment to Administrative Agent, and Administrative Agent shall distribute to each other Revolving
Lender that has paid all amounts payable by it under subsection 3.3C(i) with respect to such payment such Revolving Lender’s Pro Rata Share of all payments subsequently received by Administrative Agent or by Issuing Lender from Company. Any
such distribution shall be made to a Revolving Lender at the account specified in subsection 2.4C(iii). 
  
 D. Interest on Amounts Paid Under Letters of Credit. 
  
 (i) Payment of Interest by Company. Company agrees to pay to Administrative Agent, with respect to
payments under any Letters of Credit issued by Issuing Lender, interest on the amount paid by Issuing Lender in respect of each such payment from the date a drawing is honored to but excluding the date such amount is reimbursed by Company (including
any such reimbursement out of the proceeds of Revolving Loans pursuant to subsection 3.3B) at a rate equal to (a) for the period from the date such drawing is honored to but excluding the Reimbursement Date, the rate then in effect under this
Agreement with respect to Revolving Loans that are Base Rate Loans and (b) thereafter, a rate which is 2% per annum in excess of the rate of interest otherwise payable under this Agreement with respect to Revolving Loans that are Base Rate Loans.
Interest payable pursuant to this subsection 3.3D(i) shall be computed on the basis of a 365-day or 366-day year, as the case may be, for the actual number of days elapsed in the period during which it accrues and shall be payable on demand or, if
no demand is made, on the date on which the related drawing under a Letter of Credit is reimbursed in full. 
  
 (ii) Distribution of Interest Payments by Administrative Agent. Promptly upon receipt by Administrative Agent of any payment of
interest pursuant to subsection 3.3D(i) with respect to a payment under a Letter of Credit, (a) Administrative Agent shall distribute to (x) each Revolving Lender (including Issuing Lender) out of the interest received by Administrative Agent in
respect of the period from the date such drawing is honored to but excluding the date on which Issuing Lender is reimbursed for the amount 

  

 60 

 
of such payment (including any such reimbursement out of the proceeds of Revolving Loans pursuant to subsection 3.3B), the amount that such Revolving Lender
would have been entitled to receive in respect of the letter of credit fee that would have been payable in respect of such Letter of Credit for such period pursuant to subsection 3.2 if no drawing had been honored under such Letter of Credit, and
(y) Issuing Lender the amount, if any, remaining after payment of the amounts applied pursuant to clause (x), and (b) in the event Issuing Lender shall have been reimbursed by other Revolving Lenders pursuant to subsection 3.3C(i) for all or any
portion of such payment, Administrative Agent shall distribute to each Revolving Lender (including Issuing Lender) that has paid all amounts payable by it under subsection 3.3C(i) with respect to such payment such Revolving Lender’s Pro Rata
Share of any interest received by Administrative Agent in respect of that portion of such payment so made by Revolving Lenders for the period from the date on which Issuing Lender was so reimbursed to but excluding the date on which such portion of
such payment is reimbursed by Company. Any such distribution shall be made to a Revolving Lender at the account specified in subsection 2.4C(iii). 
  

	 	3.4	Obligations Absolute 

  
 The obligation of Company to reimburse Issuing Lender for payments under the Letters of Credit issued by it and to repay any Revolving
Loans made by Revolving Lenders pursuant to subsection 3.3B and the obligations of Revolving Lenders under subsection 3.3C(i) shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms of this Agreement under all
circumstances including any of the following circumstances: 
  
 (i) any lack of validity or enforceability of any Letter of Credit; 
  
 (ii) the existence of any claim, set-off, defense or other right which Company or any Lender may have at any time against a beneficiary or
any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting), Issuing Lender or other Revolving Lender or any other Person or, in the case of a Revolving Lender, against Company, whether in connection with this
Agreement, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between Company or one of its Subsidiaries and the beneficiary for which any Letter of Credit was procured); 
  
 (iii) any draft or other document presented under any Letter
of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
  
 (iv) payment by Issuing Lender under any Letter of Credit against presentation of a draft or other document which does not strictly comply
with the terms of such Letter of Credit; 
  
 (v)
any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of Company or any of its Subsidiaries; 
  

 61 

 (vi) any breach of this Agreement or any other Loan Document by any party thereto;

  
 (vii) any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing; or 
  
 (viii) the fact that an Event of Default or a Potential Event of Default shall have occurred and be continuing; 
  
 provided, in each case, that payment by the Issuing Lender under the applicable Letter of Credit shall not have constituted gross negligence or willful misconduct
of Issuing Lender under the circumstances in question (as determined by a final judgment of a court of competent jurisdiction). 
  

	 	3.5	Nature of Issuing Lender’s Duties 

  
 As between Company and Issuing Lender, Company assumes all risks of the acts and omissions of, or misuse of the Letters of Credit issued
by Issuing Lender by, the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, Issuing Lender shall not be responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal
effect of any document submitted by any party in connection with the application for and issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;
(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid
or ineffective for any reason; (iii) failure of the beneficiary of any such Letter of Credit to comply fully with any conditions required in order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or
delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to
make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from
causes beyond the control of Issuing Lender, including any act or omission by a Government Authority, and none of the above shall affect or impair, or prevent the vesting of, any of Issuing Lender’s rights or powers hereunder. 
  
 In furtherance and extension and not in limitation of the
specific provisions set forth in the first paragraph of this subsection 3.5, any action taken or omitted by Issuing Lender under or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if
taken or omitted in good faith, shall not put Issuing Lender under any resulting liability to Company. 
  
 Notwithstanding anything to the contrary contained in this subsection 3.5, Company shall retain any and all rights it may have against
Issuing Lender for any liability 

  

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arising solely out of the gross negligence or willful misconduct of Issuing Lender, as determined by a final judgment of a court of competent jurisdiction.

  

	Section	4. CONDITIONS TO LOANS AND LETTERS OF CREDIT 

  
 The obligations of Lenders to make Loans and the issuance of Letters of Credit hereunder are subject to the satisfaction of the following
conditions. 
  

	 	4.1	Conditions to Term Loans and Initial Revolving Loans and Swing Line Loans 

  
 The obligations of Lenders to make the Term Loans and any Revolving Loans and Swing Line Loans to be made on
the Closing Date are, in addition to the conditions precedent specified in subsection 4.2, subject to prior or concurrent satisfaction of the following conditions: 
  
 A. Loan Party Documents. On or before the Closing Date, Company shall, and shall cause
each other Loan Party to, deliver to Lenders (or to Administrative Agent with sufficient originally executed copies, where appropriate, for each Lender) the following with respect to Company or such Loan Party, as the case may be, each, unless
otherwise noted, dated the Closing Date: 
  
 (i)
Copies of the Organizational Documents of such Person, certified by the Secretary of State of its jurisdiction of organization or, if such document is of a type that may not be so certified, certified by the secretary or similar officer of the
applicable Loan Party, together with a good standing certificate from the Secretary of State of its jurisdiction of organization and, to the extent generally available, a certificate or other evidence of good standing as to payment of any applicable
franchise or similar taxes from the appropriate taxing authority of such jurisdiction, each dated a recent date prior to the Closing Date; 
  
 (ii) Resolutions of the Governing Body of such Person approving and authorizing the execution, delivery and performance of the Loan
Documents to which it is a party, certified as of the Closing Date by the secretary or similar officer of such Person as being in full force and effect without modification or amendment; 
  
 (iii) Signature and incumbency certificates of the officers of such Person executing the Loan Documents to
which it is a party; 
  
 (iv) Executed originals
of the Loan Documents to which such Person is a party; and 
  
 (v) Such other documents as Administrative Agent may reasonably request. 
  
 B. Fees. Company shall have paid to Administrative Agent, for distribution (as appropriate) to Administrative Agent
and Lenders, the fees payable on the Closing Date referred to in subsection 2.3B. 
  

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 C. Corporate and Capital Structure; Ownership. The corporate
organizational structure, capital structure and ownership of Company and its Subsidiaries shall be as set forth on Schedule 4.1C annexed hereto. 
  
 D. Representations and Warranties; Performance of Agreements. Company shall have delivered to Administrative Agent an
Officer’s Certificate, in form and substance satisfactory to Administrative Agent, to the effect that the representations and warranties in Section 5 are true, correct and complete in all material respects on and as of the Closing Date to the
same extent as though made on and as of that date (or, to the extent such representations and warranties specifically relate to an earlier date, that such representations and warranties were true, correct and complete in all material respects on and
as of such earlier date) and that Company shall have performed in all material respects all agreements and satisfied all conditions which this Agreement provides shall be performed or satisfied by it on or before the Closing Date except as otherwise
disclosed to and agreed to in writing by Administrative Agent; provided that, if a representation and warranty, covenant or condition is qualified as to materiality, the applicable materiality qualifier set forth above shall be disregarded
with respect to such representation and warranty, covenant or condition for purposes of this condition. 
  
 E. Financial Statements; Pro Forma Financial Statements. On or before the Closing Date, Lenders shall have received
from Company (i) audited financial statements of Company and its Subsidiaries for Fiscal Years 2001, 2002 and 2003, consisting of balance sheets and the related consolidated statements of income, stockholders’ equity and cash flows for such
Fiscal Years, audited by independent public accountants of recognized national standing and prepared in conformity with GAAP, together with such accountants’ report thereon, (ii) unaudited consolidated balance sheets as at March 28, June 27 and
September 26, 2004, and the related consolidated statements of income, stockholders’ equity and cash flows of Company and its Subsidiaries for the Fiscal Quarter then ended, certified by the chief financial officer of Company that they fairly
present the financial condition of Company and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments,
(iii) a pro forma consolidated balance sheet as at the Closing Date giving effect to the transactions contemplated hereby, which pro forma financial statements shall be in form and substance satisfactory to Administrative Agent, and (iv) projected
financial statements consisting of consolidated balance sheets, statements of income and cash flow statements of Company and its Subsidiaries for Fiscal Years 2004 through and including 2011. 
  
 F. Opinions of Counsel to Loan Parties.
Lenders shall have received originally executed copies of one or more favorable written opinions of Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P., counsel for Loan Parties, in form and substance reasonably
satisfactory to Administrative Agent and its counsel, dated as of the Closing Date and setting forth substantially the matters in the opinions designated in Exhibit VIII annexed hereto and as to such other matters as Administrative Agent
acting on behalf of Lenders may reasonably request (this Agreement constituting a written request by Company to such counsel to deliver such opinions to Lenders). 
  

 64 

 G. Evidence of Insurance. Administrative Agent shall have received a
certificate from Company’s insurance broker or other evidence satisfactory to it that all insurance required to be maintained pursuant to subsection 6.4 is in full force and effect and that Administrative Agent on behalf of Lenders has been
named as additional insured and/or loss payee thereunder to the extent required under subsection 6.4. 
  
 H. Necessary Governmental Authorizations and Consents; Expiration of Waiting Periods, Etc. Company shall have obtained all
Governmental Authorizations and all consents of other Persons, in each case that are necessary or reasonably advisable in connection with the transactions contemplated by the Loan Documents. Each such Governmental Authorization and consent shall be
in full force and effect, except in a case where the failure to obtain or maintain a Governmental Authorization or consent, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. All
applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the transactions contemplated by the Loan Documents or the
financing thereof. No action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable Government Authority to take action to set aside its
consent on its own motion shall have expired. 
  
 I. Security Interests in Personal and Mixed Property. To the extent not otherwise satisfied pursuant to subsection 4.1J, Administrative Agent shall have received evidence satisfactory to it that Company and Subsidiary
Guarantors shall have taken or caused to be taken all such actions, executed and delivered or caused to be executed and delivered all such agreements, documents and instruments, and made or caused to be made all such filings and recordings (other
than the filing or recording of items described in clauses (ii), (iii) and (iv) below) that may be necessary or, in the opinion of Administrative Agent, desirable in order to create in favor of Administrative Agent, for the benefit of Lenders, a
valid and (upon such filing and recording) perfected First Priority security interest in the entire personal and mixed property Collateral. Such actions shall include the following: 
  
 (i) Stock Certificates and Instruments. Delivery to Administrative Agent of (a) certificates (which
certificates shall be accompanied by irrevocable undated stock powers, duly endorsed in blank and otherwise satisfactory in form and substance to Administrative Agent) representing all Capital Stock pledged pursuant to the Security Agreement and (b)
all promissory notes or other instruments (duly endorsed, where appropriate, in a manner satisfactory to Administrative Agent) evidencing any Collateral; 
  
 (ii) Lien Searches and UCC Termination Statements. Delivery to Administrative Agent of (a) the results of a recent search, by a
Person satisfactory to Administrative Agent, of all effective UCC financing statements and fixture filings and all judgment and tax lien filings which may have been made with respect to any personal or mixed property of any Loan Party, together with
copies of all such filings disclosed by such search, and (b) duly completed UCC termination statements, and authorization of the filing thereof from the applicable secured party, as may be necessary to terminate any effective UCC financing
statements or fixture filings disclosed in such search (other than 

  

 65 

 
any such financing statements or fixture filings in respect of Liens permitted to remain outstanding pursuant to the terms of this Agreement). 
  
 (iii) UCC Financing Statements and Fixture Filings.
Delivery to Administrative Agent of duly completed UCC financing statements and, where appropriate, fixture filings, with respect to all personal and mixed property Collateral of such Loan Party, for filing in all jurisdictions as may be necessary
or, in the opinion of Administrative Agent, desirable to perfect the security interests created in such Collateral pursuant to the Collateral Documents; and 
  
 (iv) Cover Sheets, Etc. Delivery to Administrative Agent of all cover sheets or other documents or instruments required to be filed
with any IP Filing Office in order to create or perfect Liens in respect of any IP Collateral, together with releases duly executed (if necessary) of security interests by all applicable Persons for filing in all applicable jurisdictions as may be
necessary to terminate any effective filings in any IP Filing Office in respect of any IP Collateral (other than any such filings in respect of Liens permitted to remain outstanding pursuant to the terms of this Agreement). 
  
 J. Closing Date Mortgages; Closing Date Mortgage
Policies; Etc. Administrative Agent shall have received from Company and each applicable Subsidiary Guarantor: 
  
 (i) Closing Date Mortgages. Fully executed and notarized Mortgages (each a “Closing Date Mortgage” and,
collectively, the “Closing Date Mortgages”), in proper form for recording in all appropriate places in all applicable jurisdictions, encumbering each Real Property Asset listed in Schedule 4.1J annexed hereto (each a
“Closing Date Mortgaged Property” and, collectively, the “Closing Date Mortgaged Properties”); 
  
 (ii) Opinions of Local Counsel. An opinion of counsel (which counsel shall be reasonably satisfactory to Administrative Agent) in
each state in which a Closing Date Mortgaged Property is located (other than the States of California, Florida and Ohio) with respect to the enforceability of the form(s) of Closing Date Mortgages to be recorded in such state and such other matters
as Administrative Agent may reasonably request, in each case in form and substance reasonably satisfactory to Administrative Agent; 
  
 (iii) Title Insurance. (a) ALTA mortgagee title insurance policies or unconditional commitments therefor (the “Closing Date
Mortgage Policies”) issued by the Title Company with respect to the Closing Date Mortgaged Properties listed in Part A of Schedule 4.1J annexed hereto, in amounts not less than the respective amounts designated therein with respect
to any particular Closing Date Mortgaged Properties, insuring fee simple title to each such Closing Date Mortgaged Property vested in such Loan Party and assuring Administrative Agent that the applicable Closing Date Mortgages create valid and
enforceable First Priority mortgage Liens on the respective Closing Date Mortgaged Properties encumbered thereby, subject only to a standard survey exception, which Closing Date Mortgage Policies (1) shall include an endorsement for mechanics’
liens, for future advances under this Agreement and for any 

  

 66 

 
other matters reasonably requested by Administrative Agent and (2) shall provide for affirmative insurance and such reinsurance as Administrative Agent may
reasonably request, all of the foregoing in form and substance reasonably satisfactory to Administrative Agent; and (b) evidence satisfactory to Administrative Agent that such Loan Party has (i) delivered to the Title Company all certificates and
affidavits required by the Title Company in connection with the issuance of the Closing Date Mortgage Policies and (ii) paid to the Title Company or to the appropriate Government Authorities all expenses and premiums of the Title Company in
connection with the issuance of the Closing Date Mortgage Policies and all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Closing Date Mortgages in the appropriate real estate
records; 
  
 (iv) Title Reports. With
respect to each Closing Date Mortgaged Property listed in Part B of Schedule 4.1J annexed hereto, a title report issued by the Title Company with respect thereto, dated not more than 30 days prior to the Closing Date and satisfactory in form
and substance to Administrative Agent; 
  
 (v)
Copies of Documents Relating to Title Exceptions. Copies of all recorded documents listed as exceptions to title or otherwise referred to in the Closing Date Mortgage Policies or in the title reports delivered pursuant to subsection 4.1J(iv);
and 
  
 (vi) Matters Relating to Flood Hazard
Properties. (a) Evidence, which may be in the form of a letter from an insurance broker or a municipal engineer, as to whether (1) any Closing Date Mortgaged Property is a Flood Hazard Property and (2) the community in which any such Flood
Hazard Property is located is participating in the National Flood Insurance Program, (b) if there are any such Flood Hazard Properties, such Loan Party’s written acknowledgement of receipt of written notification from Administrative Agent (1)
as to the existence of each such Flood Hazard Property and (2) as to whether the community in which each such Flood Hazard Property is located is participating in the National Flood Insurance Program, and (c) in the event any such Flood Hazard
Property is located in a community that participates in the National Flood Insurance Program, evidence that Company has obtained flood insurance in respect of such Flood Hazard Property to the extent required under the applicable regulations of the
Board of Governors of the Federal Reserve System. 
  
 K. Matters Relating to Existing Indebtedness of Company and its Subsidiaries. 
  
 (i) Termination of Existing Credit Agreement and Related Liens; Existing Letters of Credit. On the Closing Date, Company and its
Subsidiaries shall have (a) repaid in full all Indebtedness outstanding under the Existing Credit Agreement (the aggregate principal amount of which Indebtedness shall not exceed $65,000,000), (b) terminated any commitments to lend or make other
extensions of credit thereunder, (c) delivered to Administrative Agent all documents or instruments necessary to release all Liens securing Indebtedness or other obligations of Company and its Subsidiaries 

  

 67 

 
thereunder, and (d) made arrangements satisfactory to Administrative Agent with respect to any letters of credit outstanding thereunder. 
  
 (ii) Redemption of Senior Subordinated Notes.
Administrative Agent shall have received evidence that Company shall have redeemed all of the outstanding Senior Subordinated Notes for aggregate consideration, including accrued interest and premiums, not to exceed $11,000,000. 
  
 (iii) Redemption of Senior Preferred Stock.
Administrative Agent shall have received evidence that Company shall have redeemed a portion of the outstanding Senior Preferred Stock for aggregate consideration, including accrued dividends, not less than $30,000,000. 
  
 L. Financial Calculations.
Administrative Agent shall have received a certificate signed by Company’s chief financial officer demonstrating in reasonable detail, in each case after giving pro forma effect to the transactions contemplated by the Loan Documents, as of the
Closing Date Consolidated EBITDA for the twelve Fiscal Months most recently ended of not less than $31,000,000. 
  
 M. Sources and Uses. Administrative Agent shall have received evidence reasonably satisfactory to it that the
approximate amounts to be expended in connection with this Agreement and the transactions contemplated hereby as set forth in Schedule 4.1M annexed hereto have been applied or irrevocably committed by Company to be applied as set forth in
such Schedule 4.1M. 
  
 N.
Completion of Proceedings. All corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incidental thereto not previously found acceptable by Administrative
Agent, acting on behalf of Lenders, and its counsel shall be satisfactory in form and substance to Administrative Agent and such counsel, and Administrative Agent and such counsel shall have received all such counterpart originals or certified
copies of such documents as Administrative Agent may reasonably request. 
  

	 	4.2	Conditions to All Loans 

  
 The obligation of each Lender to make its Loans on each Funding Date are subject to the following further conditions precedent:

  
 A. Administrative Agent shall have
received before that Funding Date, in accordance with the provisions of subsection 2.1B, a duly executed Notice of Borrowing, in each case signed by a duly authorized Officer of Company. 
  
 B. As of that Funding Date: 
  
 (i) The representations and warranties contained herein and in the other Loan Documents shall be true,
correct and complete in all material respects on and as of that 

  

 68 

 
Funding Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an
earlier date, in which case such representations and warranties shall have been true, correct and complete in all material respects on and as of such earlier date; provided, that, if a representation and warranty is qualified as to
materiality, the materiality qualifier set forth above shall be disregarded with respect to such representation and warranty for purposes of this condition; 
  
 (ii) No event shall have occurred and be continuing or would result from the consummation of the borrowing contemplated by such Notice of
Borrowing that would constitute an Event of Default or a Potential Event of Default; 
  
 (iii) Each Loan Party shall have performed in all material respects all agreements and satisfied all conditions which this Agreement
provides shall be performed or satisfied by it on or before that Funding Date; and 
  
 (iv) No order, judgment or decree of any arbitrator or Government Authority shall purport to enjoin or restrain such Lender from making
the Loans to be made by it on that Funding Date. 
  

	 	4.3	Conditions to Letters of Credit 

  
 The issuance of any Letter of Credit hereunder (whether or not Issuing Lender is obligated to issue such Letter of Credit) is subject to
the following conditions precedent: 
  
 A.
On or before the date of issuance of the initial Letter of Credit pursuant to this Agreement, the initial Loans shall have been made. 
  
 B. On or before the date of issuance of such Letter of Credit, Administrative Agent shall have received, in accordance with the
provisions of subsection 3.1B(i), an originally executed Request for Issuance (or a facsimile copy thereof) in each case signed by a duly authorized Officer of Company, together with all other information specified in subsection 3.1B(i) and such
other documents or information as Issuing Lender may reasonably require in connection with the issuance of such Letter of Credit. 
  
 C. On the date of issuance of such Letter of Credit, all conditions precedent described in subsection 4.2B shall be satisfied to
the same extent as if the issuance of such Letter of Credit were the making of a Loan and the date of issuance of such Letter of Credit were a Funding Date. 
  

 69 

	Section	5. COMPANY’S REPRESENTATIONS AND WARRANTIES 

  
 In order to induce Lenders to enter into this Agreement and to make the Loans, to induce Issuing Lender to issue Letters of Credit and to
induce Revolving Lenders to purchase participations therein, Company represents and warrants to each Lender: 
  

	 	5.1	Organization, Powers, Qualification, Good Standing, Business and Subsidiaries 

  
 A. Organization and Powers. Company is a corporation, partnership, trust or limited
liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of organization as specified in Schedule 5.1 annexed hereto. Company has all requisite power and authority to own and operate its
properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby. 
  
 B. Qualification and Good Standing.
Company is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good
standing has not had and could not reasonably be expected to result in a Material Adverse Effect. 
  
 C. Conduct of Business. Company and its Subsidiaries are engaged only in the businesses permitted to be engaged in
pursuant to subsection 7.10. 
  
 D.
Subsidiaries. All of the Subsidiaries of Company as of the Closing Date and their jurisdictions of organization are identified in Schedule 5.1 annexed hereto. The Capital Stock of each of the Subsidiaries of Company
identified in Schedule 5.1 annexed hereto is duly authorized, validly issued, fully paid and nonassessable and none of such Capital Stock constitutes Margin Stock. Each of the Subsidiaries of Company identified in Schedule 5.1 annexed
hereto is a corporation, partnership, trust or limited liability company duly organized, validly existing and in good standing under the laws of its respective jurisdiction of organization set forth therein, has all requisite power and authority to
own and operate its properties and to carry on its business as now conducted and as proposed to be conducted, and is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out
its business and operations, in each case except where failure to be so qualified or in good standing or a lack of such power and authority has not had and could not reasonably be expected to result in a Material Adverse Effect. Schedule 5.1
annexed hereto correctly sets forth the ownership interest of Company and each of its Subsidiaries in each of the Subsidiaries of Company identified therein. 
  

	 	5.2	Authorization of Borrowing, etc. 

  
 A. Authorization of Borrowing. The execution, delivery and performance of the Loan Documents have been duly
authorized by all necessary action on the part of each Loan Party that is a party thereto. 
  
 B. No Conflict. The execution, delivery and performance by Loan Parties of the Loan Documents to which they are
parties and the consummation of the transactions contemplated by the Loan Documents do not and will not (i) violate any provision of any law or any governmental rule or regulation applicable to Company or any of its Subsidiaries, the Organizational
Documents of Company or any of its Subsidiaries or any order, judgment or 

  

 70 

 
decree of any court or other Government Authority binding on Company or any of its Subsidiaries, (ii) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any Contractual Obligation of Company or any of its Subsidiaries, (iii) result in or require the creation or imposition of any Lien upon any of the properties or assets of Company or any of
its Subsidiaries (other than any Liens created under any of the Loan Documents in favor of Administrative Agent on behalf of Lenders), or (iv) require any approval of stockholders or any approval or consent of any Person under any Contractual
Obligation of Company or any of its Subsidiaries, except for such approvals or consents which will be obtained on or before the Closing Date and disclosed in writing to Lenders. 
  
 C. Governmental Consents. The execution, delivery and performance by Loan Parties of
the Loan Documents to which they are parties and the consummation of the transactions contemplated by the Loan Documents do not and will not require any Governmental Authorization. 
  
 D. Binding Obligation. Each of the Loan Documents has been duly executed and delivered
by each Loan Party that is a party thereto and is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability. 
  

	 	5.3	Financial Condition 

  
 Company has heretofore delivered to Lenders, at Lenders’ request, the financial statements and information described in subsection
4.1E. All such statements other than pro forma financial statements were prepared in conformity with GAAP and fairly present, in all material respects, the financial position (on a consolidated basis) of the entities described in such financial
statements as at the respective dates thereof and the results of operations and cash flows (on a consolidated basis) of the entities described therein for each of the periods then ended, subject, in the case of any such unaudited financial
statements, to changes resulting from audit and normal year-end adjustments. Except as set forth in Schedule 5.6 annexed hereto, neither Company nor any of its Subsidiaries has (and will not have following the funding of the initial Loans)
any Contingent Obligation, contingent liability or liability for taxes, long-term lease or unusual forward or long-term commitment (other than any obligations arising under the Loan Documents) that, as of the Closing Date, is not reflected in the
foregoing financial statements or the notes thereto and, as of any Funding Date subsequent to the Closing Date, is not reflected in the most recent financial statements delivered to Lenders pursuant to subsection 6.1 or the notes thereto and that,
in any such case, is material in relation to the business, operations, properties, assets, condition (financial or otherwise) or prospects of Company or any of its Subsidiaries. 
  

	 	5.4	No Material Adverse Change; No Restricted Junior Payments 

  
 Since December 28, 2003, no event or change has occurred that has resulted in, either in any case or in the
aggregate, a Material Adverse Effect. 
  

 71 

	 	5.5	Title to Properties; Liens; Real Property; Intellectual Property 

  
 A. Title to Properties; Liens. Company and its Subsidiaries have (i) good, sufficient and
legal title to (in the case of fee interests in real property), (ii) valid leasehold interests in (in the case of leasehold interests in real or personal property), or (iii) good title to (in the case of all other personal property), all of their
respective properties and assets reflected in the financial statements referred to in subsection 5.3 or in the most recent financial statements delivered pursuant to subsection 6.1, in each case except for assets disposed of since the date of such
financial statements in the ordinary course of business or as otherwise permitted under subsection 7.7. Except as permitted by this Agreement, all such properties and assets are free and clear of Liens. 
  
 B. Real Property. As of the Closing Date,
Schedule 5.5 annexed hereto contains a true, accurate and complete list of (i) all fee interests in any Real Property Assets and (ii) all leases, subleases or assignments of leases (together with all amendments, modifications, supplements,
renewals or extensions of any thereof) affecting each Real Property Asset, regardless of whether a Loan Party is the landlord or tenant (whether directly or as an assignee or successor in interest) under such lease, sublease or assignment. Except as
specified in Schedule 5.5 annexed hereto, as of the Closing Date, each agreement listed in clause (ii) of the immediately preceding sentence is in full force and effect and Company does not have knowledge of any default that has occurred and
is continuing thereunder, and each such agreement constitutes the legally valid and binding obligation of each applicable Loan Party, enforceable against such Loan Party in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles. 
  
 C. Intellectual Property. As of the Closing Date, Company and its Subsidiaries own or have the right to use, all
Intellectual Property used in the conduct of their business, except where the failure to own or have such right to use in the aggregate could not reasonably be expected to result in a Material Adverse Effect. No claim has been asserted and is
pending by any Person challenging or questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does Company know of any valid basis for any such claim, except for such claims that
in the aggregate could not reasonably be expected to result in a Material Adverse Effect. The use of such Intellectual Property by Company and its Subsidiaries does not infringe on the rights of any Person, except for such claims and infringements
that, in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. All federal, state and foreign registrations of and applications for Intellectual Property, and all unregistered Intellectual Property, that are owned
or licensed by Company or any of its Subsidiaries on the Closing Date are described on Schedule 5.5 annexed hereto. 
  

	 	5.6	Litigation; Adverse Facts 

  
 Except as set forth in Schedule 5.6 annexed hereto, there are no Proceedings (whether or not purportedly on behalf of Company or
any of its Subsidiaries) at law or in equity, or before or by any court or other Government Authority (including any Environmental Claims) 

  

 72 

 
that are pending or, to the knowledge of Company, threatened against or affecting Company or any of its Subsidiaries or any property of Company or any of its
Subsidiaries that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. Neither Company nor any of its Subsidiaries (i) is in violation of any applicable laws (including Environmental Laws) that,
individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, or (ii) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or other
Government Authority that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 
  

	 	5.7	Payment of Taxes 

  
 Except to the extent permitted by subsection 6.3, all tax returns and reports of Company and its Subsidiaries required to be filed by any
of them have been timely filed, and all taxes shown on such tax returns to be due and payable and all assessments, fees and other governmental charges upon Company and its Subsidiaries and upon their respective properties, assets, income, businesses
and franchises that are due and payable have been paid when due and payable, except where the failure to pay could not reasonably be expected to result in a Material Adverse Effect. Company knows of no proposed tax assessment against Company or any
of its Subsidiaries that is not being actively contested by Company or such Subsidiary in good faith and by appropriate proceedings; provided that such reserves or other appropriate provisions, if any, as shall be required in conformity with
GAAP shall have been made or provided therefor. 
  

	 	5.8	Governmental Regulation 

  
 Neither Company nor any of its Subsidiaries is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, the Interstate Commerce Act or the Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the
Obligations unenforceable. 
  

	 	5.9	Securities Activities 

  
 A. Neither Company nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying any Margin Stock. 
  
 B. Following application of the proceeds of each Loan, not more than 25% of the value of the assets (either of Company only or of Company and its Subsidiaries on a consolidated basis) subject to the provisions
of subsection 7.2 or 7.7 or subject to any restriction contained in any agreement or instrument, between Company and any Lender or any Affiliate of any Lender, relating to Indebtedness and within the scope of subsection 8.2, will be Margin Stock.

  

 73 

	 	5.10	Employee Benefit Plans 

  
 A. Company, each of its Subsidiaries and each of their respective ERISA Affiliates are in material compliance with all applicable
provisions and requirements of ERISA and the regulations and published interpretations thereunder with respect to each Employee Benefit Plan, and have performed all their obligations under each Employee Benefit Plan. To the knowledge of Company and
each of its Subsidiaries, each Employee Benefit Plan that is intended to qualify under Section 401(a) of the Internal Revenue Code is so qualified. 
  
 B. No ERISA Event has occurred or is reasonably expected to occur. 
  
 C. Except to the extent required under Section 4980B of the Internal Revenue Code, no Employee
Benefit Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of Company, any of its Subsidiaries or any of their respective ERISA Affiliates. 
  
 D. Neither Company, any of its Subsidiaries nor any
of their respective ERISA Affiliates sponsor or contribute to, nor have ever sponsored or contributed to, any Pension Plan or Multiemployer Plan. 
  

	 	5.11	Certain Fees 

  
 No broker’s or finder’s fee or commission will be payable with respect to this Agreement or any of the transactions contemplated
hereby, and Company hereby indemnifies Lenders against, and agrees that it will hold Lenders harmless from, any claim, demand or liability for any such broker’s or finder’s fees alleged to have been incurred in connection herewith or
therewith and any expenses (including reasonable fees, expenses and disbursements of counsel) arising in connection with any such claim, demand or liability. 
  

	 	5.12	Environmental Protection 

  
 Except as set forth in Schedule 5.12 annexed hereto: 
  
 (i) neither Company nor any of its Subsidiaries nor any of their respective Facilities or operations are
subject to any outstanding written order, consent decree or settlement agreement with any Person relating to (a) any Environmental Law, (b) any Environmental Claim, or (c) any Hazardous Materials Activity that, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect; 
  
 (ii) neither Company nor any of its Subsidiaries has received any letter or request for information under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. §
9604) or any comparable state law; 
  
 (iii)
there are and, to Company’s knowledge, have been no conditions, occurrences, or Hazardous Materials Activities that could reasonably be expected to form the basis of an Environmental Claim against Company or any of its Subsidiaries that,

  

 74 

 
individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect; 
  
 (iv) neither Company nor any of its Subsidiaries nor, to
Company’s knowledge, any predecessor of Company or any of its Subsidiaries has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Facility, and none of Company’s or any of its
Subsidiaries’ operations involves the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts 260-270 or any state equivalent; and 
  
 (v) compliance with all current Environmental Laws would
not, individually or in the aggregate, be reasonably expected to result in a Material Adverse Effect. 
  

	 	5.13	Employee Matters 

  
 There is no strike or work stoppage in existence or threatened involving Company or any of its Subsidiaries that could reasonably be
expected to result in a Material Adverse Effect. 
  

	 	5.14	Solvency 

  
 Each Loan Party is and, upon the incurrence of any Obligations by such Loan Party on any date on which this representation is made, will
be, Solvent. 
  

	 	5.15	Matters Relating to Collateral 

  
 A. Governmental Authorizations. No authorization, approval or other action by, and no notice to or filing with, any
Government Authority is required for either (i) the pledge or grant by any Loan Party of the Liens purported to be created in favor of Administrative Agent pursuant to any of the Collateral Documents or (ii) the exercise by Administrative Agent of
any rights or remedies in respect of any Collateral (whether specifically granted or created pursuant to any of the Collateral Documents or created or provided for by applicable law), except for filings or recordings contemplated by the Collateral
Documents and except as may be required, in connection with the disposition of any Pledged Collateral, by laws generally affecting the offering and sale of securities. 
  
 B. Absence of Third-Party Filings. Except such as may have been filed in favor of
Administrative Agent as contemplated by the Collateral Documents and to evidence permitted lease obligations and other Liens permitted pursuant to subsection 7.2, (i) no effective UCC financing statement, fixture filing or other instrument similar
in effect covering all or any part of the Collateral is on file in any filing or recording office and (ii) no effective filing covering all or any part of the IP Collateral is on file in any IP Filing Office. 
  
 C. Margin Regulations. The pledge of the
Pledged Collateral pursuant to the Collateral Documents does not violate Regulation T, U or X of the Board of Governors of the Federal Reserve System. 
  

 75 

 D. Information Regarding Collateral. All information supplied to
Administrative Agent by or on behalf of any Loan Party with respect to any of the Collateral (in each case taken as a whole with respect to any particular Collateral) is accurate and complete in all material respects. 
  

	 	5.16	Disclosure 

  
 No representation or warranty of Company or any of its Subsidiaries contained in the Confidential Information Memorandum or in any Loan
Document or in any other document, certificate or written statement furnished to Lenders by or on behalf of Company or any of its Subsidiaries for use in connection with the transactions contemplated by this Agreement contains any untrue statement
of a material fact or omits to state a material fact (known to Company, in the case of any document not furnished by it) necessary in order to make the statements contained herein or therein not misleading in light of the circumstances in which the
same were made. Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by Company to be reasonable at the time made, it being recognized by Lenders that such
projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results. There are no facts known (or which should upon the reasonable
exercise of diligence be known) to Company that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have not been disclosed herein or in such other documents, certificates and statements
furnished to Lenders for use in connection with the transactions contemplated hereby. 
  

	 	5.17	Foreign Assets Control Regulations, etc. 

  
 Neither the making of the Loans to, or issuance of Letters of Credit on behalf of, Company nor its use of the proceeds thereof will
violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating
thereto. Without limiting the foregoing, neither Company nor any of its Subsidiaries or Affiliates (a) is or will become a Person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23,
2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) or (b) engages or will engage in any dealings or transactions, or be otherwise associated, with any
such Person. Company and its Subsidiaries and Affiliates are in compliance, in all material respects, with the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001).

  

	 	5.18	UFOC 

  
 (i) Company and each of its Subsidiaries have delivered to Administrative Agent true and correct copies of the UFOC, which is currently
being used in connection with the offers to sell and the sale of its and their franchises; and 
  

 76 

 (ii) the UFOC (a) complies in all material respects with all applicable laws, rules,
regulations and orders of any Government Authority pertaining to offers to sell and the sale of franchises in jurisdictions in which they are being used, including in the United States, the Uniform Franchise Offering Circular Guidelines adopted by
the North American Securities Administrators Association in April 25, 1993 and approved by the Federal Trade Commission on December 30, 1993 as an alternative to the Federal Trade Commission disclosure statement, and (b) does not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; in all cases, except where
any failure to comply or an untrue statement or omission could not reasonably be expected to result in a Material Adverse Effect. 
  

	Section	6. COMPANY’S AFFIRMATIVE COVENANTS 

  
 Company covenants and agrees that, so long as any of the Commitments hereunder shall remain in effect and until payment in full of all of
the Loans and other Obligations (other than Unasserted Obligations) and the cancellation or expiration of all Letters of Credit, unless Requisite Lenders shall otherwise give prior written consent, Company shall perform, and shall cause each of its
Subsidiaries to perform, all covenants in this Section 6. 
  

	 	6.1	Financial Statements and Other Reports 

  
 Company will maintain, and cause each of its Subsidiaries to maintain, a system of accounting established and administered in accordance
with sound business practices to permit preparation of financial statements in conformity with GAAP. Company will deliver to Administrative Agent and Lenders: 
  

(i) Events of Default, etc.: promptly upon any officer of Company obtaining knowledge (a) of any condition or event that
constitutes an Event of Default or Potential Event of Default, or becoming aware that any Lender has given any notice (other than to Administrative Agent) or taken any other action with respect to a claimed Event of Default or Potential Event of
Default, (b) that any Person has given any notice to Company or any of its Subsidiaries or taken any other action with respect to a claimed default or event or condition of the type referred to in subsection 8.2, (c) of any condition or event that
would be required to be disclosed in a current report filed by Company with the Securities and Exchange Commission on Form 8-K if Company were required to file such reports under the Exchange Act, or (d) of the occurrence of any event or change that
has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect, an Officer’s Certificate specifying the nature and period of existence of such condition, event or change, or specifying the notice given or action
taken by any such Person and the nature of such claimed Event of Default, Potential Event of Default, default, event or condition, and what action Company has taken, is taking and proposes to take with respect thereto; 
  

 77 

 (ii) Monthly and Quarterly Financials: as soon as available and in any event
within 30 days after the end of each Fiscal Month and within 45 days after the end of each Fiscal Quarter of each Fiscal Year, (a) the consolidated balance sheet of Company and its Subsidiaries as at the end of such fiscal period and the related
consolidated statements of income, stockholders’ equity and cash flows of Company and its Subsidiaries for such fiscal period and for the period from the beginning of the then current Fiscal Year to the end of such fiscal period, setting forth
in each case in comparative form the corresponding figures for the corresponding periods of the previous Fiscal Year and, for each Fiscal Quarter, the corresponding figures from the Financial Plan for the current Fiscal Year, all in reasonable
detail and certified by the chief financial officer of Company that they fairly present, in all material respects, the financial condition of Company and its Subsidiaries as at the dates indicated and the results of their operations and their cash
flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments, and (b) for each Fiscal Quarter, a narrative report describing the operations of Company and its Subsidiaries in the form prepared for
presentation to senior management for such fiscal period and for the period from the beginning of the then current Fiscal Year to the end of such fiscal period; 
  
 (iii) Year-End Financials: as soon as available and in any event within 120 days after the end of
each Fiscal Year, (a) the consolidated balance sheet of Company and its Subsidiaries as at the end of such Fiscal Year and the related consolidated statements of income, stockholders’ equity and cash flows of Company and its Subsidiaries for
such Fiscal Year, setting forth in each case in comparative form the corresponding figures for the previous Fiscal Year and the corresponding figures from the Financial Plan for the Fiscal Year covered by such financial statements, all in reasonable
detail and certified by the chief financial officer of Company that they fairly present, in all material respects, the financial condition of Company and its Subsidiaries as at the dates indicated and the results of their operations and their cash
flows for the periods indicated, (b) a narrative report describing the operations of Company and its Subsidiaries in the form prepared for presentation to senior management for such Fiscal Year, and (c) in the case of such consolidated financial
statements, a report thereon of KPMG, LLP or other independent certified public accountants of recognized national standing selected by Company and satisfactory to Administrative Agent, which report shall be unqualified, shall express no doubts,
assumptions or qualifications concerning the ability of Company and its Subsidiaries to continue as a going concern, and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial
position of Company and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as otherwise
disclosed in such financial statements) and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards; 
  
 (iv) Pricing and Compliance Certificates: together
with each delivery of financial statements pursuant to subdivisions (ii) and (iii) above, (a) an Officer’s 

  

 78 

 
Certificate of Company stating that the signers have reviewed the terms of this Agreement and have made, or caused to be made under their supervision, a
review in reasonable detail of the transactions and condition of Company and its Subsidiaries during the accounting period covered by such financial statements and that such review has not disclosed the existence during or at the end of such
accounting period, and that the signers do not have knowledge of the existence as at the date of such Officer’s Certificate, of any condition or event that constitutes an Event of Default or Potential Event of Default, or, if any such condition
or event existed or exists, specifying the nature and period of existence thereof and what action Company has taken, is taking and proposes to take with respect thereto; and (b) in the case of financial statements delivered for a Fiscal Quarter or a
Fiscal Year, a Compliance Certificate demonstrating in reasonable detail compliance during and at the end of the applicable accounting periods with the restrictions contained in subsection 7.6, in each case to the extent compliance with such
restrictions is required to be tested at the end of the applicable accounting period; in addition, on or before the 45th day following the end of each Fiscal Quarter, a Pricing Certificate demonstrating in reasonable detail the calculation of the
Consolidated Pricing Leverage Ratio as of the end of the four-Fiscal Quarter period then ended; 
  
 (v) Reconciliation Statements: if, as a result of any change in accounting principles and policies from those used in the
preparation of the audited financial statements referred to in subsection 5.3, the consolidated financial statements of Company and its Subsidiaries delivered pursuant to subdivisions (ii), (iii) or (xii) of this subsection 6.1 will differ in any
material respect from the consolidated financial statements that would have been delivered pursuant to such subdivisions had no such change in accounting principles and policies been made, then (a) together with the first delivery of financial
statements pursuant to subdivision (ii), (iii) or (xii) of this subsection 6.1 following such change, consolidated financial statements of Company and its Subsidiaries for (y) the current Fiscal Year to the effective date of such change and (z) the
two full Fiscal Years immediately preceding the Fiscal Year in which such change is made, in each case prepared on a pro forma basis as if such change had been in effect during such periods, and (b) together with each delivery of financial
statements pursuant to subdivision (ii), (iii) or (xii) of this subsection 6.1 following such change, if required pursuant to subsection 1.2, a written statement of the chief accounting officer or chief financial officer of Company setting forth the
differences (including any differences that would affect any calculations relating to the financial covenants set forth in subsection 7.6) which would have resulted if such financial statements had been prepared without giving effect to such change;

  
 (vi) Accountants’ Certification:
together with each delivery of consolidated financial statements pursuant to subdivision (iii) above, a written statement by the independent certified public accountants giving the report thereon (a) stating that their audit examination has included
a review of the terms of this Agreement and the other Loan Documents as they relate to accounting matters, (b) stating whether, in connection with their audit examination, any condition or event that constitutes an Event of Default or Potential
Event of Default has come to their attention and, if such a condition or event 

  

 79 

 
has come to their attention, specifying the nature and period of existence thereof; provided that such accountants shall not be liable by reason of
any failure to obtain knowledge of any such Event of Default or Potential Event of Default that would not be disclosed in the course of their audit examination, and (c) stating that based on their audit examination nothing has come to their
attention that causes them to believe either or both that the information contained in the certificates delivered therewith pursuant to subdivision (iv) above is not correct or that the matters set forth in the Compliance Certificates delivered
therewith pursuant to clause (b) of subdivision (iv) above for the applicable Fiscal Year are not stated in accordance with the terms of this Agreement; 
  
 (vii) Accountants’ Reports: promptly upon receipt thereof (unless restricted by applicable professional standards), copies of
all reports submitted to Company by independent certified public accountants in connection with each annual, interim or special audit of the financial statements of Company and its Subsidiaries made by such accountants, including any comment letter
submitted by such accountants to management in connection with their annual audit; 
  
 (viii) SEC Filings and Press Releases: promptly upon their becoming available, copies of (a) all financial statements, reports,
notices and proxy statements sent or made available generally by Company to its security holders or by any Subsidiary of Company to its security holders other than Company or another Subsidiary of Company, (b) all regular and periodic reports and
all registration statements (other than on Form S-8 or a similar form) and prospectuses, if any, filed by Company or any of its Subsidiaries with any securities exchange or with the Securities and Exchange Commission or any governmental or private
regulatory authority, and (c) all press releases and other statements made available generally by Company or any of its Subsidiaries to the public concerning material developments in the business of Company or any of its Subsidiaries; 
  
 (ix) Litigation or Other Proceedings: (a) promptly
upon, and in any event no later than five days after, any Officer of Company obtaining knowledge of (1) the institution of, or non-frivolous threat of, any Proceeding against or affecting Company or any of its Subsidiaries or any property of Company
or any of its Subsidiaries not previously disclosed in writing by Company to Lenders or (2) any material development in any Proceeding that, in any case: 
  
 (x) if adversely determined, has a reasonable possibility of giving rise to a Material Adverse Effect; or 
  
 (y) seeks to enjoin or otherwise prevent the consummation
of, or to recover any damages or obtain relief as a result of, the transactions contemplated hereby; 
  
 written notice thereof together with such other information as may be reasonably available to Company to enable Lenders and their counsel to evaluate such
matters; and (b) within twenty days after the end of each Fiscal Year, a schedule of all Proceedings involving an alleged liability of, or claims against or affecting, Company or any of its 

  

 80 

 
Subsidiaries equal to or greater than $500,000, and promptly after request by Administrative Agent such other information as may be reasonably requested by
Administrative Agent to enable Administrative Agent and its counsel to evaluate any of such Proceedings; 
  
 (x) ERISA Events: promptly upon becoming aware of the occurrence of or forthcoming occurrence of any ERISA Event, a written notice
specifying the nature thereof, what action Company, any of its Subsidiaries or any of their respective ERISA Affiliates has taken, is taking or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal
Revenue Service, the Department of Labor or the PBGC with respect thereto; 
  
 (xi) ERISA Notices: with reasonable promptness, copies of (a) all notices received by Company, any of its Subsidiaries or any of their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an
ERISA Event; and (b) copies of such other documents or governmental reports or filings relating to any Employee Benefit Plan as Administrative Agent shall reasonably request; 
  
 (xii) Financial Plans: as soon as practicable and in any event no later than 30 days after the
beginning of each Fiscal Year, a consolidated plan and financial forecast for such Fiscal Year (the “Financial Plan” for such Fiscal Year), including (a) a forecasted consolidated balance sheet and forecasted consolidated statements
of income and cash flows of Company and its Subsidiaries for such Fiscal Year, together with a proforma Compliance Certificate for such Fiscal Year and an explanation of the assumptions on which such forecasts are based, (b) forecasted
consolidated statements of income and cash flows of Company and its Subsidiaries for each Fiscal Quarter of such Fiscal Year, together with an explanation of the assumptions on which such forecasts are based, and (c) such other financial information
as Administrative Agent may reasonably request; 
  
 (xiii) Insurance: as soon as practicable after any material change in insurance coverage maintained by Company and its Subsidiaries notice thereof to Administrative Agent specifying the changes and reasons therefor; 
  
 (xiv) Governing Body: with reasonable promptness,
written notice of any change in the Governing Body of Company; 
  
 (xv) New Subsidiaries: promptly, and in any event within 30 days after any Person becoming a Subsidiary of Company, a written notice setting forth with respect to such Person (a) the date on which such Person
became a Subsidiary of Company and (b) all of the data required to be set forth in Schedule 5.1 annexed hereto with respect to all Subsidiaries of Company; 
  
 (xvi) New Real Property Assets: promptly, and in any event within 30 days after acquiring any Real
Property Asset, a written notice setting forth with respect to such Real Property Asset (a) the date on which such Real Property Asset was acquired by Company or a Subsidiary of Company, as the case may be, and (b) all of the data 

  

 81 

 
required to be set forth in Schedule 5.5 annexed hereto with respect to such Real Property Asset; and 
  
 (xvii) Other Information: with reasonable promptness,
such other information and data with respect to Company or any of its Subsidiaries as from time to time may be reasonably requested by any Lender. 
  

	 	6.2	Existence, etc. 

  
 Except as permitted under subsection 7.7, Company will, and will cause each of its Subsidiaries to, at all times preserve and keep in full
force and effect its existence in the jurisdiction of organization specified on Schedule 5.1 and all rights and franchises material to its business; provided, however that neither Company nor any of its Subsidiaries shall be
required to preserve any such right or franchise if the Governing Body of Company or such Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of the business of Company or such Subsidiary, as the case may
be, and that the loss thereof is not disadvantageous in any material respect to Company, such Subsidiary or Lenders. 
  

	 	6.3	Payment of Taxes and Claims; Tax 

  
 A. Company will, and will cause each of its Subsidiaries to, pay all taxes, assessments and other governmental charges imposed upon
it or any of its properties or assets or in respect of any of its income, businesses or franchises before any penalty accrues thereon, and all claims (including claims for labor, services, materials and supplies) for sums that have become due and
payable and that by law have or may become a Lien upon any of its properties or assets, prior to the time when any penalty or fine shall be incurred with respect thereto; provided that no such tax, assessment, charge or claim need be paid if
it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as (i) such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made
therefor and (ii) in the case of a tax, assessment, charge or claim which has or may become a Lien against any of the Collateral, such proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such charge or
claim. 
  
 B. Company will not, nor will
it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income tax return with any Person (other than Company or any of its Subsidiaries). 
  

	 	6.4	Maintenance of Properties; Insurance; Application of Net Insurance/ Condemnation Proceeds 

  
 A. Maintenance of Properties. Company will,
and will cause each of its Subsidiaries to, maintain or cause to be maintained in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the business of Company and its Subsidiaries
(including all Intellectual Property) and from time to time will make or cause to be made all appropriate repairs, renewals and replacements thereof. 
  

 82 

 B. Insurance. Company will maintain or cause to be maintained, with
financially sound and reputable insurers, such public liability insurance, third party property damage insurance, business interruption insurance and casualty insurance with respect to liabilities, losses or damage in respect of the assets,
properties and businesses of Company and its Subsidiaries as may customarily be carried or maintained under similar circumstances by corporations of established reputation engaged in similar businesses, in each case in such amounts (giving effect to
self-insurance), with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for corporations similarly situated in the industry. Without limiting the generality of the foregoing, Company will maintain
or cause to be maintained (i) flood insurance with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program, in each case in compliance with any applicable regulations of the
Board of Governors of the Federal Reserve System, and (ii) replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are
at all times satisfactory to Administrative Agent in its commercially reasonable judgment. Each such policy of insurance shall (a) name Administrative Agent for the benefit of Lenders as an additional insured thereunder as its interests may appear
and (b) in the case of each business interruption and casualty insurance policy, contain a loss payable clause or endorsement, satisfactory in form and substance to Administrative Agent, that names Administrative Agent for the benefit of Lenders as
the loss payee thereunder as its interests may appear for any covered loss and provides for at least 30 days prior written notice to Administrative Agent of any modification or cancellation of such policy. 
  
 C. Application of Net Insurance/Condemnation
Proceeds. 
  
 (i) Business
Interruption Insurance. Upon receipt by Company or any of its Subsidiaries of any business interruption insurance proceeds constituting Net Insurance/Condemnation Proceeds, (a) so long as no Event of Default or Potential Event of Default shall
have occurred and be continuing, Company or such Subsidiary may retain and apply such Net Insurance/Condemnation Proceeds for working capital purposes, and (b) if an Event of Default or Potential Event of Default shall have occurred and be
continuing, Company shall apply an amount equal to such Net Insurance/Condemnation Proceeds to prepay the Loans (and/or the Revolving Loan Commitment Amount shall be reduced) as provided in subsections 2.4B. 
  
 (ii) Net Insurance/Condemnation Proceeds Received by
Company. Upon receipt by Company or any of its Subsidiaries of any Net Insurance/Condemnation Proceeds other than from business interruption insurance, if the amount of such Net Insurance/Condemnation Proceeds received (and reasonably expected
to be received) exceeds $500,000 for any single event or $1,000,000 in the aggregate, Company shall apply an amount equal to such Net Insurance/Condemnation Proceeds to prepay the Loans (and/or the Revolving Loan Commitment Amount shall be reduced)
as provided in subsections 2.4B; provided that so long as no Event of Default or Potential Event of Default shall have occurred and be continuing, Company may, or may cause one or more of its Subsidiaries to, promptly and diligently apply
such Net Insurance/Condemnation Proceeds to pay or reimburse or establish reserves for the costs of repairing, restoring or 

  

 83 

 
replacing the assets in respect of which such Net Insurance/Condemnation Proceeds were received or acquiring or repairing other fixed or capital assets
useful and necessary in its business, to the extent not so applied, to prepay the Loans (and/or the Revolving Loan Commitments shall be reduced) as provided in subsection 2.4B; provided, however, if (a) Company, within 180 days of
receipt of such Net Insurance/Condemnation Proceeds, has not used all or any portion of such Net Insurance/Condemnation Proceeds as provided above and has not delivered to Administrative Agent evidence reasonably satisfactory to Administrative Agent
that Company has entered into one or more binding contractual commitments to so use such Net Insurance/Condemnation Proceeds, (b) Company, within 360 days after the date of receipt of such Net Insurance/Condemnation Proceeds, has not used all or any
portion of such Net Insurance/Condemnation Proceeds or (c) an Event of Default or Potential Event of Default shall have occurred and be continuing, Company shall apply an amount equal to such Net Insurance/Condemnation Proceeds to prepay the Loans
(and/or the Revolving Loan Commitments shall be reduced) as provided in subsection 2.4B. 
  
 (iii) Net Insurance/Condemnation Proceeds Received by Administrative Agent. Upon receipt by Administrative Agent of any Net
Insurance/Condemnation Proceeds as loss payee (a) if and to the extent Company would have been required to apply such Net Insurance/Condemnation Proceeds (if it had received them directly) to prepay the Loans and/or reduce the Revolving Loan
Commitments, Administrative Agent shall, and Company hereby authorizes Administrative Agent to, apply such Net Insurance/Condemnation Proceeds to prepay the Loans (and/or the Revolving Loan Commitments shall be reduced) as provided in subsection
2.4B, and (b) to the extent the foregoing clause (a) does not apply, Administrative Agent shall deliver such Net Insurance/Condemnation Proceeds to Company, and Company shall, or shall cause one or more of its Subsidiaries to, promptly apply such
Net Insurance/Condemnation Proceeds to pay or reimburse or establish reserves for the costs of repairing, restoring, or replacing the assets in respect of which such Net Insurance/Condemnation Proceeds were received or acquiring or repairing other
fixed or capital assets useful and necessary in its business. 
  

	 	6.5	Inspection Rights; Lender Meeting 

  
 A. Inspection Rights. Company shall, and shall cause each of its Subsidiaries to, permit any authorized representatives
designated by Administrative Agent (which representative may be accompanied by any authorized representative designated by any Lender) to visit and inspect any of the properties of Company or of any of its Subsidiaries, to inspect, copy and take
extracts from its and their financial and accounting records, and to discuss its and their affairs, finances and accounts with its and their officers and independent public accountants (provided that Company may, if it so chooses, be present at or
participate in any such discussion), all upon reasonable notice and at such reasonable times during normal business hours and as often as may reasonably be requested or at any time or from time to time following the occurrence and during the
continuation of an Event of Default. 
  

 84 

 B. Lender Meeting. Company will, upon the request of Administrative Agent
or Requisite Lenders, participate in a meeting of Administrative Agent and Lenders once during each Fiscal Year to be held at Company’s principal offices (or at such other location as may be agreed to by Company and Administrative Agent) at
such time as may be agreed to by Company and Administrative Agent. 
  

	 	6.6	Compliance with Laws, etc. 

  
 Company shall comply, and shall cause each of its Subsidiaries and all other Persons on or occupying any Facilities to comply, with the
requirements of all applicable laws, rules, regulations and orders of any Government Authority (including all Environmental Laws), noncompliance with which could reasonably be expected to result in, individually or in the aggregate, a Material
Adverse Effect. 
  

	 	6.7	Environmental Matters 

  
 A. Environmental Disclosure. Company will deliver to Administrative Agent and Lenders: 
  
 (i) Environmental Audits and Reports. As soon as
practicable following receipt thereof, copies of all environmental audits, investigations, analyses and reports of any kind or character, whether prepared by personnel of Company or any of its Subsidiaries or by independent consultants, Government
Authorities or any other Persons, with respect to significant environmental matters at any Facility or with respect to any Environmental Claims; 
  
 (ii) Notice of Certain Releases, Remedial Actions, Etc. Promptly upon, and in any event no later than five Business Days after, the
occurrence thereof, written notice describing in reasonable detail (a) any Release required to be reported to any Government Authority under any applicable Environmental Laws, (b) any remedial action taken by Company or any other Person in response
to (1) any Hazardous Materials Activities the existence of which could reasonably be expected to result in one or more Environmental Claims or (2) any Environmental Claims, and (c) Company’s discovery of any occurrence or condition on any real
property adjoining or in the vicinity of any Facility that could reasonably be expected to cause such Facility or any part thereof to be subject to any restrictions on the ownership, occupancy, transferability or use thereof under any Environmental
Laws. 
  
 (iii) Written Communications
Regarding Environmental Claims, Releases, Etc. As soon as practicable following the sending or receipt thereof by Company or any of its Subsidiaries, a copy of any and all written communications with respect to (a) any Environmental Claims, (b)
any Release required to be reported to any Government Authority, and (c) any request for information from any Government Authority that suggests such Government Authority is investigating whether Company or any of its Subsidiaries may be potentially
responsible for any Hazardous Materials Activity. 
  

 85 

 (iv) Notice of Certain Proposed Actions Having Environmental Impact. Prompt
written notice describing in reasonable detail any proposed acquisition of stock, assets, or property by Company or any of its Subsidiaries that could reasonably be expected to (1) expose Company or any of its Subsidiaries to, or result in,
Environmental Claims or (2) affect the ability of Company or any of its Subsidiaries to maintain in full force and effect all Governmental Authorizations required under any Environmental Laws for their respective operations. 
  
 B. Company’s Actions Regarding Hazardous
Materials Activities, Environmental Claims and Violations of Environmental Laws. 
  
 (i) Remedial Actions Relating to Hazardous Materials Activities. Company shall, in compliance with all applicable Environmental
Laws, promptly undertake, and shall cause each of its Subsidiaries promptly to undertake, any and all investigations, studies, sampling, testing, abatement, cleanup, removal, remediation or other response actions necessary to remove, remediate,
clean up or abate any Hazardous Materials Activity on, under or about any Facility that is in violation of any Environmental Laws or that presents a risk of giving rise to an Environmental Claim. 
  
 (ii) Actions with Respect to Environmental Claims and
Violations of Environmental Laws. Company shall promptly take, and shall cause each of its Subsidiaries promptly to take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by Company or its Subsidiaries and
(ii) make an appropriate response to any Environmental Claim against Company or any of its Subsidiaries and discharge any obligations it may have to any Person thereunder. 
  

	 	6.8	Execution of Subsidiary Guaranty and Personal Property Collateral Documents After the Closing Date 

  
 A. Execution of Subsidiary Guaranty and Personal
Property Collateral Documents. In the event that any Person becomes a Subsidiary of Company after the date hereof, Company will promptly notify Administrative Agent of that fact and cause such Subsidiary to execute and deliver to
Administrative Agent a counterpart of the Subsidiary Guaranty and Security Agreement and to take all such further actions and execute all such further documents and instruments (including actions, documents and instruments comparable to those
described in subsection 4.1I) as may be necessary or, in the opinion of Administrative Agent, reasonably desirable to create in favor of Administrative Agent, for the benefit of Lenders, a valid and perfected First Priority Lien on all of the
personal and mixed property assets of such Subsidiary described in the applicable forms of Collateral Documents. In addition, as provided in the Security Agreement, Company shall, or shall cause the Subsidiary that owns the Capital Stock of such
Person to, execute and deliver to Administrative Agent a supplement to the Security Agreement and to deliver to Administrative Agent all certificates representing such Capital Stock of such Person (accompanied by irrevocable undated stock powers,
duly endorsed in blank). 
  

 86 

 B. Subsidiary Organizational Documents, Legal Opinions, Etc. Company
shall deliver to Administrative Agent, together with such Loan Documents, (i) certified copies of such Subsidiary’s Organizational Documents, together with, if such Subsidiary is a Domestic Subsidiary, a good standing certificate from the
Secretary of State of the jurisdiction of its organization and, to the extent generally available, a certificate or other evidence of good standing as to payment of any applicable franchise or similar taxes from the appropriate taxing authority of
such jurisdiction, each to be dated a recent date prior to their delivery to Administrative Agent, (ii) a certificate executed by the secretary or similar officer of such Subsidiary as to (a) the fact that the attached resolutions of the Governing
Body of such Subsidiary approving and authorizing the execution, delivery and performance of such Loan Documents are in full force and effect and have not been modified or amended and (b) the incumbency and signatures of the officers of such
Subsidiary executing such Loan Documents, and (iii) a favorable opinion of counsel to such Subsidiary, in form and substance satisfactory to Administrative Agent and its counsel, as to (a) the due organization and good standing of such Subsidiary,
(b) the due authorization, execution and delivery by such Subsidiary of such Loan Documents, (c) the enforceability of such Loan Documents against such Subsidiary and (d) such other matters (including matters relating to the creation and perfection
of Liens in any Collateral pursuant to such Loan Documents) as Administrative Agent may reasonably request, all of the foregoing to be satisfactory in form and substance to Administrative Agent and its counsel. 
  

	 	6.9	Matters Relating to Additional Real Property Collateral 

  

From and after the Closing Date, in the event that (i) Company or any Subsidiary Guarantor acquires any fee interest in real property
or any Leasehold Property or (ii) at the time any Person becomes a Subsidiary Guarantor, such Person owns or holds any fee interest in real property or any Leasehold Property, in the case of clause (ii) above excluding any such Real Property Asset
the encumbrancing of which requires the consent of any applicable lessor or then-existing senior lienholder, where Company and its Subsidiaries have attempted in good faith, but are unable, to obtain such lessor’s or senior lienholder’s
consent (any such non-excluded Real Property Asset described in the foregoing clause (i) or (ii) being an “Additional Mortgaged Property”), Company or such Subsidiary Guarantor shall deliver to Administrative Agent, as soon as
practicable after such Person acquires such Additional Mortgaged Property or becomes a Subsidiary Guarantor, as the case may be, a fully executed and notarized Mortgage (an “Additional Mortgage”), in proper form for recording in all
appropriate places in all applicable jurisdictions, encumbering the interest of such Loan Party in such Additional Mortgaged Property; and such opinions, appraisal, documents, title insurance, environmental reports, including Phase I environmental
assessments, that would have been delivered on the Closing Date if such Additional Mortgaged Property were a Closing Date Mortgaged Property or that may be reasonably required by Administrative Agent. 
  

	 	6.10	Post Closing 

  
 A. Amendment to Company Articles of Incorporation. Within 15 days of the Closing Date, or such later date agreed by
Administrative Agent in its sole discretion, Company shall (i) amend its Articles of Incorporation to extend the Scheduled Redemption Date (as defined therein) of the Senior Preferred Stock to September 17, 2011 and (ii) provide to 

  

 87 

 
Administrative Agent evidence satisfactory to it that all necessary consents for such amendment have been obtained by Company. 
  
 B. RCSH Operations, Inc. Within 15 days
of the Closing Date, or such later date agreed by Administrative Agent in its sole discretion, Company shall cause RCSH Operations, Inc. to deliver to Administrative Agent copies of its Organizational Documents, certified by the Secretary of State
of its jurisdiction of organization dated a recent date prior to the date of delivery. 
  
 C. Subordination, Non-Disturbance and Attornment Agreement and Estoppel Certificate. Within 15 days of the Closing
Date, or such later date agreed by Administrative Agent in its sole discretion, Company shall deliver to Administrative Agent an executed copy of the Subordination, Non-Disturbance and Attornment Agreement and Estoppel Certificate by and among
Company, Administrative Agent and Health Care Education Corporation. 
  
 D. Insurance. Within five days of the Closing Date, or such later date agreed by Administrative Agent in its sole discretion, Company shall deliver to Administrative Agent evidence that the flood
insurance with respect to the facility located at 711 North Broad Street, New Orleans, Louisiana names Administrative Agent for the benefit of Lenders as an additional insured thereunder. 
  

	Section	7. COMPANY’S NEGATIVE COVENANTS 

  
 Company covenants and agrees that, so long as any of the Commitments hereunder shall remain in effect and until payment in full of all of
the Loans and other Obligations (other than Unasserted Obligations) and the cancellation or expiration of all Letters of Credit, unless Requisite Lenders shall otherwise give prior written consent, Company shall perform, and shall cause each of its
Subsidiaries to perform, all covenants in this Section 7. 
  

	 	7.1	Indebtedness 

  
 Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or guaranty, or
otherwise become or remain directly or indirectly liable with respect to, any Indebtedness, except: 
  
 (i) Company may become and remain liable with respect to the Obligations; 
  
 (ii) Company and its Subsidiaries may become and remain liable with respect to Contingent Obligations
permitted by subsection 7.4 and, upon any matured obligations actually arising pursuant thereto, the Indebtedness corresponding to the Contingent Obligations so extinguished; 
  
 (iii) Company and its Subsidiaries may become and remain liable with respect to Indebtedness in respect of
Capital Leases aggregating not in excess of $2,000,000 at any one time; 
  

 88 

 (iv) Company may become and remain liable with respect to Indebtedness to any
wholly-owned Domestic Subsidiary, and any wholly-owned Domestic Subsidiary may become and remain liable with respect to Indebtedness to Company or any Domestic Subsidiary; provided that (a) a security interest in all such intercompany
Indebtedness shall have been granted to Administrative Agent for the benefit of Lenders and (b) if such intercompany Indebtedness is evidenced by a promissory note or other instrument, such promissory note or instrument shall have been pledged to
Administrative Agent pursuant to the Security Agreement; 
  
 (v) Company and its Subsidiaries, as applicable, may remain liable with respect to Indebtedness described in Schedule 7.1 annexed hereto and any extensions, renewals and refinancings of such Indebtedness;
provided that the principal amount of such Indebtedness (including guaranteed Indebtedness) being extended, renewed or refinanced is not increased; and 
  

(vi) Company and its Subsidiaries may become and remain liable with respect to other Indebtedness, including Indebtedness secured by
Liens permitted by subsection 7.2A(ii), in an aggregate principal amount not to exceed $3,000,000 at any time outstanding. 
  

	 	7.2	Liens and Related Matters 

  
 A. Prohibition on Liens. Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, create,
incur, assume or permit to exist any Lien on or with respect to any property or asset of any kind (including any document or instrument in respect of goods or accounts receivable) of Company or any of its Subsidiaries, whether now owned or hereafter
acquired, or any income or profits therefrom, or file or permit the filing of, or permit to remain in effect, any financing statement or other similar notice of any Lien with respect to any such property, asset, income or profits under the UCC or
under any similar recording or notice statute, except: 
  
 (i) Permitted Encumbrances; 
  
 (ii)
Liens to secure the payment of all or any part of the purchase price of an asset upon the acquisition of such asset by Company or a Subsidiary or to secure any Indebtedness permitted by subsection 7.1(vi) incurred by Company or a Subsidiary at the
time of or within ninety days after the acquisition of such asset, which Indebtedness is incurred for the purpose of financing all or any part of the purchase price thereof; provided, however, that the Lien shall apply only to the
asset so acquired and proceeds thereof; 
  
 (iii)
Liens described in Schedule 7.2 annexed hereto or incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by such Liens; provided that any extension, renewal or replacement Lien shall be limited to
the property encumbered by such Lien and the principal amount of the Indebtedness being extended, renewed or refinanced is not increased; and 
  

 89 

 (iv) other Liens securing Indebtedness in an aggregate amount, when combined with the
aggregate amount of Indebtedness secured by Liens permitted by subsection 7.2A(ii), not to exceed $3,000,000 at any time outstanding. 
  
 Notwithstanding the foregoing, Company and its Subsidiaries shall not enter into, or suffer to exist, any control agreements (as such term is defined in
the UCC). 
  
 B. No Further Negative
Pledges. Neither Company nor any of its Subsidiaries shall enter into any agreement prohibiting the creation or assumption of any Lien upon any of its properties or assets, whether now owned or hereafter acquired, other than (i) this Agreement
and the other Loan Documents, (ii) an agreement prohibiting only the creation of Liens securing Subordinated Indebtedness, (iii) any agreement evidencing Indebtedness secured by Liens permitted by subsection 7.2A(ii), as to the assets securing such
Indebtedness, and (iv) any agreement evidencing an asset sale, as to the assets being sold. 
  
 C. No Restrictions on Subsidiary Distributions to Company or Other Subsidiaries. Company will not, and will not permit any
of its Subsidiaries to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any such Subsidiary to (i) pay dividends or make any other distributions on any of such
Subsidiary’s Capital Stock owned by Company or any other Subsidiary of Company, (ii) repay or prepay any Indebtedness owed by such Subsidiary to Company or any other Subsidiary of Company, (iii) make loans or advances to Company or any other
Subsidiary of Company, or (iv) transfer any of its property or assets to Company or any other Subsidiary of Company, except (a) as provided in this Agreement and (b), as to transfers of assets, as may be provided in an agreement with respect to a
sale of such assets. 
  

	 	7.3	Investments; Acquisitions 

  
 Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, make or own any Investment in any Person,
including any Joint Venture, or acquire, by purchase or otherwise, all or substantially all the business, property or fixed assets of, or Capital Stock of any Person, or any division or line of business of any Person except: 
  
 (i) Company and its Subsidiaries may make and own
Investments in Cash and Cash Equivalents; provided that Company and its Subsidiaries shall not permit at any time the aggregate principal balance of all such Cash and Cash Equivalents on deposit in all Deposit Accounts and Securities Account
maintained at financial institutions that are not Lenders to exceed $500,000; 
  
 (ii) Company and its wholly-owned Domestic Subsidiaries may make and own additional equity Investments in their respective wholly-owned Domestic Subsidiaries; 
  
 (iii) Company and its Domestic Subsidiaries may make
intercompany loans to the extent permitted under subsection 7.1(iv); 
  

 90 

 (iv) Company and its Subsidiaries may make Consolidated Capital Expenditures that would
not result in an Event of Default under subsections 7.6A and 7.6B; provided that in the case of Investments in Ruth’s Chris restaurant franchises, (a) such franchise is wholly-owned by Company or a Subsidiary of Company and (b) such
franchise shall have had positive Franchise EBITDA for the twelve-month period preceding such acquisition; and 
  
 (v) Company and its Subsidiaries may continue to own the Investments owned by them and described in Schedule 7.3 annexed hereto.

  

	 	7.4	Contingent Obligations 

  
 Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, create or become or remain liable with respect
to any Contingent Obligation, except: 
  
 (i)
Company may become and remain liable with respect to Contingent Obligations in respect of Letters of Credit; 
  
 (ii) Company may become and remain liable with respect to Contingent Obligations under Hedge Agreements; provided that such Hedge
Agreements are not entered into for speculative purposes and are treated as Hedge Agreements under GAAP; and 
  
 (iii) Company and its Subsidiaries, as applicable, may remain liable with respect to Contingent Obligations described in Schedule
7.4 annexed hereto. 
  

	 	7.5	Restricted Junior Payments 

  
 Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, declare, order, pay, make or set apart any sum
for any Restricted Junior Payment; provided that Company may make Restricted Junior Payments so long as no Event of Default shall have occurred and be continuing or shall be caused thereby (i) in an aggregate amount not to exceed $1,000,000
in any Fiscal Year to the extent necessary to permit Company to repurchase shares of Capital Stock of Company (or options or warrants to acquire Capital Stock of Company) from former officers, directors or employees of Company or any of its
Subsidiaries following the death, disability or termination of employment of such officers, directors or employees, (ii) consisting of Senior PIK Dividends and Junior PIK Dividends (in each case as defined in Company’s Articles of Incorporation
as in effect on the Closing Date) and (iii) to redeem outstanding Preferred Stock with Net Securities Proceeds to the extent permitted by subsection 2.4B(iii)(c). 
  

	 	7.6	Financial Covenants 

  
 A. Minimum Fixed Charge Coverage Ratio. Company shall not permit the ratio of (i) Consolidated EBITDAR minus
(a) taxes paid in Cash and (b) Consolidated Capital 

  

 91 

 
Expenditures to (ii) Consolidated Fixed Charges for any four-Fiscal Quarter period to be less than 1.10:1.00. 
  
 B. Minimum Adjusted Fixed Charge Coverage
Ratio. Company shall not permit the ratio of (i) Consolidated EBITDAR minus (a) taxes paid in Cash and (b) Consolidated Maintenance Capital Expenditures to (ii) Consolidated Fixed Charges for any four-Fiscal Quarter period to be
less than 1.40:1.00. 
  
 C. Maximum
Leverage Ratio. Company shall not permit the Consolidated Leverage Ratio as at any date during any of the periods set forth below to exceed the correlative ratio indicated: 
  

			
	 Period

	  	Maximum Leverage Ratio

	 Closing Date through December 24, 2005
	  	4.85:1.00
		
	 December 25, 2005 through December 30, 2006
	  	4.75:1.00
		
	 December 31, 2006 through December 29, 2007
	  	4.50:1.00
		
	 December 30, 2007 through December 27, 2008
	  	4.25:1.00
		
	 December 28, 2008 through December 26, 2009
	  	4.00:1.00
		
	 December 27, 2009 through December 26, 2010
	  	3.75:1.00
		
	 December 27, 2010 through Term Loan Maturity
	  	3.50:1.00

  

	 	7.7	Restriction on Fundamental Changes; Asset Sales. 

  

Company shall not, and shall not permit any of its Subsidiaries to, alter the corporate, capital or legal structure of Company or any
of its Subsidiaries, or enter into any transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease or sub-lease (as lessor or sublessor), transfer or otherwise
dispose of, in one transaction or a series of transactions, all or any part of its business, property or assets (including its notes or receivables and Capital Stock of a Subsidiary, whether newly issued or outstanding), whether now owned or
hereafter acquired, except: 
  
 (i) any
Subsidiary of Company may be merged with or into Company or any wholly-owned Subsidiary Guarantor, or be liquidated, wound up or dissolved, or all or any part of its business, property or assets may be conveyed, sold, leased, transferred or
otherwise disposed of, in one transaction or a series of transactions, to Company or any wholly-owned Subsidiary Guarantor; provided that, in the case of such a merger, Company or such wholly-owned Subsidiary Guarantor shall be the continuing
or surviving Person; 
  

 92 

 (ii) Company may, with at least ten days’ prior written notice to Administrative
Agent, reincorporate to change its jurisdiction of organization to Delaware; 
  
 (iii) Company and its Subsidiaries may sell or otherwise dispose of assets in transactions that do not constitute Asset Sales; provided that the consideration received for such assets shall be in an amount at
least equal to the fair market value thereof; 
  
 (iv) Company and its Subsidiaries may dispose of obsolete, worn out or surplus property in the ordinary course of business; 
  
 (v) in order to resolve disputes that occur in the ordinary course of business, Company and its Subsidiaries may discount or otherwise
compromise for less than the face value thereof, notes or accounts receivable; 
  
 (vi) Company or a Subsidiary may sell or dispose of shares of Capital Stock of any of its Subsidiaries in order to qualify members of the
Governing Body of the Subsidiary if required by applicable law; 
  
 (vii) Company may sell or dispose of the Sugar Land Facility; and 
  
 (viii) any Person may be merged with or into any Subsidiary if the acquisition of the Capital Stock of such Person by such Subsidiary
would have been permitted pursuant to subsection 7.3; provided that if a Subsidiary is not the surviving or continuing Person, the surviving Person becomes a Subsidiary and complies with the provisions of subsection 6.8 and (b) no Potential
Event of Default or Event of Default shall have occurred or be continuing after giving effect thereto. 
  

	 	7.8	Transactions with Shareholders and Affiliates 

  
 Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property or the rendering of any service) with any holder of 5% or more of any class of equity Securities of Company or with any Affiliate of Company or of any such holder, on terms that are
less favorable to Company or that Subsidiary, as the case may be, than those that might be obtained at the time from Persons who are not such a holder or Affiliate; provided that the foregoing restriction shall not apply to (i) any
transaction between Company and any of its wholly-owned Subsidiaries or between any of its wholly-owned Subsidiaries, (ii) so long as 

  

 93 

 
no Event of Default shall have occurred and be continuing or shall be caused thereby, payments of transaction, management, consulting and advisory fees to
Madison Dearborn and its Affiliates in an aggregate amount not to exceed $150,000 in any Fiscal Year or (iii) reasonable and customary fees paid to members of the Governing Bodies of Company and its Subsidiaries. 
  

	 	7.9	Sales and Lease-Backs 

  
 Company shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, become or remain liable as lessee or as a
guarantor or other surety with respect to any lease, whether an Operating Lease or a Capital Lease, of any property (whether real, personal or mixed), whether now owned or hereafter acquired, (i) that Company or any of its Subsidiaries has sold or
transferred or is to sell or transfer to any other Person (other than Company or any of its Subsidiaries) or (ii) that Company or any of its Subsidiaries intends to use for substantially the same purpose as any other property that has been or is to
be sold or transferred by Company or any of its Subsidiaries to any Person (other than Company or any of its Subsidiaries) in connection with such lease. 
  

	 	7.10	Conduct of Business 

  
 From and after the Closing Date, Company shall not, and shall not permit any of its Subsidiaries to, engage in any business other than (i)
the businesses engaged in by Company and its Subsidiaries on the Closing Date and similar or related businesses and (ii) such other lines of business as may be consented to by Requisite Lenders. 
  

	 	7.11	Amendments of Organizational Documents and Preferred Stock Purchase Agreement 

  
 Neither Company nor any of its Subsidiaries will amend any Organizational Document or the Preferred Stock
Purchase Agreement after the Closing Date in a manner that is adverse to the rights of Lenders under the Loan Documents without in each case obtaining the prior written consent of Requisite Lenders to such amendment. 
  

	 	7.12	Fiscal Year 

  
 Company shall not change its Fiscal Year-end from the last Sunday in December of each calendar year. 
  

	 	7.13	New Subsidiaries 

  
 Company shall not form or acquire any direct or indirect Subsidiaries after the Closing Date unless such Subsidiary is in the same or
similar line of business as Company. 
  

	 	7.14	UFOC 

  
 Company shall not fail to maintain the UFOC in compliance with the representation and warranty contained subsection 5.18. 
  

 94 

	Section	8. EVENTS OF DEFAULT 

  
 If any of the following conditions or events (“Events of Default”) shall occur: 
  

	 	8.1	Failure to Make Payments When Due 

  
 Failure by Company to pay any installment of principal of any Loan when due, whether at stated maturity, by acceleration, by notice of
voluntary prepayment, by mandatory prepayment or otherwise; failure by Company to pay when due any amount payable to Issuing Lender in reimbursement of any drawing under a Letter of Credit; or failure by Company to pay any interest on any Loan or
any fee or any other amount due under this Agreement within five Business Days after the date due; or 
  

	 	8.2	Default in Other Agreements 

  
 (i) Failure of Company or any of its Subsidiaries to pay when due any principal of or interest on or any other amount payable in respect
of one or more items of Indebtedness (other than Indebtedness referred to in subsection 8.1) or Contingent Obligations in an individual principal amount of $1,000,000 or more or with an aggregate principal amount of $1,000,000 or more, in each case
beyond the end of any grace period provided therefor; or 
  
 (ii) breach or default by Company or any of its Subsidiaries with respect to any other material term of (a) one or more items of Indebtedness or Contingent Obligations in the individual or aggregate principal amounts
referred to in clause (i) above or (b) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness or Contingent Obligation(s), if the effect of such breach or default is to cause, or to permit the holder or
holders of that Indebtedness or Contingent Obligation(s) (or a trustee on behalf of such holder or holders) to cause, that Indebtedness or Contingent Obligation(s) to become or be declared due and payable prior to its stated maturity or the stated
maturity of any underlying obligation, as the case may be (upon the giving or receiving of notice, lapse of time, both, or otherwise); or 
  

	 	8.3	Breach of Certain Covenants 

  
 Failure of Company to perform or comply with any term or condition contained in subsection 2.5, 6.1(i) or 6.2 or Section 7 of this
Agreement; or 
  

	 	8.4	Breach of Warranty 

  
 Any representation, warranty, certification or other statement made by Company or any of its Subsidiaries in any Loan Document or in any
statement or certificate at any time given by Company or any of its Subsidiaries in writing pursuant hereto or thereto or in connection herewith or therewith shall be false in any material respect on the date as of which made; or 
  

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	 	8.5	Other Defaults Under Loan Documents 

  
 Any Loan Party shall default in the performance of or compliance with any term contained in this Agreement or any of the other Loan
Documents, other than any such term referred to in any other subsection of this Section 8, and such default shall not have been remedied or waived within fifteen days after the earlier of (i) an Officer of Company or such Loan Party becoming aware
of such default or (ii) receipt by Company and such Loan Party of notice from Administrative Agent or any Lender of such default; or 
  

	 	8.6	Involuntary Bankruptcy; Appointment of Receiver, etc. 

  
 (i) A court having jurisdiction in the premises shall enter a decree or order for relief in respect of
Company or any of its Subsidiaries in an involuntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, which decree or order is not stayed; or any other similar relief
shall be granted under any applicable federal or state law; or 
  
 (ii) an involuntary case shall be commenced against Company or any of its Subsidiaries under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect; or a
decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over Company or any of its Subsidiaries, or over all or a
substantial part of its property, shall have been entered; or there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of Company or any of its Subsidiaries for all or a substantial part of its
property; or a warrant of attachment, execution or similar process shall have been issued against any substantial part of the property of Company or any of its Subsidiaries, and any such event described in this clause (ii) shall continue for 60 days
unless dismissed, bonded or discharged; or 
  

	 	8.7	Voluntary Bankruptcy; Appointment of Receiver, etc. 

  
 (i) Company or any of its Subsidiaries shall have an order for relief entered with respect to it or commence
a voluntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; or Company or any of its Subsidiaries
shall make any assignment for the benefit of creditors; or 
  
 (ii) Company or any of its Subsidiaries shall be unable, or shall fail generally, or shall admit in writing its inability, to pay its debts as such debts become due; or the Governing Body of Company or any of its
Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in clause (i) above or this clause (ii); or 
  

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	 	8.8	Judgments and Attachments 

  
 Any money judgment, writ or warrant of attachment or similar process involving (i) in any individual case an amount in excess of
$1,000,000 or (ii) in the aggregate at any time an amount in excess of $1,000,000, in either case to the extent not adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage, shall be entered
or filed against Company or any of its Subsidiaries or any of their respective assets and shall remain undischarged, unvacated, unbonded or unstayed for a period of 60 days (or in any event later than five days prior to the date of any proposed sale
thereunder); or 
  

	 	8.9	Nonmonetary Judgments 

  
 Any nonmonetary judgment, writ or warrant of attachment or similar process that could reasonably be expected to result in a Material
Adverse Effect shall be entered or filed against Company or any of its Subsidiaries or any of their respective assets and shall remain undischarged, unvacated, unbonded or unstayed for a period of 60 days (or in any event later than five days prior
to the date of any proposed sale thereunder); or 
  

	 	8.10	Dissolution 

  
 Any order, judgment or decree shall be entered against Company or any of its Subsidiaries decreeing the dissolution or split up of Company
or that Subsidiary and such order shall remain undischarged or unstayed for a period in excess of 30 days; or 
  

	 	8.11	Employee Benefit Plans 

  
 There shall occur one or more ERISA Events that individually or in the aggregate result in or might reasonably be expected to result in
liability of Company, any of its Subsidiaries or any of their respective ERISA Affiliates in excess of $100,000 during the term of this Agreement; or Company, any of its Subsidiaries or any of their respective Affiliates shall adopt or become
obligated to contribute to any Pension Plan or Multiemployer Plan; or 
  

	 	8.12	Change in Control 

  
 A Change in Control shall have occurred; or 
  

	 	8.13	Invalidity of Loan Documents; Failure of Security; Repudiation of Obligations 

  
 At any time after the execution and delivery thereof, (i) any Loan Document or any provision thereof, for
any reason other than the satisfaction in full of all Obligations, shall cease to be in full force and effect (other than in accordance with its terms) or shall be declared to be null and void, (ii) Administrative Agent shall not have or shall cease
to have a valid and perfected First Priority Lien in any Collateral purported to be covered by the Collateral Documents, in each case for any reason other than the failure of Administrative Agent or any Lender to take any action within its control,
or (iii) any Loan Party shall contest the validity or enforceability of any Loan Document or any provision thereof in writing or deny in writing that 

  

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it has any further liability, including with respect to future advances by Lenders, under any Loan Document or any provision thereof to which it is a party:

  
 THEN (i) upon the occurrence of any
Event of Default described in subsection 8.6 or 8.7, each of (a) the unpaid principal amount of and accrued interest on the Loans, (b) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding
(whether or not any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letter of Credit), and (c) all other
Obligations shall automatically become immediately due and payable, without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by Company, and the obligation of each Lender to make any Loan, the
obligation of Administrative Agent to issue any Letter of Credit and the right of Issuing Lender to issue any Letter of Credit hereunder shall thereupon terminate, and (ii) upon the occurrence and during the continuation of any other Event of
Default, Administrative Agent shall, upon the written request or with the written consent of Requisite Lenders, by written notice to Company, declare all or any portion of the amounts described in clauses (a) through (c) above to be, and the same
shall forthwith become, immediately due and payable, and the obligation of each Lender to make any Loan, the obligation of Issuing Lender to issue any Letter of Credit hereunder shall thereupon terminate; provided that the foregoing shall not
affect in any way the obligations of Revolving Lenders under subsection 3.3C(i) or the obligations of Revolving Lenders to purchase assignments of any unpaid Swing Line Loans as provided in subsection 2.1A(iii). 
  
 Any amounts described in clause (b) above, when received by
Administrative Agent, shall be held by Administrative Agent pursuant to the terms of the Security Agreement and shall be applied as therein provided. 
  

	Section	9. ADMINISTRATIVE AGENT 

  

	 	9.1	Appointment 

  
 A. Appointment of Administrative Agent. Wells Fargo is hereby appointed Administrative Agent hereunder and under the other
Loan Documents. Each Lender hereby authorizes Administrative Agent to act as its agent in accordance with the terms of this Agreement and the other Loan Documents. Wells Fargo agrees to act upon the express conditions contained in this Agreement and
the other Loan Documents, as applicable. The provisions of this Section 9 are solely for the benefit of Agents and Lenders and no Loan Party shall have rights as a third party beneficiary of any of the provisions thereof. In performing its functions
and duties under this Agreement, Administrative Agent (other than as provided in subsection 2.1D) shall act solely as an agent of Lenders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or
trust with or for Company or any other Loan Party. 
  
 B. Appointment of Supplemental Collateral Agents. It is the purpose of this Agreement and the other Loan Documents that there shall be no violation of any law of any jurisdiction denying or restricting the right of banking
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business as agent or trustee in such jurisdiction. It is recognized that in case of litigation under this Agreement or any of the other Loan Documents, and
in particular in case of the enforcement of any of the Loan Documents, or in case Administrative Agent deems that by reason of any present or future law of any jurisdiction it may not exercise any of the rights, powers or remedies granted herein or
in any of the other Loan Documents or take any other action which may be desirable or necessary in connection therewith, it may be necessary that Administrative Agent appoint an additional individual or institution as a separate trustee, co-trustee,
collateral agent or collateral co-agent (any such additional individual or institution being referred to herein individually as a “Supplemental Collateral Agent” and collectively as “Supplemental Collateral
Agents”). 
  
 In the event that
Administrative Agent appoints a Supplemental Collateral Agent with respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended by this Agreement or any of the other Loan Documents to be exercised by or vested
in or conveyed to Administrative Agent with respect to such Collateral shall be exercisable by and vest in such Supplemental Collateral Agent to the extent, and only to the extent, necessary to enable such Supplemental Collateral Agent to exercise
such rights, powers and privileges with respect to such Collateral and to perform such duties with respect to such Collateral, and every covenant and obligation contained in the Loan Documents and necessary to the exercise or performance thereof by
such Supplemental Collateral Agent shall run to and be enforceable by either Administrative Agent or such Supplemental Collateral Agent, and (ii) the provisions of this Section 9 and of subsections 10.2 and 10.3 that refer to Administrative Agent
shall inure to the benefit of such Supplemental Collateral Agent and all references therein to Administrative Agent shall be deemed to be references to Administrative Agent and/or such Supplemental Collateral Agent, as the context may require.

  
 Should any instrument in writing from Company
or any other Loan Party be required by any Supplemental Collateral Agent so appointed by Administrative Agent for more fully and certainly vesting in and confirming to him or it such rights, powers, privileges and duties, Company shall, or shall
cause such Loan Party to, execute, acknowledge and deliver any and all such instruments promptly upon request by Administrative Agent. In case any Supplemental Collateral Agent, or a successor thereto, shall die, become incapable of acting, resign
or be removed, all the rights, powers, privileges and duties of such Supplemental Collateral Agent, to the extent permitted by law, shall vest in and be exercised by Administrative Agent until the appointment of a new Supplemental Collateral Agent.

  
 C. Control. Each Lender
and Administrative Agent hereby appoint each other Lender as agent for the purpose of perfecting Administrative Agent’s security interest in assets that, in accordance with the UCC, can be perfected by possession or control. 
  

	 	9.2	Powers and Duties; General Immunity 

  
 A. Powers; Duties Specified. Each Lender irrevocably authorizes Administrative Agent to take such action on such
Lender’s behalf and to exercise such powers, rights and remedies hereunder and under the other Loan Documents as are specifically delegated or granted to Administrative Agent by the terms hereof and thereof, together with such powers, 

  

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rights and remedies as are reasonably incidental thereto. Administrative Agent shall have only those duties and responsibilities that are expressly specified
in this Agreement and the other Loan Documents. Administrative Agent may exercise such powers, rights and remedies and perform such duties by or through its agents or employees. Administrative Agent shall not have, by reason of this Agreement or any
of the other Loan Documents, a fiduciary relationship in respect of any Lender or Company; and nothing in this Agreement or any of the other Loan Documents, expressed or implied, is intended to or shall be so construed as to impose upon
Administrative Agent any obligations in respect of this Agreement or any of the other Loan Documents except as expressly set forth herein or therein. 
  
 B. No Responsibility for Certain Matters. No Agent shall be responsible to any Lender for the execution,
effectiveness, genuineness, validity, enforceability, collectibility or sufficiency of this Agreement or any other Loan Document or for any representations, warranties, recitals or statements made herein or therein or made in any written or oral
statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or made by such Agent to Lenders or by or on behalf of Company to such Agent or any Lender in connection with the Loan
Documents and the transactions contemplated thereby or for the financial condition or business affairs of Company or any other Person liable for the payment of any Obligations, nor shall such Agent be required to ascertain or inquire as to the
performance or observance of any of the terms, conditions, provisions, covenants or agreements contained in any of the Loan Documents or as to the use of the proceeds of the Loans or the use of the Letters of Credit or as to the existence or
possible existence of any Event of Default or Potential Event of Default. Anything contained in this Agreement to the contrary notwithstanding, Administrative Agent shall not have any liability arising from confirmations of the amount of outstanding
Loans or the Letter of Credit Usage or the component amounts thereof. 
  
 C. Exculpatory Provisions. No Agent or any of its officers, directors, employees or agents shall be liable to Lenders for any action taken or omitted by such Agent under or in connection with any
of the Loan Documents except to the extent caused by such Agent’s gross negligence or willful misconduct. An Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection
with this Agreement or any of the other Loan Documents or from the exercise of any power, discretion or authority vested in it hereunder or thereunder unless and until such Agent shall have received instructions in respect thereof from Requisite
Lenders (or such other Lenders as may be required to give such instructions under subsection 10.6) and, upon receipt of such instructions from Requisite Lenders (or such other Lenders, as the case may be), such Agent shall be entitled to act or
(where so instructed) refrain from acting, or to exercise such power, discretion or authority, in accordance with such instructions; provided that no Agent shall be required to take any action that, in its opinion or the opinion of its
counsel, may expose such Agent to liability or that is contrary to any Loan Document or applicable law. Without prejudice to the generality of the foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying, upon any
communication (including any electronic message, Internet or intranet website posting or other distribution), instrument or document believed by it to be genuine and correct and to have been signed or sent by the proper person or persons, and shall
be entitled to rely and shall be 

  

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protected in relying on opinions and judgments of attorneys (who may be attorneys for Company and its Subsidiaries), accountants, experts and other
professional advisors selected by it; and (ii) no Lender shall have any right of action whatsoever against an Agent as a result of such Agent acting or (where so instructed) refraining from acting under this Agreement or any of the other Loan
Documents in accordance with the instructions of Requisite Lenders (or such other Lenders as may be required to give such instructions under subsection 10.6). 
  

D. Agents Entitled to Act as Lender. The agency hereby created shall in no way impair or affect any of the rights
and powers of, or impose any duties or obligations upon, an Agent in its individual capacity as a Lender hereunder. With respect to its participation in the Loans and the Letters of Credit, an Agent shall have the same rights and powers hereunder as
any other Lender and may exercise the same as though it were not performing the duties and functions delegated to it hereunder, and the term “Lender” or “Lenders” or any similar term shall, unless the context clearly otherwise
indicates, include each Agent in its individual capacity. An Agent and its Affiliates may accept deposits from, lend money to, acquire equity interests in and generally engage in any kind of commercial banking, investment banking, trust, financial
advisory or other business with Company or any of its Affiliates as if it were not performing the duties specified herein, and may accept fees and other consideration from Company for services in connection with this Agreement and otherwise without
having to account for the same to Lenders. 
  

	 	9.3	Independent Investigation by Lenders; No Responsibility For Appraisal of Creditworthiness 

  
 Each Lender agrees that it has made its own independent
investigation of the financial condition and affairs of Company and its Subsidiaries in connection with the making of the Loans and the issuance of Letters of Credit hereunder and that it has made and shall continue to make its own appraisal of the
creditworthiness of Company and its Subsidiaries. No Agent shall have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of Lenders or to provide any Lender with any
credit or other information with respect thereto, whether coming into its possession before the making of the Loans or at any time or times thereafter, and no Agent shall have any responsibility with respect to the accuracy of or the completeness of
any information provided to Lenders. 
  

	 	9.4	Right to Indemnity 

  
 Each Lender, in proportion to its Pro Rata Share, severally agrees to indemnify each Agent and its officers, directors, employees, agents,
attorneys, professional advisors and Affiliates to the extent that any such Person shall not have been reimbursed by Company, for and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including counsel fees and disbursements and fees and disbursements of any financial advisor engaged by Agents) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against an Agent or such
other Person in exercising the powers, rights and remedies of an Agent or performing duties of an Agent hereunder or under the other Loan Documents or otherwise in its capacity as Agent in any way relating to or arising out of this Agreement or the
other Loan Documents; provided that no Lender shall be liable for 

  

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any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of an Agent resulting
solely from such Agent’s gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction. If any indemnity furnished to an Agent or any other such Person for any purpose shall, in the opinion of
such Agent, be insufficient or become impaired, such Agent may call for additional indemnity and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished. 
  

	 	9.5	Resignation of Agents; Successor Administrative Agent and Swing Line Lender 

  
 A. Resignation; Successor Administrative Agent. Any Agent may resign at any time by giving 30
days’ prior written notice thereof to Lenders and Company. Upon any such notice of resignation by Administrative Agent, Requisite Lenders shall have the right, upon five Business Days’ notice to Company, to appoint a successor
Administrative Agent. If no such successor shall have been so appointed by Requisite Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, the retiring Administrative
Agent may, on behalf of Lenders, appoint a successor Administrative Agent. If Administrative Agent shall notify Lenders and Company that no Person has accepted such appointment as successor Administrative Agent, such resignation shall nonetheless
become effective in accordance with Administrative Agent’s notice and (i) the retiring Administrative Agent shall be discharged from its duties and obligations under the Loan Documents, except that any Collateral held by Administrative Agent
will continue to be held by it until a Person shall have accepted the appointment of successor Administrative Agent, and (ii) all payments, communications and determinations provided to be made by, to or through Administrative Agent shall instead be
made by, to or through each Lender directly, until such time as Requisite Lenders appoint a successor Administrative Agent in accordance with this subsection 9.5A. Upon the acceptance of any appointment as Administrative Agent hereunder by a
successor Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent and the retiring Administrative Agent shall be
discharged from its duties and obligations under this Agreement (if not already discharged as set forth above). After any retiring Agent’s resignation hereunder, the provisions of this Section 9 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was an Agent under this Agreement. 
  
 B. Successor Swing Line Lender. Any resignation of Administrative Agent pursuant to subsection 9.5A shall also constitute
the resignation of Wells Fargo or its successor as Swing Line Lender, and any successor Administrative Agent appointed pursuant to subsection 9.5A shall, upon its acceptance of such appointment, become the successor Swing Line Lender for all
purposes hereunder. In such event (i) Company shall prepay any outstanding Swing Line Loans made by the retiring Administrative Agent in its capacity as Swing Line Lender, (ii) upon such prepayment, the retiring Administrative Agent and Swing Line
Lender shall surrender any Swing Line Note held by it to Company for cancellation, and (iii) if so requested by the successor Administrative Agent and Swing Line Lender in accordance with subsection 2.1E, Company shall issue a Swing Line Note to the
successor Administrative Agent and Swing Line 

  

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Lender substantially in the form of Exhibit VI annexed hereto, in the amount of the Swing Line Loan Commitment then in effect and with other
appropriate insertions. 
  

	 	9.6	Collateral Documents and Subsidiary Guaranty 

  
 Each Lender (which term shall include, for purposes of this subsection 9.6, any Swap Counterparty) hereby further authorizes
Administrative Agent, on behalf of and for the benefit of Lenders, to enter into each Collateral Document as secured party and to be the agent for and representative of Lenders under the Subsidiary Guaranty, and each Lender agrees to be bound by the
terms of each Collateral Document and the Subsidiary Guaranty; provided that Administrative Agent shall not (i) enter into or consent to any material amendment, modification, termination or waiver of any provision contained in any Collateral
Document or the Subsidiary Guaranty or (ii) release any Collateral (except as otherwise expressly permitted or required pursuant to the terms of this Agreement or the applicable Collateral Document), in each case without the prior consent of
Requisite Lenders (or, if required pursuant to subsection 10.6, all Lenders); provided further, however, that, without further written consent or authorization from Lenders, Administrative Agent may execute any documents or
instruments necessary to (a) release any Lien encumbering any item of Collateral that is the subject of a sale or other disposition of assets permitted by this Agreement or to which Requisite Lenders have otherwise consented, (b) release any
Subsidiary Guarantor from the Subsidiary Guaranty if all of the Capital Stock of such Subsidiary Guarantor is sold to any Person (other than an Affiliate of Company) pursuant to a sale or other disposition permitted hereunder or to which Requisite
Lenders have otherwise consented or (c) subordinate the Liens of Administrative Agent, on behalf of Lenders, to any Liens permitted by subsection 7.2A (except for Liens permitted by clause (iv) thereof); provided that, in the case of a sale
of such item of Collateral or stock referred to in subdivision (a) or (b), the requirements of subsection 10.14 are satisfied. Anything contained in any of the Loan Documents to the contrary notwithstanding, Company, Administrative Agent and each
Lender hereby agree that (1) no Lender shall have any right individually to realize upon any of the Collateral under any Collateral Document or to enforce the Subsidiary Guaranty, it being understood and agreed that all powers, rights and remedies
under the Collateral Documents and the Subsidiary Guaranty may be exercised solely by Administrative Agent for the benefit of Lenders in accordance with the terms of the Collateral Documents and the Subsidiary Guaranty, and (2) in the event of a
foreclosure by Administrative Agent on any of the Collateral pursuant to a public or private sale, Administrative Agent or any Lender may be the purchaser of any or all of such Collateral at any such sale and Administrative Agent, as agent for and
representative of Lenders (but not any Lender or Lenders in its or their respective individual capacities unless Requisite Lenders shall otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or payment of
the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by Administrative Agent at such sale.

  
 Without derogating from any other authority
granted to Administrative Agent herein or in the Collateral Documents or any other document relating thereto, each Lender hereby specifically (i) authorizes Administrative Agent to enter into pledge agreements, security agreements or any other
agreements or instruments pursuant to this subsection 9.6 with respect to 

  

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the Capital Stock of any existing and future Foreign Subsidiaries, which agreements or instruments may be governed by the laws of each of the jurisdictions
of formation of such Foreign Subsidiaries, as agent on behalf of each Lender, with the effect that Lenders each become a secured party thereunder and (ii) appoints Administrative Agent as its attorney-in-fact granting it the powers to execute each
such agreement or instrument and any registrations of the security interest thereby created, in each case in its name and on its behalf, with the effect that each Lender becomes a secured party thereunder. With respect to each such pledge agreement,
Administrative Agent has the power to sub-delegate to third parties its powers as attorney-in-fact of each Lender. 
  

	 	9.7	Duties of Other Agents 

  
 To the extent that any Lender is identified in this Agreement as a co-agent, documentation agent or syndication agent, such Lender shall
not have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to all Lenders as such. Without limiting the foregoing, none of such Lenders shall have or be deemed to have a fiduciary
relationship with any Lender. 
  

	 	9.8	Administrative Agent May File Proofs of Claim 

  
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to Company or any of the Subsidiaries of Company, Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether Administrative Agent shall have made any demand on Company) shall be entitled and empowered, by intervention in such proceeding or otherwise 
  
 (i) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of
the Loans and any other Obligations that are owing and unpaid and to file such other papers or documents as may be necessary or advisable in order to have the claims of Lenders and Agents (including any claim for the reasonable compensation,
expenses, disbursements and advances of Lenders and Agents and their agents and counsel and all other amounts due Lenders and Agents under subsections 2.3 and 10.2) allowed in such judicial proceeding, and 
  
 (ii) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same; 
  
 and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Administrative Agent and, in the event that Administrative Agent
shall consent to the making of such payments directly to Lenders, to pay to Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Agents and their agents and counsel, and any other amounts due
Agents under subsections 2.3 and 10.2. 
  

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 Nothing herein contained shall be deemed to authorize Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lenders or to authorize Administrative Agent to vote in respect of the claim
of any Lender in any such proceeding. 
  

	Section	10. MISCELLANEOUS 

  

	 	10.1	Successors and Assigns; Assignments and Participations in Loans and Letters of Credit 

  
 A. General. This Agreement shall be binding
upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of Lenders (it being understood that Lenders’ rights of assignment are subject to the
further provisions of this subsection 10.1). Neither Company’s rights or obligations hereunder nor any interest therein may be assigned or delegated by Company without the prior written consent of all Lenders (and any attempted assignment or
transfer by Company without such consent shall be null and void). No sale, assignment or transfer or participation of any Letter of Credit or any participation therein may be made separately from a sale, assignment, transfer or participation of a
corresponding interest in the Revolving Loan Commitment and the Revolving Loans of the Revolving Lender effecting such sale, assignment, transfer or participation. Anything contained herein to the contrary notwithstanding, except as provided in
subsection 2.1A(iii) and subsection 10.5, the Swing Line Loan Commitment and the Swing Line Loans of Swing Line Lender may not be sold, assigned or transferred as described below to any Person other than a successor Administrative Agent and Swing
Line Lender to the extent contemplated by subsection 9.5. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to
the extent expressly contemplated hereby, the Affiliates of each of Administrative Agent and Lenders and Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  
 B. Assignments. 
  
 (i) Amounts and Terms of Assignments. Any Lender may
assign to one or more Eligible Assignees all or any portion of its rights and obligations under this Agreement; provided that (a), except (1) in the case of an assignment of the entire remaining amount of the assigning Lender’s rights
and obligations under this Agreement or (2) in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund of a Lender, the aggregate amount of the Revolving Loan Exposure or Term Loan Exposure, as the case may be, of the
assigning Lender and the assignee subject to each such assignment shall not be less than $1,000,000 (aggregating concurrent assignments to two or more Affiliated Funds for purposes of determining such minimum amount), unless each of Administrative
Agent and, so long as no Potential Event of Default or Event of Default has occurred and is continuing, Company otherwise consents (each such consent not to be unreasonably withheld or delayed), (b) each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations 

  

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under this Agreement with respect to the Loan or the Commitment assigned, and any assignment of all or any portion of a Revolving Loan Commitment, Revolving
Loan or Letter of Credit participation shall be made only as an assignment of the same proportionate part of the assigning Lender’s Revolving Loan Commitment, Revolving Loans and Letter of Credit participations, (c) the parties to each
assignment shall execute and deliver to Administrative Agent an Assignment Agreement, together with a processing and recordation fee of $3,500 (unless the assignee is an Affiliate or an Approved Fund of the assignor, in which case no fee shall be
required); provided that only one such fee shall be required in connection with concurrent assignments to two or more Affiliated Funds, and the Eligible Assignee, if it shall not be a Lender, shall deliver to Administrative Agent information
reasonably requested by Administrative Agent, including such forms, certificates or other evidence, if any, with respect to United States federal income tax withholding matters as the assignee under such Assignment Agreement may be required to
deliver to Administrative Agent pursuant to subsection 2.7B(iv) and (d), except in the case of an assignment to another Lender, an Affiliate of a Lender or an Approved Fund of a Lender, Administrative Agent and, if no Potential Event of Default or
Event of Default has occurred and is continuing, Company, shall have consented thereto (which consent shall not be unreasonably withheld). 
  
 Upon such execution, delivery and consent, from and after the effective date specified in such Assignment Agreement, (y) the assignee
thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment Agreement, shall have the rights and obligations of a Lender hereunder and (z) the assigning Lender
thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement, relinquish its rights (other than any rights which survive the termination of this Agreement under subsection
10.9B) and be released from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to
be a party hereto; provided that, anything contained in any of the Loan Documents to the contrary notwithstanding, if such Lender is Issuing Lender such Lender shall continue to act as Issuing Lender until it resigns or is removed as provided
in Subsection 10.21). The assigning Lender shall, upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its Notes, if any, to Administrative Agent for cancellation, and thereupon new Notes shall, if so
requested by the assignee and/or the assigning Lender in accordance with subsection 2.1E, be issued to the assignee and/or to the assigning Lender, substantially in the form of Exhibit IV or Exhibit V annexed hereto, as the case may
be, with appropriate insertions, to reflect the amounts of the new Commitments and/or outstanding Revolving Loans and/or outstanding Term Loans, as the case may be, of the assignee and/or the assigning Lender. Other than as provided in subsection
2.1A(iii) and subsection 10.5, any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection 10.1B shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with subsection 10.1C. 
  

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 (ii) Acceptance by Administrative Agent; Recordation in Register. Upon its receipt
of an Assignment Agreement executed by an assigning Lender and an assignee representing that it is an Eligible Assignee, together with the processing and recordation fee referred to in subsection 10.1B(i) and any forms, certificates or other
evidence with respect to United States federal income tax withholding matters that such assignee may be required to deliver to Administrative Agent pursuant to subsection 2.7B(iv), Administrative Agent shall, if Administrative Agent and Company have
consented to the assignment evidenced thereby (in each case to the extent such consent is required pursuant to subsection 10.1B(i)), (a) accept such Assignment Agreement by executing a counterpart thereof as provided therein (which acceptance shall
evidence any required consent of Administrative Agent to such assignment), (b) record the information contained therein in the Register, and (c) give prompt notice thereof to Company. Administrative Agent shall maintain a copy of each Assignment
Agreement delivered to and accepted by it as provided in this subsection 10.1B(ii). 
  
 (iii) Deemed Consent by Company. If the consent of Company to an assignment or to an Eligible Assignee is required hereunder
(including a consent to an assignment which does not meet the minimum assignment thresholds specified in subsection 10.1B(i)), Company shall be deemed to have given its consent five Business Days after the date notice thereof has been delivered by
the assigning Lender (through Administrative Agent) unless such consent is expressly refused by Company prior to such fifth Business Day. 
  
 C. Participations. Any Lender may, without the consent of, or notice to, Company or Administrative Agent, sell
participations to one or more Persons (other than a natural Person or Company or any of its Affiliates) in all or a portion of such Lender’s rights and/or obligations under this Agreement; provided that (i) such Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) Company, Administrative Agent and Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right
to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, modification or waiver directly affecting (i) the extension of the scheduled final maturity date of any Loan allocated to such participation or (ii) a reduction of the principal amount of or the rate of interest payable on any Loan
allocated to such participation. Subject to the further provisions of this subsection 10.1C, Company agrees that each Participant shall be entitled to the benefits of subsections 2.6D and 2.7 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to subsection 10.1B. To the extent permitted by law, each Participant also shall be entitled to the benefits of subsection 10.4 as though it were a Lender, provided such Participant agrees to be subject
to subsection 10.5 as though it were a Lender. A Participant shall not be entitled to receive any greater payment under subsections 2.6D and 2.7 than the applicable Lender would have been entitled to receive with respect to the participation sold to

  

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such Participant unless the sale of the participation to such Participant is made with Company’s prior written consent. No Participant shall be entitled
to the benefits of subsection 2.7 unless Company is notified of the participation sold to such Participant and such Participant agrees, for the benefit of Company, to comply with subsection 2.7B(iv) as though it were a Lender. 
  
 D. Pledges and Assignments. Any Lender may at
any time pledge or assign a security interest in all or any portion of its Loans, and the other Obligations owed to such Lender, to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to any
Federal Reserve Bank; provided that (i) no Lender shall be relieved of any of its obligations hereunder as a result of any such assignment or pledge and (ii) in no event shall any assignee or pledgee be considered to be a “Lender”
or be entitled to require the assigning Lender to take or omit to take any action hereunder. 
  
 E. Information. Each Lender may furnish any information concerning Company and its Subsidiaries in the possession of that
Lender from time to time to assignees and participants (including prospective assignees and participants), subject to subsection 10.19. 
  
 F. Agreements of Lenders. Each Lender listed on the signature pages hereof hereby agrees, and each Lender that becomes a
party hereto pursuant to an Assignment Agreement shall be deemed to agree, (i) that it is an Eligible Assignee described in clause (ii) of the definition thereof; (ii) that it has experience and expertise in the making of or purchasing loans such as
the Loans; and (iii) that it will make or purchase Loans for its own account in the ordinary course of its business and without a view to distribution of such Loans within the meaning of the Securities Act or the Exchange Act or other federal
securities laws (it being understood that, subject to the provisions of this subsection 10.1, the disposition of such Loans or any interests therein shall at all times remain within its exclusive control). 
  

	 	10.2	Expenses 

  
 Whether or not the transactions contemplated hereby shall be consummated, Company agrees to pay promptly (i) all reasonable costs and
expenses of negotiation, preparation and execution of the Loan Documents and any consents, amendments, waivers or other modifications thereto; (ii) all costs and expenses of furnishing all opinions by counsel for Company (including any opinions
requested by Agents or Lenders as to any legal matters arising hereunder) and of Company’s performance of and compliance with all agreements and conditions on its part to be performed or complied with under this Agreement and the other Loan
Documents including with respect to confirming compliance with environmental, insurance and solvency requirements; (iii) all reasonable fees, expenses and disbursements of counsel to Administrative Agent (including allocated costs of internal
counsel) in connection with the negotiation, preparation, execution and administration of the Loan Documents and any consents, amendments, waivers or other modifications thereto and any other documents or matters requested by Company; (iv) all costs
and expenses of creating and perfecting Liens in favor of Administrative Agent on behalf of Lenders pursuant to any Collateral Document, including filing and recording fees, expenses and taxes, stamp or documentary taxes, search fees, title
insurance premiums, and reasonable fees, expenses and disbursements of counsel to Administrative Agent and of counsel providing any opinions that Administrative Agent or Requisite Lenders may 

  

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request in respect of the Collateral Documents or the Liens created pursuant thereto; (v) all costs and expenses (including the reasonable fees, expenses and
disbursements of any auditors, accountants or appraisers and any environmental or other consultants, advisors and agents employed or retained by Administrative Agent or its counsel) of obtaining and reviewing any appraisals and any environmental
audits or reports provided for under subsection 6.9; (vi) all costs and expenses incurred by Administrative Agent in connection with the custody or preservation of any of the Collateral; (vii) all other costs and expenses incurred by Administrative
Agent in connection with the syndication of the Commitments; (viii) all costs and expenses, including reasonable attorneys’ fees (including allocated costs of internal counsel) and fees, costs and expenses of accountants, advisors and
consultants, incurred by Administrative Agent and its counsel relating to efforts to (a) evaluate or assess any Loan Party, its business or financial condition and (b) protect, evaluate, assess or dispose of any of the Collateral; and (ix) all costs
and expenses, including reasonable attorneys’ fees (including allocated costs of internal counsel), fees, costs and expenses of accountants, advisors and consultants and costs of settlement, incurred by Administrative Agent and Lenders in
enforcing any Obligations of or in collecting any payments due from any Loan Party hereunder or under the other Loan Documents (including in connection with the sale of, collection from, or other realization upon any of the Collateral or the
enforcement of the Loan Documents) or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings.

  

	 	10.3	Indemnity 

  
 In addition to the payment of expenses pursuant to subsection 10.2, whether or not the transactions contemplated hereby shall be
consummated, Company agrees to defend (subject to Indemnitees’ selection of counsel), indemnify, pay and hold harmless Agents and Lenders (including Issuing Lenders), and the officers, directors, trustees, employees, agents, advisors and
Affiliates of Agents and Lenders (collectively called the “Indemnitees”), from and against any and all Indemnified Liabilities (as hereinafter defined); provided that Company shall not have any obligation to any Indemnitee
hereunder with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities arise solely from the gross negligence or willful misconduct of that Indemnitee as determined by a final judgment of a court of competent jurisdiction.

  
 As used herein, “Indemnified
Liabilities” means, collectively, any and all liabilities, obligations, losses, damages (including natural resource damages), penalties, actions, judgments, suits, claims (including Environmental Claims), costs (including the costs of any
investigation, study, sampling, testing, abatement, cleanup, removal, remediation or other response action necessary to remove, remediate, clean up or abate any Hazardous Materials Activity), expenses and disbursements of any kind or nature
whatsoever (including the reasonable fees and disbursements of counsel for Indemnitees (including allocated costs of internal counsel) in connection with any investigative, administrative or judicial proceeding commenced or threatened by any Person,
whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any fees or expenses incurred by Indemnitees in enforcing this indemnity), whether direct, indirect or consequential and whether based on any
federal, state or foreign laws, statutes, rules or regulations (including securities and commercial 

  

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laws, statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred
by, or asserted against any such Indemnitee, in any manner relating to or arising out of (i) this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby (including Lenders’ agreement to make the Loans hereunder
or the use or intended use of the proceeds thereof or the issuance of Letters of Credit hereunder or the use or intended use of any thereof, the failure of Issuing Lender to honor a drawing under a Letter of Credit as a result of any act or
omission, whether rightful or wrongful, of any present or future de jure or de facto Government Authority, or any enforcement of any of the Loan Documents (including any sale of, collection from, or other realization upon any of the Collateral or
the enforcement of the Subsidiary Guaranty)), (ii) the statements contained in the commitment letter delivered by any Lender to Company with respect thereto, or (iii) any Environmental Claim or any Hazardous Materials Activity relating to or arising
from, directly or indirectly, any past or present activity, operation, land ownership, or practice of Company or any of its Subsidiaries. 
  
 To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this subsection 10.3 may be unenforceable in
whole or in part because they are violative of any law or public policy, Company shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by Indemnitees or any of them. 
  

	 	10.4	Set-Off 

  
 In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, upon the
occurrence and during the continuation of any Event of Default each of Lenders and their Affiliates is hereby authorized by Company at any time or from time to time, without notice to Company or to any other Person, any such notice being hereby
expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, time or demand, provisional or final, including Indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including
trust accounts) and any other Indebtedness at any time held or owing by that Lender or any Affiliate of that Lender to or for the credit or the account of Company and each other Loan Party against and on account of the Obligations of Company or any
other Loan Party to that Lender (or any Affiliate of that Lender) or to any other Lender (or any Affiliate of any other Lender) under this Agreement, the Letters of Credit and participations therein and the other Loan Documents, including all claims
of any nature or description arising out of or connected with this Agreement, the Letters of Credit and participations therein or any other Loan Document, irrespective of whether or not (i) that Lender shall have made any demand hereunder or (ii)
the principal of or the interest on the Loans or any amounts in respect of the Letters of Credit or any other amounts due hereunder shall have become due and payable pursuant to Section 8 and although said obligations and liabilities, or any of
them, may be contingent or unmatured. 
  

	 	10.5	Ratable Sharing 

  
 Lenders hereby agree among themselves that if any of them shall, whether by voluntary or mandatory payment (other than a payment or
prepayment of Loans made and 

  

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applied in accordance with the terms of this Agreement), by realization upon security, through the exercise of any right of set-off or banker’s lien, by
counterclaim or cross action or by the enforcement of any right under the Loan Documents or otherwise, or as adequate protection of a deposit treated as cash collateral under the Bankruptcy Code, receive payment or reduction of a proportion of the
aggregate amount of principal, interest, amounts payable in respect of Letters of Credit, fees and other amounts then due and owing to that Lender hereunder or under the other Loan Documents (collectively, the “Aggregate Amounts
Due” to such Lender) that is greater than the proportion received by any other Lender in respect of the Aggregate Amounts Due to such other Lender, then the Lender receiving such proportionately greater payment shall, unless such
proportionately greater payment is required by the terms of this Agreement, (i) notify Administrative Agent and each other Lender of the receipt of such payment and (ii) apply a portion of such payment to purchase assignments (which it shall be
deemed to have purchased from each seller of an assignment simultaneously upon the receipt by such seller of its portion of such payment) of the Aggregate Amounts Due to the other Lenders so that all such recoveries of Aggregate Amounts Due shall be
shared by all Lenders in proportion to the Aggregate Amounts Due to them; provided that (A) if all or part of such proportionately greater payment received by such purchasing Lender is thereafter recovered from such Lender upon the bankruptcy
or reorganization of Company or otherwise, those purchases shall be rescinded and the purchase prices paid for such assignments shall be returned to such purchasing Lender ratably to the extent of such recovery, but without interest and (B) the
foregoing provisions shall not apply to (1) any payment made by Company pursuant to and in accordance with the express terms of this Agreement or (2) any payment obtained by a Lender as consideration for the assignment (other than an assignment
pursuant to this subsection 10.5) of or the sale of a participation in any of its Obligations to any Eligible Assignee or Participant pursuant to subsection 10.1B. Company expressly consents to the foregoing arrangement and agrees that any purchaser
of an assignment so purchased may exercise any and all rights of a Lender as to such assignment as fully as if that Lender had complied with the provisions of subsection 10.1B with respect to such assignment. In order to further evidence such
assignment (and without prejudice to the effectiveness of the assignment provisions set forth above), each purchasing Lender and each selling Lender agree to enter into an Assignment Agreement at the request of a selling Lender or a purchasing
Lender, as the case may be, in form and substance reasonably satisfactory to each such Lender. 
  

	 	10.6	Amendments and Waivers 

  
 No amendment, modification, termination or waiver of any provision of this Agreement or of the Notes, and no consent to any departure by
Company therefrom, shall in any event be effective without the written concurrence of Requisite Lenders; provided that no such amendment, modification, termination, waiver or consent shall, without the consent of: 
  
 (a) each Lender with Obligations directly affected (whose
consent shall be sufficient for any such amendment, modification, termination or waiver without the consent of Requisite Lenders) (1) reduce the principal amount of any Loan, (2) postpone the date or reduce the amount of any scheduled payment (but
not prepayment) of principal of any Loan, (3) postpone the date on which any interest or any fees are payable, (4) decrease the interest rate borne by any Loan (other than any waiver of any increase in the interest rate applicable to any of the

  

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Loans pursuant to subsection 2.2E) or the amount of any fees payable hereunder (other than any waiver of any increase in the fees applicable to Letters of
Credit pursuant to subsection 3.2 following an Event of Default) including any change in the definition of “Consolidated Pricing Leverage Ratio”, (5) reduce the amount or postpone the due date of any amount payable in respect of any Letter
of Credit, (6) extend the expiration date of any Letter of Credit beyond the Revolving Loan Commitment Termination Date, (7) extend the Revolving Commitment Termination Date or (8) change in any manner the obligations of Revolving Lenders relating
to the purchase of participations in Letters of Credit; 
  
 (b) each Lender, (1) change in any manner the definition of “Class” or the definition of “Pro Rata Share” or the definition of “Requisite Class Lenders” or the definition of
“Requisite Lenders” (except for any changes resulting solely from an increase in the aggregate amount of the Commitments approved by Requisite Lenders), (2) change in any manner any provision of this Agreement that, by its terms, expressly
requires the approval or concurrence of all Lenders, (3) increase the maximum duration of Interest Periods permitted hereunder, (4) release any Lien granted in favor of Administrative Agent with respect to all or substantially all of the Collateral
or release all or substantially all of the Subsidiary Guarantors from their obligations under the Subsidiary Guaranty, in each case other than in accordance with the terms of the Loan Documents or (5) change in any manner or waive the provisions
contained in subsection 2.4D, subsection 8.1, subsection 10.5 or this subsection 10.6. 
  
 In addition, no amendment, modification, termination or waiver of any provision (i) of any Note shall be effective without the written
concurrence of the Lender which is the holder of that Note, (ii) of subsection 2.1A(iii) or of any other provision of this Agreement relating to the Swing Line Loan Commitment or the Swing Line Loans shall be effective without the written
concurrence of Swing Line Lender, (iii) of Section 3 shall be effective without the written concurrence of Administrative Agent and, with respect to the purchase of participations in Letters of Credit, without the written concurrence of Issuing
Lender, (iv) of Section 9 or of any other provision of this Agreement which, by its terms, expressly requires the approval or concurrence of Administrative Agent shall be effective without the written concurrence of Administrative Agent, (v) of
subsection 2.4 that has the effect of changing any voluntary or mandatory prepayments, or Commitment reductions applicable to a Class in a manner that disproportionately disadvantages such Class relative to any other Class shall be effective without
the written concurrence of Requisite Class Lenders of such affected Class (it being understood and agreed that any amendment, modification, termination or waiver of any such provision which only postpones or reduces any voluntary or mandatory
prepayment, or Commitment reduction from those set forth in subsection 2.4 with respect to one Class but not any other Class shall be deemed to disproportionately disadvantage such one Class but not to disproportionately disadvantage any such other
Class for purposes of this clause (v)), (vi) that increases the amount of a Commitment of a Lender shall be effective without the consent of such Lender, and (vii) that increases the maximum amount of Letters of Credit shall be effective without the
consent of Revolving Lenders constituting Requisite Class Lenders. 
  

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 Administrative Agent may, but shall have no obligation to, with the concurrence of any
Lender, execute amendments, modifications, waivers or consents on behalf of that Lender. Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on Company in
any case shall entitle Company to any other or further notice or demand in similar or other circumstances. Any amendment, modification, termination, waiver or consent effected in accordance with this subsection 10.6 shall be binding upon each Lender
at the time outstanding, each future Lender and, if signed by Company, on Company. 
  

	 	10.7	Independence of Covenants 

  
 All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would not result in a default under subsection 7.6 shall not avoid the occurrence of an Event of Default or Potential Event of Default if such action is taken or condition exists. 
  

	 	10.8	Notices; Effectiveness of Signatures 

  
 Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given shall be in
writing and may be personally served, or sent by telefacsimile or United States mail or courier service and shall be deemed to have been given when delivered in person or by courier service, upon receipt during normal business hours on a Business
Day of telefacsimile in complete and legible form, or three Business Days after depositing it in the United States mail (certified or registered if any such notice relates to non-compliance with the terms hereof) with postage prepaid and properly
addressed; provided that notices to Administrative Agent, Swing Line Lender and Issuing Lender shall not be effective until received. For the purposes hereof, the address of each party hereto shall be as set forth under such party’s name
on the signature pages hereof or (i) as to Company and Administrative Agent, such other address as shall be designated by such Person in a written notice delivered to the other parties hereto and (ii) as to each other party, such other address as
shall be designated by such party in a written notice delivered to Administrative Agent. 
  
 Loan Documents and notices under the Loan Documents may be transmitted and/or signed by telefacsimile. The effectiveness of any such
documents and signatures shall, subject to applicable law, have the same force and effect as an original copy with manual signatures and shall be binding on all Loan Parties, Administrative Agent and Lenders. Administrative Agent may also require
that any such documents and signature be confirmed by a manually-signed copy thereof; provided, however, that the failure to request or deliver any such manually-signed copy shall not affect the effectiveness of any facsimile document
or signature. 
  
 Notwithstanding the foregoing,
Company agrees that Administrative Agent may make any material delivered by Company to Administrative Agent, as well as any amendments, waivers, consents and other written information, documents, instruments and other materials relating to Company,
any of its Subsidiaries, or any other materials or matters relating to the Loan Documents or any of the transactions contemplated hereby that Administrative Agent is required or authorized pursuant to the terms hereof or of any Loan Document to
provide to 

  

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Lenders (collectively, the “Communications”) available to Lenders by posting such notices on a Platform. Company acknowledges that (a) the
distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution, (b) a Platform is provided “as is” and “as available” and (c)
neither Administrative Agent nor any of its Affiliates warrants the accuracy, completeness, timeliness, sufficiency, or sequencing of the Communications posted on a Platform. Administrative Agent and its Affiliates expressly disclaim with respect to
a Platform any liability for errors in transmission, incorrect or incomplete downloading, delays in posting or delivery, or problems accessing the Communications posted on such Platform and any liability for any losses, costs, expenses or
liabilities that may be suffered or incurred in connection with such Platform. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement
of third party rights or freedom from viruses or other code defects, is made by Administrative Agent or any of its Affiliates in connection with any Platform. 
  

Each Lender agrees that notice to it (as provided in the next sentence) specifying that any Communication has been posted to a Platform
shall for purposes of this Agreement constitute effective delivery to such Lender of such information, documents or other materials comprising such Communication. Each Lender agrees (1) to notify, on or before the date such Lender becomes a party to
this Agreement, Administrative Agent in writing of such Lender’s e-mail address to which a notice may be sent (and from time to time thereafter to ensure that Administrative Agent has on record an effective e-mail address for such Lender) and
(2) that any notice may be sent to such e-mail address. 
  

	 	10.9	Survival of Representations, Warranties and Agreements 

  

A. All representations, warranties and agreements made herein shall survive the execution and delivery of this Agreement and the
making of the Loans and the issuance of the Letters of Credit hereunder. 
  
 B. Notwithstanding anything in this Agreement or implied by law to the contrary, the agreements of Company set forth in subsections 2.6D, 2.7, 10.2, 10.3, 10.4, 10.17 and 10.18 and the agreements of Lenders set
forth in subsections 9.2C, 9.4, 10.5 and 10.18 shall survive the payment of the Loans, the cancellation or expiration of the Letters of Credit and the reimbursement of any amounts drawn thereunder, and the termination of this Agreement. 

 

	 	10.10 	Failure or Indulgence Not Waiver; Remedies Cumulative 

  
 No failure or delay on the part of an Agent or any Lender in the exercise of any power, right or privilege hereunder or under any other
Loan Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise
thereof or of any other power, right or privilege. All rights and remedies existing under this Agreement and the other Loan Documents are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
  

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	 	10.11	 Marshalling; Payments Set Aside 

  
 Neither any Agent nor any Lender shall be under any obligation to marshal any assets in favor of Company or any other party or against or
in payment of any or all of the Obligations. To the extent that Company makes a payment or payments to Administrative Agent or Lenders (or to Administrative Agent for the benefit of Lenders), or Agents or Lenders enforce any security interests or
exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a
trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all
Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred. 
  

	 	10.12	 Severability 

  
 In case any provision in or obligation under this Agreement or the Notes shall be invalid, illegal or unenforceable in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 
  

	 	10.13	 Obligations Several; Independent Nature of Lenders’ Rights; Damage Waiver 

  
 The obligations of Lenders hereunder are several and no
Lender shall be responsible for the obligations or Commitments of any other Lender hereunder. Nothing contained herein or in any other Loan Document, and no action taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders,
or Lenders and Company, as a partnership, an association, a Joint Venture or any other kind of entity. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt, and, subject to subsection 9.6, each Lender
shall be entitled to protect and enforce its rights arising out of this Agreement and it shall not be necessary for any other Lender to be joined as an additional party in any proceeding for such purpose. 
  
 To the extent permitted by law, Company shall not assert,
and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with or as a result of this Agreement
(including, without limitation, subsection 2.1C hereof), any other Loan Document, any transaction contemplated by the Loan Documents, any Loan or the use of proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with the Loan Documents or the transactions contemplated thereby.

  

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	 	10.14	 Release of Security Interest or Subsidiary Guaranty 

  
 Upon the proposed sale or other disposition of any Collateral to any Person (other than an Affiliate of
Company) that is permitted by this Agreement or to which Requisite Lenders have otherwise consented, or the sale or other disposition of all of the Capital Stock of a Subsidiary Guarantor to any Person (other than an Affiliate of Company) that is
permitted by this Agreement or to which Requisite Lenders have otherwise consented, for which a Loan Party desires to obtain a security interest release or a release of the Subsidiary Guaranty from Administrative Agent, such Loan Party shall deliver
an Officer’s Certificate (i) stating that the Collateral or the Capital Stock subject to such disposition is being sold or otherwise disposed of in compliance with the terms hereof and (ii) specifying the Collateral or Capital Stock being sold
or otherwise disposed of in the proposed transaction. Upon the receipt of such Officer’s Certificate, Administrative Agent shall, at such Loan Party’s expense, so long as Administrative Agent (a) has no reason to believe that the facts
stated in such Officer’s Certificate are not true and correct and (b), if the sale or other disposition of such item of Collateral or Capital Stock constitutes an Asset Sale, shall have received evidence satisfactory to it that arrangements
satisfactory to it have been made for delivery of the Net Asset Sale Proceeds if and as required by subsection 2.4, execute and deliver such releases of its security interest in such Collateral or such Subsidiary Guaranty, as may be reasonably
requested by such Loan Party. 
  

	 	10.15	 Applicable Law 

  
 THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN ANY SUCH LOAN DOCUMENT), AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE APPLICATION OF ANOTHER LAW. 
  

	 	10.16	 Construction of Agreement; Nature of Relationship 

  

Each of the parties hereto acknowledges that (i) it has been represented by counsel in the negotiation and documentation of the terms
of this Agreement, (ii) it has had full and fair opportunity to review and revise the terms of this Agreement, (iii) this Agreement has been drafted jointly by all of the parties hereto, and (iv) neither Administrative Agent nor any Lender or other
Agent has any fiduciary relationship with or duty to Company arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between Administrative Agent, the other Agents and Lenders, on one hand, and
Company, on the other hand, in connection herewith or therewith is solely that of debtor and creditor. Accordingly, each of the parties hereto acknowledges and agrees that the terms of this Agreement shall not be construed against or in favor of
another party. 
  

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	 	10.17	 Consent to Jurisdiction and Service of Process 

  
 ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST COMPANY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY
OBLIGATIONS HEREUNDER AND THEREUNDER, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, COMPANY, FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, IRREVOCABLY 
  
 (I) ACCEPTS
GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; 
  
 (II) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; 
  
 (III) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO COMPANY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SUBSECTION 10.8; 
  
 (IV) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (III) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION
OVER COMPANY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; 
  
 (V) AGREES THAT LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST COMPANY
IN THE COURTS OF ANY OTHER JURISDICTION; AND 
  
 (VI) AGREES THAT THE PROVISIONS OF THIS SUBSECTION 10.17 RELATING TO JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO THE FULLEST EXTENT PERMISSIBLE UNDER NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1402 OR OTHERWISE.

  

	 	10.18	 Waiver of Jury Trial 

  
 EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. The scope of this
waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this transaction, including contract claims, tort 

  

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claims, breach of duty claims and all other common law and statutory claims. Each party hereto acknowledges that this waiver is a material inducement to
enter into a business relationship, that each has already relied on this waiver in entering into this Agreement, and that each will continue to rely on this waiver in their related future dealings. Each party hereto further warrants and represents
that it has reviewed this waiver with its legal counsel and that it knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR
IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SUBSECTION 10.18 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court. 
  

	 	10.19	 Confidentiality 

  
 Each Lender shall hold all non-public information obtained pursuant to the requirements of this Agreement that has been identified in
writing as confidential by Company in accordance with such Lender’s customary procedures for handling confidential information of this nature, it being understood and agreed by Company that in any event a Lender may make disclosures (a) to its
and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such
information and instructed to keep such information confidential), (b) to the extent requested by any Government Authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other
party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this subsection 10.19, to (i) any Eligible Assignee of or participant in, or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any direct or
indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s or prospective counterparty’s professional advisor) to any credit derivative transaction relating to obligations of Company, (g) with the
consent of Company, (h) to the extent such information (i) becomes publicly available other than as a result of a breach of this subsection 10.19 or (ii) becomes available to Administrative Agent or any Lender on a nonconfidential basis from a
source other than Company or (i) to the National Association of Insurance Commissioners or any other similar organization or any nationally recognized rating agency that requires access to information about a Lender’s or its Affiliates’
investment portfolio in connection with ratings issued with respect to such Lender or its Affiliates and that no written or oral communications from counsel to an Agent and no information that is or is designated as privileged or as attorney work
product may be disclosed to any Person unless such Person is a Lender or a Participant hereunder; provided that, unless specifically prohibited by applicable law or court order, each Lender shall notify Company of any request by any
Government Authority 

  

 118 

 
or representative thereof (other than any such request in connection with any examination of the financial condition of such Lender by such Government
Authority) for disclosure of any such non-public information prior to disclosure of such information; and provided, further that in no event shall any Lender be obligated or required to return any materials furnished by Company or any
of its Subsidiaries. In addition, Administrative Agent and Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry, and service providers
to Administrative Agent and Lenders, and Administrative Agent or any of its Affiliates may place customary “tombstone” advertisements relating hereto in publications (including publications circulated in electronic form) of its choice at
its own expense. 
  

	 	10.20	 Counterparts; Effectiveness 

  
 This Agreement and any amendments, waivers, consents or supplements hereto or in connection herewith may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may
be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Agreement shall become effective upon the execution of a counterpart hereof by each
of the parties hereto. 
  

	 	10.21	 Successor Issuing Lender 

  
 Issuing Lender may resign at any time by giving written notice thereof to Administrative Agent (who shall promptly notify Lenders thereof)
and Company, such resignation to be effective on the date that is the later of (i) the thirtieth day following delivery of such written notice to Administrative Agent and Company and (ii) the appointment of and acceptance by a successor Issuing
Lender, as provided below; provided, however, that to the extent Administrative Agent fails to appoint a successor Issuing Lender that accepts such appointment within such time, Issuing Lender may appoint a Revolving Lender as successor
Issuing Lender. Unless Issuing Lender is Administrative Agent, Issuing Lender may be removed at any time with or without cause by an instrument or concurrent instruments in writing delivered to Company and Administrative Agent and signed by
Revolving Lenders constituting Requisite Class Lenders, such removal to become effective immediately upon the appointment of and acceptance by a successor Issuing Lender, as provided below. Upon any such notice of resignation or removal,
Administrative Agent shall have the right, upon five Business Days’ notice to Company, to appoint a successor Issuing Lender. Any appointment of a successor Issuing Lender, whether by Administrative Agent or Issuing Lender, shall be subject to
consent of Company and Administrative Agent, which, in either case, shall not be unreasonably withheld or delayed. Upon the acceptance of any appointment as Issuing Lender hereunder by a successor Issuing Lender, and consent of Company and
Administrative Agent, that successor Issuing Lender shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Issuing Lender and the retiring or removed Issuing Lender shall be
discharged from its duties and obligations under this Agreement; provided that, anything contained in this subsection 10.21 or otherwise in any of the Loan Documents to the contrary 

  

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notwithstanding, the resigning or removed Issuing Lender shall continue to have all rights and obligations of Issuing Lender, with respect to any Letter of
Credit issued prior to the effective date of the appointment of a successor Issuing Lender until the cancellation or expiration of such Letter of Credit and the reimbursement of any amounts drawn thereunder. 
  

	 	10.22	 USA Patriot Act 

  
 Each Lender hereby notifies Company that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies Loan Parties, which information includes the name and address of each Loan Party and other information that will allow such
Lender to identify such Loan Party in accordance with the Act. 
  
 [Remainder of page intentionally left blank] 
  

 120 

  
 IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above. 
  
 COMPANY: 
  

			
	 RUTH’S CHRIS STEAK HOUSE, INC.
  

		
	By:	 	/s/    THOMAS J. PENNISON,
JR.        
	 Name: Thomas J. Pennison, Jr.
 Title: Secretary/Chief Financial Officer
  

 
 Notice Address:
 3321 Hessmer Ave.
 Mefairie, LA 70002

  
  
  
 LENDERS: 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 individually and as Administrative Agent
  

		
	By:	 	/s/    REGINALD M. GOLDSMITH, III, CFA
	 Name: Reginald M. Goldsmith, III, CFA
 Title: Vice President
  
  
 Notice Address:
 1445 Ross Avenue Suite 4560
 Dallas, Texas 75262
 ATTN: Reggie Goldsmith
 Facsimile: (214) 721-6422

  

					
	 	 	S-1	 	CREDIT AGREEMENT

  

			
	 JPMORGAN CHASE BANK, N.A.
  

		
	By:	 	/s/    LYNN RICHARD        
	 	 	 Name: Lynn Richard
 Title: First Vice President
  
  

			
	
	Notice Address:

			
	 Lynn Richard
 JPMorgan Chase Bank,
N.A.
 P.O. Box 60279
 New Orleans, LA
70160-0279

  

					
	 	 	 	 	CREDIT AGREEMENT

			
	FLEET NATIONAL BANK
		
	By:	 	/s/    CRISTIN M. O’HARA
	 Name: Cristin M. O’Hara
 Title: Director
  
  
 Notice Address:
 100 Federal Street
 MA5 100-09-01
 Boston, MA 02110

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