Document:

Exhibit 10.6

 

 

INTERCREDITOR AGREEMENT

 

Dated as of November 4, 2003

 

by and among

 

BANK OF AMERICA, N.A., as Collateral Agent

 

and

 

U.S.  RESTAURANT PROPERTIES
OPERATING L.P. (“USRP Operating”),

USRP FUNDING 2002-A, L.P. (the “General SPE”),

USRP (S&C), LLC, a Texas limited liability company (“S&C”),

USRP (JV1), LLC, a Texas limited liability company (“JV1”),

USRP/HCI PARTNERSHIP 1, L.P., a Texas limited partnership (“HCI”),

USRP HOLDING CORP., a Texas corporation (“USRP Holding),

as, collectively, the “Borrower,”

USRP MANAGING, INC. (the “General Partner”),

the General Partner of the Borrower, as a Guarantor,

U.S.  RESTAURANT PROPERTIES, INC. (the
“USRP REIT”),

as a Guarantor, and

THE SUBSIDIARIES OF THE BORROWER, GENERAL PARTNER AND THE USRP REIT

FROM TIME TO TIME PARTY HERETO,

as guarantors (the “Guarantors”; collectively, with  the Borrower, the “Credit Parties”),

and

 

CERTAIN OF THE CREDITORS
OF THE CREDIT PARTIES

 

 

 

Table of
Contents

 

	
  SECTION 1

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2

  	
  THE COLLATERAL AGENT

  	
   

  
	
   

  	
  Section 2.1

  	
  Appointment and
  Authorization.

  	
   

  
	
   

  	
  Section 2.2

  	
  Duties.

  	
   

  
	
   

  	
  Section 2.3

  	
  Agents and
  Attorneys-in-fact.

  	
   

  
	
   

  	
  Section 2.4

  	
  Limitation on Liability.

  	
   

  
	
   

  	
  Section 2.5

  	
  Reliance.

  	
   

  
	
   

  	
  Section 2.6

  	
  Notice of Default.

  	
   

  
	
   

  	
  Section 2.7

  	
  No Representations.

  	
   

  
	
   

  	
  Section 2.8

  	
  Indemnification.

  	
   

  
	
   

  	
  Section 2.9

  	
  Resignation
  and Removal of Collateral Agent.

  	
   

  
	
   

  	
  Section 2.10

  	
  Collateral
  Agent under Security Instruments.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3

  	
  ENFORCEMENT, PRIORITY
  AND DISTRIBUTION OF COLLATERAL PROCEEDS

  	
   

  
	
   

  	
  Section 3.1

  	
  Enforcement
  With Respect to Collateral.

  	
   

  
	
   

  	
  Section 3.2

  	
  Cooperation of Secured
  Parties.

  	
   

  
	
   

  	
  Section 3.3

  	
  Priority of Interests.

  	
   

  
	
   

  	
  Section 3.4

  	
  Distributions.

  	
   

  
	
   

  	
  Section 3.5

  	
  Waivers of Rights.

  	
   

  
	
   

  	
  Section 3.6

  	
  Additional Collateral.

  	
   

  
	
   

  	
  Section 3.7

  	
  Pari Passu Nature of
  Obligations.

  	
   

  
	
   

  	
  Section 3.8

  	
  Payments.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
  Section 4.1

  	
  Representation of
  the Revolver Agent.

  	
   

  
	
   

  	
  Section 4.2

  	
  Representation
  of the Term Loan Agent.

  	
   

  
	
   

  	
  Section 4.3

  	
  Representations of
  All Signatories.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5

  	
  AGREEMENTS AMONG THE
  SECURED PARTIES

  	
   

  
	
   

  	
  Section 5.1

  	
  Independent
  Actions by Secured Parties.

  	
   

  
	
   

  	
  Section 5.2

  	
  Relation of Secured
  Parties.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  Section 6.1

  	
  Entire
  Agreement and Consistent Provisions; Closing Date.

  	
   

  
	
   

  	
  Section 6.2

  	
  Notices.

  	
   

  
	
   

  	
  Section 6.3

  	
  Successors and Assigns.

  	
   

  
	
   

  	
  Section 6.4

  	
  Consents, Amendment,
  Waivers.

  	
   

  
	
   

  	
  Section 6.5

  	
  Governing Law.

  	
   

  
	
   

  	
  Section 6.6

  	
  Counterparts.

  	
   

  
	
   

  	
  Section 6.7

  	
  Sale of Interest.

  	
   

  
	
   

  	
  Section 6.8

  	
  Severability;
  Repurchase in the Event of Avoidance Actions.

  	
   

  
	
   

  	
  Section 6.9

  	
  Terms of Agreement.

  	
   

  
	
   

  	
  Section 6.10

  	
  Delivery Payments.

  	
   

  
	
   

  	
  Section 6.11

  	
  Reimbursement/Indemnification.

  	
   

  
					

 

i

 

Schedules

 

Schedule A – Form of ICA Joinder Agreement

 

ii

 

INTERCREDITOR
AGREEMENT

 

This
INTERCREDITOR AGREEMENT, dated as of November 4, 2003 (this “Agreement”)
is by and among:

 

a.                                       Each
of the “Lenders” (such “Lenders” being referred to herein as the “Revolving
Lenders”) under that certain $50 million revolving Credit Agreement dated
as of the date hereof among U.S. 
RESTAURANT PROPERTIES OPERATING L.P., a Delaware limited partnership (“USRP
Operating” or the “Principal Borrower”), USRP FUNDING 2002-A, L.P.,
a Texas limited partnership (the “General SPE”); USRP (S&C), LLC, a
Texas limited liability company (“S&C”), USRP (JV1), LLC, a Texas
limited liability company (“JV1”), USRP/HCI PARTNERSHIP 1, L.P., a Texas
limited partnership (“HCI”), USRP HOLDING CORP., a Texas corporation (“USRP
Holding”; and together with the Principal Borrower, the General SPE,
S&C, JV1 and HCI, the “Borrower”), USRP MANAGING, INC., a Delaware
corporation and the general partner of USRP Operating, as a Guarantor (the “General
Partner”), U.S. RESTAURANT PROPERTIES, INC., a Maryland corporation, as a
Guarantor (“USRP REIT”), the Subsidiary Guarantors (as defined therein;
collectively with the General Partner and USRP REIT, the “Guarantors”),
the Lenders (as defined therein), BANK OF AMERICA, N.A., as Agent for the
Lenders (in such capacity, the “Revolver Agent”; collectively with the
Revolving Lenders, the “Revolver Creditors”) and as issuing lender and
BANC OF AMERICA SECURITIES LLC, as Sole Lead Arranger and Sole
Book Manager (as the same may be amended, restated, supplemented or
otherwise modified from time to time, the “Revolving Credit Agreement”);

 

b.                                      Each
of the “Lenders” (such “Lenders” being referred to herein as the “Term Loan
Lenders”) under that certain $35 million Term Loan Credit Agreement dated
as of the date hereof among the Borrower, the Guarantors, the Lenders (as
defined therein), BANK OF AMERICA, N.A., as Agent for the Lenders (in such
capacity, the “Term Loan Agent”; collectively, with the Term Loan
Lenders, the “Term Loan Creditors”) and BANC OF AMERICA SECURITIES LLC,
as Sole Lead Arranger and Sole Book Manager (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Term
Loan Agreement”);

 

c.                                       Bank
of America, N.A., a national banking association (“Bank of America”), as
Revolving Agent, as Term Loan Agent and as collateral agent (in such capacity,
and together with its successors and permitted assigns, the “Collateral
Agent”) for the Revolver Creditors and the Term Loan Creditors
(collectively, the “Secured Parties”); and

 

d.                                      The
Borrower and each of the Guarantors (collectively, the “Credit Parties”).

 

All
capitalized terms used in this Agreement shall have the meanings assigned
thereto in Section 1.

 

R E C I
T A L S:

 

A.                                   Pursuant
to the Revolving Credit Agreement, the Revolving Lenders have made or have
committed to make certain loans and advances to the Borrower (the “Revolving
Loans”) and have issued or have committed to issue letters of credit for
the benefit of the Borrower (the “Revolving LCs”; collectively with the
Revolving Loans, the “Revolving Advances”).  The Guarantors have guaranteed repayment of the Revolving
Advances and all other amounts due and owing by the Borrower under the
Revolving Credit Agreement and the “Credit Documents” as defined therein (the “Revolving
Credit Documents”).

 

B.                                     Pursuant
to the Term Loan Agreement, the Term Loan Lenders have made or have committed
to make certain term loans and advances to the Borrower (the “Term Loans”).
The Guarantors have guaranteed repayment of the Term Loans and all other amounts
due and owing by the Borrower under the Term Loan Agreement and the “Credit
Documents” as defined therein (the “Term Loan Documents”; collectively,
with the Revolving Credit Documents, the “Subject Documents”).

 

C.                                     The
Revolving Advances and the other amounts due and owing by Borrower under the
Revolving Credit Documents (collectively, the “Revolving Loan Obligations”)
and the Term Loans and the other amounts due and owing by Borrower under the
Term Loan Documents (collectively, the “Term Loan Obligations”) are each
secured by (i) that certain Pledge and
Security Agreement entered into by USRP Holding as of the date hereof in

 

 

favor
of the Collateral Agent and for the benefit of the Secured Parties; (ii) that
certain Pledge and Security Agreement entered into by USRP Operating as of the
date hereof in favor of the Collateral Agent and for the benefit of the Secured
Parties; (iii) each of the “Security Documents” as defined in the Revolving
Credit Agreement; and (iv) each of the “Security Documents” as defined in the
Term Loan Agreement (collectively, the “Security Instruments”).

 

D.                                    This
Agreement is for the purpose of governing, inter alia, the allocations of
Distributions (as defined herein) among the Revolver Creditors and the Term
Loan Creditors.

 

NOW,
THEREFORE, in consideration of the premises and other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged,
the parties hereto hereby agree as follows:

 

SECTION 1

 

DEFINITIONS

 

Capitalized
terms used herein and not otherwise defined shall have the meanings given to
such terms in the Revolving Credit Agreement. 
The following terms shall have the meanings assigned to them below in
this Section 1 or in the provisions of this Agreement referred to below:

 

“Additional
Lien” shall have the meaning assigned thereto in Section 3.6 below.

 

“Affiliate”
means, with respect to any Person, any other Person (i) directly or
indirectly controlling or controlled by or under direct or indirect common
control with such Person or (ii) directly or indirectly owning or holding
five percent (5%) or more of the Capital Stock in such Person.  For purposes of this definition, “control”
when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

 

“Agent
Parties” or “Agent Party” shall have the meaning assigned thereto in
Section 2.4 below.

 

“Agreement”
shall have the meaning assigned thereto in the introductory paragraph hereof.

 

“Bank
of America” shall have the meaning assigned thereto in clause (c) of the
introductory paragraph hereof.

 

“Borrower”
shall have the meaning assigned thereto in clause (a) of the introductory
paragraph hereof.

 

“Business
Day” shall mean any day which is not a Saturday, Sunday or a day on which
commercial banks are authorized or obligated by law, executive order or
governmental decree to be closed in Charlotte, North Carolina or Chicago,
Illinois.

 

“Closing
Date” shall mean the date hereof.

 

“Collateral”
shall mean all assets (including, without limitation, real property, personal
property and fixtures) of the Borrower and the Subsidiary Guarantors, both
tangible and intangible, subject to the Liens established by the Security
Instruments.

 

“Collateral
Agent” shall have the meaning assigned thereto in clause (c) of the
introductory paragraph hereof.

 

 “Collateral Proceeds” shall mean and
include the proceeds of any sale or disposition of any of the Collateral in
connection with (i) the enforcement of the Liens granted pursuant to the
Security Instruments or (ii) any other exercise of the rights of the Collateral
Agent on behalf of the Secured Parties pursuant to the Security Instruments and
this Agreement.

 

2

 

“Credit
Parties” shall have the meaning assigned thereto in clause (d) of the
introductory paragraph hereof.

 

“Default
Notice” shall have the meaning assigned thereto in Section 3.2(a)
below.

 

“Disallowed
Obligation” shall have the meaning ascribed thereto in Section 6.8(a)
below.

 

“Distribution”
shall mean any and all payments or distributions (direct or indirect) of any
kind or character (whether such payments or distributions are attributable to
Collateral or to assets or property other than Collateral and whether in the
form of cash or any other property) in respect of any of the Secured
Obligations, including, without limitation:

 

(i)                                     any
voluntary payment or distribution with respect to the Secured Obligations
(including any prepayment (whether optional or otherwise) or any purchase of
any of the Secured Obligations) by any Credit Party;

 

(ii)                                  any
setoff or assertion of a banker’s lien or similar right (including, without
limitation, any secured lien arising therefrom under the Bankruptcy Code);

 

(iii)                               any distribution of
proceeds from any exercise of rights or remedies by any Secured Party
(including, without limitation, any Collateral Proceeds);

 

(iv)                              all
payments and other distributions (including, without limitation, payments made
through setoff of deposit balances or otherwise or payments or recoveries from
any security interest granted to any Secured Party) made pursuant to the terms
of any Security Instrument or the exercise of any rights (statutory or
otherwise) by Revolver Agent, Term Loan Agent or any Agent Party;

 

(v)                                 any
cash collateralization of any obligation in respect of any Letter of Credit or
other Secured Obligation; and

 

(vi)                              any
payment or other distribution from the estate of any Credit Party in connection
with any Bankruptcy Event.

 

“Enforcement”
shall mean taking any action seeking remedies with respect to the Collateral or
pursuing enforcement (judicial or otherwise) with respect to any of the Liens
granted under the Security Instruments. 
For the avoidance of doubt, “Enforcement” shall not include (i)
filing any involuntary petition of bankruptcy or similar action with respect to
any Credit Party or (ii) any action permitted by Section 5.1.

 

“Enforcement
Notice” shall mean any written notice delivered in accordance with
Section 2.2(a) of this Agreement stating that an Event of Default has
occurred and identifying the document(s) under which such Event of Default has
occurred, and clearly identified as any Enforcement Notice as required by
Section 2.6 below.

 

“General
Partner” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“General
SPE” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“Guarantors”
shall have the meaning assigned thereto in clause (a) of the introductory
paragraph hereof.

 

“HCI”
shall have the meaning assigned thereto in clause (a) of the introductory paragraph
hereof.

 

“ICA
Joinder Agreement” shall mean an ICA Joinder Agreement substantially in the
form of Exhibit C, as the same may be executed and delivered by a transferee or
assignee of a Secured Party hereto.

 

“Indemnified
Liabilities” shall have the meaning assigned thereto in Section 2.8
below.

 

3

 

“Indemnity
Share” shall have the meaning assigned thereto in Section 2.8 below.

 

“Intercreditor
Agreement” shall mean this Agreement.

 

“Interest
Payables” shall have the meaning assigned thereto in Section 3.4(b)
below.

 

“JV1”
shall have the meaning assigned thereto in clause (a) of the introductory
paragraph hereof.

 

“Non-indemnifying
Secured Party” shall have the meaning assigned thereto in Section 2.8
below.

 

“Non-Paying
Secured Party” shall have the meaning specified in Section 3.4(c)
below.

 

“Non-Returning
Secured Party” shall have the meaning specified in Section 3.4(d)
below.

 

“Other
Payables” shall have the meaning assigned thereto in Section 3.4(b) below.

 

“Principal
Borrower” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“Principal
Payables” shall have the meaning assigned thereto in Section 3.4(b)
below.

 

“Required
Revolving Lenders” shall have the meaning given to such term in the
Revolving Credit Agreement.

 

“Required
Secured Parties” shall mean the “Required Lenders” as such term is defined
in the Revolving Credit Agreement as of the date hereof.

 

“Required
Term Loan Lenders” shall have the meaning given to such term in the Term
Loan Agreement.

 

“Returned
Amount” shall have the meaning assigned thereto in Section 3.4(d)
below.

 

“Returned
Amount Share” shall have the meaning assigned thereto in
Section 3.4(d) below.

 

“Revolver
Agent” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“Revolving
Advances” shall have the meaning assigned thereto in the recitals hereof.

 

“Revolving
Credit Agreement” shall have the meaning assigned thereto in clause (a) of
the introductory paragraph hereof.

 

“Revolving
Credit Documents” shall have the meaning assigned thereto in the recitals
hereof.

 

“Revolving
Creditors” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“Revolving
LCs” shall have the meaning assigned thereto in the recitals hereof.

 

“Revolving
Lenders” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“Revolving
Loan Obligations” shall have the meaning assigned thereto in the recitals
hereof.

 

“Revolving
Loans” shall have the meaning assigned thereto in the recitals hereof.

 

“S&C”
shall have the meaning assigned thereto in clause (a) of the introductory
paragraph hereof.

 

4

 

“Secured
Obligations” means a collective reference to the Revolving Loan Obligations
and the Term Loan Obligations.

 

“Secured
Parties” shall have the meaning assigned thereto in clause (c) of the
introductory paragraph hereof.

 

“Security
Instruments” shall have the meaning assigned thereto in the recitals
hereof.

 

“Security
Termination Date” shall mean the date on which all of the Secured
Obligations are fully and indefeasibly satisfied and paid in full and each of
the Security Instruments has been terminated or released.

 

“Subject
Documents” shall have the meaning assigned thereto in the recitals hereof.

 

“Subject
Event of Default” shall mean either (a) an uncured “Event of Default” as
such term is defined in the Revolving Credit Agreement or (b) an uncured “Event
of Default” as such term is defined in the Term Loan Agreement.

 

“Term
Loan Agent” shall have the meaning assigned thereto in clause (b) of the
introductory paragraph hereof.

 

“Term
Loan Agreement” shall have the meaning assigned thereto in clause (b) of
the introductory paragraph hereof.

 

“Term
Loan Creditors” shall have the meaning assigned thereto in clause (b) of
the introductory paragraph hereof.

 

“Term
Loan Documents” shall have the meaning assigned thereto in the recitals
hereof.

 

“Term
Loan Lenders” shall have the meaning assigned thereto in clause (b) of the
introductory paragraph hereof.

 

“Term
Loans” shall have the meaning assigned thereto in the recitals hereof.

 

“USRP
Holding” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“USRP
Operating” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

“USRP
REIT” shall have the meaning assigned thereto in clause (a) of the
introductory paragraph hereof.

 

SECTION 2

 

THE COLLATERAL AGENT

 

Section 2.1                                   Appointment and Authorization.

 

Subject
to the provisions of Section 2.9 hereof, Bank of America is hereby
irrevocably designated and appointed as the Collateral Agent for the benefit of
the Secured Parties under the Security Instruments, and is hereby irrevocably
authorized to take such action as is expressly provided for under the
provisions of this Agreement and to exercise such powers as are expressly
conferred upon or delegated to the Collateral Agent by the terms of any of the Security
Instruments and this Agreement, together with such other powers as are
reasonably incidental thereto.  The
Collateral Agent shall not have any duties or responsibilities, except those
expressly set forth herein or therein, or any fiduciary relationship with any
of the Secured Parties, and no implied covenants, functions, responsibilities,

 

5

 

duties, obligations or
liabilities shall be read into the Security Instruments or this Agreement or
otherwise be deemed to exist for, be undertaken by, or apply to or against the
Collateral Agent.  The Collateral Agent
is hereby expressly authorized in such capacity on behalf of the Secured
Parties, without hereby limiting the foregoing, and subject to, and in accordance
with, the terms and conditions of this Agreement:

 

(i)                                     to
implement the sharing of Distributions as contemplated by this Agreement and to
receive on behalf of each of the Secured Parties any payment of monies paid
thereto in accordance with the Security Instruments and the other Subject
Documents, and to distribute to each Secured Party its respective share of all
payments (including the Distributions) so received in accordance with the terms
of this Agreement;

 

(ii)                                  to
receive all documents and items to be furnished under the Security Instruments;

 

(iii)                               to maintain physical
possession of any of the Collateral as contemplated by any of the Security
Instruments;

 

(iv)                              to
act on behalf of each Secured Party in and under the Security Instruments and this
Agreement;

 

(v)                                 to
the extent permitted by this Agreement and the Security Instruments, to
exercise for its own benefit and the benefit of each Secured Party all remedies
of the Secured Parties under any of the Security Instruments as directed in
writing by the Required Secured Parties, subject, however to the right to take
action described in Section 2.2(c) so long as consistent with the terms of
the Security Instruments;

 

(vi)                              to
take such other actions, other than as specified in Section 2.2(c) hereof,
as may be requested in writing by the Required Secured Parties or as are
reasonably incidental to any powers granted to the Collateral Agent hereunder
and not in conflict with applicable law or regulation or any Subject Document.

 

Section 2.2                                   Duties.

 

(a)                                  Upon
the Collateral Agent’s receipt of an Enforcement Notice from the Required
Secured Parties giving notice of a Subject Event of Default and directing the
Collateral Agent to take action under any Security Instrument for the benefit
of the Secured Parties, the Collateral Agent shall undertake to proceed as
directed as soon as possible and in no event later than ten (10) Business Days
after receipt of such notice.  All
Enforcement actions undertaken by the Collateral Agent, whether or not directed
by the Required Secured Parties, shall be in accordance with the terms of
applicable law and the Required Secured Parties shall act in accordance with
the applicable Subject Documents in issuing any such notices.  The Collateral Agent shall deliver a copy of
any such written notice from the Required Secured Parties to each Secured Party
not a signatory to such notice promptly upon its receipt by the Collateral
Agent.  The Collateral Agent shall be
entitled to rely and act upon advice of counsel (including, without limitation,
counsel to any Secured Party), independent accountants and other experts
selected by the Collateral Agent with reasonable care concerning all matters
pertaining to any duties hereunder.

 

(b)                                 The
Collateral Agent shall have no obligation to, nor liability for failure to,
independently verify the existence or occurrence of any events set forth in any
Enforcement Notice it shall receive pursuant to Section 2.2(a) hereof and
the Collateral Agent may rely thereon as to each matter stated therein as more
fully set forth in Section 2.5 hereof and shall be indemnified by each
Secured Party with respect to such reliance in the manner and pursuant to the
terms of Section 2.8 hereof.

 

(c)                                  Except
pursuant to delivery of written instructions by the Required Secured Parties to
the Collateral Agent or as is necessary to prevent the waste, diminution,
impairment or loss of Collateral which could not reasonably be taken through
notice or instruction by the Required Secured Parties, the Collateral Agent
shall not, without prior written consent of the Required Secured Parties,
release or substitute or take any action or exercise any right or remedy with
respect to any Collateral.

 

6

 

Section 2.3                                   Agents and Attorneys-in-fact.

 

The
Collateral Agent may execute any of its duties under the Security Instruments
or this Agreement by or through its agents or attorneys-in-fact.

 

Section 2.4                                   Limitation on Liability.

 

Neither
the Collateral Agent nor any of its officers, directors, employees, affiliates,
agents or attorneys-in-fact (collectively, the “Agent Parties”) shall be
liable to the Secured Parties for any action lawfully taken or omitted to be
taken by it or them under or in connection with the Security Instruments or this
Agreement except for its or their own gross negligence or willful misconduct,
including without limitation any liability with respect to (i) the sharing of
the Distributions as contemplated by this Agreement, (ii) the application
pursuant to the terms of this Agreement of Collateral Proceeds realized from
time to time by the Collateral Agent on behalf of the Secured Parties, (iii)
the application pursuant to the terms of this Agreement of Distributions, (iv)
the exercise of any remedy, including without limitation the sale or sales of
Collateral conducted by the Collateral Agent in accordance with the terms
hereof and of the Security Instruments pursuant to the express written
instruction and direction delivered by the Required Secured Parties to the Collateral
Agent in connection with any Enforcement Notice and (v) the protection or
preservation of the Collateral in its possession.  No Agent Party shall be responsible in any manner to any of the
Secured Parties for any recitals, statements, representations or warranties
made by the any Credit Party or any officer thereof contained in any of the
Security Instruments or any other Subject Document, or in any certificate,
report, statement or other document referred to or provided for in or received
by the Collateral Agent under or in connection with this Agreement, the
Security Instruments, or the other Subject Documents or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement, the Security Instruments, or any other Subject Document, or for any
failure of the Borrower, any of its Subsidiaries or any Secured Party (other
than the Collateral Agent) to perform its obligations thereunder, or for the
perfection or priority of any Lien or the existence or state of, or title to,
any of the Collateral.  The Collateral
Agent shall be under no obligation to any of the Secured Parties to ascertain
or to inquire as to the observance or performance of any of the terms,
covenants or conditions of the Security Instruments, this Agreement or the
other Subject Documents on the part of the Borrower, any of its Subsidiaries or
any Secured Party (other than the Collateral Agent) or to inspect the
properties, books or records of the Borrower, any of its Subsidiaries or any
Secured Party (other than the Collateral Agent).  The agreements in this Section 2.4 shall survive the payment
of the Secured Obligations and the termination of the Security Instruments,
this Agreement and the other Subject Documents.

 

Section 2.5                                   Reliance.

 

The
Collateral Agent shall be entitled to rely, and shall be fully protected in
relying, upon any certification, notice, consent or other communication
(including, without limitation, any thereof delivered by telephone or
telefacsimile or e-mail) reasonably believed by it to be genuine and to have
been signed, sent or made by the proper Person or Persons, and upon advice and
statements of legal counsel (including, without limitation, counsel to any
Secured Party), independent accountants and other experts selected by the
Collateral Agent with reasonable care. 
The Collateral Agent shall be fully justified in failing or refusing to
take any Enforcement action under the Security Instruments or this Agreement
unless it shall first receive the written directive of the Required Secured
Parties as provided in this Agreement and it shall first be indemnified to its
satisfaction by such Secured Parties against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such
action.  The Collateral Agent shall in
all cases be fully protected in acting, or in refraining from acting, under the
Security Instruments or this Agreement in accordance with a request of the
Required Secured Parties, and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Secured Parties and their
successors and assignees.

 

Section 2.6                                   Notice of Default.

 

The
Collateral Agent shall not be deemed to have constructive knowledge or notice
of the occurrence of any Subject Event of Default with respect to which it does
not have actual knowledge by any of its personnel or officers active in its
service as Collateral Agent unless it has received an Enforcement Notice that
is clearly identified as such.

 

7

 

Section 2.7                                   No Representations.

 

Each
Secured Party that is a party hereto acknowledges that neither the Collateral
Agent nor any of its affiliates or agents has made any representations or
warranties to it and that no act by the Collateral Agent hereafter taken,
including any review of the affairs of the Credit Parties, shall be deemed to
constitute any representation or warranty by the Collateral Agent to any
Secured Party.  Each Secured Party
represents to the Collateral Agent that it has, independently and without
reliance upon the Collateral Agent or any other Secured Party, and based on
such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the financial condition, creditworthiness,
affairs, status and nature of the Credit Parties, and the status, nature and
value of the Collateral, and made its own decision to enter into this Agreement
and the Subject Documents to which it is party.  Each Secured Party also represents that it will, independently
and without reliance upon the Collateral Agent or any other Secured Party, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under any of the Subject Documents and to make such
investigation as it deems necessary to inform itself as to the status and
affairs, financial or otherwise, of the Credit Parties.  Except for notices, reports and other
documents expressly required to be furnished to the Secured Parties by the
Collateral Agent hereunder or under the Security Instruments, the Collateral
Agent shall have no duty or responsibility to provide any Secured Party with
any credit or other information concerning the Collateral or the affairs,
financial condition or business of the Borrower or its Subsidiaries (other than
with respect to Distributions pursuant to Section 3.4 hereof) which may
come into the possession of the Collateral Agent.

 

Section 2.8                                   Indemnification.

 

Each
Secured Party agrees to, within ten (10) Business Days of a request by
Collateral Agent, indemnify for its Indemnity Share (as defined below) each
Agent Party in its capacity as such (to the extent not reimbursed by the Borrower
and without limiting any obligations of the Borrower so to do) from and against
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may at any time (including without limitation at any time
following the payment of any amounts due under this Agreement or any Subject
Document) be imposed on, incurred by or asserted against any Agent Party in any
way relating to or arising out of the Security Instruments, this Agreement or
the Subject Documents or any other document contemplated by or referred to
herein or therein or the transactions contemplated thereby or hereby or any
action taken or omitted by the Collateral Agent under or in connection with any
of the foregoing (collectively, the “Indemnified Liabilities”); provided
that, no Secured Party shall be liable for the payment of any portion of
such Indemnified Liabilities resulting from an Agent Party’s gross negligence
or willful misconduct.  If any Secured
Party fails to tender payment of its ratable share (determined based upon, at
such date, the percentage held by such Secured Party of the total outstanding
Secured Obligations (such Secured Party’s “Indemnity Share”)) of any of
such Indemnified Liabilities (a “Non-indemnifying Secured Party”), then
the Collateral Agent is hereby expressly granted the right thereafter to, and
shall, withhold from any Distributions (including, without limitation,
Collateral Proceeds) otherwise payable to such Non-indemnifying Secured Party
(or, if applicable, the agent for such Secured Party (whether the Revolver
Agent or Term Loan Agent) which would otherwise receive payment on behalf of
such Secured Party) an amount equal to its Indemnity Share remaining unpaid at
such time of receipt of such Distributions, plus interest on such Indemnity
Share (calculated at the Federal Funds Rate for each day following the date on
which such payment was due pursuant to the terms of this Section 2.8) and
apply such amount withheld in satisfaction of such Indemnity Share.  The agreements in this Section 2.8
shall survive the payment of the Secured Obligations and the termination of the
Security Instruments, the other Subject Documents and this Agreement.  Each of the Secured Parties hereby
acknowledges and agrees that to the extent it is deemed to be a
Non-indemnifying Secured Party, it shall not be entitled, under any Subject
Documents to which it is a party, to payment in respect of any amount withheld
as an Indemnity Share and that distributions under such Subject Documents shall
be made as if such Indemnity Share (or withheld portion thereof) was already
paid to it under the applicable Subject Document(s).

 

Section 2.9                                   Resignation and Removal of
Collateral Agent.

 

(a)                                  If
the Collateral Agent shall resign as Collateral Agent under this Agreement,
such resignation to be effective upon the earlier of (i) the appointment of a
successor Collateral Agent and (ii) the date occurring thirty (30) days
following such resignation, then the Required Secured Parties may

 

8

 

appoint
a successor Collateral Agent for the Secured Parties, which shall be a
commercial bank or trust company organized under the laws of the United States
of America or any state thereof having a combined surplus and capital of not
less than $500,000,000, whereupon such successor Collateral Agent shall succeed
to the rights, powers and duties of the former Collateral Agent and the
obligations of the former Collateral Agent shall be terminated and canceled,
without any other or further act or deed on the part of such former Collateral
Agent or any of the parties to this Agreement; provided, however,
if the Required Secured Parties cannot agree as to a successor Collateral Agent
within thirty (30) days after notice of such resignation, then (i) the
resigning Collateral Agent shall be permitted to appoint a successor Collateral
Agent meeting the qualifications set forth above and willing to accept such
role and the parties hereto agree to execute whatever documents are necessary
to effect such action under this Agreement or any other document executed
pursuant to this Agreement; and (ii) if the Collateral Agent does not appoint
any such successor Collateral Agent, the Secured Parties shall act collectively
as the Collateral Agent hereunder until such date as a new Collateral Agent is
apppointed.

 

(b)                                 The
Collateral Agent may be removed for cause at any time by the vote of the
Required Secured Parties and written notice thereof delivered to the Collateral
Agent.  If the Collateral Agent is so
removed, the Required Secured Parties shall appoint a successor Collateral
Agent in accordance with Section 2.9(a) hereof.  The Collateral Agent may not be removed by the Required Secured
Parties without cause.

 

(c)                                  After
the effective date of the resignation or removal of the Collateral Agent
hereunder, the provisions of this Section 2 shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Collateral Agent
under the Security Instruments and this Agreement; provided, however,
that any liability of such Collateral Agent arising from the performance of its
obligations hereunder prior to such resignation or removal shall survive such
resignation or removal.

 

Section 2.10                            Collateral Agent under Security
Instruments.

 

The
Collateral Agent hereunder hereby agrees to serve as Collateral Agent under the
Security Instruments.  Any resignation
or removal of the Collateral Agent hereunder and the appointment of a substitute
Collateral Agent shall also be effective as a resignation, removal or
substitution of the Collateral Agent under the Security Instruments.

 

SECTION 3

 

ENFORCEMENT, PRIORITY AND DISTRIBUTION

OF COLLATERAL PROCEEDS

 

Section 3.1                                   Enforcement With Respect to Collateral.

 

(a)                                  Each
of the Required Revolving Lenders and the Required Term Loan Lenders shall have
the right to deliver an Enforcement Notice to the Collateral Agent to the
extent a Subject Event of Default shall have occurred under a Subject Document
to which such group is a party or beneficiary. 
Upon and after the delivery to the Collateral Agent of an Enforcement
Notice by either of the Required Revolving Lenders or the Required Term Loan
Lenders, the Collateral Agent shall, upon and after the delivery to the
Collateral Agent of written direction of the Required Secured Parties to
undertake Enforcement pursuant to Section 2.2(a) hereof, proceed to
protect and enforce rights or remedies granted under the Security Instruments
as so directed, either by suit in equity or by action at law, or both, whether
for the specific performance of any covenant, agreement or other provision
contained herein or in the Security Instruments, or to enforce any other legal
or equitable right or remedy provided therein.

 

(b)                                 All
Distributions received by the Collateral Agent shall be applied in accordance
with Section 3.4(b) below.

 

9

 

Section 3.2                                   Cooperation of Secured Parties.

 

Each
Secured Party that is a party hereto hereby agrees and covenants with each
other Secured Party (whether or not it is a party hereto) that:

 

(a)                                  promptly
after having actual knowledge of the occurrence of a Subject Event of Default,
each Secured Party will deliver to the Collateral Agent and to each other
Secured Party written notice of such Subject Event of Default (a “Default Notice”)
identifying the nature of such Subject Event of Default and specifying the
Subject Document under which such Subject Event of Default arose; provided,
however, that no Default Notice shall be required to be given to the
extent such Subject Event of Default is waived or cured by amendment prior to
the time a Default Notice is delivered and provided  further, that
the failure to give such notice shall not impair any rights hereunder or under
any of the Security Instruments or the other Subject Documents;

 

(b)                                 it
will from time to time provide such information that is available to it to the
Collateral Agent as may be necessary to enable the Collateral Agent to make any
calculation hereunder or otherwise reasonably required and requested for any
other purpose hereof;

 

(c)                                  it
will from time to time consult with the Collateral Agent and the other Secured
Parties in good faith regarding the Enforcement of its rights with a view to
recovering amounts due under any of the Subject Documents; and

 

(d)                                 it
will give the Collateral Agent and each other Secured Party prompt written
notice of any acceleration of maturity or suspension or termination of all or
any portion of any Secured Obligation; provided, however, that
the failure to give such notice shall not impair any rights hereunder or under
any of the Security Instruments or the Subject Documents.  Nothing contained herein shall prevent,
restrict, or limit any right under the applicable Subject Documents for a
Secured Party to accelerate or suspend or terminate all or any portion of any
Secured Obligation.

 

Section 3.3                                   Priority of Interests.

 

Notwithstanding
any agreements or arrangements in existence prior to the date hereof or hereafter
arising or the existence or priority of any Lien in any of the Collateral held
by a Secured Party or any other Person on behalf of a Secured Party on the date
hereof or hereafter arising without giving effect to this Agreement, the rights
and interests of such Secured Party in the Collateral, and any Lien therein,
shall be subject to this Agreement and treated as among the Secured Parties as
having such priority as set forth herein and shall be shared at all times among
the Secured Parties in accordance herewith and the Collateral Proceeds of any
sale, transfer or other disposition of the Collateral for any reasons
whatsoever shall be distributed in accordance with this Agreement.

 

Section 3.4                                   Distributions.

 

(a)                                  (i)                                     Each
Secured Party agrees to share with the other Secured Parties all Distributions
at all times (whether or not a Subject Event of Default shall have occurred and
be continuing and whether or not any Bankruptcy Event shall have commenced or
be continuing with respect to any Credit Party) according to the priorities and
in the manner provided in this Section 3.4.  In furtherance of the foregoing, any and all payments and other
Distributions required to be made by any Credit Party in respect of the Secured
Obligations  shall at all times be paid by the Credit Parties to the
Collateral Agent for distribution in accordance with paragraph (b) of this
Section 3.4.  Each Secured Party
agrees that, notwithstanding the terms of any other Subject Documents, if it
shall receive any Distributions (including payments received by setoff of
deposit balances or otherwise or payments or recoveries from any security
interest granted to any Secured Party) other than as a result (whether directly
or indirectly through the Revolver Agent or Term Loan Agent, as applicable) of
a distribution by the Collateral Agent pursuant to paragraph (b) of this
Section 3.4, such Secured Party shall promptly (in no event later than
five (5) Business Days after receipt thereof) pay the same over to the
Collateral Agent in the same form as received (with such endorsements as may be
necessary), and that until such Secured Party shall have made such payment it
will hold such Distributions in trust for all the Secured Parties.  Each of the Revolving Lenders

 

10

 

hereby
authorize Collateral Agent to direct all Distributions to which they are
entitled to the Revolver Agent for distribution in accordance with the
Revolving Credit Documents.  Each of the
Term Loan Lenders hereby authorize Collateral Agent to direct all Distributions
to which they are entitled to the Term Loan Agent for distribution in
accordance with the Term Loan Documents.

 

(ii)                                  Promptly
following receipt of any Distributions, the Collateral Agent shall distribute
each Secured Party’s share of the Distributions so received in accordance with
paragraph (b) of this Section 3.4 to the Revolver Agent or the Term Loan
Agent, as applicable, for application in accordance with the applicable Subject
Documents.  Until such Distributions are
so applied, the Collateral Agent shall hold such amounts in its custody in
accordance with its regular procedures for handling deposited funds.

 

(b)                                 (i)                                     All
Distributions received by the Collateral Agent shall be applied promptly by the
Collateral Agent in the following order as of any date of distribution:

 

FIRST:                                                           to
payment of the costs, fees and expenses (including any attorneys’ fees)
incurred by the Collateral Agent in connection with enforcing the rights and
remedies of the Secured Parties hereunder and under the Security Instruments
and with any or all of the retaking, holding, preserving, processing,
advertising, maintaining, preparing for or consummating any sale, lease or
other disposition of any Collateral, including trustee’s fees and commissions,
court costs and reasonable attorney’s fees and legal expenses pertaining
thereto; and then

 

SECOND:                                            to payment
of the costs, fees and expenses (including any attorneys’ fees) due and owing
by the Credit Parties to the Revolving Agent and the Term Loan Agent as of such
date in connection with the Subject Documents (the “Agents’ Fees”),
ratably in accordance with the percentage of the Agents’ Fees then due and
owing to each of them; and then

 

THIRD:       to the payment of all accrued and unpaid fees
(except fees related to the prepayment of principal) and interest then due and
payable by the Credit Parties in respect of the Subject Obligations (the “Interest
Payables”); provided that such payments shall be made ratably to the
Revolving Agent and the Term Loan Agent in accordance with the percentage of
the total Interest Payables due and owing as of such date to the Revolving
Lenders and the Term Loan Lenders, respectively; and then

 

FOURTH:                                           to the
payment of all principal due and payable by the Credit Parties in respect of
the Subject Obligations (including due and owing as mandatory prepayments and,
if applicable, all amounts necessary to cash collateralize the Letters of
Credit) (the “Principal Payables”); provided that such payments shall be
made ratably to the Revolving Agent and the Term Loan Agent in accordance with
the percentage of the total Principal Payables due and owing as of such date to
the Revolving Lenders and the Term Loan Lenders, respectively; and then

 

FIFTH:                                                          to
the payment in respect of any other costs, expenses or other amounts owing to
any Secured Party by the Credit Parties on the Secured Obligations or otherwise
in connection with the Subject Documents, except costs, expenses and other
amounts which may be due and owing in connection with any voluntary prepayment
of principal (the “Other Payables”); provided that such payments shall
be made ratably to the Revolving Agent and the Term Loan Agent in accordance
with the percentage of the total Other Payables due and owing as of such date
to the Revolving Lenders and the Term Loan Lenders, respectively; and then

 

SIXTH:                                                        to
the extent directed by the Principal Borrower, to the voluntary payment of the
outstanding principal under the Term Loan Agreement or Revolving Credit
Agreement (at the option of and as directed in writing by the Principal
Borrower), together with any interest accrued thereon, fees due in connection
with such prepayment and any breakage or other costs and fees payable by
Borrower in connection therewith; and then

 

SEVENTH:                                      to the Principal
Borrower or as otherwise required by applicable law.

 

11

 

(ii)                                  Notwithstanding
anything in this Agreement to the contrary, the Collateral Agent shall not be
obligated to make a payment pursuant to this Section 3.4(b) until it shall
have received a threshold amount of at least $100,000 of Distributions that are
to be distributed at such time pursuant to this Section 3.4.

 

(iii)                               The Revolver Agent and
the Term Loan Agent shall apply all amounts received pursuant to this
Section 3.4(b) in accordance with the terms of the Revolving Credit
Agreement and the Term Loan Agreement, respectively.

 

(c)                                  To
the extent any portion of a Distribution is funded for the purpose of cash
collateralizing a Letter of Credit under the Revolving Credit Agreement (an “Unattached
Cash Collateral Amount”) and the applicable Letter of Credit is,
thereafter, terminated without having been drawn on, the Revolver Agent (and
the Revolving Lenders) shall return such Unattached Cash Collateral Amount to
the Collateral Agent for re-distribution in accordance with the terms of
Section 3.4(b) of this Agreement.

 

(d)                                 If
at any time the Collateral Agent, the Agent or any Secured Party shall be
required to restore or return, or if such party (with the consent of the
Required Secured Parties) restores or returns in good faith settlement of
pending or threatened avoidance claims, to any Credit Party or any other Person
other than to another Secured Party any Distributions or any portion thereof,
whether by reason of the insolvency, reorganization or other similar event in
respect of the Borrower or such Person or otherwise (a “Returned Amount”),
then (i) the Collateral Agent shall promptly give notice of the Returned Amount
to each Secured Party, and (ii) the Secured Parties shall promptly transfer to
the Collateral Agent (for reimbursement to the Collateral Agent or such Secured
Party, as the case may be) such amounts as are necessary such that each Secured
Party shall have received and retained the amount it would have received under
Section 3.4(b) had the Returned Amount not previously been distributed
(its “Returned Amount Share”). 
If any Secured Party (a “Non-Returning Secured Party”) fails to
tender payment of its Returned Amount Share, then the Collateral Agent is
hereby expressly granted the right thereafter to, and shall, withhold from any
Distributions (including, without limitation, Collateral Proceeds) otherwise
payable to such Non-Returning Secured Party an amount equal to its Returned
Amount Share and apply such amount withheld in satisfaction of such Returned
Amount Share.  The Collateral Agent
shall also have the right to collect from such Non-Returning Secured Party or
otherwise to be made to such Non-Returning Secured Party, such Returned Amount
Share and the Collateral Agent’s reasonable costs and expenses incurred in
collecting such Non-Returning Secured Party’s Returned Amount Share, plus
interest on any unpaid portion of such Returned Amount Share at the federal judgment
rate from, but excluding, the date the Collateral Agent first requested payment
of such Returned Amount Share.  The
Agreements in this Section 3.4(d) shall survive the payment of the Secured
Obligations and the termination of the Security Instruments, the other Subject
Documents and this Agreement.  The
Revolver Agent and the Term Loan Agent shall not be responsible for amounts
distributed by them to the Revolving Lenders or the Term Loan Lenders.  To the extent a Returned Amount has been
distributed by the Revolving Agent or the Term Loan Agent to the Revolving
Lenders or the Term Loan Lenders, as applicable, it shall be the responsibility
of such Revolving Lenders or Term Loan Lenders, as applicable, to fund its
Returned Amount Share.

 

Section 3.5                                   Waivers of Rights.

 

Except
as otherwise expressly set forth herein, until occurrence of the Security
Termination Date, each Secured Party hereby waives any and all rights each may
individually (i.e., other than through the Collateral Agent) now or hereafter have
to exercise any Enforcement action. 
Each Secured Party hereby agrees not to take any action whatsoever to
enforce any term or provision of the Security Instruments or to enforce any
right with respect to the Collateral in conflict with the provisions of this
Agreement or the terms and provisions of the Security Instruments.  Nothing set forth above or otherwise
contained in this Agreement shall be interpreted as a waiver of any rights of
setoff (by contract, law or otherwise) of any Secured Party except in
accordance with the sharing provisions set forth herein.

 

12

 

Section 3.6                                   Additional Collateral.

 

Each
of the Secured Parties hereby covenants and agrees that it will not take,
accept or obtain any Lien upon (an “Additional Lien”), any assets of the
Borrower or any Subsidiary or Affiliate thereof (other than assets which, if
obtained by such Person, would constitute Collateral to secure the payment and
performance of the Secured Obligations), unless the Collateral Agent on behalf
of all Secured Parties is granted a pari  passu Lien upon such
assets and such assets become Collateral subject to this Agreement, in either
case, pursuant to documents in form and substance satisfactory to all of the
Secured Parties.

 

Section 3.7                                   Pari Passu Nature of Obligations.

 

Each
Secured Party acknowledges and agrees that the Secured Obligations share the
benefit and Lien priority of and to the Security Instruments, the Collateral
and the Collateral Proceeds and the benefit of the Subsidiary Guaranties and
the Distributions on the basis specified in Section 3.4(b).

 

Section 3.8                                   Payments.

 

All
payments to be made by the Collateral Agent pursuant to the terms and provision
of this Intercreditor Agreement shall be made by wire transfer of immediately
available funds to the bank account specified in writing to the Collateral
Agent by the applicable party entitled thereto.

 

SECTION 4

 

REPRESENTATIONS AND WARRANTIES

 

Section 4.1                                   Representation of the Revolver Agent.

 

The
Revolving Agent represents that the Revolving Lenders identified on the
signature pages hereto represent 100% of the aggregate Commitments under the
Revolving Credit Agreement as of the date hereof and that such Revolving Lender
have each, to the best of its knowledge, executed this Agreement.

 

Section 4.2                                   Representation of the Term Loan
Agent.

 

The
Term Loan Agent represents that the Term Loan Lenders identified on the
signature pages hereto represent 100% of the outstanding Term Loans and/or
Commitments (as applicable) under the Term Loan Agreement as of the date hereof
and that such Term Loan Lender have each, to the best of its knowledge,
executed this Agreement.

 

Section 4.3                                   Representations of All Signatories.

 

Each
of the undersigned hereby represents and warrants that he/she has the power and
authority to execute and deliver this Agreement on behalf of the institution
for which such individual is signing this Agreement and that the execution and
delivery hereof has been duly authorized and approved by such institution.

 

SECTION 5

 

AGREEMENTS AMONG THE SECURED PARTIES

 

Section 5.1                                   Independent Actions by Secured
Parties.

 

(a)                                  Any
Secured Party may, without instruction from the Collateral Agent, but in no
event shall be required to, take action permitted by applicable law or in
accordance with the terms of the Subject Documents to preserve (but not
enforce) its rights and Liens in any item of Collateral securing the payment
and performance of the Secured Obligations, including but not limited to curing
any default or alleged

 

13

 

default
under any contract entered into by any Credit Party, paying any tax, fee or
expense on behalf of any Credit Party and paying insurance premiums on behalf
of any Credit Party so long as such action shall not impair the rights of the
Collateral Agent or of any other Secured Party or otherwise be contrary to the
terms of this Agreement or any Subject Document.

 

(b)                                 Nothing
contained in this Agreement shall prohibit any Secured Party from accelerating
the maturity of, or demanding payment from any Credit Party on, any Subject
Obligation of the Borrower to such Secured Party or from instituting legal
action against any such Credit Party to obtain a judgment or other legal
process in respect of such Subject Obligation, but any funds received from the
Borrower, any Subsidiary or any Subsidiary Guarantor in connection with any
recovery therefrom shall constitute Distributions and shall be subject to the
terms of this Agreement.

 

Section 5.2                                   Relation of Secured Parties.

 

This
Agreement is entered into solely for the purposes set forth herein, and no
Secured Party assumes any responsibility to any other party hereto to advise
such other party of information known to such other party regarding the financial
condition of any Credit Party or of any other circumstances bearing upon the
risk of nonpayment of the Subject Obligations. 
Each Secured Party specifically acknowledges and agrees that nothing
contained in this Agreement is or is intended to be for the benefit of any
Credit Party or any other Person that is not a party hereto and nothing
contained herein shall limit any of the obligations of any Credit Party to the
Secured Parties.

 

SECTION 6

 

MISCELLANEOUS

 

Section 6.1                                   Entire Agreement and Consistent
Provisions; Closing Date.

 

This
Agreement represents the entire Agreement among the Secured Parties and, except
as otherwise provided, this Agreement may not be altered, amended or modified
except in a writing executed by all the parties to this Agreement.

 

Section 6.2                                   Notices.

 

Notices
hereunder shall be given to the Secured Parties at their addresses as set forth
below their signatures on the signature pages hereto or at such other address
as may be designated by each in a written notice to the other parties hereto.

 

Section 6.3                                   Successors and Assigns.

 

This
Agreement shall be binding upon and inure to the benefit of each of the Secured
Parties and their respective successors and assigns, whether so expressed or
not, and, in particular, shall inure to the benefit of and be enforceable by
any future holder or holders of any Subject Obligations, and the term “Secured
Party” shall include any such subsequent holder of Subject Obligations,
wherever the context permits.

 

Section 6.4                                   Consents, Amendment, Waivers.

 

(a)                                  All
amendments, waivers, modifications, supplements or consents of any provision of
this Agreement shall be effective only if the same shall be in writing and
signed by the Required Secured Creditors; provided that any amendment,
modification, supplement or waiver of Sections 3.4, 3.6, 3.7 or 6.4 of this
Agreement or the definitions of Distribution, Revolving Loan Obligations, Term
Loan Obligations, Subject Obligations, Secured Obligations, Required Revolving
Lenders, Required Term Loan Lenders, Required Secured Parties, or Secured
Parties contained in this Agreement shall require the unanimous prior written
consent of all the Secured Parties.

 

14

 

(b)                                 All
amendments or waivers of any provision of or consent pursuant to or under any
Security Instrument shall be effective only if the same shall be in writing and
signed by the Collateral Agent and the Required Secured Parties.  In addition, any release of Collateral shall
require the unanimous prior written consent of all the Secured Parties (except
to the extent such release may, pursuant to the applicable Subject Documents,
be permitted by the Revolver Agent or the Term Loan Agent, as applicable, in
which case only the prior written consent of the applicable agent shall be
required).

 

(c)                                  Any
amendments, waivers or consents of any provision of this Agreement affecting
the rights or obligations of the Collateral Agent shall also require the prior
written consent of the Collateral Agent.

 

(d)                                 All
amendments or waivers of any of the other Subject Documents or the provisions
thereof shall be made in accordance with the provisions of Section 11.6 of
the Revolving Credit Agreement and Section 11.6 Term Loan Agreement,
respectively, and the provisions of Section 11.6 of each such document
shall not be amended, waived or otherwise modified without the consent of each
of the Secured Parties.

 

(e)                                  Each
Secured Party hereby covenants and agrees with each other Secured Party that it
shall not amend, waive, modify, supplement or waive any provision of this
Agreement, the Security Instruments or any other Subject Document except in
accordance with this Section 6.4.

 

Section 6.5                                   Governing Law.

 

(a)                                  This
Agreement shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the law of the State of North Carolina
excluding choice-of-law principles of the laws of such State that would require
the application of the laws of a jurisdiction other than such State.

 

(b)                                 Any
legal action or proceeding with respect to this Agreement or any other Subejct
Document may be brought in the courts of the State of North Carolina in
Mecklenburg County, or of the United States for the Western District of North
Carolina, and, by execution and delivery of this Agreement, each of the parties
hereto hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the nonexclusive jurisdiction of such
courts.  Each of the parties hereto
further irrevocably consents to the service of process out of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to it at the address
set out for notices on the signature pages hereto, such service to become
effective three (3) days after such mailing.  Nothing herein shall affect the right of the Collateral Agent to
serve process in any other manner permitted by law or to commence legal
proceedings or to otherwise proceed against any Credit Party in any other
jurisdiction. Each of the Credit Parties hereby irrevocably waives any
objection which it may now or hereafter have to the laying of venue of any of
the aforesaid actions or proceedings arising out of or in connection with
Credit Agreement or any other Subject Document brought in the courts referred
to in this subsection (a) and hereby further irrevocably waives and agrees
not to plead or claim in any such court that any such action or proceeding
brought in any such court has been brought in an inconvenient forum.

 

(c)                                  TO
THE EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 6.6                                   Counterparts.

 

This
Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one Agreement, and any of the parties hereto may
execute this Agreement by signing any such counterpart.

 

15

 

Section 6.7                                   Sale of Interest.

 

No
Secured Party will sell, transfer or otherwise dispose of any interest in the
Subject Obligations unless such purchaser or transferee shall agree, in
writing, to be bound by the terms of this Agreement and shall have executed and
delivered an ICA Joinder Agreement substantially in the form of Schedule A.

 

Section 6.8                                   Severability; Repurchase in the
Event of Avoidance Actions.

 

(a)                                  If
for any reason, the allocation of Distributions among the Secured Parties in
accordance with Section 3.4(b) of this Agreement is finally determined by
a court of competent jurisdiction to be unenforceable in whole or in part, then
the Secured Parties will purchase and exchange such participations in the
respective Secured Obligations as may be required so that each Secured Party,
after giving effect to all such purchases and exchanges, shall have received
and retained cash payments in respect of the amounts distributable under
Section 3.4(b) equal to the amount such Secured Party would have received
if the amounts had been applied in accordance with such Section 3.4(b); provided,
however, if in connection with a Bankruptcy Event of the Borrower any
portion of the Subject Obligations or the Borrower’s obligations under the
Security Instruments referred to in clauses THIRD, FOURTH, FIFTH, or SIXTH of
Section 3.4(b)(i) is determined to be unenforceable or is disallowed (such
portion to be hereinafter referred to as a “Disallowed Obligation”),
then this Section 6.8(a) shall not be applied or construed in such manner
to enable the holder of any such Disallowed Obligation to receive any
Distribution on account of such Disallowed Obligation.  It is the intent of this Section 6.8(a)
to establish an alternative mechanism to preserve as among the parties hereto
the distribution priorities and the sharing calculation formulas set forth in
Section 3.4(b) the same as if this Agreement had been given effect among
the parties hereto and the same as if the Secured Obligations were allowed or
enforced against the Borrower in accordance with their terms.  It is not, however, the intent of this
Section 6.8(a) to enable any party hereto to receive or retain any
Distribution with respect to any Disallowed Obligation to the extent such
Disallowed Obligation has been disallowed or is otherwise determined to be
unenforceable as against the Borrower.

 

(b)                                 If
in connection with a Bankruptcy Event of the Borrower (i) the fees and expenses
of the Collateral Agent referred to in clause FIRST of Section 3.4(b)(i)
are determined to be unenforceable or are disallowed, in whole or in part, each
Secured Party agrees to pay its Indemnity Share of such fees and expenses.

 

(c)                                  Except
to the extent contemplated by clauses (a) and (b) hereof, in case any one or
more of the provisions contained in this Agreement shall be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not in any way be affected or
impaired thereby.

 

Section 6.9                                   Terms of Agreement.

 

This
Agreement shall terminate when all Secured Obligations are paid in full and
such payments are not subject to any possibility of revocation or rescission or
until all of the Secured Parties hereto mutually agree in a writing to
terminate this Agreement.

 

Section 6.10                            Delivery
Payments.

 

Notwithstanding
anything to the contrary contained in any of the Subject Documents, all
Distributions shall be delivered by the Borrower and each Secured Party to the
Collateral Agent for distribution to the Secured Parties pursuant to the terms
and conditions set forth herein.

 

Section 6.11                            Reimbursement/Indemnification
by Borrower.

 

(a)                                  The
Borrower agrees to pay to the Collateral Agent, from time to time upon demand,
all reasonable fees, costs and expenses of the Collateral Agent (including the
reasonable fees and  charges of counsel)
(i) arising in connection with the administration or enforcement of any of the
provisions of this Agreement or the Security Instruments, (ii) incurred or
required to be advanced in connection with the administration of the
Collateral,

 

16

 

the sale or other
disposition of the Collateral pursuant to any Security Instruments and the
preservation, protection or defense of the Collateral Agent’s rights under this
Agreement and the Security Instruments, or (iii) incurred by the Collateral
Agent in connection with the resignation of the Collateral Agent pursuant to
Section 2.9 hereof.

 

(b)                                 The
Borrower agrees to indemnify each Agent Party in its capacity as such from and
against any Indemnified Liabilities; provided  that, the Borrower
shall not be liable for the payment of any portion of such Indemnified Liabilities
resulting solely from an Agent’s Party’s gross negligence or willful
misconduct.

 

 

[Signatures
on following pages]

 

17

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed
as of the date first above written.

 

	
  COLLATERAL
  AGENT:

  
	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A., in its
  capacity as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

Address
for Notice to Bank of America, N.A., in its capacity as Collateral Agent:

 

Ramon Garcia, Agency
Management Officer

GGIB Agency Management Central

Bank of America

901 Main St.

Dallas, TX  75202-3714

Telephone:  (214) 209-4126

Fax:                           (214)
290-9520

E-mail:             ramon.garcia@bankofamerica.com

 

18

 

	
  REVOLVER
  AGENT:

  
	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A., in its
  capacity as Revolver Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

Address
for Notice to Bank of America, N.A., in its capacity as Revolver Agent:

 

Ramon Garcia,
Agency Management Officer

GGIB Agency
Management Central

Bank of America

901 Main St.

Dallas, TX  75202-3714

Telephone:  (214) 209-4126

Fax:                           (214)
290-9520

E-mail:             ramon.garcia@bankofamerica.com

 

19

 

	
  TERM LOAN
  AGENT:

  
	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A., in its
  capacity as Term Loan Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

Address
for Notice to Bank of America, N.A., in its capacity as Term Loan Agent:

 

Ramon Garcia,
Agency Management Officer

GGIB Agency
Management Central

Bank of America

901 Main St.

Dallas, TX  75202-3714

Telephone:  (214) 209-4126

Fax:                           (214)
290-9520

E-mail:             ramon.garcia@bankofamerica.com

 

20

 

	
  REVOLVING LENDERS:

  	
  BANK OF AMERICA, N.A.

  individually in its capacity as a

  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

Address for Notice to
Bank of America, N.A., in its capacity as a Revolving Lender (for
credit-related matters):

 

Bank
of America, N.A.

231
South LaSalle Street

M/C:  IL1-231-10-35

Chicago,
IL  60697

Attention:
Matthew W. Sadler, Vice President, Global Portfolio Management, Real Estate

Phone:  (312) 828-7107

Fax:  (312) 974-4970

E-mail:  matthew.w.sadler@bankofamerica.com

 

Address for Notice to
Bank of America, N.A., in its capacity as a Revolving Lender (for administrative matters):

 

Bank
of America, N.A.

231
South LaSalle Street

Mail
code:  IL1-231-10-30

Chicago,
IL 60697

Attention:
Charlene E. Wright-Jones, Assistant Vice President

Phone:  312-828-4160

Fax:  312-828-3950

E-mail:  charlene.wright-jones@bankofamerica.com

 

21

 

	
  TERM LOAN LENDERS:

  	
  BANK OF AMERICA, N.A.

  individually in its capacity as a

  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

Address for Notice to
Bank of America, N.A., in its capacity as a Term Loan Lender (for
credit-related matters):

 

Bank
of America, N.A.

231
South LaSalle Street

M/C:  IL1-231-10-35

Chicago,
IL  60697

Attention:
Matthew W. Sadler, Vice President, Global Portfolio Management, Real Estate

Phone:  (312) 828-7107

Fax:  (312) 974-4970

E-mail:  matthew.w.sadler@bankofamerica.com

 

Address for Notice to
Bank of America, N.A., in its capacity as a Term Loan Lender (for administrative matters):

 

Bank
of America, N.A.

231
South LaSalle Street

Mail
code:  IL1-231-10-30

Chicago,
IL 60697

Attention:
Charlene E. Wright-Jones, Assistant Vice President

Phone:  312-828-4160

Fax:  312-828-3950

E-mail:  charlene.wright-jones@bankofamerica.com

 

22

 

	
  PRINCIPAL BORROWER:

  	
  U.S.  RESTAURANT  PROPERTIES
  OPERATING L.P.

  
	
   

  	
   

  
	
   

  	
  By:  USRP MANAGING, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  GENERAL SPE:

  	
  USRP FUNDING 2002-A, L.P.

  
	
   

  	
   

  
	
   

  	
  By:  USRP (SFGP) 2, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  S&C:

  	
  USRP (S&C), LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  HCI:

  	
  USRP/HCI PARTNERSHIP 1, L.P.

  
	
   

  	
   

  
	
   

  	
  By:  USRP (JV1), LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
  JV1:

  	
  USRP (JV1), LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  USRP Holding:

  	
  USRP HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  GENERAL PARTNER:

  	
  USRP MANAGING, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  USRP REIT:

  	
  U.S. RESTAURANT PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

23

 

	
  SUBSIDIARY

  GUARANTORS:

  	
  ARKANSAS RESTAURANTS #10, L.P., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: North
  American Restaurant Management, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  RESTAURANT PROPERTY PARTNERS, L.P.,
  a Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: Restaurant
  Funding, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  USRP (66), LTD., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: USRP GP1,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  USRP (FAIN 10), L.P., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: USRP GP5,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  USRP (KATY), L.P., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: USRP GP8,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  USRP (PAC), L.P., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: USRP (Cap),
  Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

24

 

	
   

  	
  USRP (QUEST), L.P., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: USRP GP4,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  USRP (SAN ANTONIO), LTD., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: USRP GP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  USRP (T&C), L.P., a
  Texas limited partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By: USRP GP3,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  BULLDOG MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NORTH AMERICAN RESTAURANT
  MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RESTAURANT FUNDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PINNACLE RESTAURANT GROUP, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (ACQUISITION), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
							

 

25

 

	
   

  	
  USRP (BC), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (BILL), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (CAL), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (CAP), INC. a
  Texas corporation

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (CARROLL), LLC,
  a Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (CENTRAL AVENUE), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (CHRIS), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (DEEDEE), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (DON), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

26

 

	
   

  	
  USRP (FINANCE), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (FRED), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (GANT1), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (GANT2), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (GOLD), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP GP, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP GP1, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP GP3, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP GP4, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

27

 

	
   

  	
  USRP GP5, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP GP6, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP GP7, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP GP8, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (ILLINOIS), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (JENNIFER), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (JONES), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (JV2), LLC, a
  Texas limited liability company(1)

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

(1)  NOTE – ALTHOUGH INCLUDED IN THE EXECUTED
SIGNATURE PAGES OF THIS DOCUMENT, THE JV2 ENTITY HAS BEEN DELETED AS A
GUARANTOR UNDER EACH OF THE REVOLVING CREDIT AGREEMENT AND THE TERM LOAN
AGREEMENT– IT IS NOT A CONSOLIDATED PARTY AND WAS INCLUDED BY THE BORROWER IN
ITS LIST OF SUNSIDIARY GUARANTORS IN ERROR

 

28

 

	
   

  	
  USRP (MANAGER), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (MIDON), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (MINNESOTA), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (MISSOURI), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (MOLLY), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (PALMA), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (PAT), LLC,
  a Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (POPEYE’S), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (RIBBIT), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

29

 

	
   

  	
  USRP (SARAH), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (ST.  LOUIS), LLC, a Texas limited liability
  company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (STEVE), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (SUSI), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (SYBRA), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (VALERIE), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

30

 

	
   

  	
  PINNACLE RESTAURANT GROUP II, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (CAROLINA), LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Restaurant
  Acquisition Corp.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (LINCOLN), LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Restaurant
  Acquisition Corp.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (NORMAN), LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Restaurant
  Acquisition Corp.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  U.S. RESTAURANT PROPERTIES
  DEVELOPMENT L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Restaurant
  Contractor Corp.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RESTAURANT RENOVATION PARTNERS,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Restaurant
  Acquisition Corp.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  RESTAURANT ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

31

 

	
   

  	
  RESTAURANT CONTRACTOR CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP RENOVATION CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (Green), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (Martin), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (SFGP)2, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (SHOPORT)1, LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (Warren), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (KRUSE), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (PETERS), LLC, a
  Texas limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

32

 

	
   

  	
  USRP (ADAMS), L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  USRP GP7, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (Maier), L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  USRP GP6, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  USRP (SHO)1, L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  USRP (SHOPORT)1,
  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Stacy M.
  Riffe

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stacy M. Riffe

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address for
  Notice to All/Any Credit Parties:

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S.  Restaurant Properties Operating, L.P.

  	
   

  
	
   

  	
  c/o U.S. Restaurant Properties, Inc.

  	
   

  
	
   

  	
  12240 Inwood Road, Suite 300

  	
   

  
	
   

  	
  Dallas, TX 75244

  	
   

  
	
   

  	
  Attn:  Stacy M. Riffe, CFO

  	
   

  
	
   

  	
  Telephone: (972) 387-1487, ext 112

  	
   

  
	
   

  	
  Telecopy: (972) 490-9119

  	
   

  
								

 

[remainder of page left intentionally blank – additional schedules and
exhibits to follow]

 

33

 

Schedule      – Form
of ICA Joinder Agreement

 

ICA
JOINDER AGREEMENT, dated
                              ,
200    , among BANK OF AMERICA, N.A. as Collateral Agent
and
                                                  ,
as transferee of [Revolving Loan Obligations and Revolving Loans / Term Loan Obligations
and Term Loans] in aggregate amount of
                          
[provide
Commitment and Loan amounts for Revolving Lenders and Loan amount for Term Loan
Lenders] (the “Transferred Obligation”) (the “Transferee”).

 

1.                                       In
accordance with Section 6.7 of the Intercreditor Agreement dated as of
November 4, 2003 among BANK OF AMERICA, N.A. as Collateral Agent,
U.S.  RESTAURANT PROPERTIES OPERATING
L.P., a Delaware limited partnership (“USRP Operating” or the “Principal
Borrower”), USRP FUNDING 2002-A, L.P., a Texas limited partnership (the “General
SPE”); USRP (S&C), LLC, a Texas limited liability company (“S&C”),
USRP (JV1), LLC, a Texas limited liability company (“JV1”), USRP/HCI
PARTNERSHIP 1, L.P., a Texas limited partnership (“HCI”),USRP HOLDING
CORP., a Texas corporation (“USRP Holding”; and together with the Principal
Borrower, the General SPE, S&C, JV1 and HCI, the “Borrower”), the
Guarantors referenced therein and certain of the Borrowers’ creditors listed
therein, and their successors and assigns (the “Intercreditor Agreement”),
the Transferee agrees to be bound by and have the rights and obligations of a
party to, the Intercreditor Agreement in all respects as if it were an original
party thereto, and, in accordance with Section 6.3 of the Intercreditor
Agreement, shall be a “Secured Party” in accordance with the terms thereof.

 

2.                                       Sections
6.5, 6.6 and 6.9 to the Intercreditor Agreement are hereby incorporated herein
by reference.

 

3.                                       For
the purpose of Section 6.2 of the Intercreditor Agreement, the address for
notices to the Transferee shall be as set forth below its signature.

 

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

 

	 
	
   

  	
  [TRANSFEREE]

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	 
	
   

  	
  Name:

  	
   

  	 

	 
	
   

  	
  Title:

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	 
	
   

  	
  Address for
  notice:

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	 
	
   

  	
   

  	
   

  	 

	
   

  
	
  [Collateral
  Agent]

  
	
   

  
	
   

  	
   

  
	
  Name:

  
	
  Title:

  
						

 

34Exhibit 10.7

 

PLEDGE
AGREEMENT

[U.S.
RESTAURANT PROPERTIES OPERATING, L.P. PLEDGE AGREEMENT]

 

THIS PLEDGE AGREEMENT,
dated as of November 4, 2003 (this “Pledge Agreement”) is made by
(a) U.S.
RESTAURANT PROPERTIES OPERATING, L.P., a Delaware limited partnership,
as pledgor (in such capacity, the “Pledgor”), and (b) BANK OF
AMERICA, N.A., in its capacity as Agent (in such capacity, the “Collateral
Agent”) for the Secured Parties (as defined in Section 1 hereof).

 

RECITALS

 

WHEREAS, pursuant
to the terms of that certain Credit Agreement dated as of November 4, 2003
by and among U.S.  RESTAURANT PROPERTIES
OPERATING L.P., a Delaware limited partnership (“USRP Operating”
or the “Principal Borrower”), USRP FUNDING 2002-A, L.P., a Texas limited
partnership (the “General SPE), USRP (S&C), LLC, a Texas limited
liability company (“S&C”), USRP (JV1), LLC, a Texas limited liability
company (“JV1”), USRP/HCI PARTNERSHIP 1, L.P., a Texas
limited partnership (“HCI”), USRP HOLDING CORP., a Texas corporation (“USRP
Holding”; collectively, with USRP Operating, the General SPE, S&C, JV1
and HCI, the “Borrower”), USRP MANAGING, INC., a Delaware corporation
and the general partner of USRP Operating, as a Guarantor (the “General
Partner”), U.S. RESTAURANT PROPERTIES, INC., a Maryland corporation, as a
Guarantor (“USRP REIT”), the Subsidiary Guarantors (as defined therein,
collectively, with the General Partner and the USRP REIT, the “Guarantors”),
the Lenders (as defined therein; provided, that such parties shall be referred
to herein as the “Revolving Lenders”), BANK OF AMERICA, N.A., as
Agent for the Revolving Lenders (in such capacity, the “Revolver Agent”)
and BANC
OF AMERICA SECURITIES LLC, as Sole Lead Arranger and Sole
Book Manager (as the same may have be further amended, restated,
supplemented or otherwise modified prior to the date hereof, the “Revolving
Credit Agreement”), the Revolving Lenders have agreed to make loans upon
the terms and subject to the conditions set forth therein;

 

WHEREAS, pursuant
to the terms of that certain Term Loan Agreement dated as of November 4,
2003 by and among the Borrower, the Guarantors, the Lenders (as defined
therein; provided, that such parties shall be referred to herein as the “Term
Loan Lenders”), BANK OF AMERICA, N.A., as Agent for the Term Loan Lenders
(in such capacity, the “Term Loan Agent”) and BANC OF AMERICA SECURITIES
LLC, as Sole Lead Arranger and Sole Book Manager (as the same may have be
further amended, restated, supplemented or otherwise modified prior to the date
hereof, the “Term Loan Agreement”), the Term Loan Lenders have agreed to
make loans upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the
Collateral Agent, Revolver Agent, Revolving Lenders, Term Loan Agent, Term Loan
Lenders, the Borrower and the Guarantors (collectively, the Borrower and
Guarantors shall be referred to herein as the “Credit Parties”) have
entered into that certain Intercreditor Agreement dated as of November 4,
2003 (the “Intercreditor Agreement”) pursuant to which the Revolver
Agent, Revolving Lenders, Term Loan Agent and Term Loan Lenders have agreed to
share, pursuant to the terms and conditions set forth therein, the collateral
and payments made or delivered in connection with the credit facilities
referenced in the Revolving Credit Agreement and Term Loan Agreement and the
Collateral Agent has been appointed as the agent for such parties in
administering such sharing provisions and to hold all collateral delivered in
connection with such credit facilities for the benefit of the Secured Parties;

 

WHEREAS, it is a
condition precedent to the effectiveness of the Revolving Credit Agreement and
the Term Loan Agreement and the documents executed in connection with each of
them that the Pledgor shall have executed and delivered this Pledge Agreement
to the Collateral Agent for the ratable benefit of the Secured Parties in
accordance with the Intercreditor Agreement; and

 

NOW, THEREFORE, in
consideration of these premises and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       Definitions.
Capitalized terms used herein but not otherwise defined shall have the meanings
given to such terms in the Revolving Credit Agreement (or, to the extent the Revolving
Credit Agreement has been

 

 

terminated or is of no
further force and effect, the Term Loan Agreement). The following terms which
are defined in the Uniform Commercial Code as in effect in the State of North
Carolina as of the date hereof are used herein as so defined:  Accession, Financial Asset, Proceeds and
Security.  In addition, the following
terms have the following meanings:

 

“Secured Obligations” means, without
duplication, (i) all of the obligations of the Credit Parties to any Secured Party,
whenever arising, under the Revolving Credit Agreement, the Term Loan Agreement
or any of the Subject Documents (including, but not limited to, any interest
accruing after the occurrence of a Bankruptcy Event with respect to any Credit
Party, regardless of whether such interest is an allowed claim under the
Bankruptcy Code), whether now existing or hereafter arising, due or to become
due, direct or indirect, absolute or contingent, howsoever evidenced, created,
held or acquired, whether primary, secondary, direct, contingent, or joint and
several, as such obligations may be amended, modified, increased, extended,
renewed or replaced from time to time, (ii) all of the obligations of the
Credit Parties to any Secured Party under any Hedging Agreement, and (iii) all
costs and expenses incurred in connection with enforcement and collection of
the foregoing obligations, including reasonable attorneys’ fees and the
allocated cost of internal counsel.

 

“Secured Parties” means a collective reference
to the Collateral Agent, Revolver Agent, Revolving Lenders, Term Loan Agent,
Term Loan Lenders and the Sole Lead Arranger and the Sole Book Manager under
the Revolving Credit Agreement and Term Loan Agreement.

 

“Subject Documents” shall mean a collective
reference to the Revolving Credit Agreement, the Term Loan Agreement, the
Intercreditor Agreement and all other documents, instruments or agreements from
time to time constituting “Credit Documents” as such term is used in both the
Revolving Credit Agreement and the Term Loan Agreement (to the extent such
documents have not been terminated and remain in full force and effect).

 

“UCC”
means the Uniform Commercial Code, as in effect in the State of North Carolina.

 

2.                                       Pledge
and Grant of Security Interest. To secure the prompt payment and
performance in full when due, whether by lapse of time, acceleration, mandatory
prepayment or otherwise, of the Secured Obligations, Pledgor hereby grants,
pledges and assigns to the Collateral Agent, for the benefit of the Secured Parties,
a continuing security interest in, and a right to set off against, any and all
right, title and interest of Pledgor in and to the following, whether now owned
or existing or owned, acquired, or arising hereafter (collectively, the “Pledged
Collateral”):

 

(a)                                  Pledged
Capital Stock.  (i) 100% of the
issued and outstanding Capital Stock owned by Pledgor in the entities set forth
on Schedule 2(a) attached hereto and (ii) 65% of the issued and
outstanding classes of Capital Stock entitled to vote (within the meaning of
Treas. Reg. Section 1.956 2(c)(2)) (“Voting Equity”) and 100% of
the issued and outstanding classes of Capital Stock not entitled to vote
(within the meaning of Treas. Reg. Section 1.956 2(c)(2)) (“Non Voting
Equity”) owned by the Pledgor of each foreign Subsidiary of the Pledgor set
forth on Schedule 2(b), in each case together with the certificates
(or other agreements or instruments), if any, representing such Capital Stock
and all options and other rights, contractual or otherwise, with respect
thereto (collectively, together with the Capital Stock described in Sections
2(b) and 2(c) below, the “Pledged Capital Stock”), including, but not
limited to, the following:

 

(A)                              all
shares, securities, partnership interests, membership interests or other equity
interests representing a dividend on any of the Pledged Capital Stock, or
representing a distribution or return of capital upon or in respect of the
Pledged Capital Stock, or resulting from a stock split, revision,
reclassification or other exchange therefor, and any subscriptions, warrants,
rights or options issued to the holder of, or otherwise in respect of, the
Pledged Capital Stock; provided, however, that such Pledgor shall not be
required to deliver more than 65% of the Voting Equity of any Person that is a
foreign Subsidiary of the Pledgor; and

 

(B)                                without
affecting the obligations of the Pledgor under any provision prohibiting such
action hereunder or under any Subject Document, in the event of any
consolidation or merger

 

1

 

involving the issuer of any Pledged Capital Stock and
in which such issuer is not the surviving entity, the Capital Stock (in the
applicable percentage specified in Section 2(a) above) of the successor
entity formed by or resulting from such consolidation or merger.

 

(b)                                 Additional
Shares.  (i) 100% of the issued and
outstanding Capital Stock of any Person which is hereafter listed on Schedule 2(a),
as amended from time to time and (ii) 65% of the Voting Equity and 100% of the
Non Voting Equity owned by the Pledgor of any Person which is hereafter listed
on Schedule 2(b), as amended from time to time, in each case
together with the certificates (or other agreements or instruments), if any,
representing such Capital Stock.

 

(c)                                  Proceeds.
All Accessions and all Proceeds of any and all of the foregoing, including,
without limitation, all cash and non-cash proceeds and products of the
foregoing, however and whenever acquired and in whatever form.

 

Without
limiting the generality of the foregoing, it is hereby specifically understood
and agreed that Pledgor may from time to time hereafter deliver additional
shares of Capital Stock to the Collateral Agent as collateral security for the
Secured Obligations.  Upon delivery to
the Collateral Agent, such additional Capital Stock shall be deemed to be part
of the Pledged Collateral and shall be subject to the terms of this Pledge
Agreement whether or not Schedule 2(a) is amended to refer to such
additional Capital Stock.

 

3.                                       Security
for Secured Obligations. The security interest created hereby in the
Pledged Collateral constitutes continuing collateral security for the Secured
Obligations.

 

4.                                       Delivery
of the Pledged Collateral; Perfection of Security Interest.

 

(a)                                  Delivery
of Certificates.  Pledgor shall
deliver to the Collateral Agent (i) simultaneously with or prior to the
execution and delivery of this Pledge Agreement, all certificates representing
the Pledged Capital Stock of Pledgor and (ii) promptly upon the receipt thereof
by or on behalf of Pledgor, all other certificates and instruments constituting
Pledged Collateral of Pledgor.  Prior to
delivery to the Collateral Agent, all such certificates and instruments
constituting Pledged Collateral of Pledgor shall be held in trust by Pledgor
for the benefit of the Collateral Agent pursuant hereto.  All such certificates shall be delivered in
suitable form for transfer by delivery or shall be accompanied by duly executed
instruments of transfer or assignment in blank, substantially in the form
provided in Exhibit 4(a) attached hereto with appropriate reference made
therein to capital stock, partnership interests or membership interests, as
appropriate.

 

(b)                                 Additional
Securities.  If Pledgor shall
receive by virtue of its being, becoming or having been the owner of any
Pledged Collateral, any (i) certificate, including without limitation, any
certificate representing a dividend or distribution in connection with any
increase or reduction of capital, reclassification, merger, consolidation, sale
of assets, combination of shares or membership or equity interests, stock
splits, spin-off or split-off, promissory notes or other instrument; (ii)
option or right, whether as an addition to, substitution for, or an exchange
for, any Pledged Collateral or otherwise; (iii) dividends payable in
securities; or (iv) distributions of securities or other equity interests
in connection with a partial or total liquidation, dissolution or reduction of
capital, capital surplus or paid-in surplus, then, subject to the percentage
limitations set forth in Section 2(a) above, Pledgor shall receive such
certificate, instrument, option, right or distribution in trust for the benefit
of the Secured Parties, shall segregate it from Pledgor’s other property and
shall deliver it forthwith to the Collateral Agent in the exact form received
together with any necessary endorsement and/or appropriate stock power duly
executed in blank, substantially in the form provided in Exhibit 4(a),
to be held by the Collateral Agent as Pledged Collateral and as further
collateral security for the Secured Obligations.

 

(c)                                  Financing
Statements.  Pledgor shall execute
and deliver to the Collateral Agent such UCC or other applicable financing
statements as may be reasonably requested by the Collateral Agent in order to
perfect and protect the security interest created hereby in the Pledged
Collateral of Pledgor.

 

3

 

(d)                                 Control.  If necessary to perfect the Secured Parties’
security interest in any Pledged Collateral consisting of uncertificated
Pledged Capital Stock, upon request of the Collateral Agent, (i) the Pledgor
shall, and shall cause each issuer of such uncertificated Pledged Capital Stock
(each an “Issuer”) to, execute a control agreement in form and substance
reasonably acceptable to the Collateral Agent. 
Pledgor hereby authorizes and instructs each Issuer that is a party to
this Pledge Agreement to comply with any instruction received by it from the
Collateral Agent in writing that (y) states that an Event of Default has
occurred and is continuing and (z) is otherwise in accordance with the terms of
this Pledge Agreement, without any other or further instructions from Pledgor,
and Pledgor agrees to indemnify such Issuer for any loss, damage or liability
incurred by such Issuer in acting upon such instructions of the Collateral
Agent.

 

5.                                       Representations
and Warranties.  Pledgor hereby
represents and warrants to the Collateral Agent, for the benefit of the Secured
Parties, that:

 

(a)                                  Authorization
of Pledged Capital Stock.  The
Pledged Capital Stock is duly authorized and validly issued, is fully paid and,
with respect any Pledged Capital Stock consisting of stock of a corporation,
nonassessable and is not subject to the preemptive rights of any Person.  All other shares of Capital Stock
constituting Pledged Collateral will be duly authorized and validly issued,
fully paid and, with respect any Pledged Capital Stock consisting of stock of a
corporation, nonassessable and not subject to the preemptive rights of any
Person.

 

(b)                                 Title.  Pledgor has good and indefeasible title to
the Pledged Collateral of Pledgor and will at all times be the legal and
beneficial owner of such Pledged Collateral free and clear of any Lien, other
than Permitted Liens.  There exists no
“adverse claim” within the meaning of Section 8-102 of the UCC with
respect to the Pledged Capital Stock of Pledgor.

 

(c)                                  Exercising
of Rights.  The exercise by the
Collateral Agent of its rights and remedies hereunder will not violate any law
or governmental regulation or any material contractual restriction binding on
or affecting Pledgor or any of its property.

 

(d)                                 Pledgor’s
Authority.  No authorization,
approval or action by, and no notice or filing with any Governmental Authority
or with the issuer of any Pledged Capital Stock is required either (i) for the
pledge made by Pledgor or for the granting of the security interest by Pledgor
pursuant to this Pledge Agreement or (ii) for the exercise by the Collateral
Agent or the Secured Parties of their rights and remedies hereunder (except as
may be required by laws affecting the offering and sale of securities).

 

(e)                                  Security
Interest/Priority.  This Pledge
Agreement creates a valid security interest in favor of the Collateral Agent,
for the benefit of the Secured Parties, in the Pledged Collateral.  The taking possession by the Collateral
Agent of the certificates, if any, representing the Pledged Capital Stock and
all other certificates and instruments constituting Pledged Collateral will
perfect and establish the first priority of the Collateral Agent’ security
interest in the Pledged Capital Stock and such certificates and instruments
and, upon the filing of UCC financing statements or registration of the
Collateral Agent’ security interest on the books and records of the Issuers of
any uncertificated Pledged Capital Stock, the Collateral Agent shall have a
first priority perfected security interest in all other Pledged Collateral
represented by such Pledged Capital Stock. 
Except as set forth in this Section 5(e), no action is necessary to
perfect or otherwise protect such security interest.

 

(f)                                    Partnership
and Membership Interests.  Except as
previously disclosed to the Collateral Agent, none of the Pledged Shares consisting
of partnership or limited liability company interests (i) is dealt in or traded
on a securities exchange or in a securities market, (ii) by its terms expressly
provides that it is a security governed by Article 8 of the UCC, (iii) is
an investment company security, (iv) is held in a securities account or (v)
constitutes a Security or a Financial Asset.

 

(g)                                 No
Other Capital Stock.  Pledgor owns
no Capital Stock in entity(ies) listed on Schedule 2(a) and Schedule 2(b)
other than as set forth on such schedules.

 

4

 

(h)                                 Partnership
and Limited Liability Company Interests. 
Except as previously disclosed to the Collateral Agent, none of the
Pledged Capital Stock consisting of partnership or limited liability company
interests (i) is dealt in or traded on a securities exchange or in a securities
market, (ii) by its terms expressly provides that it is a security governed by
Article 8 of the UCC, (iii) is an investment company security, (iv) is
held in a securities account or (v) constitutes a “security” or a “financial
asset” as such terms are defined in Article 8 of the UCC.

 

6.                                       Covenants.  Pledgor hereby covenants, that until such
time as the Secured Obligations are fully satisfied, Pledgor shall:

 

(a)                                  Books
and Records.  Mark its books and
records (and shall cause the issuer of the Pledged Capital Stock of Pledgor to
mark its books and records) to reflect the security interest granted to the
Collateral Agent, for the benefit of the Secured Parties, pursuant to this
Pledge Agreement.

 

(b)                                 Defense
of Title.  Warrant and defend title
to and ownership of the Pledged Collateral of Pledgor at its own expense
against the claims and demands of all other parties claiming an interest
therein, keep the Pledged Collateral free from all Liens, except for Permitted
Liens, and not sell, exchange, transfer, assign, lease or otherwise dispose of
Pledged Collateral of Pledgor or any interest therein, except as expressly
permitted under the Subject Documents.

 

(c)                                  Further
Assurances.  Promptly execute and
deliver at its expense all further instruments and documents and take all
further action that may be necessary and desirable or that the Collateral Agent
may reasonably request in order to (i) perfect and protect the security interest
created hereby in the Pledged Collateral of Pledgor (including, without
limitation, the execution and filing of UCC financing statements and any and
all action necessary to satisfy the Collateral Agent that the Collateral Agent
has obtained a first priority perfected security interest in all Pledged
Capital Stock); (ii) enable the Collateral Agent to exercise and enforce its
rights and remedies hereunder in respect of the Pledged Collateral of Pledgor;
and (iii) otherwise effect the purposes of this Pledge Agreement, including,
without limitation and if requested by the Collateral Agent upon the occurrence
or during the continuance of an Event of Default, delivering to the Collateral
Agent irrevocable proxies in respect of the Pledged Collateral of Pledgor.  To that end, Pledgor agrees that the
Collateral Agent may file one or more financing statements disclosing the
Collateral Agent’s security interest in any or all of the Pledged Collateral of
Pledgor without Pledgor’s signature thereon, and further Pledgor also hereby
irrevocably makes, constitutes and appoints the Collateral Agent, its nominee
or any other person whom the Collateral Agent may designate, as Pledgor’s
attorney-in-fact with full power and for the limited purpose to sign in the
name of Pledgor any such financing statements (including renewal statements),
amendments and supplements, notices or any similar documents that in the
Collateral Agent’s reasonable discretion would be necessary, appropriate or
convenient in order to perfect and maintain perfection of the security
interests granted hereunder, such power, being coupled with an interest, being
and remaining irrevocable so long as the Secured Obligations remain unpaid and
until the commitments relating thereto shall have been terminated.  Pledgor hereby agrees that a carbon,
photographic or other reproduction of this Pledge Agreement or any such
financing statement is sufficient for filing as a financing statement by the
Collateral Agent without notice thereof to Pledgor wherever the Collateral
Agent may in its sole discretion desire to file the same.  In the event for any reason the law of any
jurisdiction other than [the State of Texas] becomes or is
applicable to the Pledged Collateral of Pledgor or any part thereof, or to any
of the Secured Obligations, Pledgor agrees to execute and deliver all such
instruments and to do all such other things as the Collateral Agent reasonably
deems necessary to preserve, protect and enforce the security interests of the
Collateral Agent under the law of such other jurisdiction (and, if Pledgor
shall fail to do so promptly upon the request of the Collateral Agent, then the
Collateral Agent may execute any and all such requested documents on behalf of
Pledgor pursuant to the power of attorney granted hereinabove).  If any Pledged Collateral is in the
possession or control of Pledgor’s agents and the Collateral Agent so requests,
Pledgor agrees to notify such agents in writing of the Collateral Agent’s
security interest therein and, upon the Collateral Agent’s request, instruct
them to hold all such Pledged Collateral for its account and subject to the
Collateral Agent’s instructions. 
Pledgor agrees to mark its books and records to reflect the security
interest of the Collateral Agent in the Pledged Collateral.

 

5

 

(d)                                 Amendments.  Not make or consent to any amendment or
other modification or waiver with respect to any of the Pledged Collateral of
Pledgor or enter into any agreement or allow to exist any restriction with
respect to any of the Pledged Collateral of Pledgor other than pursuant hereto
or as may be permitted under the Subject Documents.

 

(e)                                  Compliance
with Securities Laws.  File all
reports and other information now or hereafter required to be filed by Pledgor
with the United States Securities and Exchange Commission and any other state,
federal or foreign agency in connection with the ownership of the Pledged
Collateral of Pledgor.

 

(f)                                    Issuance,
Acquisition or Encumbrance of Capital Stock.  Not issue or acquire any Capital Stock or execute any warrants,
pledges or similar instruments pledging or in any manner encumbering its
currently outstanding Capital Stock except to the extent required by the
Subject Documents.

 

7.                                       Performance
of Obligations and Advances by Collateral Agent. On failure of Pledgor to
perform any of the covenants and agreements contained herein, the Collateral
Agent may, at its sole option and in its reasonable discretion, perform or
cause to be performed the same and in so doing may expend such sums as the
Collateral Agent may reasonably deem advisable in the performance thereof,
including, without limitation, the payment of any insurance premiums, the
payment of any taxes, a payment to obtain a release of a Lien or potential Lien,
expenditures made in defending against any adverse claim and all other
expenditures which the Collateral Agent may make for the protection of the
security hereof or which may be compelled to make by operation of law.  All such sums and amounts so expended shall
be repayable by the Pledgor on a joint and several basis promptly upon timely
notice thereof and demand therefor, shall constitute additional Secured
Obligations and shall bear interest from the date said amounts are expended at
the default rate specified in Section 3.1 of the Revolving Credit
Agreement for loans outstanding thereunder and bearing interest based on the
Base Rate or, if such document is of no further force and effect or has been
terminate, as specified in Section 3.1 of the Term Loan Agreement
for loans outstanding thereunder.  No
such performance of any covenant or agreement by the Collateral Agent on behalf
of Pledgor, and no such advance or expenditure therefor, shall relieve the
Pledgor of any default under the terms of this Pledge Agreement or any of the
Subject Documents or any other documents relating to the Secured
Obligations.  The Collateral Agent may
make any payment hereby authorized in accordance with any bill, statement or
estimate procured from the appropriate public office or holder of the claim to
be discharged without inquiry into the accuracy of such bill, statement or
estimate or into the validity of any tax assessment, sale, forfeiture, tax
lien, title or claim except to the extent such payment is being contested in
good faith by Pledgor in appropriate proceedings and against which adequate
reserves are being maintained in accordance with GAAP.

 

8.                                       Events
of Default. The occurrence of an event which under the Revolving Credit
Agreement or Term Loan Agreement would constitute an Event of Default shall be
an event of default hereunder (an “Event of Default”).

 

9.                                       Remedies.

 

(a)                                  General
Remedies. Upon the occurrence of an Event of Default and during the
continuation thereof, the Collateral Agent and the Secured Parties shall have,
in addition to the rights and remedies provided herein, in the Subject
Documents or in any other documents relating to the Secured Obligations, or by
law (including, without limitation, levy of attachment or garnishment), the
rights and remedies of a secured party under the UCC of the jurisdiction
applicable to the affected Pledged Collateral.

 

(b)                                 Sale
of Pledged Collateral.  Upon the
occurrence of an Event of Default and during the continuation thereof, without
limiting the generality of this Section and without notice, the Collateral
Agent may, sell or otherwise dispose of or realize upon the Pledged Collateral,
or any part thereof, in one or more parcels, at public or private sale, at any
exchange or broker’s board or elsewhere, at such price or prices and on such
other terms as the Collateral Agent may deem commercially reasonable, for cash,
credit or for future delivery or otherwise in accordance with applicable
law.  To the extent permitted by law, any
Secured Party may in such event bid for the purchase of such securities.  Pledgor agrees that, to the extent notice of
sale shall be required by law and has not been waived by Pledgor, any
requirement of reasonable notice shall be met if notice, specifying the place
of any public sale or the time after which any private sale is to be made, is
personally served on or mailed postage prepaid to Pledgor in accordance with
the notice provisions of Section 11.1 of the Revolving Credit
Agreement (or, to the extent the same has been

 

6

 

terminated
or is otherwise ineffective as of such date, Section 11.1 of the
Term Loan Agreement) at least 10 days before the time of such sale.  The Collateral Agent shall not be obligated
to make any sale of Pledged Collateral of Pledgor regardless of notice of sale
having been given.  The Collateral Agent
may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned.

 

(c)                                  Private
Sale.  Upon the occurrence of an
Event of Default and during the continuation thereof, the Pledgor recognizes
that the Collateral Agent may deem it impracticable to effect a public sale of
all or any part of the Pledged Collateral and that the Collateral Agent may,
therefore, determine to make one or more private sales of any such Pledged
Collateral to a restricted group of purchasers who will be obligated to agree,
among other things, to acquire such Pledged Collateral for their own account,
for investment and not with a view to the distribution or resale thereof.  Pledgor acknowledges that any such private
sale may be at prices and on terms less favorable to the seller than the prices
and other terms which might have been obtained at a public sale and,
notwithstanding the foregoing, agrees that such private sale shall be deemed to
have been made in a commercially reasonable manner and that the Collateral
Agent shall have no obligation to delay sale of any such Pledged Collateral for
the period of time necessary to permit the issuer of such Pledged Collateral to
register such Pledged Collateral for public sale under the Securities Act of
1933.  Pledgor further acknowledges and
agrees that any offer to sell such Pledged Collateral which has been (i)
publicly advertised on a bona fide basis in a newspaper or other publication of
general circulation in the financial community of Charlotte, North Carolina (to
the extent that such offer may be advertised without prior registration under
the Securities Act of 1933), or (ii) made privately in the manner described
above shall be deemed to involve a “public sale” under the UCC, notwithstanding
that such sale may not constitute a “public offering” under the Securities Act
of 1933, and the Collateral Agent may, in such event, bid for the purchase of
such Pledged Collateral.

 

(d)                                 Retention
of Pledged Collateral. To the extent permitted under applicable law, in
addition to the rights and remedies hereunder, upon the occurrence of an Event
of Default, the Collateral Agent may, after providing the notices required by
Sections 9-620 and 9-621 of the UCC or otherwise complying with the
requirements of applicable law of the relevant jurisdiction, accept or retain
all or any portion of the Pledged Collateral in satisfaction of the Secured
Obligations.  Unless and until the
Collateral Agent shall have provided such notices, however, the Collateral
Agent shall not be deemed to have accepted or retained any Pledged Collateral
in satisfaction of any Secured Obligations for any reason.

 

(e)                                  Deficiency.  In the event that the proceeds of any sale,
collection or realization are insufficient to pay all amounts to which the
Collateral Agent or the Secured Parties are legally entitled, the Pledgor shall
be jointly and severally liable for the deficiency, together with interest
thereon at the default rate specified in Section 3.1 of the
Revolving Credit Agreement for loans outstanding thereunder and bearing
interest based on the Base Rate (or, if such document is of no further force
and effect or has been terminate, as specified in Section 3.1 of
the Term Loan Agreement for loans outstanding thereunder) and together with the
costs of collection and the reasonable fees of any attorneys employed by the
Collateral Agent to collect such deficiency. 
Any surplus remaining after the full payment and satisfaction of the
Secured Obligations shall be returned to the Pledgor or to whomsoever a court
of competent jurisdiction shall determine to be entitled thereto.

 

(f)                                    Partial
Exercise of Remedies/Failure to Exercise Remedies.  Pledgor hereby acknowledges and agrees that
(i) the Collateral Agent shall not, in any case, be obligated to exercise any
remedies contemplated hereunder, (ii) the Collateral Agent may, in their sole
discretion, exercise any remedy contemplated hereunder with respect to all or
any portion of the Pledged Collateral, and (iii) any failure by the Collateral
Agent upon an Event of Default hereunder to exercise its remedies with respect
to any portion or the whole of the Pledged Collateral shall not constitute a
waiver of its right to exercise such remedies at any point in the future during
such Event of Default or any later Event of Default.

 

10.                                 Rights
of the Collateral Agent.

 

(a)                                  Power
of Attorney.  In addition to other
powers of attorney contained herein, Pledgor hereby designates and appoints the
Collateral Agent, on behalf of the Secured Parties, and each of their

 

7

 

designees
or agents as attorney-in-fact of Pledgor, irrevocably and with power of
substitution, with authority to take any or all of the following actions upon
the occurrence and during the continuance of an Event of Default:

 

(i)                                     to
demand, collect, settle, compromise, adjust and give discharges and releases
concerning the Pledged Collateral of Pledgor, all as the Collateral Agent may
reasonably determine;

 

(ii)                                  to
commence and prosecute any actions at any court for the purposes of collecting
any of the Pledged Collateral of Pledgor and enforcing any other right in
respect thereof;

 

(iii)                               to defend, settle,
adjust or compromise any action, suit or proceeding brought and, in connection
therewith, give such discharge or release as the Collateral Agent may deem
reasonably appropriate;

 

(iv)                              to
pay or discharge taxes, liens, security interests, or other encumbrances levied
or placed on or threatened against the Pledged Collateral of Pledgor;

 

(v)                                 to
direct any parties liable for any payment under any of the Pledged Collateral
to make payment of any and all monies due and to become due thereunder directly
to the Collateral Agent or as the Collateral Agent shall direct;

 

(vi)                              to
receive payment of and receipt for any and all monies, claims, and other
amounts due and to become due at any time in respect of or arising out of any
Pledged Collateral of Pledgor;

 

(vii)                           to sign and endorse any
drafts, assignments, proxies, stock powers, verifications, notices and other
documents relating to the Pledged Collateral of Pledgor;

 

(viii)                        to execute and deliver all
assignments, conveyances, statements, financing statements, renewal financing
statements, pledge agreements, affidavits, notices and other agreements,
instruments and documents that the Collateral Agent may determine necessary in order
to perfect and maintain the security interests and liens granted in this Pledge
Agreement and in order to fully consummate all of the transactions contemplated
herein;

 

(ix)                                to
exchange any of the Pledged Collateral of Pledgor or other property upon any
merger, consolidation, reorganization, recapitalization or other readjustment
of the issuer thereof and, in connection therewith, deposit any of the Pledged
Collateral of Pledgor with any committee, depository, transfer agent, registrar
or other designated agency upon such terms as the Collateral Agent may
determine;

 

(x)                                   to
vote for a shareholder or member resolution, or to sign an instrument in
writing, sanctioning the transfer of any or all of the Pledged Capital Stock of
Pledgor into the name of the Collateral Agent or one or more of the Secured
Parties or into the name of any transferee to whom the Pledged Capital Stock of
Pledgor or any part thereof may be sold pursuant to Section 9 hereof; and

 

(xi)                                to
do and perform all such other acts and things as the Collateral Agent may
reasonably deem to be necessary, proper or convenient in connection with the
Pledged Collateral of Pledgor.

 

This
power of attorney is a power coupled with an interest and shall be irrevocable
for so long as any of the Credit Party Obligations are not fully
satisfied.  The Collateral Agent shall
be under no duty to exercise or withhold the exercise of any of the rights,
powers, privileges and options expressly or implicitly granted to the
Collateral Agent in this Pledge Agreement and shall not be liable for any
failure to do so or any delay in

 

8

 

doing
so.  The Collateral Agent shall not be
liable for any act or omission or for any error of judgment or any mistake of
fact or law in their individual capacities or their capacity as
attorney-in-fact except acts or omissions resulting from its gross negligence
or willful misconduct.  This power of
attorney is conferred on the Collateral Agent solely to protect, preserve and
realize upon its security interest in the Pledged Collateral.

 

(b)                                 Assignment
by the Collateral Agent.  The
Collateral Agent may from time to time assign the Secured Obligations and any
portion thereof and/or the Pledged Collateral and any portion thereof to a
successor Collateral Agent under the Credit Agreement and the assignee shall be
entitled to all of the rights and remedies of the Collateral Agent under this
Pledge Agreement in relation thereto.

 

(c)                                  The
Collateral Agent’s Duty of Care. 
Other than the exercise of reasonable care to ensure the safe custody of
the Pledged Collateral while being held by the Collateral Agent hereunder, the
Collateral Agent shall have no duty or liability to preserve rights pertaining
thereto, it being understood and agreed that the Pledgor shall be responsible
for preservation of all rights in the Pledged Collateral of Pledgor, and the
Collateral Agent shall be relieved of all responsibility for such Pledged
Collateral upon surrendering it or tendering the surrender of it to Pledgor.  The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of the Pledged
Collateral in its possession if such Pledged Collateral is accorded treatment
substantially equal to that which the Collateral Agent accord their own
property, which shall be no less than the treatment employed by a reasonable
and prudent agent in the industry, it being understood that the Collateral
Agent shall not have responsibility for (i) ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters
relating to any Pledged Collateral, whether or not the Collateral Agent have or
are deemed to have knowledge of such matters; or (ii) taking any necessary
steps to preserve rights against any parties with respect to any Pledged
Collateral.

 

(d)                                 Voting
Rights in Respect of the Pledged Collateral.

 

(i)                                     So
long as no Event of Default shall have occurred and be continuing, to the
extent permitted by law, Pledgor may exercise any and all voting and other
consensual rights pertaining to the Pledged Collateral of Pledgor or any part
thereof for any purpose not inconsistent with the terms of this Pledge
Agreement or the Credit Agreement (including, without limitation,
Section 6(g) hereof); and

 

(ii)                                  Upon
the occurrence and during the continuance of an Event of Default, all rights of
Pledgor to exercise the voting and other consensual rights which it would
otherwise be entitled to exercise pursuant to paragraph (i) of this
Section shall cease and all such rights shall thereupon become vested in
the Collateral Agent which shall then have the sole right to exercise such
voting and other consensual rights.

 

(f)                                    Dividend
and Distribution Rights in Respect of the Pledged Collateral.

 

(i)                                     So
long as no Event of Default shall have occurred and be continuing and subject
to Section 4(b) hereof, Pledgor may receive and retain any and all
dividends (other than stock dividends and other dividends constituting Pledged
Collateral which are addressed hereinabove), distributions or interest paid in
respect of the Pledged Collateral to the extent they are allowed under the
Subject Documents.

 

(ii)                                  Upon
the occurrence and during the continuance of an Event of Default:

 

(A)                              all
rights of Pledgor to receive the dividends, distributions and interest payments
which it would otherwise be authorized to receive and retain pursuant to
subsection (i) of this Section shall cease and all such rights shall
thereupon be vested in the Collateral Agent which shall then have the sole right
to receive and hold as Pledged Collateral such dividends, distributions and
interest payments; and

 

9

 

(B)                                all
dividends, distributions and interest payments which are received by Pledgor
contrary to the provisions of subsection (A) of this Section shall be
received in trust for the benefit of the Secured Parties, shall be segregated
from other property or funds of Pledgor, and shall be forthwith paid over to
the Collateral Agent as Pledged Collateral in the exact form received, to be
held by the Collateral Agent as Pledged Collateral and as further collateral
security for the Secured Obligations.

 

(g)                                 Release
of Pledged Collateral.  The
Collateral Agent may release any of the Pledged Collateral from this Pledge
Agreement or may substitute any of the Pledged Collateral for other Pledged
Collateral without altering, varying or diminishing in any way the force,
effect, lien, pledge or security interest of this Pledge Agreement as to any
Pledged Collateral not expressly released or substituted, and this Pledge
Agreement shall continue as a first priority lien on all Pledged Collateral not
expressly released or substituted.

 

11.                                 Rights
of Required Lenders and Actions of Collateral Agent.

 

(a)                                  Rights
of Required Lenders to Act for Collateral Agent.  All rights of the Collateral Agent hereunder, if not exercised by
the Collateral Agent, may be exercised by the Required Secured Parties, as such
term is defined in the Intercreditor Agreement.

 

(b)                                 Actions
of Collateral Agent. 
Notwithstanding anything to the contrary contained herein, all actions
of the Collateral Agent hereunder (including the exercise of the remedies set
forth in Section 9 hereof) shall be taken in accordance with the
Intercreditor Agreement.

 

12.                                 Application
of Proceeds.  Upon the occurrence
and during the continuance of an Event of Default, any payments in respect of
the Secured Obligations and any proceeds of any Pledged Collateral, when
received by the Collateral Agent or any of the Secured Parties in cash or its
equivalent, will be applied in accordance with the terms of the Intercreditor
Agreement.  Pledgor irrevocably waives
the right to direct the application of such payments and proceeds and
acknowledges and agrees that the Collateral Agent shall have the continuing and
exclusive right to apply and reapply any and all such payments and proceeds in
the Collateral Agent’ sole discretion, notwithstanding any entry to the
contrary upon any of its books and records.

 

13.                                 Costs
and Expenses. At all times hereafter, whether or not upon the occurrence of
an Event of Default, the Pledgors agree to promptly pay upon demand any and all
reasonable costs and expenses (including, without limitation, reasonably
attorneys’ fees) of the Collateral Agent and the Secured Parties (a) as
required under the Subject Documents and (b) as necessary to protect the
Pledged Collateral or to exercise any rights or remedies under this Pledge
Agreement or with respect to any Pledged Collateral.  All of the foregoing costs and expenses shall constitute Secured
Obligations hereunder.

 

14.                                 Continuing
Agreement.

 

(a)                                  This
Pledge Agreement shall be a continuing agreement in every respect and shall
remain in full force and effect until such time as all of the Secured
Obligations are fully satisfied.  At
such time as such obligations are fully satisfied, this Pledge Agreement shall
be automatically terminated and the Collateral Agent and the Secured Parties
shall, upon the request and at the expense of the Pledgor, (i) return all certificates
representing the Pledged Capital Stock, all other certificates and instruments
constituting Pledged Collateral and all instruments of transfer or assignment
which have been delivered to the Collateral Agent pursuant to this Pledge
Agreement and (ii) forthwith release all of its liens and security interests
hereunder and shall execute and deliver all UCC termination statements and/or
other documents reasonably requested by the Pledgor evidencing such
termination.  Notwithstanding the
foregoing, all releases and indemnities provided hereunder shall survive
termination of this Pledge Agreement.

 

(b)                                 This
Pledge Agreement shall continue to be effective or be automatically reinstated,
as the case may be, if at any time payment, in whole or in part, of any of the
Secured Obligations is rescinded or must otherwise be restored or returned by
the Collateral Agent or any Secured Party as a preference, fraudulent
conveyance or otherwise under any bankruptcy, insolvency or similar law, all as
though such

 

10

 

payment
had not been made; provided that in the event payment of all or any part of the
Secured Obligations is rescinded or must be restored or returned, all
reasonable costs and expenses (including without limitation any reasonable
legal fees and disbursements) incurred by the Collateral Agent or any Secured
Party in defending and enforcing such reinstatement shall be deemed to be
included as a part of the Secured Obligations.

 

15.                                 Amendments;
Waivers; Modifications.  This Pledge
Agreement and the provisions hereof may not be amended, waived, modified,
changed, discharged or terminated unless such amendment, waiver, modification,
change, discharge or termination is evidenced in writing and signed by the
Collateral Agent and the Pledgor.

 

16.                                 Successors
in Interest.  This Pledge Agreement
shall create a continuing security interest in the Collateral and shall be
binding upon Pledgor, its successors and assigns and shall inure, together with
the rights and remedies of the Collateral Agent and the Secured Parties
hereunder, to the benefit of the Collateral Agent and the Secured Parties and
their successors and permitted assigns; provided, however, that
the Pledgor may not assign its rights or delegate its duties hereunder without
the prior written consent of each of the Required Secured Parties (as defined
in the Intercreditor Agreement) and the Collateral Agent.  To the fullest extent permitted by law,
Pledgor hereby releases the Collateral Agent and each Secured Party, and its
successors and assigns, from any liability for any act or omission relating to
this Pledge Agreement or the Collateral, except, as applicable, for any
liability arising from the gross negligence or willful misconduct of the
Collateral Agent, or such Secured Party, or its officers, employees or agents.

 

17.                                 Notices.  All notices required or permitted to be
given under this Pledge Agreement shall be in conformance with the provisions
of the Intercreditor Agreement.

 

18.                                 Counterparts.  This Pledge Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same
instrument.  It shall not be necessary in
making proof of this Pledge Agreement to produce or account for more than one
such counterpart.

 

19.                                 Headings.  The headings of the sections and subsections
hereof are provided for convenience only and shall not in any way affect the
meaning, construction or interpretation of any provision of this Pledge
Agreement.

 

20.                                 Governing Law.

 

THIS
PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT REGARD TO CONFLICT OF LAW
PROVISIONS THEREOF EXCEPT TO THE EXTENT THAT PERFECTION AND REMEDIES ARE
NECESSARILY GOVERNED BY THE LAWS OF ANOTHER JURISDICTION.

 

21.                                 Waiver
of Jury Trial.

 

EACH OF THE PLEDGOR AND
THE COLLATERAL AGENT HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED
UNDER APPLICABLE LAW ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS PLEDGE AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED THEREBY AND TO THE FULLEST EXTENT PERMITTED BY LAW WAIVES ANY
RIGHTS THAT IT MAY HAVE TO CLAIM OR RECEIVE CONSEQUENTIAL OR SPECIAL DAMAGES
IN CONNECTION WITH ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
PLEDGE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY.

 

22.                                 Consent
to Jurisdiction.

 

(a)                                  Any
legal action or proceeding with respect to this Pledge Agreement may be brought
in the courts of the State of North Carolina in Mecklenburg County, or of the
United States for the Western District of North Carolina, and, by execution and
delivery of this Pledge Agreement, the Pledgor hereby irrevocably accepts for
himself and in respect of its property, generally and unconditionally, the
nonexclusive jurisdiction of such courts. 
The Pledgor further

 

11

 

irrevocably consents to
the service of process in any manner permitted by law.  Nothing herein shall affect the right of any
Secured Party to commence legal proceedings or to otherwise proceed against the
Pledgor in any other jurisdiction.

 

(b)                                 The
Pledgor hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Pledge Agreement in the courts referred to in Section 22(a).  Each of the parties hereto hereby further
irrevocably waives and agrees not to plead or claim in any such court that any
such action or proceeding brought in any such court has been brought in an
inconvenient forum.

 

23.                                 Severability.  If any provision of this Pledge Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

 

24.                                 Entirety.  This Pledge Agreement, the Subject Documents
and any other documents relating to the Secured Obligations represent the
entire agreement of the parties hereto and thereto, and supersede all prior
agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Subject Documents or the
transactions contemplated herein and therein.

 

25.                                 Survival.  All representations and warranties of the
Pledgor hereunder shall survive the execution and delivery of this Pledge
Agreement and the other Subject Documents and the making of the loans under the
Subject Documents.

 

26.                                 Other
Security.  To the extent that any of
the Secured Obligations are now or hereafter secured by property other than the
Pledged Collateral (including, without limitation, real and other personal
property owned by Pledgor), or by a guarantee, endorsement or property of any
other Person, then the Collateral Agent and the Secured Parties shall have the
right to proceed against such other property, guarantee or endorsement upon the
occurrence of any Event of Default, and the Collateral Agent and the Secured
Parties have the right, in their sole discretion, to determine which rights,
security, liens, security interests or remedies the Collateral Agent and the
Secured Parties shall at any time pursue, relinquish, subordinate, modify or
take with respect thereto, without in any way modifying or affecting any of
them or any of the Collateral Agent’ and the Secured Parties’ rights or the Secured
Obligations under this Pledge Agreement, the Subject Documents or any other
documents relating to the Secured Obligations.

 

[remainder of page intentionally left blank]

 

12

 

Each
of the parties hereto has caused a counterpart of this Pledge Agreement to be
duly executed and delivered as of the date first above written.

 

	
   

  	
   

  	
  PLEDGOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S.  RESTAURANT  PROPERTIES OPERATING L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  USRP MANAGING, INC.

  
	
   

  
	
   

  	
  By:

  	
  /s/ Stacy M. Riffe

  	
   

  
	
   

  	
  Name:

  	
  Stacy M. Riffe

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  
	
  Accepted and
  agreed as of the date first above written.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COLLATERAL AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA,
  N.A.,

  as Collateral Agent for the Secured Parties

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
												

 

13

 

Schedule 2(a)

 

to

 

Pledge Agreement

 

dated as of November 4, 2003 in favor of

 

the Collateral Agent

 

PLEDGED CAPITAL STOCK

 

1.                                       USRP
FUNDING 2002-A, L.P., a Delaware limited partnership.

 

2.                                       USRP
(JV1), LLC, a Delaware limited liability company.

 

14

 

Schedule 2(b)

 

to

 

Pledge Agreement

 

dated as of November 4, 2003 in favor of

 

the Collateral Agent

 

PLEDGED CAPITAL STOCK 

 

[None.]

 

15

 

Exhibit 4(a)

 

to

 

Pledge Agreement

 

dated as of November 4, 2003 in favor of

 

the Collateral Agent

 

Irrevocable Stock Power

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to

 

 

the following shares of
[Capital Stock] of                                ,
a                             :

 

	
  No. of
  Shares

  	
   

  	
  Certificate No.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

and irrevocably appoints
                                          
its agent and attorney-in-fact to transfer all or any part of such capital
stock and to take all necessary and appropriate action to effect any such
transfer.  The agent and
attorney-in-fact may substitute and appoint one or more persons to act for him.

 

	
   

  	
   

  	
  ,

  
	
   

  	
  a
                              
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]