Document:

Seventh Supplemental Indenture, dated October 6, 2006

 Exhibit 4.1 
 SEVENTH SUPPLEMENTAL INDENTURE 
 SEVENTH SUPPLEMENTAL INDENTURE, dated as of October 6, 2006,
among Dresser, Inc., a Delaware corporation (the “Company”), the Guarantors named herein (the “Guarantors”) and U.S. Bank National Association, as successor trustee (the “Trustee”). 
 WHEREAS, the Company has duly issued its 9 3/8% Senior Subordinated Notes due 2011 (the “Notes”), in the aggregate principal amount of $550,000,000 pursuant to an Indenture dated as of April 10, 2001, among the Company, the
guarantors party thereto from time to time and the Trustee (as supplemented by the First, Second, Third, Fourth, Fifth and Sixth Supplemental Indentures thereto, the “Indenture”); and 
 WHEREAS, the Notes are outstanding on the date hereof; and 
 WHEREAS, Section 9.02 of the Indenture provides that the Company and the Trustee may amend the Indenture with the written consent of the Holders (as defined in the Indenture) of at least a majority of the
aggregate principal amount of the then outstanding Notes voting as a single class and execute a supplemental indenture; and 
 WHEREAS, the
Company has offered to purchase any and all of the outstanding Notes upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated September 25, 2006, and the accompanying Consent and
Letter of Transmittal (as the same may be further amended, supplemented or modified, the “Offer”); and 
 WHEREAS, the Offer is
conditioned upon, among other things, the proposed amendments (the “Proposed Amendments”) to the Indenture set forth herein having been approved by the Holders of at least a majority in aggregate principal amount of the outstanding Notes
(and a supplemental indenture in respect thereof having been executed and delivered), with the operativeness of such Proposed Amendments being subject to the acceptance by the Company of such Notes tendered pursuant to the Offer; and 
 WHEREAS, the Holders of at least a majority in aggregate principal amount of the outstanding Notes have delivered their consent (the “Requisite
Consent”) to effect the Proposed Amendments; and 
 WHEREAS, the Company has been authorized by a unanimous written consent of its Board
of Directors to enter into this Seventh Supplemental Indenture; and 
 WHEREAS, all other acts and proceedings required by law, by the
Indenture, and by the amended and restated certificate of incorporation and bylaws of the Company to make this Seventh Supplemental Indenture a valid and binding agreement for the purposes expressed herein, and in accordance with its terms, have
been duly completed and performed; 
 NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, and
for other good and valuable consideration the receipt of 

 
which is hereby acknowledged, and for the equal and proportionate benefit of the Holders, the Company, the Guarantors and the Trustee hereby agree as
follows: 
 SECTION 1. DEFINITIONS. 
 Capitalized terms not defined herein shall have the meanings given to such terms in the Indenture. 
 SECTION 2. DELETION OF CERTAIN PROVISIONS.

 Pursuant to the terms of the Offer and the consent of Holders representing at least a majority in aggregate principal amount of the
outstanding Notes, the Indenture is hereby amended to delete the following sections in their entirety and, in the case of each such section, insert in lieu thereof the phrase “[Intentionally Omitted]”, and any and all references to such
sections, any and all obligations thereunder and any event of default, but only to the extent related to the following sections, are hereby deleted throughout the Indenture, and such sections and references shall be of no further force or effect:

  

	 	•	 	Section 4.03 (Reports to Holders); 

  

	 	•	 	Section 4.04 (Compliance Certificate); 

  

	 	•	 	Section 4.05 (Payment of Taxes and Other Claims); 

  

	 	•	 	Section 4.07 (Limitation on Restricted Payments); 

  

	 	•	 	Section 4.08 (Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries); 

  

	 	•	 	Section 4.09 (Limitation on Incurrence of Additional Indebtedness); 

  

	 	•	 	Section 4.10 (Limitation on Asset Sales); 

  

	 	•	 	Section 4.11 (Limitation on Transactions with Affiliates); 

  

	 	•	 	Section 4.12 (Limitation on Liens); 

  

	 	•	 	Section 4.13 (Conduct of Business); 

  

	 	•	 	Section 4.14 (Corporate Existence); 

  

	 	•	 	Section 4.15 (Offer to Repurchase upon Change of Control); 

  

	 	•	 	Section 4.16 (No Senior Subordinated Debt); 

  

	 	•	 	Section 4.17 (Future Guarantees by Wholly Owned Domestic Restricted Subsidiaries); 

  

	 	•	 	Section 4.18 (Limitation on Issuances of Guarantees by Restricted Subsidiaries); and 

  

	 	•	 	Section 5.01 (Merger, Consolidation and Sale of Assets) 

 SECTION
3. OTHER AMENDMENTS TO THE INDENTURE. 
 Section 6.01 of the Indenture is hereby amended and restated in its entirety as follows, and
all references to the deleted provisions of Section 6.01 of the Indenture, and any and all obligations thereunder, are hereby deleted throughout the Indenture, and such deleted provisions and references shall be of no further force or effect:

 “SECTION 6.01. Events of Default. 
 “Events of Default” are: 
 (a) the
failure to pay interest on any Notes when the same becomes due and payable and the default continues for a period of 30 days (whether or not such payment shall be prohibited by Article 10); 
 (b) the failure to pay the principal on any Notes when such principal becomes due and payable, at maturity, upon redemption or otherwise (including the
failure to make a payment to purchase Notes tendered pursuant to a Change of Control Offer or a Net Proceeds Offer on the date specified for such payment in the applicable offer to purchase) (whether or not such payment shall be prohibited by
Article 10); 
 (c) a default in the observance or performance of any other covenant or agreement contained herein if the default continues
for a period of 30 days after the Company receives written notice specifying the default (and demanding that such default be remedied) from the Trustee or the Holders of at least 25% of the outstanding principal amount of the Notes; or 

(d) any Guarantee of a Significant Subsidiary ceases to be in full force and effect or any Guarantee of a Significant Subsidiary is declared to be null
and void and unenforceable or any Guarantee of a Significant Subsidiary is found to be invalid or any Guarantor that is a Significant Subsidiary denies its liability under its Guarantee (other than by reason of release of a Guarantor in accordance
with the terms of this Indenture).” 
 SECTION 4. EFFECTIVENESS; OPERATIVENESS. 
 (a) This Seventh Supplemental Indenture will become effective and binding upon the Company, the Guarantors, the Trustee and the Holders as of the later of
(i) the date hereof and (ii) the date on which the Opinion of Counsel and Officers’ Certificate required by the Indenture is delivered to the Trustee; and 
 (b) Notwithstanding subsection 4(a) hereof, Sections 2 and 3 of this Seventh Supplemental Indenture will not become operative, and shall have no force or effect, until the delivery by the Company of an Officers’
Certificate to the effect that the Company has accepted for purchase the Notes tendered pursuant to the Offer. 
 SECTION 5. REFERENCES TO AND EFFECT ON
THE INDENTURE. 
 (a) On and after the effective date of this Seventh Supplemental Indenture, each reference in the Indenture to
“this Indenture,” “hereunder,” “hereof,” or “herein” shall mean and be a reference to the Indenture as supplemented by this Seventh Supplemental Indenture unless the context otherwise requires. 
 (b) Except as specifically amended above, the Indenture shall remain in full force and effect and is hereby ratified and confirmed. 

 SECTION 6. GOVERNING LAW. 
 THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SEVENTH SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 
 SECTION 8. COUNTERPARTS. 
 The parties may sign any number of copies of this Seventh Supplemental Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement. Delivery of a signed copy by facsimile or other electronic means shall be effective as if manually signed. 
 SECTION 9.
EFFECT OF HEADINGS. 
 The Section headings herein are for convenience only and shall not affect the construction hereof. 
 SECTION 10. TRUSTEE DISCLAIMER. 
 The Trustee has
accepted the amendment of the Indenture effected by this Seventh Supplemental Indenture and agrees to execute the trust created by the Indenture as hereby amended, but only upon the terms and conditions set forth in the Indenture, including the
terms and provisions defining and limiting the liabilities and responsibilities of the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect to any of the
recitals or statements contained herein, all of which recitals or statements are made solely by the Company, or for or with respect to (a) the validity or sufficiency of this Seventh Supplemental Indenture or any of the terms or provisions
hereof, (b) the proper authorization hereof by the Company by corporate action or otherwise, (c) the due execution hereof by the Company, (d) the consequences (direct or indirect and whether deliberate or inadvertent) of any amendment
herein provided for, and the Trustee makes no representation with respect to any such matters, and (e) the validity or sufficiency of the consent solicitation or the materials or procedures in connection therewith. 
 SECTION 11. CONFIRMATIONS; EFFECTIVENESS. 
 As amended by this Seventh Supplemental Indenture, the Indenture and the Notes are ratified and confirmed in all respects, and the Indenture as so amended shall be read, taken and construed as one and the same
instrument. This Seventh Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby. 

 SECTION 12. TRUST INDENTURE ACT. 
 If and to the extent that any provision of this Seventh Supplemental Indenture limits, qualifies or conflicts with another provision included in this Seventh Supplemental Indenture or in the Indenture, which is
required to be included in this Seventh Supplemental Indenture or the Indenture by the Trust Indenture Act of 1939, as amended (the “TIA”), such required provision of the TIA shall control. 
 SECTION 13. SEPARABILITY CLAUSE. 
 In case any
provision in this Seventh Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 [Signatures on following pages] 

 IN WITNESS WHEREOF, the parties hereto have caused this Seventh Supplemental Indenture to be duly
executed and attested, all as of the date first written above. 
  

					
	 DRESSER, INC.

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Senior Vice President and Chief
 Financial Officer

	
	 DRESSER INTERNATIONAL INC.

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Senior Vice President

	
	 DRESSER RE, INC.

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Vice President

	
	 DRESSER ENTECH, INC.

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Vice President

 Seventh Supplemental Indenture 

					
	 LVF HOLDING CORPORATION

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Vice President

	
	 DRESSER CHINA, INC.

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Vice President

	
	 RING-O VALVE, INCORPORATED

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Vice President

	
	 DRESSER RUSSIA, INC.

		
	 By:
	 	/S/ Robert D. Woltil
			
		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Vice President

 Seventh Supplemental Indenture 

					
	 U.S. BANK NATIONAL ASSOCIATION, as Trustee

		
	 By:
	 	/S/ Philip G. Kane, Jr.
		 	Name:	 	Philip G. Kane, Jr.
		 	Title:	 	Vice President

 Seventh Supplemental IndentureFourth Amendment to Credit Agreement

 Exhibit 10.1 
 FOURTH AMENDMENT TO CREDIT AGREEMENT 
  

					
	 Parties:
	  	“LaSalle”:	  	LaSalle Bank, National Association
		  		  	370 Seventeenth Street
		  		  	Suite 3590
		  		  	Denver, CO 80202
			
		  	“Borrower”:	  	 Champps Operating Corporation
 10375 Park Meadows
Drive, Suite 560
 Littleton, Colorado 80124

			
		  	“Syndication Parties”:	  	Whose signatures appear below
		
	Execution Date:	  	October 5, 2006

 Recitals: 
 A. LaSalle (in its capacity as the Administrative Agent (“Agent”) and as a Syndication Party) and Borrower have entered into that certain Credit Agreement (Revolving Loan and Term Loans) dated as of
March 16, 2004, that First Amendment to Credit Agreement dated as of November 29, 2005 (“First Amendment”), that Second Amendment to Credit Agreement dated as of June 13, 2006 (“Second Amendment”),
and that Third Amendment to Credit Agreement dated as of August 14, 2006 (“Third Amendment”) (as amended and as further amended, modified, or supplemented from time to time, the “Credit Agreement”) pursuant to
which LaSalle and any entity which becomes a “Syndication Party” has extended certain credit facilities to Borrower under the terms and conditions set forth in the Credit Agreement. 
 B. Borrower has requested that the Agent and the Syndication Parties extend the Maturity Date, incorporate the mechanics for a possible additional loan
in the future, and make certain other revisions to the Credit Agreement, which the Agent and the Syndication Parties are willing to do under the terms and conditions as set forth in this Fourth Amendment to Credit Agreement (“Fourth
Amendment”). 
 Agreement: 
 Now,
therefore, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Amendments to Credit Agreement. The Credit Agreement is amended as of the Effective Date as follows: 
 1.1 The following Sections of Article 1 are amended to read as follows: 
 1.5 Aggregate LC Commitment: shall be $7,000,000.00. 

 1.6 Aggregate 3-Year Commitment: shall be $25,000,000.00, subject to
increase as provided in Section 2.9 hereof and to reduction as provided in Section 2.8 hereof. 
 1.20
Commitment Fee Factor: means the Commitment Fee Factor, set forth as basis points, determined from time to time as provided in Section 4.6 hereof. 
 1.43 Individual 3-Year Commitment: means with respect to any Syndication Party, the amount shown as its Individual 3-Year
Commitment on Schedule 1 hereto, subject to adjustment in the event of the sale of all or a portion of a Syndication Interest in accordance with Section 13.25 hereof, or an increase (as provided in Section 2.9 hereof) or
decrease (as provided in Section 2.8 hereof) in the Aggregate 3-Year Commitment. 
 1.62 Notes: means the
3-Year Notes and the Discretionary Notes. 
 1.82 3-Year Loan or Loans: means the loan or loans (including Base
Rate Loans and LIBO Rate Loans, and including the Discretionary Loan) represented by 3-Year Advances made under the 3-Year Facility pursuant to this Credit Agreement. 
 1.83 3-Year Maturity Date: means September 30, 2010. 
 1.2 The following defined terms are added to the list immediately following Section 1.85: 
  

			
	Discretionary Loan	  	Section 2.9
	Discretionary Loan Date	  	Section 2.9
	Discretionary Note	  	Section 2.9

 1.3 Section 2.3 is amended to read as follows: 
 2.3 Promissory Notes. Borrower’s obligations to each Syndication Party under the 3-Year Loan, including Borrower’s
payment obligations with respect to all 3-Year Advances made by each Syndication Party shall be evidenced by, and repaid with interest in accordance with, a promissory note of Borrower, in substantially the form of Exhibit 2.3 hereto,
duly completed, in the stated maximum principal amount equal to such Syndication Party’s Individual 3-Year Commitment, payable to such Syndication Party for the account of its Applicable Lending Office, and maturing as to principal on the
3-Year Maturity Date (each a “3-Year Note” and collectively, the “3-Year Notes”). For the purposes of 

  

 2 

 
Subsections 4.1.1 and 4.4.2, and Section 5.3 hereof, the terms 3-Year Note or 3-Year Notes include the Discretionary Note and the Discretionary
Notes. 
 1.4 Section 2.5 is amended to read as follows: 
 2.5 Use of Proceeds. The proceeds of the 3-Year Loan will be used by Borrower (a) to repay, in full, the outstanding balance
of the Indebtedness described on Exhibit 2.5 hereto (“Existing Refinance Debt”); (b) to fund operating costs and for other working capital purposes; (c) to fund draws on the Letters of Credit; (d) to repay
the Subordinated Debt evidenced by those certain 5.5% Convertible Subordinated Notes due 2007 issued by Borrower on December 16, 2002; and (e) to fund acquisitions permitted under Section 10.7 hereof. Borrower agrees not to request or
use such proceeds for any other purpose. Borrower will not, directly or indirectly, use any part of such proceeds for the purpose of purchasing or carrying any “margin stock” within the meaning of Regulation U of the Board of Governors or
to extend credit to any Person for the purpose of purchasing or carrying any such margin stock. 
 1.5 Section 2.7 is
amended, and a new Section 2.9 is added, in each case, reading as follows: 
 2.7 [INTENTIONALLY OMITTED]

 2.9 Discretionary Loan. Upon the written request of Borrower, provided to the Administrative Agent, received
between September 30, 2007 and December 31, 2007, the Syndication Parties will consider a one time increase in the Aggregate Commitment of up to $10,000,000.00 (“Discretionary Loan”), subject to the following provisions
and conditions: (a) it will be solely at the discretion of the Syndication Parties and the Administrative Agent whether or not to extend the Discretionary Loan, and nothing in this Section 2.9 shall be taken as a commitment to extend the
Discretionary Loan; (b) if the Discretionary Loan is granted, the increase in the Aggregate Commitment will take effect on a date determined by the Administrative Agent, but no later than March 31, 2008 (“Discretionary Loan
Date”); (c) principal on the Discretionary Loan will be payable in full on the 3-Year Maturity Date and as provided in Section 5.4 hereof, and interest will be payable as provided in Sections 5.2 and 5.4 hereof;
(d) Borrower shall execute one or more promissory notes in the aggregate principal amount equal to the amount of the Discretionary Loan (each a “Discretionary Note” and collectively, the “Discretionary Notes”);
(e) Borrower shall execute such Security Documents, or amendments to existing Security Documents, as the Administrative Agent shall require in order that Borrower’s obligations under the Discretionary Loan and the Discretionary Notes are
secured by all of the Collateral; (f) Borrower shall provide to the 

  

 3 

 
Administrative Agent an endorsement to each of the Title Policies, to include the amount of the Discretionary Loan and to bring the effective date thereof
forward to the Discretionary Loan Date; (g) the Individual 3-Year Commitment of each of the Syndication Parties will be increased in a pro rata amount (based on their respective Individual 3-Year Commitments prior to the effective date of the
Discretionary Loan) to allocate the amount of the Discretionary Loan among each of them, and, unless the Syndication Parties unanimously agree on a different allocation, each must agree to such increase in their Individual 3-Year Commitments;
(h) each Advance under the Discretionary Loan will be treated as, and be deemed to be, a 3-Year Advance and be made as provided in, and be subject to, Sections 2.1, 2.2, 2.4, 2.5, and 2.6, hereof; and (i) Borrower shall take such
other action and execute such other documents as the Administrative Agent shall reasonably require. 
 1.6
Subsections 4.5.1 and 4.5.5 are amended to read as follows: 
 4.5.1 Unused 3-Year Commitment Fee. A fee
for each day during the 3-Year Availability Period (“Unused 3-Year Commitment Fee”) payable in arrears by the tenth calendar day following the close of each Quarter (and on the 3-Year Maturity Date), determined for each day during
such Quarter by (a) multiplying the Commitment Fee Factor (expressed as a daily rate on the basis of a year of 360 days) times (b) the difference between the Aggregate Commitment and the outstanding principal balance owing under the 3-Year
Loans (including the outstanding principal balance owing under the Discretionary Loans, if any) as of the close of the Administrative Agent’s business on such day. The Unused 3-Year Commitment Fee shall be payable by Borrower to the
Administrative Agent, and the Administrative Agent shall distribute the Unused 3-Year Commitment Fee to the Syndication Parties based on their Individual 3-Year Pro Rata Shares. 
 4.5.5 Origination Fee. A one-time, non-refundable, fee in the amount of the Loan Origination Fee, such fee to be paid by
Borrower to the Administrative Agent on the Closing Date, for distribution to the Persons who are Syndication Parties on such date proportionately according to their respective Individual Sharing Percentage on such date. 
 1.7 Section 4.6 and the pricing grid set forth in Section 4.6 are revised to read as follows: 
 4.6 LIBOR Margin; Base Rate Margin; Commitment Fee Factor. The LIBOR Margin, the Base Rate Margin, and the Commitment Fee
Factor shall be determined pursuant to the table below (expressed in basis points) based on the ratio of the Consolidated Entities’ Total Funded Debt to EBITDA (“Debt/EBITDA Ratio”) as of the immediately preceding Fiscal
Quarter end. No later than the time required under Subsection 9.2.2, Borrower shall provide the Administrative Agent with a 

  

 4 

 
Compliance Certificate signed by a Responsible Officer of Borrower reporting, and showing in detail the calculation of, the Debt/EBITDA Ratio as of such
Fiscal Quarter end (among other items). Subject to any corrections to such Compliance Certificate required by the Administrative Agent based on an audit thereof, the LIBOR Margin, Base Rate Margin, and the Commitment Fee Factor shall be set
effective as of the date of the Administrative Agent’s receipt of such Compliance Certificate. In the event the Administrative Agent does not receive such Compliance Certificate on or before the deadline therefor pursuant to
Subsection 9.2.2, the LIBOR Margin, Base Rate Margin, and the Commitment Fee Factor shall be set effective as of such deadline at Pricing Tier I until five (5) Banking Days after such Compliance Certificate is received. No LIBOR
interest rate spread adjustments will be made to any LIBO Rate Loans during the LIBOR Rate Period therefor. The initial LIBOR Margin, Base Rate Margin, and Commitment Fee Factor shall be determined on the basis of the Closing Compliance Certificate
which shall be delivered by Borrower at least three (3) Banking Days prior to the initial 3-Year Advance, and any failure to deliver such required Closing Compliance Certificate by Borrower shall result in the application of Pricing Tier I
below. 
  

									
	 Pricing Tier
	  	 Total Funded Debt/
EBITDA
	  	LIBOR Margin	  	Base Rate Margin	  	Commitment Fee Factor
					
	 I
	  	 > 2.5:1
	  	+300.0 bps	  	+50.0 bps	  	50 bps
					
	 II
	  	 >2.0:1 £ 2.5:1
	  	+250.0 bps	  	+25.0 bps	  	50 bps
					
	 III
	  	 >1.0:1 £ 2.0:1
	  	+200.0 bps	  	0.0 bps	  	37.5 bps
					
	 IV
	  	 £
1.0:1
	  	+175.0 bps	  	0.0 bps	  	37.5 bps

 1.8 Subsection 9.12.4 is deleted in its entirety. 
 1.9 Section 10.1 is hereby amended to read as follows: 
 10.1 Borrowing. Borrower shall not, nor shall Borrower permit any Subsidiary of Borrower to, create, incur, assume or permit
to exist, directly or indirectly, any Indebtedness, except for: (a) Indebtedness of Borrower arising under this Credit Agreement and the other Loan Documents; (b) the GE Indebtedness; (c) Indebtedness, in the maximum amount
outstanding at any time of $5,000,000.00, maturing in no less than five (5) years and incurred solely for the purposes of purchasing fee interests in real estate on which is located a restaurant which Borrower is operating at that time under a
leasehold interest in such real estate; (d) other Indebtedness arising out of Operating Leases in a maximum total value of minimum lease payments due and payable within one year of $25,000,000.00; (e) Indebtedness incurred to refinance
Subordinated Debt, provided that such refinance Indebtedness is itself Subordinated Debt; and (f) other Indebtedness with maturities of not more than one (1) year, including, without limitation, Indebtedness arising under guarantees
permitted under Section 10.5 hereof and Indebtedness arising 

  

 5 

 
under Capital Leases, in a maximum aggregate amount of principal outstanding at any time under such Capital Leases of $5,000,000.00. 
 1.10 Subsection 10.10.2 is hereby amended to read as follows: 
 10.10.2 Payments by Parent. Parent shall not, without the prior written consent of all of the Syndication Parties (which
they may grant or withhold in their discretion) directly or indirectly, declare or pay any dividends (other than dividends payable solely in stock of Parent) on account of any shares of any class (including common or preferred stock) of its capital
stock now or hereafter outstanding, or set aside or otherwise deposit or invest any sums for such purpose, or redeem, retire, defease, purchase or otherwise acquire any shares of any class of its capital stock (or set aside or otherwise deposit or
invest any sums for such purpose) for any consideration other than common stock or apply or set apart any sum, or make any other distribution (by reduction or capital or otherwise) in respect of any such shares or agree to do any of the foregoing;
provided that if no Potential Default or Event of Default shall exist before and after giving effect thereto, Parent may pay dividends, or redeem stock, so long as Borrower has caused Parent to provide to the Administrative Agent written
notice of Parent’s intention to do so at least thirty (30) days prior to Parent declaring, setting aside, or paying any such dividends, accompanied by a proforma Compliance Certificate showing that, after giving effect to the payment of
such dividends, Borrower will be, on a consolidated basis with the other Consolidated Entities, in compliance with each of the financial covenants set forth in Subsections 9.12.1, 9.12.2, and 9.12.3 hereof by a margin of at least .25 to 1.00,
and Borrower will be in compliance with Subsection 9.12.4 hereof; provided further that (a) the aggregate amount of such dividends and stock redemptions shall not exceed $2,000,000.00 during any Fiscal Year with respect to which
Borrower’s Senior Debt to EBITDA is equal to or more than 1.00 to 1.00 on a historic and/or proforma basis. 
 1.11
Section 10.13 is amended to read as follows: 
 10.13 Opening Restaurants. Neither Parent nor Borrower
shall, nor shall Borrower permit any Subsidiary of Borrower to, open more than eight (8) restaurants to be operated by Parent, Borrower and/or any such Subsidiary during any Fiscal Year, commencing with the Fiscal Year beginning in 2006. In
addition, neither Parent nor Borrower shall, nor shall Borrower permit any Subsidiary of Borrower to, open any restaurant to be operated by Parent, Borrower and/or any such Subsidiary until notice thereof, in accordance with Section 9.2.11
hereof, has been provided. 
 2. Conditions to Effectiveness of this Fourth Amendment. The effectiveness of this Fourth Amendment is
subject to satisfaction, in the Administrative Agent’s 

  

 6 

 
sole discretion, of each of the following conditions precedent (the date on which all such conditions precedent are so satisfied shall be the
“Effective Date”): 
 2.1 Delivery of Executed Loan Documents. Borrower shall have delivered to the
Administrative Agent, for the benefit of, and for delivery to, the Administrative Agent and the Syndication Parties, the following documents, each duly executed by Borrower and any other party thereto: 
 A. This Fourth Amendment. 
 B. Acknowledgement and Agreement of both Guarantors. 
 2.2 Representations and
Warranties. The representations and warranties of Borrower in the Credit Agreement shall be true and correct in all material respects on and as of the Effective Date as though made on and as of such date. 
 2.3 No Event of Default. No Event of Default shall have occurred and be continuing under the Credit Agreement as of the Effective
Date of this Fourth Amendment. 
 2.4 Payment of Fees and Expenses. Borrower shall have paid the Administrative Agent,
by wire transfer of immediately available federal funds (a) all fees presently due under the Credit Agreement (as amended by this Fourth Amendment); and (b) all expenses owing as of the Effective Date pursuant to Section 14.1 of the
Credit Agreement, including Agent’s costs and legal fees incurred in connection with the negotiation, preparation, and execution of this Fourth Amendment. 
 3. General Provisions. 
 3.1 No Other Modifications. The Credit Agreement, as
expressly modified herein, shall continue in full force and effect and be binding upon the parties thereto. 
 3.2
Successors and Assigns. This Fourth Amendment shall be binding upon and inure to the benefit of Borrower, Agent, and the Syndication Parties, and their respective successors and assigns, except that Borrower may not assign or transfer its
rights or obligations hereunder without the prior written consent of all the Syndication Parties. 
 3.3 Definitions.
Capitalized terms used, but not defined, in this Fourth Amendment shall have the meaning set forth in the Credit Agreement. 
 3.4 Severability. Should any provision of this Fourth Amendment be deemed unlawful or unenforceable, said provision shall be deemed several and apart from all other provisions of this Fourth Amendment and all remaining provision of
this Fourth Amendment shall be fully enforceable. 
 3.5 Governing Law. To the extent not governed by federal law,
this Fourth Amendment and the rights and obligations of the parties hereto shall be 

  

 7 

 
governed by, interpreted and enforced in accordance with the laws of the State of Colorado. 
 3.6 Headings. The captions or headings in this Fourth Amendment are for convenience only and in no way define, limit or describe
the scope or intent of any provision of this Fourth Amendment. 
 3.7 Counterparts. This Fourth Amendment may be
executed by the parties hereto in separate counterparts, each of which, when so executed and delivered, shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a number
of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. Copies of documents or signature pages bearing original signatures, and executed documents or signature pages delivered by a party by telefax,
facsimile, or e-mail transmission of an Adobe® file
format document (also known as a PDF file) shall, in each such instance, be deemed to be, and shall constitute and be treated as, an original signed document or counterpart, as applicable. Any party delivering an executed counterpart of this Fourth
Amendment by telefax, facsimile, or e-mail transmission of an Adobe® file format document also shall deliver an original executed counterpart of this Fourth Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding
effect of this Fourth Amendment. 
 [Signatures to follow on next page.] 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed as of the
Effective Date. 
  

									
	ADMINISTRATIVE AGENT:	 		 	LaSalle Bank, National Association
					
		 		 		 	 By:
	 	/s/ Darren L. Lemkau
		 		 		 	Name:	 	Darren L. Lemkau
		 		 		 	Title:	 	Senior Vice President

  

									
	BORROWER:	 		 	Champps Operating Corporation
					
		 		 		 	 By:
	 	/s/ David D. Womack
		 		 		 	Name:	 	David D. Womack
		 		 		 	Title:	 	Chief Financial Officer

  

									
	SYNDICATION PARTIES:	 		 	LaSalle Bank, National Association
					
		 		 		 	 By:
	 	/s/ Darren L. Lemkau
		 		 		 	Name:	 	Darren L. Lemkau
		 		 		 	Title:	 	Senior Vice President

  

 9 

 ACKNOWLEDGMENT AND AGREEMENT OF GUARANTOR 
 CHAMPPS ENTERTAINMENT, INC. (“Guarantor”) as guarantor of the indebtedness of Champps Operating Corporation
(“Borrower”) to LaSalle Bank, National Association (“LaSalle”) and the other Syndication Parties as defined above (collectively with LaSalle, the “Lenders”) to that certain Credit Agreement (as
defined in this Fourth Amendment) pursuant to a Guaranty (“Guaranty”) dated as of March 16, 2004, to induce the Lenders to execute the Fourth Amendment, (a) consents to the terms and Borrower’s execution of the Fourth
Amendment; (b) reaffirms Guarantor’s obligations to the Lenders pursuant to the terms of the Guaranty and agrees that (i) Borrower’s execution of this Fourth Amendment shall not relieve such Guarantor of liability under the
Guaranty, and (ii) the Discretionary Loan (as defined in the Credit Agreement), if extended by the Lenders, in their discretion, to the Borrower in the future, will be covered under the Guaranty as a Guaranteed Obligation (as defined therein);
and (c) acknowledges and agrees that the Lenders may amend, restate, extend, renew or otherwise modify the Credit Agreement and any indebtedness of Borrower thereunder and any agreement of Borrower executed in connection with the Credit
Agreement, or enter into any agreement or extend any additional or other credit accommodations, without notifying or obtaining the consent of the undersigned and without impairing the liability of the undersigned under the Guaranty, all
notwithstanding that Guarantor was asked to execute this Acknowledgment and Agreement. 
 Dated: October 5, 2006 
  

			
	Champps Entertainment, Inc.
		
	By:	 	/s/ David D. Womack
	Name:	 	David D. Womack
	Title:	 	Chief Financial Officer

  

 10 

 ACKNOWLEDGMENT AND AGREEMENT OF GUARANTOR 
 CHAMPPS ENTERTAINMENT OF TEXAS, INC. (“Guarantor”) as guarantor of the indebtedness of Champps Operating Corporation
(“Borrower”) to LaSalle Bank, National Association (“LaSalle”) and the other Syndication Parties as defined above (collectively with LaSalle, the “Lenders”) to that certain Credit Agreement (as
defined in this Fourth Amendment) pursuant to a Guaranty (“Guaranty”) dated as of March 16, 2004, to induce the Lenders to execute the Fourth Amendment, (a) consents to the terms and Borrower’s execution of the Fourth
Amendment; (b) reaffirms Guarantor’s obligations to the Lenders pursuant to the terms of the Guaranty and agrees that (i) Borrower’s execution of this Fourth Amendment shall not relieve such Guarantor of liability under the
Guaranty, and (ii) the Discretionary Loan (as defined in the Credit Agreement), if extended by the Lenders, in their discretion, to the Borrower in the future, will be covered under the Guaranty as Guaranteed Obligation (as defined therein);
and (c) acknowledges and agrees that the Lenders may amend, restate, extend, renew or otherwise modify the Credit Agreement and any indebtedness of Borrower thereunder and any agreement of Borrower executed in connection with the Credit
Agreement, or enter into any agreement or extend any additional or other credit accommodations, without notifying or obtaining the consent of the undersigned and without impairing the liability of the undersigned under the Guaranty, all
notwithstanding that Guarantor was asked to execute this Acknowledgment and Agreement. 
 Dated: October 5, 2006 
  

			
	Champps Entertainment of Texas, Inc.
		
	By:	 	/s/ Amy Adams
	Name:	 	Amy Adams
	Title:	 	President

  

 11

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