Document:

EXHIBIT 10.64
                                                                   -------------

                                 AMENDMENT NO. 2
                                       TO
                             SECURED PROMISSORY NOTE
                                       OF
                           BRIDGELINE SOFTWARE, INC.

         This agreement (the "AGREEMENT") is made by and between Bridgeline
Software, Inc., a Delaware corporation (the "COMPANY") and the holders of
certain secured promissory notes (as defined below) of the Company, and modifies
the terms of such notes in exchange for certain retroactive application of the
interest rate under such notes as set forth below.

                              W I T N E S S E T H :

         WHEREAS, the Company has issued $2,800,000 of secured promissory notes
in its April 2006 private financing (such secured promissory notes are
collectively hereby referred to as the "NOTES"); and,

         WHEREAS, as amended by that certain Amendment No. 1 to Secured
Promissory Note of Bridgeline Software, Inc., dated March 29, 2007, the Notes
issued in the April 2006 private financing will mature on June 21, 2007; and,

         WHEREAS, each of the holders of the Notes have executed a Noteholder
Agency Agreement (the "AGENCY AGREEMENT") with Joseph Gunnar & Co., LLC ("JGUN"
or the "NOTEHOLDER AGENT"), wherein JGUN has been authorized by the Note holders
to act in the place of such Note holders with respect to the Notes, including
the exercise of all rights thereunder and the modification thereof; and,

         WHEREAS, the Company and the Noteholder Agent have agreed to further
extend the Maturity Date (as defined in the Notes) of the Notes and to defer the
payment of interest on such Notes as set forth below; and,

         NOW, THEREFORE, in consideration of and for the mutual promises and
covenants contained herein, and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the Company and the Noteholder Agent
mutually agree and intend to be legally bound to the terms of this Agreement as
follows:

         1. EXTENSION OF MATURITY DATE; NO PENALTY FOR EXTENSION. The Maturity
Date (as defined in each of the Notes) is hereby extended to the earlier of July
5, 2007 or the date the Company closes a firm underwritten initial public
offering ("IPO") of its common stock, par value $0.001 per share (the "EXTENDED
MATURITY DATE"). The parties hereto further agree that the provisions of Section
5.C. of the Notes otherwise effective at the Maturity Date, shall, instead refer
to and be effective upon the Extended Maturity Date.

         2. INTEREST RATE ADJUSTMENTS. The rate of interest on the Notes shall
be as follows: (a) prior to the original Maturity Date of the Notes, the
interest rate shall not be adjusted and shall remain as set forth in the Notes
and all subsequent interest payments shall be deferred until

<PAGE>

the Extended Maturity Date; and (b) during the period of time between June 21,
2007 and the Extended Maturity Date, the Notes shall bear interest at the rate
of 18% per annum and all subsequent interest payments due and payable under the
Notes shall be deferred at the same interest rate until the Extended Maturity
Date (the "INCREASED INTEREST RATE"). In the event the Note is not repaid on the
Extended Maturity Date in accordance with its terms and the terms set forth
hereunder, the Notes will bear interest at the rate of 18% per annum, subject to
the terms and provisions of the Notes. All interest on the Principal outstanding
from and after January 1, 2007 (the date of the last scheduled quarterly
interest payment time), including payment of 25% of the Principal, shall be
accrued and payable on the Extended Maturity Date.

         3. All other provisions of the Notes not amended or modified herein
shall continue to have their full force and effect.

         4. This Agreement may not be amended except in a written agreement
executed by the Company and by the Note holders (or by the Noteholder Agent
pursuant to the Agency Agreement).

         5. This Agreement shall be construed and interpreted in accordance with
the internal laws of the State of New York without giving effect to the conflict
of laws principles thereof.

         6. This Agreement may be executed in counterparts, which when so
executed shall constitute one and the same agreement.

                [REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

                                        2
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of June 20, 2007.

BRIDGELINE SOFTWARE, INC.

By: /s/ Gary Cebula
    --------------------------
    Gary Cebula, Treasurer & Secretary

JOSEPH GUNNAR & CO., LLC ON BEHALF OF THE NOTE HOLDERS

By: /s/ Stephan A. Stein
    --------------------------
    Stephan A. Stein, Chief Operating Officer

                                        3Exhibit 10.1

$300,000,000

AMENDED AND RESTATED CREDIT AGREEMENT

among

RED ROBIN INTERNATIONAL, INC.,

as Borrower,

RED ROBIN GOURMET BURGERS, INC.

as Parent,

THE DOMESTIC SUBSIDIARIES OF THE BORROWER

FROM TIME TO TIME PARTIES HERETO,

as Guarantors,

THE LENDERS PARTIES HERETO,

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

WELLS FARGO BANK, NATIONAL ASSOCIATION

and

BANK OF AMERICA, N.A.,

as Syndication Agents,

and

KEYBANK NATIONAL ASSOCIATION

and

SUNTRUST BANK,

as Documentation Agents

Dated as of June 15, 2007

WACHOVIA CAPITAL MARKETS, LLC,

as Sole Lead Arranger and Sole Book Runner

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
  Section 1.1

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
  Section 1.2

  	
   

  	
  Other Definitional Provisions; Time References

  	
   

  	
  28

  
	
  Section 1.3

  	
   

  	
  Accounting Terms

  	
   

  	
  28

  
	
  ARTICLE II THE LOANS; AMOUNT AND TERMS

  	
   

  	
  29

  
	
  Section 2.1

  	
   

  	
  Revolving Loans

  	
   

  	
  29

  
	
  Section 2.2

  	
   

  	
  Term Loan

  	
   

  	
  31

  
	
  Section 2.3

  	
   

  	
  Letter of Credit Subfacility

  	
   

  	
  33

  
	
  Section 2.4

  	
   

  	
  Swingline Loan Subfacility

  	
   

  	
  36

  
	
  Section 2.5

  	
   

  	
  Incremental Facilities

  	
   

  	
  38

  
	
  Section 2.6

  	
   

  	
  Fees

  	
   

  	
  39

  
	
  Section 2.7

  	
   

  	
  Commitment Reductions

  	
   

  	
  39

  
	
  Section 2.8

  	
   

  	
  Prepayments

  	
   

  	
  40

  
	
  Section 2.9

  	
   

  	
  Default Rate and Payment Dates

  	
   

  	
  42

  
	
  Section 2.10

  	
   

  	
  Conversion Options

  	
   

  	
  42

  
	
  Section 2.11

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  43

  
	
  Section 2.12

  	
   

  	
  Pro Rata Treatment and Payments

  	
   

  	
  44

  
	
  Section 2.13

  	
   

  	
  Non-Receipt of Funds by the Administrative
  Agent

  	
   

  	
  46

  
	
  Section 2.14

  	
   

  	
  Inability to Determine Interest Rate

  	
   

  	
  47

  
	
  Section 2.15

  	
   

  	
  Illegality

  	
   

  	
  47

  
	
  Section 2.16

  	
   

  	
  Requirements of Law

  	
   

  	
  48

  
	
  Section 2.17

  	
   

  	
  Indemnity

  	
   

  	
  49

  
	
  Section 2.18

  	
   

  	
  Taxes

  	
   

  	
  49

  
	
  Section 2.19

  	
   

  	
  Indemnification; Nature of Issuing Lender’s Duties

  	
   

  	
  51

  
	
  Section 2.20

  	
   

  	
  Extension of Maturity Date

  	
   

  	
  52

  
	
  ARTICLE III REPRESENTATIONS AND WARRANTIES

  	
   

  	
  54

  
	
  Section 3.1

  	
   

  	
  Financial Condition

  	
   

  	
  54

  
	
  Section 3.2

  	
   

  	
  No Change

  	
   

  	
  55

  
	
  Section 3.3

  	
   

  	
  Corporate Existence; Compliance with Law

  	
   

  	
  55

  
	
  Section 3.4

  	
   

  	
  Corporate Power; Authorization; Enforceable
  Obligations

  	
   

  	
  55

  
	
  Section 3.5

  	
   

  	
  Compliance with Laws; No Conflict; No Default

  	
   

  	
  56

  
	
  Section 3.6

  	
   

  	
  No Material Litigation

  	
   

  	
  56

  
	
  Section 3.7

  	
   

  	
  Investment Company Act; Etc.

  	
   

  	
  57

  
	
  Section 3.8

  	
   

  	
  Margin Regulations

  	
   

  	
  57

  
	
  Section 3.9

  	
   

  	
  ERISA

  	
   

  	
  57

  
	
  Section 3.10

  	
   

  	
  Environmental Matters

  	
   

  	
  58

  
	
  Section 3.11

  	
   

  	
  Purpose of Loans

  	
   

  	
  59

  
	
  Section 3.12

  	
   

  	
  Subsidiaries

  	
   

  	
  59

  
	
  Section 3.13

  	
   

  	
  Ownership; Insurance

  	
   

  	
  59

  
	
  Section 3.14

  	
   

  	
  Indebtedness

  	
   

  	
  60

  
	
  Section 3.15

  	
   

  	
  Taxes

  	
   

  	
  60

  
	
  Section 3.16

  	
   

  	
  Intellectual Property

  	
   

  	
  60

  
	
  Section 3.17

  	
   

  	
  Solvency

  	
   

  	
  60

  
	
  Section 3.18

  	
   

  	
  Investments

  	
   

  	
  61

  
	
  Section 3.19

  	
   

  	
  Location of Collateral

  	
   

  	
  61

  

 

 i
 

 

	
  Section 3.20

  	
   

  	
  No Burdensome Restrictions

  	
   

  	
  61

  
	
  Section 3.21

  	
   

  	
  Brokers’ Fees

  	
   

  	
  61

  
	
  Section 3.22

  	
   

  	
  Labor Matters

  	
   

  	
  61

  
	
  Section 3.23

  	
   

  	
  Security Documents

  	
   

  	
  61

  
	
  Section 3.24

  	
   

  	
  Accuracy and Completeness of Information

  	
   

  	
  62

  
	
  Section 3.25

  	
   

  	
  Material Contracts

  	
   

  	
  62

  
	
  Section 3.26

  	
   

  	
  Anti-Terrorism Laws

  	
   

  	
  62

  
	
  Section 3.27

  	
   

  	
  Compliance with OFAC Rules and Regulations

  	
   

  	
  62

  
	
  Section 3.28

  	
   

  	
  Compliance with FCPA

  	
   

  	
  63

  
	
  ARTICLE IV CONDITIONS PRECEDENT

  	
   

  	
  63

  
	
  Section 4.1

  	
   

  	
  Conditions to Closing and Initial Extensions of
  Credit

  	
   

  	
  63

  
	
  Section 4.2

  	
   

  	
  Conditions to All Extensions of Credit

  	
   

  	
  67

  
	
  ARTICLE V AFFIRMATIVE COVENANTS

  	
   

  	
  68

  
	
  Section 5.1

  	
   

  	
  Financial Statements

  	
   

  	
  68

  
	
  Section 5.2

  	
   

  	
  Certificates; Other Information

  	
   

  	
  69

  
	
  Section 5.3

  	
   

  	
  Payment of Taxes and Other Obligations

  	
   

  	
  71

  
	
  Section 5.4

  	
   

  	
  Conduct of Business and Maintenance of Existence

  	
   

  	
  71

  
	
  Section 5.5

  	
   

  	
  Maintenance of Property; Insurance

  	
   

  	
  71

  
	
  Section 5.6

  	
   

  	
  Inspection of Property; Books and Records;
  Discussions

  	
   

  	
  72

  
	
  Section 5.7

  	
   

  	
  Notices

  	
   

  	
  72

  
	
  Section 5.8

  	
   

  	
  Environmental Laws

  	
   

  	
  73

  
	
  Section 5.9

  	
   

  	
  Financial Covenants

  	
   

  	
  74

  
	
  Section 5.11

  	
   

  	
  Compliance with Law

  	
   

  	
  74

  
	
  Section 5.12

  	
   

  	
  Pledged Assets

  	
   

  	
  74

  
	
  Section 5.13

  	
   

  	
  Covenants Regarding Intellectual Property

  	
   

  	
  77

  
	
  Section 5.14

  	
   

  	
  Deposit and Securities Accounts

  	
   

  	
  78

  
	
  Section 5.15

  	
   

  	
  Further Assurances

  	
   

  	
  78

  
	
  ARTICLE VI NEGATIVE COVENANTS

  	
   

  	
  78

  
	
  Section 6.1

  	
   

  	
  Indebtedness

  	
   

  	
  79

  
	
  Section 6.2

  	
   

  	
  Liens

  	
   

  	
  80

  
	
  Section 6.3

  	
   

  	
  Guaranty Obligations

  	
   

  	
  80

  
	
  Section 6.4

  	
   

  	
  Nature of Business

  	
   

  	
  80

  
	
  Section 6.5

  	
   

  	
  Consolidation, Merger, Sale or Purchase of Assets,
  etc

  	
   

  	
  80

  
	
  Section 6.6

  	
   

  	
  Advances, Investments and Loans

  	
   

  	
  82

  
	
  Section 6.7

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  82

  
	
  Section 6.8

  	
   

  	
  Ownership of Subsidiaries; Restrictions

  	
   

  	
  82

  
	
  Section 6.9

  	
   

  	
  Fiscal Year; Organizational Documents; Material
  Contracts

  	
   

  	
  82

  
	
  Section 6.10

  	
   

  	
  Limitation on Restricted Actions

  	
   

  	
  83

  
	
  Section 6.11

  	
   

  	
  Restricted Payments

  	
   

  	
  83

  
	
  Section 6.12

  	
   

  	
  Sale Leasebacks

  	
   

  	
  83

  
	
  Section 6.13

  	
   

  	
  No Further Negative Pledges

  	
   

  	
  84

  
	
  Section 6.14

  	
   

  	
  Amendments to Subordinated Debt, etc

  	
   

  	
  84

  
	
  Section 6.15

  	
   

  	
  Management Fees

  	
   

  	
  84

  
	
  Section 6.16

  	
   

  	
  Parent Holding Company/Liquor License Subsidiaries

  	
   

  	
  84

  
	
  ARTICLE VII EVENTS OF DEFAULT

  	
   

  	
  85

  
	
  Section 7.1

  	
   

  	
  Events of Default

  	
   

  	
  85

  
	
  Section 7.2

  	
   

  	
  Acceleration; Remedies

  	
   

  	
  87

  
	
  ARTICLE VIII THE AGENT

  	
   

  	
  88

  

 

 ii
 

 

	
  Section 8.1

  	
   

  	
  Appointment

  	
   

  	
  88

  
	
  Section 8.2

  	
   

  	
  Delegation of Duties

  	
   

  	
  88

  
	
  Section 8.3

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  89

  
	
  Section 8.4

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  89

  
	
  Section 8.5

  	
   

  	
  Notice of Default

  	
   

  	
  90

  
	
  Section 8.6

  	
   

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
   

  	
  90

  
	
  Section 8.7

  	
   

  	
  Indemnification

  	
   

  	
  90

  
	
  Section 8.8

  	
   

  	
  Administrative Agent in Its Individual Capacity

  	
   

  	
  91

  
	
  Section 8.9

  	
   

  	
  Successor Administrative Agent

  	
   

  	
  91

  
	
  Section 8.10

  	
   

  	
  Nature of Duties

  	
   

  	
  91

  
	
  ARTICLE IX MISCELLANEOUS

  	
   

  	
  92

  
	
  Section 9.1

  	
   

  	
  Amendments, Waivers and Release of Collateral

  	
   

  	
  92

  
	
  Section 9.2

  	
   

  	
  Notices

  	
   

  	
  93

  
	
  Section 9.3

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  95

  
	
  Section 9.4

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  95

  
	
  Section 9.5

  	
   

  	
  Payment of Expenses and Taxes

  	
   

  	
  95

  
	
  Section 9.6

  	
   

  	
  Successors and Assigns; Participations; Purchasing
  Lenders

  	
   

  	
  96

  
	
  Section 9.7

  	
   

  	
  Adjustments; Set-off

  	
   

  	
  98

  
	
  Section 9.8

  	
   

  	
  Table of Contents and Section Headings

  	
   

  	
  99

  
	
  Section 9.9

  	
   

  	
  Counterparts

  	
   

  	
  100

  
	
  Section 9.10

  	
   

  	
  Effectiveness

  	
   

  	
  100

  
	
  Section 9.11

  	
   

  	
  Severability

  	
   

  	
  100

  
	
  Section 9.12

  	
   

  	
  Integration

  	
   

  	
  100

  
	
  Section 9.13

  	
   

  	
  Governing Law

  	
   

  	
  100

  
	
  Section 9.14

  	
   

  	
  Consent to Jurisdiction and Service of Process

  	
   

  	
  100

  
	
  Section 9.15

  	
   

  	
  Confidentiality

  	
   

  	
  101

  
	
  Section 9.16

  	
   

  	
  Acknowledgments

  	
   

  	
  102

  
	
  Section 9.17

  	
   

  	
  Waivers of Jury Trial

  	
   

  	
  102

  
	
  Section 9.18

  	
   

  	
  Compliance with Tax Shelter Regulations

  	
   

  	
  102

  
	
  Section 9.19

  	
   

  	
  Patriot Act Notice

  	
   

  	
  103

  
	
  ARTICLE X GUARANTY

  	
   

  	
  103

  
	
  Section 10.1

  	
   

  	
  The Guaranty

  	
   

  	
  103

  
	
  Section 10.2

  	
   

  	
  Bankruptcy

  	
   

  	
  104

  
	
  Section 10.3

  	
   

  	
  Nature of Liability

  	
   

  	
  104

  
	
  Section 10.4

  	
   

  	
  Independent Obligation

  	
   

  	
  104

  
	
  Section 10.5

  	
   

  	
  Authorization

  	
   

  	
  105

  
	
  Section 10.6

  	
   

  	
  Reliance

  	
   

  	
  105

  
	
  Section 10.7

  	
   

  	
  Waiver

  	
   

  	
  105

  
	
  Section 10.8

  	
   

  	
  Limitation on Enforcement

  	
   

  	
  106

  
	
  Section 10.9

  	
   

  	
  Confirmation of Payment

  	
   

  	
  107

  

 

 iii
 

 

	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1.1-1

  	
   

  	
  Account Designation Letter

  
	
  Schedule 1.1-2

  	
   

  	
  Permitted Liens

  
	
  Schedule 1.1-3

  	
   

  	
  Existing Letters of Credit

  
	
  Schedule 2.1(b)(i)

  	
   

  	
  Form of Notice of Borrowing

  
	
  Schedule 2.1(e)

  	
   

  	
  Form of Revolving Note

  
	
  Schedule 2.2(d)

  	
   

  	
  Form of Term Loan Note

  
	
  Schedule 2.4(d)

  	
   

  	
  Form of Swingline Note

  
	
  Schedule 2.8(b)(ii)

  	
   

  	
  Excluded Properties

  
	
  Schedule 2.10

  	
   

  	
  Form of Notice of Conversion/Extension

  
	
  Schedule 2.18

  	
   

  	
  Tax Exempt Certificate

  
	
  Schedule 3.6

  	
   

  	
  Litigation

  
	
  Schedule 3.9

  	
   

  	
  ERISA

  
	
  Schedule 3.12

  	
   

  	
  Subsidiaries

  
	
  Schedule 3.16

  	
   

  	
  Intellectual Property

  
	
  Schedule 3.19(a)

  	
   

  	
  Location of Real Property

  
	
  Schedule 3.19(b)

  	
   

  	
  Location of Collateral

  
	
  Schedule 3.19(c)

  	
   

  	
  Chief Executive Offices

  
	
  Schedule 3.22

  	
   

  	
  Labor Matters

  
	
  Schedule 3.25

  	
   

  	
  Material Contracts

  
	
  Schedule 4.1-1

  	
   

  	
  Form of Secretary’s Certificate

  
	
  Schedule 4.1-2

  	
   

  	
  Form of Solvency Certificate

  
	
  Schedule 5.1(c)

  	
   

  	
  Form of Officer’s Certificate

  
	
  Schedule 5.5(b)

  	
   

  	
  Insurance

  
	
  Schedule 5.10

  	
   

  	
  Form of Joinder Agreement

  
	
  Schedule 5.12(b)

  	
   

  	
  Mortgaged Properties

  
	
  Schedule 6.1(b)

  	
   

  	
  Indebtedness

  
	
  Schedule 6.6

  	
   

  	
  Investments

  
	
  Schedule 9.6(c)

  	
   

  	
  Form of Assignment Agreement

  

 

 iv

AMENDED AND RESTATED CREDIT AGREEMENT,
dated as of June 15, 2007, among RED ROBIN INTERNATIONAL,
INC., a Nevada corporation, (the “Borrower”), RED ROBIN GOURMET BURGERS, INC. (the “Parent”) and
those Domestic Subsidiaries of the Borrower identified as a “Guarantor” on the
signature pages hereto and such other Domestic Subsidiaries of the Borrower as
may from time to time become a party hereto, as Guarantors, the several banks
and other financial institutions as may from time to time become parties to
this Agreement (individually a “Lender” and collectively the “Lenders”)
and WACHOVIA BANK, NATIONAL ASSOCIATION, a
national banking association, as administrative agent for the Lenders hereunder
(in such capacity, the “Administrative Agent”).

W  I  T  N  E  S  S
E  T  H:

WHEREAS, the Borrower is party to that certain Amended
and Restated Credit Agreement, dated as of December 14, 2005, among the
Borrower, the Guarantors parties thereto, the several banks and other financial
institutions parties thereto (the “Existing Lenders”) and the
Administrative Agent (as amended, modified or supplemented, the “Existing
Credit Agreement”), pursuant to which the Existing Lenders have agreed to
make loans and other financial accommodations to the Borrower in the amount of
up to $200,000,000; and

WHEREAS, the Borrower has requested that the Lenders
agree to amend and restate the Existing Credit Agreement and to make loans and
other financial accommodations to the Borrower in the amount of up to
$300,000,000, as more particularly described herein; and

WHEREAS, the Lenders have agreed to amend and restate
the Existing Credit Agreement and to make such loans and other financial
accommodations to the Borrower on the terms and conditions contained herein.

NOW, THEREFORE, in consideration of the premises and
the mutual covenants contained herein, the parties hereto hereby agree as
follows:

ARTICLE I

DEFINITIONS

Section 1.1             Defined Terms.

As used in this
Agreement, terms defined in the preamble to this Agreement have the meanings
therein indicated, and the following terms have the following meanings:

“ABR Default Rate”
shall mean, as of any date of determination, the Alternate Base Rate plus the Applicable Percentage for Alternate Base
Rate Loans in effect on such date plus 2%.

“Accessible Borrowing
Availability” shall mean, as of any date of determination, the amount that
the Borrower is able to borrow on such date under the Revolving Committed
Amount without a Default or Event of Default occurring or existing after giving
pro forma effect to such borrowing.

“Account Designation
Letter” shall mean the Notice of Account Designation Letter dated the
Closing Date from the Borrower to the Administrative Agent substantially in the
form attached hereto as Schedule 1.1-1.

“Additional Commitment
Lender” shall have the meaning set forth in Section 2.20(d).

“Additional Credit
Party” shall mean each Person that becomes a Guarantor by execution of a
Joinder Agreement in accordance with Section 5.10.

“Additional Loan”
shall have the meaning set forth in Section 2.5.

“Administrative Agent”
or “Agent” shall have the meaning set forth in the first paragraph of
this Agreement and any successors in such capacity.

“Administrative
Details Form” shall mean, with respect to any Lender, a document containing
such Lender’s contact information for purposes of notices provided under this
Credit Agreement and account details for purposes of payments made to such
Lender under this Credit Agreement.

“Affiliate” shall
mean as to any Person, any other Person (excluding any Subsidiary) which,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person.  For purposes
of this definition, a Person shall be deemed to be “controlled by” a Person if
such Person possesses, directly or indirectly, power either (a) to vote 10% or more of the
securities having ordinary voting power for the election of directors of such
Person or (b) to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise.  Notwithstanding the foregoing, neither the
Administrative Agent nor any Lender shall be deemed an Affiliate of Borrower
solely by reason of the relationship created by the Credit Documents.

 “Agreement” or “Credit Agreement”
shall mean this Credit Agreement, as amended, restated, amended and restated,
extended, replaced, modified or supplemented from time to time in accordance
with its terms.

“Alternate Base Rate”
shall mean, for any day, a rate per annum equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1%. 
For purposes hereof: “Prime Rate” shall mean, at any time, the
rate of interest per annum publicly announced from time to time by Wachovia at
its principal office in Charlotte, North Carolina as its prime rate.  Each change in the Prime Rate shall be
effective as of the opening of business on the day such change in the Prime
Rate occurs.  The parties hereto
acknowledge that the rate announced publicly by Wachovia as its Prime Rate is
an index or base rate and shall not necessarily be its lowest or best rate
charged to its customers or other banks;

 2
 

and “Federal Funds Effective Rate” shall mean,
for any day, the weighted average of the rates on overnight federal funds transactions
with members of the Federal Reserve System arranged by federal funds brokers,
as published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published on the next succeeding Business
Day, the average of the quotations for the day of such transactions received by
the Administrative Agent from three federal funds brokers of recognized
standing selected by it.  If for any
reason the Administrative Agent shall have determined (which determination shall
be conclusive in the absence of manifest error) that it is unable to ascertain
the Federal Funds Effective Rate, for any reason, including the inability or
failure of the Administrative Agent to obtain sufficient quotations in
accordance with the terms thereof, the Alternate Base Rate shall be determined
without regard to clause (b) of the first sentence of this definition, as
appropriate, until the circumstances giving rise to such inability no longer
exist.  Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective on the opening of business on the date of such change.

“Alternate Base Rate
Loans” shall mean Loans that bear interest at an interest rate based on the
Alternate Base Rate.

“Applicable
Percentage” shall mean, for any day, the rate per annum set forth below
opposite the applicable Level then in effect, it being understood that the
Applicable Percentage for (i) Alternate Base Rate Loans shall be the percentage
set forth under the column “Alternate Base Rate Margin,” (ii) LIBOR Rate Loans
and the Letter of Credit Fee shall be the percentage set forth under the column
“LIBOR Rate Margin/Letter of Credit Fee” and (iii) the Commitment Fee shall be
the percentage set forth under the column “Commitment Fee”:

	
  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  Alternate

  Base Rate

  Margin

  	
   

  	
  LIBOR Rate

  Margin/Letter

  of Credit Fee

  	
   

  	
  Commitment

  Fee

  	
   

  
	
  I

  	
   

  	
  < 0.50 to 1.00

  	
   

  	
  0.000

  	
  %

  	
  0.500

  	
  %

  	
  0.100

  	
  %

  
	
  II

  	
   

  	
  >
  0.50 to 1.00 but < 1.00 to 1.00

  	
   

  	
  0.000

  	
  %

  	
  0.625

  	
  %

  	
  0.125

  	
  %

  
	
  III

  	
   

  	
  >
  1.00 to 1.00 but < 1.50 to 1.00

  	
   

  	
  0.000

  	
  %

  	
  0.750

  	
  %

  	
  0.150

  	
  %

  
	
  IV

  	
   

  	
  >
  1.50 to 1.00 but < 2.00 to 1.00

  	
   

  	
  0.000

  	
  %

  	
  0.875

  	
  %

  	
  0.175

  	
  %

  
	
  V

  	
   

  	
  >
  2.00 to 1.00

  	
   

  	
  0.250

  	
  %

  	
  1.000

  	
  %

  	
  0.200

  	
  %

  

 

The Applicable Percentage
shall, in each case, be determined and adjusted quarterly on the date five (5)
Business Days after the date on which the Administrative Agent has received
from the Borrower the quarterly financial information and certifications
required to be delivered to the Administrative Agent and the Lenders in accordance
with the provisions of Sections 5.1(a), (b) and (c) (each an “Interest
Determination Date”).  Such
Applicable Percentage shall be effective from such Interest Determination Date
until the next Interest Determination

 3
 

Date.  If the
Borrower shall fail to provide the financial information and certifications in
accordance with the provisions of Sections 5.1(a), (b) and (c), the
Applicable Percentage shall, on the date five (5) Business Days after the date
by which the Borrower was so required to provide such financial information and
certifications to the Administrative Agent and the Lenders, be based on Level V
until such time as such information and certifications are provided, whereupon
the Level shall be determined by the then current Leverage Ratio.  In the event that any financial statement or
certification delivered pursuant to Section 5.1 is shown to be inaccurate
(regardless of whether this Agreement or the Commitments are in effect when
such inaccuracy is discovered), and such inaccuracy, if corrected, would have
led to the application of a higher Applicable Percentage for any period (an “Applicable
Period”) than the Applicable Percentage applied for such Applicable Period,
then the Borrower shall immediately (i) deliver to the Administrative Agent a
corrected compliance certificate for such Applicable Period, (ii) determine the
Applicable Percentage for such Applicable Period based upon the corrected
compliance certificate, and (iii) immediately pay to the Administrative Agent
the accrued additional interest owing as a result of such increased Applicable
Percentage for such Applicable Period, which payment shall be promptly applied
by the Administrative Agent in accordance with Section 2.12.  It is acknowledged and agreed that nothing
contained herein shall limit the rights of the Administrative Agent and the
Lenders under the Credit Documents, including their rights under Sections 2.9
and 7.1 and other of their respective rights under this Agreement.  Notwithstanding the foregoing, the Applicable
Percentage from the Closing Date through the end of the first full fiscal
quarter following the Closing Date shall be as set forth above opposite Level
III.

“Approved Fund”
shall mean, with respect to any Lender that is a fund that invests in bank
loans, any other fund that invests in bank loans and is managed by the same
investment advisor as such Lender or by an Affiliate of such investment
advisor.

“Arranger” shall
mean Wachovia Capital Markets, LLC, as Sole Lead Arranger and Book Runner.

“Asset Disposition” shall mean the disposition
of any or all of the assets (including, without limitation, the Capital Stock
of a Subsidiary or any ownership interest in a joint venture) of any Credit
Party or any Subsidiary whether by sale, lease, transfer or otherwise and the
receipt by such Credit Party or Subsidiary of cash proceeds or other non-cash
consideration therefore; provided that the disposal of assets of a restaurant
in connection with a refinishing, refurnishing or upgrade of such restaurant
for consideration less than $100,000 in the aggregate per restaurant shall not
constitute an “Asset Disposition.”  The
term “Asset Disposition” shall not include (i) Sections 6.5(a)(i),
(ii), (iii), (v) or (vii) hereof or (ii) any Equity Issuance.

“Assignment Agreement” shall mean an Assignment
and Assumption Agreement, substantially in the form of Schedule 9.6(c).

“Autoborrow Feature” shall mean that certain
automated borrowing and repayment mechanism attached to a concentration account
(the “Concentration Account”) maintained by the Borrower with the
Swingline Lender which grants the Borrower the ability to automatically borrow
and repay Swingline Loans through such Concentration Account.

 4
 

“Bankruptcy Code” shall mean the Bankruptcy
Code in Title 11 of the United States Code, as amended, modified,
succeeded or replaced from time to time.

“Base Rent Expense” shall mean, for any period,
all rental expense of the Parent and its Subsidiaries during such period,
determined on a consolidated basis in accordance with GAAP, incurred under any
rental agreements or leases of real or personal property, including space
leases and ground leases and including performance-based payments, if
any, actually paid by the Parent and its Subsidiaries under any rental
agreements or leases but excluding obligations in respect of Capital Leases,
including performance-based payments, if any, actually paid by the Parent or
any of its Subsidiaries under any rental agreements or leases and net of rental
income derived from subleases of such property.

“Borrower” shall have the meaning set forth in
the first paragraph of this Agreement.

“Borrowing Date” shall mean, in respect of any
Loan, the date such Loan is made.

“Business” shall have the meaning set forth in
Section 3.10(b).

“Business Day” shall mean a day other than a
Saturday, Sunday or other day on which commercial banks in Charlotte, North
Carolina or New York, New York are authorized or required by law to close; provided,
however, that when used in connection with a rate determination,
borrowing or payment in respect of a LIBOR Rate Loan, the term “Business Day”
shall also exclude any day on which banks in London, England are not open for
dealings in Dollar deposits in the London interbank market.

 “Capital
Lease” shall mean any lease of property, real or personal, the obligations
with respect to which are required to be capitalized on a balance sheet of the
lessee in accordance with GAAP.

“Capital Lease Obligations” shall mean the
capitalized lease obligations relating to a Capital Lease determined in
accordance with GAAP.

“Capital
Stock” shall mean (i) in the case of a corporation, capital stock,
(ii) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
capital stock, (iii) in the case of a partnership, partnership interests
(whether general or limited), (iv) in the case of a limited liability
company, membership interests and (v) any other interest or participation
that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, the issuing Person.

“Cash Equivalents” shall mean
(i) securities issued or directly and fully guaranteed or insured by the
United States of America or any agency or instrumentality thereof (provided
that the full faith and credit of the United States of America is pledged in
support thereof) having maturities of not more than twelve months from the date
of acquisition (“Government Obligations”), (ii) Dollar denominated
(or foreign currency fully hedged) time deposits, certificates of deposit,
Eurodollar time deposits and Eurodollar certificates of deposit of (y) any

 5
 

domestic
commercial bank of recognized standing having capital and surplus in excess of
$250,000,000 or (z) any bank whose short-term commercial paper
rating from S&P is at least A-1 or the equivalent thereof or from
Moody’s is at least P-1 or the equivalent thereof (any such bank being an
“Approved Bank”), in each case with maturities of not more than
364 days from the date of acquisition, (iii) commercial paper and
variable or fixed rate notes issued by any Approved Bank (or by the parent
company thereof) or any variable rate notes issued by, or guaranteed by any
domestic corporation rated A-1 (or the equivalent thereof) or better by
S&P or P-1 (or the equivalent thereof) or better by Moody’s and
maturing within six months of the date of acquisition, (iv) repurchase
agreements with a bank or trust company (including a Lender) or a recognized
securities dealer having capital and surplus in excess of $500,000,000 for
direct obligations issued by or fully guaranteed by the United States of
America, (v) obligations of any state of the United States or any
political subdivision thereof for the payment of the principal and redemption
price of and interest on which there shall have been irrevocably deposited
Government Obligations maturing as to principal and interest at times and in
amounts sufficient to provide such payment, (vi) auction preferred stock
rated in the highest short-term credit rating category by S&P or
Moody’s and (vii) shares of money market mutual or similar funds that invest
exclusively in assets satisfying the requirements of clauses (i) through (vi)
of this definition.

“Change of Control”
shall mean the occurrence of any of the following events: (a) any “person”
or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
Exchange Act becomes the “beneficial owner” (as defined in Rule l3d-3
under the Securities Exchange Act) of more than 30% of then outstanding Voting
Stock of the Parent, measured by voting power rather than the number of shares
or (b) Continuing Directors shall cease for any reason to constitute a majority
of the members of the board of directors of the Parent then in office.

“Closing Date” shall mean the date of this
Agreement.

“Code” shall mean the Internal Revenue Code of
1986, as amended from time to time.

“Collateral” shall
mean a collective reference to the collateral which is identified in, and at
any time will be covered by, the Security Documents and any other property or
assets of a Credit Party, whether tangible or intangible and whether real or
personal, that may from time to time secure the Credit Party Obligations.

“Commitment” shall mean a Revolving Commitment
and/or a Term Loan Commitment, individually or collectively, as appropriate.

“Commitment
Fee” shall have the meaning set forth in Section 2.6(a).

“Commitment
Period” shall mean the period from the Closing Date to but not including
the Revolver Maturity Date.

“Commonly Controlled Entity” shall mean an
entity, whether or not incorporated, which is under common control with the
Borrower within the meaning of Section 4001 of ERISA or is

 6
 

part
of a group which includes the Borrower and which is treated as a single
employer under Section 414 of the Code.

“Concentration Account” shall have the meaning
set forth in the definition of “Autoborrow Feature”.

“Consolidated” or “consolidated” shall
mean, with reference to any term defined herein, such term as applied to the
accounts of the Parent and its Subsidiaries, consolidated in accordance with
GAAP.

“Consolidated Capital Expenditures” shall mean,
for any period, all capital expenditures (including, without limitation, the
Total Consideration for all Permitted Acquisitions and Capital Lease
Obligations) of the Parent and its Subsidiaries on a consolidated basis for
such period, as determined in accordance with GAAP.  The term “Consolidated Capital Expenditures”
shall not include capital expenditures in respect of the reinvestment of
proceeds derived from Recovery Events received by the Parent and its
Subsidiaries to the extent that such reinvestment is permitted under the Credit
Documents.

“Consolidated Cash Flow” shall mean, for any
period, an amount equal to (i) Consolidated EBITDA for such period, minus
(ii) Maintenance Capital Expenditures for such period.

“Consolidated
Debt Service” shall mean, with respect to the Parent and its Subsidiaries
and for any period, the sum, without duplication, of (i) Consolidated Interest
Expense for such period, plus (ii) any and all scheduled repayments of
principal during such period in respect of Indebtedness that becomes due and
payable during such period pursuant to any agreement or instrument to which the
Parent or any of its Subsidiaries is a party relating to or in respect of
(without duplication) (A) the borrowing of money, including the issuance of
notes or bonds, (B) the deferred purchase price of assets (other than trade
payables or accrued liabilities arising in the ordinary course of business),
(C) any Capital Leases, and (D) Indebtedness of another Person of the type
referred to in clauses (A) through (C) above guaranteed by the Parent or any of
its Subsidiaries.  Demand obligations
shall be deemed to be due and payable during any fiscal period during which
such obligations are outstanding.

 “Consolidated
EBITDA” shall mean, with respect to any period, an amount equal to the sum
of (i) Consolidated Net Income for such period, plus (ii) in each case
to the extent deducted in the calculation of Consolidated Net Income and
without duplication, (A) depreciation and amortization for such period, plus
(B) income tax expense for such period, plus (C) Consolidated Interest
Expense for such period, plus (D) other noncash charges for such period
that will not result in cash payments in a subsequent period, plus (E)
the amount of any prepayment penalties incurred as a result of extraordinary
debt extinguishment, all as determined in accordance with GAAP.

“Consolidated Interest Expense” shall mean, for
any period, the aggregate amount of interest required to be paid or accrued by
the Parent and its Subsidiaries during such period on all Indebtedness (other
than synthetic leases and other similar off-balance sheet financing products)

 7
 

of the
Parent and its Subsidiaries outstanding during all or any part of such period
(excluding amounts paid during such period that were accrued in a prior
period), whether such interest was or is required to be reflected as an item of
expense or capitalized, including payments consisting of interest in respect of
any Capital Lease and commitment fees, agency fees, facility fees and similar
fees or expenses in connection with the borrowing of money (but excluding the
amortization of transaction fees in connection with the closing of this
Agreement).

“Consolidated Net Income” shall mean, for any
period, the consolidated net income (or deficit) of the Parent and its
Subsidiaries, after deduction of all expenses, taxes, and other proper charges,
determined in accordance with GAAP, after eliminating therefrom (i) all
extraordinary items of income and (ii) all gains attributable to sales of
assets outside the ordinary course of business.

“Continuing Directors” shall mean during any
period of 24 consecutive months commencing after the Closing Date, individuals
who at the beginning of such 24 month period were directors of the Parent
(together with any new director whose election by the Parent’s board of
directors was approved by, or whose nomination for election by the Parent’s
shareholders was recommended by, a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of
such period or whose election or nomination for election was previously
approved or recommended as described in this parenthetical).

“Copyright Licenses”
shall mean any agreement (other than any franchise agreement), whether written
or oral, providing for the grant by or to a Credit Party or any Subsidiary
thereof of any right under any Copyright, including, without limitation, any
thereof referred to in Schedule 3.16 to this Agreement.

“Copyrights” shall
mean all copyrights (other than copyrights of de minimis value) owned by the
Credit Parties and their Subsidiaries in all works, now existing or hereafter
created or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Copyright
Office or in any similar office or agency of the United States, any state
thereof or any other country or any political subdivision thereof, or
otherwise, including, without limitation, any thereof referred to in Schedule
3.16 and all renewals thereof.

“Credit Documents” shall mean this Agreement,
each of the Notes, any Joinder Agreement, the Letters of Credit and any other
LOC Documents, any Assignment Agreement, the Security Documents and all other
agreements, documents, certificates and instruments (excluding (i) any such
agreements, documents, certificates or instruments which are purely
administrative in nature and (ii) any agreements, documents, certificates and
instruments related to a Hedging Agreement) delivered to the Administrative
Agent or any Lender by any Credit Party in connection herewith or therewith.

“Credit Party” or “Credit Parties” shall
mean any of the Borrower or the Guarantors, individually or collectively, as
appropriate.

“Credit Party Obligations” shall mean, without
duplication, (i) all of the obligations, indebtedness and liabilities of the
Credit Parties to the Lenders (including the Issuing Lender)

 8
 

and
the Administrative Agent, whenever arising, under this Agreement, the Notes or
any of the other Credit Documents including principal, interest, fees,
reimbursements and indemnification obligations and other amounts (including,
but not limited to, any interest accruing after the occurrence of a filing of a
petition of bankruptcy under the Bankruptcy Code with respect to any Credit
Party, regardless of whether such interest is an allowed claim under the
Bankruptcy Code) and (ii) all liabilities and obligations, whenever arising,
owing from any Credit Party to any Hedging Agreement Provider arising under any
Secured Hedging Agreement.

“Debt Issuance” shall mean the issuance of any
Indebtedness for borrowed money by any Credit Party or any of its Subsidiaries
(excluding, for purposes hereof, any Indebtedness of the Borrower and its
Subsidiaries permitted to be incurred pursuant to Section 6.1 hereof).

“Default” shall mean any of the events
specified in Section 7.1, whether or not any requirement for the giving of
notice or the lapse of time, or both, or any other condition, has been
satisfied.

“Defaulting Lender” shall mean, at any time,
any Lender that, at such time (a) has
failed to make a Loan required pursuant to the term of this Agreement,
including the funding of a Participation Interest in accordance with the terms
hereof, (b) has failed to pay
to the Administrative Agent or any Lender an amount owed by such Lender
pursuant to the terms of this Agreement, or (c) has been deemed insolvent
or has become subject to a bankruptcy or insolvency proceeding or to a
receiver, trustee or similar official.

“Dollars” and “$” shall mean dollars in
lawful currency of the United States of America.

“Domestic Lending
Office” shall mean, initially, the office of each Lender designated as such
Lender’s Domestic Lending Office located in the United States as shown in such
Lender’s Administrative Details Form; and thereafter, such other office of such
Lender located in the United States as such Lender may from time to time
specify to the Administrative Agent and the Borrower as the office of such
Lender at which Alternate Base Rate Loans of such Lender are to be made.

“Domestic Subsidiary” shall mean any Subsidiary
that is organized and existing under the laws of the United States or any state
or commonwealth thereof or under the laws of the District of Columbia.

“Engagement Letter” shall mean the letter
agreement dated May 8, 2007 addressed to the Borrower from Wachovia and
Wachovia Capital Markets, LLC, as amended, modified or otherwise supplemented.

“Environmental Laws” shall mean any and all
applicable foreign, Federal, state, local or municipal laws, rules, orders,
regulations, statutes, ordinances, codes, decrees, requirements of any
Governmental Authority or other Requirement of Law (including common law)
regulating, relating to or imposing liability or standards of conduct
concerning protection of human health or the environment, as now or may at any
time be in effect during the term of this Agreement.

 9
 

“Equity Issuance” shall mean any issuance by
any Credit Party or any Subsidiary to any Person which is not a Credit Party of  (a) shares of its Capital Stock, (b) any shares
of its Capital Stock pursuant to the exercise of options or warrants or
(c) any shares of its Capital Stock pursuant to the conversion of any debt
securities to equity.  The term “Equity
Issuance” shall not include (i) any issuance of shares of its Capital
Stock pursuant to employee stock purchase plans or the exercise of stock
options held by or issued to current or former officers, directors or employees
of a Credit Party, (ii) any Asset Disposition or (iii) any Debt Issuance.

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time.

“Eurodollar Reserve Percentage” shall mean for
any day, the percentage (expressed as a decimal and rounded upwards, if
necessary, to the next higher 1/100th of 1%) which is in effect for such day as
prescribed by the Federal Reserve Board (or any successor) for determining the
maximum reserve requirement (including without limitation any basic,
supplemental or emergency reserves) in respect of Eurocurrency liabilities, as
defined in Regulation D of such Board as in effect from time to time, or
any similar category of liabilities for a member bank of the Federal Reserve
System in New York City.

“Event of Default” shall mean any of the events
specified in Section 7.1; provided, however, that any
requirement for the giving of notice or the lapse of time, or both, or any
other condition, has been satisfied.

“Existing Credit Agreement” shall have the
meaning set forth in the recitals to this Agreement.

“Existing Letters of Credit” shall mean the
letters of credit described by date of issuance, amount, purpose and the date
of expiry on Schedule 1.1-3 hereto.

“Existing Maturity Date” shall have the meaning
set forth in Section 2.20(a).

“Extension of Credit” shall mean, as to any
Lender, the making of a Loan by such Lender or the issuance of, or
participation in, a Letter of Credit by such Lender.

“Federal Funds Effective Rate” shall have the
meaning set forth in the definition of “Alternate Base Rate”.

“Fixed
Charge Coverage Ratio” shall mean, for any Reference Period, the ratio of
(i) Consolidated Cash Flow for such Reference Period plus Base Rent
Expense for such Reference Period to (ii) Consolidated Debt Service for such
Reference Period plus Base Rent Expense for such Reference Period plus
cash payments for all income taxes paid by the Parent and its Subsidiaries
during such Reference Period.

“Flood Hazard Property”
shall mean any real property of a Credit Party that is located in an area
designated by the Federal Emergency Management Agency as having special flood
or mud slide hazards.

 10
 

“Foreign Subsidiary” shall mean any Subsidiary
that is not a Domestic Subsidiary.

“Funded Debt”
shall mean, with respect to any Person,
without duplication, (a) all obligations of such Person for borrowed money, (b)
all obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, or upon which interest payments are customarily made, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property purchased by such Person (other than customary
reservations or retentions of title under agreements with suppliers entered
into in the ordinary course of business), (d) all obligations of such Person
incurred, issued or assumed as the deferred purchase price of property or
services purchased by such Person (other than trade debt incurred in the
ordinary course of business and due within six months of the incurrence
thereof) which would appear as liabilities on a balance sheet of such Person,
(e) the principal portion of all obligations of such Person under Capital
Leases, (f) the maximum amount of all letters of credit issued or bankers’
acceptances facilities created for the account of such Person and, without
duplication, all drafts drawn thereunder (to the extent unreimbursed), (g) all
preferred Capital Stock issued by such Person and which by the terms thereof
could be (at the request of the holders thereof or otherwise) subject to
mandatory sinking fund payments, redemption or other acceleration, (h) the
principal balance outstanding under any synthetic lease, tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing
product, (i) all net payment obligations of
such Person under Hedging Agreements, excluding any portion thereof which would
be accounted for as interest expense under GAAP, (j) all Indebtedness of others
of the type described in clauses (a) through (i) hereof secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on, or payable out of the proceeds of production
from, property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, (k) all Guaranty Obligations of such Person
with respect to Indebtedness of another Person of the type described in clauses
(a) through (j) hereof, and (l) all Indebtedness of the type described in
clauses (a) through (j) hereof of any partnership or unincorporated joint
venture in which such Person is a general partner or a joint venturer; provided,
however, that Funded Debt shall not include Indebtedness among the
Credit Parties to the extent such Indebtedness would be eliminated on a
Consolidated basis.

“GAAP” shall mean generally accepted accounting
principles in effect in the United States of America applied on a consistent
basis, subject, however, in the case of determination of
compliance with the financial covenants set out in Section 5.9 to the
provisions of Section 1.3.

“Government Acts” shall have the meaning set
forth in Section 2.19.

“Governmental Approvals” shall have the meaning
set forth in Section 3.5(a).

“Governmental Authority” shall mean any nation
or government, any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

“Guarantor” shall mean the Parent and any of
the Domestic Subsidiaries identified as a “Guarantor” on the signature pages
hereto and the Additional Credit Parties (other than Liquor

 11
 

License
Subsidiaries) which execute a Joinder Agreement, together with their successors
and permitted assigns.

“Guaranty” shall mean the guaranty of the
Guarantors set forth in Article X.

“Guaranty Obligations”
shall mean, with respect to any Person, without duplication, any obligations of
such Person (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) guaranteeing or intended to
guarantee any Indebtedness of any other Person in any manner, whether direct or
indirect, and including without limitation any obligation, whether or not
contingent, (i) to purchase any such Indebtedness or any property
constituting security therefor, (ii) to advance or provide funds or other
support for the payment or purchase of any such Indebtedness or to maintain
working capital, solvency or other balance sheet condition of such other Person
(including without limitation keep well agreements, maintenance agreements,
comfort letters or similar agreements or arrangements) for the benefit of any
holder of Indebtedness of such other Person, (iii) to lease or purchase
Property, securities or services primarily for the purpose of assuring the
holder of such Indebtedness, or (iv) to otherwise assure or hold harmless
the holder of such Indebtedness against loss in respect thereof.  The amount of any Guaranty Obligation
hereunder shall (subject to any limitations set forth therein) be deemed to be
an amount equal to the lesser of (a) the outstanding principal amount (or
maximum principal amount, if larger) of the Indebtedness in respect of which
such Guaranty Obligation is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guaranty Obligation.

“Hedging Agreement
Provider” shall mean any Person that enters into a Secured Hedging
Agreement with a Credit Party or any of its Subsidiaries that is permitted by
Section 6.1 to the extent such Person is a Lender, an Affiliate of a Lender or
any other Person that was a Lender (or an Affiliate of a Lender) at the time it
entered into the Secured Hedging Agreement but has ceased to be a Lender (or
whose Affiliate has ceased to be a Lender) under the Credit Agreement.

“Hedging Agreements” shall mean, with respect
to any Person, any agreement entered into to protect such Person against
fluctuations in interest rates, or currency or raw materials values, including,
without limitation, any interest rate swap, cap or collar agreement or similar
arrangement between such Person and one or more counterparties, any foreign
currency exchange agreement, currency protection agreements, commodity purchase
or option agreements or other interest or exchange rate or commodity price
hedging agreements.

“Incremental Facility”
shall have the meaning set forth in Section 2.5.

“Indebtedness”
shall mean, with respect to any Person,
without duplication, (a) all obligations of such Person for borrowed money, (b)
all obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, or upon which interest payments are customarily made, (c) all
obligations of such Person under conditional sale or other title retention
agreements relating to property purchased by such Person (other than customary
reservations or retentions of title under agreements with suppliers entered
into in the ordinary course of business), (d) all obligations of such Person
issued or assumed as the deferred purchase price of property or services

 12
 

purchased by such Person (other
than trade debt incurred in the ordinary course of business and due within six
months of the incurrence thereof) which would appear as liabilities on a
balance sheet of such Person, (e) all obligations of such Person under
take-or-pay or similar arrangements or under commodities agreements, (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on,
or payable out of the proceeds of production from, property owned or acquired
by such Person, whether or not the obligations secured thereby have been
assumed, (g) all Guaranty Obligations of such Person with respect to
Indebtedness of another Person, (h) the principal portion of all Capital Lease
Obligations of such Person, (i) all net payment obligations of such Person under
Hedging Agreements, excluding any portion thereof which would be accounted for
as interest expense under GAAP, (j) the maximum amount of all letters of credit
issued or bankers’ acceptances facilities created for the account of such
Person and, without duplication, all drafts drawn thereunder (to the extent
unreimbursed), (k) all preferred Capital Stock issued by such Person and which
by the terms thereof could be (at the request of the holders thereof or
otherwise) subject to mandatory sinking fund payments, redemption or other
acceleration, (l) the principal balance outstanding under any synthetic
lease, tax retention operating lease, off-balance sheet loan or similar
off-balance sheet financing product and (m)
the Indebtedness of any partnership or unincorporated joint venture in which
such Person is a general partner or a joint venturer; provided however that
Indebtedness shall not include Indebtedness among the Credit Parties to the
extent such Indebtedness would be eliminated on a Consolidated basis.

“Insolvency” shall mean, with respect to any
Multiemployer Plan, the condition that such Plan is insolvent within the
meaning of such term as used in Section 4245 of ERISA.

“Insolvent” shall mean being in a condition of
Insolvency.

“Intellectual Property” shall mean all Copyrights, Copyright Licenses, Patents,
Patent Licenses, Trademarks and Trademark Licenses.

“Interest Payment Date” shall mean (a) as to any Alternate Base Rate
Loan, the last day of each March, June, September and December and on the
Maturity Date, (b) as to any
LIBOR Rate Loan having an Interest Period of three months or less, the last day
of such Interest Period, and (c) as
to any LIBOR Rate Loan having an Interest Period longer than three months, the
day that is three months after the first day of such Interest Period and the
last day of such Interest Period.

“Interest Period”
shall mean, with respect to any LIBOR Rate Loan,

(i)              initially, the
period commencing on the Borrowing Date or conversion date, as the case may be,
with respect to such LIBOR Rate Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in the Notice of Borrowing or Notice of
Conversion given with respect thereto; and

(ii)             thereafter, each
period commencing on the last day of the immediately preceding Interest Period
applicable to such LIBOR Rate Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the

 13
 

Administrative Agent not
less than three Business Days prior to the last day of the then current
Interest Period with respect thereto;

provided
that the foregoing provisions are subject to the following:

(A)          if any Interest Period
pertaining to a LIBOR Rate Loan would otherwise end on a day that is not a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless the result of such extension would be to carry such
Interest Period into another calendar month in which event such Interest Period
shall end on the immediately preceding Business Day;

(B)           any Interest Period
pertaining to a LIBOR Rate Loan that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such Interest Period) shall end on the last
Business Day of the relevant calendar month;

(C)           if the Borrower shall
fail to give notice as provided above, the Borrower shall be deemed to have
selected an Alternate Base Rate Loan to replace the affected LIBOR Rate Loan;

(D)          no Interest Period in
respect of any Loan shall extend beyond the applicable Maturity Date and,
further with regard to the Term Loan, no Interest Period shall extend beyond
any principal amortization payment date with respect to such Term Loan unless
the portion of such Term Loan consisting of Alternate Base Rate Loans together
with the portion of such Term Loan consisting of LIBOR Rate Loans with Interest
Periods expiring prior to or concurrently with the date such principal
amortization payment date is due, is at least equal to the amount of such
principal amortization payment due on such date; and

(E)           no more than seven (7)
LIBOR Rate Loans may be in effect at any time. 
For purposes hereof, LIBOR Rate Loans with different Interest Periods
shall be considered as separate LIBOR Rate Loans, even if they shall begin on
the same date and have the same duration, although borrowings, extensions and
conversions may, in accordance with the provisions hereof, be combined at the
end of existing Interest Periods to constitute a new LIBOR Rate Loan with a
single Interest Period.

“Investment” shall mean all investments, in
cash or by delivery of property made, directly or indirectly in or to any
Person, whether by acquisition of shares of Capital Stock, property, assets,
indebtedness or other obligations or securities or by loan advance, capital
contribution or otherwise.

“Issuing Lender” shall mean Wachovia or any
successor in such capacity.

“Issuing Lender Fees” shall have the meaning
set forth in Section 2.6(c).

 14
 

“Joinder Agreement” shall mean a Joinder
Agreement substantially in the form of Schedule 5.10, executed and
delivered by an Additional Credit Party in accordance with the provisions of
Section 5.10.

“Lender” shall have the meaning set forth in
the first paragraph of this Agreement and shall include the Revolving Lenders,
the Term Loan Lenders, the Issuing Lender and the Swingline Lender.

“Lender Commitment
Letter” shall mean, with respect to any Lender, the letter (or other
correspondence) to such Lender from the Administrative Agent notifying such
Lender of its LOC Commitment, Revolving Commitment Percentage and/or Term Loan
Commitment Percentage.

“Letter of Credit Fee” shall have the meaning
set forth in Section 2.6(b).

“Letters of Credit” shall mean (a) any letter
of credit issued by the Issuing Lender pursuant to the terms hereof and (b) any
Existing Letter of Credit, in each case as such Letter of Credit may be
amended, modified, extended, renewed or replaced from time to time.

“Leverage Ratio” shall mean, for any Reference
Period, as of the end of any fiscal quarter of the Parent the ratio of (i)
Funded Debt outstanding on such date to (ii) Consolidated EBITDA for the
Reference Period ending on such date.

“LIBOR” shall mean, for any LIBOR Rate Loan for any Interest Period therefor, the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on
Reuters Screen LIBOR01 Page (or any successor page) as the London interbank
offered rate for deposits in Dollars at approximately 11:00 A.M. (London time)
two Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period.  If,
for any reason, such rate is not available, then “LIBOR” shall mean the rate
per annum at which, as determined by the Administrative Agent, Dollars in an amount
comparable to the Loans then requested are being offered to leading banks at
approximately 11:00 A.M. London
time, two (2) Business Days prior to the commencement of the applicable
Interest Period for settlement in immediately available funds by leading banks
in the London interbank market for a period equal to the Interest Period
selected.

“LIBOR Lending Office” shall mean, initially,
the office of each Lender designated as such Lender’s LIBOR Lending Office
shown on Schedule 9.2; and thereafter, such other office of such
Lender as such Lender may from time to time specify to the Administrative Agent
and the Borrower as the office of such Lender at which the LIBOR Rate Loans of
such Lender are to be made.

“LIBOR Rate” shall
mean a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following
formula:

	
  

  	
  LIBOR Rate =

  	
  LIBOR

  
	
   

  	
   

  	
  1.00 - Eurodollar Reserve Percentage

  

 

 15

“LIBOR Rate Loan” shall mean Loans the rate of
interest applicable to which is based on the LIBOR Rate.

“Lien” shall mean any mortgage, pledge,
hypothecation, assignment for security purposes, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or
any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation,
any conditional sale or other title retention agreement and any Capital Lease
having substantially the same economic effect as any of the foregoing).

“Liquor License Subsidiaries” shall mean a
collective reference to Red Robin of Anne Arundel, Inc., Red Robin of Baltimore
County, Inc., Red Robin of Montgomery County, Inc., Red Robin of Howard County,
Inc., Red Robin of Charles County, Inc., Red Robin West Walnut Club, Inc. and
any other current or future special purpose Subsidiary of a Credit Party whose
primary asset is, and sole purpose is holding, liquor licenses and other operations
incidental thereto; no Liquor License Subsidiary shall be or become a Credit
Party.

“Loan” shall mean a Revolving Loan, the Term
Loan, an Additional Loan and/or a Swingline Loan as appropriate.

“LOC Commitment” shall mean the commitment of
the Issuing Lender to issue Letters of Credit and, with respect to each Lender,
the commitment of such Lender to purchase Participation Interests in the
Letters of Credit up to such Lender’s LOC Commitment as specified in the Lender
Commitment Letter or in the Register, as such amount may be reduced from time
to time in accordance with the provisions hereof.

“LOC Committed Amount” shall have the meaning
set forth in Section 2.3(a).

“LOC Documents” shall mean, with respect to any
Letter of Credit, such Letter of Credit, any amendments thereto, any documents
delivered in connection therewith, any application therefor, and any
agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing
for (i) the rights and obligations of the parties concerned or (ii) any collateral security for
such obligations.

“LOC Obligations” shall mean, at any time, the
sum of (i) the maximum amount which is, or at any time thereafter may
become, available to be drawn under Letters of Credit then outstanding,
assuming compliance with all requirements for drawings referred to in such
Letters of Credit plus (ii) the
aggregate amount of all drawings under Letters of Credit honored by the Issuing
Lender but not theretofore reimbursed.

“Maintenance Capital
Expenditures” shall mean Consolidated Capital Expenditures which are not
New Store Capital Expenditures, including without limitation, facility upgrades
for existing stores operated by the Parent or any of its Subsidiaries.

“Mandatory Borrowing”
shall have the meaning set forth in Section 2.4(b)(ii).

 16
 

“Mandatory LOC
Borrowing” shall have the meaning set forth in Section 2.3(e).

“Material Adverse
Effect” shall mean a material adverse effect on (a) the business, operations, property or condition
(financial or otherwise) of the Credit Parties and their Subsidiaries taken as
a whole, (b) the ability of the
Borrower or any Guarantor to perform its obligations after giving effect to any
cure period hereunder, when such obligations are required to be performed,
under this Agreement, any of the Notes or any other Credit Document or (c) the validity or enforceability
of this Agreement, any of the Notes or any of the other Credit Documents or the
rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder or the perfection or priority of any Lien on any material property
or material assets in favor of the Administrative Agent.

“Material Contract” shall mean any
contract or agreement, whether written or oral, to which any Credit Party or
any of its Subsidiaries is a party as to which the breach, nonperformance,
cancellation or failure to renew by any party thereto could reasonably be
expected to have a Material Adverse Effect, including the contracts and
agreements set forth on Schedule 3.26.

“Materials of Environmental Concern” shall mean
any gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products or any hazardous or toxic substances, materials or wastes,
defined or regulated as such in or under any Environmental Law, including,
without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde
insulation.

“Maturity Date” shall mean the Revolver
Maturity Date and/or the Term Loan Maturity Date, as applicable.

“Moody’s” shall mean Moody’s Investors Service,
Inc.

“Mortgage Instruments”
shall mean the mortgages, deeds of trust or deeds to secure debt encumbering
the fee interest of the Credit Parties in the Mortgaged Properties, as the same
may be amended, restated, amended and restated, extended, replaced, modified or
supplemented from time to time in accordance with its terms.

“Mortgage Policy” shall mean, with respect to
any Mortgage Instrument, an ALTA mortgagee title insurance policy issued by a
title insurance company (the “Title Insurance Company”) selected by the
Borrower and reasonably acceptable to the Administrative Agent, assuring the
Administrative Agent that such Mortgage Instrument creates a valid and
enforceable first priority mortgage lien on the Mortgaged Property encumbered
by such Mortgage Instrument, free and clear of all defects and encumbrances
except Permitted Liens.

“Mortgaged Properties”
shall mean (a) the real property of the Credit Parties set forth on Schedule
5.12(b), which is, or will be, subject to a Mortgage Instrument from a
Credit Party for the benefit of the Administrative Agent and (b) any other real
property of a Credit Party that is required to be subject to a Lien from such
Credit Party for the benefit of the Administrative Agent in accordance with
Sections 5.12(b) and (c).

 17
 

“Multiemployer Plan”
shall mean a Plan which is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

 “Net Cash Proceeds” shall mean the
aggregate cash proceeds received by any Credit Party or any Subsidiary in
respect of any Asset Disposition, Equity Issuance or Debt Issuance, net of (a) direct costs (including, without
limitation, reasonable legal, accounting and investment banking fees, sales
commissions underwriting discounts and commissions and other customary fees and
expenses) and (b) taxes paid or
payable as a result thereof; it being understood that “Net Cash Proceeds” shall
include, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received by any Credit Party or
any Subsidiary in any Asset Disposition, Equity Issuance or Debt Issuance.

“New Store Capital Expenditures” shall mean
Consolidated Capital Expenditures relating to Permitted Acquisitions and/or the
construction after the Closing Date of new stores to be operated by the Parent
or any of its Subsidiaries.

“Non-Extending Lender” shall have the meaning
set forth in Section 2.20(b).

 “Note”
or “Notes” shall mean the Revolving Notes and/or the Term Loan Notes,
collectively, separately or individually, as appropriate.

“Notice Date”
shall have the meaning set forth in Section 2.20(b).

“Notice of Borrowing”
shall mean a request for a Revolving Loan borrowing pursuant to Section
2.1(b)(i) or a request for a Swingline Loan borrowing pursuant to Section
2.4(b)(i), as appropriate.  A Form of
Notice of Borrowing is attached as Schedule 2.1(b)(i).

“Notice of
Conversion/Extension” shall mean the written notice of conversion of a
LIBOR Rate Loan to an Alternate Base Rate Loan or an Alternate Base Rate Loan
to a LIBOR Rate Loan, or extension of a LIBOR Rate Loan, in each case
substantially in the form of Schedule 2.10.

“Obligations”
shall mean, collectively, Loans and LOC Obligations and all other obligations
of the Credit Parties to the Administrative Agent and the Lenders under the
Credit Documents.

“OFAC” means the
U.S. Department of the Treasury’s Office of Foreign Assets Control.

“Operating Lease” shall mean, as applied to any Person, any
lease (including, without limitation, leases which may be terminated by the
lessee at any time) of any property (whether real, personal or mixed) which is
not a Capital Lease other than any such lease in which that Person is the
lessor.

“Parent” shall
mean Red Robin Gourmet Burgers, Inc., a Delaware corporation.

 18
 

“Participant”
shall have the meaning set forth in Section 9.6(b).

“Participation
Interest” shall mean the purchase by a Lender of a participation interest
in Letters of Credit as provided in Section 2.3 and in Swingline Loans as
provided in Section 2.4.

“Patent
Licenses” shall mean all agreements, whether written or oral, providing for
the grant by or to a Credit Party or any Subsidiary thereof of any right to
manufacture, use or sell any invention covered by a Patent, including, without
limitation, any thereof referred to in Schedule 3.16 to the Agreement.

“Patents” shall
mean all letters patent of the United States or any other country, now existing
or hereafter arising, and all improvement patents, reissues, reexaminations,
patents of additions, renewals and extensions thereof, including, without
limitation, any thereof referred to in Schedule 3.16 to this Agreement,
and (ii) all applications for letters patent of the United States or any other
country, now existing or hereafter arising, and all provisionals, divisions,
continuations and continuations-in-part and substitutes thereof, including,
without limitation, any thereof referred to in Schedule 3.16 to this
Agreement, in each case of the Credit Parties and their Subsidiaries.

“Patriot Act”
shall have the meaning set forth in Section 9.19.

“PBGC” shall mean
the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA.

“Permitted
Acquisition” shall mean an acquisition or any series of related
acquisitions by a Credit Party of all or substantially all of the assets or a
majority of Capital Stock of a Person that is incorporated, formed or organized
in the United States or Canada or any division, line of business or other
business unit of a Person that is incorporated, formed or organized in the
United States (such Person or such division, line of business or other business
unit of such Person referred to herein as the “Target”), in each case
that is a purchase or repurchase of a Red Robin franchise or of a Target that is
converted into one or more Red Robin restaurants, so long as (a) no Default or
Event of Default shall then exist or will exist after giving effect thereto,
(b) the Credit Parties shall demonstrate to the reasonable satisfaction of the
Administrative Agent that the Credit Parties will be in compliance on a Pro
Forma Basis upon the consummation of any such acquisition with all of the terms
and provisions of the financial covenants set forth in Section 5.9, (c) the
Administrative Agent, on behalf of the Lenders, shall have received (or shall
receive in connection with the closing of such acquisition) a first priority
perfected security interest (subject to Permitted Liens) in all personal
property (including, without limitation, Capital Stock) and, to the extent
required hereunder, all real property acquired with respect to the Target, and
if the Capital Stock of the Target is acquired and the Target becomes a
Subsidiary that is not a Liquor License Subsidiary, then such Target shall, in
connection with the closing of such acquisition, execute and deliver to the
Administrative Agent a Joinder Agreement in accordance with the terms of
Section 5.10, (d) the Target in any acquisition involving Total Consideration
in excess of $5,000,000 has earnings before interest, taxes, depreciation and
amortization for the four fiscal quarter prior to the acquisition date in an
amount greater than $0

 19
 

and (e) such
acquisition is not a “hostile” acquisition and has been approved by the
applicable Credit Party and the Target.

“Permitted
Investments” shall mean:

(i)            cash and Cash Equivalents not to
exceed at any time $10,000,000 in the aggregate over any period of thirty (30)
consecutive days if, during such period, there are borrowings outstanding under
Section 2.1 hereof;

(ii)           receivables owing to any Credit Party
or any of its Subsidiaries, and advances to suppliers and other extensions of
trade credit, in each case if created, acquired or made in the ordinary course
of business and payable or dischargeable in accordance with customary trade
terms;

(iii)          Investments or loans (pursuant to
Section 6.1(d)) made by a Credit Party in or to another Credit Party;

(iv)          (A) loans and advances to employees to
finance purchases of Capital Stock of the Parent in an aggregate amount not to
exceed $500,000 and (B) advances to officers, directors and employees for
travel and other ordinary course expenses and other loans and advances to
employees, in an aggregate amount not to exceed $500,000 at any time
outstanding;

(v)           Investments (including debt
obligations) received in connection with the bankruptcy or reorganization of
franchisees, suppliers and customers and in settlement of delinquent
obligations of, and other disputes with franchisees, customers and suppliers
arising in the ordinary course of business;

(vi)          non-cash consideration received in
connection with sales of property or assets permitted under
Section 6.5(a);

(vii)         Permitted Acquisitions;

(viii)        Guaranty Obligations permitted by
Section 6.3;

(ix)           Investments existing as of the Closing
Date as set forth on Schedule 6.6;

(x)            Investments to the extent permitted
under Section 6.11(c) and (d); and

(xi)           in addition to the Investments
otherwise expressly permitted by this definition, other Investments by any
Credit Party in an aggregate amount not to exceed $500,000 during the term of
this Agreement.

 20
 

“Permitted Liens”
shall mean:

(i)            Liens created by or otherwise
existing, under or in connection with this Agreement or the other Credit
Documents in favor of the Administrative Agent, on behalf of the Secured
Parties;

(ii)           purchase money Liens securing
purchase money indebtedness (and refinancings thereof) to the extent permitted
under Section 6.1(c);

(iii)          Liens for taxes, assessments, charges
or other governmental levies not yet due or as to which the period of grace
(not to exceed 60 days), if any, related thereto has not expired or which
are being contested in good faith by appropriate proceedings, provided
that adequate reserves with respect thereto are maintained on the books of the
Borrower or its Subsidiaries, as the case may be, in conformity with GAAP (or,
in the case of Subsidiaries with significant operations outside of the United
States of America, generally accepted accounting principles in effect from time
to time in their respective jurisdictions of incorporation);

(iv)          carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s inchoate, unperfected or other like Liens arising in
the ordinary course of business which are not overdue for a period of more than
60 days or which are being contested in good faith by appropriate
proceedings; provided that a reserve, bond or other appropriate provision shall
have been made therefor;

(v)           pledges or deposits in connection
with workers’ compensation, unemployment insurance and other social security
legislation and deposits securing liability to insurance carriers under
insurance or self-insurance arrangements in an aggregate amount not to
exceed $750,000;

(vi)          any
interest or title of a lessor under any lease entered into by any Credit Party
or any Subsidiary in the ordinary course of its business and covering only the
assets so leased;

(vii)         any extension, renewal or replacement
(or successive extensions, renewals or replacements), in whole or in part, of
any Lien referred to in the foregoing clauses (i)-(vi); provided
that such extension, renewal or replacement Lien shall be limited to all or a
part of the property which secured the Lien so extended, renewed or replaced
(plus improvements on such property);

(viii)        Liens
existing on any property or asset (A) prior to the acquisition thereof by any
Credit Party or any Subsidiary; provided that (1) such Lien is not created in
contemplation of such acquisition and (2) such Lien does not apply to any other
property or assets of the Credit Party or Subsidiary, or (B) belonging to any
Person prior to such Person becoming a Subsidiary pursuant to an acquisition
permitted by the terms of this Agreement; provided that (1) such Lien is not created
in contemplation of such

 21
 

acquisition and
(2) such Lien does not apply to any other property or assets of a Credit Party
or Subsidiary;

(ix)           Liens
consisting of conditional sale or other title retention agreements entered into
in the ordinary course of business in an aggregate amount not to exceed
$1,000,000;

(x)            deposits
to secure the performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature incurred in the ordinary course of
business;

(xi)           Liens existing on the Closing Date
and set forth on Schedule 1.1-2; provided that (a) no such Lien shall at any time
be extended to cover property or assets other than the property or assets
subject thereto on the Closing Date and
(b) the principal amount of the Indebtedness secured by such Liens
shall not be increased, extended, renewed, refunded or refinanced;

(xii)          Liens arising in connection with
Indebtedness permitted under Section 6.1(c);

(xiii)         easements, rights-of-way, zoning
restrictions, minor defects or irregularities in title and other similar
encumbrances not interfering in any material respect with the value or use of
the property to which such lien is attached;

(xiv)        Liens of Securities Intermediaries (as
defined in the UCC), banks and other financial institutions in Deposit Accounts
(as defined in the UCC), Securities Accounts (as defined in the UCC) and
similar accounts;

(xv)         any Lien with respect to judgments,
orders or awards to the extent such judgments, orders or awards secured thereby
shall not, either individually or in the aggregate, result in an Event of
Default under Section 7.1(f);

(xvi)        Liens in favor of a Hedging Agreement
Provider in connection with any Secured Hedging Agreement, but only if such
Hedging Agreement Provider and the Administrative Agent, on behalf of the
Lenders, shall share pari  passu in the collateral subject to such
Liens; and

(xvii)       other Liens in addition to those
permitted by the foregoing clauses securing Indebtedness in an aggregate amount
not to exceed $1,000,000.

“Person” shall mean an individual, partnership,
corporation, limited liability company, business trust, joint stock company,
trust, unincorporated association, joint venture, Governmental Authority or
other entity of whatever nature.

“Plan” shall mean, at any particular time, any
employee benefit plan which is covered by Title IV of ERISA and in respect
of which any Credit Party or a Commonly Controlled Entity is

 22
 

(or,
if such plan were terminated at such time, would under Section 4069 of
ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Pledge Agreements” shall mean (i) the Amended
and Restated Pledge Agreement dated as of the Closing Date to be executed in
favor of the Administrative Agent by the Borrower and each of the other Credit
Parties and (ii) any other Pledge Agreement executed by a Credit Party to
secure the Credit Party Obligations, in
each case as amended, modified, restated or supplemented from time to time.

“Prime Rate” shall have the meaning set forth
in the definition of Alternate Base Rate.

“Pro
Forma Basis” shall mean, with respect
to any transaction, that such transaction shall be deemed to have
occurred as of the first day of the twelve-month period ending as of the most
recent quarter end preceding the date of
such transaction.

“Properties” shall have the meaning set forth
in Section 3.10(a).

“Purchasing Lenders” shall have the meaning set
forth in Section 9.6(c).

“Recovery Event” shall mean theft, loss,
physical destruction or damage, taking or similar event with respect to any
property or assets owned by any Credit Party or any of its Subsidiaries which
results in the receipt by any Credit Party or any of its Subsidiaries of any
cash insurance proceeds (excluding proceeds of business interruption insurance)
or condemnation award payable by reason thereof.

“Reference Period” shall mean, as of any date
of determination, the period of four consecutive fiscal quarters of the Parent
and its Subsidiaries ending on such date.

“Register” shall have the meaning set forth in
Section 9.6(d).

“Reorganization” shall mean, with respect to
any Multiemployer Plan, the condition that such Plan is in reorganization
within the meaning of such term as used in Section 4241 of ERISA.

“Reportable Event” shall mean any of the events
set forth in Section 4043(c) of ERISA, other than those events as to which
the thirty-day notice period is waived under PBGC Reg. §4043.

“Required Lenders” shall mean Lenders holding
in the aggregate greater than 50% of (i) the outstanding Loans, Participation
Interests and unfunded Commitments (and Participation Interests therein) or (ii) if the Revolving Commitments
have been terminated, the outstanding Loans and Participation Interests
(including the Participation Interests of the Issuing Lender (in its capacity
as a Lender) in any Letters of Credit and of the Swingline Lender (in its
capacity as a Lender) in Swingline Loans); provided, however,
that if any Lender shall be a Defaulting Lender at such time, then there shall
be excluded from the determination of Required Lenders, Obligations (including
Participation Interests) owing to such Defaulting Lender and such

 23
 

Defaulting
Lender’s Commitments, or after termination of the Commitments, the principal
balance of the Obligations owing to such Defaulting Lender.

“Requirement of Law” shall mean, as to any
Person, the Certificate of Incorporation and By-laws or other
organizational or governing documents of such Person, and each law, treaty,
rule or regulation or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is
subject.

“Responsible Officer” shall mean, as to (a) the Borrower, any of the
President, the Chief Executive Officer or the Chief Financial Officer or (b) any other Credit Party, any duly
authorized officer thereof.

“Restricted
Payment” shall mean (a) any
dividend or other distribution, direct or indirect, on account of any shares of
any class of Capital Stock of the Parent or any of its Subsidiaries, now or
hereafter outstanding, (b) any
redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any shares of any class of
Capital Stock of the Parent or any of its Subsidiaries, now or hereafter
outstanding, (c) any payment
made to retire, or to obtain the surrender of, any outstanding warrants,
options or other rights to acquire shares of any class of Capital Stock of the
Parent or any of its Subsidiaries, now or hereafter outstanding, (d) any
payment or prepayment of principal or premium, if any, or interest on
redemption purchase, retirement, defeasance, sinking fund or similar payment
with respect to any Subordinated Debt, or  (e)
the payment by the Parent or any of its Subsidiaries of any management or
consulting fee to any Person or of any salary, bonus or other form of
compensation to any Person who is directly or indirectly a significant partner,
shareholder, owner or executive officer of any such Person, to the extent such
salary, bonus or other form of compensation is not included in the corporate
overhead of the Parent, the Borrower or such Subsidiary.

“Revolver Maturity
Date” shall mean the
later of (a) June 15, 2012 and (b) if the Revolver Maturity Date is
extended pursuant to Section 2.20, such extended Revolver Maturity Date as
determined pursuant to such Section 2.20.

“Revolving Commitment”
shall mean, with respect to each Revolving Lender, the commitment of such
Lender to make Revolving Loans in an aggregate principal amount at any time
outstanding up to an amount equal to such Revolving Lender’s Revolving
Commitment Percentage of the Revolving Committed Amount.

“Revolving Commitment Percentage” shall mean,
for each Revolving Lender, the percentage identified as its Revolving
Commitment Percentage in its Lender Commitment Letter, in the instrument by
which an Additional Commitment Lender becomes a Revolving Lender, or in the
Assignment Agreement pursuant to which such Lender became a Revolving Lender
hereunder, as such percentage may be modified in connection with any assignment
made in accordance with the provisions of Section 9.6(c) or any
replacement, transfer or assumption in connection with any Non-Extending Lender
or any Additional Commitment Lender in accordance with the provisions of
Section 2.20 or otherwise.

 24
 

“Revolving Committed
Amount” shall have the meaning set forth in Section 2.1.

“Revolving Lender” shall mean, as of any date
of determination, a Lender holding a Revolving Commitment, a portion of a
Revolving Loan or a Participation Interest on such date.

“Revolving Loans” shall have the meaning set
forth in Section 2.1.

“Revolving Notes” shall mean the promissory
notes of the Borrower in favor of each of the Revolving Lenders evidencing the
Revolving Loans provided pursuant to Section 2.1(e), individually or
collectively, as appropriate, as such promissory notes may be amended,
modified, supplemented, extended, renewed or replaced from time to time.

“S&P” shall mean Standard & Poor’s
Ratings Group, a division of The McGraw Hill Companies, Inc.

“Sanctioned Country”
shall mean a country subject to a sanctions program identified on the list
maintained by OFAC and available at http://www.treas.gov/offices/enforcement
/ofac/sanctions/index.html, or as otherwise published from time to time.

“Sanctioned Person”
shall mean (a) a Person named on the list of “Specially Designated Nationals
and Blocked Persons” maintained by OFAC available at
http://www.treas.gov/offices/enforcement/ofac/sdn/index.html, or as otherwise
published from time to time, or (b) (i) an agency of the government of a
Sanctioned Country, (ii) an organization controlled by a Sanctioned Country, or
(iii) a person resident in a Sanctioned Country, to the extent subject to a
sanctions program administered by OFAC.

“Sale Leaseback
Property” shall have the meaning set forth in Section 6.12.

“Sale Leaseback
Transaction” shall have the meaning set forth in Section 6.12.

“Secured Hedging Agreement” shall mean any
Hedging Agreement between a Credit Party and a Hedging Agreement Provider to
the extent permitted pursuant to Section 6.1, as amended, modified,
supplemented, extended or restated from time to time.

“Securities Exchange
Act” shall mean the Securities Exchange Act of 1934, together with any
amendment thereto or replacement thereof and any rules or regulations
promulgated thereunder.

“Security Agreements” shall mean (i) the
Amended and Restated Security Agreement dated as of the Closing Date given by
the Borrower and the other Credit Parties to the Administrative Agent and (ii)
any other Security Agreement executed by a Credit Party to secure the Credit
Party Obligations, in each case as amended, modified or supplemented from time
to time in accordance with its terms.

 25
 

“Security Documents”
shall mean the Security Agreements, the Pledge Agreements, the Mortgage
Instruments and any other documents executed and delivered in connection with
the granting, attachment and perfection of the Administrative Agent’s security
interests and liens arising thereunder, including, without limitation, UCC
financing statements.

“Single Employer Plan”
shall mean any Plan which is not a Multiemployer Plan.

“Specified Sales” shall mean (a) the sale, transfer, lease or
other disposition of inventory and materials in the ordinary course of business
and (b) the conversion of cash
into Cash Equivalents and Cash Equivalents into cash.

“Subordinated Debt”
shall mean any Indebtedness incurred by any Credit Party which by its terms is
specifically subordinated in right of payment to the prior payment of the
Credit Party Obligations on terms reasonably satisfactory to the Administrative
Agent.

“Subsidiary” shall
mean, as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests
having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which
is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person. 
Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries”
in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

“Swingline Commitment”
shall mean the commitment of the Swingline Lender to make Swingline Loans in an
aggregate principal amount at any time outstanding up to the Swingline
Committed Amount, and the commitment of the Lenders to purchase Participation
Interests in the Swingline Loans as provided in Section 2.4(b)(ii), as such
amounts may be reduced from time to time in accordance with the provisions
hereof.

“Swingline Committed
Amount” shall mean the amount of the Swingline Lender’s Swingline
Commitment as specified in Section 2.4(a).

“Swingline Lender”
shall mean Wachovia and any successor swingline lender.

“Swingline Loan”
or “Swingline Loans” shall have the meaning set forth in Section 2.4(a).

“Swingline Note”
shall mean the promissory note of the Borrower in favor of the Swingline Lender
evidencing the Swingline Loans provided pursuant to Section 2.4(d), as such
promissory note may be amended, modified, supplemented, extended, renewed or
replaced from time to time.

“Target” shall
have the meaning set forth in the definition of “Permitted Acquisitions.”

 26
 

“Tax Exempt
Certificate” shall have the meaning set forth in Section 2.18.

“Taxes” shall have
the meaning set forth in Section 2.18.

“Term
Loan” shall have the meaning set forth in Section 2.2(a).

“Term
Loan Commitment” shall mean, with respect to each Term Loan Lender, the
commitment of such Term Loan Lender to make its portion of the Term Loan in a
principal amount equal to such Term Loan Lender’s Term Loan Commitment
Percentage of the Term Loan Committed Amount.

“Term Loan Commitment Percentage” shall mean,
for any Term Loan Lender, the percentage identified as its Term Loan Commitment
Percentage in its Lender Commitment Letter, or in the Assignment Agreement
pursuant to which such Lender became a Lender hereunder, as such percentage may
be modified in connection with any assignment made in accordance with the
provisions of Section 9.6(c).

“Term Loan Committed
Amount” shall have the meaning set forth in Section 2.2(a).

“Term Loan Lender”
shall mean a Lender holding a Term Loan Commitment or a portion of the
outstanding Term Loan.

“Term Loan Maturity
Date” shall mean June
15, 2012.

“Term
Loan Note” or “Term Loan Notes” shall mean the promissory notes of
the Borrower (if any) in favor of any of the Term Loan Lenders evidencing the
portion of the Term Loan provided by any such Term Loan Lender pursuant to
Section 2.2(a), individually or collectively, as appropriate, as such
promissory notes may be amended, modified, extended, restated, replaced, or
supplemented from time to time.

“Title Insurance
Company” shall have the meaning set forth in the definition of “Mortgage
Policy.”

“Total Consideration”
shall mean the total consideration paid or payable in connection with any
Permitted Acquisition including, without limitation, payments made in cash,
Capital Stock, assumed debt and earnout obligations.

“Trademark License” shall
mean any agreement (other than any franchise agreement), whether written or
oral, providing for the grant by or to a Person of any right to use any
Trademark, including, without limitation, any thereof referred to in Schedule
3.16 to this Agreement.

“Trademarks” shall
mean (i) all trademarks, trade names, corporate names, company names, business
names, fictitious business names, service marks, elements of package or trade
dress of goods or services, logos and other source or business identifiers
(other than such items that are of de minimis value) owned by a Credit Party or
any Subsidiary, together with the goodwill associated therewith, now existing
or hereafter adopted or acquired, all registrations

 27
 

and recordings thereof, and all applications in
connection therewith, whether in the United States Patent and Trademark Office
or in any similar office or agency of the United States, any State thereof or
any other country or any political subdivision thereof, including, without
limitation, any thereof referred to in Schedule 3.16 to this Agreement,
and (ii) all renewals thereof including, without limitation, any thereof
referred to in Schedule 3.16.

“Transfer
Effective Date” shall have the meaning set forth in each Assignment
Agreement.

“Voting
Stock” shall mean, with respect to any Person, Capital Stock issued by such
Person the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even though the right so to vote has been suspended
by the happening of such a contingency.

“Wachovia” shall mean Wachovia Bank, National
Association, together with its successors and/or assigns.

Section 1.2             Other
Definitional Provisions; Time References.

(a)           Unless
otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in the Notes or other Credit Documents or any
certificate or other document made or delivered pursuant hereto.

(b)           The
words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section, subsection, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

(c)           The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

(d)           Unless
otherwise expressly indicated, each time reference in any Credit Document shall
be to Charlotte, North Carolina time.

Section 1.3             Accounting Terms.

Unless otherwise specified herein, all accounting
terms 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 with
the most recent audited consolidated financial statements of the Parent
delivered to the Lenders; provided that, if the Borrower shall notify
the Administrative Agent that it wishes to amend any covenant in
Section 5.9 (or the definitions used therein) to eliminate the effect of
any change in GAAP on the operation of such covenant (or if the Administrative
Agent notifies the Borrower that the Required Lenders wish to amend
Section 5.9 or any definition used therein for such purpose), then
compliance with such covenant shall be determined on the basis of GAAP in
effect immediately before the relevant change in GAAP became effective, until
either such

 28
 

notice
is withdrawn or such covenant is amended in a manner satisfactory to the
Borrower and the Required Lenders.

The Borrower shall deliver to the Administrative Agent
and each Lender at the same time as the delivery of any annual or quarterly
financial statements given in accordance with the provisions of
Section 5.1, (a) a description in reasonable detail of any material
change in the application of accounting principles employed in the preparation
of such financial statements from those applied in the most recently preceding
quarterly or annual financial statements as to which no objection shall have
been made in accordance with the provisions above and (b) a reasonable estimate of the effect on the financial
statements on account of such changes in application.

For purposes of computing
the financial covenants set forth in Section 5.9 for any applicable test
period, any Permitted Acquisition or permitted sale of assets (including a
stock sale) shall have been deemed to have taken place as of the first day of
such applicable test period.

ARTICLE
II

THE LOANS; AMOUNT AND TERMS

Section 2.1             Revolving Loans.

(a)           Revolving
Commitment.  During the Commitment
Period, subject to the terms and conditions hereof, the Revolving Lenders
severally agree to make revolving credit loans (“Revolving Loans”) to
the Borrower from time to time in an aggregate principal amount of up to ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000) (as such
aggregate maximum amount may be increased from time to time as provided in
Section 2.5 or reduced from time to time as provided in Section 2.7, the “Revolving
Committed Amount”) for the purposes hereinafter set forth; provided,
however, that (i) with regard to each Revolving Lender
individually, the sum of such Revolving Lender’s  Revolving Commitment Percentage of
outstanding Revolving Loans plus such Revolving Lender’s Revolving
Commitment Percentage of outstanding Swingline Loans plus such Revolving
Lender’s Revolving Commitment Percentage of LOC Obligations shall not exceed
such Revolving Lender’s Revolving Commitment, and (ii) with regard to the Revolving Lenders collectively,
the sum of the outstanding Revolving Loans plus outstanding Swingline
Loans plus outstanding LOC Obligations shall not exceed the Revolving
Committed Amount.  Revolving Loans may
consist of Alternate Base Rate Loans or LIBOR Rate Loans, or a combination
thereof, as the Borrower may request, and may be repaid and reborrowed in
accordance with the provisions hereof. 
LIBOR Rate Loans shall be made by each Lender at its LIBOR Lending
Office and Alternate Base Rate Loans at its Domestic Lending Office.

 29
 

(b)           Revolving Loan Borrowings.

(i)            Notice
of Borrowing.  The Borrower shall
request a Revolving Loan borrowing by delivering a written Notice of Borrowing
(or telephone notice promptly confirmed in writing by delivery of a written
Notice of Borrowing, which delivery may be by facsimile) to the Administrative
Agent not later than 11:00 a.m.
on the date of the requested borrowing in the case of Alternate Base Rate
Loans, and on the third Business Day prior to the date of the requested
borrowing in the case of LIBOR Rate Loans. 
Each such request for borrowing shall be irrevocable and shall specify
(A) that a Revolving Loan is requested, (B) the date of the requested
borrowing (which shall be a Business Day), (C) the aggregate principal
amount to be borrowed, (D) whether the borrowing shall be comprised of
Alternate Base Rate Loans, LIBOR Rate Loans or a combination thereof, and if
LIBOR Rate Loans are requested, the Interest Period(s) therefor.  If the Borrower shall fail to specify in any
such Notice of Borrowing (I) an applicable Interest Period in the case of
a LIBOR Rate Loan, then such notice shall be deemed to be a request for an Interest
Period of one month, or (II) the type of Revolving Loan requested, then
such notice shall be deemed to be a request for an Alternate Base Rate Loan
hereunder.  The Administrative Agent
shall give notice to each Revolving Lender promptly upon receipt of each Notice
of Borrowing, the contents thereof and each such Revolving Lender’s share
thereof. All Revolving Loans made on the Closing Date and on any of the three
Business Days following the Closing Date shall bear interest at the Alternate
Base Rate unless the Borrower delivers to the Administrative Agent a funding
indemnity letter acceptable to the Administrative Agent.

(ii)           Minimum
Amounts.  Each Revolving Loan which
is an Alternate Base Rate Loan shall be in a minimum aggregate amount of
$500,000 and in integral multiples of $100,000 in excess thereof (or the
remaining amount of the Revolving Committed Amount, if less).  Each Revolving Loan which is a LIBOR Rate
Loan shall be in a minimum aggregate amount of $1,000,000 and in integral
multiples of $500,000 in excess thereof.

(iii)          Advances.  Each Revolving Lender will make its Revolving
Commitment Percentage of each Revolving Loan borrowing available to the
Administrative Agent for the account of the Borrower at the office of the
Administrative Agent specified in Schedule 9.2, or at such other
office as the Administrative Agent may designate in writing, by 1:00 p.m.
on the date specified in the applicable Notice of Borrowing in Dollars and in
funds immediately available to the Administrative Agent.  Such borrowing will then be made available to
the Borrower by the Administrative Agent by crediting the account of the
Borrower on the books of such office with the aggregate of the amounts made
available to the Administrative Agent by the Revolving Lenders and in like
funds as received by the Administrative Agent.

(c)           Repayment.  The principal amount of all Revolving Loans
shall be due and payable in full on the Revolver Maturity Date.  The Borrower covenants and agrees to pay the
Revolving Loans in accordance with the terms of this Agreement and the
Revolving Notes.

 30

(d)           Interest.  Subject to the provisions of Section 2.9,
Revolving Loans shall bear interest as follows:

(i)            Alternate Base Rate
Loans.  During such periods as
Revolving Loans shall be comprised of Alternate Base Rate Loans, each such
Alternate Base Rate Loan shall bear interest at a per annum rate equal to the
sum of the Alternate Base Rate plus the Applicable Percentage; and

(ii)           LIBOR Rate Loans.  During such periods as Revolving Loans shall
be comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear interest
at a per annum rate equal to the sum of the LIBOR Rate plus the
Applicable Percentage.

Interest on Revolving
Loans shall be payable in arrears on each Interest Payment Date.

(e)           Revolving Notes.  At the request of any Revolving Lender, such
Revolving Lender’s Revolving Commitment shall be evidenced by a duly executed
promissory note of the Borrower to such Revolving Lender in substantially the
form of Schedule 2.1(e).

Section 2.2             Term
Loan.

(a)           Term Loan.  Subject to the terms and conditions hereof
and in reliance upon the representations and warranties set forth herein, each
Term Loan Lender severally, but not jointly, agrees to make available to the
Borrower (through the Administrative Agent) on the Closing Date  such Term Loan Lender’s Term Loan Commitment Percentage of
a term loan (the “Term Loan”) in the aggregate principal amount of ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000) (the “Term
Loan Committed Amount”) for the purposes hereinafter set forth.  Upon receipt by the Administrative Agent of
the proceeds of the Term Loan, such proceeds will then be made available to the
Borrower by the Administrative Agent by crediting the account of the Borrower
on the books of the office of the Administrative Agent specified in Section
9.2, or at such other office as the Administrative Agent may designate in
writing, with the aggregate of such proceeds made available to the
Administrative Agent by the Term Loan Lenders and in like funds as received by
the Administrative Agent (or by crediting such other account(s) as directed by
the Borrower).  The Term Loan may consist
of Alternate Base Rate Loans or LIBOR Rate Loans, or a combination thereof, as
the Borrower may request; provided, however, that the Term Loan
made on the Closing Date or any of the two (2) Business Days following the
Closing Date, may only consist of Alternate Base Rate Loans unless the Borrower
delivers to the Administrative Agent a funding indemnity letter acceptable to
the Administrative Agent.  LIBOR Rate
Loans shall be made by each Term Loan Lender at its LIBOR Lending Office and
Alternate Base Rate Loans at its Domestic Lending Office.  Amounts repaid or prepaid on the Term Loan
may not be reborrowed.

(b)           Repayment of Term
Loan.  The principal amount of the
Term Loan shall be repaid in consecutive quarterly installments as follows,
unless accelerated sooner pursuant to Section 7.2:

 31
 

 

	
  Principal Amortization Payment 

  Dates

  	
   

  	
  Term Loan Principal Amortization

  Payment

  
	
  September 30, 2007

  	
   

  	
  $2,812,500.00

  
	
  December 31, 2007

  	
   

  	
  $2,812,500.00

  
	
  March 31, 2008

  	
   

  	
  $2,812,500.00

  
	
  June 30, 2008

  	
   

  	
  $2,812,500.00

  
	
  September 30, 2008

  	
   

  	
  $2,812,500.00

  
	
  December 31, 2008

  	
   

  	
  $2,812,500.00

  
	
  March 31, 2009

  	
   

  	
  $2,812,500.00

  
	
  June 30, 2009

  	
   

  	
  $2,812,500.00

  
	
  September 30, 2009

  	
   

  	
  $4,687,500.00

  
	
  December 31, 2009

  	
   

  	
  $4,687,500.00

  
	
  March 31, 2010

  	
   

  	
  $4,687,500.00

  
	
  June 30, 2010

  	
   

  	
  $4,687,500.00

  
	
  September 30, 2010

  	
   

  	
  $4,687,500.00

  
	
  December 31, 2010

  	
   

  	
  $4,687,500.00

  
	
  March 31, 2011

  	
   

  	
  $4,687,500.00

  
	
  June 30, 2011

  	
   

  	
  $4,687,500.00

  
	
  September 30, 2011

  	
   

  	
  $4,687,500.00

  
	
  December 31, 2011

  	
   

  	
  $4,687,500.00

  
	
  March 31, 2012

  	
   

  	
  $4,687,500.00

  
	
  Term Loan Maturity Date

  	
   

  	
  $75,937,500.00
  or the remaining 

  outstanding principal amount of the 

  Term Loan

  

 

(c)           Interest on the Term
Loan.  Subject to the provisions of
Section 2.9, the Term Loan shall bear interest as follows:

(i)            Alternate Base Rate
Loans.  During such periods as the
Term Loan shall be comprised of Alternate Base Rate Loans, each such Alternate
Base Rate Loan shall bear interest at a per annum rate equal to the sum of the
Alternate Base Rate plus the Applicable Percentage; and

(ii)           LIBOR Rate Loans.  During such periods as the Term Loan shall be
comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear interest at
a per annum rate equal to the sum of the LIBOR Rate plus the Applicable
Percentage.

Interest on the Term Loan
shall be payable in arrears on each Interest Payment Date.

(d)           Term Loan Notes;
Covenant to Pay.  The Borrower’s
obligation to pay each Term Loan Lender shall be evidenced by this Agreement
and, upon such Term Loan Lender’s request, by a duly executed promissory note
of the Borrower to such Term Loan 

 32
 

Lender in substantially the form of Schedule 2.2(d).  The Borrower covenants and agrees to pay the
Term Loan in accordance with the terms of this Agreement.

Section 2.3             Letter of Credit Subfacility.

(a)           Issuance.  Subject to the terms and conditions hereof
and of the LOC Documents, if any, and any other terms and conditions which the
Issuing Lender may reasonably require, during the Commitment Period the Issuing
Lender shall issue, and the Revolving Lenders shall participate in, Letters of
Credit for the account of the Borrower from time to time upon request in a form
acceptable to the Issuing Lender; provided, however, that
(i) the aggregate amount of LOC Obligations shall not at any time exceed FIFTEEN MILLION DOLLARS ($15,000,000) (the “LOC Committed
Amount”), (ii) the sum of
outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations shall not at any time exceed the Revolving
Committed Amount, (iii) all
Letters of Credit shall be denominated in U.S. Dollars and (iv) Letters of Credit shall be
issued for lawful corporate purposes and may be issued as standby letters of
credit, including in connection with workers’ compensation and other insurance
programs.  Except as otherwise expressly
agreed upon by all the Revolving Lenders, no Letter of Credit shall have an
original expiry date more than one year from the date of issuance; provided,
however, so long as no Default or Event of Default has occurred and is
continuing and subject to the other terms and conditions to the issuance of
Letters of Credit hereunder, the expiry dates of Letters of Credit may be
extended annually or periodically from time to time on the request of the
Borrower or by operation of the terms of the applicable Letter of Credit to a
date not more than one year from the date of extension; provided, further,
that no Letter of Credit, as originally issued or as extended, shall have an
expiry date extending beyond the date that is thirty (30) days prior to the
Revolver Maturity Date.  Each Letter of
Credit shall comply with the related LOC Documents.  The issuance and expiry date of each Letter
of Credit shall be a Business Day.  Any
Letters of Credit issued hereunder shall be in a minimum original face amount
of $100,000.  Wachovia shall be the
Issuing Lender on all Letters of Credit issued on or after the Closing
Date.  The Borrower’s reimbursement
obligations in respect of each Existing Letter of Credit, and each Revolving
Lender’s participation obligations in connection therewith, shall be governed
by the terms of this Credit Agreement.

(b)           Notice and Reports.  The request for the issuance of a Letter of
Credit shall be submitted to the Issuing Lender at least five (5) Business
Days prior to the requested date of issuance. 
The Issuing Lender will promptly upon request provide to the
Administrative Agent for dissemination to the Revolving Lenders a detailed
report specifying the Letters of Credit which are then issued and outstanding
and any activity with respect thereto which may have occurred since the date of
any prior report, and including therein, among other things, the account party,
the beneficiary, the face amount, expiry date as well as any payments or
expirations which may have occurred.  The
Issuing Lender will further provide to the Administrative Agent promptly upon
request copies of the Letters of Credit. 
The Issuing Lender will provide to the Administrative Agent promptly
upon request a summary report of the nature and extent of LOC Obligations then
outstanding.

(c)           Participations.  Each Revolving Lender (i) on the Closing Date
with respect to each Existing Letter of Credit and (ii) upon issuance of any
other Letter of Credit (or upon such 

 33
 

Revolving Lender becoming a Lender hereunder pursuant
to Section 9.6(c)), shall be deemed to have purchased without recourse a risk
participation from the Issuing Lender in such Letter of Credit and the
obligations arising thereunder and any collateral relating thereto, in each
case in an amount equal to its Revolving Commitment Percentage of the
obligations under such Letter of Credit and shall absolutely, unconditionally
and irrevocably assume, as primary obligor and not as surety, and be obligated
to pay to the Issuing Lender therefor and discharge when due, its Revolving
Commitment Percentage of the obligations arising under such Letter of
Credit.  Without limiting the scope and
nature of each Revolving Lender’s participation in any Letter of Credit, to the
extent that the Issuing Lender has not been reimbursed as required hereunder or
under any LOC Document, each such Revolving Lender shall pay to the Issuing
Lender its Revolving Commitment Percentage of such unreimbursed drawing in same
day funds pursuant to and in accordance with the provisions of
subsection (d) hereof.  The
obligation of each Revolving Lender to so reimburse the Issuing Lender shall be
absolute and unconditional and shall not be affected by the occurrence of a
Default, an Event of Default or any other occurrence or event.  Any such reimbursement shall not relieve or
otherwise impair the obligation of the Borrower to reimburse the Issuing Lender
under any Letter of Credit, together with interest as hereinafter provided.

(d)           Reimbursement.  In the event of any drawing under any Letter
of Credit, the Issuing Lender will promptly notify the Borrower and the
Administrative Agent.  The Borrower shall
reimburse the Issuing Lender on the day of drawing under any Letter of Credit
(with the proceeds of a Revolving Loan obtained hereunder or otherwise) in same
day funds as provided herein or in the LOC Documents.  If the Borrower shall fail to reimburse the
Issuing Lender as provided herein, the unreimbursed amount of such drawing
shall bear interest at a per annum rate equal to the ABR Default Rate for so
long as such amount shall be unreimbursed. 
Unless the Borrower shall immediately notify the Issuing Lender and the
Administrative Agent of its intent to otherwise reimburse the Issuing Lender,
the Borrower shall be deemed to have requested a Mandatory LOC Borrowing in the
amount of the drawing as provided in subsection (e) hereof, the proceeds
of which will be used to satisfy the reimbursement obligations.  The Borrower’s reimbursement obligations hereunder
shall be absolute and unconditional under all circumstances irrespective of any
rights of set-off, counterclaim or defense to payment the Borrower may
claim or have against the Issuing Lender, the Administrative Agent, the
Lenders, the beneficiary of the Letter of Credit drawn upon or any other
Person, including without limitation any defense based on any failure of the
Borrower to receive consideration or the legality, validity, regularity or
unenforceability of the Letter of Credit. 
The Issuing Lender will promptly notify the other Revolving Lenders of
the amount of any unreimbursed drawing and each Revolving Lender shall promptly
pay to the Administrative Agent for the account of the Issuing Lender in
Dollars and in immediately available funds, the amount of such Revolving Lender’s
Revolving Commitment Percentage of such unreimbursed drawing.  Such payment shall be made on the day such
notice is received by such Revolving Lender from the Issuing Lender if such
notice is received at or before 2:00 p.m., otherwise such payment shall be
made at or before 12:00 Noon on the Business Day next succeeding the day
such notice is received.  If such
Revolving Lender does not pay such amount to the Issuing Lender in full upon
such request, such Revolving Lender shall, on demand, pay to the Administrative
Agent for the account of the Issuing Lender interest on the unpaid amount
during the period from the date of such drawing until such Revolving Lender
pays such amount to the Issuing Lender in full at a rate per annum equal to, if
paid within two (2) 

 34
 

Business Days of the date of drawing, the Federal
Funds Effective Rate and thereafter at a rate equal to the Alternate Base
Rate.  Each Revolving Lender’s obligation
to make such payment to the Issuing Lender, and the right of the Issuing Lender
to receive the same, shall be absolute and unconditional, shall not be affected
by any circumstance whatsoever and without regard to the termination of this
Agreement or the Commitments hereunder, the existence of a Default or Event of
Default or the acceleration of the Credit Party Obligations hereunder and shall
be made without any offset, abatement, withholding or reduction whatsoever.

(e)           Repayment with
Revolving Loans.  On any day on which
the Borrower shall have requested, or been deemed to have requested, a
Revolving Loan to reimburse a drawing under a Letter of Credit, the
Administrative Agent shall give notice to the Revolving Lenders that a
Revolving Loan has been requested or deemed requested in connection with a drawing
under a Letter of Credit, in which case a Revolving Loan borrowing comprised
entirely of Alternate Base Rate Loans (each such borrowing, a “Mandatory LOC
Borrowing”) shall be immediately made (without giving effect to any
termination of the Commitments pursuant to Section 7.2) pro  rata
based on each Revolving Lender’s respective Revolving Commitment Percentage
(determined before giving effect to any termination of the Commitments pursuant
to Section 7.2).  The proceeds of
such Mandatory LOC Borrowing shall be paid directly to the Issuing Lender for
application to the respective LOC Obligations. 
Each Revolving Lender hereby irrevocably agrees to make such Revolving
Loans immediately upon any such request or deemed request on account of each
Mandatory LOC Borrowing in the amount and in the manner specified in the
preceding sentence and on the same such date notwithstanding
(i) the amount of Mandatory LOC Borrowing may not comply with the minimum
amount (or integral amount in excess thereof) for borrowings of Revolving Loans
otherwise required hereunder, (ii) whether
any conditions specified in Section 4.2 are then satisfied, (iii) whether a Default or an Event
of Default then exists, (iv) failure
for any such request or deemed request for Revolving Loan to be made by the
time otherwise required in Section 2.1(b), (v) the date of such
Mandatory LOC Borrowing, or (vi) any reduction in the Revolving Committed
Amount after any such Letter of Credit may have been drawn upon; provided,
however, that in the event any such Mandatory LOC Borrowing should be
less than the minimum amount for borrowings of Revolving Loans otherwise
provided in Section 2.1(b)(ii), the Borrower shall pay to the
Administrative Agent for its own account an administrative fee of $500.  In the event that any Mandatory LOC Borrowing
cannot for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code), then each such Revolving Lender hereby agrees that it shall
forthwith fund (as of the date the Mandatory LOC Borrowing would otherwise have
occurred, but adjusted for any payments received from the Borrower on or after
such date and prior to such purchase) its Participation Interests in the outstanding
LOC Obligations; provided, further, that in the event any
Revolving Lender shall fail to fund its Participation Interest on the day the
Mandatory LOC Borrowing would otherwise have occurred, then the amount of such
Revolving Lender’s unfunded Participation Interest therein shall bear interest
payable by such Revolving Lender to the Issuing Lender upon demand, at the rate
equal to, if paid within two (2) Business Days of such date, the Federal
Funds Effective Rate, and thereafter at a rate equal to the Alternate Base
Rate.

 35
 

(f)            Modification,
Extension.  The issuance of any
supplement, modification, amendment, renewal, or extension to any Letter of
Credit shall, for purposes hereof, be treated in all respects the same as the
issuance of a new Letter of Credit hereunder.

(g)           Uniform Customs and
Practices/ISP 98. Unless otherwise expressly agreed by the Issuing Lender
and the Borrower, when a Letter of Credit is issued, (i) the rules of the “International
Standby Practices 1998” published by the Institute of International Banking Law
& Practice (or such later version thereof as may be in effect at the time
of issuance) shall apply to each standby Letter of Credit, and (ii) the rules
of the Uniform Customs and Practice for Documentary Credits, as most recently
published by the International Chamber of Commerce at the time of issuance,
shall apply to each trade Letter of Credit.

(h)           Conflict with LOC
Documents.  In the event of any
conflict between this Credit Agreement and any LOC Document, this Credit Agreement
shall control.

Section 2.4             Swingline Loan Subfacility.

(a)           Swingline Commitment.  During the Commitment Period, subject to the
terms and conditions hereof, the Swingline Lender, in its individual capacity,
agrees to make certain revolving credit loans to the Borrower (each a “Swingline
Loan” and, collectively, the “Swingline Loans”) for the purposes
hereinafter set forth; provided, however, (i) the aggregate
amount of Swingline Loans outstanding at any time shall not exceed TEN MILLION DOLLARS ($10,000,000) (the “Swingline
Committed Amount”), and (ii) the
sum of the outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations shall not exceed the Revolving Committed
Amount.  Swingline Loans hereunder may be
repaid and reborrowed in accordance with the provisions hereof.

(b)           Swingline
Loan Borrowings.

(i)            Swingline Loan
Borrowings and Disbursements.  The
Swingline Lender will make Swingline Loans available to the Borrower on any
Business Day (A) upon request made by the Borrower not later than
12:00 Noon on such Business Day by delivery to the Swingline Lender of a
notice of request for Swingline Loan borrowing in the form of Schedule 2.1(b)(i)
with appropriate modifications or (B) in accordance with the lending mechanics
and other terms of the Autoborrow Feature, upon the event that expenses charged
to the Borrower’s Concentration Account shall exceed the available cash
deposits in such Concentration Account in an amount equal to such excess.  Swingline Loans issued pursuant to subclause
(A) above shall be made in minimum amounts of $100,000 and in integral amounts
of $50,000 in excess thereof.

(ii)           Repayment of
Swingline Loans.  Each Swingline Loan
borrowing shall be due and payable on the earlier of (A) the seventh day after
the date of such Swingline Loan borrowing and (B) the Revolver Maturity
Date.  The Swingline Lender may, at any
time, in its sole discretion, by written notice to the Borrower and the
Administrative Agent, demand repayment of its Swingline Loans by way of a
Revolving Loan borrowing, in which case the Borrower shall be deemed to have
requested a Revolving 

 36
 

Loan borrowing comprised entirely of Alternate Base
Rate Loans in the amount of such Swingline Loans; provided, however,
that, in the following circumstances, any such demand shall also be deemed to
have been given one Business Day prior to each of (w) the Revolver
Maturity Date, (x) the
occurrence of any Event of Default described in Section 7.1(e), (y) upon acceleration of the Credit
Party Obligations hereunder, whether on account of an Event of Default
described in Section 7.1(e) or any other Event of Default, and (z) the exercise of remedies in
accordance with the provisions of Section 7.2 hereof (each such Revolving
Loan borrowing made on account of any such deemed request therefor as provided
herein being hereinafter referred to as “Mandatory Borrowing”).  Each Lender hereby irrevocably agrees to make
such Revolving Loans promptly upon any such request or deemed request on
account of each Mandatory Borrowing in the amount and in the manner specified
in the preceding sentence and on the same such date notwithstanding (I)
the amount of Mandatory Borrowing may not comply with the minimum amount for
borrowings of Revolving Loans otherwise required hereunder, (II) whether any
conditions specified in Section 4.2 are then satisfied, (III) whether a
Default or an Event of Default then exists, (IV) failure of any such request or
deemed request for Revolving Loans to be made by the time otherwise required in
Section 2.1(b)(i), (V) the date of such Mandatory Borrowing, or (VI) any
reduction in the Revolving Commitment or termination of the Revolving
Commitments immediately prior to such Mandatory Borrowing or contemporaneously
therewith.  In the event that any Mandatory
Borrowing cannot for any reason be made on the date otherwise required above
(including, without limitation, as a result of the commencement of a proceeding
under the Bankruptcy Code), then each Lender hereby agrees that it shall
forthwith purchase (as of the date the Mandatory Borrowing would otherwise have
occurred, but adjusted for any payments received from the Borrower on or after
such date and prior to such purchase) from the Swingline Lender such
participations in the outstanding Swingline Loans as shall be necessary to
cause each such Lender to share in such Swingline Loans ratably based upon its
respective Revolving Commitment Percentage (determined before giving effect to
any termination of the Commitments pursuant to Section 7.2) provided
that (A) all interest payable on the Swingline Loans shall be for the account
of the Swingline Lender until the date as of which the respective participation
is purchased, and (B) at the time any purchase of participations pursuant to
this sentence is actually made, the purchasing Lender shall be required to pay
to the Swingline Lender interest on the principal amount of such participation
purchased for each day from and including the day upon which the purchase
occurs hereunder to but excluding the date of payment for such participation,
at the rate equal to, if paid within two (2) Business Days of the date of
the Mandatory Borrowing, the Federal Funds Effective Rate, and thereafter at a
rate equal to the Alternate Base Rate.

(c)           Interest on
Swingline Loans.  Subject to the
provisions of Section 2.9, Swingline Loans shall bear interest at a per annum
rate equal to the Alternate Base Rate plus the applicable Percentage for
Revolving Loans that are Alternate Base Rate Loans.  Interest on Swingline Loans shall be payable
in arrears on each Interest Payment Date.

 37
 

(d)           Swingline Note.  The Swingline Loans shall be evidenced by a
duly executed promissory note of the Borrower to the Swingline Lender in the
original amount of the Swingline Committed Amount and substantially in the form
of Schedule 2.4(d).

Section 2.5             Incremental
Facilities.

Subject to the terms and
conditions set forth herein, the Borrower shall have the right, at any time
prior to the Revolver Maturity Date, to incur additional Indebtedness under this
Credit Agreement in the form of one or more increases to the Revolving
Committed Amount (each an “Incremental Facility”) in an amount not to
exceed $100,000,000 in the aggregate. 
The following terms and conditions shall apply to the Incremental Facility:  (a) the loans made under the Incremental
Facility (each an “Additional Loan”) shall constitute Credit Party
Obligations and will be secured and guaranteed with the other Credit Party
Obligations on a pari passu basis, (b) the Incremental Facility shall have an
interest rate margin no lower than the Applicable Percentage for the existing
Revolving Loans, (c) the Incremental Facility shall have a maturity date no
sooner than the Revolver Maturity Date, (d) the Incremental Facility shall be
entitled to the same voting rights as the existing Revolving Loans and shall be
entitled to receive proceeds of prepayments on the same basis as the existing
Revolving Loans to the extent such Incremental Facility is an increase to the
Aggregate Revolving Committed Amount, (e) any such Incremental Facility shall
be in a minimum principal amount of $10,000,000 and integral multiples of
$1,000,000 in excess thereof, (f) the Incremental Facility shall be obtained
from existing Lenders or from other banks, financial institutions or investment
funds, in each case in accordance with the terms set forth below, (g) the
proceeds of the Additional Loans will be used for the purposes set forth in
Section 3.11, (h) the Borrower shall execute a Note in favor of any new Lender
that requests a Note, (i) the conditions to Extensions of Credit in Section 4.2
shall have been satisfied, (j) the Administrative Agent shall have received
from the Borrower updated financial projections and an officer’s certificate,
in each case in form and substance reasonably satisfactory to the
Administrative Agent, demonstrating that, as of the date of such Incremental
Facility and, after giving effect to any new Additional Loans thereunder on a
Pro Forma Basis, the Credit Parties will be in compliance with the financial
covenants set forth in Section 5.9 and no Default or Event of Default shall
exist, and (k) the Administrative Agent shall receive an opinion of counsel to
the Credit Parties and such other documentation as it deems reasonable
necessary to effectuate the Incremental Facility, all in form and substance
satisfactory to the Administrative Agent. 
Participation in the Incremental Facility shall be offered first to each
of the existing Revolving Lenders and each such Revolving Lender shall have at
least ten (10) Business Days to respond to such offer, but each such Revolving
Lender shall have no obligation to provide all or any portion of the
Incremental Facility.  If the amount of
the Incremental Facility shall exceed the commitments which the existing
Revolving Lenders are willing to provide with respect to the Incremental
Facility, then the Borrower may invite other banks, financial institutions and
investment funds reasonably acceptable to the Administrative Agent to join this
Credit Agreement as Lenders hereunder for the portion of the Incremental
Facility not taken by existing Revolving Lenders, provided that such other
banks, financial institutions and investment funds shall enter into such
joinder agreements to give effect thereto as the Administrative Agent may
reasonably request.  The Administrative
Agent is authorized to enter into, on behalf of the Lenders, any amendment to
this Credit Agreement or any other Credit Document as may be necessary to
incorporate the terms of the Incremental Facility therein.

 38
 

Section 2.6             Fees.

(a)           Commitment Fee.  In consideration of the Revolving
Commitments, the Borrower agrees to pay to the Administrative Agent, for the
ratable benefit of the Lenders, a commitment fee (the “Commitment Fee”)
in an amount equal to the Applicable Percentage per annum on the average daily
unused portion of the Revolving Committed Amount.  For purposes of computing the Commitment Fee,
LOC Obligations shall be considered usage of the Revolving Committed Amount but
Swingline Loans shall not be considered usage of the Revolving Committed
Amount.  The Commitment Fee shall be
payable quarterly in arrears on the 15th day following the last day of each
calendar quarter for the prior calendar quarter.

(b)           Letter of Credit
Fees.  In consideration of the LOC
Commitments, the Borrower agrees to pay to the Issuing Lender, for the benefit
of the Lenders, a fee (the “Letter of Credit Fee”) equal to the
Applicable Percentage per annum on the average daily maximum amount available
to be drawn under each Letter of Credit from the date of issuance to the date
of expiration.  In addition to such
Letter of Credit Fee, the Issuing Lender may charge, and retain for its own
account without sharing by the other Lenders, an additional facing fee of one
tenth of one percent (1/10%) per annum on the average daily maximum amount
available to be drawn under each such Letter of Credit issued by it.  The Issuing Lender shall promptly pay over to
the Administrative Agent for the ratable benefit of the Lenders, for the benefit
of all Lenders having a Revolving Commitment (including the Issuing Lender),
the Letter of Credit Fee.  The Letter of
Credit Fee shall be payable quarterly in arrears on the 15th day following
the last day of each calendar quarter for such calendar quarter.

(c)           Issuing Lender Fees.  In addition to the Letter of Credit Fees
payable pursuant to subsection (b) hereof, the Borrower shall pay to the
Issuing Lender, for its own account without sharing by the other Lenders, the
reasonable and customary charges from time to time of the Issuing Lender with
respect to the amendment, transfer, administration, cancellation and conversion
of, and drawings under, such Letters of Credit (collectively, the “Issuing
Lender Fees”).

(d)           Administrative Fee.  The Borrower agrees to pay to the
Administrative Agent the annual administrative fee as described in the
Engagement Letter.

Section 2.7             Commitment Reductions.

(a)           Voluntary Reductions.  The Borrower shall have the right to
terminate or permanently reduce the unused portion of the Revolving Committed
Amount at any time or from time to time upon not less than five Business Days’
prior notice to the Administrative Agent (which shall notify the Lenders
thereof as soon as practicable) of each such termination or reduction, which
notice shall specify the effective date thereof and the amount of any such
reduction which shall be in a minimum amount of $1,000,000 or a whole multiple
of $500,000 in excess thereof and shall be irrevocable and effective upon
receipt by the Administrative Agent; provided that no such reduction or
termination shall be permitted if after giving effect thereto, and to any
prepayments of the Loans made on the effective date thereof, the sum of the 

 39
 

outstanding Revolving Loans plus outstanding
Swingline Loans plus outstanding LOC Obligations would exceed the
Revolving Committed Amount.

(b)           Maturity Date.  The Revolving Commitment, the Swingline
Commitment and the LOC Commitment shall automatically terminate on the Revolver
Maturity Date.

Section 2.8             Prepayments.

(a)           Optional Prepayments.  The Borrower shall have the right to prepay
Loans in whole or in part from time to time; provided, however,
that (i) each partial prepayment of an Alternate Base Rate Loan shall be in a
minimum principal amount of $500,000 and integral multiples of $100,000 in
excess thereof or, if less, the unpaid balance thereof, (ii) each partial
prepayment of a LIBOR Rate Loan shall be in a minimum principal amount of
$1,000,000 and integral multiples of $500,000 in excess thereof or, if less,
the unpaid balance thereof, and (iii) each partial prepayment of a Swingline
Loan shall be in a minimum principal amount of $100,000 and integral multiples
of $50,000 in excess thereof or the unpaid balance thereof, if less.  The Borrower shall give three Business Days’
irrevocable notice in the case of LIBOR Rate Loans and one Business Day’s
irrevocable notice in the case of Alternate Base Rate Loans to the
Administrative Agent (which shall notify the Lenders thereof as soon as
practicable).  To the extent that the  Borrower elects to prepay the Term Loans, amounts prepaid
under this Section shall be applied ratably to the remaining principal
installments thereof as the Borrower may elect.  Each prepayment pursuant to this
Section 2.8(a) shall be applied to the outstanding Loans as the Borrower may
elect; provided, however, each prepayment shall be applied first
to Alternate Base Rate Loans and then to LIBOR Rate Loans in direct order of
Interest Period maturities.  All
prepayments under this Section 2.8(a) shall be subject to Section 2.17, but
otherwise without premium or penalty. 
Interest on the principal amount prepaid shall be payable on the next
occurring Interest Payment Date that would have occurred had such Loan not been
prepaid or, at the request of the Administrative Agent, interest on the
principal amount prepaid shall be payable on any date that a prepayment is made
hereunder through the date of prepayment.

(b)           Mandatory
Prepayments.

(i)            Revolving
Committed Amount.  If at any time
after the Closing Date, the sum of the outstanding Revolving Loans plus
outstanding Swingline Loans plus outstanding LOC Obligations shall
exceed the Revolving Committed Amount, the Borrower immediately shall prepay
the Revolving Loans in an amount sufficient to eliminate such excess (such
prepayment to be applied as set forth in clause (v) below).

(ii)           Asset
Dispositions. Promptly following one or more Asset Dispositions in excess
of $1,000,000 in the aggregate in any fiscal year, the Borrower shall prepay
the Loans and/or cash collateralize the LOC Obligations in an aggregate amount
equal to the Net Cash Proceeds derived from such Asset Disposition (such
prepayment to be applied as set forth in clause (v) below); provided,
however, that such Net Cash Proceeds shall not be required to be so
applied to the extent the Borrower delivers to the Administrative Agent a
certificate stating that the Borrower (or a Guarantor) intends to use such Net 

 40
 

Cash Proceeds to
acquire fixed or capital assets useful in its business within 180 days of
the receipt of such Net Cash Proceeds, it being expressly agreed that any Net
Cash Proceeds not so reinvested shall be applied to repay the Loans and/or cash
collateralize the LOC Obligations (such prepayment to be applied as set forth
in clause (v) below) immediately following the 180th day occurring
after the receipt by a Credit Party of such Net Cash Proceeds; provided,
further that Net Cash Proceeds received from the sale of the properties
set forth on Schedule 2.8(b)(ii) shall not be required to be so applied
and no reduction in the Revolving Commitment shall occur as a result thereof.

(iii)          Issuances.  Immediately upon receipt by any Credit Party
or any of its Subsidiaries of proceeds from any Debt Issuance, the Borrower
shall prepay the Loans and/or cash collateralize the LOC Obligations in an
aggregate amount equal to one hundred percent (100%) of the Net Cash Proceeds
of such Debt Issuance to the Lenders (such prepayment to be applied as set
forth in clause (v) below).

(iv)          Recovery
Event.  To the extent that cash
proceeds received in connection with all Recovery Events (other than business
interruption insurance) in any fiscal year exceed $1,000,000 in the aggregate,
the Borrower shall prepay the Loans and/or cash collateralize the LOC
Obligations in an aggregate amount equal to such cash proceeds (such prepayment
to be applied as set forth in clause (v) below); provided, however,
that such cash proceeds shall not be required to be so applied to the extent
the Borrower delivers to the Administrative Agent a certificate stating that
the Borrower (or a Guarantor) intends to use such cash proceeds to acquire or
repair fixed or capital assets useful in its business within 180 days of
the receipt of such cash proceeds, it being expressly agreed that any cash
proceeds not so reinvested shall be applied to repay the Loans and/or cash
collateralize the LOC Obligations (such prepayment to be applied as set forth
in clause (v) below) immediately following the 180th day occurring
after the receipt by a Credit Party of such cash proceeds.

(v)           Application
of Mandatory Prepayments.  All
amounts required to be paid pursuant to this Section 2.8(b) shall be applied as
follows: (A) with respect to all amounts prepaid pursuant to Section 2.8(b)(i),
(1) first to the outstanding Swingline Loans (without any reduction in the
Revolving Commitments), (2) second to the outstanding Revolving Loans (without
any reduction in the Revolving Commitments) and (3) third to a cash collateral
account in respect of outstanding LOC Obligations, (B) with respect to all
amounts prepaid pursuant to Sections 2.8(b)(ii) through (iv), (1) first to the
Term Loan (ratably to the remaining amortization payments thereof), (2) second
to the outstanding Swingline Loans (without a corresponding reduction in the
Revolving Commitments), (3) third to the outstanding Revolving Loans (without a
corresponding reduction in the Revolving Commitments) and (4) fourth to a cash
collateral account in respect of outstanding LOC Obligations.  Within the parameters of the applications set
forth above, prepayments shall be applied first to Alternate Base Rate Loans
and then to LIBOR Rate Loans in direct order of Interest Period
maturities.  All prepayments under this
Section 2.8(b) shall be subject to Section 2.17 and be accompanied by interest
on the principal amount prepaid through the date of prepayment.

 41
 

Notwithstanding the foregoing provisions of this
Section 2.8, if at any time any prepayment of the Loans pursuant to Section 2.8
would result in LIBOR Rate Loans being prepaid other than on the last day of an
Interest Period with respect thereto, then the Borrower, so long as no Event of
Default shall have occurred and be continuing, may deposit the amount that
otherwise would have been paid in respect of such LIBOR Rate Loans with the
Administrative Agent to be held as security for the obligation of the Borrower
to make such prepayment pursuant to a cash collateral agreement to be entered
into on terms reasonably satisfactory to the Administrative Agent, with such
cash collateral to be directly applied upon the first occurrence thereafter of
the last day of any Interest Period with respect to such LIBOR Rate Loans.

(c)           Hedging Obligations
Unaffected.  Any prepayment made
pursuant to this Section 2.8 shall not affect the Borrower’s obligation to
continue to make payments under any Hedging Agreement, which shall remain in
full force and effect notwithstanding such prepayment, subject to the terms of
such Hedging Agreement.

Section 2.9             Default Rate and Payment Dates.

Upon
the occurrence, and during the continuance, of an Event of Default, the
principal of and, to the extent permitted by law, interest on the Loans and any
other amounts owing hereunder or under the other Credit Documents shall bear
interest, payable on demand, at a per annum rate 2% greater than the rate which
would otherwise be applicable (or if no rate is applicable, whether in respect
of interest, fees or other amounts, then at the ABR Default Rate).

Section 2.10           Conversion Options.

(a)           The Borrower may, in
the case of Revolving Loans and the Term Loan, elect from time to time to
convert Alternate Base Rate Loans to LIBOR Rate Loans, by giving the
Administrative Agent at least three Business Days’ prior irrevocable written
notice of such election.  A form of
Notice of Conversion/ Extension is attached as Schedule 2.10.  If the date upon which an Alternate Base Rate
Loan is to be converted to a LIBOR Rate Loan is not a Business Day, then such
conversion shall be made on the next succeeding Business Day and during the
period from such last day of an Interest Period to such succeeding Business Day
such Loan shall bear interest as if it were an Alternate Base Rate Loan.  All or any part of outstanding Alternate Base
Rate Loans may be converted as provided herein, provided that
(i) no Loan may be converted into a LIBOR Rate Loan when any Default or
Event of Default has occurred and is continuing and (ii) partial conversions to LIBOR Rate Loans shall be in
an aggregate principal amount of $1,000,000 or a whole multiple of $500,000 in
excess thereof.

(b)           Any LIBOR Rate Loans
may be continued as such upon the expiration of an Interest Period with respect
thereto by compliance by the Borrower with the notice provisions contained in
Section 2.10(a); provided, that no LIBOR Rate Loan may be continued as
such when any Default or Event of Default has occurred and is continuing, in
which case such Loan shall be automatically converted to an Alternate Base Rate
Loan at the end of the applicable Interest Period with respect thereto.  If the Borrower shall fail to give timely
notice of an election to continue a LIBOR Rate Loan, or the continuation of
LIBOR Rate Loans is not permitted 

 42
 

hereunder, such LIBOR Rate Loans shall be
automatically converted to Alternate Base Rate Loans at the end of the
applicable Interest Period with respect thereto.

Section 2.11           Computation of
Interest and Fees.

(a)           Interest payable
hereunder with respect to Alternate Base Rate Loans based on the Prime Rate
shall be calculated on the basis of a year of 365 days (or 366 days, as
applicable) for the actual days elapsed. 
All other fees, interest and all other amounts payable hereunder shall
be calculated on the basis of a 360 day year for the actual days
elapsed.  The Administrative Agent shall
as soon as practicable notify the Borrower and the Lenders of each
determination of a LIBOR Rate on the Business Day of the determination
thereof.  Any change in the interest rate
on a Loan resulting from a change in the Alternate Base Rate shall become
effective as of the opening of business on the day on which such change in the
Alternate Base Rate shall become effective. 
The Administrative Agent shall as soon as practicable notify the
Borrower and the Lenders of the effective date and the amount of each such
change.

(b)           Each determination of
an interest rate by the Administrative Agent pursuant to any provision of this
Agreement shall be conclusive and binding on the Borrower and the Lenders in
the absence of manifest error.  The Administrative
Agent shall, at the request of the Borrower, deliver to the Borrower a
statement showing the computations used by the Administrative Agent in
determining any interest rate.

(c)           It
is the intent of the Lenders and the Credit Parties to conform to and contract
in strict compliance with applicable usury law from time to time in
effect.  All agreements between the
Lenders and the Credit Parties are hereby limited by the provisions of this
paragraph which shall override and control all such agreements, whether now existing
or hereafter arising and whether written or oral.  In no way, nor in any event or contingency
(including but not limited to prepayment or acceleration of the maturity of any
Obligation), shall the interest taken, reserved, contracted for, charged, or
received under this Agreement, under the Notes or otherwise, exceed the maximum
nonusurious amount permissible under applicable law.  If, from any possible construction of any of
the Credit Documents or any other document, interest would otherwise be payable
in excess of the maximum nonusurious amount, any such construction shall be
subject to the provisions of this paragraph and such interest shall be
automatically reduced to the maximum nonusurious amount permitted under
applicable law, without the necessity of execution of any amendment or new
document.  If any Lender shall ever
receive anything of value which is characterized as interest on the Loans under
applicable law and which would, apart from this provision, be in excess of the
maximum nonusurious amount, an amount equal to the amount which would have been
excessive interest shall, without penalty, be applied to the reduction of the
principal amount owing on the Loans and not to the payment of interest, or
refunded to the Borrower or the other payor thereof if and to the extent such
amount which would have been excessive exceeds such unpaid principal amount of
the Loans.  The right to demand payment
of the Loans or any other Indebtedness evidenced by any of the Credit Documents
does not include the right to receive any interest which has not otherwise
accrued on the date of such demand, and the Lenders do not intend to charge or
receive any unearned interest in the event of such demand.  All interest paid or agreed to be paid to the
Lenders with respect to the Loans shall, to the extent permitted by applicable
law, be amortized, prorated, allocated, and spread throughout the full 

 43
 

stated
term (including any renewal or extension) of the Loans so that the amount of
interest on account of such indebtedness does not exceed the maximum
nonusurious amount permitted by applicable law.

Section 2.12           Pro Rata Treatment
and Payments.

(a)           Each borrowing of
Revolving Loans and any reduction of the Revolving Commitments shall be made pro
rata according to the respective Revolving Commitment Percentages of the
Lenders.  Each payment (other than
prepayments) of principal or interest under this Agreement or any Note shall be
applied pro rata, first, to any fees then due and owing by the Borrower
pursuant to Section 2.6, second, to interest then due and owing hereunder and
under the Notes and, third, to principal then due and owing hereunder and under
the Notes.  Each payment on account of
any fees pursuant to Section 2.6 shall be made pro  rata in
accordance with the respective amounts due and owing (except as to the portion
of the Letter of Credit retained by the Issuing Lender and the Issuing Lender
Fees).  Each optional prepayment of the
Loans shall be applied in accordance with Section 2.8(a) and each mandatory
prepayment of the Loans shall be applied in accordance with Section
2.8(b).  Prepayments made pursuant to
Section 2.15 shall be applied in accordance with such section.  All payments (including prepayments) to be
made by the Borrower on account of principal, interest and fees shall be made
without defense, set-off or counterclaim (except as provided in Section
2.18(b)) and shall be made to the Administrative Agent for the account of the
Lenders at the Administrative Agent’s office specified on Schedule 9.2
in Dollars and in immediately available funds not later than 12:00 Noon on
the date when due.  The Administrative
Agent shall distribute such payments to the Lenders entitled thereto promptly
upon receipt in like funds as received. 
If any payment hereunder (other than payments on the LIBOR Rate Loans)
becomes due and payable on a day other than a Business Day, such payment shall
be extended to the next succeeding Business Day, and, with respect to payments
of principal, interest thereon shall be payable at the then applicable rate
during such extension.  If any payment on
a LIBOR Rate Loan becomes due and payable on a day other than a Business Day,
the maturity thereof shall be extended to the next succeeding Business Day unless
the result of such extension would be to extend such payment into another
calendar month, in which event such payment shall be made on the immediately
preceding Business Day.

(b)           Allocation of
Payments After Event of Default. Notwithstanding any other provisions of
this Agreement to the contrary, after the exercise of remedies by the
Administrative Agent or the Lenders pursuant to Section 7.2 (or after the
Commitments shall automatically terminate and the Loans (with accrued interest
thereon) and all other amounts under the Credit Documents (including without
limitation the maximum amount of all contingent liabilities under Letters of
Credit) shall automatically become due and payable in accordance with the terms
of such Section), all amounts collected or received by the Administrative Agent
or any Lender on account of the Credit Party Obligations or any other amounts
outstanding under any of the Credit Documents or in respect of the Collateral
shall be paid over or delivered as follows:

FIRST, to the payment of all reasonable out-of-pocket
costs and expenses (including without limitation reasonable attorneys’ fees) of
the Administrative Agent in connection with enforcing the rights of the Lenders
under the Credit Documents and any 

 44
 

protective
advances made by the Administrative Agent with respect to the Collateral under
or pursuant to the terms of the Security Documents;

SECOND, to payment of any fees owed to the
Administrative Agent;

THIRD, to the payment of all reasonable out-of-pocket
costs and expenses (including without limitation, reasonable attorneys’ and
consultants’ fees) of each of the Lenders in connection with enforcing its
rights under the Credit Documents or otherwise with respect to the Credit Party
Obligations owing to such Lender;

FOURTH, to the
payment of all of the Credit Party Obligations consisting of accrued fees and
interest, and including with respect to any
Secured Hedging Agreement, any fees, premiums and scheduled periodic payments
due under such Secured Hedging Agreement and any interest accrued thereon;

FIFTH, to the payment of the outstanding principal
amount of the Credit Party Obligations and the payment or cash
collateralization of the outstanding LOC Obligations, and including with
respect to any Secured Hedging Agreement, any breakage, termination or other payments
due under such Secured Hedging Agreement and any interest accrued thereon;

SIXTH, to all other Credit Party Obligations and other
obligations which shall have become due and payable under the Credit Documents
or otherwise and not repaid pursuant to clauses ”FIRST” through “FIFTH”
above; and

SEVENTH, to the payment of the surplus, if any, to
whomever may be lawfully entitled to receive such surplus.

In carrying out
the foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category;
(ii) each of the Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then
outstanding Loans, LOC Obligations and obligations outstanding under the Hedge
Agreements (if any) permitted by Section 6.1(e) held by such Lender (and its
Affiliates in the case of Hedge Agreement obligations) bears to the aggregate
then outstanding Loans, LOC Obligations and obligations outstanding under the
Hedge Agreements between any Credit Party and any Lender or any Affiliate of a
Lender that are permitted by Section 6.1(e)) of amounts available to be
applied pursuant to clauses “FOURTH” and “FIFTH” above; and (iii) to the
extent that any amounts available for distribution pursuant to clause “FIFTH”
above are attributable to the issued but undrawn amount of outstanding Letters
of Credit, such amounts shall be held by the Administrative Agent in a cash
collateral account and applied (A) first, to reimburse the Issuing Lender from
time to time for any drawings under such Letters of Credit and (B) then,
following the expiration of all Letters of Credit, to all other obligations of
the types described in clauses “FIFTH” and “SIXTH” above in the manner provided
in this Section 2.12(b).  Notwithstanding
the foregoing terms of this Section 2.12, only Collateral proceeds and payments
under the Guaranty (as opposed to ordinary course principal,

 45

interest and fee
payments hereunder) shall be applied to obligations under any Secured Hedging
Agreement.

Section 2.13           Non-Receipt of
Funds by the Administrative Agent.

(a)           Unless the
Administrative Agent shall have been notified in writing by a Lender prior to
the date a Loan is to be made by such Lender (which notice shall be effective
upon receipt) that such Lender does not intend to make the proceeds of such
Loan available to the Administrative Agent, the Administrative Agent may assume
that such Lender has made such proceeds available to the Administrative Agent
on such date, and the Administrative Agent may in reliance upon such assumption
(but shall not be required to) make available to the Borrower a corresponding
amount.  If such corresponding amount is
not in fact made available to the Administrative Agent, the Administrative
Agent shall be able to recover such corresponding amount from such Lender.  If such Lender does not pay such
corresponding amount forthwith upon the Administrative Agent’s demand therefor,
in accordance with the terms hereof, the Administrative Agent will promptly
notify the Borrower, and the Borrower shall immediately pay such corresponding
amount to the Administrative Agent.  The
Administrative Agent shall also be entitled to recover from the Lender or the
Borrower, as the case may be, interest on such corresponding amount in respect
of each day from the date such corresponding amount was made available by the
Administrative Agent to the Borrower to the date such corresponding amount is
recovered by the Administrative Agent at a per annum rate equal to
(i) from the Borrower at the applicable rate for the applicable borrowing
pursuant to the Notice of Borrowing and
(ii) from a Lender at the Federal Funds Effective Rate.

(b)           Unless the
Administrative Agent shall have been notified in writing by the Borrower, prior
to the date on which any payment is due from it hereunder (which notice shall
be effective upon receipt) that the Borrower does not intend to make such
payment, the Administrative Agent may assume that the Borrower has made such
payment when due, and the Administrative Agent may in reliance upon such
assumption (but shall not be required to) make available to each Lender on such
payment date an amount equal to the portion of such assumed payment to which
such Lender is entitled hereunder, and if the Borrower has not in fact made
such payment to the Administrative Agent, such Lender shall, on demand, repay
to the Administrative Agent the amount made available to such Lender.  If such amount is repaid to the
Administrative Agent on a date after the date such amount was made available to
such Lender, such Lender shall pay to the Administrative Agent on demand
interest on such amount in respect of each day from the date such amount was
made available by the Administrative Agent to such Lender to the date such
amount is recovered by the Administrative Agent at a per annum rate equal to
the Federal Funds Effective Rate.

(c)           A certificate of the
Administrative Agent submitted to the Borrower or any Lender with respect to
any amount owing under this Section 2.13 shall be conclusive in the absence of
manifest error.

 46
 

Section 2.14           Inability to
Determine Interest Rate.

Notwithstanding any other
provision of this Agreement, if (i) the Administrative Agent shall
reasonably determine (which determination shall be conclusive and binding
absent manifest error) that, by reason of circumstances affecting the relevant
market, reasonable and adequate means do not exist for ascertaining LIBOR for such
Interest Period, or (ii) the
Required Lenders shall reasonably determine (which determination shall be
conclusive and binding absent manifest error) that the LIBOR Rate does not
adequately and fairly reflect the cost to such Lenders of funding LIBOR Rate
Loans that the Borrower has requested be outstanding as a LIBOR Rate Loan
during such Interest Period, the Administrative Agent shall forthwith give
telephone notice of such determination, confirmed in writing, to the Borrower,
and the Lenders at least two Business Days prior to the first day of such
Interest Period.  Unless the Borrower
shall have notified the Administrative Agent upon receipt of such telephone
notice that they wish to rescind or modify their request regarding such LIBOR
Rate Loans, any Loans that were requested to be made as LIBOR Rate Loans shall
be made as Alternate Base Rate Loans and any Loans that were requested to be
converted into or continued as LIBOR Rate Loans shall remain as or be converted
into Alternate Base Rate Loans.  Until
any such notice has been withdrawn by the Administrative Agent, no further
Loans shall be made as, continued as, or converted into, LIBOR Rate Loans for
the Interest Periods so affected.

Section 2.15           Illegality.

Notwithstanding any other
provision of this Agreement, if the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof by the
relevant Governmental Authority to any Lender shall make it unlawful for such
Lender or its LIBOR Lending Office to make or maintain LIBOR Rate Loans as
contemplated by this Agreement or to obtain in the interbank eurodollar market
through its LIBOR Lending Office the funds with which to make such Loans, (a) such Lender shall promptly
notify the Administrative Agent and the Borrower thereof, (b) the commitment of such Lender
hereunder to make LIBOR Rate Loans or continue LIBOR Rate Loans as such shall
forthwith be suspended until the Administrative Agent shall give notice that
the condition or situation which gave rise to the suspension shall no longer
exist, and (c) such Lender’s
Loans then outstanding as LIBOR Rate Loans, if any, shall be converted on the
last day of the Interest Period for such Loans or within such earlier period as
required by law as Alternate Base Rate Loans. 
The Borrower hereby agrees to promptly pay any Lender, upon its demand,
any additional amounts necessary to compensate such Lender for actual and
direct costs (but not including anticipated profits) reasonably incurred by
such Lender in making any repayment in accordance with this Section including,
but not limited to, any interest or fees payable by such Lender to lenders of
funds obtained by it in order to make or maintain its LIBOR Rate Loans
hereunder.  A certificate as to any
additional amounts payable pursuant to this Section submitted by such Lender,
through the Administrative Agent, to the Borrower shall be conclusive in the
absence of manifest error.  Each Lender
agrees to use reasonable efforts (including reasonable efforts to change its
LIBOR Lending Office) to avoid or to minimize any amounts which may otherwise
be payable pursuant to this Section; provided, however, that such
efforts shall not cause the imposition on such Lender of any additional costs
or legal or regulatory burdens deemed by such Lender in its sole discretion to
be material.

 47
 

Section 2.16           Requirements of Law.

(a)           If the adoption of or
any change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental
Authority made subsequent to the date hereof:

(i)            shall
subject such Lender to any tax of any kind whatsoever with respect to any
Letter of Credit or any application relating thereto, any LIBOR Rate Loan made
by it, or change the basis of taxation of payments to such Lender in respect
thereof (except for tax on the overall net income of such Lender and changes in
the rate of such tax);

(ii)           shall
impose, modify or hold applicable any reserve, special deposit, compulsory loan
or similar requirement against assets held by, deposits or other liabilities in
or for the account of, advances, loans or other extensions of credit by, or any
other acquisition of funds by, any office of such Lender which is not otherwise
included in the determination of the LIBOR Rate hereunder; or

(iii)          shall impose on such Lender any other
condition;

and the result of any of
the foregoing is to increase the cost to such Lender of making or maintaining
LIBOR Rate Loans or the Letters of Credit or to reduce any amount receivable
hereunder or under any Note, LIBOR Rate Loan or Letter of Credit, then, in any
such case, the Borrower shall promptly pay such Lender, upon its demand, any
additional amounts necessary to compensate such Lender for such additional cost
or reduced amount receivable which such Lender reasonably deems to be material
as determined by such Lender with respect to its LIBOR Rate Loans or Letters of
Credit.  A certificate as to any
additional amounts payable pursuant to this Section submitted by such Lender,
through the Administrative Agent, to the Borrower shall be conclusive in the
absence of manifest error.  Each Lender
agrees to use reasonable efforts (including reasonable efforts to change its
Domestic Lending Office or LIBOR Lending Office, as the case may be) to avoid
or to minimize any amounts which might otherwise be payable pursuant to this
paragraph of this Section; provided, however, that such efforts
shall not cause the imposition on such Lender of any additional costs or other
disadvantages deemed by such Lender to be material.

(b)           If any Lender shall
have reasonably determined that the adoption of or any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any central bank or Governmental Authority
made subsequent to the date hereof does or shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s
policies with respect to capital adequacy) by an amount reasonably deemed by
such Lender to be material, then from time to time, within fifteen (15) days
after demand by such Lender, the Borrower shall pay to such Lender such 

 48
 

additional amount as shall be certified by such Lender
as being required to compensate it for such reduction.  Such a certificate as to any additional
amounts payable under this Section submitted by a Lender (which certificate
shall include a description of the basis for the computation), through the
Administrative Agent, to the Borrower shall be conclusive absent manifest
error.

(c)           The agreements in this
Section 2.16 shall survive the termination of this Agreement and payment of the
Notes and all other amounts payable hereunder.

Section 2.17           Indemnity.

The Borrower hereby
agrees to indemnify each Lender and to hold such Lender harmless from any
funding loss or expense which such Lender may sustain or incur as a consequence
of (a) default by the Borrower
in payment of the principal amount of or interest on any Loan by such Lender in
accordance with the terms hereof, (b) default
by the Borrower in accepting a borrowing after the Borrower has given a notice
in accordance with the terms hereof,
(c) default by the Borrower in making any prepayment after the
Borrower has given a notice in accordance with the terms hereof, and/or (d) the making by the Borrower of a
prepayment of a Loan, or the conversion thereof, on a day which is not the last
day of the Interest Period with respect thereto, in each case including, but
not limited to, any such loss or expense arising from interest or fees payable
by such Lender to lenders of funds obtained by it in order to maintain its
Loans hereunder.  A certificate as to any
additional amounts payable pursuant to this Section submitted by any Lender,
through the Administrative Agent, to the Borrower shall be conclusive in the
absence of manifest error.  The
agreements in this Section shall survive termination of this Agreement and
payment of the Notes and all other amounts payable hereunder.

Section 2.18           Taxes.

(a)           All payments made by
the Borrower hereunder or under any Note shall be, except as provided in
Section 2.18(b), made free and clear of, and without deduction or withholding
for, any present or future taxes, levies, imposts, duties, fees, assessments or
other charges of whatever nature now or hereafter imposed by any Governmental
Authority or by any political subdivision or taxing authority thereof or
therein with respect to such payments (but excluding any tax imposed on or
measured by the net income or profits of a Lender pursuant to the laws of the
jurisdiction in which it is organized or the jurisdiction in which the
principal office or applicable lending office of such Lender is located or any
subdivision thereof or therein) and all interest, penalties or similar
liabilities with respect thereto (all such non-excluded taxes, levies,
imposts, duties, fees, assessments or other charges being referred to
collectively as “Taxes”).  If any
Taxes are so levied or imposed, the Borrower agrees to pay the full amount of
such Taxes, and such additional amounts as may be necessary so that every payment
of all amounts due under this Agreement or under any Note, after withholding or
deduction for or on account of any Taxes, will not be less than the amount
provided for herein or in such Note.  The
Borrower will furnish to the Administrative Agent as soon as practicable after
the date the payment of any Taxes is due pursuant to applicable law certified
copies (to the extent reasonably available and required by law) of tax receipts
evidencing such payment by the Borrower. 
The Borrower agrees 

 49
 

to indemnify and hold harmless each Lender, and
reimburse such Lender upon its written request, for the amount of any Taxes so
levied or imposed and paid by such Lender.

(b)           Each Lender that is not
a United States person (as such term is defined in Section 7701(a)(30) of
the Code) agrees to deliver to the Borrower and the Administrative Agent on or
prior to the Closing Date, or in the case of a Lender that is an assignee or
transferee of an interest under this Agreement pursuant to Section 9.6(d)
(unless the respective Lender was already a Lender hereunder immediately prior
to such assignment or transfer), on the date of such assignment or transfer to
such Lender, (i) if the Lender is a “bank” within the meaning of
Section 881(c)(3)(A) of the Code, two accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN or W-8ECI (or successor
forms) certifying such Lender’s entitlement to a complete exemption from United
States withholding tax with respect to payments to be made under this Agreement
and under any Note, or (ii) if
the Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of
the Code, either Internal Revenue Service Form W-8BEN or W-8ECI as set forth in
clause (i) above, or (x) a certificate substantially in the form of Schedule 2.18
(any such certificate, a “Tax Exempt Certificate”) and (y) two accurate
and complete original signed copies of Internal Revenue Service Form W-8
(or successor form) certifying such Lender’s entitlement to an exemption from
United States withholding tax with respect to payments of interest to be made
under this Agreement and under any Note. 
In addition, each Lender agrees that it will deliver upon the Borrower’s
request updated versions of the foregoing, as applicable, whenever the previous
certification has become obsolete or inaccurate in any material respect,
together with such other forms as may be required in order to confirm or
establish the entitlement of such Lender to a continued exemption from or
reduction in United States withholding tax with respect to payments under this
Agreement and any Note.  Notwithstanding
anything to the contrary contained in Section 2.18(a), but subject to the
immediately succeeding sentence, (x) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold Taxes imposed by
the United States (or any political subdivision or taxing authority thereof or
therein) from interest, fees or other amounts payable hereunder for the account
of any Lender which is not a United States person (as such term is defined in
Section 7701(a)(30) of the Code) for U.S. Federal income tax purposes to
the extent that such Lender has not provided to the Borrower U.S. Internal
Revenue Service Forms that establish a complete exemption from such deduction or
withholding and (y) the Borrower shall not be obligated pursuant to Section
2.18(a) hereof to gross-up payments to be made to a Lender in respect of
Taxes imposed by the United States if (I) such Lender has not provided to the
Borrower the Internal Revenue Service Forms required to be provided to the
Borrower pursuant to this Section 2.18(b) or (II) in the case of a payment,
other than interest, to a Lender described in clause (ii) above, to the
extent that such Forms do not establish a complete exemption from withholding
of such Taxes.  Notwithstanding anything
to the contrary contained in the preceding sentence or elsewhere in this
Section 2.18, the Borrower agrees to pay additional amounts and to indemnify
each Lender in the manner set forth in Section 2.18(a) (without regard to the
identity of the jurisdiction requiring the deduction or withholding) in respect
of any amounts deducted or withheld by it as described in the immediately
preceding sentence as a result of any changes after the Closing Date in any
applicable law, treaty, governmental rule, regulation, guideline or order, or
in the interpretation thereof, relating to the deducting or withholding of
Taxes.

 50
 

(c)           Each Lender agrees to
use reasonable efforts (including reasonable efforts to change its Domestic
Lending Office or LIBOR Lending Office, as the case may be) to avoid or to
minimize any amounts which might otherwise be payable pursuant to this Section;
provided, however, that such efforts shall not cause the
imposition on such Lender of any additional costs or other disadvantages deemed
by such Lender in its sole discretion to be material.

(d)           If the Borrower pays
any additional amount pursuant to this Section 2.18 with respect to a Lender,
such Lender shall use reasonable efforts to obtain a refund of tax or credit
against its tax liabilities on account of such payment; provided that
such Lender shall have no obligation to use such reasonable efforts if either
(i) it is in an excess foreign tax credit position or (ii) it believes in good faith, in
its sole discretion, that claiming a refund or credit would cause adverse tax
consequences to it.  In the event that
such Lender receives such a refund or credit, such Lender shall pay to the
Borrower an amount that such Lender reasonably determines is equal to the net
tax benefit obtained by such Lender as a result of such payment by the
Borrower.  In the event that no refund or
credit is obtained with respect to the Borrower’s payments to such Lender
pursuant to this Section 2.18, then such Lender shall upon request provide a
certification that such Lender has not received a refund or credit for such
payments.  Nothing contained in this
Section 2.18(d) shall require a Lender to disclose or detail the basis of its
calculation of the amount of any tax benefit or any other amount or the basis
of its determination referred to in the proviso to the first sentence of this
Section 2.18(d) to the Borrower or any other party.

(e)           The agreements in this
Section 2.18 shall survive the termination of this Agreement and the payment of
the Notes and all other amounts payable hereunder.

Section 2.19           Indemnification;
Nature of Issuing Lender’s Duties.

(a)           In addition to its
other obligations under Section 2.3, the Borrower hereby agrees to protect,
indemnify, pay and save each Issuing Lender harmless from and against any and
all claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable attorneys’ fees) that the Issuing Lender may incur or be
subject to as a consequence, direct or indirect, of (i) the issuance of
any Letter of Credit or (ii) the
failure of the Issuing Lender to honor a drawing under a Letter of Credit as a
result of any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or governmental authority (all such acts
or omissions, herein called “Government Acts”).

(b)           As between the Borrower
and the Issuing Lender, the Borrower shall assume all risks of the acts,
omissions or misuse of any Letter of Credit by the beneficiary thereof.  The Issuing Lender shall not be
responsible:  (i) for the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document
submitted by any party in connection with the application for and issuance of
any Letter of Credit, even if it should in fact prove to be in any or all
respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the validity or sufficiency
of any instrument transferring or assigning or purporting to transfer or assign
any Letter of Credit or the rights or benefits thereunder or proceeds thereof,
in whole or in part, that may prove to be invalid or ineffective for any
reason; (iii) for failure of
the beneficiary of a Letter of Credit to comply fully with conditions required
in order to draw upon a Letter of Credit;
(iv) for errors, omissions, interruptions or delays in transmission
or delivery of any 

 51
 

messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (v) for errors in
interpretation of technical terms; (vi) for any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under a Letter of Credit or of the proceeds thereof; and (vii) for any
consequences arising from causes beyond the control of the Issuing Lender,
including, without limitation, any Government Acts.  None of the above shall affect, impair, or
prevent the vesting of the Issuing Lender’s rights or powers hereunder.

(c)           In furtherance and
extension and not in limitation of the specific provisions hereinabove set
forth, any action taken or omitted by the Issuing Lender, under or in
connection with any Letter of Credit or the related certificates, if taken or
omitted in good faith, shall not put such Issuing Lender under any resulting
liability to the Borrower.  It is the
intention of the parties that this Agreement shall be construed and applied to
protect and indemnify the Issuing Lender against any and all risks involved in
the issuance of the Letters of Credit, all of which risks are hereby assumed by
the Borrower, including, without limitation, any and all risks of the acts or
omissions, whether rightful or wrongful, of any Government Authority.  The Issuing Lender shall not, in any way, be
liable for any failure by the Issuing Lender or anyone else to pay any drawing
under any Letter of Credit as a result of any Government Acts or any other
cause beyond the control of the Issuing Lender.

(d)           Nothing in this Section
2.19 is intended to limit the reimbursement obligation of the Borrower
contained in Section 2.3(d) hereof.  The
obligations of the Borrower under this Section 2.19 shall survive the
termination of this Agreement.  No act or
omissions of any current or prior beneficiary of a Letter of Credit shall in
any way affect or impair the rights of the Issuing Lender to enforce any right,
power or benefit under this Agreement.

(e)           Notwithstanding
anything to the contrary contained in this Section 2.19, the Borrower shall
have no obligation to indemnify any Issuing Lender in respect of any liability
incurred by such Issuing Lender arising out of the gross negligence or willful
misconduct of the Issuing Lender (including action not taken by an Issuing
Lender), as determined by a court of competent jurisdiction.

Section 2.20           Extension
of Maturity Date.

(a)           Requests for Extension.  The
Borrower may, up to two times prior to the Revolver Maturity Date during the term of
this Credit Agreement, by notice to the Administrative Agent (who shall
promptly notify the Lenders) not earlier than 60 days and not later than 30
days prior to any anniversary of the Closing Date that occurs prior to the
Revolver Maturity Date, request that each Revolving Lender consent to extend
the Revolver Maturity Date for an additional one year from the Revolver
Maturity Date then in effect hereunder (the “Existing Maturity Date”).

(b)           Lender Elections to Extend.  Each Revolving Lender, acting in its sole and
individual discretion, shall, by notice to the Administrative Agent given not
later than the date (the “Notice Date”) that is 15 days prior to the
applicable anniversary of the Closing Date, advise the Administrative Agent
whether or not such Revolving Lender agrees to such extension.  Each Lender that determines not to so extend
the Revolver Maturity Date (a 

 52
 

“Non-Extending
Lender”) shall notify the Administrative Agent of such fact promptly after
such determination (but in any event no later than the Notice Date).  Any Revolving Lender that does not advise the
Administrative Agent on or before the Notice Date shall be deemed to be a Non-Extending
Lender.  The election of any Revolving
Lender to agree to such extension shall not obligate any other Revolving Lender
to so agree.

(c)           Notification by Administrative Agent.  The Administrative Agent shall notify the
Borrower of each Revolving Lender’s determination under this Section no
later than the date 15 days prior to the applicable anniversary of the Closing
Date (or, if such date is not a Business Day, on the next preceding Business
Day).

(d)           Additional Commitment Lenders.  The
Borrower shall have the right on or before the applicable anniversary of the Closing Date to replace each Non-Extending
Lender with one or more institutions (each, an “Additional Commitment Lender”) (i) that is an
existing Revolving
Lender (and, if any such Additional
Commitment Lender is already a Revolving Lender,
the Revolving Commitment it assumes
from such Non-Extending Lender shall be in addition to such Revolving Lender’s Revolving Commitment hereunder on such date, provided that each
Revolving Lender shall have no obligation to increase its Commitment or become
an Additional Commitment Lender) or (ii) that is not an existing Revolving Lender;
provided that any such institution (A) must conform with the
requirements contained in Section 9.6(c), (B) must be acceptable to the
Administrative Agent (which approval shall not be unreasonably withheld or
delayed) and (C) must become a Revolving Lender under this Credit Agreement by
execution and delivery of an appropriate joinder agreement or of counterparts
to this Credit Agreement in a manner acceptable to the Borrower and the
Administrative Agent.

(e)           Minimum Extension Requirement.  If (and only if) the total of the Revolving
Commitments of the Revolving Lenders that have agreed so to extend the Revolver
Maturity Date plus the additional Revolving Commitments of the Additional
Commitment Lenders equals at least 51% of the aggregate amount of the Revolving
Committed Amount in effect immediately prior to the applicable anniversary of the
Closing Date, then, effective as of the applicable anniversary of the Closing
Date, the Revolver Maturity Date shall be extended to the date falling one year
after the Existing Maturity Date (except that, if such date is not a Business
Day, such Revolver Maturity Date as so extended shall be the next preceding
Business Day) and each Additional Commitment Lender shall thereupon become a “Revolving
Lender” for all purposes of this Agreement.

(f)            Conditions to Effectiveness of Extensions.  Notwithstanding the foregoing, the extension
of the Revolver Maturity Date pursuant to this Section shall not be
effective unless:

(i)            no Default or Event of Default shall have occurred and
be continuing on the date of such extension and after giving effect thereto;

(ii)           the representations and
warranties contained in this Agreement are true and correct on and as of the
date of such extension and after giving effect thereto, as though made on and
as of such date (or, if any such representation or 

 53
 

warranty is expressly stated
to have been made as of a specific date, as of such specific date);

(iii)          with respect to each
Non-Extending Lender, on the Existing Maturity Date (as in effect prior
to such extension), the Borrower shall prepay (provided that any such
prepayment shall be subject to Section 2.17) all Borrower Obligations owing to
such Non-Extending Lender and, if such Non-Extending Lender has not been
replaced by an Additional Commitment Lender, the Revolving Committed Amount
shall be reduced by an amount equal to such Non-Extending Lender’s Revolving Commitment;

(iv)          on
the Existing
Maturity Date  (as in effect prior to such extension), if any Non-Extending Lender has
not been replaced by an Additional Commitment Lender, the Borrower shall prepay
(provided that any such prepayment shall be subject to Section 2.17) one or
more existing Revolving
Loans in an amount necessary such that, after giving effect to the
extension of the Revolver
Maturity Date, each Revolving Lender and each Additional Commitment Lender will hold
its Revolving Commitment Percentage (based on its share of the revised
Revolving Committed Amount) of outstanding Revolving Loans;

(v)           on
the Existing
Maturity Date  (as in effect prior to such extension), the Borrower shall prepay
(provided that any such prepayment shall be subject to Section 2.17) one or
more existing Revolving
Loans or cash collateralize Letters of Credit in an amount necessary such that,
after giving effect to the extension of the Revolver Maturity Date, the aggregate
amount of LOC Obligations outstanding plus Revolving Loans outstanding plus
Swingline Loans outstanding shall not exceed the Revolving Committed Amount;
and

(vi)          since
the date of the most recent annual audited financial statements delivered
pursuant to Section 5.1(a), no event or condition shall have occurred that has
had or could be reasonably expected to have a Material Adverse Effect.

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES

To induce the Lenders to
enter into this Agreement and to make the Extensions of Credit herein provided
for, the Credit Parties hereby represent and warrant to the Administrative
Agent and to each Lender that:

Section 3.1             Financial Condition.

(a)
The audited consolidated financial statements of the Parent and its
Subsidiaries for the fiscal quarter ending December 31, 2006:

 54
 

(A)          were prepared in
accordance with GAAP (to the extent applicable) consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein;

(B)           fairly present the
financial condition of the Parent and its Subsidiaries as of the date or dates
thereof (subject to normal year-end adjustments) and results of operations for
the period covered thereby; and

(C)           show all Indebtedness
and other liabilities in excess of $500,000 in aggregate principal amount,
direct or contingent, of the Parent and its Subsidiaries as of the date
thereof, including liabilities for taxes, commitments and other contingent
obligations.

(b)           The written projections
of the Parent and its Subsidiaries through fiscal year 2012 provided to the
Administrative Agent on or before the Closing Date have been prepared in good
faith based upon reasonable assumptions.

Section 3.2             No Change.

Since December 31, 2006
(and, after delivery of annual audited financial statements in accordance with
Section 5.1(a), from the date of the most recently delivered annual
audited financial statements) there has been no development or event which,
individually or in the aggregate, has had or could reasonably be expected to
have a Material Adverse Effect.

Section 3.3             Corporate Existence; Compliance with
Law.

Each of the Credit
Parties (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the
requisite corporate power, authority and right to own and operate all its
property, to lease the property it operates as lessee and to conduct the
business in which it is currently engaged,
(c) is duly qualified to conduct business and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of
property or the conduct of its business requires such qualification except to
the extent that the failure to so qualify or be in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect and (d) is in
compliance with all Requirements of Law except to the extent that the failure
to comply therewith could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

Section 3.4             Corporate Power; Authorization;
Enforceable Obligations.

Each of the Credit
Parties has full corporate power, authority and right to execute, deliver and
perform the Credit Documents to which it is party and has taken all necessary
limited liability company or corporate action to authorize the execution,
delivery and performance by it of the Credit Documents to which it is
party.  No consent or authorization of,
filing with, notice to or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the borrowings
hereunder or with the execution, delivery or performance of any Credit Document
by the Credit Parties (other than those which have been obtained) or with the 

 55
 

validity or enforceability of any Credit Document
against the Credit Parties (except such filings as are necessary in connection
with the perfection of the Liens created by such Credit Documents).  Each Credit Document to which it is a party
has been duly executed and delivered on behalf of each of the Credit
Parties.  Each Credit Document to which
it is a party constitutes a legal, valid and binding obligation of each of the
Credit Parties, enforceable against such Credit Party in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law).

Section 3.5             Compliance
with Laws; No Conflict; No Default.

(a)           The execution, delivery
and performance by each Credit Party of the Credit Documents to which such
Credit Party is a party, in accordance with their respective terms, the
borrowings hereunder and the transactions contemplated hereby do not and will
not, by the passage of time, the giving of notice or otherwise, (i) violate any
Requirement of Law relating to such Credit Party, (ii) conflict with, result in
a breach of or constitute a default under the articles of incorporation,
bylaws, articles of organization, operating agreement or other organizational
documents of such Credit Party or any material indenture, agreement or other
instrument to which such Person is a party or by which any of its properties
may be bound or any license, permit or other approval required by any
Governmental Authority (collectively “Governmental Approvals”) relating
to such Person, except to the extent that such conflict, breach or default with
respect to any such indenture, agreement or instrument could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect,
or (iii) result in or require the creation or imposition of any Lien upon or
with respect to any property now owned or hereafter acquired by such Person
other than Liens arising under the Credit Documents.

(b)           Each Credit Party (i)
(x) has all Governmental Approvals required by law for it to conduct its
business in all material respects, each of which is in full force and effect,
(y) each such Governmental Approval is final and not subject to review on
appeal and (z) each such Governmental Approval is not the subject of any
pending or, to the best of its knowledge, threatened attack by direct or
collateral proceeding, and (ii) is in compliance with each Governmental
Approval applicable to it and in compliance with all other Requirements of Law
relating to it or any of its respective properties, in each case except to the
extent the failure to obtain such Governmental Approval or failure to comply
with such Governmental Approval or Requirement of Law could not reasonably be
expected to have a Material Adverse Effect.

(c)           None of the Credit
Parties is in default under or with respect to any of its Material Contracts,
or any judgment, order or decree to which it is a party, in any respect which
could reasonably be expected to have a Material Adverse Effect.  No Default or Event of Default has occurred
and is continuing.

Section 3.6             No Material Litigation.

Set forth on Schedule
3.6 is a list, as of the Closing Date, of any material litigation,
investigation, bankruptcy or insolvency, injunction, order or claim affecting
or relating to any 

 56
 

Credit Party or any of its Subsidiaries, any such
Person’s properties or revenues, or any Credit Document that is pending or, to
the knowledge of the Credit Parties, threatened, by or against any Credit Party
or any of its Subsidiaries or against any of its or their respective properties
or revenues that has not been settled, dismissed, vacated, discharged or
terminated.  No litigation,
investigation, bankruptcy or insolvency, injunction, order or claim affecting
or relating to any Credit Party or any of its Subsidiaries, any such Person’s
properties or revenues, or any Credit Document is pending or, to the knowledge
of the Credit Parties, threatened, by or against any Credit Party or any of its
Subsidiaries or against any of its or their respective properties or revenues
that has not been settled, dismissed, vacated, discharged or terminated which
could reasonably be expected to have a Material Adverse Effect, and no
judgments are outstanding which
could reasonably be expected to have a Material Adverse Effect.

Section 3.7             Investment Company Act; Etc.

No Credit Party is an “investment
company”, or a company “controlled” by an “investment company”, within the meaning
of the Investment Company Act of 1940, as amended.  No Credit Party is a subject to regulation
under the Federal Power Act, the Interstate Commerce Act, or any federal or
state statute or regulation limiting its ability to incur the Credit Party Obligations.

Section 3.8             Margin Regulations.

No part of the proceeds
of any Loan hereunder will be used directly or indirectly for any purpose which
violates, or which would be inconsistent with, the provisions of
Regulation T, U or X of the Board of Governors of the Federal Reserve
System as now and from time to time hereafter in effect.  The Credit Parties (a) are not engaged,
principally or as one of their important activities, in the business of
extending credit for the purpose of “purchasing” or “carrying” “margin stock”
within the respective meanings of each of such terms under Regulation U and (b)
taken as a group do not own “margin stock” except as identified in the
financial statements referred to in Section 3.1 and the aggregate value of
all “margin stock” owned by the Credit Parties taken as a group does not exceed
25% of the value of their assets.

Section 3.9             ERISA.

Except as set forth in Schedule 3.9,
neither a Reportable Event nor an “accumulated funding deficiency” (within the
meaning of Section 412 of the Code or Section 302 of ERISA) has
occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Plan, and each Plan
has complied in all material respects with the applicable provisions of ERISA
and the Code, except to the extent that any such occurrence or failure to
comply would not reasonably be expected to have a Material Adverse Effect.  No termination of a Single Employer Plan has
occurred resulting in any liability that has remained underfunded, and no Lien
in favor of the PBGC or a Plan has arisen, during such five-year period
which could reasonably be expected to have a Material Adverse Effect.  The present value of all accrued benefits
under each Single Employer Plan (based on those assumptions used to fund such
Plans) did not, as of the last annual valuation date prior to the date on which
this representation is made or deemed made, exceed the value of the assets of
such Plan allocable to 

 57
 

such accrued benefits by an amount which, as
determined in accordance with GAAP, could reasonably be expected to have a
Material Adverse Effect.  Neither any
Credit Party, nor any of its Subsidiaries nor any Commonly Controlled Entity is
currently subject to any liability for a complete or partial withdrawal from a
Multiemployer Plan which could reasonably be expected to have a Material
Adverse Effect.

Section 3.10           Environmental
Matters.

Except
for exceptions to the following which, either individually or in the aggregate,
could not be reasonably expected to result in a Material Adverse Effect:

(a)           The facilities and
properties owned, leased or operated by the Credit Parties or any of their
Subsidiaries (the “Properties”) do not contain any Materials of
Environmental Concern in amounts or concentrations which (i) constitute a
violation of, or (ii) could
give rise to liability under, any Environmental Law.

(b)           The Properties and all
operations of the Credit Parties and their Subsidiaries at the Properties are
in compliance, and have in the last five years been in compliance, in all
material respects with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties or the business operated by
the Credit Parties or any of their Subsidiaries (the “Business”).

(c)           No Credit Party nor any
Subsidiary thereof has received any written or actual notice of violation,
alleged violation, non-compliance, liability or potential liability
regarding environmental matters or compliance with Environmental Laws with
regard to any of the Properties or the Business, nor does any Credit Party nor
any Subsidiary thereof have knowledge or reason to believe that any such notice
will be received or is being threatened.

(d)           Materials of
Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location which could give
rise to liability under, any Environmental Law, nor have any Materials of
Environmental Concern been generated, treated, stored or disposed of at, on or
under any of the Properties in violation of, or in a manner that could give
rise to liability under, any applicable Environmental Law.

(e)           No judicial proceeding
or governmental or administrative action is pending or, to the knowledge of any
Credit Party or any Subsidiary thereof, threatened, under any Environmental Law
to which the Borrower or any other Credit Party or any Subsidiary is or will be
named as a party with respect to the Properties or the Business, nor are there
any consent decrees or other decrees, consent orders, administrative orders or
other orders, or other administrative or judicial requirements outstanding
under any Environmental Law with respect to the Properties or the Business.

(f)            There has been no
release or threat of release of Materials of Environmental Concern at or from
the Properties, or arising from or related to the operations of the Borrower or
any other Credit Party or any Subsidiary in connection with the Properties or
otherwise in 

 58
 

connection with the Business, in violation of or in
amounts or in a manner that could give rise to liability under Environmental
Laws.

Section 3.11           Purpose of Loans.

The proceeds of the Extensions of Credit shall be used solely by the
Borrower as follows:

(a)           with respect to the Loans, to (i) finance restaurant
construction costs, (ii) pay costs, fees and expenses in connection with such
new restaurant construction, (iii) refinance existing Indebtedness of the
Borrower, (iv) pay any fees and expenses in connection with this Agreement, (v)
provide for the working capital and general corporate requirements of the
Parent, the Borrower and its Subsidiaries, (vi) to finance Permitted
Acquisitions and (vii) make Restricted Payments to the Parent for the purpose
of redeeming and/or repurchasing shares of its Capital Stock, to the extent
permitted by Section 6.11(c) and (d); and

(b)           the Letters of Credit shall be used only for or
in connection with appeal bonds, reimbursement obligations arising in
connection with surety and reclamation bonds, reinsurance, domestic or
international trade transactions and obligations not otherwise aforementioned
relating to transactions entered into by the applicable account party in the
ordinary course of business.

Section 3.12           Subsidiaries.

Set forth on Schedule 3.12
is a complete and accurate list of all Subsidiaries of the Credit Parties as of
the Closing Date.  Information on the
attached Schedule includes state of incorporation or organization; the number of
authorized shares of each class of Capital Stock or other equity interests; the
number of outstanding shares of each class of Capital Stock or other equity
interests, the owner thereof and the percentage of such ownership; and the
number and effect, of all outstanding options, warrants, rights of conversion
or purchase and similar rights.  The
outstanding Capital Stock and other equity interests of all such Subsidiaries
is validly issued, fully paid and non-assessable and is owned free and
clear of all Liens (other than those arising under or contemplated in
connection with the Credit Documents).

Section 3.13           Ownership; Insurance.

Each of the Credit
Parties is the owner of, and has good and, to the extent applicable, marketable
title to, and adequate insurance coverage for, all of its respective assets
that, together with assets leased or licensed by the Credit Parties, represents
all assets individually or in the aggregate material to the conduct of the
businesses of the Credit Parties taken as a whole, and none of such assets is
subject to any Lien other than Permitted Liens. 
Each Credit Party enjoys peaceful and undisturbed possession under all
of its leases and all such leases are valid and subsisting and in full force
and effect other than exceptions to the foregoing that could not reasonably be
expected to have a Material Adverse Effect. 
The Credit Parties have delivered, or made available for review,
complete and accurate copies of all material leases to the Administrative Agent
as of the Closing Date.

 59
 

Section 3.14           Indebtedness.

Except
as otherwise permitted under Section 6.1, the Credit Parties and their
Subsidiaries have no Indebtedness.

Section 3.15           Taxes.

Each
of the Credit Parties and their Subsidiaries has filed, or caused to be filed,
all tax returns (federal, state, local and foreign) required to be filed and
paid (a) all amounts of taxes
shown thereon to be due (including interest and penalties) and (b) all other taxes, fees,
assessments and other governmental charges (including mortgage recording taxes,
documentary stamp taxes and intangibles taxes) owing by it, except for such
taxes (i) which are not yet delinquent or
(ii) that are being contested in good faith and by proper
proceedings, and against which adequate reserves are being maintained in
accordance with GAAP.  None of the Credit
Parties is aware as of the Closing Date of any proposed tax assessments against
it or any of its Subsidiaries which could reasonably be expected to have a
Material Adverse Effect.

Section 3.16           Intellectual Property.

Each
of the Credit Parties and its Subsidiaries owns, or has the legal right to use,
all trademarks, tradenames, copyrights, patents, technology, know-how and
processes necessary for each of them to conduct its business as currently
conducted.  Set forth on Schedule 3.16
is a list of all Intellectual Property owned by the Credit Parties and their
Subsidiaries or that any Credit Party or any of its Subsidiaries has the right
to use.  Except as provided on Schedule 3.16,
no claim has been asserted and is pending by any Person challenging or
questioning the use of any such Intellectual Property owned by a Credit Party
or the validity or effectiveness of any such Intellectual Property owned by a
Credit Party, nor do any Credit Party or any of its Subsidiaries know of any
such claim, and, to the knowledge of any Credit Party and its Subsidiaries, the
use of such Intellectual Property by any Credit Party or any of its
Subsidiaries does not infringe on the rights of any Person, except for such
claims and infringements that in the aggregate, could not reasonably be
expected to have a Material Adverse Effect. 
Schedule 3.16 may be updated from time to time by the
Borrower to include new Intellectual Property by giving written notice thereof
to the Administrative Agent.

Section 3.17           Solvency.

The
fair saleable value of all Credit Parties’ assets, taken as a whole and
measured on a going concern basis, exceeds all probable liabilities, including
those to be incurred pursuant to this Agreement.  None of the Credit Parties (a) has
unreasonably small capital in relation to the business in which it is or
proposes to be engaged or (b) has
incurred, or believes that it will incur after giving effect to the
transactions contemplated by this Agreement, debts beyond its ability to pay
such debts as they become due.

 60

Section 3.18           Investments.

All
Investments of each of the Credit Parties and their Subsidiaries are Permitted
Investments.

Section 3.19           Location of
Collateral.

Set
forth on Schedule 3.19(a) is a list of the Properties of the Credit
Parties and their Subsidiaries with street address, county and state where
located as of the Closing Date.  Set
forth on Schedule 3.19(b) is a list of all locations where any
tangible personal property of the Credit Parties is located, including county
and state where located as of the Closing Date. 
Set forth on Schedule 3.19(c) is the chief executive office
and principal place of business of the Credit Parties as of the Closing Date.

Section 3.20           No Burdensome
Restrictions.

None
of the Credit Parties or any of its Subsidiaries is a party to any agreement or
instrument or subject to any other obligation or any charter or corporate
restriction or any provision of any applicable law, rule or regulation which,
individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect.

Section 3.21           Brokers’ Fees.

None
of the Credit Parties or any of its Subsidiaries have any obligation to any
Person in respect of any finder’s, broker’s, investment banking or other
similar fee in connection with any of the transactions contemplated under the
Credit Documents other than the closing and other fees payable pursuant to this
Agreement.

Section 3.22           Labor Matters.

There
are no collective bargaining agreements or Multiemployer Plans covering the
employees of the Credit Parties or any of its Subsidiaries as of the Closing
Date, other than as set forth in Schedule 3.22 hereto.  As of the Closing Date none of the Credit
Parties or any of its Subsidiaries (i) has suffered any strikes, walkouts,
work stoppages or other material labor difficulty within the five years
preceding the Closing Date, other than as set forth in Schedule 3.22
hereto or (ii) has knowledge of
any pending strike, walkout or work stoppage that could, in either case,
reasonably be expected to have a Material Adverse Effect.

Section 3.23           Security Documents.

The
Security Documents create valid security interests in, and Liens on, the
Collateral purported to be covered thereby, which security interests and Liens
are currently (or will be, upon the filing of appropriate financing statements
and grants of security in Intellectual Property, and the recordation of the
applicable Mortgage Instruments, in each case in favor of the Administrative
Agent) perfected security interests and Liens, prior to all other Liens other
than Permitted Liens.

 61
 

Section 3.24           Accuracy and
Completeness of Information.

All
factual information (other than immaterial factual information, the failure of
such to be true and accurate in all material respects does not adversely affect
the Lenders) heretofore, contemporaneously or hereafter furnished by or on
behalf of any Credit Party or any of its Subsidiaries to the Administrative
Agent or any Lender for purposes of or in connection with this Agreement or any
other Credit Document, or any transaction contemplated hereby or thereby, is or
will be true and accurate in all material respects and not incomplete by
omitting to state any material fact necessary to make such information not
misleading.  There is no fact now known
to any Credit Party or any of its Subsidiaries which has, or could reasonably
be expected to have, a Material Adverse Effect.

Section 3.25           Material Contracts.

Schedule 3.25
sets forth a complete and accurate list of all Material Contracts of the
Borrowers and their Subsidiaries in effect as of the Closing Date.  As of the Closing Date, other than as set
forth in Schedule 3.25, each such Material Contract is, and after giving
effect to the transactions contemplated by the Credit Documents will be, in
full force and effect in accordance with the terms thereof and no Borrower or
Subsidiary thereof has violated in any material respect any such Material
Contract.  The Borrowers have delivered
or made available to the Administrative Agent for its review a correct and
complete copy of each written agreement listed in Schedule 3.25 (as
amended to date) and a written summary setting forth the terms and conditions
of each oral agreement referred to in such Schedule.

Section 3.26           Anti-Terrorism
Laws.

Neither any Credit Party
nor any of its Subsidiaries is an “enemy” or an “ally of the enemy” within the
meaning of Section 2 of the Trading with the Enemy Act of the United States of
America (50 U.S.C. App. §§ 1 et seq.), as amended.  Neither any Credit Party nor any or its
Subsidiaries is in violation of (a) the Trading with the Enemy Act, as amended,
(b) any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling
legislation or executive order relating thereto or (c) the Patriot Act (as
defined in Section 9.18).  None of the
Credit Parties (i) is a blocked person described in section 1 of the
Anti-Terrorism Order or (ii) to its knowledge, engages in any dealings or
transactions, or is otherwise associated, with any such blocked person.

Section 3.27           Compliance
with OFAC Rules and Regulations.

None
of the Credit Parties or their Subsidiaries or their respective Affiliates (i)
is a Sanctioned Person, (ii) has more than 15% of its assets in Sanctioned
Countries, or (iii) derives more than 15% of its operating income from
investments in, or transactions with Sanctioned Persons or Sanctioned
Countries.  No part of the proceeds of
any Extension of Credit hereunder will be used directly or indirectly to fund
any operations in, finance any investments or activities in or make any
payments to, a Sanctioned Person or a Sanctioned Country.

 62
 

Section 3.28           Compliance
with FCPA.

Each
of the Credit Parties and their Subsidiaries is in compliance with the Foreign
Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et seq., and
any foreign counterpart thereto.  None of
the Credit Parties or their Subsidiaries has made a payment, offering, or
promise to pay, or authorized the payment of, money or anything of value
(a) in order to assist in obtaining or retaining business for or with, or
directing business to, any foreign official, foreign political party, party
official or candidate for foreign political office, (b) to a foreign
official, foreign political party or party official or any candidate for
foreign political office, and (c) with the intent to induce the recipient
to misuse his or her official position to direct business wrongfully to such
Credit Party or its Subsidiary or to any other Person, in violation of the
Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et seq.

ARTICLE
IV

CONDITIONS
PRECEDENT

Section 4.1             Conditions to Closing and Initial
Extensions of Credit.

This Agreement shall
become effective upon, and the obligation of each Lender to make the initial
Extensions of Credit on the Closing Date is subject to, the satisfaction of the
following conditions precedent:

(a)           Execution of Credit
Documents.  The Administrative Agent
shall have received (i) counterparts of this Agreement, (ii) for the account of
each Revolving Lender requesting the same, a Revolving Note, (iii) for the
account of each Term Loan Lender requesting the same, a Term Loan Note (iv) for
the account of the Swingline Lender, the Swingline Note, and (v) counterparts
to the Security Agreement, the Pledge Agreement and each Mortgage Instrument,
in each case conforming to the requirements of this Agreement and executed by a
duly authorized officer of each party thereto, and in each case in form and
substance reasonably satisfactory to the Lenders.

(b)           Authority Documents.  The Administrative Agent shall have received
the following:

(i)            Articles of
Incorporation/Charter Documents. 
Copies of the articles of incorporation or other charter documents, as
applicable, of each Credit Party certified to be true and complete as of a
recent date by the appropriate Governmental Authority of the state of its
incorporation.

(ii)           Resolutions.  Copies of resolutions of the board of
directors of each Credit Party approving and adopting the Credit Documents, the
transactions contemplated therein and authorizing execution and delivery
thereof, certified by a secretary or assistant secretary of such Credit Party
(pursuant to a secretary’s certificate in substantially the form of Schedule 4.1-1
attached hereto) as of the Closing Date to be true and correct and in force and
effect as of such date.

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(iii)          Bylaws/Operating
Agreement.  A copy of the bylaws or
comparable operating agreement of each Credit Party certified by a secretary or
assistant secretary of such Credit Party (pursuant to a secretary’s certificate
in substantially the form of Schedule 4.1-1 attached hereto) as of the
Closing Date to be true and correct and in force and effect as of such date.

(iv)          Good Standing.  Copies of certificates of good standing,
existence or its equivalent with respect to each Credit Party certified as of a
recent date by the appropriate Governmental Authorities of the state of
incorporation or organization and each other state in which the failure to so
qualify and be in good standing could reasonably be expected to have a Material
Adverse Effect on the business or operations of the Credit Parties in such
state.

(v)           Incumbency.  An incumbency certificate of each Credit
Party certified by a secretary or assistant secretary (pursuant to a secretary’s
certificate in substantially the form of Schedule 4.1-1 attached hereto)
to be true and correct as of the Closing Date.

(c)           Legal Opinions of
Counsel.  The Administrative Agent
shall have received opinions of legal counsel (including local counsel to the
extent required by the Administrative Agent) for the Credit Parties, dated the
Closing Date and addressed to the Administrative Agent and the Lenders in form
and substance reasonably acceptable to the Administrative Agent.

(d)           Personal Property
Collateral.  The Administrative Agent
shall have received, in form and substance satisfactory to the Administrative
Agent:

(i)            searches of Uniform
Commercial Code filings in the jurisdiction of the state of incorporation or
organization of each Credit Party and each other jurisdiction deemed necessary
by the Administrative Agent and copies of the financing statements on file in
such jurisdictions;

(ii)           UCC financing
statements for each appropriate jurisdiction as is necessary, in the
Administrative Agent’s sole discretion, to perfect the Administrative Agent’s
security interest in the Collateral;

(iii)          searches of ownership of
Intellectual Property in the appropriate governmental offices and such
patent/trademark/copyright filings as reasonably requested by the
Administrative Agent in order to perfect the Administrative Agent’s security
interest in the Intellectual Property;

(iv)          all stock or membership
certificates, if any, evidencing the Capital Stock pledged to the
Administrative Agent pursuant to the Pledge Agreement, together with duly
executed in blank undated stock or transfer powers attached thereto;

(v)           all instruments and
chattel paper individually in excess of $500,000 in the possession of any of
the Credit Parties, together with allonges or assignments as may be 

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necessary or appropriate to perfect the Administrative
Agent’s security interest in such instruments and chattel paper;

(vi)          with respect to any
Collateral with a fair market value in excess of $500,000 in the aggregate held
by a warehouseman or a bailee, such estoppel letter, consent and waiver from
such warehousemen or bailee as may be required by the Administrative Agent;

(vii)         with respect to the
deposit accounts and securities accounts of the Credit Parties, such control
agreements as may be required pursuant to the terms of Section 5.14; and

(viii)        such other duly executed
agreements or consents as are necessary, in the Administrative Agent’s
reasonable discretion, to perfect the Administrative Agent’s security interest
in the Collateral.

(e)           Liability, Casualty,
Business Interruption and Food Borne Illness Insurance.  The Administrative Agent shall have received
copies of insurance policies or certificates of insurance evidencing liability,
casualty, business interruption and food borne illness insurance meeting the
requirements set forth herein or in the Security Documents.  The Administrative Agent shall be named as
loss payee or mortgagee, as its interest may appear, and/or additional insured
with respect to such insurance, and each provider of any such insurance shall
agree, by endorsement upon the policy or policies issued by it or by
independent instruments furnished to the Administrative Agent, that it will
give the Administrative Agent thirty (30) days prior written notice before any
such policy or policies shall be altered or canceled.

(f)            Fees.  The Administrative Agent and the Lenders
shall have received all fees, if any, owing pursuant to the Engagement Letter
and Section 2.6.

(g)           Litigation.  Except for litigation disclosed on Schedule
3.6, there shall not exist any material litigation, investigation,
bankruptcy or insolvency, injunction, order or claim affecting or relating to
any Credit Party or any of its Subsidiaries or with respect to this Agreement
and the other Credit Documents that has not been settled, dismissed, vacated,
discharged or terminated prior to the Closing Date.

(h)           Solvency Certificate.  The Administrative Agent shall have received
an officer’s certificate prepared by the chief financial officer of the Parent
as to the financial condition, solvency and related matters of the Credit
Parties, taken as a whole, in substantially the form of Schedule 4.1-2
hereto.

(i)            Account Designation
Letter.  The Administrative Agent
shall have received the executed Account Designation Letter in the form of Schedule
1.1-1 hereto.

(j)            Corporate Structure.  The corporate, capital and ownership
structure of the Credit Parties and their Subsidiaries shall be as described in
Schedule 3.12, and shall otherwise be reasonably satisfactory to the
Administrative Agent and the Lenders.

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(k)           Consents.  The Administrative Agent shall have received
evidence that all material governmental, shareholder, board of director and
third party consents and approvals necessary in connection with the financings
and other transactions contemplated hereby have been obtained.

(l)            Compliance
with Laws.  The financings and other
transactions contemplated hereby shall be in compliance with all applicable
laws and regulations (including all applicable securities and banking laws,
rules and regulations).

(m)          Bankruptcy.  There shall be no bankruptcy or insolvency
proceedings with respect to any Credit Party or any of its Subsidiaries.

(n)           Material
Adverse Effect.  No material adverse
change shall have occurred since December 31, 2006 in the business, properties,
operations or financial condition of the Credit Parties and their Subsidiaries
taken as a whole.

(o)           Financial
Statements.  The Administrative Agent
shall have received copies of the financial statements and other financial information
referred to in Section 3.1 hereof, each in form and substance reasonably
satisfactory to it.

(p)           Termination
of Existing Indebtedness.  All
existing Indebtedness for borrowed money of the Credit Parties and their
Subsidiaries (other than the Indebtedness listed on Schedule 6.1(b))
shall have been repaid in full and terminated and all Liens relating thereto
(other than those in favor of the Administrative Agent) shall have been
terminated.

(q)           Officer’s
Certificates.  The Administrative
Agent shall have received a certificate executed by a Responsible Officer of
the Parent as of the Closing Date stating that (i) except as set forth on Schedule
3.6, there is no material pending or, to the knowledge of any Credit Party,
threatened litigation, investigation, bankruptcy or insolvency, injunction,
order or claim affecting or relating to any Credit Party or any of its
Subsidiaries, this Agreement or the other Credit Documents, that has not been
settled, dismissed, vacated, discharged or terminated prior to the Closing Date
and (ii) immediately after giving effect to this Agreement (including the
initial Extensions of Credit hereunder), the other Credit Documents and all the
transactions contemplated therein to occur on such date, (A) no Default or
Event of Default exists, (B) all representations and warranties contained
herein and in the other Credit Documents are true and correct in all material
respects, and (C) the Credit Parties are in compliance with each of the
financial covenants set forth in Section 5.9 for the Reference Period ending as
of April 22, 2007.

(r)            Patriot Act
Certificate.  The Administrative
Agent shall have received a certificate satisfactory thereto, for benefit of
itself and the Lenders, provided by the Borrower that sets forth information
required by the Patriot Act including, without limitation, the identity of the
Borrower, the name and address of the Borrower and other information that will
allow the Administrative Agent or any Lender, as applicable, to identify such
Company in accordance with the Patriot Act.

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(s)           Real Estate
Documents.  The Administrative Agent
shall have received all real estate documents required by the Administrative
Agent pursuant to Section 5.12(c).

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

Section 4.2             Conditions to All Extensions of Credit.

The obligation of each
Lender to make any Extension of Credit (including, without limitation, any
Swingline Loan made pursuant to the Autoborrow Feature) hereunder is subject to
the satisfaction of the following conditions precedent on the date of making
such Extension of Credit:

(a)           Representations
and Warranties.  The representations
and warranties made by the Credit Parties herein, in the Security Documents or
which are contained in any certificate furnished at any time under or in
connection herewith shall be true and correct on and as of the date of such
Extension of Credit as if made on and as of such date, except for
representations and warranties expressly stated to relate to a specific earlier
date.

(b)           No
Default or Event of Default.  No
Default or Event of Default shall have occurred and be continuing on such date
or after giving effect to such Extension of Credit.

(c)           Compliance
with Commitments.  Immediately after
giving effect to the making of any such Extension of Credit (and the
application of the proceeds thereof), (i) the sum of outstanding Revolving
Loans plus outstanding Swingline Loans plus LOC Obligations shall
not exceed the Revolving Committed Amount, (ii) the LOC Obligations shall
not exceed the LOC Committed Amount and
(iii) the Swingline Loans shall not exceed the Swingline Committed
Amount.

(d)           Additional
Conditions to Revolving Loans.  If a
Revolving Loan is requested, all conditions set forth in Section 2.1 shall
have been satisfied.

(e)           Additional
Conditions to Letters of Credit.  If
the issuance of a Letter of Credit is requested, all conditions set forth in
Section 2.3 shall have been satisfied.

(f)            Additional
Conditions to Swingline Loans.  If a
Swingline Loan is requested, all conditions set forth in Section 2.4 shall have
been satisfied.

Each request for an Extension
of Credit (including, without limitation, any Swingline Loan made pursuant to
the Autoborrow Feature, which shall be deemed a request by the Borrower for a
Swingline Loan for purposes of this Section 4.2) and each acceptance by the
Borrower of any such Extension of Credit shall be deemed to constitute
representations and 

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warranties by the Borrower as of the date of such
Extension of Credit that the applicable conditions in paragraphs (a)
through (f) of this Section have been satisfied.

ARTICLE V

AFFIRMATIVE
COVENANTS

The Credit Parties hereby
covenant and agree that on the Closing Date, and thereafter for so long as this
Agreement is in effect and until the Commitments have terminated, no Note
remains outstanding and unpaid and the Credit Party Obligations together with
interest, Commitment Fee and all other amounts owing to the Administrative
Agent or any Lender hereunder, are paid in full, the Credit Parties shall, and
shall cause each of their Subsidiaries (other than in the case of Sections 5.1,
5.2 or 5.7 hereof), to:

Section 5.1             Financial Statements.

Furnish to the
Administrative Agent and each of the Lenders:

(a)           Annual Financial
Statements.  As soon as available,
but in any event within ninety (90) days after the end of each fiscal year of the
Parent, a copy of the consolidated balance sheet of the Parent and its
consolidated Subsidiaries as at the end of such fiscal year and the related
consolidated statements of income and retained earnings and of cash flows of
the Parent and its consolidated Subsidiaries for such year which shall be
audited by a firm of independent certified public accountants of nationally
recognized standing reasonably acceptable to the Administrative Agent, setting
forth in each case in comparative form the figures for the previous year,
reported on without a “going concern” or like qualification or exception, or
qualification indicating that the scope of the audit was inadequate to permit
such independent certified public accountants to certify such financial
statements without such qualification;

(b)           Quarterly Financial
Statements.  As soon as available and
in any event within forty-five (45)  days
after the end of each fiscal quarter of the Parent, a copy of the consolidated
balance sheet of the Parent and its consolidated Subsidiaries as at the end of
such period and related consolidated statements of income and retained earnings
and of cash flows for the Parent and its consolidated Subsidiaries for such
quarterly period and for the portion of the fiscal year ending with such
period, in each case setting forth in comparative form consolidated figures for
the corresponding period or periods of the preceding fiscal year (subject to
normal recurring year-end audit adjustments);

(c)           Officer’s
Certificate.  At the time of delivery
of the financial statements provided for in Sections 5.1(a) and 5.1(b)
above, a certificate of a Responsible Officer of the Parent substantially in
the form of Schedules 5.1(c), (i) demonstrating compliance with the
financial covenants contained in Section 5.9 by calculation thereof as of
the end of each such fiscal period and (iii) stating that no Default or Event
of Default exists, or if any Default or Event of Default does exist, specifying
the nature and extent thereof and what action the Credit Parties propose to
take with respect thereto.

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(d)           Annual Operating
Budget and Cash Flow.  As soon as
available, but in any event within sixty (60) days following the end of each
fiscal year, a copy of the detailed annual operating budget or plan including cash
flow projections of the Parent and its Subsidiaries for the next four fiscal
quarter period prepared on a quarterly basis, in form and detail reasonably
acceptable to the Administrative Agent, together with a summary of the material
assumptions made in the preparation of such annual budget or plan;

all such financial statements to be complete and
correct in all material respects (subject, in the case of interim statements,
to normal recurring year-end audit adjustments) and to be prepared in
reasonable detail and, in the case of the annual and quarterly financial
statements provided in accordance with subsections (a) and (b) above, in
accordance with GAAP applied consistently throughout the periods reflected
therein and further accompanied by a description of, and an estimation of the
effect on the financial statements on account of, a change, if any, in the
application of accounting principles as provided in Section 1.3.

Section 5.2             Certificates; Other Information.

Furnish to the
Administrative Agent and each of the Lenders:

(a)           concurrently with the
delivery of the financial statements referred to in Section 5.1(a) above,
a certificate of the independent certified public accountants reporting on such
financial statements stating that in making the examination necessary therefor
no knowledge was obtained of any Default or Event of Default with respect to
the provisions of Section 5.9, except as specified in such certificate;

(b)           within
ninety (90) days after the end of each fiscal year of the Borrower, a certificate
containing information regarding the amount of all Asset Dispositions, Debt
Issuances, and Equity Issuances that were made during the prior fiscal year and
amounts received in connection with any Recovery Event during the prior fiscal
year;

(c)           promptly upon receipt
thereof, a copy of any other report or “management letter” submitted by
independent accountants to the Borrower or
any of its Subsidiaries in connection with any annual, interim or
special audit of the books of such Person;

(d)           promptly after the same
are sent or upon their becoming available, copies of or access to (i) all
Securities and Exchange Commission reports of the Credit Parties, (ii) all
financial statements, reports, notices and proxy statements sent or made
available by the Credit Parties to their equityholders, (iii) all regular and
periodic reports and all registration statements and prospectuses, if any,
filed by any of the Credit Parties with any securities exchange or with the
Securities and Exchange Commission or any governmental or private regulatory
authority, and (iv) all press releases and other statements made available by
any of the Credit Parties to the public concerning material developments in the
business of any of the Credit Parties;

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(e)           not less than twenty
(20) Business Days prior to the consummation of any Permitted Acquisition with
Total Consideration in excess of $1,000,000, the following information:

(i)            a
reasonably detailed description of the material terms of such Permitted
Acquisition (including, without limitation, the purchase price and method and
structure of payment) and of each Target;

(ii)           audited
(to the extent available) financial statements of the Target for its two (2)
most recent fiscal years prepared by independent certified public accountants
acceptable to the Administrative Agent and unaudited fiscal year-to-date
statements for the two (2) most recent interim periods;

(iii)          consolidated projected income statements of
the Parent and its consolidated Subsidiaries (giving effect to such Permitted
Acquisition and the consolidation with the Parent of each relevant Target) for
the three (3)-year period following the consummation of such Permitted
Acquisition, in reasonable detail, together with any appropriate statement of
assumptions and pro forma adjustments reasonably acceptable to the Required
Lenders;

(iv)          a
certificate, in form and substance reasonably satisfactory to the
Administrative Agent, executed by a Responsible Officer of the Parent (A)
setting forth a good faith estimate of the Total Consideration to be paid for
each Target, (B) certifying that (y) such Permitted Acquisition complies with
the requirements of this Agreement and (z) after giving effect to such
Permitted Acquisition and any borrowings in connection therewith, the Parent
believes in good faith that it will have sufficient availability under the
Revolving Commitments to meet its ongoing working capital requirements and (C)
certifying compliance with clauses (c), (d) and (e) of the definition of the
Permitted Acquisition and demonstrating compliance with clause (b) of the
definition of Permitted Acquisition; and

(v)           any
due diligence reports prepared by, or on behalf of, any Credit Party with
respect to the Target;

provided, that with respect to any
Permitted Acquisition consummated within the first twenty (20) Business Days
following the Closing Date, the delivery of the information required pursuant
to clauses (i)-(v) above on the Closing Date shall satisfy the requirements of
this Section 5.2(e).

(f)            promptly, such additional
financial and other information as the Administrative Agent, or any Lender
through the Administrative Agent, may from time to time reasonably request; and

(g)           concurrently with the
delivery of the financial statements referred to in Section 5.1(b) above,
notice of any acquisition or construction of a new restaurant.

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Section 5.3             Payment of Taxes and Other Obligations.

Pay, discharge or
otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its taxes (Federal, state, local and any other taxes) and
other material obligations and liabilities of whatever nature and any
additional costs that are imposed as a result of any failure to so pay,
discharge or otherwise satisfy such taxes, obligations and liabilities (except
where the failure to pay, discharge or satisfy such obligations and liabilities
(other than taxes) could not reasonably be expected to have a Material Adverse
Effect), except when the amount or validity of any such taxes, obligations and
liabilities is currently being contested in good faith by appropriate
proceedings and reserves, if applicable, in conformity with GAAP with respect
thereto have been provided on the books of the Credit Parties.

Section 5.4             Conduct of Business and Maintenance of
Existence.

Continue to engage in
business of the same general type as conducted by it on the Closing Date;
preserve, renew and keep in full force and effect its existence and good
standing and take all reasonable action to maintain all rights, privileges and
franchises necessary or desirable in the normal conduct of its business and to
maintain its goodwill; comply with all Material Contracts and Requirements of
Law applicable to it except to the extent that failure to comply therewith
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

Section 5.5             Maintenance of Property; Insurance.

(a)           Keep all material
property useful and necessary in its business in good working order and
condition (ordinary wear and tear and obsolescence excepted).

(b)           Maintain with
financially sound and reputable insurance companies (i) insurance on all its
property (including without limitation its tangible Collateral) insuring
against at least such risks as are usually insured against in the same or a
similar business, (ii) liability and food borne illness insurance covering at
least such risks as are usually insured against in the same or a similar
business; and furnish to the Administrative Agent, upon written request, full
information as to the insurance carried. 
The Administrative Agent shall be named as loss payee or mortgagee, as
its interest may appear, or an additional insured, as applicable, with respect
to such insurance policies, and each provider of such insurance policies shall
agree, by endorsement upon the policy or policies issued by it or by
independent instruments furnished to the Administrative Agent, that it will
give the Administrative Agent thirty (30) days prior written notice before any
such policy or policies shall be altered or canceled, and that no act or
default of any Credit Party or any of its Subsidiaries or any other Person
shall affect the rights of the Administrative Agent or the Lenders under such
policy or policies.  The present insurance coverage of the
Credit Parties as of the Closing Date is
outlined as to carrier, policy number, expiration date, type and amount on Schedule 5.5(b).

(c)           In case of any material loss, damage to or
destruction of the Collateral of any Credit Party or any material part thereof,
such Credit Party shall promptly give written notice thereof to the
Administrative Agent generally describing the nature and extent of such damage
or destruction.

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Section 5.6             Inspection of Property; Books and
Records; Discussions.

Keep proper books of
records and accounts in which full, true and correct entries (in all material
respects) shall be made of all dealings and transactions in relation to its
businesses and activities, such entries to be in conformity with GAAP and all
Requirements of Law; and permit, during regular business hours and upon
reasonable notice by the Administrative Agent or any Lender, the Administrative
Agent or any Lender to visit and inspect any of its properties and examine and
make abstracts from any of its books and records at any reasonable time and as
often as may reasonably be desired, and to discuss the business, operations,
properties and financial and other condition of the Credit Parties and their
Subsidiaries with officers and employees of the Credit Parties and with its
independent certified public accountants.

Section 5.7             Notices.

Give notice in writing to
the Administrative Agent (which shall promptly transmit such notice to each
Lender) of:

(a)           promptly,
but in any event within two (2) Business Days after any Credit Party knows
or has reason to know thereof, the occurrence of any Default or Event of
Default;

(b)           promptly,
the occurrence of any default or event of default under any Material Contracts
of any Credit Party or any of its Subsidiaries which could reasonably be
expected to have a Material Adverse Effect or involve a monetary claim in
excess of $5,000,000;

(c)           promptly,
any litigation, or any investigation or proceeding known to any Credit Party
(i) affecting any Credit Party or any of its Subsidiaries which, if adversely
determined, could reasonably be expected to have a Material Adverse Effect or
involve a monetary claim in excess of $5,000,000, (ii) affecting or with
respect to this Agreement or any other Credit Document or (iii) involving an
environmental claim or potential liability under Environmental Laws in excess
of $5,000,000;

(d)           as
soon as possible and in any event within thirty (30) days after any Credit Party knows or has reason to know
thereof: (i) the occurrence or expected occurrence of any Reportable Event
with respect to any Plan, a failure to make any required contribution to a
Plan, the creation of any Lien in favor of the PBGC (other than a Permitted
Lien) or a Plan or any withdrawal from, or the termination, Reorganization or
Insolvency of, any Multiemployer Plan or (ii) the institution of
proceedings or the taking of any other action by the PBGC or any Credit Party
or any Commonly Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the terminating, Reorganization or Insolvency of, any Plan;

(e)           any notice of any
material violation of any Requirement of Law received by any Credit Party or
any of its Subsidiaries from any Governmental Authority including, without
limitation, any notice of material violation of Environmental Laws;

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(f)            any labor controversy
that has resulted in, or threatens to result in, a strike or other work action
against any Credit Party or any of its Subsidiaries which could reasonably be
expected to have a Material Adverse Effect;

(g)           any attachment, judgment,
lien, levy or order exceeding $1,000,000 that may be assessed against any
Credit Party other than Permitted Liens; and

(h)           promptly,
any other development or event which could reasonably be expected to have a
Material Adverse Effect.

Each
notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action the Credit Parties propose to take with respect
thereto.  In the case of any notice of a
Default or Event of Default, the Borrower shall specify that such notice is a
Default or Event of Default notice on the face thereof.

Section 5.8             Environmental Laws.

(a)           Comply in all material
respects with, and take reasonable steps to ensure compliance in all material
respects by all tenants and subtenants, if any, with, all applicable
Environmental Laws and obtain and comply in all material respects with and
maintain, and take reasonable steps to ensure that all tenants and subtenants
obtain and comply in all material respects with and maintain, any and all
licenses, approvals, notifications, registrations or permits required by
applicable Environmental Laws;

(b)           Conduct and complete
all investigations, studies, sampling and testing, and all remedial, removal
and other actions required under Environmental Laws and promptly comply in all
material respects with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws except to the extent that the same are
being contested in good faith by appropriate proceedings and the pendency of
such proceedings could not reasonably be expected to have a Material Adverse
Effect; and

(c)           Defend, indemnify and
hold harmless the Administrative Agent and the Lenders, and their respective
employees, agents, officers and directors, from and against any and all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature known or unknown, contingent or otherwise,
arising out of, or in any way relating to the violation of, noncompliance with
or liability under, any Environmental Law applicable to the operations of the
Credit Parties or any of their Subsidiaries or the Properties, or any orders,
requirements or demands of Governmental Authorities related thereto, including,
without limitation, reasonable attorney’s and consultant’s fees, investigation
and laboratory fees, response costs, court costs and litigation expenses,
except to the extent that any of the foregoing arise out of the gross negligence
or willful misconduct of the party seeking indemnification therefor as
determined by a court of competent jurisdiction in a final and non-appealable
judgment.  The agreements in this
paragraph shall survive repayment of the Credit Party Obligations.

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Section 5.9             Financial Covenants.

Commencing on the
day immediately following the Closing Date, the Credit Parties shall comply
with the following financial covenants:

(a)           Leverage
Ratio.  The Leverage Ratio, as of the
last day of each fiscal quarter of the Parent, shall be less than or equal to
2.50 to 1.0.

(b)           Fixed
Charge Coverage Ratio.  The Fixed
Charge Coverage Ratio, as of the last day of each fiscal quarter of the Parent
shall be greater than or equal to 1.25 to 1.0.

Section 5.10           Additional
Subsidiary Guarantors.

The Credit Parties will
cause each of their Domestic Subsidiaries (other than a Liquor License
Subsidiary), whether newly formed, after acquired or otherwise existing, to
promptly become a Guarantor hereunder by way of execution of a Joinder Agreement.  In connection therewith, the Credit Parties
shall give notice to the Administrative Agent not less than fifteen (15)
days prior to creating a Subsidiary, or acquiring the Capital Stock of any
other Person.  The guaranty obligations
of any such Additional Credit Party shall be secured by, among other things,
the Collateral of the Additional Credit Party and a pledge of 100% of the
Capital Stock of its Domestic Subsidiaries that such Additional Credit Party
owns and 65% (or such higher percentage that would not result in material
adverse tax consequences for such Additional Credit Party) of the voting
Capital Stock and 100% of the non-voting Capital Stock of its first-tier
Foreign Subsidiaries.  In connection with
the foregoing, the Credit Parties shall deliver to the Administrative Agent
such charter and organizational documents and opinions of counsel as the
Administrative Agent may reasonably request.

Section 5.11           Compliance with Law.

Each Credit Party will,
and will cause each of its Subsidiaries to, comply with all laws, rules,
regulations and orders, and all applicable restrictions imposed by all
Governmental Authorities, applicable to it and its property if noncompliance
with any such law, rule, regulation, order or restriction could reasonably be
expected to have a Material Adverse Effect.

Section 5.12           Pledged Assets.

(a)           Each Credit Party will,
and will cause each of its Subsidiaries to, cause 100% of the Capital Stock of
each of its direct or indirect Domestic Subsidiaries that such Credit Party
owns and 65% of the voting Capital Stock and 100% of the non-voting Capital
Stock of each of its first-tier Foreign Subsidiaries that such Credit Party
owns to be subject at all times to a first priority, perfected Lien in favor of
the Administrative Agent pursuant to the terms and conditions of the Security
Documents or such other security documents as the Administrative Agent shall
reasonably request.

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(b)           The Credit Parties have
executed and delivered, or will execute and deliver, to the Administrative
Agent Mortgage Instruments encumbering the real property of the Credit Parties
set forth in Schedule 5.12(b).  Subject
to the limitation set forth in Section 5.12(c), real property acquired or
leased by a Credit Party after the Closing Date shall be subject to the
requirements set forth in this Section 5.12(b). 
If, subsequent to the Closing Date, a Credit Party shall acquire any
owned real property, securities, instruments having a fair market value in
excess of $500,000, chattel paper evidencing obligations in excess of $500,000,
or other personal property having a fair market value in excess of $500,000
required for perfection to be delivered to the Administrative Agent as
Collateral hereunder or under any of the Security Documents or if any owned real
property which has previously been subject to a mortgage or deed of trust in
favor of a third party shall cease to be subject to such encumbrance, the
Borrower shall promptly (and in any event within three (3) Business Days) after
such acquisition or release of encumbrance notify the Administrative Agent of
same.  Each Credit Party shall take such
action at its own expense as may be necessary or otherwise reasonably requested
by the Administrative Agent (including, without limitation, any of the actions
described in Section 4.1(d) hereof) to ensure that the Administrative Agent has
a first priority perfected Lien to secure the Credit Party Obligations in (i)
all Collateral of the Credit Parties located in the United States and (ii) to
the extent deemed to be material by the Administrative Agent in its reasonable
discretion, all other personal property (other than items of Collateral that
are excluded from the Security Documents) or, subject to the terms of Section
5.12(c), owned real property of the Credit Parties (and certain leasehold
property interests if an Event of Default has occurred and is continuing to the
extent deemed necessary by the Administrative Agent), subject in each case only
to Permitted Liens.   Subject to the
terms of Section 5.12(c), with respect to any real property leased by a Credit
Party subsequent to the Closing Date, to the extent requested by the
Administrative Agent, such Credit Party shall use its commercially reasonable
efforts to deliver to the Administrative Agent a landlord waiver in form and
substance reasonably satisfactory to the Administrative Agent.  With respect to any owned or leased real
property of a Credit Party required to be mortgaged to the Administrative Agent
pursuant to this Section 5.12, such Credit Party shall deliver the following
documentation, which in each case shall be in form and substance reasonably
satisfactory to the Administrative Agent:

(A)          a fully executed and
notarized Mortgage Instrument encumbering (1) the fee interest in such real
property or (2) if an Event of Default has occurred and is continuing, the
leasehold interest in such property to the extent deemed necessary by the
Administrative Agent;

(B)           a title report in
respect of such real property;

(C)           a Mortgage Policy in an
amount reasonably satisfactory to the Administrative Agent, which Mortgage
Policy shall provide for affirmative insurance and such reinsurance as the
Administrative Agent may reasonably request;

(D)          evidence as to (1)
whether such real property is a Flood Hazard Property and (2) if such real
property is a Flood Hazard Property, (x) whether the community in which such
real property is located is participating in the National Flood Insurance
Program, (y) the applicable Credit Party’s written acknowledgment of receipt of
written

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notification from the Administrative Agent (I) as to
the fact that such real property is a Flood Hazard Property and (II) as to
whether the community in which each such Flood Hazard Property is located is
participating in the National Flood Insurance Program, and (z) copies of
insurance policies or certificates of insurance of the Credit Parties and their
Subsidiaries evidencing flood insurance reasonably satisfactory to the
Administrative Agent and naming the Administrative Agent as loss payee on
behalf of the Lenders;

(E)           map or plat of an
as-built survey (or, to the extent approved by the Administrative Agent, a
boundary survey) of the site of the real property certified to the
Administrative Agent and the Title Insurance Company issuing the applicable Mortgage
Policy in a manner reasonably satisfactory to them, dated a date reasonably
satisfactory to each of the Administrative Agent and such Title Insurance
Company by an independent professional licensed land surveyor selected by the
Borrower and reasonably satisfactory to each of the Administrative Agent and
such Title Insurance Company, which map or plat and the survey on which they
are based shall be sufficient to delete any standard printed survey exception
contained in the applicable Mortgage Policy and be made in accordance with the
Minimum Standard Detail Requirements for Land Title Surveys jointly established
and adopted by the American Land Title Association and the American Congress on
Surveying and Mapping in 1992, and, without limiting the generality of the
foregoing, there shall be surveyed and shown on such map, plat or survey the
following: (1) the location on such site of all the buildings, structures and
other improvements and the established building setback lines; (2) the lines of
streets abutting the site and width thereof; (3) all access and other easements
appurtenant to the site necessary to use the site; (4) all roadways, paths,
driveways, easements, encroachments and overhanging projections and similar
encumbrances affecting the site, whether recorded, apparent from a physical
inspection of the site or otherwise known to the surveyor; (5) any
encroachments on any adjoining property by the building structures and
improvements on the site; and (6) if the site is described as being on a filed
map, a legend relating the survey to such map;

(F)           an
environmental review of such real property, including but not limited to
Phase I environmental assessments, together with a reliance letter in
favor of the Lenders;

(G)           an
opinion of counsel to the Credit Parties for the jurisdiction in which such
real property located; and

(H)          to
the extent readily available, a zoning letter from the municipality or other
Governmental Authority for the jurisdiction in which the real property is
located.

(c)           Notwithstanding the
foregoing terms of Section 5.12(b), (i) any document required to be delivered
to the Administrative Agent pursuant to this Section 5.12 that is not delivered
on or prior to the Closing Date, shall be delivered to the Administrative Agent
within forty-five (45) days of the Closing Date (or such extended period of
time as agreed to by the Administrative Agent) and (ii) so long as the Leverage
Ratio is less than or equal to 2.00 to 1.00 as of the last fiscal quarter end
for which the Leverage Ratio is reported pursuant to Section 5.1(c), then the
Credit Parties shall not be required to obtain or deliver a Mortgage
Instrument, 

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Mortgage Policy, landlord
waiver or other instrument or documentation referenced in Section 5.12(b) with
respect to any real property leased or acquired by any Credit Party after the
Closing Date; provided that to the extent any real property is leased or
acquired by a Credit Party after the Closing Date with proceeds from a Recovery
Event involving a Mortgaged Property, the Credit Parties shall deliver such
documentation referenced in Section 5.12(b) with respect to such real property.

Section 5.13           Covenants Regarding
Intellectual Property.

(a)           Each Credit Party shall
notify the Administrative Agent promptly if it knows that any application,
letters patent or registration relating to any material Patent or any
registration relating to any material Trademark of such Credit Party or any of
its Subsidiaries may become abandoned, or of any adverse determination or
development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office or any court) regarding such Credit Party’s or any of its
Subsidiary’s ownership of any material Patent or material registered Trademark,
its right to patent or register the same, or to enforce, keep and maintain the
same, or its rights under any material Patent License or material Trademark
License.

(b)           Each Credit Party shall
notify the Administrative Agent promptly after it knows of any final adverse
determination (including, without limitation, any such determination in any
proceeding in any court) regarding any material Copyright of such Credit Party
or any of its Subsidiaries, whereby (i) such material Copyright may become
invalid or unenforceable prior to its expiration or termination, or (ii) such
Credit Party’s or any of its Subsidiary’s ownership of such material Copyright,
its right to register the same or to enforce, keep and maintain the same, or
its rights under such material Copyright, may be adversely affected.

(c)           (i)            Each Credit Party shall promptly notify the
Administrative Agent of any filing by such Credit Party or any of its Domestic
Subsidiaries, either itself or through any agent, employee, licensee or
designee (but in no event later than the fifth Business Day following the last
day of the fiscal quarter in which such filing occurs), of any application for
registration of any Intellectual Property with the United States Copyright Office
or United States Patent and Trademark Office or any similar office or agency in
any other country or any political subdivision thereof, or any new Intellectual
Property acquired or licensed by a Credit Party or any Domestic Subsidiary
thereof.

(ii)           Upon
request of the Administrative Agent, each Credit Party shall execute and
deliver any and all agreements, instruments, documents, and papers as the
Administrative Agent may reasonably request to evidence the Administrative
Agent’s security interest in the Intellectual Property and the general
intangibles (including goodwill) related thereto or represented thereby.

(d)           The Credit Parties and
their Subsidiaries will take all necessary actions, including, without
limitation, in any proceeding before the United States Patent and Trademark
Office or the United States Copyright Office, to maintain the registration of
each material registered Copyright, Patent and Trademark owned by the Credit
Parties and their Subsidiaries, including, 

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without
limitation, payment of maintenance fees, filing of applications for renewal,
affidavits of use, affidavits of incontestability and opposition, interference
and cancellation proceedings.

(e)           In the event that any
Credit Party becomes aware that any Intellectual Property is infringed,
misappropriated or diluted by a third party in any material respect, such
Credit Party shall notify the Administrative Agent promptly after it learns
thereof and shall, unless such Credit Party shall reasonably determine that
such Intellectual Property is not material to the business of such Credit Party
or the Credit Parties and their Subsidiaries taken as a whole, or that taking
legal action will not be financially prudent, promptly take action against such
infringement, misappropriation or dilution to terminate such infringement,
misappropriation or dilution and/or recover any and all damages for such
infringement, misappropriation or dilution, and take such other actions as such
Credit Party shall reasonably deem appropriate under the circumstances to
protect such Intellectual Property.

Section 5.14           Deposit
and Securities Accounts.

The Credit Parties shall
maintain each of their deposit and securities accounts with (a) a Lender or (b)
a financial institution that has entered into an account control agreement in
form and substance reasonably satisfactory to the Administrative Agent; provided
that (i) any account with a financial institution (other than a Lender) that
has an outstanding balance, or contains assets that are valued, at all times
less than $1,000,000 shall not be subject to the requirements of this Section
5.14 and (ii) the outstanding balance of, or the amount of assets in, all
accounts excluded from the requirements of this Section 5.14 shall not exceed
$3,000,000 at any time.

Section 5.15           Further Assurances.

Upon the request of the
Administrative Agent, the Credit Parties shall promptly perform or cause to be
performed any and all acts and execute or cause to be executed any and all
documents which are necessary or advisable to create or maintain in favor of
the Administrative Agent, for the benefit of the Lenders, Liens on all
Collateral of the Credit Parties as may be required by this Agreement or any
Security Document that are duly perfected in accordance with all applicable Requirements
of Law.

ARTICLE
VI

NEGATIVE
COVENANTS

The Credit Parties hereby
covenant and agree that on the Closing Date, and thereafter for so long as this
Agreement is in effect and until the Commitments have terminated, no Note
remains outstanding and unpaid and the Credit Party Obligations together with
interest, Commitment Fee and all other amounts owing to the Administrative
Agent or any Lender hereunder, are paid in full that:

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Section 6.1             Indebtedness.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, contract, create,
incur, assume or permit to exist any Indebtedness, except:

(a)           Indebtedness arising or
existing under this Agreement and the other Credit Documents;

(b)           Indebtedness existing
as of the Closing Date as referenced in the financial statements referenced in
Section 3.1 (and set out more specifically in Schedule 6.1(b))
hereto and renewals, refinancings or extensions thereof in a principal amount
not in excess of that outstanding as of the date of such renewal, refinancing
or extension;

(c)           Indebtedness incurred
after the Closing Date consisting of Capital Leases or Indebtedness incurred to
provide all or a portion of the purchase price of furniture, fixtures and
equipment provided that (i) such Indebtedness when incurred shall not
exceed the purchase price or cost of construction of such furniture, fixtures
and equipment; (ii) no such Indebtedness shall be refinanced for a
principal amount in excess of the principal balance outstanding thereon at the
time of such refinancing; and (iii) the
total amount of all such Indebtedness shall not exceed $15,000,000 at any time
outstanding and renewals, refinancings or extensions thereof in a principal
amount not in excess of that outstanding as of the date of such renewal,
refinancing or extension;

(d)           Unsecured intercompany
Indebtedness among the Credit Parties; provided that any such
Indebtedness shall be fully subordinated to the Credit Party Obligations
hereunder on terms reasonably satisfactory to the Administrative Agent;

(e)           Indebtedness and
obligations owing under Secured Hedging Agreements and other Hedging Agreements
entered into in order to manage existing or anticipated business risks and not
for speculative purposes;

(f)            Indebtedness and
obligations of Credit Parties owing under documentary letters of credit for the
purchase of goods or other merchandise (but not under standby, direct pay or
other letters of credit except for the Letters of Credit hereunder) generally;

(g)           Indebtedness in respect
of Guaranty Obligations to the extent permitted under Section 6.3;

(h)           Indebtedness in respect
of Sale Leaseback Transactions to the extent permitted under Section 6.12;

(i)            performance, surety,
bid, appeal or similar bonds arising in the ordinary course of business;

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(j)            any Indebtedness owing
by any Person prior to such Person becoming a Subsidiary of a Credit Party
pursuant to a Permitted Acquisition; provided that such Indebtedness is not
created in contemplation of such acquisition; and

(k)           other Indebtedness of
the Credit Parties and their Subsidiaries which does not exceed $1,000,000 in
the aggregate at any time outstanding.

Section 6.2             Liens.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, contract, create,
incur, assume or permit to exist any Lien with respect to any of its property
or assets of any kind (whether real or personal, tangible or intangible),
whether now owned or hereafter acquired, except for Permitted Liens.  Notwithstanding the foregoing, if a Credit
Party shall grant a Lien on any of its assets in violation of this Section 6.2,
then it shall be deemed to have simultaneously granted an equal and ratable
Lien on any such assets in favor of the Administrative Agent for the benefit of
the Lenders, to the extent such a Lien has not already been granted to the
Administrative Agent.

Section 6.3             Guaranty
Obligations.

The Credit Parties will
not enter into or otherwise become or be liable in respect of any Guaranty
Obligations (excluding specifically therefrom endorsements in the ordinary
course of business of negotiable instruments for deposit or collection) other
than (a) those in favor of the Lenders in connection herewith, (b) guaranties
given by the Borrower or any of its Subsidiaries in connection with obligations
not constituting Indebtedness, including Permitted Acquisitions, real property
leases and other contracts entered into in the ordinary course of business and
(iii) Guaranty Obligations by the Credit Parties and their Subsidiaries with
respect to Indebtedness permitted under Section 6.1 (except, as regards
Indebtedness under subsection (b) thereof, only if and to the extent such
Indebtedness was guaranteed on the Closing Date).

Section 6.4             Nature of Business.

Except as permitted by
Section 6.5, each of the Credit Parties will not, nor will it permit any
Subsidiary to, alter its business in any material respect from that conducted
as of the Closing Date.

Section 6.5             Consolidation, Merger, Sale or Purchase
of Assets, etc.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to:

(a)           dissolve, liquidate or
wind up its affairs, sell, transfer, lease to a third party or otherwise
dispose of its property or assets or agree to do so at a future time except the
following, without duplication, shall be expressly permitted:

(i)            Specified
Sales;

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(ii)           Sale
Leaseback Transactions to the extent permitted under Section 6.12;

(iii)          the disposition of property or assets as a
result of a Recovery Event;

(iv)          the
sale, lease, transfer or other disposition of (A) machinery, parts and equipment
no longer used or useful in the conduct of the business of the Borrower or any
of its Subsidiaries and (B) property and assets located at or used in
connection with, or which are otherwise associated with, restaurants that are
not material to the business of any Credit Party;

(v)           the
sale, lease or transfer of property or assets between Credit Parties, so long
as the Liens of the Administrative Agent with respect to such property or
assets remain in full force and effect and fully perfected after giving effect
to such transaction;

(vi)          the
dissolution, liquidation or winding up of a Liquor License Subsidiary or any
sale, transfer or other disposition of assets from a Liquor License Subsidiary
to a Credit Party or another Liquor License Subsidiary;

(vii)         the sale, lease or transfer of the properties
set forth on Schedule 2.8(b)(ii), and

(viii)        the sale, lease or transfer of property or
assets not to exceed $2,000,000 in the aggregate in any fiscal year and
$10,000,000 in the aggregate during the term of this Agreement;

provided,
that in each case (other than with respect to clause (v) above and dispositions
of assets of a restaurant in connection with a refinishing, refurnishing or
upgrade of such restaurant for consideration less than $100,000 in the aggregate
per restaurant) (A) at least 75% of the consideration received therefor by any
Credit Party or any such Subsidiary shall be in the form of cash or Cash
Equivalents, (B) after giving effect to the sale, lease, transfer or other
disposition of such property or assets and the repayment of Indebtedness (if
any) with the proceeds thereof, the Credit Parties shall be in compliance on a
Pro Forma Basis with the financial covenants set forth in Section 5.9 hereof
and shall be in compliance with all other terms and conditions of this
Agreement, and (C) no Event of Default shall exist or shall result from such
sale, lease, transfer or other disposition of property or assets; provided,
further, that with respect to any sale or transfer of property or assets
permitted hereunder to an unrelated third party, the Administrative Agent shall
be entitled, without the consent of the Lenders or the Required Lenders, to
release its Liens relating to the particular property or assets sold; or

(b)           (i)  purchase, lease or otherwise acquire (in a
single transaction or a series of related transactions) all or substantially
all of the property or assets or a majority of the Voting Stock of any Person
(other than purchases or other acquisitions of inventory, 

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goods, materials,
property and equipment in the ordinary course of business, except as otherwise
limited or prohibited herein) or (ii) enter into any transaction of merger or
consolidation, except for (A) Permitted Acquisitions, (B) investments or
acquisitions permitted pursuant to Section 6.6, and (C) the merger or
consolidation of a Credit Party with and into another Credit Party; provided
that if the Borrower is a party thereto, the Borrower will be the surviving
corporation.

Section 6.6             Advances, Investments and Loans.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, lend money or extend
credit or make advances to any Person, or purchase or acquire any Capital
Stock, obligations or securities of, or any other interest in, or make any
capital contribution to, any Person except for Permitted Investments.

Section 6.7             Transactions with Affiliates.

Except as permitted in
subsection (iv), subsection (ix) or subsection (x) of the definition of
Permitted Investments or as permitted under Section 6.11, each of the Credit
Parties will not, nor will it permit any Subsidiary to, enter into any
transaction or series of transactions, whether or not in the ordinary course of
business, with any officer, director, shareholder or Affiliate other than on
terms and conditions substantially as favorable as would be obtainable in a
comparable arm’s-length transaction with a Person other than an officer,
director, shareholder or Affiliate.

Section 6.8             Ownership of Subsidiaries; Restrictions.

Each of the Credit Parties will not, nor will it
permit any Subsidiary to, create, form or acquire any Subsidiaries, except for
(i) wholly-owned Domestic Subsidiaries which are joined as Additional Credit
Parties in accordance with the terms hereof and (ii) Liquor License
Subsidiaries.  Each of the Credit Parties
will not, nor will it permit any Subsidiary to, sell, transfer, pledge or
otherwise dispose of any Capital Stock or other equity interests in any of its
Subsidiaries, nor will it, or permit any Subsidiary to, issue, sell, transfer,
pledge or otherwise dispose of any of its Capital Stock or other equity
interests, except as required by the Credit Documents or pursuant to a
transaction permitted by this Agreement.

Section 6.9             Fiscal Year; Organizational Documents;
Material Contracts.

Each of the Credit
Parties will not, nor will it permit any of its Subsidiaries to, change its
fiscal year. Each of the Credit Parties will not, nor will they permit any of
its Subsidiaries to, amend, modify or change their articles of incorporation
(or corporate charter or other similar organizational document), operating
agreement or bylaws (or other similar document) in any material respect without
the prior written consent of the Required Lenders. Each of the Credit Parties
will not, nor will it permit any of its Subsidiaries to, without the prior written consent of the Administrative Agent,
amend, modify, cancel or terminate or fail to renew or extend or permit the
amendment, modification, cancellation or termination of any of the Material
Contracts (other than in the ordinary course of business), except in the event
that such amendments, 

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modifications,
cancellations or terminations could not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

Section 6.10           Limitation on
Restricted Actions.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, directly or indirectly,
create or otherwise cause or suffer to exist or become effective any
encumbrance or restriction on the ability of any such Person to (a) pay dividends or make any other
distributions to any Credit Party on its Capital Stock or with respect to any
other interest or participation in, or measured by, its profits, (b) pay any Indebtedness or other
obligation owed to any Credit Party,
(c) make loans or advances to any Credit Party, (d) sell, lease or transfer any of
its properties or assets to any Credit Party, or (e) act as a Guarantor and pledge its assets pursuant to
the Credit Documents or any renewals, refinancings, exchanges, refundings or
extension thereof, except (in respect of any of the matters referred to in
clauses (a)-(d) above) for such encumbrances or restrictions
existing under or by reason of (i) this Agreement and the other Credit
Documents, (ii) applicable law,  (iii) any document or instrument governing Indebtedness
maintained pursuant to Section 6.1(b) or incurred pursuant to
Section 6.1(c), provided that any such restriction contained
therein relates only to the asset or assets constructed or acquired in connection
therewith or (iv) any Permitted
Lien or any document or instrument governing any Permitted Lien, provided
that any such restriction contained therein relates only to the asset or assets
subject to such Permitted Lien.

Section 6.11           Restricted Payments.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, directly or indirectly,
declare, order, make or set apart any sum for or pay any Restricted Payment,
except (a) to make dividends payable solely in the common stock or equivalent
equity interests of such Person, (b) to make dividends or other
distributions payable to any Credit Party (directly or indirectly through
Subsidiaries), (c) so long as no Default or Event of Default shall have
occurred and be continuing, the Parent may redeem and/or repurchase shares of
its Capital Stock so long as there is at least $20,000,000 of Accessible
Borrowing Availability after giving effect thereto, and (d) so long as no
Default or Event of Default shall have occurred and be continuing, the Parent
may redeem and/or repurchase shares of its Capital Stock pursuant to the terms
of any employment agreement of any officer or director of the Parent or any
Subsidiary in an aggregate amount not to exceed $500,000 in cash during the
term of this Agreement.

Section 6.12           Sale Leasebacks.

No Credit Party will, directly or indirectly, (i) sell
or transfer any property (whether real, personal or mixed and whether now owned
or hereafter acquired) to a Person that is not a Credit Party (for purposes of
this Section 6.12, the “Sale Leaseback Property”) and then (ii) promptly
lease (whether as an Operating Lease or a Capital Lease), or guaranty a lease
of, the Sale Leaseback Property and use the Sale Leaseback Property for
substantially the same purpose in existence prior to the sale or transfer (any
such transaction, a “Sale Leaseback Transaction”); provided, however,
that Sale Leaseback Transactions shall be permitted so long as such Sale 

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Leaseback Transactions do not exceed an aggregate amount of $4,000,000
during any fiscal year or an aggregate amount of $20,000,000 during the term of
this Agreement.

Section 6.13           No Further Negative
Pledges.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, enter into, assume or
become subject to any agreement prohibiting or otherwise restricting the
creation or assumption of any Lien upon its properties or assets, whether now
owned or hereafter acquired, or requiring the grant of any security to secure
obligations under such agreement if security is given for some other
obligation, except (a) pursuant
to this Agreement and the other Credit Documents, (b) pursuant to any document or instrument governing
Indebtedness incurred pursuant to Section 6.1(c), provided that any
such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, and (c) in connection with any Permitted Lien or any document
or instrument governing any Permitted Lien, provided that any such
restriction contained therein relates only to the asset or assets subject to
such Permitted Lien.

Section 6.14           Amendments to
Subordinated Debt, etc.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, after the issuance
thereof, amend or modify (or permit the amendment or modification of) any of
the terms of any Subordinated Debt of such Credit Party or Subsidiary if such
amendment or modification would add or change any terms in a manner adverse to
the Lenders, or shorten the final maturity or average life to maturity or require
any payment to be made sooner than originally scheduled or increase the
interest rate applicable thereto or change any subordination provision thereof.

Section 6.15           Management Fees.

Each of the Credit
Parties will not, nor will it permit any Subsidiary to, directly or indirectly,
pay any management, consulting or similar fees to any Affiliate or to any
manager, director, officer or employee of the Credit Parties or any of their
Subsidiaries, other than those payments included in the corporate overhead of
the Parent or any Subsidiary or other payments made in the ordinary course of
business without the prior written consent of the Required Lenders.

Section 6.16           Parent
Holding Company/Liquor License Subsidiaries.

The
Parent shall not engage in any activities or operations whatsoever, other than
(a) general administrative and other functions required by law, (b) owning all
of the Capital Stock of the Borrower, (c) guaranteeing the Credit Party
Obligations pursuant to the terms of this Agreement and the other Credit
Documents and performing its obligations hereunder and thereunder and (d) those
activities or operations that are necessary or appropriate to comply with
Requirements of Law or to comply with the rules and regulations of NASDAQ or
any other national securities exchange or any other securities regulatory
authority.  None of the Liquor License
Subsidiaries shall engage in any activities or operations whatsoever, other
than (i)

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general
administrative and other functions required by law and (ii) owning their
respective liquor licenses and other activities or operations incidental
thereto.

ARTICLE
VII

EVENTS OF
DEFAULT

Section 7.1             Events
of Default.

An Event of
Default shall exist upon the occurrence of any of the following specified
events (each an “Event of Default”):

(a)           The
Borrower shall fail to pay any principal on any Loan when due (whether at
maturity, by reason of acceleration or otherwise) in accordance with the terms
hereof; or the Borrower shall fail to reimburse the Issuing Lender for any LOC Obligations
when due (whether at maturity, by reason of acceleration or otherwise) in
accordance with the terms hereof; or the Borrower shall fail to pay any
interest on any Loan or other Credit Party Obligation or any fee or other
amount payable hereunder when due (whether at maturity, by reason of
acceleration or otherwise) in accordance with the terms hereof and such failure
to pay shall continue unremedied for three (3) Business Days; or any Guarantor
shall fail to pay on the Guaranty in respect of any of the foregoing or in
respect of any other Guaranty Obligations hereunder; or

(b)           Any
representation or warranty of a Credit Party made or deemed made herein, in the
Security Documents or in any of the other Credit Documents or which is
contained in any certificate, document or financial statement furnished at any
time under or in connection with this Agreement provided by a Responsible
Officer shall prove to have been incorrect, false or misleading in any material
respect on or as of the date made or deemed made; or

(c)           (i) Any
Credit Party shall fail to perform, comply with or observe any term, covenant
or agreement applicable to it contained in Sections 5.1, 5.2, 5.4 (with respect
to conduct of its business and maintenance of a Credit Party’s existence), 5.6
(with respect to inspections), 5.7 (with respect to notice of a Default or
Event of Default) or 5.9 or Article VI hereof; or (ii) any Credit
Party shall fail to comply with any other covenant, contained in this Agreement
or the other Credit Documents (other than as described in Sections 7.1(a) or
7.1(c)(i) above), and in the event such breach or failure to comply is capable
of cure, is not cured within the time prescribed therein, or to the extent not
prescribed therein, within thirty (30) days of its occurrence; or

(d)           Any
Credit Party or any of its Subsidiaries shall (i) default in any payment
of principal of or interest on any Indebtedness (other than the Indebtedness
hereunder) in a principal amount outstanding of at least $1,000,000 in the
aggregate for the Credit Parties and their Subsidiaries beyond the period of
grace (not to exceed 30 days),
if any, provided in the instrument or agreement under which such Indebtedness
was created; or 

 85
 

(ii) default
in the observance or performance of any other agreement or condition relating
to any Indebtedness (other than the Indebtedness hereunder) in a principal
amount outstanding of at least  $1,000,000 in
the aggregate for the Credit Parties and their Subsidiaries or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event shall occur or condition exist, the effect of which default or other
event or condition is to cause, or to permit the holder or holders of such
Indebtedness or beneficiary or beneficiaries of such Indebtedness (or a trustee
or agent on behalf of such holder or holders or beneficiary or beneficiaries)
to cause, with the giving of notice if required, such Indebtedness to become
due prior to its stated maturity; or (iii) default any Secured Hedging Agreement,
the effect of which default is to cause or permit the counterparty thereto to
declare an event of default or termination event, as defined therein; or

(e)           (i) Any
Credit Party or any of its Subsidiaries shall commence any case, proceeding or
other action (A) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or
seeking to have it judged bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar
official for it or for all or any substantial part of its assets, or any Credit
Party or any of its Subsidiaries shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against any
Credit Party or any of its Subsidiaries any case, proceeding or other action of
a nature referred to in clause (i) above which (A) results in the entry of
an order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of 60 days; or  (iii) there shall be commenced against any Credit Party or
any of its Subsidiaries any case, proceeding or other action seeking issuance
of a warrant of attachment, execution, distraint or similar process against all
or any substantial part of their assets which results in the entry of an order
for any such relief which shall not have been vacated, discharged, or stayed or
bonded pending appeal within 60 days
from the entry thereof; or (iv) any
Credit Party or any of its Subsidiaries shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the acts set forth in clause (i), (ii), or (iii) above; or  (v) any Credit Party or any of its Subsidiaries shall
generally not, or shall be unable to, or shall admit in writing its inability
to, pay its debts as they become due; or

(f)            One
or more judgments, orders, decrees or arbitration awards shall be entered
against any Credit Party or any of its Subsidiaries involving in the aggregate
a liability (to the extent not covered by third-party insurance with respect to
which coverage has not been disputed by the insurer for a period in excess of
ninety (90) days; provided however that such ninety (90) day period shall no
longer be in effect to the extent that any such judgment, order, decree or
arbitration award shall be executed upon at any time during such period by the
holder thereof) of $1,000,000  or more and
all such judgments, orders, decrees or arbitration awards shall not have been
paid and satisfied, vacated, discharged, stayed or bonded pending appeal within
10 Business Days from the entry
thereof or any injunction, temporary restraining order or similar decree shall
be 

 86
 

issued against any
Credit Party or any of its Subsidiaries that could reasonably be expected to
result in a Material Adverse Effect; or

(g)           (i) Any
Person shall engage in any “prohibited transaction” (as defined in
Section 406 of ERISA or Section 4975 of the Code) involving any Plan,
(ii) any “accumulated funding deficiency” (as defined in Section 302
of ERISA), whether or not waived, shall exist with respect to any Plan or any
Lien in favor of the PBGC or a Plan (other than a Permitted Lien) shall arise
on the assets of any Credit Party, any of its Subsidiaries or any Commonly Controlled
Entity,  (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a Trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any
Single Employer Plan shall terminate for purposes of Title IV of ERISA,  (v) any Credit Party, any of its Subsidiaries or any
Commonly Controlled Entity shall, or in the reasonable opinion of the Required
Lenders is likely to, incur any liability in connection with a withdrawal from,
or the Insolvency or Reorganization of, any Multiemployer Plan or  (vi) any other
similar event or condition shall occur or exist with respect to a Plan; and in
each case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, could have a
Material Adverse Effect; or

(h)           There
shall occur a Change of Control; or

(i)            The
Guaranty or any provision thereof for any reason shall cease to be in full
force and effect or any Guarantor or any Person acting by or on behalf of any
Guarantor shall deny or disaffirm any Guarantor’s obligations under the
Guaranty; or

(j)            Any
other Credit Document shall fail to be in full force and effect or to give the
Administrative Agent and/or the Lenders the security interests, liens, rights,
powers and privileges purported to be created thereby in any material respect
(except as such documents may be terminated or no longer in force and effect in
accordance with the terms thereof, other than those indemnities and provisions
which by their terms shall survive) or any Lien shall fail to be perfected on a
material portion of the Collateral; or

(k)           Any
uninsured damage to or loss, theft or destruction of any assets of any Credit
Party or any of its Subsidiaries shall occur that is in excess of $3,000,000.

Section 7.2             Acceleration; Remedies.

Upon the occurrence and
during the continuation of an Event of Default, then, (a) if such event is an Event of Default specified in
Section 7.1(e) above, automatically the Commitments shall immediately
terminate and the Loans (with accrued interest thereon), and all other Credit
Party Obligations under the Credit Documents (including without limitation the
maximum amount of all contingent liabilities under Letters of Credit) shall
immediately become due and payable, and the Borrower shall immediately pay to
the Administrative Agent cash collateral as 

 87
 

security for the LOC Obligations for subsequent
drawings under then outstanding Letters of Credit in an amount equal to the
maximum amount which may be drawn under Letters of Credit then outstanding and (b) if such event is any other Event
of Default, any of the following actions may be taken:  with the written consent of the Required
Lenders, the Administrative Agent may, or upon the written request of the
Required Lenders, the Administrative Agent shall, (i) by notice to the Borrower
declare all or any portion of the Commitments to be terminated forthwith,
whereupon such Commitments shall immediately terminate, (ii) by notice of
default to the Borrower, declare the Loans (with accrued interest thereon) and
all other Credit Party Obligations under the Credit Documents (including
without limitation the maximum amount of all contingent liabilities under
Letters of Credit) to be due and payable forthwith and direct the Borrower to
pay to the Administrative Agent cash collateral as security for the LOC
Obligations for subsequent drawings under then outstanding Letters of Credit an
amount equal to the maximum amount of which may be drawn under Letters of
Credit then outstanding, whereupon the same shall immediately become due and
payable, (iii) hire, at the expense of the Credit Parties, one or more
consultants and the Credit Parties agree to cooperate with such consultants,
(iv) exercise any rights or remedies of the Administrative Agent or the Lenders
under this Agreement or any other Credit Document, including, without
limitation, any rights or remedies with respect to the Collateral, and (v)
exercise any rights or remedies available to the Administrative Agent or
Lenders under applicable law.

ARTICLE
VIII

THE AGENT

Section 8.1             Appointment.

Each Lender hereby
irrevocably designates and appoints Wachovia as the Administrative Agent of
such Lender under this Agreement, and each such Lender irrevocably authorizes
Wachovia, as the Administrative Agent for such Lender, to take such action on
its behalf under the provisions of this Agreement and to exercise such powers
and perform such duties as are expressly delegated to the Administrative Agent
by the terms of this Agreement, together with such other powers as are
reasonably incidental thereto. 
Notwithstanding any provision to the contrary elsewhere in this
Agreement, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary relationship
with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or otherwise exist
against the Administrative Agent.

Section 8.2             Delegation of Duties.

The Administrative Agent
may execute any of its duties under this Agreement by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care. 
Without limiting the foregoing, the Administrative Agent may appoint one
of its affiliates as its agent to perform its the functions of the
Administrative Agent hereunder relating to the 

 88
 

advancing of funds to the Borrower and distribution of
funds to the Lenders and to perform such other related functions of the
Administrative Agent hereunder as are reasonably incidental to such functions.

Section 8.3             Exculpatory Provisions.

Neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement (except for its or such Person’s own gross
negligence or willful misconduct) or (ii) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made
by the Borrower or any officer thereof contained in this Agreement or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Administrative Agent under or in connection with, this
Agreement or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of any of the Credit Documents or for any failure of the
Borrower to perform their obligations hereunder or thereunder.  The Administrative Agent shall not be under
any obligation to any Lender to ascertain or to inquire as to the observance or
performance by the Borrower of any of the agreements contained in, or
conditions of, this Agreement, or to inspect the properties, books or records
of the Borrower.

Section 8.4             Reliance by Administrative Agent.

The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
Note, writing, resolution, notice, consent, certificate, affidavit, letter,
cablegram, telegram, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it in good faith to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including, without limitation,
counsel to the Borrower), independent accountants and other experts selected by
the Administrative Agent.  The
Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless (a) a
written notice of assignment, negotiation or transfer thereof shall have been filed
with the Administrative Agent and (b) the
Administrative Agent shall have received the written agreement of such assignee
to be bound hereby as fully and to the same extent as if such assignee were an
original Lender party hereto, in each case in form satisfactory to the
Administrative Agent.  The Administrative
Agent shall be fully justified in failing or refusing to take any action under
this Agreement unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate or it shall first be indemnified to
its satisfaction by the Lenders against any and all liability and expense which
may be incurred by it by reason of taking or continuing to take any such
action.  The Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
any of the Credit Documents in accordance with a request of the Required
Lenders or all of the Lenders, as may be required under this Agreement, and
such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Notes.

 89
 

Section 8.5             Notice of Default.

The Administrative Agent
shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default hereunder unless the Administrative Agent has
received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice
of default”.  In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall
give prompt notice thereof to the Lenders. 
The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required
Lenders; provided, however, that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders except to the extent
that this Agreement expressly requires that such action be taken, or not taken,
only with the consent or upon the authorization of the Required Lenders, or all
of the Lenders, as the case may be.

Section 8.6             Non-Reliance on Administrative
Agent and Other Lenders.

Each Lender expressly
acknowledges that neither the Administrative Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates has
made any representation or warranty to it and that no act by the Administrative
Agent hereinafter taken, including any review of the affairs of the Borrower,
shall be deemed to constitute any representation or warranty by the
Administrative Agent to any Lender.  Each
Lender represents to the Administrative Agent that it has, independently and
without reliance upon the Administrative Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and made its
own decision to make its Loans hereunder and enter into this Agreement.  Each Lender also represents that it will,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and decisions in taking or not taking action under this Agreement, and to make
such investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Borrower.  Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of the Borrower which may come
into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates.

Section 8.7             Indemnification.

The Lenders agree to
indemnify the Administrative Agent in its capacity hereunder (to the extent not
reimbursed by the Borrower and without limiting the obligation of the Borrower
to do so), ratably according to their respective Revolving Commitment
Percentages in effect on the date on which indemnification is sought under this
Section, from and against any and all

 90

liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without limitation, at any time
following the payment of the Notes) be imposed on, incurred by or asserted
against the Administrative Agent in any way relating to or arising out of any
Credit Document or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by the Administrative Agent under or in connection with any of the
foregoing; provided, however, that no Lender shall be liable for
the payment of any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements to the
extent resulting from the Administrative Agent’s gross negligence or willful
misconduct, as determined by a court of competent jurisdiction.  The agreements in this Section 8.7 shall
survive the termination of this Agreement and payment of the Notes and all
other amounts payable hereunder.

Section 8.8             Administrative
Agent in Its Individual Capacity.

The Administrative Agent
and its affiliates may make loans to, accept deposits from and generally engage
in any kind of business with the Borrower as though the Administrative Agent
were not the Administrative Agent hereunder. 
With respect to its Loans made or renewed by it and any Note issued to
it, the Administrative Agent shall have the same rights and powers under this
Agreement as any Lender and may exercise the same as though it were not the
Administrative Agent, and the terms “Lender” and “Lenders” shall include the
Administrative Agent in its individual capacity.

Section 8.9             Successor
Administrative Agent.

The Administrative Agent
may resign as Administrative Agent upon 30 days’
prior notice to the Borrower and the Lenders. 
If the Administrative Agent shall resign as Administrative Agent under
this Agreement and the Notes, then the Required Lenders shall appoint from
among the Lenders a successor agent for the Lenders, which successor agent
shall be approved by the Borrower with such approval not to be unreasonably
withheld (provided, however if an Event of Default shall exist at such time, no
approval of the Borrower shall be required hereunder), whereupon such successor
agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term “Administrative Agent” shall mean such successor agent
effective upon such appointment and approval, and the former Administrative
Agent’s rights, powers and duties as Administrative Agent shall be terminated,
without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Agreement or any holders of
the Notes.  After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of
this Section 8.9 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this Agreement.

Section 8.10           Nature
of Duties.

Except as otherwise
expressly stated herein, any agent (other than the Administrative Agent) listed
from time to time on the cover page of this Agreement shall have no
obligations, responsibilities or duties under this Agreement or under any other
Credit Document other than obligations, responsibilities and duties applicable
to all Lenders in their capacity as Lenders; 

 91
 

provided, however,
that such agents shall be entitled to the same rights, protections,
exculpations and indemnifications granted to the Administrative Agent under
this Article VIII in their capacity as an agent.

ARTICLE IX

MISCELLANEOUS

Section 9.1             Amendments,
Waivers and Release of Collateral.

Neither this Agreement,
nor any of the Notes, nor any of the other Credit Documents, nor any terms
hereof or thereof may be amended, supplemented, waived or modified except in
accordance with the provisions of this Section nor may be released except as
specifically provided herein or in the Security Documents or in accordance with
the provisions of this Section 9.1. 
The Required Lenders may, or, with the written consent of the Required
Lenders, the Administrative Agent may, from time to time, (a) enter into
with the Borrower written amendments, supplements or modifications hereto and
to the other Credit Documents for the purpose of adding any provisions to this
Agreement or the other Credit Documents or changing in any manner the rights of
the Lenders or of the Borrower hereunder or thereunder or (b) waive, on such terms and
conditions as the Required Lenders may specify in such instrument, any of the
requirements of this Agreement or the other Credit Documents or any Default or
Event of Default and its consequences; provided, however, that no
such waiver and no such amendment, waiver, supplement, modification or release
shall:

(i)            (A)
reduce the amount or extend the scheduled date of maturity of any Loan or Note
or any installment thereon or waive any payment default, (B) extend the
expiration date of a Letter of Credit beyond the Maturity Date, (C) reduce the
stated rate of any interest or fee payable hereunder (other than interest at
the increased post-default rate) or extend the scheduled date of any
payment thereof, or (D) increase the amount or extend the expiration date of
any Lender’s Commitment, in each case without the written consent of each
Lender directly affected thereby, or

(ii)           amend,
modify or waive any provision of Section 2.12, Section 2.17, this
Section 9.1 or change the percentage specified in the definition of
Required Lenders, without the written consent of all the Lenders, or

(iii)          amend, modify or waive any provision of
Article VIII without the written consent of the then Administrative Agent,
or

(iv)          release
the Parent or the Borrower from its obligations under the Credit Documents or
any material Guarantor from its obligations under the Guaranty, without the
written consent of all of the Lenders, or

(v)           release
all or any material portion of the Collateral, without the written consent of
all of the Lenders and any Hedging Agreement Provider, or

 92
 

(vi)          amend
the definitions of “Hedging Agreement,” “Secured Hedging Agreement,” or “Hedging
Agreement Provider” without the consent of any Hedging Agreement Provider that
would be adversely affected thereby; or

(vii)         amend, modify or waive any provision of the
Credit Documents requiring consent, approval or request of the Required Lenders
or all Lenders, without the written consent of all of the Required Lenders or
Lenders as appropriate and, provided, further, that no amendment,
waiver or consent affecting the rights or duties of the Administrative Agent or
the Issuing Lender under any Credit Document shall in any event be effective,
unless in writing and signed by the Administrative Agent and/or the Issuing Lender,
as applicable, in addition to the Lenders required hereinabove to take such
action.

Any such waiver, any such
amendment, supplement or modification and any such release shall apply equally
to each of the Lenders and shall be binding upon the Borrower, the other Credit
Parties, the Lenders, the Issuing Lender, the Administrative Agent and all
future holders of the Notes.  In the case
of any waiver, the Borrower, the other Credit Parties, the Lenders, the Issuing
Lender and the Administrative Agent shall be restored to their former position
and rights hereunder and under the outstanding Loans and Notes and other Credit
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default, or impair any right consequent thereon.

Notwithstanding any of
the foregoing to the contrary, the consent of the Borrower shall not be
required for any amendment, modification or waiver of the provisions of
Article VIII (other than the provisions of Section 8.9); provided,
however, that the Administrative Agent will provide written notice to the
Borrower of any such amendment, modification or waiver.  In addition, the Borrower and the Lenders
hereby authorize the Administrative Agent to modify this Agreement by
unilaterally amending or supplementing Schedule 2.1(a) and Section
9.2 from time to time in the manner requested by the Borrower, the
Administrative Agent or any Lender in order to reflect any assignments or
transfers of the Loans as provided for hereunder; provided, however,
that the Administrative Agent shall promptly deliver a copy of any such
modification to the Borrower and each Lender.

Notwithstanding
the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (x) each Lender is entitled to vote as such
Lender sees fit on any bankruptcy reorganization plan that affects the Loans,
and each Lender acknowledges that the provisions of Section 1126(c) of the
Bankruptcy Code supersedes the unanimous consent provisions set forth herein
and (y) the Required Lenders may consent to allow a Credit Party to use cash
collateral in the context of a bankruptcy or insolvency proceeding.

Section 9.2             Notices.

Except as otherwise
provided in Article II, all notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, 

 93
 

unless otherwise expressly provided herein, shall be
deemed to have been duly given or made
(a) when delivered by hand,
(b) when transmitted via telecopy (or other facsimile device) to
the number set out herein, (c) the
Business Day immediately following the day on which the same has been delivered
prepaid (or pursuant to an invoice arrangement) to a reputable national
overnight air courier service, or (d) the
third Business Day following the day on which the same is sent by certified or
registered mail, postage prepaid, in each case, addressed as follows in the
case of the Borrower, the other Credit Parties and the Administrative Agent,
and, with respect to each Lender, as set forth in such Lender’s Administrative
Details Form, or to such other address as may be hereafter notified by the
respective parties hereto and any future holders of the Notes:

	
  The Borrower

  	
   

  	
  Red Robin International, Inc.

  
	
  and the other

  	
   

  	
  6312 S. Fiddler’s Green Circle

  
	
  Credit Parties:

  	
   

  	
  Suite 200 North

  
	
   

  	
   

  	
  Greenwood
  Village, CO 80111

  
	
   

  	
   

  	
  Attention: Annita Menogan, Senior Vice
  President, Secretary and 

  
	
   

  	
   

  	
  Chief Legal
  Officer

  
	
   

  	
   

  	
  Telecopier:
  (303) 846-6067

  
	
   

  	
   

  	
  Telephone: (303)
  846-6034

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
  Davis Graham
  & Stubbs LLP

  
	
   

  	
   

  	
  1550 17th Street, Suite 500

  
	
   

  	
   

  	
  Denver, CO 80202

  
	
   

  	
   

  	
  Attention: Joel
  Benson, Esq.

  
	
   

  	
   

  	
  Telecopier:
  (303) 892-7470

  
	
   

  	
   

  	
  Telephone: (303)
  893-1379

  
	
   

  	
   

  	
   

  
	
  The
  Administrative

  	
   

  	
  Wachovia Bank, National Association, as
  Administrative Agent

  
	
  Agent:

  	
   

  	
  Charlotte Plaza

  
	
   

  	
   

  	
  201 South
  College Street, CP-8

  
	
   

  	
   

  	
  Charlotte, North
  Carolina 28288-0680

  
	
   

  	
   

  	
  Attention: Syndication
  Agency Services

  
	
   

  	
   

  	
  Telecopier:
  (704) 383-0288

  
	
   

  	
   

  	
  Telephone: (704)
  383-3721

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wachovia Bank,
  National Association

  
	
   

  	
   

  	
  One South Broad
  Street, PA4830

  
	
   

  	
   

  	
  Philadelphia,
  Pennsylvania 19107

  
	
   

  	
   

  	
  Attention: Denis Waltrich

  
	
   

  	
   

  	
  Telecopier:
  (267) 321-6713

  
	
   

  	
   

  	
  Telephone: (267)
  321-6700

  

 

 94
 

Section 9.3             No
Waiver; Cumulative Remedies.

No failure to exercise
and no delay in exercising, on the part of the Administrative Agent or any
Lender, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

Section 9.4             Survival
of Representations and Warranties.

All representations and
warranties made hereunder and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution
and delivery of this Agreement and the Notes and the making of the Loans, provided
that all such representations and warranties shall terminate on the date upon
which the Commitments have been terminated and all amounts owing hereunder and
under any Notes have been paid in full.

Section 9.5             Payment
of Expenses and Taxes.

The Borrower agrees (a) to pay or reimburse each Lender
and the Administrative Agent for all its reasonable out-of-pocket
costs and expenses incurred in connection with the development, preparation,
negotiation, printing and execution of, and any amendment, supplement or
modification to, this Agreement and the other Credit Documents and any other
documents prepared in connection herewith or therewith, and the consummation
and administration of the transactions contemplated hereby and thereby,
together with the reasonable fees and disbursements of counsel to each Lender
and the Administrative Agent, (b) to
pay or reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in connection with the enforcement or preservation of any
rights under this Agreement, the Notes and any such other documents, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent and to the Lenders (including reasonable allocated costs
of in-house legal counsel), and
(c) on demand, to pay, indemnify, and hold each Lender and the Administrative
Agent harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp,
excise and other similar taxes, if any, which may be payable or determined to
be payable in connection with the execution and delivery of, or consummation or
administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of,
the Credit Documents and any such other documents, and (d) to pay, indemnify, and hold each Lender and the
Administrative Agent and their Affiliates (collectively, the Indemnified
Parties”) harmless from and against, any and all other liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever (irrespective of
whether the Indemnified Party is named as a party to any litigation or
proceeding) with respect to the execution, delivery, enforcement, performance
and administration of the Credit Documents and any such other documents and the
use, or proposed use, of proceeds of the Loans (all of the foregoing,
collectively, a “Third Party Claim”; provided, however,
that the Borrower shall not have any obligation hereunder to the Administrative
Agent or any Lender with respect to Third Party Claims arising from the gross 

 95
 

negligence or willful misconduct of the Administrative
Agent or any such Lender, as determined by a court of competent jurisdiction in
a final and non-appealable judgment; provided, further, that (i)
each Indemnified Party shall promptly notify the Borrower in writing upon
becoming aware of the initiation of any Third Party Claim against it, (ii) the
Borrower shall be entitled to participate in the defense of any such Third
Party Claim and, if the borrower so chooses, to assume the defense, at the
Borrower’s expense, of any such Third Party Claim with counsel selected by the
Borrower (it being understood that any Indemnified Party shall have the right
to participate in such defense and employ counsel separate from the counsel
employed by the Borrower, and that such counsel shall be at the expense of such
Indemnified Party unless such Indemnified Party shall have been advised by
counsel that there may be legal defenses available to it that are inconsistent
with or in addition to those available to the Borrower, in which case such
counsel shall be at the Borrower’s expense) and (iii) no Indemnified Party
shall settle any Third Party Claim without the Borrower’s prior written consent
(such consent not to be unreasonably withheld). 
The agreements in this Section 9.5 shall survive repayment of the
Loans, Notes and all other amounts payable hereunder.

Section 9.6             Successors
and Assigns; Participations; Purchasing Lenders.

(a)           This Agreement shall be
binding upon and inure to the benefit of the Borrower, the Lenders, the
Administrative Agent, all future holders of the Notes and their respective
successors and assigns, except that the Borrower and the Guarantors may not
assign or transfer any of their rights or obligations under this Agreement or
the other Credit Documents without the prior written consent of each Lender.

(b)           Any Lender may, in the
ordinary course of its commercial banking business and in accordance with
applicable law, at any time sell to one or more banks or other entities (“Participants”)
participating interests in any Loan owing to such Lender, any Note held by such
Lender, any Commitment of such Lender, or any other interest of such Lender hereunder.  In the event of any such sale by a Lender of
participating interests to a Participant, such Lender’s obligations under this
Agreement to the other parties to this Agreement shall remain unchanged, such
Lender shall remain solely responsible for the performance thereof, such Lender
shall remain the holder of any such Note for all purposes under this Agreement,
and the Borrower and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  No
Lender shall transfer or grant any participation under which the Participant
shall have rights to approve any amendment to or waiver of this Agreement or
any other Credit Document except to the extent such amendment or waiver would
(i) extend the scheduled maturity of any Loan or Note or any installment
thereon in which such Participant is participating, or reduce the stated rate
or extend the time of payment of interest or fees thereon (except in connection
with a waiver of interest at the increased post-default rate) or reduce
the principal amount thereof, or increase the amount of the Participant’s
participation over the amount thereof then in effect (it being understood that
a waiver of any Default or Event of Default shall not constitute a change in
the terms of such participation, and that an increase in any Commitment or Loan
shall be permitted without consent of any participant if the Participant’s
participation is not increased as a result thereof), (ii) release all or
substantially all of the Guarantors from their obligations under the Guaranty,  (iii) release
all or substantially all of the Collateral, or
(iv) consent to the assignment or transfer 

 96
 

by the Borrower or the Guarantors of any of their rights
and obligations under this Agreement.  In
the case of any such participation, the Participant shall not have any rights
under this Agreement or any of the other Credit Documents (the Participant’s
rights against such Lender in respect of such participation to be those set
forth in the agreement executed by such Lender in favor of the Participant
relating thereto) and all amounts payable by the Borrower hereunder shall be
determined as if such Lender had not sold such participation, provided
that each Participant shall be entitled to the benefits of Sections 2.16, 2.17,
2.18 and 9.5 with respect to its participation in the Commitments and the Loans
outstanding from time to time; provided, that no Participant shall be
entitled to receive any greater amount pursuant to such Sections than the
transferor Lender would have been entitled to receive in respect of the amount
of the participation transferred by such transferor Lender to such Participant
had no such transfer occurred.

(c)           Any Lender may, in the
ordinary course of its commercial banking business and in accordance with
applicable law, at any time, sell or assign to any Lender or any affiliate or
Approved Fund thereof and, with the consent of the Administrative Agent and, so
long as no Event of Default has occurred and is continuing, the Borrower (in
each case, which consent shall not be unreasonably withheld), to one or more
additional banks or financial institutions or entities (“Purchasing Lenders”),
all or any part of its rights and obligations under this Agreement and the
Notes in minimum amounts of $5,000,000 (or, if less, the entire amount of such
Lender’s interests and obligations), pursuant to a Assignment Agreement,
executed by such Purchasing Lender and such transferor Lender (and, in the case
of a Purchasing Lender that is not then a Lender or an affiliate or Approved
Fund thereof, the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower), and delivered to the Administrative
Agent for its acceptance and recording in the Register.  Upon such execution, delivery, acceptance and
recording, from and after the Transfer Effective Date specified in such
Assignment Agreement, (x) the Purchasing Lender thereunder shall be a party
hereto and, to the extent provided in such Assignment Agreement, have the
rights and obligations of a Lender hereunder with a Commitment as set forth
therein, and (y) the transferor Lender thereunder shall, to the extent provided
in such Assignment Agreement, be released from its obligations under this
Agreement (and, in the case of a Assignment Agreement covering all or the
remaining portion of a transferor Lender’s rights and obligations under this
Agreement, such transferor Lender shall cease to be a party hereto).  Such Assignment Agreement shall be deemed to
amend this Agreement to the extent, and only to the extent, necessary to
reflect the addition of such Purchasing Lender and the resulting adjustment of
Revolving Commitment Percentages arising from the purchase by such Purchasing
Lender of all or a portion of the rights and obligations of such transferor
Lender under this Agreement and the Notes. 
On or prior to the Transfer Effective Date specified in such Assignment
Agreement, the Borrower, at its own expense, shall execute and deliver to the
Administrative Agent in exchange for the Notes delivered to the Administrative
Agent pursuant to such Assignment Agreement 
new Notes to the order of such Purchasing Lender in an amount equal to the
Commitment assumed by it pursuant to such Assignment Agreement and, unless the
transferor Lender has not retained a Commitment hereunder, new Notes to the
order of the transferor Lender in an amount equal to the Commitment retained by
it hereunder.  Such new Notes shall be
dated the Closing Date and shall otherwise be in the form of the Notes replaced
thereby.  The Notes surrendered by the
transferor Lender shall be returned by the Administrative Agent to the Borrower
marked “canceled”.

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(d)           The Administrative
Agent shall maintain at its address referred to in Section 9.2 a copy of
each Assignment Agreement delivered to it and a register (the “Register”)
for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from
time to time.  The entries in the
Register shall be conclusive, in the absence of manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register as the owner of the Loan recorded therein for
all purposes of this Agreement.  The
Register shall be available for inspection by the Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

(e)           Upon its receipt of a
duly executed Assignment Agreement, together with payment to the Administrative
Agent by the transferor Lender or the Purchasing Lender, as agreed between
them, of a registration and processing fee of $3,500.00 for each Purchasing
Lender (other than an affiliate of such Lender or an Approved Fund) listed in
such Assignment Agreement and the Notes subject to such Assignment Agreement,
the Administrative Agent shall (i) accept such Assignment Agreement,
(ii) record the information contained therein in the Register and  (iii) give
prompt notice of such acceptance and recordation to the Lenders and the
Borrower.

(f)            The Borrower
authorizes each Lender to disclose to any Participant or Purchasing Lender
(each, a “Transferee”) and any prospective Transferee any and all
financial information in such Lender’s possession concerning the Borrower and
its Affiliates which has been delivered to such Lender by or on behalf of the
Borrower pursuant to this Agreement or which has been delivered to such Lender
by or on behalf of the Borrower in connection with such Lender’s credit
evaluation of the Borrower and its Affiliates prior to becoming a party to this
Agreement, in each case subject to Section 9.15.

(g)           At the time of each
assignment pursuant to this Section 9.6 to a Person which is not already a
Lender hereunder and which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) for Federal income tax
purposes, the respective assignee Lender shall provide to the Borrower and the
Administrative Agent the appropriate Internal Revenue Service Forms (and, if
applicable, a Tax Exempt Certificate) described in Section 2.17.

(h)           Any Lender may at any
time pledge or assign a security interest in all or any portion of its rights
under this Agreement to secure obligations of such Lender, including any such
pledge or assignment to a Federal Reserve Bank, and this Section 9.6 shall not
apply to any such pledge or assignment of a security interest; provided
that no such pledge or assignment of a security interest shall release a Lender
from any of its obligations hereunder or substitute any such assignee for such
Lender as a party hereto.

Section 9.7             Adjustments;
Set-off.

(a)           Each Lender agrees that
if any Lender (a “benefited Lender”) shall at any time receive any
payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off,
pursuant to events or 

 98
 

proceedings of the nature referred to in
Section 7.1(e), or otherwise) in a greater proportion than any such
payment to or collateral received by any other Lender, if any, in respect of
such other Lender’s Loans, or interest thereon, such benefited Lender shall
purchase for cash from the other Lenders a participating interest in such
portion of each such other Lender’s Loan, or shall provide such other Lenders
with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such benefited Lender to share the excess payment or
benefits of such collateral or proceeds ratably with each of the Lenders; provided,
however, that if all or any portion of such excess payment or benefits
is thereafter recovered from such benefited Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest.  The
Borrower agrees that each Lender so purchasing a portion of another Lender’s
Loans may exercise all rights of payment (including, without limitation, rights
of set-off) with respect to such portion as fully as if such Lender were
the direct holder of such portion.

(b)           In addition to any
rights and remedies of the Lenders provided by law (including, without
limitation, other rights of set-off), each Lender shall have the right, without
prior notice to the Borrower or the applicable Credit Party, any such notice
being expressly waived by the Credit Parties to the extent permitted by
applicable law, upon the occurrence of any Event of Default, to setoff and
appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held by or owing to such Lender or
any branch or agency thereof to or for the credit or the account of the
Borrower or any other Credit Party, or any part thereof in such amounts as such
Lender may elect, against and on account of the Loans and other Credit Party
Obligations of the Borrower and the other Credit Parties to the Administrative
Agent and the Lenders and claims of every nature and description of the
Administrative Agent and the Lenders against the Borrower and the other Credit
Parties, in any currency, whether arising hereunder, under any other Credit
Document or any Secured Hedging Agreement pursuant to the terms of this Credit
Agreement, as such Lender may elect, whether or not the Administrative Agent or
the Lenders have made any demand for payment and although such obligations,
liabilities and claims may be contingent or unmatured.  The aforesaid right of set-off may be
exercised by such Lender against the Borrower, any other Credit Party or
against any trustee in bankruptcy, debtor in possession, assignee for the
benefit of creditors, receiver or execution, judgment or attachment creditor of
the Borrower or any other Credit Party, or against anyone else claiming through
or against the Borrower, any other Credit Party or any such trustee in
bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor, notwithstanding the
fact that such right of set-off shall not have been exercised by such Lender
prior to the occurrence of any Event of Default.  Each Lender agrees promptly to notify the
Borrower and the Administrative Agent after any such set-off and application
made by such Lender; provided, however, that the failure to give
such notice shall not affect the validity of such set-off and application.

Section 9.8             Table
of Contents and Section Headings.

The table of contents and
the Section and subsection headings herein are intended for convenience only
and shall be ignored in construing this Agreement.

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Section 9.9             Counterparts.

This Agreement may be
executed by one or more of the parties to this Agreement on any number of
separate counterparts, and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.  A set of the copies of this Agreement signed
by all the parties shall be lodged with the Borrower and the Administrative
Agent.

Section 9.10           Effectiveness.

This Agreement shall
become effective on the date on which all of the parties have signed a copy
hereof (whether the same or different copies) and shall have delivered the same
to the Administrative Agent pursuant to Section 9.2 or, in the case of the
Lenders, shall have given to the Administrative Agent written, telecopied or
telex notice (actually received) at such office that the same has been signed
and mailed to it.  Upon this Agreement
becoming effective, the Existing Credit Agreement shall be deemed amended and
restated by this Agreement without effecting a novation thereof.

Section 9.11           Severability.

Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

Section 9.12           Integration.

This Agreement and the
Notes represent the agreement of the Borrower, the Administrative Agent and the
Lenders with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Administrative Agent, the
Borrower or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the Notes.

Section 9.13           Governing
Law.

This Agreement and the
Notes and the rights and obligations of the parties under this Agreement and
the Notes shall be governed by, and construed and interpreted in accordance
with, the law of the State of North Carolina.

Section 9.14           Consent
to Jurisdiction and Service of Process.

All judicial proceedings
brought against the Borrower and/or any other Credit Party with respect to this
Agreement, any Note or any of the other Credit Documents may be brought in any
state or federal court of competent jurisdiction in the State of North
Carolina, and, by execution and delivery of this Agreement, each of the
Borrower and the other Credit Parties accepts, for 

 100
 

itself and in connection with its properties,
generally and unconditionally, the non-exclusive jurisdiction of the
aforesaid courts and irrevocably agrees to be bound by any final judgment
rendered thereby in connection with this Agreement from which no appeal has
been taken or is available.  Each of
Borrower and the other Credit Parties irrevocably agrees that all service of
process in any such proceedings in any such court may be effected by mailing a
copy thereof by registered or certified mail (or any substantially similar form
of mail), postage prepaid, to it at its address set forth in Section 9.2
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto, such service being hereby acknowledged by the
Borrower and the other Credit Parties to be effective and binding service in
every respect.  Each of the Borrower, the
other Credit Parties, the Administrative Agent and the Lenders irrevocably
waives any objection, including, without limitation, any objection to the
laying of venue or based on the grounds of forum non conveniens which it may
now or hereafter have to the bringing of any such action or proceeding in any
such jurisdiction.  Nothing herein shall
affect the right to serve process in any other manner permitted by law or shall
limit the right of the Administrative Agent or any Lender to bring proceedings
against the Borrower or the other Credit Parties in the court of any other
jurisdiction.

Section 9.15           Confidentiality.

The Administrative Agent
and each of the Lenders agrees that it will use its commercially reasonable
efforts not to disclose without the prior consent of the Borrower any
information with respect to the Parent and its Subsidiaries which is furnished
pursuant to this Agreement, any other Credit Document or any documents
contemplated by or referred to herein or therein and which is designated by the
Borrower to the Lenders in writing as confidential or as to which it is
otherwise reasonably clear such information is not public (the “Information”),
except that any Lender may disclose any such Information (a) to its employees, affiliates, auditors or counsel or
to another Lender each of whom shall have been made aware of this
confidentiality requirement and shall have agreed to be bound by its provisions
and other than as prohibited by Regulation FD, (b) as has become generally
available to the public other than by a breach of this Section 9.15, (c) as may be required or
appropriate in any report, statement or testimony submitted to any municipal,
state or federal regulatory body having or claiming to have jurisdiction over
such Lender or to the Federal Reserve Board or the Federal Deposit Insurance
Corporation or the Office of the Comptroller of the Currency or the National
Association of Insurance Commissioners or similar organizations (whether in the
United States or elsewhere) or their successors, (d) as may be required or appropriate in response to any
summons or subpoena or any law, order, regulation or ruling applicable to such
Lender, (e) to (i) any
prospective Participant or assignee in connection with any contemplated
transfer pursuant to Section 9.6 or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower, provided that such prospective transferee shall have
been made aware of this Section 9.15 and shall have agreed to be bound by
its provisions as if it were a party to this Credit Agreement, (f) to Gold Sheets and other
similar bank trade publications; such information to consist of deal terms and
other information regarding the credit facilities evidenced by this Credit Agreement
customarily found in such publications, (g) in connection with any suit, action
or proceeding for the purpose of defending itself, reducing its liability, or
protecting or exercising any of its claims, rights, remedies or interests under
or in connection with the Credit Documents or any Secured Hedging Agreement,
(h) to any direct or indirect 

 101
 

contractual counterparty in swap agreements or such
contractual counterparty’s professional advisor (so long as such contractual
counterparty or professional advisor to such contractual counterparty agrees to
be bound by the provisions of this Section 9.15), (i) any nationally recognized
rating agency that requires access to information about a Lender’s investment
portfolio in connection with ratings issued with respect to such Lender, or (j)
to a Person that is a trustee, collateral manager, servicer, noteholder or
secured party in a Securitization in connection with the administration,
servicing and reporting on the assets serving as collateral for such Securitization;
provided that such Person shall have been made aware of this Section
9.15 and shall have agreed to be bound by its provisions as if it were a party
to this Credit Agreement.  For purposes
of this Section “Securitization” shall mean a public or private offering
by a Lender or any of its affiliates or their respective successors and
assigns, of securities which represent an interest in, or which are
collateralized in whole or in part by, the Loans.

Section 9.16           Acknowledgments.

The Borrower and the
other Credit Parties each hereby acknowledges that:

(a)           it has been advised by
counsel in the negotiation, execution and delivery of each Credit Document;

(b)           neither the
Administrative Agent nor any Lender has any fiduciary relationship with or duty
to the Borrower or any other Credit Party arising out of or in connection with
this Agreement and the relationship between Administrative Agent and Lenders,
on one hand, and the Borrower and the other Credit Parties, on the other hand,
in connection herewith is solely that of debtor and creditor; and

(c)           no joint venture exists
among the Lenders or among the Borrower or the other Credit Parties and the
Lenders.

Section 9.17           Waivers
of Jury Trial.

THE BORROWER, THE OTHER
CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY
IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

Section 9.18           Compliance
with Tax Shelter Regulations.

(a)           The Borrower and each
Lender (i) represents and warrants that, as of the Closing Date, it does not
intend to treat the Extensions of Credit hereunder and the other transactions
contemplated hereby as a “reportable transaction” (within the meaning of
Treasury Regulation Section 1.6011-4) and (ii) covenants to give prior written
notice to the Administrative Agent and the Borrower (as applicable) if it
determines to take any action inconsistent with the intention represented in
the foregoing clause (i).

 102
 

(b)           Subject to the terms of
Section 9.18(a)(ii), if a Lender determines that the Extensions of Credit made
by such Lender should be treated as part of a transaction that is subject to
Treasury Regulation Section 1.6011-4 or Section 301.6112-1, such Lender, the
Administrative Agent and the Borrower may file such IRS forms or maintain such
lists and other records as they may determine is required by such Treasury
Regulations.

(c)           Notwithstanding
anything herein (including Section 9.15) or in any other Credit Document to the
contrary, the Borrower, the Administrative Agent and each Lender may disclose
to any and all persons, without limitation of any kind, any information with
respect to the U.S. federal income tax treatment and U.S. federal income tax
structure of the transactions contemplated hereby and all material of any kind
(including opinions or other tax analyses) that are provided to the Borrower,
the Administrative Agent or such Lender relating to such tax treatment and tax
structure.

Section 9.19           Patriot Act Notice.

Each
Lender and the Administrative Agent (for itself and not on behalf of any other
party) hereby notifies the Borrower that, pursuant to the requirements of the
USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001
(the “Patriot Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Patriot Act.

ARTICLE X

GUARANTY

Section 10.1           The Guaranty.

In order to induce the Lenders to enter into this
Credit Agreement and any Hedging Agreement Provider to enter into any Secured
Hedging Agreement and to extend credit hereunder and thereunder and in
recognition of the direct benefits to be received by the Guarantors from the
Extensions of Credit hereunder and any Secured Hedging Agreement, each of the
Guarantors hereby agrees with the Administrative Agent, the Lenders and the
Hedging Agreement Providers as follows: 
the Guarantor hereby unconditionally and irrevocably jointly and
severally guarantees as primary obligor and not merely as surety the full and
prompt payment when due, whether upon maturity, by acceleration or otherwise,
of any and all Credit Party Obligations. 
If any or all of the indebtedness becomes due
and payable hereunder or under any Secured Hedging Agreement, each Guarantor
unconditionally promises to pay such indebtedness to the Administrative Agent,
the Lenders, the Hedging Agreement Providers, or their respective order, or
demand, together with any and all reasonable expenses which may be incurred by
the Administrative Agent or the Lenders in collecting any of the Credit Party
Obligations.

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Notwithstanding any
provision to the contrary contained herein or in any other of the Credit
Documents, to the extent the obligations of a Guarantor shall be adjudicated to
be invalid or unenforceable for any reason (including, without limitation,
because of any applicable state or federal law relating to fraudulent
conveyances or transfers) then the obligations of each such Guarantor hereunder
shall be limited to the maximum amount that is permissible under applicable law
(whether federal or state and including, without limitation, the Bankruptcy
Code).

Section 10.2           Bankruptcy.

Additionally, each of the Guarantors unconditionally
and irrevocably guarantees jointly and severally the payment of any and all
Credit Party Obligations of the Borrower to the Lenders and any Hedging
Agreement Provider whether or not due or payable by the Borrower upon the
occurrence of any of the events specified in Section 7.1(f), and
unconditionally promises to pay such Credit Party Obligations to the
Administrative Agent for the account of the Lenders and to any such Hedging
Agreement Provider, or order, on demand, in lawful money of the United
States.  Each of the Guarantors further
agrees that to the extent that the Borrower or a Guarantor shall make a payment
or a transfer of an interest in any property to the Administrative Agent, any
Lender or any Hedging Agreement Provider, which payment or transfer or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential,
or otherwise is avoided, and/or required to be repaid to the Borrower or a
Guarantor, the  estate of the
Borrower or a Guarantor, a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then to
the extent of such avoidance or repayment, the obligation or part thereof
intended to be satisfied shall be revived and continued in full force and
effect as if said payment had not been made.

Section 10.3           Nature
of Liability.

The liability of each Guarantor hereunder is exclusive
and independent of any security for or other guaranty of the Credit Party
Obligations of the Borrower whether executed by any such Guarantor, any other
guarantor or by any other party, and no Guarantor’s liability hereunder shall
be affected or impaired by (a) any direction as to application of payment by
the Borrower or by any other party, or (b) any other continuing or other
guaranty, undertaking or maximum liability of a guarantor or of any other party
as to the Credit Party Obligations of the Borrower, or (c) any payment on or in
reduction of any such other guaranty or undertaking, or (d) any dissolution,
termination or increase, decrease or change in personnel by the Borrower, or
(e) any payment made to the Administrative Agent, the Lenders or any Hedging
Agreement Provider on the Credit Party Obligations which the Administrative
Agent, such Lenders or such Hedging Agreement Provider repay the Borrower
pursuant to court order in any bankruptcy, reorganization, arrangement,
moratorium or other debtor relief proceeding, and each of the Guarantors waives
any right to the deferral or modification of its obligations hereunder by
reason of any such proceeding.

Section 10.4           Independent
Obligation.

The obligations of each Guarantor hereunder are
independent of the obligations of any other Guarantor or the Borrower, and a
separate action or actions may be brought and prosecuted 

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against each
Guarantor whether or not action is brought against any other Guarantor or the
Borrower and whether or not any other Guarantor or the Borrower is joined in
any such action or actions.

Section 10.5           Authorization.

Each of the Guarantors authorizes the Administrative
Agent, each Lender and each Hedging Agreement Provider without notice or demand
(except as shall be required by applicable statute and cannot be waived), and
without affecting or impairing its liability hereunder, from time to time to
(a) renew, compromise, extend, increase, accelerate or otherwise change the
time for payment of, or otherwise change the terms of the Credit Party
Obligations or any part thereof in accordance with this Credit Agreement and
any Secured Hedging Agreement, as applicable, including any increase or
decrease of the rate of interest thereon, (b) take and hold security from any
Guarantor or any other party for the payment of this Guaranty or the Credit
Party Obligations and exchange, enforce waive and release any such security,
(c) apply such security and direct the order or manner of sale thereof as the
Administrative Agent and the Lenders in their discretion may determine and (d)
release or substitute any one or more endorsers, Guarantors, the Borrower or
other obligors.

Section 10.6           Reliance.

It is not necessary for the Administrative Agent, the Lenders
or any Hedging Agreement Provider to inquire into the capacity or powers of the
Borrower or the officers, directors, members, partners or agents acting or
purporting to act on its behalf, and any Credit Party Obligations made or
created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder.

Section 10.7           Waiver.

(a)           Each of the Guarantors
waives any right (except as shall be required by applicable statute and cannot
be waived) to require the Administrative Agent, any Lender or any Hedging
Agreement Provider to (i) proceed against the Borrower, any other guarantor or
any other party, (ii) proceed against or exhaust any security held from the
Borrower, any other guarantor or any other party, or (iii) pursue any other remedy
in the Administrative Agent’s, any Lender’s or any Hedging Agreement Provider’s
power whatsoever.  Each of the Guarantors
waives any defense based on or arising out of any defense of the Borrower, any
other guarantor or any other party other than payment in full of the Credit
Party Obligations (other than contingent indemnity obligations), including
without limitation any defense based on or arising out of the disability of the
Borrower, any other guarantor or any other party, or the unenforceability of the
Credit Party Obligations or any part thereof from any cause, or the cessation
from any cause of the liability of the Borrower other than payment in full of
the Credit Party Obligations.  The
Administrative Agent may, at its election, foreclose on any security held by
the Administrative Agent by one or more judicial or nonjudicial sales (to the
extent such sale is permitted by applicable law), or exercise any other right
or remedy the Administrative Agent or any Lender may have against the Borrower
or any other party, or any security, 

 105
 

without affecting or impairing in any way the
liability of any Guarantor hereunder except to the extent the Credit Party
Obligations have been paid in full and the Commitments have been
terminated.  Each of the Guarantors waives
any defense arising out of any such election by the Administrative Agent or any
of the Lenders, even though such election operates to impair or extinguish any
right of reimbursement or subrogation or other right or remedy of the
Guarantors against the Borrower or any other party or any security.

(b)           Each of the Guarantors
waives all presentments, demands for performance, protests and notices,
including without limitation notices of nonperformance, notice of protest,
notices of dishonor, notices of acceptance of this Guaranty, and notices of the
existence, creation or incurring of new or additional Credit Party
Obligations.  Each Guarantor assumes all
responsibility for being and keeping itself informed of the Borrower’s
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Credit Party Obligations and the nature, scope and
extent of the risks which such Guarantor assumes and incurs hereunder, and
agrees that neither the Administrative Agent nor any Lender shall have any duty
to advise such Guarantor of information known to it regarding such
circumstances or risks.

(c)           Each of the Guarantors
hereby agrees it will not exercise any rights of subrogation which it may at
any time otherwise have as a result of this Guaranty (whether contractual,
under Section 509 of the U.S. Bankruptcy Code, or otherwise) to the claims of
the Lenders or any Hedging Agreement Provider against the Borrower or any other
guarantor of the Credit Party Obligations of the Borrower owing to the Lenders
or such Hedging Agreement Provider (collectively, the “Other Parties”)
and all contractual, statutory or common law rights of reimbursement,
contribution or indemnity from any Other Party which it may at any time
otherwise have as a result of this Guaranty until such time as the Credit Party
Obligations shall have been paid in full and the Commitments have been
terminated.  Each of the Guarantors
hereby further agrees not to exercise any right to enforce any other remedy
which the Administrative Agent, the Lenders or any Hedging Agreement Provider
now have or may hereafter have against any Other Party, any endorser or any
other guarantor of all or any part of the Credit Party Obligations of the
Borrower and any benefit of, and any right to participate in, any security or
collateral given to or for the benefit of the Lenders and/or the Hedging
Agreement Providers to secure payment of the Credit Party Obligations of the
Borrower until such time as the Credit Party Obligations (other than contingent
indemnity obligations) shall have been paid in full and the Commitments have
been terminated.

Section 10.8           Limitation
on Enforcement.

The Lenders and the Hedging Agreement Providers agree
that this Guaranty may be enforced only by the action of the Administrative
Agent acting upon the instructions of the Required Lenders or such Hedging
Agreement Provider (only with respect to obligations under the applicable
Secured Hedging Agreement) and that no Lender or Hedging Agreement Provider
shall have any right individually to seek to enforce or to enforce this
Guaranty, it being understood and agreed that such rights and remedies may be
exercised by the Administrative Agent for the benefit of the Lenders under the
terms of this Credit Agreement and for the benefit 

 106
 

of any Hedging
Agreement Provider under any Secured Hedging Agreement.  The Lenders and the Hedging Agreement
Providers further agree that this Guaranty may not be enforced against any
director, officer, employee or stockholder of the Guarantors.

Section 10.9           Confirmation of
Payment.

The Administrative Agent
and the Lenders will, upon request after payment of the Credit Party
Obligations which are the subject of this Guaranty and termination of the
Commitments relating thereto, confirm to the Borrower, the Guarantors or any
other Person that such indebtedness and obligations have been paid and the
Commitments relating thereto terminated, subject to the provisions of Section
10.2.

At
such time as the Credit Party Obligations which are the subject of this
Guaranty have been paid in full and the Commitments have been terminated, this
Guaranty and all obligations of the Guarantors hereunder shall terminate and be
of no further force and effect, all without delivery of any instrument or
performance of any act by any Person.

 107

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered by its proper and duly
authorized officers as of the day and year first above written.

	
  BORROWER:

  	
  RED ROBIN INTERNATIONAL, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Katherine L. Scherping

  	
   

  
	
   

  	
  Name: Katherine L. Scherping

  
	
   

  	
  Title:   Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  	
  RED ROBIN GOURMET BURGERS, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
  RED ROBIN WEST, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
  RED ROBIN DISTRIBUTING COMPANY, INC.,

  
	
   

  	
  a Colorado corporation

  
	
   

  	
  WESTERN FRANCHISE DEVELOPMENT, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Katherine L. Scherping

  	
   

  
	
   

  	
  Name:

  	
  Katherine L. Scherping

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
					

 

[signature
pages continue]

 

	
  ADMINISTRATIVE AGENT

  	
   

  	
   

  
	
  AND LENDERS:

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Administrative Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Kevin Lilly

  	
   

  
	
   

  	
  Name: Kevin Lilly

  
	
   

  	
  Title:   Vice
  President

  

 

[signature pages
continue]

 

	
  

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Randall Schmidt

  	
   

  
	
   

  	
  Name: Randall Schmidt

  
	
   

  	
  Title:   Vice President

  

 

[signature pages
continue]

 

	
  

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  Angelo Maragos

  	
   

  
	
   

  	
  Name: Angelo Maragos

  
	
   

  	
  Title:  Vice President

  

 

[signature pages
continue]

 

	
  

  	
  KEYBANK NATIONAL ASSOCIATION,

  
	
   

  	
  as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Marianne T. Meil

  	
   

  
	
   

  	
  Name: Marianne T. Meil

  
	
   

  	
  Title:  Senior Vice President

  

 

[signature pages
continue]

 

	
  

  	
  SUN TRUST BANK,

  
	
   

  	
  as Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Jean Paul Purdy

  	
   

  
	
   

  	
  Name: Jean Paul Purdy

  
	
   

  	
  Title:   Director

  

 

[signature pages
continue]

 

	
  

  	
  COOPERATIEVE CENTRALE RAIFFEISEN-

  
	
   

  	
  BOERENLEENBANK, B.A. “RABOBANK

  
	
   

  	
  NEDERLAND”, NEW YORK BRANCH

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Pamela Beal

  	
   

  
	
   

  	
  Name: Pamela Beal

  
	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Rebecca O. Morrow

  	
   

  
	
   

  	
  Name: Rebecca O. Morrow

  
	
   

  	
  Title:   Executive Director

  

 

[signature pages
continue]

 

	
  

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ Jacob Payne

  	
   

  	 

	
   

  	
  Name: 

  	
  Jacob Payne

  
	
   

  	
  Title:

  	
  Vice President

  
						

 

[signature pages
continue]

 

	
  

  	
  ROYAL BANK OF CANADA,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Gordon MacArthur

  	
   

  
	
   

  	
  Name: 

  	
  Gordon MacArthur

  
	
   

  	
  Title:

  	
  Authorized Signatory

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