Document:

Exhibit 10.1

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT is made and entered into as of the 18th day of October, 2006 by and between JAMES H. BLANCHARD, an individual resident of the State of Georgia (“Blanchard”), and SYNOVUS FINANCIAL CORP., a business corporation organized and existing under the laws of the State of Georgia (“Synovus”).

 

W I T N E S S E T H  :

 

WHEREAS, Blanchard served as Chief Executive Officer of Synovus from 1971 until being named Chairman of the Board of Directors in July of 2005;

 

WHEREAS, Blanchard has decided to retire from his position as an executive employee of Synovus effective October 18, 2006 and to resign his position as Chairman of the Board of Directors at such time;

 

WHEREAS, it is the desire of Synovus to provide for a smooth and orderly transition of its executive leadership; and

 

WHEREAS, it is the desire of Synovus to avail itself of the knowledge and experience of Blanchard in selected areas where his advice, counsel and efforts can be the most meaningful for one year beyond his retirement date as an employee of Synovus.

 

NOW THEREFORE, for and in consideration of the mutual covenants and agreements set forth herein, Blanchard and Synovus, intending to be legally bound, do hereby agree as follows:

 

Section I.

 

CONSULTING RELATIONSHIP

 

Synovus hereby engages Blanchard, and Blanchard hereby accepts such engagement to perform such consulting and advisory services as may be requested from time to time by the Chief Executive Officer of Synovus or the Board of Directors of Synovus.  Among the services requested, Blanchard will: (1) provide advice and counsel on the financial services industry and continuing to represent Synovus in various financial services organizations, including serving as Chairman of the Financial Services Roundtable through December of 2006 and as Past Chairman of the Financial Services Roundtable through December of 2007, and continuing to serve as a Director of the American Bankers Association and BITS; (2) provide advice and counsel with respect to Synovus' civic and community relations activities, including continuing his membership as a Director of the Georgia Research Alliance, the Georgia
Chamber of Commerce and the Georgia Appleseed Center for the Law and Public Interest; (3) develop major prospective customers and existing customer relationships, as well as 

 

 

entertain customers and prospective customers; and (4) provide employee and leadership training as requested by Synovus, including speaking engagements at the Synovus Leadership Institute.

 

In providing such services, the Chief Executive Officer and Blanchard will agree on the appropriate work schedule necessary to accomplish the requested services and desired results.  Blanchard will control the means, methods, time, resources, and manner required to perform the consulting and advisory services requested from him.

 

Section II.

 

TERM OF ENGAGEMENT

 

Blanchard’s engagement under this Consulting Agreement shall commence as of October 18, 2006, and end on October 18, 2007.

 

Section III.

 

COMPENSATION

 

3.1      In consideration of the consulting services to be rendered by Blanchard hereunder, and in consideration of the covenants and agreements of Blanchard herein contained, Synovus hereby agrees to pay to Blanchard, for each month (or partial month) during the term of this Consulting Agreement, a consulting fee of $26,667.00.  Payments made hereunder shall be paid to Blanchard on the last day of each month during the term hereof.

 

3.2       During the term of this Agreement, Blanchard shall be entitled to twenty-five (25) hours of personal use of Synovus/TSYS aircraft in accordance with the Synovus/TSYS Personal Use of Company Aircraft policy (“Policy”), as such Policy may be amended from time to time.  A copy of the current version of the Policy, as it exists on the date of this Agreement, is attached as Exhibit “A” and made a part hereof by this reference.

 

3.3       During the term of this Agreement, and for a period of two years thereafter, Synovus shall provide Blanchard with access to office space and administrative assistance.

 

3.4       Blanchard acknowledges that he is an independent contractor for all purposes.   Blanchard agrees to treat all payments made to him hereunder as payments received by an independent contractor for all tax purposes and to pay any and all taxes payable in connection with his engagement hereunder, including, without limitation, all applicable income and self employment taxes.

 

3.5     Blanchard shall be eligible to receive an annual bonus payment for 2006 performance in accordance with the terms of the Synovus Financial Corp. Executive 

 

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Bonus Plan, with such bonus amount to be paid as soon as practicable in 2007 based upon employee compensation received by Blanchard during 2006.

 

Section IV.

 

BOARD POSITIONS

 

Blanchard agrees to continue to serve as a member of the Board of Directors of Synovus and Total System Services, Inc.  Synovus and Blanchard agree to review Blanchard’s Board of Director positions and memberships on a periodic basis during the term of this Agreement.

 

Section V.

 

DEATH OR DISABILITY

 

Blanchard’s engagement under this Consulting Agreement shall terminate upon Blanchard’s death or total and permanent disability.  For purposes of this Consulting Agreement, the term “total and permanent disability” shall mean the substantial physical or mental inability of Blanchard to fulfill his duties under this Consulting Agreement as certified to in writing by two (2) competent physicians practicing in Columbus, Georgia, one of whom shall be selected by Synovus’ Board of Directors and the other of whom shall be selected by Blanchard or his duly appointed guardian or legal representative.

 

Section VI.

 

NONDISCLOSURE

 

6.1       Blanchard shall hold in confidence at all times after the date hereof all Trade Secrets, and shall not disclose, publish or make use at any time after the date hereof the Trade Secrets without the prior written consent of Synovus.  Blanchard also agrees that during the term of his engagement under this Consulting Agreement and for a period of two (2) years following the termination thereof, Blanchard will hold in confidence all Confidential Information and will not disclose, publish or make use of Confidential Information without the prior written consent of Synovus.

 

6.2       For the purposes of this Consulting Agreement, “Confidential Information” shall mean any data or information, other than Trade Secrets, which is valuable to Synovus or any of its subsidiaries or affiliates (hereinafter the “Synovus Companies”) and not generally known to competitors of the Synovus Companies.  “Trade Secrets” shall mean information belonging to or hereafter acquired by any of the Synovus Companies, including, but not limited to, technical or nontechnical data, a formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan, product plan, list of actual or potential customers or suppliers, or other information similar to any of the foregoing, which derives economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by 

 

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proper means by, other persons who can derive economic value from its disclosure or use.  For purposes of this Consulting Agreement, the term Trade Secrets shall not include information that Blanchard can show by competent proof (i) was known to Blanchard and reduced to writing prior to disclosure by any of the Synovus Companies (but only if Blanchard promptly notifies Synovus of his prior knowledge); (ii) was generally known to the public at the time any of the Synovus Companies disclosed the information to Blanchard, (iii) became generally known to the public after disclosure by any of the Synovus Companies through no act or omission of Blanchard; or (iv) was disclosed to Blanchard by a third party having a bona fide right both to possess the information and to disclose the information to Blanchard.

 

Section VII.

 

MISCELLANEOUS

 

7.1       Governing Law.  This Consulting Agreement shall be governed by and interpreted under the laws of the State of Georgia without regard to its conflict or choice of law provisions.

 

7.2       Notices.  All notices or other communications required or permitted hereunder or necessary and convenient in connection herewith shall be in writing and delivered in person or by express delivery service or postage prepaid first class mail, return receipt requested, to the following addresses:

 

	
             
 	
            If to Blanchard:
 

 

	
             
 	
            James H. Blanchard
 

1101 Marina Cove Circle

	
             
 	
            Columbus, GA  31904
 

 

	
             
 	
            If to Synovus:
 

 

	
             
 	
            Synovus Financial Corp.
 

	
             
 	
            Attn:  General Counsel
 

P.O. Box 120

	
             
 	
            Columbus, Georgia  31902
 

	
 

or to such other addresses as Blanchard or Synovus may designate by notice to the other parties hereto in the manner set forth in this Section VII.

 

7.3       Entire Agreement.  This Consulting Agreement sets forth the entire agreement of the parties hereto with respect to the subject matter hereof and may not be changed or amended except upon written amendment executed by the parties hereto.

 

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7.4       Assignment.  All of the terms and provisions of this Consulting Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of Blanchard hereunder shall not be assignable in whole or in part by Blanchard.

 

7.5       Counterparts.  This Consulting Agreement may be executed in two or more counterparts, each of which, when executed, shall be deemed an original instrument.

 

IN WITNESS WHEREOF, Synovus has caused this Consulting Agreement to be executed on its behalf and Blanchard has hereunto set his hand and seal, as of the day and year first above written.

 

	
             
 	
            SYNOVUS FINANCIAL CORP.
 

 

 

	
             
 	
            By:
 	
            /s/G. Sanders Griffith, III
 

 

	
             
 	
            Name:
 	
            G. Sanders Griffith, III
 

 

	
             
 	
            Title:
 	
            Senior Executive Vice President
 

 

 

 

	
             
 	
            /s/James H. Blanchard         (L.S.)
 	
            
 

	
             
 	
            James H. Blanchard
 

	
 

 

5

 

 

Exhibit "A"

Effective October 18, 2006

 

SYNOVUS FINANCIAL CORP./TOTAL SYSTEM SERVICES, INC.

Personal Use of Company Aircraft

 

Key Executives are each allowed a maximum number of hours of personal use of company aircraft each calendar year as set forth below.

 

Personal use of company aircraft by Key Executives includes non-business flights upon which the Key Executive and his or her non-business guests are the only passengers aboard the aircraft and also includes non-business flights upon which the Key Executive is not aboard the aircraft but his or her non-business guests are the only passengers aboard the aircraft.  Personal use must be scheduled when aircraft are not scheduled for business use.

 

Personal use of company aircraft is calculated using “block hours,” as opposed to “flight hours,” and includes “deadhead legs.”

 

For purposes of calculating the number of hours of personal use of company aircraft, each block hour of turbo-prop usage shall equal “one hour of personal usage” and each block hour of jet usage shall equal “five hours of personal usage.”  Usage of less than whole hours shall be recorded proportionately.  De minimis overages may be approved by Sanders Griffith to reflect unforeseen delays (such as traffic and weather delays) and other scheduling issues.

 

Personal use of company aircraft by Key Executives and their non-business guests is tracked and the value reported for tax purposes for the Key Executive.

 

The following Executives are designated as eligible for the indicated number of hours of personal use of company aircraft:

 

Synovus

 

Richard Anthony—Synovus President and CEO-30 hours of turbo-prop use/6 hours of jet use

 

Fred Green—Synovus President and COO—20 hours of turbo-prop use/4 hours of jet use

 

Jim Blanchard—Retired Synovus Chairman—25 hours of turbo-prop use/5 hours of jet use

 

Sanders Griffith—Synovus General Counsel—20 hours of turbo-prop use/4 hours of jet use

 

Lee Lee James—Synovus Vice Chairman—20 hours of turbo-prop use/ 4 hours of jet use

 

Tommy Prescott—Synovus CFO—20 hours of turbo-prop use/4 hours of jet use

 

 

TSYS

 

Phil Tomlinson—TSYS Chairman and CEO—30 hours of turbo-prop use/6 hours of jet use

 

Troy Woods—TSYS President and COO—30 hours of turbo-prop use/6 hours of jet use

 

Bill Pruett—Senior Executive Vice President—20 hours of turbo-prop use/4 hours of jet use

 

Ken Tye—Senior Executive Vice President and CIO—20 hours of turbo-prop use/4 hours of jet use

 

Jim Lipham—Senior Executive Vice President and CFO—20 hours of turbo-prop use/4 hours of jet useExhibit 10.01 Credit Agreement

    

    

    

    

    

    

    

    

    

    

    $50,000,000.00

    

    CREDIT
      AGREEMENT

    

    dated
      as
      of

    

    October
      12, 2006

    

    between

    

    OSI
      RESTAURANT PARTNERS, INC.

    

    and

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION

    

     

     

     

     

     

     

     

     

     

    
 

    

    

    
      
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          3448952v3

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CREDIT
      AGREEMENT

    

    

    AGREEMENT
      dated as of October 12, 2006 among OSI RESTAURANT PARTNERS, INC. and
      WACHOVIA BANK, NATIONAL ASSOCIATION.

     

    The
      parties hereto agree as follows: 

     

        
      ARTICLE I  

    

    DEFINITIONS

     

    SECTION
      1.01.   Definitions.
      The
      terms as defined in this Section 1.01 shall, for all purposes of this
      Agreement and any amendment hereto (except as herein otherwise expressly
      provided or unless the context otherwise requires), have the meanings set forth
      herein:

     

    “Advance”
      shall mean an advance made by the Bank to the Borrower under this Agreement
      pursuant to Article II. An Advance is a “Base Rate Advance” if such Advance is a
      Base Rate Loan or a “Euro-Dollar Advance” if such Advance is a Euro-Dollar
      Loan.

     

    “Agreement”
      means this Credit Agreement, together with all amendments and supplements
      hereto.

     

    “Applicable
      Margin” means 0.55%.

     

    “Authority”
      has the meaning set forth in Section 7.02.

     

    “Bank”
      means Wachovia Bank, National Association, and its successors and
      assigns.

     

    “Base
      Rate” means for any Base Rate Loan for any day, the rate per annum equal to the
      higher as of such day of (i) the Prime Rate, or (ii) one-half of one percent
      above the Federal Funds Rate for such day. For purposes of determining the
      Base
      Rate for any day, changes in the Prime Rate and the Federal Funds Rate shall
      be
      effective on the date of each such change.

     

    “Base
      Rate Loan” means the Loan on any day when the Loan bears or is to bear interest
      at a rate based upon the Base Rate.

     

    “Borrower”
      means OSI Restaurant Partners, Inc. (formerly known as Outback Steakhouse,
      Inc.), a Delaware corporation, and its successors and permitted assigns.

     

    “Change
      of Law” shall have the meaning set forth in Section 7.02.

     

    “Closing
      Date” means October 12, 2006.

     

    
      
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    “Commitment”
      means $50,000,000.00 as such amount may be reduced from time to time pursuant
      to
      this Agreement.

     

    “Compliance
      Certificate” has the meaning set forth in Section 5.01(c).

     

    “Consolidated
      Subsidiary” means at any date any Subsidiary or other entity the accounts of
      which, in accordance with GAAP, would be consolidated with those of the Borrower
      in its consolidated financial statements as of such date.

     

    “Default”
      means any condition or event which constitutes an Event of Default or which
      with
      the giving of notice or lapse of time or both would, unless cured or waived
      in
      writing, become an Event of Default. 

     

    “Default
      Rate” means, with respect to the Loan, on any day, the sum of 2% plus the Base
      Rate applicable for such day. 

     

    “Dollars”
      or “$” means dollars in lawful currency of the United States of
      America.

     

    “Domestic
      Business Day” means any day except a Saturday, Sunday or other day on which
      commercial banks in North Carolina are authorized or required by law to close.
      

     

    “Euro-Dollar
      Loan” means the Loan on any day when the Loan bears or is to bear interest at a
      rate based upon the LIBOR Market Index Rate.

     

    “Event
      of
      Default” has the meaning set forth in Section 6.01. 

     

    “Existing
      Credit Agreement” means that certain Amended and Restated Credit Agreement dated
      March 10, 2006 by and among the Borrower, the Banks party thereto, Wachovia
      Bank, National Association, as Agent, Wachovia Capital Markets, LLC, as Sole
      Arranger, SunTrust Bank, as Syndication Agent, and Bank of America, N.A. and
      Wells Fargo Bank, National Association, as Co-Documentation Agents, as in effect
      on the date hereof without regard and without giving effect to any waivers
      given
      by the Banks (as defined in the Existing Credit Agreement) or amendments agreed
      to by the Borrower and the Banks (as defined in the Existing Credit Agreement).
      Any definitions, terms, covenants, representations or other provisions of the
      Existing Credit Agreement that are incorporated herein will continue to be
      effective for purposes of this Agreement and the other Loan Documents,
      notwithstanding that the indebtedness under the Existing Credit Agreement has
      been or hereafter may be partially or fully repaid or the fact that the Existing
      Credit Agreement otherwise might be terminated. 

     

    “Federal
      Funds Rate” means, for any day, the rate per annum (rounded upward, if
      necessary, to the next higher 1/100th of 1%) equal to the weighted average
      of
      the rates on overnight Federal funds transactions with members of the Federal
      Reserve System arranged by Federal funds brokers on such day, as published
      by
      the Federal Reserve Bank of New York on the Domestic Business Day next
      succeeding such day, provided that (i) if the day for which such rate is to
      be
      determined is not a Domestic Business Day, the Federal Funds Rate for such
      day
      shall be such rate on such transactions on the next preceding Domestic Business
      Day as so published on
      the
      next succeeding Domestic Business Day, and (ii) if such rate is not so published
      

     

    
      
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    for
      any
      day, the Federal Funds Rate for such day shall be the average rate charged
      to
      the Bank on such day on such transactions as determined by the
      Bank.

     

    “Fiscal
      Quarter” means any fiscal quarter of the Borrower.

     

    “Fiscal
      Year” means any fiscal year of the Borrower.

     

    “FMA
      Agreement” means any financial management account agreement now or hereafter
      entered into between the Bank and Borrower and all amendments and modifications
      thereto.

     

    “GAAP”
      means generally accepted accounting principles applied on a basis consistent
      with those which, in accordance with Section 1.02, are to be used in making
      the
      calculations for purposes of determining compliance with the terms of this
      Agreement.

     

    “Guarantors”
      shall mean collectively: (a) the Initial Guarantors; and (b) all Material
      Domestic Subsidiaries acquired, formed or otherwise in existence after the
      Closing Date.

     

    “Guaranty”
      means the Guaranty Agreement executed by each of the Guarantors substantially
      in
      the form of Exhibit B hereto, either as originally executed or as it may be
      from
      time to time supplemented, modified, amended, renewed, extended or restated
      from
      time to time.

     

    “Initial
      Guarantors” shall mean Outback Steakhouse of Florida, Inc.; Carrabba’s Italian
      Grill, Inc.; Outback Steakhouse International, Inc.; OS Capital, Inc.; OS
      Pacific, Inc.; OS Prime, Inc.; OS Tropical, Inc.; and Bonefish Grill,
      Inc.

     

    “Interest
      Payment Date” means December 29, 2006 and March 30, 2007.

     

    “Lending
      Office” means, as to the Bank, its office located at its address set forth on
      the signature page hereof (or identified on the signature page hereof as its
      Lending Office) or such other office as the Bank may hereafter designate as
      its
      Lending Office by notice to the Borrower.

     

    “LIBOR
      Market Index Rate” means for any Euro-Dollar Loan, for any day, the rate for 1
      month U.S. dollar deposits as reported on Telerate page 3750 as of
      11:00 a.m., London time, on such day, or if such day is not a London
      Business Day, then the immediately preceding London Business Day (or if not
      so
      reported, then as determined by the Bank from another recognized source or
      interbank quotation). For purposes of determining the LIBOR Market Index Rate
      for any day, changes in the LIBOR Market Index Rate shall be effective on the
      date of each such change.

     

    “Loan”
      means the aggregate outstanding Advances made by the Bank to the Borrower under
      this Agreement. The Loan shall at all times be a Euro-Dollar Loan, unless such
      Loan is to be a Base Rate Loan pursuant to Article VII herein.

     

    
      
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    “Loan
      Documents” means this Agreement, the Note, the Guaranty, any other document
      evidencing, relating to or securing the Loan and any other document or
      instrument delivered from time to time in connection with this Agreement, the
      Note, the Guaranty or the Loan, as such documents and instruments may be amended
      or supplemented from time to time. 

     

    “Loan
      Parties” means collectively the Borrower and each Subsidiary of the Borrower
      that is now or hereafter a party to any of the Loan Documents.

     

    “London
      Business Day” means any Domestic Business Day on which dealings in Dollar
      deposits are carried out in the London interbank market.

     

    “Material
      Adverse Effect” means, with respect to any event, act, condition or occurrence
      of whatever nature (including any adverse determination in any litigation,
      arbitration, or governmental investigation or proceeding), whether singly or
      in
      conjunction with any other event or events, act or acts, condition or
      conditions, occurrence or occurrences, whether or not related, a material
      adverse change in, or a material adverse effect upon, any of (a) the financial
      condition, operations, business, properties or prospects of the Borrower and
      its
      Consolidated Subsidiaries taken as a whole, (b) the rights and remedies of
      the
      Bank under the Loan Documents, or the ability of the Borrower to perform its
      obligations under the Loan Documents to which it is a party, as applicable,
      or
      (c) the legality, validity or enforceability of any Loan Document.

     

    “Material
      Domestic Subsidiaries” means each Domestic Subsidiary with total assets of
      $40,000,000 or more; provided that in the event that, at any time, the total
      assets of all Domestic Subsidiaries which are not then Guarantors (the
“Non-Guarantor Domestic Subsidiaries”), in the aggregate, is equal to or greater
      than $120,000,000, the Borrower shall so notify the Bank and promptly thereafter
      (but in any event within 30 days after the date thereof) shall cause any such
      Non-Guarantor Domestic Subsidiary which has total assets equal to or greater
      than $24,000,000 to take the actions and deliver the documents required by
      Section 5.02 and thereafter such Subsidiaries shall be
“Guarantors.”

     

    “Note”
      means a promissory note of the Borrower, substantially in the form of Exhibit
      A
      hereto, evidencing the obligation of the Borrower to repay the Loan, together
      with all amendments, consolidations, modifications, renewals and supplements
      thereto. 

     

    “Obligations”
      means the collective reference to all indebtedness, obligations and liabilities
      to the Bank, existing on the date of this Agreement or arising thereafter,
      direct or indirect, joint or several, absolute or contingent, matured or
      unmatured, liquidated or unliquidated, secured or unsecured, arising by
      contract, operation of law or otherwise, of the Loan Parties under this
      Agreement or any other Loan Document.

     

    “Officer’s
      Certificate” has the meaning set forth in Section 3.01(c).

     

    “Prime
      Rate” refers to that interest rate so denominated and set by the Lender from
      time to time as an interest rate basis for borrowings. The Prime Rate is but
      one
      of several 

     

    
      
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    interest
      rate bases used by the Lender. The Lender lends at interest rates above and
      below the Prime Rate.

     

    “Subsidiary”
      means any corporation or other entity of which securities or other ownership
      interests having ordinary voting power to elect a majority of the board of
      directors or other persons performing similar functions are at the time directly
      or indirectly owned by the Borrower. 

     

    “Termination
      Date” means March 30, 2007.

     

    SECTION
      1.02.   Accounting
      Terms and Determinations.
      Unless
      otherwise specified herein, all terms of an accounting character used herein
      shall be interpreted, all accounting determinations hereunder shall be made,
      and
      all financial statements required to be delivered hereunder shall be prepared
      in
      accordance with GAAP, applied on a basis consistent (except for changes
      concurred in by the Borrower’s independent public accountants or otherwise
      required by a change in GAAP) with the most recent audited consolidated
      financial statements of the Borrower and its Consolidated Subsidiaries delivered
      to the Bank, unless with respect to any such change concurred in by the
      Borrower’s independent public accountants or required by GAAP, in determining
      compliance with any of the provisions of this Agreement or any of the other
      Loan
      Documents: (i) the Borrower shall have objected to determining such compliance
      on such basis at the time of delivery of such financial statements, or (ii)
      the
      Bank shall so object in writing within 30 days after the delivery of such
      financial statements, in either of which events such calculations shall be
      made
      on a basis consistent with those used in the preparation of the latest financial
      statements as to which such objection shall not have been made (which, if
      objection is made in respect of the first financial statements delivered under
      Section 5.01 hereof, shall mean the financial statements for the Fiscal Year
      ending December 31, [2005]).

     

    SECTION
      1.03.   Use
      of
      Defined Terms.
      All
      terms defined in this Agreement shall have the same meanings when used in any
      of
      the other Loan Documents, unless otherwise defined therein or unless the context
      shall otherwise require.

     

    SECTION
      1.04.   Terminology.
      All
      personal pronouns used in this Agreement, whether used in the masculine,
      feminine or neuter gender, shall include all other genders; the singular shall
      include the plural and the plural shall include the singular. Titles of Articles
      and Sections in this Agreement are for convenience only, and neither limit
      nor
      amplify the provisions of this Agreement.

     

    SECTION
      1.05.   References.
      Unless
      otherwise indicated, references in this Agreement to “Articles”, “Exhibits”,
“Schedules”, and “Sections” are references to articles, exhibits, schedules and
      sections hereof.

     

    SECTION
      1.06.   Definitions
      in Existing Credit Agreement.
      The
      following terms when used in this Agreement or any of the other Loan Documents
      shall, unless otherwise defined herein, have the same meanings as set forth
      in
      the Existing Credit Agreement: “Affiliate”, “Capital Stock”, “CERCLA”,
“CERCLIS”, “Code”, “Company Owned Restaurants”, “Consolidated Interest Expense”,
“Consolidated Net Income”, “Consolidated Net Worth”, 

     

    
      
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    “Consolidated
      Total Assets”, “Consolidated Total Debt”, “Control”, “Controlled Group”, “Debt”,
“Depreciation and Amortization”, “Development Joint Venture”, “Domestic
      Subsidiary”, “EBITDAR”, “Environmental Authority”, “Environmental
      Authorizations”, “Environmental Judgments and Orders”, “Environmental Laws”,
“Environmental Liabilities”, “Environmental Notices”, “Environmental
      Proceedings”, “Environmental Releases”, “Environmental Requirements”, “ERISA”,
“Foreign Subsidiary”, “Guarantee”, “Hazardous Materials”, “Investment”, “Lien”,
“Margin Stock”, “Multiemployer Plan”, “Net Income”, “Participating Subsidiary”,
“PBGC”, “Permitted Acquisition”, “Permitted Consolidations, Mergers and Sales of
      Assets”, “Permitted Liens”, “Permitted Loans and Advances”, “Permitted
      Securitization”, “Person”, “Plan”, “Priority Debt”, “Properties”, “Purchase
      Money Note”, “Receivables Subsidiary”, “Redeemable Preferred Stock”,
“Securitization Assets”, “Securitization Documents”, “Securitization Facility
      Attributed Debt”, “Standard Securitization Undertakings”, “Stockholders Equity”,
“Synthetic Lease Indebtedness”, “Synthetic Lease Transaction”, “Taxes” and
“Third Parties”.

     

                                                                                                                            
      
      
        	 	
                 ARTICLE
                  II

              	 

      
  

    THE
      CREDITS

     

    SECTION
      2.01.   Commitment
      to Make Advances.
      The
      Bank agrees, on the terms and conditions set forth herein, to make Advances
      to
      the Borrower from time to time before the Termination Date; provided that,
      immediately after each such Advance is made, the aggregate outstanding principal
      amount of all Advances by the Bank shall not exceed the amount of its
      Commitment. Within the foregoing limits, the Borrower may borrow under this
      Section, repay or, to the extent permitted by Section 2.08, prepay all or any
      portion of the Loan and reborrow under this Section at any time before the
      Termination Date.

     

    SECTION
      2.02.   Method
      of Borrowing Advances.
      

     

    (a)  The
      Bank
      is hereby authorized to make Advances under this Credit Agreement upon
      telephonic or written communication of a request from any Person representing
      himself or herself to be a duly authorized officer or representative of the
      Borrower; provided that, except as otherwise provided in a FMA Agreement, the
      Borrower shall make any such request for an Advance not later than 2:00 p.m.
      (Charlotte, North Carolina time) on the Domestic Business Day such Advance
      is to
      be disbursed.

     

    (b)  Unless
      the Bank determines that any applicable condition specified in Article III
      has
      not been satisfied, the Bank will make the funds corresponding to such Advance
      available to the Borrower at the Bank’s aforesaid address. 

     

    (c)  Notwithstanding
      anything to the contrary contained in this Agreement, no Advance may be
      requested if there shall have occurred an Event of Default, which Event of
      Default shall not have been cured or waived in writing.

     

    SECTION
      2.03.   [Intentionally
      Omitted]

     

    
      
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          3448952v3

        
        

      

      
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    SECTION
      2.04.   Note.
      

     

    (a)  The
      Loan
      of the Bank shall be evidenced by a single Note payable to the order of the
      Bank
      for the account of its Lending Office in an amount equal to the original
      principal amount of the Bank’s Commitment.

     

    (b)  The
      Bank
      shall record, and prior to any transfer of its Note shall endorse on the
      schedule forming a part thereof appropriate notations to evidence, the date,
      amount and maturity of, and effective interest rate for, each Advance made
      by
      it, the date and amount of each payment of principal made by the Borrower with
      respect thereto, and such schedule shall constitute rebuttable presumptive
      evidence of the principal amount owing and unpaid on such Bank’s Note;
provided
      that the
      failure of any Bank to make, or any error in making, any such recordation or
      endorsement shall not affect the obligation of the Borrower hereunder or under
      the Note or the ability of the Bank to assign its Note. The Bank is hereby
      irrevocably authorized by the Borrower so to endorse its Note and to attach
      to
      and make a part of the Note a continuation of any such schedule as and when
      required.

     

    SECTION
      2.05.   Maturity
      of Loan.
      The
      Loan shall mature, and the entire outstanding principal amount thereof shall
      be
      due and payable, on the Termination Date. 

     

    SECTION
      2.06.   Interest
      Rates.
      

     

    (a)  On
      each
      day on which the Loan is a Euro-Dollar Loan, such Euro-Dollar Loan shall bear
      interest on the outstanding principal amount thereof, at a rate per annum equal
      to the sum of: (1) the Applicable Margin, plus (2) the Libor Market Index Rate
      for such day, as that rate may change from day to day. Any overdue principal
      of
      and, to the extent permitted by applicable law, overdue interest on any
      Euro-Dollar Loan shall bear interest, payable on demand, for each day until
      paid
      in full at a rate per annum equal to the Default Rate. 

     

    (b)  On
      each
      day on which the Loan is a Base Rate Loan, such Base Rate Loan shall bear
      interest on the outstanding principal amount thereof, at a rate per annum equal
      to the Base Rate for such day plus the Applicable Margin. Any overdue principal
      of and, to the extent permitted by applicable law, overdue interest on any
      Base
      Rate Loan shall bear interest, payable on demand, for each day until paid in
      full at a rate per annum equal to the Default Rate. 

     

    (c)  The
      Loan
      shall at all times be a Euro-Dollar Loan unless the Loan is to be a Base Rate
      Loan pursuant to Article VII herein. Interest shall be payable on each Interest
      Payment Date; provided that: (1) all accrued unpaid interest on the Loan shall
      be paid in full on the Termination Date; and (2) should the Commitment be
      terminated at any time prior to the Termination Date for any reason, any and
      all
      accrued unpaid interest shall be paid on the date of such
      termination.

     

    (d)  The
      Bank
      shall determine each interest rate applicable to the Loan hereunder.

     

    (e)  After
      the
      occurrence and during the continuance of a Default, the principal amount of
      the
      Loan (and, to the extent permitted by applicable law, all accrued interest
      thereon) 

     

    
      
        WCSR
          3448952v3

        
        

      

      
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    may,
      at
      the election of the Bank, bear interest at the Default Rate; provided, however,
      that automatically whether or not the Bank elects to do so, any overdue
      principal of and, to the extent permitted by law, overdue interest on the Loan
      shall bear interest payable on demand, for each day until paid at a rate per
      annum equal to the Default Rate.

     

    SECTION
      2.07.   Mandatory
      Reduction and Termination of Commitment.
      The
      Commitment shall terminate on the Termination Date and the entire outstanding
      principal amount of the Loan then outstanding (together with accrued interest
      thereon) shall be due and payable on such date.

     

    SECTION
      2.08.   Optional
      Prepayments.
      

     

    (a)  The
      Borrower may prepay all or any portion of the principal of the Loan at any
      time,
      or from time to time by paying the principal amount to be prepaid together
      with
      all accrued interest hereunder and any other sums then due from the Borrower
      to
      the Bank under this Agreement. 

     

    (b)  Upon
      receipt of a notice of prepayment pursuant to this Section, such notice shall
      not thereafter be revocable by the Borrower. 

     

    SECTION
      2.09.   Mandatory
      Prepayments.
      On each
      date on which the Commitment is reduced or terminated pursuant to
      Section 2.07, the Borrower shall repay or prepay such principal amount of
      the outstanding Loan, if any (together with interest accrued thereon), as may
      be
      necessary so that after such payment the entire unpaid principal amount of
      the
      Loan does not exceed the aggregate amount of the Commitment as then reduced.
      

     

    SECTION
      2.10.   General
      Provisions as to Payments.
      

     

    (a)  Unless
      otherwise provided in a FMA Agreement, the Borrower shall make each payment
      of
      principal of, and interest on, the Loan and any fees payable hereunder, not
      later than 11:00 A.M. (Charlotte, North Carolina time) on the date when due,
      in
      Federal or other funds immediately available in Charlotte, North Carolina,
      to
      the Bank at its address referred to in Section 8.01. 

     

    (b)  Unless
      otherwise provided in a FMA Agreement, whenever any payment of principal of,
      or
      interest on, the Loan or of any fees payable hereunder shall be due on a day
      which is not a Domestic Business Day, the date for payment thereof shall be
      extended to the next succeeding Domestic Business Day. If the date for any
      payment of principal is extended by operation of law or otherwise, interest
      thereon shall be payable for such extended time. 

     

    (c)  All
      payments of principal, interest and fees and all other amounts to be made by
      the
      Borrower pursuant to this Agreement with respect to the Loan or fees relating
      thereto shall be paid without deduction for, and free from, any tax, imposts,
      levies, duties, deductions, or withholdings of any nature now or at anytime
      hereafter imposed by any governmental authority or by any taxing authority
      thereof or therein excluding in the case of the Bank, taxes imposed on or
      measured by its net income, and franchise taxes imposed on it, by the
      jurisdiction under the laws of which the Bank is organized or any political
      subdivision thereof 

     

    
      
        WCSR
          3448952v3

        
        

      

      
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    and,
      in
      the case of the Bank, taxes imposed on its income, and franchise taxes imposed
      on it, by the jurisdiction of the Bank’s applicable Lending Office or any
      political subdivision thereof (all such non-excluded taxes, imposts, levies,
      duties, deductions or withholdings of any nature being “Taxes”). In the event
      that the Borrower is required by applicable law to make any such withholding
      or
      deduction of Taxes with respect to the Loan, or fee or other amount, the
      Borrower shall pay such deduction or withholding to the applicable taxing
      authority, shall promptly furnish to the Bank in respect of which such deduction
      or withholding is made all receipts and other documents evidencing such payment
      and shall pay to the Bank additional amounts as may be necessary in order that
      the amount received by the Bank after the required withholding or other payment
      shall equal the amount the Bank would have received had no such withholding
      or
      other payment been made. If no withholding or deduction of Taxes are payable
      in
      respect of the Loan or fees relating thereto, the Borrower shall furnish the
      Bank, at the Bank’s request, a certificate from each applicable taxing authority
      or an opinion of counsel acceptable to the Bank, in either case stating that
      such payments are exempt from or not subject to withholding or deduction of
      Taxes. If the Borrower fails to provide such original or certified copy of
      a
      receipt evidencing payment of Taxes or certificate(s) or opinion of counsel
      of
      exemption, the Borrower hereby agrees to compensate the Bank for, and indemnify
      them with respect to, the tax consequences of the Borrower’s failure to provide
      evidence of tax payments or tax exemption.

     

    In
      the
      event the Bank receives a refund of any Taxes paid by the Borrower pursuant
      to
      this Section 2.10, it will pay to the Borrower the amount of such refund
      promptly upon receipt thereof; provided,
      however,
      if at
      any time thereafter it is required to return such refund, the Borrower shall
      promptly repay to it the amount of such refund.

     

    Without
      prejudice to the survival of any other agreement of the Borrower hereunder,
      the
      agreements and obligations of the Borrower contained in this Section 2.10 shall
      be applicable with respect to any participant, assignee or other Transferee,
      and
      any calculations required by such provisions (i) shall be made based upon the
      circumstances of such participant, assignee or other Transferee, and (ii)
      constitute a continuing agreement and shall survive the termination of this
      Agreement and the payment in full or cancellation of the Note.

     

    SECTION
      2.11.   Computation
      of Interest.
      Interest on the Loan shall be computed on the basis of a year of 360 days and
      paid for the actual number of days elapsed. 

     

    ARTICLE
      III  

     

    CONDITIONS
      TO BORROWINGS

     

    SECTION
      3.01.   Conditions
      to Closing.
      The
      Borrower shall satisfy the following conditions on the Closing
      Date:

     

    (a)  receipt
      by the Bank from the Borrower of a duly executed counterpart of this Agreement
      signed by the Borrower;

     

    (b)  receipt
      by the Bank of a duly executed Note for the account of the Bank complying with
      the provisions of Section 2.04;

     

    
      
        WCSR
          3448952v3

        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (c)  receipt
      by the Bank of all documents which the Bank may reasonably request relating
      to
      the existence of each Loan Party, the corporate authority for and the validity
      of each Loan Document to which it is a party, and any other matters relevant
      hereto, all in form and substance satisfactory to the Bank, including without
      limitation a certificate of incumbency of such Loan Party (the “Officer’s
      Certificate”), signed by the Secretary or an Assistant Secretary of such Loan
      Party, substantially in the form of Exhibit C hereto, certifying as to the
      names, true signatures and incumbency of the officer or officers of such Loan
      Party authorized to execute and deliver the Loan Documents to which it is a
      party, and certified copies of the following items: (i) such Loan Party’s
      Certificate of Incorporation, (ii) such Loan Party’s Bylaws, (iii) a certificate
      of the Secretary of State of the State of such Loan Party’s organization as to
      the good standing of such Loan Party as a corporation, and (iv) the action
      taken
      by the Board of Directors of such Loan Party authorizing such Loan Party’s
      execution, delivery and performance of this Agreement, the Note and the other
      Loan Documents to which such Loan Party is a party;

     

    (d)  receipt
      by the Bank of the Guaranty, duly executed by each Guarantor; and

     

    (e)  such
      other documents or items as the Bank or its counsel may reasonably
      request.

     

    SECTION
      3.02.   Conditions
      to All Advances.
      The
      obligation of each Bank to make an Advance on the occasion of each Advance
      is
      subject to the satisfaction of the following conditions:

     

    (a)  receipt
      by the Bank of notice from the Borrower requesting such Advance;

     

    (b)  the
      fact
      that, immediately before and after such Advance, no Event of Default shall
      have
      occurred and be continuing;

     

    (c)  the
      fact
      that the representations and warranties of the Borrower contained in Article
      IV
      of this Agreement shall be true on and as of the date of such Advance;
      and

     

    (d)  the
      fact
      that the representations and warranties of the Loan Parties contained in the
      Guaranty shall be true on and as of the date of such Advance; and

     

    (e)  the
      fact
      that, immediately after such Advance the entire outstanding principal amount
      of
      the Loan will not exceed the amount of the Commitment as of such date.

     

    Each
      request by the Borrower for an Advance hereunder shall be deemed to be a
      representation and warranty by the Borrower on the date such Advance is
      disbursed by the Bank to the Borrower as to the truth and accuracy of the facts
      specified in clauses (b), (c) and (d) of this Section.

     

    
      
        WCSR
          3448952v3

        
        

      

      
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    ARTICLE
      IV  

     

    REPRESENTATIONS
      AND WARRANTIES

     

    The
      Borrower represents and warrants that (a) the representations and warranties
      contained in the Existing Credit Agreement are true and correct in all material
      respects; and (b) no Default (as defined in the Existing Credit Agreement)
      or
      Event of Default (as defined in the Existing Credit Agreement), nor any act,
      event, condition or circumstance, which with the passage of time or the giving
      of notice, or both, would constitute an Event of Default (as defined in the
      Existing Credit Agreement) under the Existing Credit Agreement or any other
      Loan
      Document (as defined in the Existing Credit Agreement) has occurred and is
      continuing unwaived on the date hereof. 

     

          
      ARTICLE V  

     

    COVENANTS

     

    The
      Borrower agrees that, so long as the Bank has any Commitment hereunder, or
      any
      amount payable under the Note remains unpaid: 

     

    SECTION
      5.01.   Information.
      The
      Borrower will deliver to the Bank: 

     

    (a)  as
      soon
      as available and in any event within 90 days after the end of each Fiscal Year,
      a consolidated balance sheet of the Borrower and its Consolidated Subsidiaries
      as of the end of such Fiscal Year and the related consolidated statements of
      income, shareholders’ equity and cash flows for such Fiscal Year, setting forth
      in each case in comparative form the figures for the previous Fiscal Year,
      all
      certified by PricewaterhouseCoopers, LLP or other independent public accountants
      of nationally recognized standing, with such certification to be free of
      exceptions and qualifications not acceptable to the Bank;

     

    (b)  as
      soon
      as available and in any event within 45 days after the end of each of the first
      3 Fiscal Quarters of each Fiscal Year, a consolidated balance sheet of the
      Borrower and its Consolidated Subsidiaries as of the end of such Fiscal Quarter
      and the related statement of income and statement of cash flows for such Fiscal
      Quarter and for the portion of the Fiscal Year ended at the end of such Fiscal
      Quarter, setting forth in each case in comparative form the figures for the
      corresponding Fiscal Quarter and the corresponding portion of the previous
      Fiscal Year, all certified (subject to normal year-end adjustments) as to
      fairness of presentation, GAAP and consistency by the chief financial officer
      or
      the chief accounting officer of the Borrower;

     

    (c)  simultaneously
      with the delivery of each set of financial statements referred to in clauses
      (a)
      and (b) above, a certificate, substantially in the form of Exhibit D (a
“Compliance Certificate”), of the chief financial officer or the chief
      accounting officer of the Borrower (i) setting forth in reasonable detail the
      calculations required to establish whether the Borrower was in compliance on
      the
      date of such financial statements, with the requirements of Sections 5.03
      through 5.08, inclusive, 5.11
      and
      5.26 of
      the
      Existing Credit Agreement, (ii) identifying the complete name and jurisdiction
      of incorporation of each Subsidiary of the 

     

    
      
        WCSR
          3448952v3

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Borrower
      created, formed or acquired during the time period covered by such financial
      statements; (iii) identifying the Domestic Subsidiaries; and (iv) stating
      whether any Default exists on the date of such certificate and, if any Default
      then exists, setting forth the details thereof and the action which the Borrower
      is taking or proposes to take with respect thereto;

     

    (d)  simultaneously
      with the delivery of each set of annual financial statements referred to in
      clause (a) above, a statement of the firm of independent public accountants
      which reported on such statements to the effect that nothing has come to their
      attention to cause them to believe that any Default existed on the date of
      such
      financial statements;

     

    (e)  within
      5
      Domestic Business Days after the Borrower becomes aware of the occurrence of
      any
      Default, a certificate of the chief financial officer or the chief accounting
      officer of the Borrower setting forth the details thereof and the action which
      the Borrower is taking or proposes to take with respect thereto;

     

    (f)  promptly
      upon the mailing thereof to the shareholders of the Borrower generally, copies
      of all financial statements, reports and proxy statements so
      mailed;

     

    (g)  promptly
      upon the filing thereof, copies of all registration statements (other than
      the
      exhibits thereto and any registration statements on Form S-8 or its equivalent)
      and annual, quarterly or monthly reports which the Borrower shall have filed
      with the Securities and Exchange Commission;

     

    (h)  if
      and
      when the Borrower or any member of the Controlled Group (i) gives or is required
      to give notice to the PBGC of any “reportable event” (as defined in
      Section 4043 of ERISA) with respect to any Plan which might constitute
      grounds for a termination of such Plan under Title IV of ERISA, or knows
      that the plan administrator of any Plan has given or is required to give notice
      of any such reportable event, a copy of the notice of such reportable event
      given or required to be given to the PBGC; (ii) receives notice of complete
      or partial withdrawal liability under Title IV of ERISA, a copy of such
      notice; or (iii) receives notice from the PBGC under Title IV of ERISA
      of an intent to terminate or appoint a trustee to administer any Plan, a copy
      of
      such notice;

     

    (i)  promptly
      after the Borrower knows of the commencement thereof, notice of any litigation,
      dispute or proceeding involving a claim against the Borrower and/or any
      Subsidiary for $1,000,000 or more in excess of amounts covered in full by
      applicable insurance; and

     

    (j)  from
      time
      to time such additional information regarding the financial position or business
      of the Borrower and its Subsidiaries as the Bank may reasonably request.

     

    SECTION
      5.02.   Subsidiaries.
      

     

    (a)  The
      Borrower shall cause any Person which becomes a Material Domestic Subsidiary
      after the Closing Date to become a party to, and agree to be bound by the terms
      of, the Guaranty pursuant to an instrument in form and substance satisfactory
      to
      the Bank executed and delivered to the Bank within ten (10) Domestic Business
      Days after the day on which such

     

    
      
        WCSR
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    Person
      became a Material Domestic Subsidiary. The Borrower shall also cause the items
      specified in Section 3.01(c) to be delivered to the Bank concurrently with
      the
      instrument referred to above, modified appropriately to refer to such instrument
      and such Material Domestic Subsidiary.

     

    (b)  Once
      any
      Subsidiary becomes a Material Domestic Subsidiary and therefore becomes a party
      to the Guaranty in accordance with Section 3.01(d) or Section 5.02(a), such
      Material Domestic Subsidiary (including, without limitation, all initial
      Material Domestic Subsidiaries) thereafter shall remain a party to the Guaranty,
      even if such Subsidiary thereafter ceases to be a Material Domestic Subsidiary;
      provided that if a Material Domestic Subsidiary ceases to be a Subsidiary of
      the
      Borrower as a result of the Borrower’s transfer or sale of one hundred percent
      (100%) of the capital stock of such Subsidiary in accordance with and to the
      extent permitted by the terms of Section 5.11 of the Existing Credit Agreement,
      the Bank agrees to release such Subsidiary from the Guaranty. 

     

    SECTION
      5.03.   Existing
      Credit Agreement.
      The
      Borrower covenants and agrees that from the date hereof and until payment in
      full of the Loan, and the payment in full of all other amounts owing under
      this
      Agreement and the other Loan Documents, the Borrower shall observe, perform
      and
      fulfill, for the benefit of the Bank, all of those covenants and agreements,
      as
      the same are in effect on the date hereof, contained in the Existing Credit
      Agreement, as in effect on the date hereof, the provisions of which (including,
      where pertinent, the defined terms used in other Sections of the Existing Credit
      Agreement referenced, in such Sections) are incorporated herein by reference,
      without regard and without giving effect to any waivers given by the Banks
      (as
      defined in the Existing Credit Agreement) with respect to, or amendments agreed
      to by the Borrower and the Banks (as defined in the Existing Credit Agreement)
      of any of such covenants and agreements, which covenants and agreements the
      Borrower will continue to observe, perform and fulfill for the benefit of the
      Bank notwithstanding that the indebtedness under the Existing Credit Agreement
      has been or hereafter may be partially or fully repaid or the fact that the
      Existing Credit Agreement otherwise might be terminated. 

     

          ARTICLE
      VI  

     

    DEFAULTS

     

    SECTION
      6.01.   Events
      of Default.
      If one
      or more of the following events (“Events of Default”) shall have occurred and be
      continuing: 

     

    (a)  the
      Borrower shall fail to pay when due any principal of the Loan or shall fail
      to
      pay any interest on the Loan within five Domestic Business Days after such
      interest shall become due, or shall fail to pay any fee or other amount payable
      hereunder within five Domestic Business Days after such fee or other amount
      becomes due; or

     

    (b)  the
      Borrower or any Subsidiary shall fail to observe or perform any covenant
      contained in Sections 5.02(ii), 5.03 to 5.12, inclusive of the Existing Credit
      Agreement, or Section 5.15 or 5.20 to 5.26, inclusive of the Existing Credit
      Agreement; or

     

    
      
        WCSR
          3448952v3

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (c)  any
      Loan
      Party shall fail to observe or perform any covenant or agreement contained
      or
      incorporated by reference in any Loan Document (other than those covered by
      clause (a) or (b) above) for thirty days after the earlier of (i) the first
      day
      on which such Loan Party has knowledge of such failure or (ii) written notice
      thereof has been given to the Borrower by the Bank; or

     

    (d)  any
      representation, warranty, certification or statement made or deemed made by
      any
      Loan Party in any Loan Document or in any certificate, financial statement
      or
      other document delivered pursuant to any Loan Document shall prove to have
      been
      incorrect or misleading in any material respect when made (or deemed made);
      or

     

    (e)  the
      Borrower or any Subsidiary shall fail to make any payment in respect of Debt
      outstanding (other than the Note) in an aggregate principal amount in excess
      of
      $10,000,000 when due or within any applicable grace period; or

     

    (f)  any
      event
      or condition shall occur which results in the acceleration of the maturity
      of
      Debt outstanding of the Borrower or any Subsidiary in an aggregate principal
      amount in excess of $10,000,000 or the mandatory prepayment or purchase of
      such
      Debt by the Borrower (or its designee) or such Subsidiary (or its designee)
      prior to the scheduled maturity thereof, or enables (or, with the giving of
      notice or lapse of time or both, would enable) the holders of such Debt or
      any
      Person acting on such holders’ behalf to accelerate the maturity thereof or
      require the mandatory prepayment or purchase thereof prior to the scheduled
      maturity thereof, without regard to whether such holders or other Person shall
      have exercised or waived their right to do so; or

     

    (g)  the
      Borrower, any Loan Party or any Subsidiary shall commence a voluntary case
      or
      other proceeding seeking liquidation, reorganization or other relief with
      respect to itself or its debts under any bankruptcy, insolvency or other similar
      law now or hereafter in effect or seeking the appointment of a trustee,
      receiver, liquidator, custodian or other similar official of it or any
      substantial part of its property, or shall consent to any such relief or to
      the
      appointment of or taking possession by any such official in an involuntary
      case
      or other proceeding commenced against it, or shall make a general assignment
      for
      the benefit of creditors, or shall fail generally, or shall admit in writing
      its
      inability, to pay its debts as they become due, or shall take any corporate
      action to authorize any of the foregoing; or

     

    (h)  an
      involuntary case or other proceeding shall be commenced against the Borrower,
      any Loan Party or any Subsidiary seeking liquidation, reorganization or other
      relief with respect to it or its debts under any bankruptcy, insolvency or
      other
      similar law now or hereafter in effect or seeking the appointment of a trustee,
      receiver, liquidator, custodian or other similar official of it or any
      substantial part of its property, and such involuntary case or other proceeding
      shall remain undismissed and unstayed for a period of 60 days; or an order
      for
      relief shall be entered against the Borrower, any other Loan Party or any
      Subsidiary under the federal bankruptcy laws as now or hereafter in effect;
      or

     

    (i)  the
      Borrower or any member of the Controlled Group shall fail to pay when due any
      material amount which it shall have become liable to pay to the PBGC or to
      a
      Plan

     

    
      
        WCSR
          3448952v3

        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

     under
      Title IV of ERISA; or notice of intent to terminate a Plan or Plans shall be
      filed under Title IV of ERISA by the Borrower, any member of the Controlled
      Group, any plan administrator or any combination of the foregoing; or the PBGC
      shall institute proceedings under Title IV of ERISA to terminate or to
      cause a trustee to be appointed to administer any such Plan or Plans or a
      proceeding shall be instituted by a fiduciary of any such Plan or Plans to
      enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not
      have been dismissed within 30 days thereafter; or a condition shall exist by
      reason of which the PBGC would be entitled to obtain a decree adjudicating
      that
      any such Plan or Plans must be terminated; or

     

    (j)  one
      or
      more judgments or orders for the payment of money in an aggregate amount in
      excess of $500,000 shall be rendered against the Borrower or any Subsidiary
      and
      such judgment or order shall continue unsatisfied and unstayed for a period
      of
      30 days; or

     

    (k)  a
      federal
      tax lien shall be filed against the Borrower or any Subsidiary under
      Section 6323 of the Code or a lien of the PBGC shall be filed against the
      Borrower or any Subsidiary under Section 4068 of ERISA and in either case
      such lien shall remain undischarged for a period of 25 days after the date
      of filing; or

     

    (l)  (i) any
      Person or two or more Persons acting in concert shall have acquired beneficial
      ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
      Commission under the Securities Exchange Act of 1934) of 30% or more of the
      outstanding shares of the voting stock of the Borrower; or (ii) as of any
      date a majority of the Board of Directors of the Borrower consists of
      individuals who were not either (A) directors of the Borrower as of the
      corresponding date of the previous year, (B) selected or nominated to
      become directors by the Board of Directors of the Borrower of which a majority
      consisted of individuals described in clause (A), or (C) selected or
      nominated to become directors by the Board of Directors of the Borrower of
      which
      a majority consisted of individuals described in clause (A) and individuals
      described in clause (B); or 

     

    (m)  if
      any
      provision of this Agreement, the Note or the Guaranty, shall for any reason
      cease to be valid and binding on any Loan Party, or any Loan Party shall deny
      or
      disaffirm its obligations thereunder; or

     

    (n)  the
      occurrence of a Default (as defined in the Existing Credit Agreement) or an
      Event of Default (as defined in the Existing Credit Agreement) under the
      Existing Credit Agreement; or

     

    (o)  any
      event
      of default shall occur and be continuing under the Guaranty and such event
      of
      default continues beyond any applicable cure or grace period provided
      therein.

     

    then,
      and
      in every such event, the Bank may (i) by notice to the Borrower terminate
      the Commitment and it shall thereupon terminate, and (ii) by notice to the
      Borrower declare the Notes (together with accrued interest thereon) and all
      other amounts payable hereunder and under the other Loan Documents to be, and
      the Note (together with all accrued interest thereon) and all other amounts
      payable hereunder and under the other Loan Documents shall thereupon become,
      immediately due and payable without presentment, demand, protest or other notice
      of any kind,

     

    
      
        WCSR
          3448952v3

        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    all
      of
      which are hereby waived by the Borrower; provided
      that if
      any Event of Default specified in clause (g) or (h) above occurs with respect
      to
      the Borrower, without any notice to the Borrower, any Guarantor or any other
      act
      by the Bank, the Commitment shall thereupon automatically terminate and the
      Note
      (together with accrued interest thereon) and all other amounts payable hereunder
      and under the other Loan Documents shall automatically become immediately due
      and payable without presentment, demand, protest or other notice of any kind,
      all of which are hereby waived by the Borrower. Notwithstanding the foregoing,
      the Bank shall have available to it all other remedies at law or equity, and
      shall exercise any one or all of them at the request of the Bank.

     

    ARTICLE
      VII  

     

    CHANGE
      IN
      CIRCUMSTANCES; COMPENSATION

     

    SECTION
      7.01.   Basis
      for Determining Interest Rate Inadequate or Unfair.
      If:

     

    (a)  the
      Bank
      determines that deposits in Dollars (in the applicable amounts) are not being
      offered in the relevant market for a 1 month period; or

     

    (b)  the
      Bank
      determines that the LIBOR Market Index Rate will not adequately and fairly
      reflect the cost to the Bank of funding a Euro-Dollar Loan, the Bank shall
      forthwith give notice thereof to the Borrower, whereupon until the Bank notifies
      the Borrower that the circumstances giving rise to such suspension no longer
      exist, the obligation of the Bank to make a Euro-Dollar Loan shall be suspended.
      Unless the Borrower notifies the Bank before a Euro-Dollar Advance is disbursed
      that it elects not to borrow such Euro-Dollar Advance, such borrowing shall
      instead be made as a Base Rate Advance.

     

    SECTION
      7.02.   Illegality.
      If,
      after the date hereof, the adoption of any applicable law, rule or regulation,
      or any change in any existing or future law, rule or regulation, or any change
      in the interpretation or administration thereof by any governmental authority,
      central bank or comparable agency charged with the interpretation or
      administration thereof (any such authority, bank or agency being referred to
      as
      an “Authority” and any such event being referred to as a “Change of Law”), or
      compliance by the Bank (or its Lending Office) with any request or directive
      (whether or not having the force of law) of any Authority shall make it unlawful
      or impossible for the Bank (or its Lending Office) to make, maintain or fund
      its
      Euro-Dollar Loan, the Bank shall forthwith give notice thereof to the Borrower,
      whereupon until the Bank notifies the Borrower that the circumstances giving
      rise to such suspension no longer exist, the obligation of the Bank to make
      the
      Euro-Dollar Loan shall be suspended. Before giving any notice pursuant to this
      Section, the Bank shall designate a different Lending Office if such designation
      will avoid the need for giving such notice and will not, in the judgment of
      the
      Bank, be otherwise disadvantageous to the Bank. If the Bank shall determine
      that
      it may not lawfully continue to maintain and fund any of its outstanding
      Euro-Dollar Loans to maturity and shall so specify in such notice, the Borrower
      shall immediately prepay in full the then outstanding principal amount of each
      Euro-Dollar Loan of the Bank, together with accrued interest thereon.
      Concurrently with prepaying each such Euro-Dollar Loan, the Borrower shall
      borrow a Base Rate Loan in an equal principal amount from the Bank, and the
      Bank
      shall make such a Base Rate Loan.

     

    
      
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    SECTION
      7.03.   Increased
      Cost and Reduced Return.
      

     

                  (a)  If
      after
      the date hereof, a Change of Law or compliance by the Bank (or its Lending
      Office) with any request or directive (whether or not having the force of law)
      of any Authority:

     

    (i)  shall
      subject the Bank (or its Lending Office) to any tax, duty or other charge with
      respect to its Euro-Dollar Loan, its Note or its obligation to make a
      Euro-Dollar Loan, or shall change the basis of taxation of payments to the
      Bank
      (or its Lending Office) of the principal of or interest on its Euro-Dollar
      Loan
      or any other amounts due under this Agreement in respect of its Euro-Dollar
      Loan
      or its obligation to make the Euro-Dollar Loan (except for changes in the rate
      of tax on the overall net income of the Bank or its Lending Office imposed
      by
      the jurisdiction in which the Bank’s principal executive office or Lending
      Office is located); or

     

    (ii)  shall
      impose, modify or deem applicable any reserve, special deposit or similar
      requirement (including, without limitation, any such requirement imposed by
      the
      Board of Governors of the Federal Reserve System) against assets of, deposits
      with or for the account of, or credit extended by, any Bank (or its Lending
      Office); or 

     

    (iii)  shall
      impose on the Bank (or its Lending Office) or on the London interbank market
      any
      other condition affecting the Euro-Dollar Loan, its Note or its obligation
      to
      make Euro-Dollar Loans;

     

    and
      the
      result of any of the foregoing is to increase the cost to the Bank (or its
      Lending Office) of making or maintaining any Euro-Dollar Loan, or to reduce
      the
      amount of any sum received or receivable by the Bank (or its Lending Office)
      under this Agreement or under the Note with respect thereto, by an amount deemed
      by the Bank to be material, then, within 15 days after demand by the Bank,
      the Borrower shall pay to the Bank such additional amount or amounts as will
      compensate the Bank for such increased cost or reduction. 

     

                  
      (b)  If
      the
      Bank shall have determined that after the date hereof the adoption of any
      applicable law, rule or regulation regarding capital adequacy, or any change
      in
      any existing or future law, rule or regulation, or any change in the
      interpretation or administration thereof, or compliance by the Bank (or its
      Lending Office) with any request or directive regarding capital adequacy
      (whether or not having the force of law) of any Authority, has or would have
      the
      effect of reducing the rate of return on the Bank’s capital as a consequence of
      its obligations hereunder to a level below that which the Bank could have
      achieved but for such adoption, change or compliance (taking into consideration
      the Bank’s policies with respect to capital adequacy) by an amount deemed by the
      Bank to be material, then from time to time, within 15 days after demand by
      the Bank, the Borrower shall pay to the Bank such additional amount or amounts
      as will compensate the Bank for such reduction.

     

                
      (c)  The
      Bank
      will promptly notify the Borrower of any event of which it has knowledge,
      occurring after the date hereof, which will entitle the Bank to compensation
      pursuant to this Section and will designate a different Lending Office if such
      designation will avoid the 

     

    
      
        WCSR
          3448952v3

        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    need
      for,
      or reduce the amount of, such compensation and will not, in the judgment of
      the
      Bank, be otherwise disadvantageous to the Bank. A certificate of the Bank
      claiming compensation under this Section and setting forth the additional amount
      or amounts to be paid to it hereunder shall be conclusive in the absence of
      manifest error. In determining such amount, the Bank may use any reasonable
      averaging and attribution methods.

     

    (d)  The
      provisions of this Section 7.03 shall be applicable with respect to any
      participant, assignee or other Transferee, and any calculations required by
      such
      provisions shall be made based upon the circumstances of such participant,
      assignee or other Transferee. 

     

    SECTION
      7.04. Base
      Rate Loan Substituted for Euro-Dollar Loan.
      If
      (i) the obligation of the Bank to make or maintain a Euro-Dollar Loan has
      been suspended pursuant to Section 7.02 or (ii) the Bank has demanded
      compensation under Section 7.03, and the Borrower shall, by at least 5
      Euro-Dollar Business Days’ prior notice to the Bank, have elected that the
      provisions of this Section shall apply to the Bank, then, unless and until
      the
      Bank notifies the Borrower that the circumstances giving rise to such suspension
      or demand for compensation no longer apply the Loan which would otherwise be
      a
      Euro-Dollar Loan shall be instead a Base Rate Loan. In the event that the
      Borrower shall elect that the provisions of this Section shall apply, the
      Borrower shall remain liable for, and shall pay to the Bank as provided herein,
      all amounts due the Bank under Section 7.03 in respect of the period preceding
      the date of conversion of the Bank’s Loan resulting from the Borrower’s
      election.

     

      
        ARTICLE VIII  

     

    MISCELLANEOUS

     

    SECTION
      8.01.   Notices.
      All
      notices, requests and other communications to any party hereunder shall be
      in
      writing (including facsimile transmission or similar writing) and shall be
      given
      to such party at its address or telecopy number set forth on the signature
      pages
      hereof or such other address or telecopy number as such party may hereafter
      specify for the purpose by notice to each other party. Each such notice, request
      or other communication shall be effective (i) if given by telecopier, when
      such
      telecopy is transmitted to the telecopy number specified in this Section and
      the
      telecopy machine used by the sender provides a written confirmation that such
      telecopy has been so transmitted or receipt of such telecopy transmission is
      otherwise confirmed, (ii) if given by mail, 72 hours after such
      communication is deposited in the mails with first class postage prepaid,
      addressed as aforesaid, and (iii) if given by any other means, when delivered
      at
      the address specified in this Section; provided that notices to the Bank under
      Article II or Article VIII shall not be effective until
      received.

     

    SECTION
      8.02.   No
      Waivers.
      No
      failure or delay by the Bank in exercising any right, power or privilege
      hereunder or under the Note or other Loan Document shall operate as a waiver
      thereof nor shall any single or partial exercise thereof preclude any other
      or
      further exercise thereof or the exercise of any other right, power or privilege.
      The rights and remedies herein provided shall be cumulative and not exclusive
      of
      any rights or remedies provided by law. 

     

    SECTION
      8.03.   Expenses;
      Documentary Taxes; Indemnification.
      

     

    
      
        WCSR
          3448952v3

        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (a)  The
      Borrower shall pay (i) all out-of-pocket expenses of the Bank, including fees
      and disbursements of special counsel for the Bank, in connection with the
      preparation of this Agreement and the other Loan Documents, any waiver or
      consent hereunder or thereunder or any amendment hereof or thereof or any
      Default or alleged Default hereunder or thereunder and (ii) if a Default occurs,
      all out-of-pocket expenses incurred by the Bank, including fees and
      disbursements of counsel, in connection with such Default and collection and
      other enforcement proceedings resulting therefrom, including out-of-pocket
      expenses incurred in enforcing this Agreement and the other Loan Documents.
      

     

    (b)  The
      Borrower shall indemnify the Bank against any transfer taxes, documentary taxes,
      assessments or charges made by any Authority by reason of the execution and
      delivery of this Agreement or the other Loan Documents.

     

    (c)  The
      Borrower shall indemnify the Bank and each Affiliate thereof and their
      respective directors, officers, employees and agents from, and hold each of
      them
      harmless against, any and all losses, liabilities, claims or damages to which
      any of them may become subject, insofar as such losses, liabilities, claims
      or
      damages arise out of or result from any actual or proposed use by the Borrower
      of the proceeds of any extension of credit by the Bank hereunder or breach
      by
      the Borrower of this Agreement or any other Loan Document or from investigation,
      litigation (including, without limitation, any actions taken by the Bank to
      enforce this Agreement or any of the other Loan Documents) or other proceeding
      (including, without limitation, any threatened investigation or proceeding)
      relating to the foregoing, and the Borrower shall reimburse the Bank, and each
      Affiliate thereof and their respective directors, officers, employees and
      agents, upon demand for any expenses (including, without limitation, legal
      fees)
      incurred in connection with any such investigation or proceeding; but excluding
      any such losses, liabilities, claims, damages or expenses incurred by reason
      of
      the gross negligence or willful misconduct of the Person to be
      indemnified.

     

    SECTION
      8.04.   Setoffs.
      The
      Borrower hereby grants to the Bank, as security for the full and punctual
      payment and performance of the obligations of the Borrower under this Agreement,
      a continuing lien on and security interest in all deposits and other sums
      credited by or due from the Bank to the Borrower or subject to withdrawal by
      the
      Borrower; and regardless of the adequacy of any collateral or other means of
      obtaining repayment of such obligations, the Bank may at any time upon or after
      the occurrence of any Event of Default, and without notice to the Borrower,
      set
      off the whole or any portion or portions of any or all such deposits and other
      sums against such obligations, whether or not any other Person or Persons could
      also withdraw money therefrom. 

     

    SECTION
      8.05.   Amendments
      and Waivers.
      Any
      provision of this Agreement, the Note or any other Loan Documents may be amended
      or waived if, but only if, such amendment or waiver is in writing and is signed
      by the Borrower and the Bank. 

     

    SECTION
      8.06.   Successors
      and Assigns.
      

     

    
      
        WCSR
          3448952v3

        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (a)  The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns; provided that
      the Borrower may not assign or otherwise transfer any of its rights under this
      Agreement.

     

    (b)  Subject
      to the provisions of Section 8.07, the Borrower authorizes each Bank to
      disclose to any participant, assignee or other transferee (each a “Transferee”)
      and any prospective Transferee any and all financial and other information
      in
      such Bank’s possession concerning the Borrower which has been delivered to the
      Bank by the Borrower pursuant to this Agreement or which has been delivered
      to
      such Bank by the Borrower in connection with such Bank’s credit evaluation prior
      to entering into this Agreement.

     

    (c)  No
      Transferee shall be entitled to receive any greater payment under
      Section 7.03 than the transferor Bank would have been entitled to receive
      with respect to the rights transferred, unless such transfer is made with the
      Borrower’s prior written consent or by reason of the provisions of
      Section 7.02 or 7.03 requiring such Bank to designate a different Lending
      Office under certain circumstances or at a time when the circumstances giving
      rise to such greater payment did not exist.

     

    SECTION
      8.07.   Confidentiality.
      The
      Bank agrees to exercise its best efforts to keep any information delivered
      or
      made available by the Borrower to it which is clearly indicated to be
      confidential information, confidential from anyone other than persons employed
      or retained by the Bank who are or are expected to become engaged in evaluating,
      approving, structuring or administering the Loan; provided, however, that
      nothing herein shall prevent the Bank from disclosing such information (i)
      upon
      the order of any court or administrative agency, (ii) upon the request or demand
      of any regulatory agency or authority having jurisdiction over the Bank, (iii)
      which has been publicly disclosed, (iv) to the extent reasonably required in
      connection with any litigation to which the Bank or its Affiliates may be a
      party, (v) to the extent reasonably required in connection with the exercise
      of
      any remedy hereunder, (vi) to the Bank’s legal counsel, Affiliates and
      independent auditors and (vii) to any actual or proposed participant, assignee
      or other Transferee of all or part of its rights hereunder which has agreed
      in
      writing to be bound by the provisions of this Section 8.07.

     

    SECTION
      8.08.   Survival
      of Certain Obligations.
      Sections 7.03(a), 7.03(b) and 8.03, and the obligations of the Borrower
      thereunder, shall survive, and shall continue to be enforceable notwithstanding,
      the termination of this Agreement and the Commitment and the payment in full
      of
      the principal of and interest on the Loan.

     

    SECTION
      8.09.   North
      Carolina Law.
      This
      Agreement and the Note shall be construed in accordance with and governed by
      the
      law of the State of North Carolina.

     

    SECTION
      8.10.   Severability.
      In case
      any one or more of the provisions contained in this Agreement, the Note or
      any
      of the other Loan Documents should be invalid, illegal or unenforceable in
      any
      respect, the validity, legality and enforceability of the remaining provisions
      contained herein and therein shall not in any way be affected or impaired
      thereby and shall be enforced to the greatest extent permitted by
      law.

     

    
      
        WCSR
          3448952v3

        
        

      

      
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    SECTION
      8.11.   Interest.
      In no
      event shall the amount of interest due or payable hereunder or under the Note
      exceed the maximum rate of interest allowed by applicable law, and in the event
      any such payment is inadvertently made to the Bank by the Borrower or
      inadvertently received by the Bank, then such excess sum shall be credited
      as a
      payment of principal, unless the Borrower shall notify the Bank in writing
      that
      it elects to have such excess sum returned forthwith. It is the express intent
      hereof that the Borrower not pay and the Bank not receive, directly or
      indirectly in any manner whatsoever, interest in excess of that which may
      legally be paid by the Borrower under applicable law.

     

    SECTION
      8.12.   Interpretation.
      No
      provision of this Agreement or any of the other Loan Documents shall be
      construed against or interpreted to the disadvantage of any party hereto by
      any
      court or other governmental or judicial authority by reason of such party having
      or being deemed to have structured or dictated such provision.

     

    SECTION
      8.13.   Consent
      to Jurisdiction.
      The
      Borrower (a) and the Bank irrevocably waive, to the fullest extent permitted
      by
      law, any and all right to trial by jury in any legal proceeding arising out
      of
      this Agreement, any of the other Loan Documents, or any of the transactions
      contemplated hereby or thereby, (b) submits to personal jurisdiction in the
      State of North Carolina, the courts thereof and the United States District
      Courts sitting therein, for the enforcement of this Agreement, the Note and
      the
      other Loan Documents, (c) waives any and all personal rights under the law
      of
      any jurisdiction to object on any basis (including, without limitation,
      inconvenience of forum) to jurisdiction or venue within the State of North
      Carolina for the purpose of litigation to enforce this Agreement, the Note
      or
      the other Loan Documents, and (d) agrees that service of process may be made
      upon it in the manner prescribed in Section 8.01 for the giving of notice to
      the
      Borrower. Nothing herein contained, however, shall: (i) prevent the Bank from
      bringing any action or exercising any rights against any security and against
      the Borrower personally, and against any assets of the Borrower, within any
      other state or jurisdiction; or (ii) affect the right to serve legal process
      in
      any other manner permitted by law.

     

    SECTION
      8.14.   Counterparts.
      This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, with the same effect as if the signatures thereto and hereto were
      upon
      the same instrument.

     

    SECTION
      8.15.   Florida
      Taxes.
      In
      connection with this transaction there may or may not be due certain documentary
      stamp taxes and/or intangible taxes imposed by the State of Florida (the
“Florida Taxes”). In addition to (and not in limitation of) the indemnification
      with respect to tax liabilities set forth herein, the Borrower agrees to
      indemnify the Bank, its directors, officers, agents and employees from and
      against any and all liability, damage, loss, cost, expense or reasonable
      attorney fees which may accrue to or be sustained by the Bank or its directors,
      officers, agents or employees on account of or arising from any claim or action
      raised by, filed or brought by or in the name of any Florida governmental or
      administrative department with respect to non-payment of the Florida Taxes
      against the Bank, or any of its directors, officers, agents or
      employees.

     

    
      
        WCSR
          3448952v3

        
        

      

      
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    SECTION
      8.16.   Arbitration;
      Preservation and Limitation of Remedies.
      

     

    (a)  Upon
      demand of any party hereto, whether made before or after institution of any
      judicial proceeding, any dispute, claim or controversy arising out of, connected
      with or relating to this Agreement or any other Loan Document (“Disputes”)
      between or among the Borrower, its Subsidiaries, the Bank, or any of them,
      shall
      be resolved by binding arbitration as provided herein. Institution of a judicial
      proceeding by a party does not waive the right of that party to demand
      arbitration hereunder. Disputes may include, without limitation, tort claims,
      counterclaims, claims brought as class actions, claims arising from documents
      executed in the future, disputes as to whether a matter is subject to
      arbitration, or claims arising out of or connected with the transactions
      contemplated by this Agreement and the other Loan Documents. Arbitration shall
      be conducted under and governed by the Commercial Financial Disputes Arbitration
      Rules (the “Arbitration Rules”) of the American Arbitration Association (the
“AAA”), as in effect from time to time, and the Federal Arbitration Act, Title 9
      of the U.S. Code, as amended. All arbitration hearings shall be conducted in
      the
      city in which the principal office of the Bank is located. A hearing shall
      begin
      within ninety (90) days of demand for arbitration and all hearings shall be
      concluded within 120 days of demand for arbitration. These time limitations
      may
      not be extended unless a party shows cause for extension and then for no more
      than a total of sixty (60) days. The expedited procedures set forth in Rule
      51
      et seq. of the Arbitration Rules shall be applicable to claims of less than
      $1,000,000. All applicable statutes of limitation shall apply to any Dispute.
      A
      judgment upon the award may be entered in any court having jurisdiction. The
      panel from which all arbitrators are selected shall be comprised of licensed
      attorneys selected from the Commercial Financial Dispute Arbitration Panel
      of
      the AAA. The single arbitrator selected for expedited procedure shall be a
      retired judge from the highest court of general jurisdiction, state or federal,
      of the state where the hearing will be conducted. The parties do not waive
      applicable federal or state substantive law except as provided
      herein.

     

    (b)  Notwithstanding
      the preceding binding arbitration provisions, the parties hereto agree to
      preserve, without diminution, certain remedies that any party hereto may employ
      or exercise freely, either alone, in conjunction with or during a Dispute.
      Any
      party hereto shall have the right to proceed in any court of proper jurisdiction
      or by self-help to exercise or prosecute the following remedies, as applicable:
      (i) obtaining provisional or ancillary remedies, including injunctive relief,
      sequestration, garnishment, attachment, appointment of a receiver and filing
      an
      involuntary bankruptcy proceeding; and (ii) when applicable, a judgment by
      confession of judgment. Any claim or controversy with regard to any party’s
      entitlement to such remedies is a Dispute. Preservation of these remedies does
      not limit the power of an arbitrator to grant similar remedies that may be
      requested by a party in a Dispute. The parties hereto agree that no party shall
      have a remedy of punitive or exemplary damages against any other party in any
      Dispute, and each party hereby waives any right or claim to punitive or
      exemplary damages that it has now or that may arise in the future in connection
      with any Dispute, whether such Dispute is resolved by arbitration or judicially.
      The parties acknowledge that by agreeing to binding arbitration they have
      irrevocably waived any right they may have to a jury trial with regard to a
      Dispute. The Borrower agrees to pay the reasonable fees and expenses of counsel
      to the Bank in connection with any Dispute subject to arbitration as provided
      herein.

     

    
      
        WCSR
          3448952v3

        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed, under seal, by their respective authorized officers as of the day
      and
      year first above written.

     

    OSI
      RESTAURANT PARTNERS, INC.

    

    

    By:  /s/
      Dirk A. Montgomery_______________(SEAL)

    Dirk
      A.
      Montgomery, Senior
      Vice           

    President
      and Chief Financial Officer

    

    OSI
      Restaurant Partners, Inc.

    2202
      North Westshore Blvd., 5th
      Floor

    Tampa,
      Florida 33607

    Attention:
      Dirk A. Montgomery

    Senior
      Vice President and Chief Financial Officer 

    Telecopy
      number: (813)
      286-2247

    Telephone
      number: (813)
      282-1225

    

    with
      a
      copy to:

    

    OSI
      Restaurant Partners, Inc.

    2202
      North Westshore Blvd., 5th
      Floor

    Tampa,
      Florida 33607

    Attention:
      Joseph J. Kadow

    Senior
      Vice President, Chief Officer-Legal and Corporate Affairs and
      Secretary

    Telecopy
      number: (813)
      281-2114

    Telephone
      number: (813)
      282-1225

    

    

    

    

    [The
      remainder of this page intentionally left blank.]

    
      
         

        WCSR
          3448952v3

        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    WACHOVIA
      BANK, NATIONAL ASSOCIATION

    

    

    

    

      BY: /s/
        Lynn E. Culbreath_________________(SEAL)
Lynn
      E.
      Culbreath, Senior Vice
      President          
          

    

    Lending
      Office

    

    Wachovia
      Bank, National Association

    10
      South
      Jefferson Street, VA7391

    Roanoke,
      VA 24011

    

    with
      a
      copy to:

    

    Wachovia
      Bank, National Association

    100
      South
      Ashley Drive, FL4050

    Suite
      1000

    Tampa,
      Florida 33602

    Attention:
      Lynn E. Culbreath

    Senior
      Vice President

    Telecopy
      number: (813) 276-6454

    Telephone
      number: (813) 276-6517 

     

     

     

     

     

    
      
        
          
            WCSR
              3448952v3                                                 

          

        

        
           
            24

          
            

          

        

        
          
          

        

      

    

    
 

    
      NOTE

       

      
        	
                 $50,000,000.00

              	
                 Charlotte,
                  North
                  Carolina

              
	
                 

              	
                 October
12,
                  2006

              

      

          

      For
        value
        received, OSI RESTAURANT PARTNERS, INC., a Delaware corporation (the
“Borrower”), promises to pay to the order of WACHOVIA BANK, NATIONAL ASSOCIATION
        (the “Bank”), for the account of its Lending Office, the principal sum of FIFTY
        MILLION and No/100 Dollars ($50,000,000.00), or such lesser amount as shall
        equal the unpaid principal amount of each Advance made by the Bank to the
        Borrower pursuant to the Credit Agreement referred to below, on the dates
        and in
        the amounts provided in the Credit Agreement. The Borrower promises to pay
        interest on the unpaid principal amount of this Note on the dates and at
        the
        rate or rates provided for in the Credit Agreement. Interest on any overdue
        principal of and, to the extent permitted by law, overdue interest on the
        principal amount hereof shall bear interest at the Default Rate, as provided
        for
        in the Credit Agreement. All such payments of principal and interest shall
        be
        made in lawful money of the United States in Federal or other immediately
        available funds at the office of Wachovia Bank, National Association, 10
        South
        Jefferson Street, VA7391, Roanoke, Virginia 24011, or such other address
        as may
        be specified from time to time pursuant to the Credit Agreement.

      

      All
        Advances made by the Bank, the respective maturities thereof, the interest
        rates
        from time to time applicable thereto and all repayments of the principal
        thereof
        shall be recorded by the Bank and, prior to any transfer hereof, endorsed
        by the
        Bank on the schedule attached hereto, or on a continuation of such schedule
        attached to and made a part hereof; provided
        that the
        failure of the Bank to make, or any error of the Bank in making, any such
        recordation or endorsement shall not affect the obligations of the Borrower
        hereunder or under the Credit Agreement.

      

      This
        Note
        is the Note referred to in the Credit Agreement dated as of October 12,
        2006 between the Borrower and Wachovia Bank, National Association (as the
        same
        may be amended or modified from time to time, the “Credit Agreement”). Terms
        defined in the Credit Agreement are used herein with the same meanings.
        Reference is made to the Credit Agreement for provisions for the prepayment
        and
        the repayment hereof and the acceleration of the maturity hereof. 

      

      The
        Borrower hereby waives presentment, demand, protest, notice of demand, protest
        and nonpayment and any other notice required by law relative hereto, except
        to
        the extent as otherwise may be expressly provided for in the Credit
        Agreement.

      

      The
        Borrower agrees, in the event that this Note or any portion hereof is collected
        by law or through an attorney at law, to pay all reasonable costs of collection,
        including, without limitation, reasonable attorneys’ fees.

      
        
          WCSR
            3452301v1

        

        
          1

          
            

          

        

         

      

      

      IN
        WITNESS WHEREOF, the Borrower has caused this Note to be duly executed under
        seal, by its duly authorized officer as of the day and year first above
        written.

      

      OSI
        RESTAURANT PARTNERS, INC.

      

      

      By:
        /s/ Dirk A. Montgomery________(SEAL)

      Dirk
        A.
        Montgomery, 

      Chief
        Financial Officer

      

      Documentary
        stamp tax in the maximum

      amount
        required by Florida Statutes, Section

      201.08(2)(a)
        has been paid.

      

      

      STATE
        OF
        FLORIDA  )

      COUNTY
        OF  Hillsborough_  )

      

      THE
        FOREGOING INSTRUMENT was acknowledged before me this 12th day of
        October, 2006, by DIRK A. MONTGOMERY, as Chief Financial Officer of OSI
        RESTAURANT PARTNERS, INC., a Delaware corporation, on behalf of the corporation.
        He is personally known to me.

      

      

      _______________________________________

      Print
        Name:______________________________

      Notary
        Public - State of Florida

      My
        Commission Expires:___________________

      My
        Commission No.:______________________

       

       

       

    

     

     

    
      
        WCSR
          3452301v1

      

      
         
            2

        
          

        

      

      
        
        

      

       

      
        GUARANTY
          AGREEMENT

        

         

        THIS
          GUARANTY AGREEMENT (this “Guaranty”) is made as of the 12th day
          of October, 2006, by the undersigned (hereinafter collectively referred
          to as
          the “Guarantors” and individually as a “Guarantor”), to and for the benefit of
          WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association (the
          “Bank”).

        

        WHEREAS,
          the Guarantors have requested the Bank to extend credit to OSI Restaurant
          Partners, Inc. (the “Borrower”) under the Credit Agreement dated as of October
12, 2006 (as amended, supplemented or otherwise modified from time
          to
          time, the “Credit Agreement”) between the Borrower and the Bank, and the Bank
          has agreed to extend such credit by reason of such request and in reliance
          upon
          this Guaranty; and

        

        WHEREAS,
          capitalized terms used but not defined herein shall have the respective
          meanings
          ascribed thereto in the Credit Agreement; and

        

        WHEREAS,
          the Bank requires additional assurances and guarantees by the Guarantors
          as one
          of the conditions for making the Advances to the Borrower and entering
          into the
          Credit Agreement and the other Loan Documents; and

        

        WHEREAS,
          each Guarantor is a Subsidiary of the Borrower; and

        

        WHEREAS,
          each Guarantor acknowledges the receipt of substantial direct benefits
          by the
          making of the Advances to the Borrower;

        

        NOW
          THEREFORE, in consideration of the Advances extended and/or to be extended
          by
          the Bank to the Borrower under the Credit Agreement to be issued by the
          Bank
          under the Credit Agreement, and for other consideration, the receipt and
          sufficiency of which are hereby acknowledged, each Guarantor agrees as
          follows:

        

        1. Guaranty.
          Each
          Guarantor hereby unconditionally, absolutely, jointly and severally, guarantees
          to the Bank and its successors, endorsees and assigns that (a) the Borrower
          will
          duly and punctually pay and perform, at the place specified therefor in
          the
          Credit Agreement, all indebtedness, obligations and liabilities, direct
          or
          indirect, matured or unmatured, primary or secondary, certain or contingent,
          of
          the Borrower to the Bank now or hereafter owing or incurred pursuant to
          the
          Credit Agreement, the Note and the other Loan Documents (including without
          limitation: (i) the principal of and interest on the Note, when and as
          due,
          whether at maturity, by acceleration, upon one or more dates set for prepayment
          or otherwise and any renewals, modifications or extensions thereof, in
          whole or
          in part; (ii) all other monetary obligations of the Borrower to the Bank
          under
          the Credit Agreement and the other Loan Documents to which the Borrower
          is to be
          a party and any renewals, modifications or extensions thereof, in whole
          or in
          part; and (iii) reasonable attorneys’ fees and other costs and expenses incurred
          by the Bank in attempting to collect or enforce any of the foregoing after
          an
          Event of Default) accrued in each case to the date of payment hereunder
          (collectively, the “Obligations” and individually, an “Obligation”); and (b) the
          Borrower will perform in all other respects its obligations under the Credit
          Agreement, the Note and the other Loan Documents in accordance with the
          respective terms of the Credit Agreement, the Note and the other Loan Documents.
          

        

        2. Guaranty
          Absolute.
          This
          Guaranty is an absolute, unconditional, continuing and unlimited guaranty
          of the
          full and punctual payment and performance by the Borrower of the Obligations
          and
          not of their collectibility only and is in no way conditioned upon any
          requirement that the Bank first 

         

        
          
            WCSR
              3452315v1

          

          
            
            

            
              

            

          

          
            
            

          

           

        

        attempt
          to collect any of the Obligations from the Borrower, any other Guarantor,
          or any
          other person, or resort to any security for the Obligations or this Guaranty
          or
          to other means of obtaining payment of any of the Obligations which the
          Bank now
          has or may acquire after the date hereof, or upon any other contingency
          whatsoever, and the Bank may proceed hereunder against any Guarantor in
          the
          first instance to collect the Obligations when due, without first proceeding
          against the Borrower or any other Person and without first resorting to
          any
          security or other means of obtaining payment. The obligations of each Guarantor
          hereunder are irrevocable, absolute and unconditional, irrespective of
          genuineness, validity, regularity or enforceability of the Obligations
          or any
          security given therefor or in connection therewith or any other circumstance
          (except payment to, or express, written waiver, release or consent by,
          the Bank)
          which might otherwise constitute a legal or equitable discharge of a surety
          or
          guarantor. This Guaranty shall be in addition to any other guaranty or
          other
          security for the Obligations, and it shall not be prejudiced or rendered
          unenforceable by the invalidity of any such other guaranty or security.
          The
          liability of each Guarantor hereunder shall in no way be affected or impaired
          by
          any acceptance by the Bank of any direct or indirect security for, or other
          guaranties of, the Obligations or any other indebtedness, liability or
          obligations of the Borrower, any Guarantor or other Person to the Bank
          or by any
          failure, delay, neglect or omission of the Bank to realize upon or protect
          any
          Obligations or any such other indebtedness, liability or obligation or
          any notes
          or other instruments evidencing the same or any direct or indirect security
          therefor, or by any approval, consent, waiver or other action taken or
          omitted
          to be taken by the Bank. Upon any default by the Borrower in the payment
          and
          performance of the Obligations (and after the expiration of any applicable
          grace
          period provided in the Credit Agreement), the liabilities and obligations
          of the
          Guarantors hereunder shall, at the option of the Bank, become forthwith
          due and
          payable to the Bank without demand or notice of any nature, all of which
          are
          expressly waived by each Guarantor; provided
          that if
          any Event of Default specified in clause (g) or (h) of Section 6.01 of
          the
          Credit Agreement occurs, without any notice to any Guarantor or any other
          act by
          the Bank, the liabilities and obligations of the Guarantors hereunder shall
          automatically become immediately due and payable without presentment, demand,
          protest or other notice of any kind, all of which are hereby waived by
          the
          Guarantors. Payments by the Guarantors, or any of them, hereunder may be
          required by the Bank on any number of occasions.

        

        3. No
          Impairment.
          Each
          Guarantor agrees that its obligations hereunder shall not be impaired,
          modified,
          changed, released or limited in any manner whatsoever by any impairment,
          modification, change, release or limitation of liability of the Borrower
          or its
          estate by reason of the commencement of any case, proceeding or other action
          seeking reorganization, arrangement, adjustment, liquidation, dissolution
          or
          composition of the Borrower or its property under any law relating to
          bankruptcy, insolvency, reorganization, relief of debtors or seeking appointment
          of a receiver, trustee, custodian or similar official for the Borrower
          or for
          all or part of its property.

        

        4. Guarantors’
          Further Agreement to Pay.
          Each
          Guarantor further agrees to pay to the Bank forthwith upon demand, in funds
          immediately available to the Bank, all costs and expenses (including court
          costs
          and reasonable attorneys’ fees) incurred or expended by the Bank in connection
          with the enforcement of this Guaranty.

        

        5. Termination
          of Guaranty.
          It is
          the intention hereof that the Guarantors shall remain liable under this
          Guaranty
          until all of the Obligations have been fully paid and performed notwithstanding
          any act, omission or thing (except payment to, or express, written waiver,
          release or consent by, the Bank) which might otherwise operate as a legal
          or
          equitable discharge of the Guarantors. Notwithstanding anything contained
          herein
          to the contrary, each Guarantor agrees that to the extent all or any part
          of any
          payment of any of the Obligations previously received by the Bank pursuant
          to
          the Credit Agreement or any Loan Document or otherwise is subsequently
          invalidated, voided, declared to be fraudulent or preferential, set aside,
          recovered, rescinded or is required to be retained by or repaid to a trustee,
          receiver, or any other person under any bankruptcy code, common law, or
          equitable cause, or 

         

        
          
            WCSR
              3452315v1

          

          
            
            

            
              

            

          

          
            
            

          

           

        

        otherwise
          required to be returned by the Bank for any reason, whether by court order,
          administrative order or settlement, this Guaranty and the obligation or
          part
          thereof intended to be satisfied shall be revived and reinstated and continued
          in full force and effect as to each Guarantor’s obligations hereunder, and each
          Guarantor agrees that it shall immediately pay to the Bank the amount of
          such
          payment, notwithstanding any termination of this Guaranty or any cancellation
          of
          the Credit Agreement or the Note.

        

        6. Security;
          Setoff.
          Each
          Guarantor hereby grants to the Bank, as security for the full and punctual
          payment and performance of such Guarantor’s obligations hereunder, a continuing
          lien on and security interest in all deposits and other sums credited by
          or due
          from the Bank to the Guarantor or subject to withdrawal by the Guarantor.
          Regardless of the adequacy of any collateral or other means of obtaining
          repayment of the Obligations, the Bank may at any time upon or after the
          occurrence of any Event of Default, and without notice to any Guarantor,
          set off
          the whole or any portion or portions of any or all such deposits and other
          sums
          credited by or due from the Bank to a Guarantor or subject to withdrawal
          by a
          Guarantor against amounts payable under this Guaranty, whether or not any
          other
          person or persons could also withdraw money therefrom. Each Guarantor agrees,
          to
          the fullest extent it may effectively do so under applicable law, that
          any
          holder of a participation in a Note, whether or not acquired pursuant to
          the
          terms of the Credit Agreement, may exercise rights of set-off or counterclaim
          and other rights with respect to such participation as fully as if such
          holder
          of a participation were a direct creditor of the Guarantor in the amount
          of such
          participation. 

        

        7. Bank’s
          Freedom to Deal with Borrower and Other Parties.
          The
          Bank shall be at liberty, without giving notice to or obtaining the assent
          of
          the Guarantors, or any of them, and without relieving any Guarantor of
          any
          liability hereunder, to deal with the Borrower and with each other party
          who is
          now, or after the date hereof becomes, liable in any manner for any of
          the
          Obligations (including, without limitation, any co-guarantor), in such
          manner as
          the Bank in its sole discretion deems fit and to this end each Guarantor
          hereby
          gives to the Bank full authority in its sole discretion to do any or all
          of the
          following things: (a) extend credit, make loans and afford other financial
          accommodations to the Borrower or to any such other party at such times,
          in such
          amounts and on such terms as the Bank may approve, (b) vary the terms and
          grant
          extensions or renewals of any present or future indebtedness or obligation
          of
          the Borrower or of any such other party to the Bank, (c) grant extensions
          of
          time, waivers and other indulgences in respect thereof, (d) vary, exchange,
          release or discharge, wholly or partially, or delay in or abstain from
          perfecting and enforcing any security or guaranty or other means of obtaining
          payment of any of the Obligations or any liability under this Guaranty,
          which
          security or guaranty the Bank now has or acquires after the date hereof,
          (e)
          accept partial payments from the Borrower or such other party, (f) release
          or
          discharge, wholly or partially, any endorser or guarantor, and (g) compromise
          or
          make any settlement or other arrangement with the Borrower or any such
          other
          party.

        

        8. Representations
          and Warranties of Guarantors.
          To
          induce the Bank to extend credit to the Borrower, each Guarantor represents
          and
          warrants to the Bank that all representations and warranties relating to
          it
          contained in the Credit Agreement are true and correct.

        

        9. Covenants.
          Each
          Guarantor covenants and agrees that, from the date hereof and until payment
          in
          full of the Obligations, such Guarantor shall, unless the Bank otherwise
          consents in writing, comply with all of the covenants contained in the
          Credit
          Agreement (as it may be amended from time to time) as applicable to such
          Guarantors and shall deliver to the Bank:

        

        (i) within
          five Business Days after such Guarantor becomes aware of the occurrence
          of any
          Default or Event of Default, a certificate of a principal financial officer
          or a
          principal accounting officer of such Guarantor setting forth the details
          thereof
          and the action which the Guarantor is taking or proposes to take with respect
          thereto; and

        

        
          
            WCSR
              3452315v1

          

          
            
            

            
              

            

          

          
            
            

          

           

        

        (ii) from
          time
          to time, such additional information regarding the financial position or
          business of such Guarantor as the Bank may reasonably request. 

        

        10. Events
          of Default.
          Each of
          the following shall constitute an “Event of Default” hereunder: 

        

        (a) Failure
          of any Guarantor to pay on demand by the Bank any principal of, premium,
          if any,
          or interest on the Obligations after the same shall become due, whether
          by
          acceleration or otherwise; 

        

        (b) Failure
          of any Guarantor to observe or perform any of its covenants, conditions
          or
          agreements under this Guaranty (other than set forth in paragraph (a) above)
          for
          a period of thirty (30) days after notice specifying such failure and requesting
          that it be remedied is given by the Bank to such Guarantor;

        

        (c) Any
          representation, warranty, certification or statement made by any Guarantor
          in
          any certificate, financial statement or other document delivered pursuant
          to
          this Guaranty shall prove to have been incorrect in any material respect
          when
          made; or

        

        (d) The
          Borrower shall at any time fail to own, directly or indirectly, 100% or
          more of
          the issued and outstanding shares of voting stock of any Guarantor; provided,
          that an Event of Default shall not occur if the Borrower ceases to own
          100% of
          the issued and outstanding shares of voting stock of a Guarantor as a result
          of
          the Borrower’s sale of one hundred percent (100%) of the capital stock of such
          Guarantor in accordance with and to the extent permitted by the terms of
          Section
          5.03 of the Credit Agreement.

        

        Whenever
          any Default or Event of Default shall have occurred, the Bank may declare
          the
          entire unpaid principal of, premium, if any, and interest on the Obligations
          to
          be immediately due and payable without presentation, demand, protest and
          notice
          of any kind, all of which are hereby expressly waived; provided
          that if
          any Event of Default specified in clause (g) or (h) of Section 6.01 of
          the
          Credit Agreement occurs, without any notice to any Guarantor or any other
          act by
          the Bank, the liabilities and obligations of the Guarantors hereunder shall
          automatically become immediately due and payable without presentment, demand,
          protest or other notice of any kind, all of which are hereby waived by
          the
          Guarantors. As used herein, the term “Default” means any condition or event
          which constitutes an Event of Default or which with the giving of notices
          or
          lapse of time or both would, unless cured or waived, become an Event of
          Default.

        

        No
          failure or delay by the Bank to exercise any right, power or privilege
          hereunder
          shall operate as a waiver of any such right, power or privilege nor shall
          any
          single or partial exercise of any right, power or privilege preclude any
          other
          or further exercise thereof. The rights and remedies herein provided are
          cumulative and not exclusive of any rights or remedies provided by law.
          

        

        11. Waivers
          by Guarantors.
          Each
          Guarantor hereby waives: (a) acceptance or notice of acceptance of this
          Guaranty
          by the Bank; (b) notice of any action taken or omitted by the Bank in reliance
          hereon; (c) any duty on the part of the Bank to disclose to the Guarantors,
          or
          any of them, any facts it may now or hereafter know regarding the Borrower
          or
          any other Guarantor; (d) notice of presentment and demand for payment or
          performance of any of the Obligations; (e) protest and notice of dishonor
          or of
          default to the Guarantors, or any of them, or to any other party with respect
          to
          the payment or performance of the Obligations hereby guaranteed; (f) any
          and all
          other notices whatsoever from the Bank to which the Guarantors, or any
          of them,
          might otherwise be entitled; and (g) any requirement that the Bank be diligent
          or prompt in making demands hereunder, giving notice of any default by
          the

         

        
          
            WCSR
              3452315v1

          

          
            
            

            
              

            

          

          
            
            

          

           

        

        Borrower
          or asserting any other right of the Bank hereunder. Each Guarantor also
          irrevocably waives, to the fullest extent permitted by law, and agrees
          not to
          assert or take advantage of any and all defenses which at any time may
          be
          available in respect of such Guarantor’s obligations to the Bank hereunder by
          virtue of: (i) the statute of limitations in any action hereunder or for
          the
          collection or the performance of any of the Obligations; (ii) the incapacity,
          lack of authority, death or disability of any Guarantor or any other person
          or
          entity, or the failure of the Bank to file or enforce a claim against the
          estate
          (either in administration, bankruptcy, or any other proceeding) of the
          Borrower,
          any Guarantor or any other person or entity; (iii) the failure of the Bank
          to
          give notice of any action or non-action on the part of any other person
          whomsoever, in connection with any of the Obligations; (iv) an election
          of
          remedies by the Bank which destroys or otherwise impairs any subrogation
          rights
          of the Guarantors, or any of them, the right of a Guarantor to proceed
          against
          the Borrower for reimbursement, or the right of a Guarantor to seek contribution
          from any co-guarantor, or all or any combination of such rights; (v) the
          failure
          of the Bank to commence an action against the Borrower, any Guarantor,
          or any
          other Person; (vi) any homestead exemption, valuation, stay, moratorium
          law or
          other similar law now or hereafter in effect; (vii) any defense based on
          lack of
          due diligence by the Bank in collection, protection or realization upon
          any
          collateral securing the Obligations; (viii) any and all rights the Guarantors,
          or any of them, may now or hereafter have arising under North Carolina
          General
          Statutes §26-7; (ix) the amendment of, supplement to or waiver of any provision
          of the Credit Agreement, the Note or any other Loan Documents, (x) the
          failure
          of any Guarantor to receive any benefit from or as a result of its execution,
          delivery and performance of this Guaranty; and (xi) any other legal or
          equitable
          defenses whatsoever to which the Guarantors, or any of them, might otherwise
          be
          entitled.

        

        12. No
          Contest with Bank.
          So long
          as any Obligation remains unpaid or undischarged, no Guarantor will, by
          paying
          any sum recoverable hereunder (whether or not demanded by the Bank) or
          by any
          means or on any other ground, claim any right of subrogation with respect
          to any
          of the Obligations guaranteed hereby or to any collateral now or hereafter
          granted to secure the Obligations or claim any setoff or counterclaim against
          the Borrower in respect of any liability of the Guarantors, or any of them,
          to
          the Borrower or of the Borrower to the Guarantors, or any of them, or,
          in
          proceedings under any federal or state bankruptcy code or insolvency proceedings
          of any nature, proceed in competition with the Bank in respect of payment
          hereunder or be entitled to have the benefit of any counterclaim or proof
          of
          claim or dividend or payment by or on behalf of the Borrower or the benefit
          of
          any other security for any Obligation which, now or hereafter, the Bank
          may hold
          or in which it may have any share.

        

        13. Remedies
          Cumulative.
          Each
          right, privilege, power and remedy of the Bank under this Guaranty, the
          Credit
          Agreement, the Note or any other Loan Document, or under any other instrument
          of
          any other party securing or guaranteeing any of the Obligations or under
          applicable laws shall be cumulative and concurrent and the exercise of
          any one
          or more of them shall not preclude the simultaneous or later exercise by
          the
          Bank of any or all such other rights, privileges, powers and
          remedies.

        

        14. Demands
          and Notices.
          All
          notices, requests and other communications to the parties hereunder shall
          be in
          writing and shall be given (i) to a Guarantor in care of the Borrower at
          the
          address for the Borrower set forth in the Credit Agreement, and (ii) to
          the Bank
          at its address set forth in the Credit Agreement. All notices shall be
          given in
          the manner specified in the Credit Agreement

        

        15. Amendments,
          Waiver, Etc.
          No
          provision of this Guaranty can be changed, waived or discharged or terminated
          except by an instrument in writing signed by the Bank and each Guarantor.
          No
          course of dealing or delay or omission on the part of either party in exercising
          any right shall operate as a waiver thereof or otherwise be prejudicial
          thereto.

         

        
          
            WCSR
              3452315v1

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        16. Counterparts.
          This
          Guaranty may be executed in any number of counterparts. Each of the counterparts
          will be considered an original, and all counterparts constitute but one
          and the
          same instrument.

        

        17. Pari
          Passu Obligations.
          Each
          Guarantor warrants and represents that payment obligations and liabilities
          of
          such Guarantor under this Guaranty shall at all times rank pari passu with
          all
          other unsecured and unsubordinated payment obligations and liabilities
          (including contingent obligations and liabilities) of such Guarantor (other
          than
          those which are mandatorily preferred by laws or regulations of general
          application). Each Guarantor shall assure that the representation set forth
          herein is true and correct at all times.

        

        18. Indemnity.
          Each
          Guarantor agrees to indemnify the Bank against, and hold the Bank harmless
          from,
          any loss, cost, charge, expense (including reasonable attorneys’ fees), claims,
          demands, suits, damages, penalties, taxes, fines, levies and assessments
          which
          may be asserted or imposed against, or suffered or incurred by, the Bank
          as a
          direct or indirect result of any representation or warranty of the Borrower
          in
          the Credit Agreement or of the Guarantors herein being untrue or inaccurate
          in
          any respect or as a direct or indirect result of the failure by the Borrower
          or
          any Guarantor to observe, perform or comply with any of its respective
          covenants, undertakings or obligations set forth in the Credit Agreement,
          this
          Guaranty or any other Loan Document.

        

        19. Financial
          Information.
          The
          liability of each Guarantor under this Guaranty shall be reflected in the
          consolidated financial statements (or the notes thereto) of the Borrower
          and its
          Subsidiaries in accordance with GAAP.

        

        20. Miscellaneous
          Provisions.
          This
          Guaranty is intended to take effect as a sealed instrument to be governed
          by and
          construed in accordance with the laws of the State of North Carolina (but
          not
          including the choice of law rules thereof). This Guaranty shall bind the
          successors and assigns of each Guarantor and shall inure to the benefit
          of the
          Bank, its successors and assigns. All words herein shall be deemed to refer
          to
          the singular, plural, masculine, feminine or neuter as the identity of
          the
          person or entity may require. The descriptive headings of the several paragraphs
          of this Guaranty are inserted for convenience only and do not constitute
          a part
          of this Guaranty.

        

        21.
          Additional
          Guarantors.
          Pursuant to Section 5.02 of the Credit Agreement, certain Subsidiaries
          acquired
          or organized after the Closing Date are required to enter into this Guaranty
          as
          a Guarantor upon becoming a Subsidiary. Upon execution and delivery, after
          the
          date hereof, by the Bank and such Subsidiary of an instrument in form and
          substance satisfactory to the Bank, such Subsidiary shall become a Guarantor
          hereunder with the same force and effect as if originally named as a Guarantor
          herein. The execution and delivery of any instrument adding an additional
          Guarantor as a party to this Guaranty shall not require the consent of
          any other
          Guarantor hereunder. The rights and obligations of each Guarantor hereunder
          shall remain in full force and effect notwithstanding the addition of any
          new
          Guarantor as a party to this Guaranty.

        

        22.
          Waiver
          of Jury Trial; Consent to Jurisdiction.
          The
          Guarantors (a) and the Bank irrevocably waives, to the fullest extent permitted
          by law, any and all right to trial by jury in any legal proceeding arising
          out
          of this Guaranty, any of the other Loan Documents, or any of the transactions
          contemplated hereby or thereby, (b) submits to personal jurisdiction in
          the
          State of North Carolina, the courts thereof and the United States District
          Courts sitting therein, for the enforcement of this Guaranty and the other
          Loan
          Documents, (c) waives any and all personal rights under the law of any
          jurisdiction to object on any basis (including, without limitation,
          inconvenience of forum) to jurisdiction or venue within the State of North
          Carolina for the purpose of litigation to enforce this Guaranty or the
          other
          Loan Documents, and (d) agrees that service of process may be made upon
          it in
          the manner prescribed in

         

        
          
            WCSR
              3452315v1

          

          
            
            

            
              

            

          

          
            
            

          

           

        

         Section
          8.01 of the Credit Agreement for the giving of notice to the Borrower.
          Nothing
          herein contained, however, shall: (i) prevent the Bank from bringing any
          action
          or exercising any rights against any security and against any Guarantor
          personally, and against any assets of any Guarantor, within any other state
          or
          jurisdiction; or (ii) affect the right to serve legal process in any other
          manner permitted by law.

        

        23.
          Arbitration;
          Preservation and Limitation of Remedies.
          (a)
          Upon demand of any party hereto, whether made before or after institution
          of any
          judicial proceeding, any dispute, claim or controversy arising out of,
          connected
          with or relating to this Guaranty or any other Loan Document (“Disputes”)
          between or among the Borrower, its Subsidiaries, any Guarantor and the
          Bank, or
          any of them, shall be resolved by binding arbitration as provided herein.
          Institution of a judicial proceeding by a party does not waive the right
          of that
          party to demand arbitration hereunder. Disputes may include, without limitation,
          tort claims, counterclaims, claims brought as class actions, claims arising
          from
          documents executed in the future, disputes as to whether a matter is subject
          to
          arbitration, or claims arising out of or connected with the transactions
          contemplated by this Guaranty and the other Loan Documents. Arbitration
          shall be
          conducted under and governed by the Commercial Financial Disputes Arbitration
          Rules (the “Arbitration Rules”) of the American Arbitration Association (the
“AAA”), as in effect from time to time, and the Federal Arbitration Act, Title
          9
          of the U.S. Code, as amended. All arbitration hearings shall be conducted
          in the
          city in which the principal office of the Bank is located. A hearing shall
          begin
          within ninety (90) days of demand for arbitration and all hearings shall
          be
          concluded within 120 days of demand for arbitration. These time limitations
          may
          not be extended unless a party shows cause for extension and then for no
          more
          than a total of sixty (60) days. The expedited procedures set forth in
          Rule 51
          et seq. of the Arbitration Rules shall be applicable to claims of less
          than
          $1,000,000. All applicable statutes of limitation shall apply to any Dispute.
          A
          judgment upon the award may be entered in any court having jurisdiction.
          The
          panel from which all arbitrators are selected shall be comprised of licensed
          attorneys selected from the Commercial Financial Dispute Arbitration Panel
          of
          the AAA. The single arbitrator selected for expedited procedure shall be
          a
          retired judge from the highest court of general jurisdiction, state or
          federal,
          of the state where the hearing will be conducted. The parties do not waive
          applicable federal or state substantive law except as provided
          herein.

        

        (b) Notwithstanding
          the preceding binding arbitration provisions, the parties hereto agree
          to
          preserve, without diminution, certain remedies that any party hereto may
          employ
          or exercise freely, either alone, in conjunction with or during a Dispute.
          Any
          party hereto shall have the right to proceed in any court of proper jurisdiction
          or by self-help to exercise or prosecute the following remedies, as applicable:
          (i) obtaining provisional or ancillary remedies, including injunctive relief,
          sequestration, garnishment, attachment, appointment of a receiver and filing
          an
          involuntary bankruptcy proceeding; and (ii) when applicable, a judgment
          by
          confession of judgment. Any claim or controversy with regard to any party’s
          entitlement to such remedies is a Dispute. Preservation of these remedies
          does
          not limit the power of an arbitrator to grant similar remedies that may
          be
          requested by a party in a Dispute. The parties hereto agree that no party
          shall
          have a remedy of punitive or exemplary damages against any other party
          in any
          Dispute, and each party hereby waives any right or claim to punitive or
          exemplary damages that it has now or that may arise in the future in connection
          with any Dispute, whether such Dispute is resolved by arbitration or judicially.
          The parties acknowledge that by agreeing to binding arbitration they have
          irrevocably waived any right they may have to a jury trial with regard
          to a
          Dispute. The Guarantors agree to pay the reasonable fees and expenses of
          counsel
          to the Bank in connection with any Dispute subject to arbitration as provided
          herein.

        

        

        [Remainder
          of this page intentionally left blank]

        
          
            WCSR
              3452315v1

            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        IN
          WITNESS WHEREOF, each Guarantor has executed this Guaranty as of the day
          and
          year first above written.

        

        GUARANTORS:

        

        OUTBACK
          STEAKHOUSE OF FLORIDA, INC., 

        a
          Florida
          corporation

        

        

        
          
            	By: /s/ Dirk A.
                    Montgomery                              
                    (SEAL)

          

        

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

        CARRABBA’S
          ITALIAN GRILL, INC., a Florida corporation

        

        By:
/s/
          Dirk A.
          Montgomery                              
(SEAL)

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

        OUTBACK
          STEAKHOUSE INTERNATIONAL, INC., a Florida corporation

        

        

        By:
          /s/ Dirk A.
          Montgomery                              
(SEAL)

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

        OS
          CAPITAL, INC., a Delaware corporation

        

        

        By:
          /s/ Dirk A.
          Montgomery                              
(SEAL)

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

        OS
          PACIFIC, INC., a Florida corporation

        

        

        By:
          /s/ Dirk A.
          Montgomery                              
(SEAL)

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

        
          
            WCSR
              3452315v1

          

          
            
            

            
              

            

          

          
            
            

          

           

        

        OS
          PRIME,
          INC., a Florida corporation

        

        

        By:
          /s/ Dirk A.
          Montgomery                              
(SEAL)

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

        OS
          TROPICAL, INC., a Florida corporation

        

        

        By:
          /s/ Dirk A.
          Montgomery                              
(SEAL)

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

        BONEFISH
          GRILL, INC., a Florida corporation

        

        

        By:
          /s/ Dirk A.
          Montgomery                              
(SEAL)

        Dirk
          A.
          Montgomery, 

        Chief
          Financial Officer

        

         

         

         

         WCSR
          3452315v1

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