Document:

Exhibit 10.1

 

FIRST AMENDED AND RESTATED SECURITY AGREEMENT

 

THIS FIRST AMENDED
AND RESTATED SECURITY AGREEMENT (this “Agreement”), dated as of December 18, 2014, is made by and among
Atrinsic, Inc., a Delaware corporation (the “Grantor”), Iroquois Master Fund Ltd and Hudson Bay Master Fund
Ltd (each a “Secured Party” and together the “Secured Parties) and amends and restates in its entirety
the Security Agreement dated as of February 11, 2014 by and among the Grantor and the Secured Parties.

 

WHEREAS, the Grantor
has issued to each Secured Party (i) a secured promissory note in the principal amount of Eighty-Seven Thousand Five Hundred
U.S. Dollars (U.S. $87,500) dated February 11, 2014 and (ii) a secured promissory note in the principal amount of Forty-Five
Thousand U.S. Dollars (U.S. $45,000) dated August 15, 2014 (such notes, as amended or modified from time to time, the “Outstanding
Notes”).

 

WHEREAS, each Secured Party has made
an additional loan to the Grantor and, in that connection, the Grantor has issued to each Secured Party a secured promissory note
in the principal amount Seventy-Five Thousand U.S. Dollars (U.S. $75,000) dated as of even date herewith (such notes, as
amended or modified from time to time, the “New Notes”).

 

WHEREAS, the Grantor and the
Secured Parties have agreed to execute and deliver this Agreement, among other things, to secure the obligations of the Grantor
under the Outstanding Notes and the New Notes (hereinafter collectively the “Notes”).

 

NOW THEREFORE,
The Grantor and the Secured Parties hereby agree as follows:

 

SECTION 1.      Definitions;
Interpretation.

 

(a)          As
used in this Agreement, the following terms shall have the following meanings:

 

“Collateral”
means all assets of the Grantor including without limitation, the property described on Exhibit A attached hereto and all
Negotiable Collateral and Intellectual Property to the extent not described on Exhibit A.

 

“Copyrights”
means any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship
and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now
or hereafter existing, created, acquired or held.

 

“Event of Default”
has the meaning set forth in the Notes.

 

“Intellectual
Property” means all of Grantor’s right, title, and interest in and to the following, except to the extent any security
interest hereunder would cause any application for a Trademark to be deemed invalidated, canceled or abandoned due to the grant
and/or enforcement of such security interest, including, without limitation, all U.S. trademark applications that are based on
an intent-to-use, unless and until such time that the grant and/or enforcement of the security interest will not affect the status
or validity of such trademark:

 

    	 

    	 

    

 

		(a)	Copyrights, Trademarks and Patents;

 

		(b)	and all trade secrets, and any and all intellectual property
rights in computer software and computer software products now or hereafter existing, created, acquired or held;

 

		(c)	and all design rights which may be available to Grantor
now or hereafter existing, created, acquired or held;

 

		(d)	and all claims for damages by way of past, present and
future infringement of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages
for said use or infringement of the intellectual property rights identified above;

 

		(e)	licenses or other rights to use any of the Copyrights,
Patents or Trademarks, and all license fees and royalties arising from such use to the extent permitted by such license or rights;

 

		(f)	amendments, renewals and extensions of any of the Copyrights,
Trademarks or Patents; and

 

		(g)	proceeds and products of the foregoing, including without
limitation all payments under insurance or any indemnity or warranty payable in respect of any of the foregoing.

 

“Lien”
means any mortgage, deed of trust, pledge, security interest, assignment, deposit arrangement, charge or encumbrance, lien, or
other type of preferential arrangement.

 

“Obligations”
means the indebtedness, liabilities and other obligations of the Grantor to the Secured Parties under the Notes including without
limitation, the unpaid principal of the Notes, all interest accrued thereon and any other amounts payable by the Grantor to the
Secured Parties thereunder or in connection therewith.

 

“Patents”
means all patents, patent applications and like protections, including, without limitation, improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

 

“Permitted Liens”
mean: (i) Liens in favor of the Secured Parties in respect of the Obligations hereunder; (ii) Liens for taxes, fees, assessments
or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and
which are adequately reserved for in accordance with GAAP; (iii) Liens of materialmen, mechanics, warehousemen, carriers or employees
or other like Liens arising in the ordinary course of business and securing obligations either not delinquent or being contested
in good faith by appropriate proceedings; (iv) Liens consisting of deposits or pledges to secure the payment of worker’s
compensation, unemployment insurance or other social security benefits or obligations, or to secure the performance of bids, trade
contracts, leases, public or statutory obligations, surety or appeal bonds or other obligations of a like nature incurred in the
ordinary course of business; (v) easements, rights of way, servitudes or zoning or building restrictions and other minor encumbrances
on real property and irregularities in the title to such property which do not in the aggregate materially impair the use or value
of such property or risk the loss or forfeiture of title thereto; and (vi) Liens upon or in any equipment now or hereafter acquired
or held by the Grantor to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing
or refinancing the acquisition of such equipment, provided that the Lien is confined solely to the equipment so acquired and accessions
thereon and proceeds thereof.

 

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“Person”
means an individual, corporation, partnership, joint venture, trust, unincorporated organization, governmental agency or authority,
or any other entity of whatever nature.

 

“Trademarks”
means any trademark and service mark rights, whether registered or not, applications to register and registrations of the same
and like protections, and the parts of the goodwill of the business connected with the use of and symbolized by such marks.

 

“UCC”
means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York.

 

(b)          Where
applicable and except as otherwise defined herein, terms used in this Agreement shall have the meanings assigned to them in the
UCC.

 

(c)          In
this Agreement, (i) the meaning of defined terms shall be equally applicable to both the singular and plural forms of the
terms defined; (ii) the captions and headings are for convenience of reference only and shall not affect the construction
of this Agreement; (iii) the words “hereof,” “herein,” “hereto,” “hereunder” and
the like mean and refer to this Agreement as a whole and not merely to the specific Article, Section, subsection, paragraph or
clause in which the respective word appears; (iv) the words “including,” “includes” and “include”
shall be deemed to be followed by the words “without limitation;” and (v) the term “or” shall not be limiting.

 

SECTION 2.      Security
Interest.

 

(a)          Subject
to the Permitted Liens, as security for the payment and performance of the Obligations, the Grantor hereby pledges, assigns and
grants to the Secured Parties a security interest in all of the Grantor’s right, title and interest in, to and under all
of the Collateral (other than as set forth in Section 2(b) hereof).

 

(b)          Notwithstanding
the foregoing, except for fixtures (to the extent covered by Article 9 of the UCC), such grant of a security interest shall
not extend to, and the term “Collateral” shall not include, any asset which would be real property under the law of
the jurisdiction in which it is located.

 

(c)          This
Agreement shall create a continuing security interest in the Collateral that shall remain in effect until terminated in accordance
with the provisions hereof.

 

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SECTION 3.     Financing
Statements, Etc. The Grantor hereby authorizes each Secured Party to file (with a copy thereof to be provided to the Grantor
contemporaneously therewith), at any time and from time to time thereafter, all financing statements, financing statement assignments,
continuation financing statements, and UCC filings, in form reasonably satisfactory to such Secured Party. The Grantor shall execute
and deliver and shall take all other action, as any Secured Party may reasonably request, to perfect and continue perfected, maintain
the priority of or provide notice of the security interest of such Secured Party in the Collateral (subject to the terms hereof)
and to accomplish the purposes of this Agreement. 

 

SECTION 4.     Representations
and Warranties. The Grantor represents and warrants to the Secured Parties that:

 

(a)          Grantor
is a business entity duly formed, validly existing and in good standing under the law of the jurisdiction of its organization and
has all requisite power and authority to execute, deliver and perform its obligations under this Agreement.

 

(b)          The
execution, delivery and performance by the Grantor of this Agreement has been duly authorized by all necessary corporate action
of the Grantor, and this Agreement constitutes the legal, valid and binding obligation of the Grantor, enforceable against the
Grantor in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and other laws of general application affecting enforcement of creditors’ rights generally, as limited by laws
relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)          Except
for the filing of appropriate financing statements, no authorization, consent, approval, license, exemption of, or filing or registration
with, any governmental authority or agency, or approval or consent of any other Person, is required for the due execution, delivery
or performance by the Grantor of this Agreement.

 

(d)          This
Agreement creates a security interest that is enforceable against the Collateral in which the Grantor now has rights and will create
a security interest that is enforceable against the Collateral in which the Grantor hereafter acquires rights at the time the Grantor
acquires any such rights.

 

(e)          The
Grantor has the right and power to grant the security interests in the Collateral to the Secured Parties and the Grantor is the
sole and complete owner of the Collateral, free from any Lien other than the Permitted Liens.

 

SECTION 5.     Covenants
of the Grantor. Until this Agreement has terminated in accordance with the terms hereof, the Grantor agrees to do the following:

 

(a)          The
Grantor shall give prompt written notice to the Secured Parties (and in any event not later than ten (10) days following any change
described below in this subsection) of: (i) any change in the Grantor’s name; (ii) any changes in the Grantor’s identity
or structure in any manner which might make any financing statement filed hereunder incorrect or misleading; or (iii) any
change in jurisdiction of organization; provided that the Grantor shall not locate any Collateral outside of the United
States nor shall the Grantor change its jurisdiction of organization to a jurisdiction outside of the United States.

 

(b)          The
Grantor shall not surrender or lose possession of, sell, lease, rent or otherwise dispose of or transfer any of the Collateral
or any right or interest therein, except in the ordinary course of business consistent with past practice and except to the extent
of equipment that is obsolete or no longer useful to its business.

 

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(c)          The
Grantor shall keep the Collateral free of all Liens except the Permitted Liens.

 

SECTION 6.     Collection
of Accounts. The Grantor shall endeavor in the first instance diligently to collect all amounts due or to become due on or
with respect to the accounts and other rights to payment. 

 

SECTION 7.    Authorization;
Secured Parties Appointed Attorney-in-Fact. The Secured Parties shall have the right, to, in the name of the Grantor, or in
the name of any Secured Party or otherwise, upon notice to, but without the requirement of assent by the Grantor, and the Grantor
hereby constitutes and appoints the Secured Parties (and any employees or agents designated by a Secured Party) as the Grantor’s
true and lawful attorney-in-fact, with full power and authority to: (i) assert, adjust, sue for, compromise or release any claims
under any policies of insurance; and (ii), execute any and all such other documents and instruments, and do any and all acts and
things for and on behalf of the Grantor, that such Secured Parties may deem necessary or advisable to maintain, protect, realize
upon and preserve the Collateral and each Secured Party’s security interests therein and to accomplish the purposes of this
Agreement. The Secured Parties agree that, except upon and during the continuance of an Event of Default, they shall not exercise
the power of attorney, or any rights granted to the Secured Parties under this Section 7. The foregoing power of attorney is coupled
with an interest and is irrevocable so long as the Obligations have not been indefeasibly paid and performed in full and the commitments
not terminated. The Grantor hereby ratifies, to the extent permitted by law, all that the Secured Parties shall lawfully and in
good faith do or cause to be done by virtue of and in compliance with this Section 7.

 

SECTION 8.     Remedies.

 

(a)          Upon
the occurrence and during the continuance of an Event of Default, the Secured Parties shall have, in addition to all other rights
and remedies granted to the Secured Parties in this Agreement or the Notes, all rights and remedies of a secured party under the
UCC and other applicable laws. Without limiting the generality of the foregoing, upon the occurrence and during the continuance
of an Event of Default, the Secured Parties may sell, resell, lease, use, assign, license, sublicense, transfer or otherwise dispose
of any or all of the Collateral in its then condition or following any commercially reasonable preparation or processing (utilizing
in connection therewith any of Grantor’s assets, without charge or liability to any Secured Party therefor) at public or
private sale, by one or more contracts, in one or more parcels, at the same or different times, for cash or credit, or for future
delivery without assumption of any credit risk, all as the Secured Parties deem advisable; provided, however, that the Grantor
shall be credited with the net proceeds of sale only when such proceeds are finally collected by the Secured Parties. Each Secured
Party shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase
the whole or any part of the Collateral so sold, free of any right or equity of redemption, which right or equity of redemption
the Grantor hereby releases, to the extent permitted by law. The Grantor hereby agrees that the sending of notice by ordinary mail,
postage prepaid, to the address of the Grantor set forth herein or subsequent address that the Grantor provides to the Secured
Parties in writing, of the place and time of any public sale or of the time after which any private sale or other intended disposition
is to be made, shall be deemed reasonable notice thereof if such notice is sent ten (10) business days prior to the date of such
sale or other disposition or the date on or after which such sale or other disposition may occur.

 

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(b)          The
cash proceeds actually received from the sale or other disposition or collection of the Collateral, and any other amounts received
in respect of the Collateral the application of which is not otherwise provided for herein shall be applied first, to the
payment of the reasonable costs and expenses of the Secured Parties in exercising or enforcing their rights hereunder and in collecting
or attempting to collect any of the Collateral, and to the payment of all other amounts payable to the Secured Parties pursuant
to Section 12 hereof; and second, to the payment of the Obligations. Any surplus thereof that exists after payment and performance
in full of the Obligations shall be promptly paid over to the Grantor or otherwise disposed of in accordance with the UCC or other
applicable law. The Grantor shall remain liable to the Secured Parties for any deficiency that exists after any sale or other disposition
or collection of the Collateral.

 

SECTION 9.      Certain
Waivers. 

 

(a)          The
Grantor waives, to the fullest extent permitted by law: (i) any right of redemption with respect to the Collateral, whether
before or after sale hereunder, and all rights, if any, of marshalling of the Collateral or other collateral or security for the
Obligations; (ii) any right to require the Secured Parties to: (A) proceed against any Person, (B) exhaust any other
collateral or security for any of the Obligations, or (C) except as provided herein or in any of the Notes, make or give any
presentments, demands for performance, notices of nonperformance, protests, notices of protests or notices of dishonor in connection
with any of the Collateral; and (iii) all claims, damages and demands against the Secured Parties arising out of the repossession,
retention, sale or application of the proceeds of any sale of the Collateral.

 

SECTION 10.    Notices.
All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered personally
or sent by nationally-recognized overnight courier or by registered or certified mail, postage prepaid, return receipt requested
or by facsimile, with confirmation as provided above addressed as follows:

 

If to Grantor:

 

Atrinsic, Inc.

65 Atlantic
Avenue

Boston, Massachusetts
02110

Attention:
Chief Executive Officer

 

With copies to:

 

Morse, Zelnick, Rose & Lander LLP

825 Third Avenue, 16th Floor

New York, NY 10022

Attention: Kenneth S. Rose, Esq.

Fax: 212-208-6809

 

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If to the Secured Parties:

 

Hudson Bay Master Fund Ltd. 

777 Third Avenue, 30th
Floor

New York, NY 10017

Attn.: Yoav Roth / George Antonopoulos

 

and

 

Iroquois Capital Management LLC

641 Lexington Avenue, 26th Floor

New York, New York 10022

Attn.: Mitchell R. Kulick, Esq.,
General Counsel

 

With a copy
to:

 

Michael A. Adelstein, Esq.

Greenberg Traurig, LLP

MetLife Building, 200 Park Avenue

New York, NY 10166

 

SECTION 11.    No
Waiver; Cumulative Remedies. No failure on the part of any Secured Party to exercise, and no delay in exercising, any right,
remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right,
remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges
that may otherwise be available to any Secured Party.

 

SECTION 12.    Costs
and Expenses. The Grantor agrees to pay all reasonable costs and expenses of the Secured Parties, in connection with the enforcement
and preservation of any rights or interests under, this Agreement and the protection, sale or collection of, or other realization
upon, any of the Collateral, including all reasonable expenses of taking, collecting, holding, sorting, handling, preparing for
sale, selling or the like and other such expenses of sales and collections of the Collateral. 

 

SECTION 13.   Binding
Effect. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Grantor, the Secured Parties
and their respective successors and assigns.

 

SECTION 14.    Governing
Law. This Agreement shall be governed by and construed under the laws of the State of New York without regard to principles
of conflict of laws.

 

SECTION 15.   Entire
Agreement; Amendment. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof
and shall not be amended except by the written agreement of the Grantor and the Secured Parties. Notwithstanding the foregoing,
this Agreement may not be amended and any term hereunder may not be waived with respect to any Secured Party without the written
consent of the Secured Parties.

 

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SECTION 16.    Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be valid, legal and enforceable under
all applicable laws and regulations. If, however, any provision of this Agreement shall be invalid, illegal or unenforceable under
any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum
requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be invalid, illegal or unenforceable
only to the extent of such invalidity, illegality or limitation on enforceability without affecting the remaining provisions of
this Agreement, or the validity, legality or enforceability of such provision in any other jurisdiction.

 

SECTION 17.   Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

SECTION 18.    Termination.
Upon the payment and performance in full of all Obligations, this Agreement shall terminate and the Secured Parties shall promptly,
at the cost of the Grantor, execute and deliver to the Grantor such documents and instruments reasonably requested by the Grantor
as shall be necessary to evidence termination of all security interests given by the Grantor to the Secured Parties hereunder;
provided, however, that the obligations of the Grantor under Section 12 hereof shall survive such termination.

 

SECTION 19.   Pari
Passu. Each Secured Party hereby understands, acknowledges and agrees its security interest in the Collateral is pari passu
with the other Secured Party.

 

[Signature Page on the Following Page]

 

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IN WITNESS WHEREOF,
the parties hereto have duly executed this Agreement, as of the date first above written.

 

	 	GRANTOR:
	 	 
	 	ATRINSIC, INC.
	 	 
	 	By:	 
	 	Edward Gildea,
	 	Chief Executive Officer
	 	 	 
	 	SECURED PARTIES:
	 	 
	 	IROQUOIS MASTER FUND LTD
	 	 
	 	By:	 
	 	Joshua Silverman, Authorized Signatory
	 	 
	 	HUDSON BAY MASTER FUND LTD
	 	 
	 	By:	 
	 	Yoav Roth, Authorized Signatory

 

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EXHIBIT A

 

COLLATERAL DESCRIPTION ATTACHMENT TO FIRST
AMENDED AND RESTATED SECURITY AGREEMENT

 

	DEBTOR	ATRINSIC, INC., a Delaware corporation
	 	 
	SECURED PARTY:	IROQUOIS MASTER FUND LTD
	 	HUDSON BAY MASTER FUND LTD

 

All personal property of Grantor (herein referred to as
“Grantor” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located
including, without limitation:

 

		(a)	all accounts, chattel paper (including tangible and electronic chattel paper), deposit accounts,
documents (including negotiable documents), equipment (including all accessions and additions thereto), general intangibles (including
payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all
goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment
property (including securities and securities entitlements), letter of credit rights, money, and all of Grantor’s books
and records with respect to any of the foregoing, and the computers and equipment containing said books and records; provided that
notwithstanding the foregoing;

 

		(b)	all common law and statutory copyrights and copyright registrations, applications for registration,
now existing or hereafter arising, in the United States of America or in any foreign jurisdiction, obtained or to be obtained on
or in connection with any of the foregoing, or any parts thereof or any underlying or component elements of any of the foregoing,
together with the right to copyright and all rights to renew or extend such copyrights and the right (but not the obligation) of
Secured Parties to sue in their own name and/or in the name of the Debtor for past, present and future infringements of copyright;

 

		(c)	all trademarks, service marks, trade names and service names and the goodwill associated therewith,
together with the right to trademark and all rights to renew or extend such trademarks and the right (but not the obligation) of
Secured Party to sue in their own name and/or in the name of the Debtor for past, present and future infringements of trademark;

 

		(d)	all (i) patents and patent applications filed in the United States Patent and Trademark Office
or any similar office of any foreign jurisdiction, and interests under patent license agreements, including, without limitation,
the inventions and improvements described and claimed therein, (ii) licenses pertaining to any patent whether Debtor is licensor
or licensee, (iii) income, royalties, damages, payments, accounts and accounts receivable now or hereafter due and/or payable under
and with respect thereto, including, without limitation, damages and payments for past, present or future infringements thereof,
(iv) right (but not the obligation) to sue in the name of Debtor and/or in the name of Secured Party for past, present and future
infringements thereof, (v) rights corresponding thereto throughout the world in all jurisdictions in which such patents have been
issued or applied for, and (vi) reissues, divisions, continuations, renewals, extensions and continuations-in-part with respect
to any of the foregoing; and

 

		(e)	any and all cash proceeds and/or non-cash proceeds of any of the foregoing, including, without
limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment. All terms
above have the meanings given to them in the New York Uniform Commercial Code, as amended or supplemented from time to
time.EX 10.1 FirstAmendmenttoCreditAgreement-CarrolsRestaurantGroup

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of December 19, 2014, is by and among CARROLS RESTAURANT GROUP, INC., a Delaware corporation (the “Borrower”), certain Subsidiaries of the Borrower party hereto (collectively, the “Guarantors”), the Lenders party hereto (the “Lenders”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent on behalf of the Lenders under the Credit Agreement (as hereinafter defined) (in such capacity, the “Administrative Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement.

W I T N E S S E T H

WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent are parties to that certain Credit Agreement dated as of May 30, 2012 (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”); 

WHEREAS, the Credit Parties have requested that the Required Lenders amend certain provisions of the Credit Agreement; and

WHEREAS, the Required Lenders are willing to make such amendments to the Credit Agreement, in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I 
AMENDMENTS TO CREDIT AGREEMENT

1.1    Amendment to Definition of Cash Collateral Release Date.  The definition of Cash Collateral Release Date set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Cash Collateral Release Date” shall mean December 19, 2014.

1.2    Amendments to Section 2.22(b)(xii).  Section 2.22(b)(xii) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(xii) Administrative Agent shall have received evidence from the Borrower, demonstrating that, after giving effect to any such Revolving Facility Increase on a Pro Forma Basis, the Borrower will have an Adjusted Leverage Ratio of less than 6.25 to 1.00 recomputed as of the end of the four fiscal quarter period most recently ended for which financial statements are available

1.3    Amendments to Section 5.9.  Section 5.9 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

Section 5.9    Financial Covenants.

Beginning with the first fiscal quarter ending on the date immediately following the Cash Collateral Release Date and for each fiscal quarter thereafter, comply with the following financial covenants:

(a)    Adjusted Leverage Ratio.  The Adjusted Leverage Ratio, calculated as of the last day of each fiscal quarter occurring during the periods set forth below shall be less than or equal to the following:

	
		
	Period
	Ratio

	Closing Date through and including the Fourth Quarter of 2013
	6.00 to 1.00

	First Quarter of 2014 through and including the Third Quarter of 2014
	5.50 to 1.00

	Fourth Quarter of 2014 through and including the Second Quarter of 2015
	6.50 to 1.00

	Third Quarter of 2015 through and including the Fourth Quarter of 2015
	6.25 to 1.00

	First Quarter of 2016 and thereafter
	6.00 to 1.00

(b)    Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio, calculated as of the last day of each fiscal quarter, shall be greater than or equal to (i) 1.20 to 1.00 from the Closing Date through and including the Second Quarter of 2013, (ii) 1.30 to 1.00 from the Third Quarter of 2013 through and including the Third Quarter of 2014, (iii) 1.20 to 1.00 from the Fourth Quarter of 2014 through and including the Second Quarter of 2015, (iv) 1.25 to 1.00 from the Third Quarter of 2015 through and including the Fourth Quarter of 2015 and (v) 1.30 to 1.00 from the First Quarter of 2016 and thereafter.

1.5    Amendments to Article V.  Article V of the Credit Agreement is hereby amended by adding the following new Section 5.15 to the end of such Article:

Section 5.15    Revolver Clean Down.

During each trailing twelve month period during the term of this Agreement, there shall be a period of not less than thirty (30) consecutive days when there are no Revolving Loans outstanding.

1.6    Amendments to Section 7.1(c)(i).  Section 7.1(c)(i) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(i)     Any Credit Party shall fail to perform, comply with or observe any term, covenant or agreement applicable to it contained in Sections 5.1, 5.2(b), 5.4 (to the extent such covenant requires that the Credit Parties and their Subsidiaries preserve, renew and keep in full force and effect their corporate or other formative existence), 5.7, 5.9, 5.13, 5.15 or Article VI hereof; or 

2

ARTICLE II 
CONDITIONS TO EFFECTIVENESS

2.1    Closing Conditions.  This Amendment shall become effective as of the day and year set forth above (the “First Amendment Effective Date”) upon satisfaction of the following conditions (in each case, in form and substance reasonably acceptable to the Administrative Agent):

(a)    Executed Amendment.  The Administrative Agent shall have received a copy of this Amendment duly executed by each of the Credit Parties, the Required Lenders and the Administrative Agent.

(b)    Officer’s Certificate.  The Administrative Agent shall have received a certificate or certificates executed by an Authorized Officer of the Borrower stating that (i) after giving effect to this Amendment, no Default or Event of Default shall exist and (ii) the representations and warranties made by the Credit Parties in the Credit Agreement and in the other Credit Documents and which are contained in any certificate furnished at any time under or in connection with this Amendment shall (x) with respect to representations and warranties that contain a materiality qualification, be true and correct and (y) with respect to representations and warranties that do not contain a materiality qualification, be true and correct in all material respects as if made on and as of the First Amendment Effective Date except for any representation or warranty made as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date.

(c)    Fees and Expenses.  

(i)    The Administrative Agent shall have received from the Borrower, for the account of each Lender that executes and delivers this Amendment (each such Lender, a “Consenting Lender”, and collectively, the “Consenting Lenders”), an amendment fee in an amount equal to 25 basis points on the aggregate Revolving Commitments of such Consenting Lender (prior to giving effect to this Amendment); and

(ii) The Administrative Agent shall have received from the Borrower such other fees and expenses that are payable in connection with the consummation of the transactions contemplated hereby and King & Spalding LLP shall have received from the Borrower payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Amendment.

(d)    Miscellaneous.  All other documents and legal matters in connection with the transactions contemplated by this Amendment shall be reasonably satisfactory in form and substance to the Administrative Agent and its counsel.

ARTICLE III 
MISCELLANEOUS

3.1    Amended Terms.  On and after the First Amendment Effective Date, all references to the Credit Agreement in each of the Credit Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

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3.2    Representations and Warranties of Credit Parties.  Each of the Credit Parties represents and warrants as follows:

(a)    It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

(b)    This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

(c)    No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment.

(d)    The representations and warranties set forth in Article III of the Credit Agreement are true and correct as of the date hereof (except for those which expressly relate to an earlier date).

(e)    After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

(f)    The Security Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Administrative Agent, for the benefit of the Lenders, which security interests and Liens are perfected in accordance with the terms of the Security Documents and prior to all Liens other than Permitted Liens.

(g)    The Credit Party Obligations are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

3.3    Reaffirmation of Credit Party Obligations.  Each Credit Party hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Documents applicable to it and (b) that it is responsible for the observance and full performance of its respective Credit Party Obligations.

3.4    Credit Document.  This Amendment shall constitute a Credit Document under the terms of the Credit Agreement.

3.5    Expenses.  The Borrower agrees to pay all reasonable costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Administrative Agent’s legal counsel.

3.6    Further Assurances.  The Credit Parties agree to promptly take such action, upon the request of the Administrative Agent, as is necessary to carry out the intent of this Amendment.

3.7    Entirety.  This Amendment and the other Credit Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

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3.8    Counterparts; Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.  

3.9    No Actions, Claims, Etc.  As of the date hereof, each of the Credit Parties hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Administrative Agent, the Lenders, or the Administrative Agent’s or the Lenders’ respective officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under the Credit Agreement on or prior to the date hereof.  

3.10    GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

3.11    Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

3.12    Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Sections 9.13 and 9.16 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

BORROWER:    CARROLS RESTAURANT GROUP INC.,
a Delaware corporation

By:  /s/ Paul R. Flanders    
Name:  Paul R. Flanders
Title: VP and CFO

GUARANTORS:    CARROLS CORPORATION,
a Delaware corporation

By:  /s/ Paul R. Flanders    
Name:  Paul R. Flanders
Title:  VP and CFO

CARROLS LLC,
a Delaware limited liability company

By:  /s/ Paul R. Flanders    
Name:  Paul R. Flanders
Title:  VP and CFO

		
	ADMINISTRATIVE AGENT:
	WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as a Lender and as Administrative Agent 

By:  /s/ Stephen Leon                    
Name:  Stephen Leon
Title:  Managing Director

		
	LENDERS:
	Cooperative Centrale Raiffeisen-Boerenleenbank B.A. "Rabobank Nederland", New York Branch, as a Lender 

By:  /s/ Adriaan Weststrate    
Name:  Adriaan Weststrate
Title:  Managing Director
 
By:  /s/ Chris Grimes    
Name:  Chris Grimes
Title:  Executive Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]