Document:

Eshibit 10.1-Amendment

    Exhibit
      10.1

    EXECUTION
      COPY

     

    LETTER
      AMENDMENT

     

    Dated
      as
      of September 14, 2006

     

    To
      the
      banks, financial institutions

    and
      other
      institutional lenders

    (collectively,
      the “Lenders”)
      parties

    to
      the
      Credit Agreement referred to

    below
      and
      to Citibank, N.A., as agent

    (the
      “Agent”)
      for
      the Lenders

     

    Ladies
      and Gentlemen:

     

    We
      refer
      to the Credit Agreement dated as of March 13, 2006 (the “Credit
      Agreement”)
      among
      the undersigned and you. Capitalized terms not otherwise defined in this Letter
      Amendment have the same meanings as specified in the Credit
      Agreement.

     

    It
      is
      hereby agreed by you and us that the Credit Agreement is, effective as of the
      date of this Letter Amendment, hereby amended as follows:

     

    (a) The
      definition of Termination Date in Section 1.01 is amended by deleting the date
      “September 15, 2006” and substituting therefor the date “December 1,
      2006”.

     

    (b) Schedule
      I is amended in full to read as set forth as Annex A to this Letter
      Amendment.

     

    The
      Company hereby certifies that, as of the date of this Letter Amendment, the
      representations and warranties contained in Section 4.01 of the Credit Agreement
      are correct on and as of such date and no event has occurred and is continuing
      that constitutes a Default.

     

    This
      Letter Amendment shall become effective as of the date first above written
      when,
      and only when, on or before September 15, 2006, the Agent shall have received
      counterparts of this Letter Amendment executed by the undersigned and all of
      the
      Lenders or, as to any of the Lenders, advice satisfactory to the Agent that
      such
      Lender has executed this Letter Amendment. This Letter Amendment is subject
      to
      the provisions of Section 9.01 of the Credit Agreement.

     

    On
      and
      after the effectiveness of this Letter Amendment, each reference in the Credit
      Agreement to “this Agreement”, “hereunder”, “hereof ” or words
      of like
      import referring to the Credit Agreement, and each reference in the Notes to
      “the Credit Agreement”, “thereunder”, “thereof ” or words of like import
      referring to the Credit Agreement, shall mean and be a reference to the Credit
      Agreement, as amended by this Letter Amendment.

     

    The
      Credit Agreement and the Notes, as specifically amended by this Letter
      Amendment, are and shall continue to be in full force and effect and are hereby
      in all respects ratified and confirmed. The execution, delivery and
      effectiveness of this Letter Amendment shall not, except as expressly provided
      herein, operate as a waiver of any right, power or remedy of any Lender or
      the
      Agent under the Credit Agreement, nor constitute a waiver of any provision
      of
      the Credit Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    2

     

    
      If
        you
        agree to the terms and provisions hereof, please evidence such agreement
        by
        executing and returning at least two counterparts of this Letter Amendment
        to
        Susan L. Hobart, Shearman & Sterling LLP, 599 Lexington Avenue, New York New
        York 10022.

    

     

    This
      Letter Amendment may be executed in any number of counterparts and by different
      parties hereto in separate counterparts, each of which when so executed shall
      be
      deemed to be an original and all of which taken together shall constitute one
      and the same agreement. Delivery of an executed counterpart of a signature
      page
      to this Letter Amendment by telecopier shall be effective as delivery of a
      manually executed counterpart of this Letter Amendment.

     

    This
      Letter Amendment shall be governed by, and construed in accordance with, the
      laws of the State of New York.

     

    Very
      truly yours,

     

    THE
      HERSHEY COMPANY

     

    By: 
      /s/
      David J. West

    Name:
       David J. West

               
      Title:  Senior Vice President, Chief Financial Officer

    

    

    By: 
      /s/
      Rosa C. Stroh

    Name: 
      Rosa C. Stroh

    Title: 
      Vice President and Treasurer

     

    Agreed
      as
      of the date first above written:

     

    CITIBANK,
      N.A.,

    as
      Agent
      and as Lender

     

    By   
      /s/ Anish M. Shah  

    Title: 
      Vice President

     

    BANK
      OF
      AMERICA, N.A.

     

    By  
       /s/ J. Casy Cosgrove

       
   
      Title:  Vice President

     

    UBS
      LOAN
      FINANCE LLC

     

    By   
      /s/ Richard L. Tavrow

           
      Title:  Director

     

    By   
      /s/ Irja R. Otsa 

       
      Title:  Associate Director

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    ANNEX
      A
      to Letter Amendment

     

    SCHEDULE
      I TO THE AMENDMENT AND RESTATEMENT

     

    COMMITMENTS
      AND APPLICABLE LENDING OFFICES

     

    
      	
              Name
                of Initial

               Lender

            	
              Commitment

            	
              Domestic
                Lending Office

            	
              Eurodollar
                Lending Office

            
	
              Bank
                of America, 

              N.A.

            	
              $66,666,666.50

            	
              901
                Main Street, 14th
                Floor

              Dallas,
                TX 75202

              Attn:
                Annette
                Hunt

              T:
                (214) 209-4108

              F:
                (214) 290-8378

            	
              901
                Main Street, 14th
                Floor

              Dallas,
                TX 75202

              Attn:
                Annette
                Hunt

              T:
                (214) 209-4108

              F:
                (214) 290-8378

            
	
              Citibank,
                N.A.

            	
              $66,666,667.00

            	
              Two
                Penns Way

              New
                Castle, DE 19720

              Attn:
                Bank Loan 

              Syndications

              T:
                (302) 894-6029

              F:
                (212) 994-0961

            	
              Two
                Penns Way

              New
                Castle, DE 19720

              Attn:
                Bank Loan 

              Syndications

              T:
                (302) 894-6029

              F:
                (212) 994-0961

            
	
              UBS
                Loan Finance

               LLC

            	
              $66,666,666.50

            	
              677
                Washington Blvd.

              Stamford,
                CT 06901

              Attn:
                Safraz Hassan

              T:
                (203) 719-3143

              F:
                (203) 719-3888 

            	
              677
                Washington Blvd.

              Stamford,
                CT 06901

              Attn:
                Safraz Hassan

              T:
                (203) 719-3143

              F:
                (203) 719-3888 

            

    

    

    TOTAL
      OF                   
       $200,000,000

    COMMITMENTSexhibit101

    Exhibit
      10.1

    
 

    SIXTH
      AMENDMENT TO CREDIT AGREEMENT

    

    

    THE
      STEAK N SHAKE COMPANY,
      an
      Indiana corporation (the “Company”) and FIFTH
      THIRD BANK (CENTRAL INDIANA),
      a
      Michigan banking corporation, formerly known as Fifth Third Bank, Indiana
      (Central) (the “Bank”), being parties to that certain Credit Agreement dated as
      of November 16, 2001, as previously amended (collectively, the “Agreement”)
      agree to further amend the Agreement by this Sixth Amendment to Credit Agreement
      (this “Amendment”) as follows.

    

    

    1. DEFINITIONS.
      All
      defined terms used herein which are not otherwise defined in this Amendment
      shall have their respective meanings set forth in the Agreement. 

    

    
      	 	
              (a)

            	
              Amended
                Definitions.
                The following definitions appearing under Section 1 of the Agreement
                are
                hereby amended and restated in their respective entireties as
                follows:

            

    

    

    
      	s.  	
              “Interest
                Period”
                means each consecutive one (1), seven (7), thirty (30), sixty (60),
                ninety
                (90), or one hundred twenty (120) day period for which the Company
                shall
                have selected the LIBOR-based Rate, effective as of the first day
                of each
                Interest Period and ending on the last day of each Interest Period;
                provided, that if any Interest Period is selected to end on a date
                for
                which there is no numerical equivalent to the date on which the Interest
                Period commenced, then the Interest Period shall end instead on the
                last
                day of such calendar month.

            

    

    

    z. “London
      Interbank Offered Rate”
means
      as to each Interest Period, the offered rate for U.S. Dollar deposits of not
      less than One Million and 00/100 Dollars ($1,000,000.00) as of 11:00 a.m. City
      of London, England time two (2) London Business Days prior to the first day
      of
      each Interest Period as shown on the display designated as “British Bankers
      Association Interest Settlement Rates” on the Telerate System (“Telerate”), page
      3750 or page 3740, or such other page or pages as may replace such pages on
      Telerate for the purpose of displaying such rate or any successor rate reporting
      system rounded upward to the nearest eighth of one-percent; provided, however,
      that if such rate is not available on the Telerate then such offered rate shall
      be otherwise independently determined by the Bank from an alternate,
      substantially similar independent source available to the Bank or shall be
      calculated by the Bank by a substantially similar methodology as that
      theretofore used to determine such offered rate in Telerate. 

    

    

    
      	 	
              (b)

            	
              New
                Definition.
                The following new definition is hereby added to Section 1 of the
                Agreement
                as follows:

            

    

    

    uu. “Sixth
      Amendment”
means
      that certain agreement entitled “Sixth Amendment to Credit Agreement” entered
      into by and between the Company and the Bank dated as of September 11, 2006,
      for
      the purpose of amending this Agreement.

    

    2.  GUARANTIES. Section
      4
      of the Agreement is hereby amended and restated in its entirety as
      follows:

    

    Section
      4. GUARANTIES.
      The
      Obligations shall be supported by the unconditional guaranty of prompt payment
      of each of Steak n Shake Operations, Inc., an Indiana corporation, Steak n
      Shake
      Enterprises, Inc., an Indiana corporation, and SnS Investment Company, an
      Indiana corporation ( each a “Guarantor” and collectively, the “Guarantors”),
      which shall be evidenced by a Guaranty Agreement ( each a “Guaranty” and
      collectively, the “Guaranties”) in the form attached hereto as Exhibit
      “D”
      and
      appropriately completed for each Guarantor.

    

    3. COMPLIANCE
      WITH LEGAL AND REGULATORY REQUIREMENTS.
      Section
      5(f) of the Agreement is hereby amended and restated in its entirety as
      follows:

    

    f. Compliance
      with Legal and Regulatory Requirements.
      The
      Company shall use its best efforts to maintain and cause each Subsidiary to
      use
      its best efforts to maintain material compliance with the applicable provisions
      of all federal, state and local statutes, ordinances and regulations and any
      court orders or orders of regulatory authorities issued thereunder. 

    

    4. GUARANTIES.
      Section
      6(c) of the Agreement is hereby amended by the addition of the following
      clause:

    

    
      	(v)  	
              guaranties
                made in the ordinary course of business in conjunction with the
                acquisition of leasehold rights in land, buildings, or
                offices.

            

    

    

    5. DEBT.
      Section
      6(j) of the Agreement limiting the amount of indebtedness for borrowed money
      which may be incurred by the Company is hereby deleted in its entirety and
      of no
      further force or effect.

    

    

    6. REPRESENTATIONS
      AND WARRANTIES.
      In
      order to induce the Bank to enter into this Amendment, the Company affirms
      that
      the representations and warranties contained in the Agreement are correct as
      of
      the date of this Amendment, except that: (i) they shall be deemed to also refer
      to this Amendment as well as all documents named herein; (ii) Section 3(d)
      of
      the Agreement shall be deemed also to refer to the most recent audited and
      unaudited financial statements of the Company delivered to the Bank; and (iii)
      Section 3(l) of the Agreement containing a representation of the current
      Subsidiaries of the Company shall be deemed to be modified by deleting the
      references to Steak n Shake, L.P., an Indiana limited partnership, and to SnSTM,
      Inc., a Delaware corporation, appearing therein, and by adding Steak n Shake
      Enterprises, Inc., an Indiana corporation, and Steak n Shake, LLC, an Indiana
      limited liability company. Further, the Company hereby represents and warrants
      to the Bank that the Company formed Steak n Shake Merger Corporation, an Indiana
      corporation, in December, 2004, and merged Steak n Shake Merger Corporation
      into
      Kelley Restaurants, Inc. on December 28, 2004, with Kelley Restaurants, Inc.
      being the surviving entity which then merged on or about December 22, 2005,
      into
      Steak n Shake Operations, Inc., with Steak n Shake Operations, Inc. being the
      surviving entity. The Company further represents and warrants to the Bank that
      it acquired all of the assets of Creative Restaurants, Inc. on or about July
      6,
      2006, and created Steak n Shake Enterprises, Inc., an Indiana corporation,
      as a
      Subsidiary on December 9, 2005, and created Steak n Shake, LLC, an Indiana
      limited liability company, as a Subsidiary on December 13, 2005. Steak n Shake,
      L.P., an Indiana limited partnership, merged in Steak n Shake Operations, Inc.
      effective December 22, 2005.

    

    7. WAIVERS.
      The
      Bank hereby consents to: (i) the Company forming Steak n Shake Merger
      Corporation, an Indiana corporation, in December, 2004; (ii) merging said Steak
      n Shake Merger Corporation with and into Kelley Restaurants, Inc. on December
      28, 2004, with Kelley Restaurants, Inc. being the surviving entity; (iii)
      merging Kelley Restaurants, Inc. into Steak n Shake Operations, Inc. on or
      about
      December 22, 2005, with Steak n Shake Operations, Inc. being the surviving
      entity; (iv) the acquisition by the Company of all of the assets of Creative
      Restaurants, Inc. on or about July 6, 2006; (v) the creation by the Company
      of
      Steak n Shake Enterprises, Inc., an Indiana corporation, as a Subsidiary on
      December 9, 2005; (vi) the creation by the Company of Steak n Shake, LLC, an
      Indiana limited liability company, as a Subsidiary on December 13, 2005;
      (vii)the merger of Steak n Shake, L.P., an Indiana limited partnership, into
      Steak n Shake Operations, Inc. effective December 22, 2005, with Steak n Shake
      Operations, Inc. being the surviving entity, and the Bank waives any violation
      of Section 5(e) of the Agreement which may otherwise be deemed to have occurred
      as a result of any or all of the foregoing. Further, the Bank hereby waives
      any
      and all failures by the Company to timely deliver to the Bank the compliance
      certificates required to be delivered to the Bank on or prior to the date hereof
      pursuant to Section 5(b)(vi) of the Agreement. Nothing contained in this Section
      4 shall be deemed to be waiver of any other term or provision of the Agreement,
      whether now or in the future, nor shall the Bank be deemed to have waived the
      same or similar provisions in the future unless specifically stated by the
      Bank
      in writing.

    

    

    8. EVENTS
      OF DEFAULT.
      The
      Company certifies to the Bank that no Event of Default or Unmatured Event of
      Default under the Agreement, as amended by this Amendment, has occurred and
      is
      continuing as of the date of this Amendment except as may be specifically waived
      herein.

     

    9. CONDITIONS
      PRECEDENT.
      As
      conditions precedent to the effectiveness of this Amendment, the Bank shall
      have
      received the following contemporaneously with execution and delivery of this
      Amendment, each duly executed, dated and in form and substance satisfactory
      to
      the Bank:

    

    
      	 	
              (i)

            	
              This
                Amendment duly executed by the
                Company.

            

    

    

    
      	 	
              (ii)

            	
              The
                Reaffirmation of Guaranty Agreement in the form attached hereto as
                Exhibit
                "A"
                duly executed by Steak n Shake Operations,
                Inc.

            

    

    

    
      	 	
              (iii)

            	
              The
                Guaranty Agreement in the form attached hereto as Exhibit
                "B"
                duly executed by Steak
                n Shake Enterprises, Inc.

            

    

    

    
      	 	
              (iv)

            	
              The
                Reaffirmation of Guaranty Agreement in the form attached hereto as
                Exhibit
                "C"
                duly executed by SnS Investment
                Company.

            

    

    

    
      	 	
              (v)

            	
              Resolutions
                of the Board of Directors of the Company authorizing the execution,
                delivery and performance, respectively, of this Amendment and all
                other
                Loan Documents provided for in this Amendment to which the Company
                is a
                party certified by the Secretary of the Board of Directors of the
                Company
                as being in full force and effect and duly adopted as of the date
                hereof.

            

    

    

    
      	 	
              (vi)

            	
              The
                Certificate of the Secretary of the Board of Directors of the Company
                certifying the names of the officer or officers authorized to execute
                this
                Amendment and all other Loan Documents provided for in this Amendment
                to
                which the Company is a party, together with a sample of the true
                signature
                of each such officer, dated as of the date of this
                Amendment.

            

    

    

    
      	 	
              (vii)

            	
              Resolutions
                of the Board of Directors of Steak n Shake Operations, Inc., an Indiana
                corporation, authorizing the execution, delivery and performance,
                respectively, of its Reaffirmation of Guaranty Agreement and all
                other
                Loan Documents provided for in this Amendment to which Steak n Shake
                Operations, Inc. is a party certified by the Secretary of the Board
                of
                Directors of Steak n Shake Operations, Inc. as being in full force
                and
                effect and duly adopted as of the date
                hereof.

            

    

    

    
      	 	
              (viii)

            	
              The
                Certificate of the Secretary of the Board of Directors of Steak n
                Shake
                Operations, Inc. certifying the names of the officer or officers
                authorized to execute its Reaffirmation of Guaranty Agreement and
                all
                other Loan Documents provided for in this Amendment to which Steak
                n Shake
                Operations, Inc. is a party, together with a sample of the true signature
                of each such officer, dated as of the date of this
                Amendment.

            

    

    

    
      	 	
              (ix)

            	
              Resolutions
                of the Board of Directors of Steak n Shake Enterprises, Inc., an
                Indiana
                corporation, authorizing the execution, delivery and performance,
                respectively, of its Guaranty Agreement and all other Loan Documents
                provided for in this Amendment to which Steak n Shake Enterprises,
                Inc. is
                a party certified by the Secretary of the Board of Directors of Steak
                n
                Shake Enterprises, Inc. as being in full force and effect and duly
                adopted
                as of the date hereof.

            

    

    

    
      	 	
              (x)

            	
              The
                Certificate of the Secretary of the Board of Directors of Steak n
                Shake
                Enterprises, Inc. certifying the names of the officer or officers
                authorized to execute its Guaranty Agreement and all other Loan Documents
                provided for in this Amendment to which Steak n Shake Enterprises,
                Inc. is
                a party, together with a sample of the true signature of each such
                officer, dated as of the date of this
                Amendment.

            

    

    

    
      	 	
              (xi)

            	
              Resolutions
                of the Board of Directors of SnS Investment Company, an Indiana
                corporation, authorizing the execution, delivery and performance,
                respectively, of its Reaffirmation of Guaranty Agreement and all
                other
                Loan Documents provided for in this Amendment to which SnS Investment
                Company is a party certified by the Secretary of the Board of Directors
                of
                SnS Investment Company as being in full force and effect and duly
                adopted
                as of the date hereof.

            

    

    

    
      	 	
              (xii)

            	
              The
                Certificate of the Secretary of the Board of Directors of SnS Investment
                Company certifying the names of the officer or officers authorized
                to
                execute its Reaffirmation of Guaranty Agreement and all other Loan
                Documents provided for in this Amendment to which SnS Investment
                Company
                is a party, together with a sample of the true signature of each
                such
                officer, dated as of the date of this
                Amendment.

            

    

    

    
      	 	
              (xiii)

            	
              A
                complete copy of the Articles of Incorporation for Steak n Shake
                Enterprises, Inc. certified as complete and correct as of a recent
                date by
                the Indiana Secretary of State.

            

    

    

    
      	 	
              (xiv)

            	
              A
                complete copy of the By-Laws of Steak n Shake Enterprises, Inc. certified
                as complete and correct by the Secretary of the Board of Directors
                of
                Steak n Shake Enterprises, Inc. as the date
                hereof.

            

    

    

    
      	 	
              (xv)

            	
              A
                Certificate of Existence for Steak n Shake Enterprises, Inc. issued
                as of
                a recent date by the Indiana Secretary of
                State.

            

    

    

    
      	 	
              (xvi)

            	
              A
                Certificate of Solvency completed by Steak n Shake Enterprises, Inc.
                in
                the form attached to its Guaranty Agreement completed by Steak n
                Shake
                Enterprises, Inc. as of the date
                hereof.

            

    

    

    
      	 	
              (xvii)

            	
              Payment
                of the fees of counsel to the Bank incurred in connection with this
                Amendment (Kroger, Gardis & Regas,
                L.L.P.).

            

    

    

    10. PRIOR
      AGREEMENTS.
      The
      Agreement, as amended by this Amendment, supersedes all previous agreements
      and
      commitments made or issued by the Bank with respect to the Loans and all other
      subjects of this Amendment, including, without limitation, any oral or written
      proposals which may have been made or issued by the Bank.

    

    11 EFFECT
      OF AMENDMENT.
      The
      provisions contained herein shall serve to supplement and amend the provisions
      of the Agreement. To the extent that the terms of this Amendment conflict with
      the terms of the Agreement, the provisions of this Amendment shall control
      in
      all respects.

    

    12. REAFFIRMATION.
      Except
      as expressly amended by this Amendment, all of the terms and conditions of
      the
      Agreement shall remain in full force and effect as originally written and as
      previously amended.

    

    13. COUNTERPARTS.
      This
      Amendment may be executed in any number of counterparts, each of which shall
      be
      an original and all of which when taken together shall be one and the same
      agreement. 

    

    IN
      WITNESS WHEREOF,
      the
      Company and the Bank by their respective duly authorized officers have executed
      and delivered in Indiana this Sixth Amendment Credit Agreement as
      of September 11, 2006.

    

    
      	 	 	 	 	 	 	 	
              THE
                STEAK N SHAKE COMPANY,
                an Indiana corporation

            

    

    

    

    

    By:   
      /s/ David C. Milne      

     

    

    David
      C. Milne, Secretary   (Printed
      Name and Title) 

     

     

    FIFTH
      THIRD BANK (CENTRAL INDIANA),
      a
      Michigan banking corporation

    

    

    

    By:  _/s/
      Andrew M. Cardimen________________________

    
      	 	 	
              Andrew
                M. Cardimen, Vice President and Senior Relationship
                Manager

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      OF EXHIBITS*

    

    

    
      	
              Exhibit
                "A"

            	
              -

            	
              Reaffirmation
                of Guaranty Agreement (Steak n Shake Operations,
                Inc.)

            

    

    

    
      	
              Exhibit
                "B"

            	
              -

            	
              Guaranty
                Agreement (Steak n Shake Enterprises,
                Inc.)

            

    

    

    
      	
              Exhibit
                "C"

            	
              -

            	
              Reaffirmation
                of Guaranty Agreement (SnS Investment
                Company)

            

    

     

    * Exhibits not included in filing

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]