Document:

Exhibit 10.3

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER

THIS SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT AND WAIVER, dated as of May 14, 2012 (the “Agreement”), is entered into among Ruby Tuesday, Inc., a Georgia corporation (the “Borrower”), the Lenders party hereto and Bank of America, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Borrower, the Lenders and the Administrative Agent entered into that certain Revolving Credit Agreement dated as of December 1, 2010 (as amended or modified from time to time, the “Credit Agreement”);

WHEREAS, the Borrower, the Lenders and the Administrative Agent entered into that certain First Amendment to Revolving Credit Agreement, dated as of July 19, 2011;

WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement as set forth below subject to the terms and conditions specified in this Agreement;

WHEREAS, the Borrower has requested that the Lenders provide a waiver of any existing Default or Event of Default listed under Section 2 hereof and continue to make available to the Borrower the Loans provided under the Credit Agreement; and

WHEREAS, the Lenders are willing to provide a waiver of any existing Defaults and/or Events of Default listed under Section 2 hereof, amend the Credit Agreement as provided below, and continue to make Loans to the Borrower subject to the terms and conditions specified in this Agreement;

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

1.           Amendments.      The Credit Agreement is hereby amended as follows:

(a)           The following definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order to read as follows:

“Collateral Documents” means a collective reference to the Pledge Agreement and such other security documents as may be executed and delivered by the Loan Parties pursuant to the terms of Section 6.13.

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

“Pledge Agreement” means that certain pledge agreement dated as of the Second Amendment Effective Date in favor of the Administrative Agent, for the benefit of the holders of the Obligations, executed by each of the Loan Parties and the Administrative Agent, as amended or modified from time to time.

“Pledged Collateral” has the meaning set forth in the Pledge Agreement.

 

  

  

  

“Second Amendment Effective Date” means May 14, 2012.

“2012 Indenture” means that certain indenture dated as of the Second Amendment Effective Date by and among the Loan Parties and Wells Fargo Bank, National Association, as trustee.

“2012 Senior Note Documents” means the 2012 Indenture, the 2012 Senior Notes and all other documents executed and delivered in connection with the 2012 Indenture and the 2012 Senior Notes, the proceeds of which shall, in part, be used to prepay the Indebtedness under the Senior Note Purchase Agreement and the Senior Notes.

“2012 Senior Notes” means the “Notes” under and as defined in the 2012 Indenture.

(b)           The following definitions in Section 1.1 of the Credit Agreement are hereby amended to read as follows:

“Aggregate Revolving Commitment Amount” means the aggregate principal amount of the Revolving Commitments of all Lenders from time to time, as such aggregate principal amount shall be reduced or increased pursuant to the terms hereof.  On the Second Amendment Effective Date, the Aggregate Revolving Commitment Amount equals TWO HUNDRED MILLION DOLLARS ($200,000,000).

“Consolidated EBITDA” means, for the Borrower and its Subsidiaries for any period, an amount equal to the sum of (a) Consolidated Net Income for such period minus (b) to the extent included in calculating Consolidated Net Income for such period, any non-cash gains during such period minus (c) any actual cash payments made during such period related to non-cash charges included in (d)(v) below for a prior period plus (d) to the extent deducted in determining Consolidated Net Income for such period, (i) Consolidated Interest Expense, (ii) income tax expense determined on a consolidated basis in accordance with GAAP, (iii) depreciation and amortization determined on a consolidated basis in accordance with GAAP, (iv) payments made by the Borrower in respect of Guaranties made to support Indebtedness of Franchisees in an aggregate amount not to exceed (A) $15,000,000 during any four fiscal quarter period and (B) $25,000,000 during the term of this Agreement, (v) all other non cash charges, in each case, that do not represent a cash item in such period and (vi) cash charges incurred in connection with the closing of any stores or units during the 12 month period following the Second Amendment Effective Date; provided, that, the aggregate amount of cash charges added back pursuant to this clause (vi) for all periods shall not exceed $10,000,000, all as determined in accordance with GAAP.

“Consolidated Lease Expense” means, for any period, the aggregate amount of fixed and contingent rental and operating lease expense payable by the Borrower and its Subsidiaries with respect to leases of real and personal property (excluding (x) Capital Lease Obligations and (y) those cash charges for lease termination costs in connection with the closing of any stores or units during the 12 month period following the Second Amendment Effective Date, in an aggregate amount not to exceed $10,000,000, that are added back to Consolidated EBITDA pursuant to clause (d)(vi) of the definition thereof) determined on a consolidated basis in accordance with GAAP for such period.

 

  

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“LC Commitment” means that portion of the Aggregate Revolving Commitment Amount that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount not to exceed $40,000,000.

“Loan Documents” means, collectively, this Agreement, the Collateral Documents, the Notes (if any), any agreement creating or perfecting rights in Cash Collateral pursuant to the provisions of Section 2.24, the LC Documents, the Fee Letter, all Notices of Borrowing, the Subsidiary Guaranty Agreement, the Franchisee Facility Guaranty Agreement, the Servicing Agreement, all Notices of Conversion/Continuation and any and all other instruments, agreements, documents and writings executed in connection with any of the foregoing.

“Swingline Commitment” means the commitment of the Swingline Lender to make Swingline Loans in an aggregate principal amount at any time outstanding not to exceed $20,000,000.

(c)           The second proviso to the first sentence of the definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

; provided, further, that if at any time the Borrower shall have failed to deliver such financial statements and such certificate, the Applicable Margin shall be at Level VI until such time as such financial statements and certificate are delivered, at which time the Applicable Margin shall be determined as provided above.

(d)           Clause (d) of the definition of “Change in Control” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

(d) the occurrence of a “Change in Control” (or any equivalent term thereof) under and as defined in the 2012 Senior Note Documents.

(e)           Sections 2.12(b)(ii) and 2.12(b)(iii) of the Credit Agreement are hereby amended to read as follows:

(ii)           Dispositions and Involuntary Dispositions.  The Borrower shall prepay the Loans and/or provide Cash Collateral for the LC Exposure, Franchisee LC Exposure and/or Franchisee Loan Exposure as hereinafter provided, in an aggregate amount equal to 100% of the Net Cash Proceeds of all sales, transfers and dispositions of property pursuant to Sections 8.5(d) or (e) to the extent that the aggregate of such Net Cash Proceeds exceeds $50,000,000 in the aggregate in any fiscal year and/or $150,000,000 in the aggregate during the term of this Agreement, to the extent such Net Cash Proceeds are not reinvested in Eligible Assets within 180 days of the date of such sale, transfer or disposition.  Any prepayment pursuant to this clause (ii) shall permanently reduce the Aggregate Revolving Commitment Amount on a dollar for dollar basis and shall be applied as set forth in clause (iv) below.

(iii)           Debt Issuances. Immediately upon receipt by the Borrower or any Subsidiary of the Net Cash Proceeds of any Debt Issuance, the Borrower shall prepay the Loans and/or provide Cash Collateral for the LC Exposure, Franchisee LC Exposure and/or Franchisee Loan Exposure as hereinafter 

 

  

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provided, in an aggregate amount equal to 100% of such Net Cash Proceeds.  Any prepayment pursuant to this clause (iii) shall be applied as set forth in clause (iv) below.

(f)           Section 5.16 of the Credit Agreement is hereby amended to read as follows:

Section 5.16          Senior Indebtedness.

The Obligations rank at least pari passu in right of payment with all obligations of the Loan Parties under the 2012 Senior Note Documents.  The Indebtedness under the 2012 Senior Note Documents is unsecured Indebtedness and does not contain any covenants or defaults, taken as a whole, that are materially more restrictive than those contained in this Agreement.

(g)           Section 5.17 is hereby added to the Credit Agreement to read as follows:

Section 5.17           Perfection of Security Interests.

The Pledge Agreement creates a valid security interest in, and Lien on, the Pledged Collateral, which security interests and Liens are currently perfected security interests and Liens in favor of the Administrative Agent, prior to all other Liens.

(h)           Section 6.10 of the Credit Agreement is hereby amended to read as follows:

Section 6.10           Additional Subsidiaries.

If any additional Material Domestic Subsidiary is acquired or formed after the Closing Date or any Subsidiary becomes a Material Domestic Subsidiary after the Closing Date, the Borrower will, within thirty (30) days after such Material Domestic Subsidiary is acquired or formed or such Subsidiary becomes a Material Domestic Subsidiary, notify the Administrative Agent and the Lenders thereof and will (A) cause such Material Domestic Subsidiary to become a Loan Party by executing an agreement in the form of Annex 1 to Exhibit D in form and substance satisfactory to the Administrative Agent and (B) cause such Material Domestic Subsidiary to deliver simultaneously therewith similar documents applicable to such Material Domestic Subsidiary required under Section 4.1 as reasonably requested by the Administrative Agent, a supplement to the Pledge Agreement and all certificates evidencing any certificated Equity Interests required to be pledged pursuant to the Pledge Agreement, together with duly executed in blank and undated stock powers attached thereto, and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in clauses (A) and (B)), all in form and substance reasonably satisfactory to the Administrative Agent.

(i)           Section 6.11 of the Credit Agreement is hereby amended to read as follows:

Section 6.11           Additional Guaranties.

If at the end of any Fiscal Quarter of the Borrower:

 

  

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(a)           the total assets of Subsidiaries that are not Guarantors constitute more than five percent (5%) of the total assets of the Consolidated Companies, or

(b)           the Consolidated Net Income of Subsidiaries that are not Guarantors constitute more than five percent (5%) of the Consolidated Net Income of the Consolidated Companies,

then the Borrower shall (i) notify the Administrative Agent thereof in the certificate delivered pursuant to Section 6.1(c) for such fiscal quarter and (ii) within 15 days thereafter, (A) cause the appropriate number of Subsidiaries to become Guarantors (by execution of an agreement in the form of Annex 1 to Exhibit D in form and substance satisfactory to the Administrative Agent and (B) cause such Subsidiary to deliver simultaneously therewith similar documents required under Section 4.1 as reasonably requested by the Administrative Agent, a supplement to the Pledge Agreement and all certificates evidencing any certificated Equity Interests required to be pledged pursuant to the Pledge Agreement, together with duly executed in blank and undated stock powers attached thereto, and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in clauses (A) and (B)), all in form and substance reasonably satisfactory to the Administrative Agent.

(j)           Section 6.12 of the Credit Agreement is hereby amended to read as follows:

Section 6.12           Additional Guarantors.

Notwithstanding the provisions of Section 6.10, if at any time any Domestic Subsidiary that is not a Guarantor provides a guarantee of any Person’s obligations with respect to the 2012 Senior Note Documents, then promptly (and in any event within five (5) days), the Borrower will cause such Domestic Subsidiary to (A) become a Guarantor by executing and delivering to the Administrative Agent executing an agreement in the form of Annex 1 to Exhibit D in form and substance satisfactory to the Administrative Agent or such other documents as the Administrative Agent shall reasonably deem appropriate for such purpose and (B) deliver simultaneously therewith similar documents applicable to such Domestic Subsidiary required under Section 4.1 as reasonably requested by the Administrative Agent, a supplement to the Pledge Agreement and all certificates evidencing any certificated Equity Interests required to be pledged pursuant to the Pledge Agreement, together with duly executed in blank and undated stock powers attached thereto, and favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in clauses (A) and (B)), all in form, content and scope reasonably satisfactory to the Administrative Agent.

(k)           Section 6.13 is hereby added to the Credit Agreement to read as follows:

Section 6.13           Pledged Assets.

The Borrower will cause (a) 100% of the issued and outstanding Equity Interests of each Domestic Subsidiary (other than the Equity Interests of RT Smith, LLC, RT Millington, LLC and RT O’Toole, LLC, in each case, solely for so long as any Lien on such Equity Interests existing on the Second Amendment Effective Date remains in 

 

  

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effect; provided that in the event of the termination or release of any such Lien, the applicable Loan Party promptly shall cause such Equity Interests to be subject to a security interest in favor of the Administrative Agent, for the benefit of the holders of the Obligations, pursuant to the terms of the Pledge Agreement) owned by the Borrower or any other Loan Party and (b) 66% (or such greater percentage that, due to a change in an applicable Law after the date hereof, (1) could not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent and (2) could not reasonably be expected to cause any material adverse tax consequences) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956 2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956 2(c)(2)) in each Foreign Subsidiary directly owned by a Loan Party to be subject at all times to a first priority, perfected Lien in favor of the Administrative Agent, for the benefit of the holders of the Obligations, pursuant to the terms and conditions of the Collateral Documents, together with opinions of counsel and any filings and deliveries reasonably necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Administrative Agent.

(l)           Section 7.1 of the Credit Agreement is hereby amended to read as follows:

Section 7.1             Minimum Fixed Charge Coverage Ratio.

The Consolidated Companies will maintain as of the last day of each Fiscal Quarter, a Fixed Charge Coverage Ratio of not less than (a) 1.75 to 1.0 from the Second Amendment Effective Date through and including June 3, 2014 and (b) 1.85 to 1.0 thereafter.

(m)           Section 7.2 of the Credit Agreement is hereby amended to read as follows:

Section 7.2              Maximum Adjusted Total Debt to EBITDAR Ratio.

The Consolidated Companies will maintain, as of the last day of each Fiscal Quarter, an Adjusted Total Debt to EBITDAR Ratio of not greater than (a) 4.50 to 1.0 from the Second Amendment Effective Date through and including June 4, 2013 and (b) 4.25 to 1.0 thereafter.

(n)           Section 8.1(b) of the Credit Agreement is hereby amended to read as follows:

(b)           any Liens on any property or assets of the Borrower or any Subsidiary existing on the Second Amendment Effective Date set forth on Schedule 8.1; provided that such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary;

(o)           The word “and” is hereby deleted from the end of Section 8.1(e) of the Credit Agreement,  the period is hereby deleted and “; and” is hereby added at the end of Section 8.1(f) and a new Section 8.1(g) is hereby added to Section 8.1 to read as follows:

(g)           Liens in favor of the Administrative Agent to secure the Obligations.

 

  

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(p)           Sections 8.3(g) and (h) of the Credit Agreement are hereby amended to read as follows:

(g)           Investments in franchise operators through the Franchise Partner Program; provided, that (i) no Default or Event of Default shall have occurred and be continuing before or after giving effect to such Investment, (ii) the Adjusted Total Debt to EBITDAR Ratio on a Pro Forma Basis after giving effect to such Investment is at least 0.25:1.0 less than (or one quarter-turn inside) the maximum Adjusted Total Debt to EBITDAR Ratio permitted by Section 7.2 at such time and (iii) the Borrower shall have at least $25,000,000 of availability under the Aggregate Revolving Commitments after giving effect to such Investment;

(h)           Investments in franchise operators through the Traditional Franchisee program pursuant to the purchase option agreements entered into with those operators; provided, that (i) no Default or Event of Default shall have occurred and be continuing before or after giving effect to such Investment, (ii) the Adjusted Total Debt to EBITDAR Ratio on a Pro Forma Basis after giving effect to such Investment is at least 0.25:1.0 less than (or one quarter-turn inside) the maximum Adjusted Total Debt to EBITDAR Ratio permitted by Section 7.2 at such time and (iii) Borrower shall have at least $25,000,000 of availability under the Aggregate Revolving Commitments after giving effect to such Investment;

(q)           Clauses (v) and (vi) of Section 8.3(j) of the Credit Agreement are hereby amended to read as follows:

(v)           the Borrower shall have delivered to the Administrative Agent not less than five (5) days prior to the consummation of such Acquisition a pro forma compliance certificate demonstrating that the Adjusted Total Debt to EBITDAR Ratio on a Pro Forma Basis (after giving effect to such Acquisition) is at least 0.25:1.0 less than (or one quarter-turn inside) the maximum Adjusted Total Debt to EBITDAR Ratio permitted by Section 7.2 at such time; and

(vi)           the Borrower has at least $25,000,000 of availability under the Aggregate Revolving Commitments after giving effect to such Acquisition.

(r)           Section 8.4(c) of the Credit Agreement is hereby amended to read as follows:

(c)           the Borrower may pay cash dividends on, and make cash redemptions of, the Equity Interests of the Borrower; provided, that (i) no Default or Event of Default shall have occurred and be continuing before or after giving effect to the payment of such dividend or redemption, (ii) the Adjusted Total Debt to EBITDAR Ratio on a Pro Forma Basis after giving effect to the payment of any such dividend or redemption is at least 0.25:1.0 less than (or one quarter-turn inside) the maximum Adjusted Total Debt to EBITDAR Ratio permitted by Section 7.2 at such time and (iii) the Borrower has at least $25,000,000 of availability under the Aggregate Revolving Commitments after giving effect to the payment of such dividend or redemption.

(s)           Section 8.5(e) of the Credit Agreement is hereby amended to read as follows:

(e)           sales of Consolidated Assets pursuant to Sale and Leaseback Transactions with an aggregate book value, when aggregated with all other such sales 

 

  

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since the Closing Date pursuant to Sale and Leaseback Transactions, not exceeding $200,000,000 on the date of such transfer; provided, that no Default or Event of Default has occurred and is continuing or would occur as a result of such transaction.

(t)           Clause (i) of the proviso to Section 8.7 of the Credit Agreement is hereby amended to read as follows:

(i) the foregoing shall not apply to restrictions or conditions set forth in Schedule 8.7 or restrictions or conditions imposed by law or by this Agreement or any other Loan Document or the 2012 Senior Note Documents,

(u)           Section 8.12(b) of the Credit Agreement is hereby amended to read as follows:

(b)           (i) unsecured Indebtedness of the Borrower and the Guarantors under the 2012 Senior Note Documents, in an aggregate principal amount not to exceed $350,000,000 and (ii) refinancings thereof; provided that the terms of any such refinancing Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are otherwise permitted by the Loan Documents, provided further that the principal amount of the Indebtedness under the 2012 Senior Note Documents shall not be increased above the principal amount thereof outstanding immediately prior to such refinancing (other than to pay reasonable fees, premiums, costs and expenses incurred in connection with such refinancing), and the direct and contingent obligors therefor shall not be changed, as a result of or in connection with such refinancing, provided still further that the final maturity and the average life of such refinancing Indebtedness shall not end earlier than the final maturity and the average life of the Indebtedness under the 2012 Senior Note Documents and provided still further that other material terms, taken as a whole, of any such refinancing Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Loan Parties or the Lenders than the terms of the 2012 Senior Note Documents;

(v)           Section 8.12(c) of the Credit Agreement is hereby amended to read as follows:

(c)           Indebtedness of the Borrower and its Subsidiaries existing on the Second Amendment Effective Date and set forth in Schedule 8.12;

(w)           Section 8.12(e) of the Credit Agreement is hereby amended to read as follows:

(e)           secured Indebtedness of the Loan Parties assumed in connection with a Permitted Acquisition so long as such Indebtedness (i) was not incurred in anticipation of or in connection with the respective Permitted Acquisition and (ii) does not exceed $20,000,000 in the aggregate at any time outstanding;

(x)           Section 8.13 of the Credit Agreement is hereby amended to read as follows:

Section 8.13           Prepayment of Other Indebtedness, Etc.

The Borrower will not make (or give any notice with respect thereto), or permit any Subsidiary to make (or give notice with respect thereto), any voluntary or optional payment or prepayment or redemption or acquisition for value of (including without limitation, by way of depositing money or securities with the trustee with respect thereto 

 

  

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before due for the purpose of paying when due), refund, refinance or exchange of any Indebtedness, including without limitation Indebtedness under the Senior Note Purchase Agreement, the Senior Notes and/or the 2012 Senior Note Documents except Indebtedness under the Loan Documents and intercompany debt owed to any Loan Party; provided, however, that the Borrower may (a) prepay Indebtedness under the Senior Note Purchase Agreement and/or the Senior Notes so long as no Default or Event of Default shall have occurred and be continuing before or after giving effect to the prepayment of such Indebtedness, (b) prepay Indebtedness of the Loan Parties assumed in connection with a Permitted Acquisition so long as no Default or Event of Default shall have occurred and be continuing before or after giving effect to the prepayment of such Indebtedness, (c) refinance the Indebtedness under the 2012 Senior Note Documents in accordance with Section 8.12(b)(ii) so long as no Default or Event of Default shall have occurred and be continuing before or after giving effect to the refinancing of such Indebtedness and (d) prepay Indebtedness of the Loan Parties described under Item 7 (and the attached spreadsheet) of Schedule 8.12, so long as no Default or Event of Default shall have occurred and be continuing before or after giving effect to the prepayment of such Indebtedness.

(y)           A new Section 8.14 is hereby added to the Credit Agreement to read as follows:

8.14           Certain Subsidiaries.

The Borrower will not permit, nor will it allow any Subsidiary to permit, any Subsidiary designated on Schedule 8.14 to create, acquire or own any Subsidiary.

(z)           The word “or” is hereby added to the end of Section 9.1(n) of the Credit Agreement and a new Section 9.1(o) is hereby added to Section 9.1 to read as follows:

(o)           except as contemplated by Section 10.9 or as may be permitted by any Loan Document, any Loan Document purporting to grant a Lien to secure any Obligation shall, at any time after the delivery of such Loan Document, fail to create a valid and enforceable Lien on any Pledged Collateral purported to be covered thereby or such Lien shall fail or cease to be a perfected Lien with the priority required in the relevant Loan Document;

(aa)           A new Section 10.1(c) is hereby added to Section 10.1 of the Credit Agreement to read as follows:

(c)           The Administrative Agent shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders and the Issuing Bank hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender and the Issuing Bank for purposes of acquiring, holding and enforcing any and all Liens on Pledged Collateral granted by any of the Loan Parties to secure any of the Obligations, together with such powers and discretion as are incidental thereto.  In this connection, the Administrative Agent, as “collateral agent”, and any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to Section 10.5 for purposes of holding or enforcing any Lien on the Pledged Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent, shall be entitled to the benefits of all provisions of this Article X and Article XI (including Section 11.3(d), as though such co-

 

  

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agents, sub-agents and attorneys-in-fact were the collateral agent under the Loan Documents) as if set forth in full herein with respect thereto.

(bb)         A new paragraph is hereby added to the end of Section 10.9 of the Credit Agreement to read as follows:

The Lenders and the Issuing Bank irrevocably authorize the Administrative Agent, at its option and in its reasonable discretion, to release any Lien on any Pledged Collateral granted to or held by the Administrative Agent under any Loan Document (a) upon termination of the Aggregate Revolving Commitments and payment in full of all Obligations (other than contingent indemnification obligations) and the expiration or termination of all Letters of Credit, (b) that is transferred or to be transferred as part of or in connection with any transaction permitted hereunder or under any other Loan Document, or (c) as approved in accordance with Section 11.2.  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release its interest in particular types or items of Pledged Collateral pursuant to this Section 10.9.

(dd)           Schedule 1.1(a) to the Credit Agreement is hereby amended to read as provided on Schedule 1.1(a) attached hereto.

(ee)           Schedule 1.2 to the Credit Agreement is hereby amended to read as provided on Schedule 1.2 attached hereto.

(ff)           Schedule 8.1 to the Credit Agreement is hereby amended to read as provided on Schedule 8.1 attached hereto.

(gg)           Schedule 8.7 of the Credit Agreement is hereby amended to read as provided on Schedule 8.7 attached hereto.

(hh)           Schedule 8.12 of the Credit Agreement is hereby amended to read as provided on Schedule 8.12 attached hereto.

(ii)           A new Schedule 8.14 is hereby added to the Credit Agreement to read as provided on Schedule 8.14 attached hereto.

2.           Waiver.

(a)           The Borrower acknowledges (i) the entering into and continued existence of those certain agreements listed in Item 1 of Schedule I hereto (as may be amended from time to time in a manner not materially adverse to the Lenders, the “GE Loan Agreements”) by and among the Subsidiary Loan Parties party thereto, on the one hand, and General Electric Capital Corporation or one of its Affiliates, as the case may be (“GE”) on the other, pursuant to which such Subsidiary Loan Parties incurred the Indebtedness identified on Schedule I hereto and granted to GE security interests in the assets identified in the GE Loan Agreements and the Borrower provided a guaranty of such Indebtedness and (ii) the entering into and prepayment under the agreements listed in Item 2 of Schedule I hereto by and among the Subsidiary Loan Parties party thereto, on the one hand and First Franchise Capital Corporation, formerly known as Irwin Franchise Capital Corporation (the “Irwin Prepaid Loans”), on the other.

(b)           Subject to the other terms and conditions of this Agreement, the Administrative Agent and the Lenders agree to waive any existing Default or Event of Default (i) arising under Sections 4.2, 

 

  

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5.3, 5.6, 5.11, 5.12, 6.2(a), 8.1, 8.3, 8.7, 8.12, 8.13, 9.1(c), 9.1(d), 9.1(e) and 9.1(f) caused by or resulting from the entry into by the Subsidiary Loan Parties and/or the continued existence of and/or any prepayments under, as applicable, the GE Loan Agreements, in each case prior to the date hereof and (ii) arising under Section 8.13 and 9.1(d) caused by or resulting from any prepayments under the Irwin Prepaid Loans, in each case prior to the date hereof (the “Existing Defaults and Events of Default”).  The waiver set forth herein shall be effective only in this specific instance and shall not obligate the Lenders or the Administrative Agent to waive any other Default or Event of Default, now existing or hereafter arising.  This waiver is limited solely to the Existing Defaults and Events of Default as of the date hereof, and nothing contained in this Agreement shall (i) modify the Loan Parties’ obligations to comply fully with Sections 4.2, 5.3, 5.6, 5.11, 5.12, 6.2(a), 8.1, 8.3, 8.7, 8.12 and 8.13 of the Credit Agreement and all duties, terms, conditions or covenants contained in the Credit Agreement and the other Loan Documents and (ii) be deemed to constitute a waiver of any other rights or remedies the Administrative Agent or any Lender may have under the Credit Agreement or any other Loan Documents or under applicable law.  This is a one-time waiver, and the Administrative Agent and the Lenders shall have no obligation to amend, modify or waive any provision of the Credit Agreement or any other Loan Document in the future.  The provisions and agreements set forth in this Agreement shall not establish a custom or course of dealing or conduct between the Administrative Agent, the Issuing Bank, the Servicer, any Lender, the Borrower or any other Loan Party.

3.           Conditions Precedent.  This Agreement shall be effective upon satisfaction of the following conditions precedent:

(a)           receipt by the Administrative Agent of counterparts of (i) this Agreement, duly executed by the Borrower, the Administrative Agent and the Required Lenders and (ii) the Pledge Agreement, duly executed by the Loan Parties and the Administrative Agent, along with all certificates evidencing any certificated Equity Interests pledged to the Administrative Agent pursuant to the Pledge Agreement together with duly executed, undated, in blank stock powers attached thereto.

(b)           receipt by (i) the Administrative Agent on behalf of each Lender consenting to this Agreement on or before 5:00 p.m. Eastern time on May 14, 2012 of an amendment fee equal to 0.25% of the Revolving Commitment of such Lender (after giving effect to this Agreement) and (ii) the Administrative Agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated of all fees and expenses due and payable to them in connection with this Agreement;

(c)           receipt by the Administrative Agent of favorable opinions of legal counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, dated as of the Second Amendment Effective Date and in form and substance satisfactory to the Administrative Agent;

(d)           receipt by the Administrative Agent of (i) certified copies of the 2012 Indenture and the 2012 Senior Notes and (ii) satisfactory evidence of the simultaneous closing and funding of the 2012 Senior Notes on the Second Amendment Effective Date, for total cash proceeds of not less than $200 million;

(e)           receipt by the Administrative Agent of a fully executed Consent in the form attached as Exhibit A to this Agreement (the “Consent”), duly signed and delivered by each Guarantor;

(f)           receipt by the Administrative Agent of a certificate of a Responsible Officer of the Borrower and each other Loan Party, in form and substance satisfactory to the Administrative Agent, (i) attaching resolutions of each Loan Party approving and adopting this Agreement, the 

 

  

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transactions contemplated herein and authorizing the execution and delivery of this Agreement or the Consent (as applicable), the Pledge Agreement and any documents, agreements or certificates related thereto and certifying that such resolutions have not been amended, supplemented or otherwise modified and remain in full force and effect as of the Second Amendment Effective Date and (ii) certifying that the organizational documents of the Loan Parties have not been amended, supplemented or otherwise modified since the Closing Date (or, if a Loan Party’s organizational documents have been amended, supplemented or otherwise modified since the Closing Date, attaching copies of such organizational documents certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certifying such organizational documents to be true and correct as of the Second Amendment Effective Date);

(g)           receipt by the Administrative Agent of UCC financing statements for the Borrower and each other Loan Party for each appropriate jurisdiction as is necessary, in the Administrative Agent’s reasonable judgment, to perfect the Administrative Agent’s security interest in the Pledged Collateral; and

(h)           receipt by the Administrative Agent of a fully executed copy, certified by a Responsible Officer of the Borrower as true and complete, of the waivers referenced in Section 1(b) of that certain Agreement Regarding Waiver and Consent, dated as of April 29, 2012, by and among the Borrower, the Subsidiary Loan Parties party thereto and the lenders party thereto.

4.           Miscellaneous.

(a)          The Credit Agreement, and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.

(b)          The Borrower hereby represents and warrants as follows:

(i)           The Borrower has taken all necessary organizational and, if required, shareholder action to authorize the execution, delivery and performance of this Agreement.

(ii)           This Agreement has been duly executed and delivered by the Borrower and constitutes the legal, valid and binding obligations of the Borrower, enforceable in accordance with its terms, except as such enforceability may be subject to (A) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (B) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

(iii)           No consent, approval, authorization or order of, or filing, registration or qualification with, any Governmental Authority or third party is required in connection with the execution, delivery or performance by the Borrower of this Agreement, except those as have been obtained or made and are in full force and effect and any filings required to be made with the Securities and Exchange Commission to comply with the Borrower’s reporting obligations under the Securities Exchange Act of 1934.

(c)     The Borrower represents and warrants to the Lenders that, after giving effect to this Agreement, (i) the representations and warranties set forth in Article V of the Credit 

 

  

12

  

 

Agreement and in each other Loan Document are true and correct in all material respects (before and after giving effect to this Agreement) as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date and (ii) no unwaived event has occurred and is continuing which constitutes a Default or an Event of Default.

(d)     This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

(e)           THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.

[remainder of page intentionally left blank]

 

  

13

  

 

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

	BORROWER:  	 	
RUBY TUESDAY, INC., 

a Georgia corporation

	 
	 	 	 	 	 
	 	 	By:    	/s/ Marguerite N. Duffy	 
	 	 	 	
Name: Marguerite N. Duffy

	 
	 	 	 	
Title:   Senior Vice President

	 

                                            

 

 

  

  

  

	

ADMINISTRATIVE AGENT:

	 	
BANK OF AMERICA, N.A., 

as Administrative Agent

	 
	 	 	 	 	 
	 	 	By:    	/s/ Erik M. Truette	 
	 	 	 	
Name: Erik M. Truette

	 
	 	 	 	
Title:   Assistant Vice President

	 

  

 

                                            

 

 

 

 

	LENDERS:  	 	
BANK OF AMERICA, N.A., 

as a Lender, Servicer, Issuing Bank and 

Swingline Lender

	 
	 	 	 	 	 
	 	 	By:    	/s/ John H. Schmidt	 
	 	 	 	
Name: John H. Schmidt

	 
	 	 	 	
Title:   Director

	 

 

	 	 	
REGIONS BANK, 

as a Lender

	 
	 	 	 	 	 
	 	 	By:    	/s/ Jared A. Hall	 
	 	 	 	
Name: Jared A. Hall

	 
	 	 	 	
Title:   Vice President

	 

 

	 	 	
WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as a Lender

	 
	 	 	 	 	 
	 	 	By:    	/s/ Darcy McLaren	 
	 	 	 	
Name: Darcy McLaren

	 
	 	 	 	
Title:   Director

	 

 

	 	 	
FIFTH THIRD BANK,

as a Lender

	 
	 	 	 	 	 
	 	 	By:    	/s/ Lisa R. Cook	 
	 	 	 	
Name: Lisa R. Cook

	 
	 	 	 	
Title:   Vice President

	 

 

	 	 	
US BANK NATIONAL ASSOCIATION,

as a Lender

	 
	 	 	 	 	 
	 	 	By:    	/s/ Patrick Engel	 
	 	 	 	
Name: Patrick Engel

	 
	 	 	 	
Title:   Vice President

	 

 

	 	 	
PNC BANK, NATIONAL ASSOCIATION,

as a Lender

	 
	 	 	 	 	 
	 	 	By:    	/s/ Shelly B. Stephenson	 
	 	 	 	
Name: Shelly B. Stephenson

	 
	 	 	 	
Title:   Vice President

	 

 

 

 

 

 

	 	 	
BRANCH BANKING AND TRUST COMPANY,

as a Lender

	 
	 	 	 	 	 
	 	 	By:    	/s/ R. Andrew Beam	 
	 	 	 	
Name: R. Andrew Beam

	 
	 	 	 	
Title:   Senior Vice President

	 

 

 

  

  

  

 

Schedule 1.1(a)

PRICING GRID

	
 

Pricing

Level

	
 

Adjusted Total Debt 

to EBITDAR Ratio

	
 

Applicable Margin for Eurodollar Loans/Franchisee Loan Fundings

	
 

Applicable Margin for 

Base Rate Loans

	
 

Applicable Commitment 

Fee Percentage

	
 

I

	
 

< 1.50:1.0

	
1.25%

	
0.25%

	
0.300%

	
 

II

	
 

> 1.50:1.0 but < 2.00:1.0

	
1.50%

	
0.50%

	
0.300%

	
 

III

	
 

> 2.00:1.0 but < 2.50:1.0

	
1.75%

	
0.75%

	
0.350%

	
 

IV

	
 

> 2.50:1.0 but < 3.0:1.0

	
2.00%

	
1.00%

	
0.375%

	
 

V

	
 

> 3.0:1.0 but <

3.50:1.0

	
2.25%

	
1.25%

	
0.375%

	
VI

	
> 3.50:1.0

	
2.50%

	
1.50%

	
 

0.450%

 

  

  

  

Schedule 1.2

REVOLVING COMMITMENTS

 

 

	
Lender

	
Revolving Commitment

	
Pro Rata Share

	
Bank of America, N.A.

	
$52,631,578.95

	
26.315789474%

	
Regions Bank

	
$39,473,684.21

	
19.736842105%

	
Wells Fargo Bank, National Association

	
$28,947,368.42

	
14.473684211%

	
Fifth Third Bank

	
$26,315,789.47

	
13.157894737%

	
U.S. Bank National Association

	
$23,684,210.53

	
11.842105263%

	
PNC Bank, National Association

	
$15,789,473.68

	
7.894736842%

	
Branch Banking & Trust Company

	
$13,157,894.74

	
6.578947368%

	
Total

	
$200,000,000

	
100.000000000%

  

  

  

Schedule 8.1

EXISTING LIENS

	 	
  1.  

	
Liens arising from or related to indebtedness incurred by RT Tampa Franchise, LP, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  2.  

	
Liens arising from or related to indebtedness incurred by RT Michiana Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  3.  

	
Liens arising from or related to indebtedness incurred by RT Orlando Franchise, LP, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  4.  

	
Liens arising from or related to indebtedness incurred by RT South Florida Franchise, LP, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  5.  

	
Liens arising from or related to indebtedness incurred by RT West Palm Beach Franchise, LP, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  6.  

	
Liens arising from or related to indebtedness incurred by RT Detroit Franchise, LLC, a Subsidiary (see Schedule 5.14 in favor of GE Capital Franchise Finance Corporation or its affiliates, and in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  7.  

	
Liens arising from or related to indebtedness incurred by RT Michigan Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  8.  

	
Liens arising from or related to indebtedness incurred by RT New England Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates and in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
  9.  

	
Liens arising from or related to indebtedness incurred by RT Long Island Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, in favor of Irwin Franchise Capital or its affiliates, and in favor of P&P Holdings or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
10.  

	
Liens arising from or related to indebtedness incurred by RT Denver Franchise, L.P., a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates and in favor of Irwin Franchise Capital or its affiliates, 

 

  

  

  

	 	
 

	
which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

 

	 	
11.  

	
Liens arising from or related to indebtedness incurred by RT Indianapolis Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates and in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
12.  

	
Liens arising from or related to indebtedness incurred by RT KCMO Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
13.  

	
Liens arising from or related to indebtedness incurred by RT Omaha Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates and in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
14.  

	
Liens arising from or related to indebtedness incurred by RT Portland Franchise LLC, a Subsidiary (see Schedule 5.14), in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
15.  

	
Liens arising from or related to indebtedness incurred by RT St. Louis Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates and in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
16.  

	
Liens arising from or related to indebtedness incurred by RT Western Missouri Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates and in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

	 	
17.  

	
Liens arising from or related to indebtedness incurred by RT Minneapolis Franchise, LLC, a Subsidiary (see Schedule 5.14), in favor of GE Capital Franchise Finance Corporation or its affiliates and in favor of Irwin Franchise Capital or its affiliates, which secures assets or property of such Subsidiary at the sites identified (see Schedule 8.12, Item 7 for a listing of such Debt and sites).

  

2

  

Schedule 8.7

RESTRICTIVE AGREEMENTS

1. Prohibitions and restrictions that limit the ability of Subsidiaries party to the agreements referenced under Item 7 of Schedule 8.12 to incur additional liens on any of the assets that are subject to the liens referenced in such agreements.

2. Prohibitions and restrictions that limit the ability of Subsidiaries party to the agreements referenced under Item 7 of Schedule 8.12 to transfer or dispose of any of the assets that are subject to the liens referenced in such agreements.

3. Prohibitions and restrictions that limit the ability of Subsidiaries party to the agreements referenced under Item 7 of Schedule 8.12 to make distributions or dividends to its members or partners.

  

  

  

 

Schedule 8.12

INDEBTEDNESS

1.           Indebtedness in the estimated contingent amount of $384,517 arising under the Program and Support Agreement by and between Company and General Electric Capital Business Asset Funding Corporation dated as of January 2002, whereby Company guarantees no more than 30% of the then outstanding aggregate of franchisee loans subject to the Program and Support Agreement if an unpaid balance remains under any such loan to a franchisee after lender has realized its rights in the collateral subject to the loan.  The Program and Support Agreement was terminated effective July 1, 2004.

2.           Indebtedness in the estimated contingent amount of $3,629,951 arising under the Financing Agreement by and between Company and CitiCorp Leasing, Inc. dated as of July 1, 2004, whereby Company guarantees a portion or all of a participating franchisee’s loan subject to the program.  The Financing Agreement was terminated on July 1, 2007.

3.           Indebtedness totaling $16,442,516 evidenced pursuant to various letters of credit issued primarily in connection with Company’s workers compensation and casualty insurance programs.

4.           From time to time, Company indemnifies certain lenders to Company’s franchisees, wherein Company agrees to pay a portion of franchisee debt allocated to specific leased property encumbered by such debt if such franchisee defaults under its loan to the indemnified lender due to a failure to obtain (i) certain landlord consents to subletting the property by the Company to the franchisee or (ii) lease extensions for specific leased property.  In the event of such payment, the indemnified lender assigns to Company all of its rights in the related collateral.

5.           Company’s covenants in favor of Metropolitan Knoxville Airport Authority (the “Authority”) in connection with the Food and Beverage Concession Agreement dated September 1, 1999, between the Authority and RT McGhee-Tyson, LLC, a Subsidiary, wherein Company agrees to provide continuing working capital to RT McGhee Tyson, LLC during the term of the Concession Agreement.

6.           The Company has entered into a Distribution Agreement and an Agreement Respecting Employee Benefit Matters (collectively referred to as sharing agreements) with Morrison Fresh Cooking, Inc. (acquired by Piccadilly Cafeterias, Inc.) and Morrison Management Specialists, Inc. (formerly Morrison Health Care, Inc. and acquired by Compass Group, PLC) providing for the assumption of liabilities and cross-indemnities designed to allocate, generally, among these three companies, financial responsibility for liabilities arising out of or in connection with business activities prior to the March, 1996 “spin-off” transaction.

7.           Former franchise partner Indebtedness described in the attached spreadsheet.

 

  

  

  

 

FORMER FRANCHISE PARTNER (ACQUIRED) INDEBTEDNESS

 

(all figures in 000's)

	
MORTGAGEE

	  	
TOTAL

	  	  	  	  
	
RT Tampa Franchise, LP Debt:

	  	  
	  	
GE - Cooper Creek Construction

	  	
395

	  	
GE - Healthpark Construction

	  	
755

	
RT Michiana Franchise, LLC Debt:

	  	  
	  	
GE - Acquisition - Note 28525

	  	
1,379

	  	
GE - Acquisition - Note 28651

	  	
1,967

	  	
GE - Battle Creek Construction

	  	
629

	
RT Orlando Franchise, LP Debt:

	  	  
	  	
GE - Bellair

	  	
483

	  	
GE - Leesburg

	  	
515

	  	
GE - Palm Coast Construction

	  	
1,164

	
RT South Florida Franchise, LP Debt:

	  	  
	  	
GE - Deerfield Construction

	  	
312

	  	
GE - Homestead Construction

	  	
265

	  	
GE - Pompano Construction

	  	
591

	
RT West Palm Beach Franchise, LP Debt:

	  	  
	  	
GE - Royal Palm Construction

	  	
1,216

	  	
GE - Sebastian

	  	
1,331

	  	
GE - Stuart

	  	
1,310

	
RT Detroit Franchise, LLC Debt:

	  	  
	  	
GE - Saline Construction

	  	
1,096

	  	
GE - Novi Construction

	  	
1,554

	  	
GE - S. Canton Construction

	  	
994

	  	
Irwin - Allen Park Construction

	  	
670

	  	
Irwin - Plymouth Construction

	  	
931

	  	
Irwin - Plymouth FF&E

	  	
109

	
RT Michigan Franchise, LLC Debt:

	  	  
	  	
GE - Cadillac Construction

	  	
1,099

	  	
GE - Port Huron Construction

	  	
499

	  	
GE - Gaylord Construction

	  	
1,323

	  	
GE - Traverse  City Construction

	  	
191

	  	
GE - Acquisition Debt

	  	
3,610

	  	
GE - Clarkston Construction

	  	
993

	  	
GE - Mt. Pleasant Construction

	  	
1,008

	
RT Long Island Franchise, LLC Debt

	  	  
	  	
GE - CNL Acq-Commack

	  	
393

	  	
Irwin - Sayville Construction

	  	
1,310

	
RT New England Franchise, LLC Debt

	  	  
	  	
GE - Acquisition Debt

	  	
388

	  	
GE - Waterville

	  	
1,136

 

  

  

  

 

	  	
Irwin - Biddeford Construction

	  	
419

	  	
Irwin - Biddeford FF&E

	  	
177

	  	
Irwin - Auburn Construction

	  	
491

	  	
Irwin - Auburn FF&E

	  	
226

	  	
Irwin - Augusta Construction

	  	
605

	  	
Irwin - Augusta FF&E

	  	
257

	
RT Denver Franchise, L.P. Debt

	  	  
	  	
GE - Acquisition Debt FFE

	  	
3,328

	  	
GE - Highlands Ranch Const

	  	
1,086

	  	
GE - Highlands Ranch FFE

	  	
274

	  	
GE - Arvada Const

	  	
1,290

	  	
GE - Aurora Const

	  	
1,257

	  	
GE - Ft. Collins Const

	  	
1,010

	  	
Irwin - Tower Road Construction 

	  	
1,502

	  	
Irwin - Ridgeview Construction 

	  	
1,578

	
RT Indianapolis Franchise, LLC Debt

	  	  
	  	
GE - Construction refinance 

	  	
3,952

	  	
GE - FF&E refinance

	  	
1,717

	  	
GE - Muncie Construction 

	  	
923

	  	
GE - Muncie FF&E 

	  	
162

	  	
Irwin - US Hwy 31 Construction 

	  	
1,973

	  	
Irwin - US Hwy 31 FF&E 

	  	
183

	
RT KCMO Franchise, LLC Debt

	  	  
	  	
GE - Belton Construction

	  	
809

	  	
GE - Northgate Construction

	  	
994

	  	
GE - Shawnee Construction

	  	
1,383

	
RT Omaha Franchise, LLC Debt

	  	  
	  	
GE - Cornhusker Construction

	  	
878

	  	
GE - N. 27th St. Construction

	  	
760

	  	
Irwin - Grand Island Construction 

	  	
1,000

	  	
Irwin - Grand Island FF&E 

	  	
33

	  	
Irwin - Kearney Construction 

	  	
1,104

	  	
Irwin - Council Bluffs Construction 

	  	
1,425

	  	
Irwin - North Platte Construction 

	  	
1,349

	  	
Irwin - North Platte FF&E 

	  	
186

	
Portland Debt:

	  	  
	  	
Irwin - Refinance 

	  	
366

	
RT St. Louis Franchise, LLC Debt

	  	  
	  	
GE - Acquisition Debt1

	  	
539

	  	
GE - Acquisition Debt2

	  	
448

	  	
GE - Litchfield Construction

	  	
826

	  	
GE - Collinsville Construction

	  	
1,151

	  	
GE - Arnold Construction

	  	
1,467

	  	
Irwin - Valley Park Construction

	  	
1,110

	  	
Irwin - Valley Park FF&E

	  	
136

 

  

  

  

 

	  	
Irwin - Cape Girardeau Construction

	  	
744

	  	
Irwin - Cape Girardeau FF&E

	  	
94

	  	
Irwin - Wentzville Construction

	  	
1,100

	  	
.

	  	
173

	
RT Western Missouri Franchise, LLC Debt

	  	  
	  	
GE - Acquisition Debt (Construction)

	  	
3,245

	  	
GE - Acquisition Debt (FF&E)

	  	
1,678

	  	
GE - Construction refinance

	  	
5,778

	  	
GE - FF&E refinance

	  	
8,433

	  	
Irwin - Bass Pro Construction 

	  	
1,305

	  	
Irwin - Conway Construction 

	  	
1,465

	  	
Irwin - Conway FF&E 

	  	
191

	  	
Irwin - Kirksville Construction 

	  	
1,130

	  	
Irwin - Republic Construction 

	  	
1,474

	  	
Irwin - West Plains Construction 

	  	
847

	  	
Irwin - West Plains FF&E 

	  	
93

	
RT Minneapolis Franchise, LLC Debt

	  	  
	  	
GE - Eden Prairie New Unit

	  	
1,165

	  	
GE - Cottage Grove New Unit

	  	
1,957

	  	
GE - Cottage Grove FFE

	  	
174

	  	
GE - Oak Park New Unit

	  	
1,722

	  	
GE - Acquisition Debt

	  	
1,408

	  	
Irwin - Shakopee Construction

	  	
1,517

	  	
Irwin - Refinance/Remodel MOA

	  	
94

	  	  	  	
103,777

	  	
Premium/discount fair value adjustment

	  	
2,588

	
Balance

	  	  	
106,365

	  	  	  	  
	
Breakdown of mortgage loan obligations:

	  
	  	
GE

	  	
 $    76,410

	  	
Irwin

	  	
       27,367

	  	
Premium/Discount

	  	
         2,588

	  	
Total Mortgage loan obligations

	
 $  106,365

  

  

  

Schedule 8.14

CERTAIN SUBSIDIARIES

RT Millington, LLC

RT O’Toole, LLC

RT Indianapolis Franchise, LLC

RT St. Louis Franchise, LLC

RT Tampa Franchise, LP

RT Orlando Franchise, LP

RT South Florida Franchise, LP

RT West Palm Beach Franchise, LP

RT Smith, LLC

RT Long Island Franchise, LLC

RT New England Franchise, LLC

RT Western Missouri Franchise, LLC

RT Omaha Franchise, LLC

RT KCMO Franchise, LLC

RT Portland Franchise, LLC

RT Denver Franchise, LP

RT Minneapolis Franchise, LLC

  

  

  

 

Schedule I

 

Franchise Partners

Notes and Mortgage Payable

(000)'s

 

	  	  
	  	 LENDER	
TOTAL

	
RT Tampa Franchise, LP Debt:

	  
	  	
GE - Cooper Creek Construction

	
395

	  	
GE - Healthpark Construction

	
755

	
RT Michiana Franchise, LLC Debt:

	  
	  	
GE - Acquisition - Note 28525

	
1,379

	  	
GE - Acquisition - Note 28651

	
1,967

	  	
GE - Battle Creek Construction

	
629

	
RT Orlando Franchise, LP Debt:

	  
	  	
GE - Bellair

	
483

	  	
GE - Leesburg

	
515

	  	
GE - Palm Coast Construction

	
1,164

	
RT South Florida Franchise, LP Debt:

	  
	  	
GE - Deerfield Construction

	
312

	  	
GE - Homestead Construction

	
265

	  	
GE - Pompano Construction

	
591

	
RT West Palm Beach Franchise, LP Debt:

	  
	  	
GE - Palm City Construction

	
0

	  	
GE - Palm City FF&E

	
0

	  	
GE - Royal Palm Construction

	
1,216

	  	
GE - Sebastian

	
1,331

	  	
GE - Stuart

	
1,310

	  	
GE - Acquisition Debt

	
0

	
RT Detroit Franchise, LLC Debt:

	  
	  	
GE - Saline Construction

	
1,096

	  	
GE - Saline FF&E

	
0

	  	
GE - Novi Construction

	
1,554

	  	
GE - Novi FF&E

	
0

	  	
GE - S. Canton Construction

	
994

	  	
GE - S. Canton FF&E

	
0

	  	
GE - Acquisition Debt

	
0

	  	
Irwin - Allen Park FF&E

	
0

	
RT Michigan Franchise, LLC Debt:

	  
	  	
GE - Cadillac Construction

	
1,099

	  	
GE - Port Huron Construction

	
499

	  	
GE - Gaylord Construction

	
1,323

	  	
GE - Traverse  City Construction

	
191

	  	
GE - Traverse  City FF&E

	
0

	  	
GE - Acquisition Debt

	
3,610

	  	
GE - Clarkston Construction

	
993

	  	
GE - Clarkston FF&E

	
0

	  	
GE - Mt. Pleasant Construction

	
1,008

 

  

  

  

 

Franchise Partners

Notes and Mortgage Payable

(000)'s

	 	 
	 	 TOTAL	 TOTAL
	
RT Long Island Franchise, LLC Debt

	  
	  	
GE – Acquisition Debt

	
0

	  	
GE – Commack

	
393

	  	
Irwin - Miller Place Construction

	
0

	  	
Irwin - Miller Place FF&E

	
0

	  	
Irwin - Deer Park Construction

	
0

	  	
Irwin - Deer Park FF&E

	
0

	  	
Irwin - Sayville FF&E

	
0

	
RT New England Franchise, LLC Debt

	  
	  	
GE – Acquisition Debt

	
388

	  	
GE – Waterville

	
1,136

	  	
GE – Westbrook

	
0

	  	
GE – Topsham

	
0

	  	  	  	  
	
RT Denver Franchise, L.P. Debt

	  
	  	
GE - Citadel Mall

	
0

	  	
GE - Acquisition debt FF&E

	
3,328

	  	
GE - Highlands Ranch Construction

	
1,086

	  	
GE - Highlands Ranch FF&E

	
274

	  	
GE - Arvada Construction

	
1,290

	  	
GE - Aurora Construction

	
1,257

	  	
GE - Fort Collins Construction

	
1,010

	  	
Irwin - Tower Road FF&E

	
0

	  	
Irwin - Ridgeview FF&E

	
0

	  	  	  	  
	
RT Indianapolis Franchise, LLC Debt

	  
	  	
GE- Construction refinance 

	
                          3,952

	  	
GE- FF&E refinance

	
                          1,717

	  	
GE- Muncie Construction 

	
                             923

	  	
GE- Muncie FF&E 

	
                             162

	  	
Irwin - Wesleyan Road Construction

	
0

	  	
Irwin - Wesleyan Road FF&E

	
0

	  	  	  	  
	
RT KCMO Franchise, LLC Debt

	  
	  	
GE- Acquisition Debt

	
0

	  	
GE - Belton Construction 

	
                             809

	  	
GE - Northgate Construction 

	
                             994

	  	
GE - Shawnee Construction  

	
                          1,383

	  	  	  	  

 

  

  

  

 

Franchise Partners

Notes and Mortgage Payable

(000)'s

	 	 
	 	 TOTAL	 TOTAL
	
RT Omaha Franchise, LLC Debt

	  
	  	
GE - Cornhusker Construction 

	
                             878

	  	
GE - Edgewood Construction 

	
0

	  	
GE - Edgewood FF&E 

	
0

	  	
GE - Lakeside Construction 

	
0

	  	
GE - Lakeside FF&E 

	
0

	  	
GE - N. 27th St. Construction 

	
                             760

	  	
Irwin - Kearney FF&E

	
0

	  	
Irwin - Council Bluffs FF&E

	
0

	  	  	  	  
	
RT St. Louis Franchise, LLC Debt

	  
	  	
GE - Acquisition Debt1  

	
                             539

	  	
GE - Acquisition Debt2 

	
                             448

	  	
GE - Litchfield Construction 

	
                             826

	  	
GE - Collinsville Construction 

	
                          1,151

	  	
GE - Collinsville FF&E  

	
0

	  	
GE- Arnold Construction 

	
                          1,467

	  	
GE- O'Fallon Construction 

	
0

	  	  	  	  
	
RT Western Missouri Franchise, LLC Debt

	  
	  	
GE - Acquisition Debt (Construction) 

	
                          3,245

	  	
GE - Acquisition Debt (FF&E)- 

	
                          1,678

	  	
GE- Construction refinance 

	
                          5,778

	  	
GE- FF&E refinance 

	
                          8,433

	  	
Irwin - Bass Pro FF&E

	
0

	  	
Irwin - Kirksville FF&E

	
0

	  	
Irwin - Republic FF&E

	
0

	  	  	  	  
	
RT Minneapolis Franchise, LLC Debt

	  
	  	
GE - Eden Prairie Construction  

	
                          1,165

	  	
GE - Eden Prairie FF&E  

	
0

	  	
GE - Cottage Grove Construction 

	
                          1,957

	  	
GE - Cottage Grove FF&E 

	
                             174

	  	
GE - Oak Park Construction 

	
                          1,722

	  	
GE - Oak Park FF&E 

	
0

	  	
GE - Inver Grove Construction 

	
0

	  	
GE - Acquisition debt

	
                          1,408

	  	
Irwin - Shakopee FF&E

	
0

	  	
Irwin - Owatonna Construction

	
0

	  	
Irwin - Chaska FF&E

	
0

	  	  	  	  
	  	
Denver - Chapel Hill note

	
0

 

  

  

  

 

Franchise Partners

Notes and Mortgage Payable

(000)'s

	 	 	 	 
	 	 	 TOTAL	 TOTAL
	  	  	  	  
	
P&P Holdings

	  
	  	
Long Island - Sayville

	
0

	  	  	  	  
	
The Holland, Inc.

	  
	  	
Portland - Beaverton FF&E 

	
0

	  	  	  	  
	  	  	  	  
	  	  	
  TOTAL

	
                        76,410

	  	  	  	  

  

  

  

 

Exhibit A

CONSENT

This Consent (this “Consent”), dated as of May 14, 2012, is delivered in connection with the Second Amendment to Revolving Credit Agreement and Waiver, dated as of the date hereof (the “Agreement”), by and among RUBY TUESDAY, INC., a Georgia corporation (the “Borrower”), the various financial institutions from time to time parties thereto (the “Lenders”) and Bank of America, N.A., in its capacity as the administrative agent for the Lenders (in such capacity the “Administrative Agent”).  Unless otherwise defined, terms used herein have the meanings provided in the Credit Agreement (as defined in the Agreement) as amended by the Agreement (such agreement, as so amended, being the “Amended Credit Agreement”).

Each of the undersigned, as a party to the Subsidiary Guaranty Agreement, hereby acknowledges and consents to the execution and delivery of the Agreement, and hereby confirms and agrees that the Subsidiary Guaranty Agreement is and shall continue to be, in full force and effect, and hereby ratifies and confirms in all respects its obligations thereunder, except that, upon the effectiveness of, and on and after the date of, the Agreement, all references in the Subsidiary Guaranty Agreement to the “Credit Agreement,” “thereunder,” “thereof” or words of like import shall mean the Amended Credit Agreement.

This Consent may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same instrument.

                                                         

	 GUARANTORS:	RTBD, INC.	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                                     

	 	
RT FINANCE, INC.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                                     

	 	
RUBY TUESDAY GC CARDS, INC.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                               

	 	

RT TAMPA FRANCHISE, L.P.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

  

  

  

                                              

	 	

RT ORLANDO FRANCHISE, L.P.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT SOUTH FLORIDA FRANCHISE, L.P.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT NEW YORK FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	 	 
	 	 	 RT SOUTHWEST FRANCHISE, LLC	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	 	 
	 	 	 RT MICHIANA FRANCHISE, LLC	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT FRANCHISE ACQUISITION, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT KENTUCKY RESTAURANT HOLDINGS, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT FLORIDA EQUITY, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

  

  

  

                                              

	 	

RTGC, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT DETROIT FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT MICHIGAN FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                      

	 	

RT WEST PALM BEACH FRANCHISE, L.P.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT NEW ENGLAND FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT LONG ISLAND FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RUBY TUESDAY, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT LAS VEGAS FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

  

  

  

                                              

	 	

RT MINNEAPOLIS FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT INDIANAPOLIS FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT DENVER FRANCHISE, L.P.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT OMAHA FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT KCMO FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                              

	 	

RT PORTLAND FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                               

	 	

RT ST. LOUIS FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title: 	 	 
	 	 	 	 

                                               

	 	

RT WESTERN MISSOURI FRANCHISE, LLC

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title:Exhibit 10.4

 

PLEDGE AGREEMENT

THIS PLEDGE AGREEMENT dated as of May 14, 2012 (as amended, modified, restated or supplemented from time to time, the “Pledge Agreement”) is by and among the parties identified as “Pledgors” on the signature pages hereto and such other parties as may become Pledgors hereunder after the date hereof by executing a Pledge Supplement Agreement in the form attached hereto as Schedule I (a “Pledge Supplement”) and made a part hereof (individually a “Pledgor”, and collectively the “Pledgors”) and Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”).

W I T N E S S E T H

WHEREAS, a credit facility has been established in favor of Ruby Tuesday, Inc., a Georgia corporation (the “Borrower”), pursuant to the terms of that certain Revolving Credit Agreement dated as of December 1, 2010 (as amended, modified, supplemented or extended from time to time, the “Credit Agreement”) among the Borrower, the lenders from time to time party thereto (the “Lenders”) and Bank of America, N.A., as administrative agent for the Lenders (“Administrative Agent”), issuing bank, servicer and swing line lender; and

WHEREAS, the Lenders have required that the Pledgors execute and deliver to the Administrative Agent, for the benefit of the Secured Creditors (as defined below), this Pledge Agreement;

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

1.             Definitions.

(a)           Capitalized terms used and not otherwise defined herein shall have the meanings provided in the Credit Agreement.

(b)           As used herein, the following terms shall have the meanings assigned thereto in the UCC: Accession, Financial Asset, Proceeds and Security.

(c)           As used herein, the following terms shall have the meanings set forth below:

“Administrative Agent” has the meaning provided in the introductory paragraph hereto.

“Borrower” has the meaning provided in the Recitals hereof.

“Credit Agreement” has the meaning provided in the Recitals hereof.

“Lenders” has the meaning provided in the Recitals hereof.

“Non-Voting Equity” has the meaning provided in Section 2 hereof.

“Pledged Collateral” has the meaning provided in Section 2 hereof.

“Pledged Shares” has the meaning provided in Section 2 hereof.

“Pledgor” and “Pledgors” each has the meaning provided in the introductory paragraph hereof.

  

  

  

 

“Secured Creditors” means the collective reference to the holders of the Secured Obligations and “Secured Creditor” means any one of them.

“Secured Obligations” means (a) all amounts owing by the Borrower to the Administrative Agent, the Servicer, the Issuing Bank or any Lender (including the Swingline Lender) pursuant to or in connection with the Credit Agreement, any other Loan Document or any Franchisee Loan Document, including without limitation, all principal, interest (including interest accruing at the default rate and any interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post filing or post petition interest is allowed in such proceeding), all reimbursement obligations, fees, expenses, indemnification and reimbursement payments, costs and expenses (including all fees and expenses of counsel to the Administrative Agent, the Servicer, the Issuing Bank and any Lender (including the Swingline Lender) incurred pursuant to the Credit Agreement, any other Loan Document or the Franchisee Loan Documents), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder and (b) all obligations of the Loan Parties arising under Hedging Agreements entered into with a Hedging Bank and Treasury Management Agreements entered into with a Treasury Management Bank to the extent such Hedging Agreement or Treasury Management Agreement is permitted under the Credit Agreement, and all obligations and liabilities incurred in connection with collecting and enforcing the foregoing, together with all renewals, extensions, modifications or refinancings thereof.

“Securities Act” has the meaning provided in Section 8 hereof.

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of Georgia.

“Voting Equity” has the meaning provided in Section 2 hereof.

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

(a)           Pledged Shares.  (i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests owned by such Pledgor of each Domestic Subsidiary set forth on Schedule 2(a) attached hereto and (ii) sixty-six percent (66%) (or, if less, the full amount owned by such Pledgor) (or if greater, such greater percentage owned by such Pledgor that, due to a change in applicable Law after the date hereof, in the good faith opinion of such Pledgor, could not reasonably be expected to cause any material adverse tax consequences to such Pledgor or its Affiliates, including the undistributed earnings of a Foreign Subsidiary, described below, to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent as determined for United States federal income tax purposes) of the issued and outstanding shares of Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Voting Equity”) and one hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Non-Voting Equity”) owned by such Pledgor of each Foreign Subsidiary directly owned by such Pledgor set forth on Schedule 2(a) attached hereto, in each case together with the certificates (or other agreements or instruments), if any, representing such Equity Interests, and all options and other rights, contractual or otherwise,

 

  

2

  

 

with respect thereto (collectively, together with the Equity Interests described in Section 2(b) below, the “Pledged Shares”), including, but not limited to, the following:

(A)           all shares, securities, membership interests and other Equity Interests or other property representing a dividend or other distribution on or in respect of any of the Pledged Shares, or representing a distribution or return of capital upon or in respect of the Pledged Shares, or resulting from a stock split, revision, reclassification or other exchange therefor, and any other dividends, distributions, subscriptions, warrants, cash, securities, instruments, rights, options or other property issued to or received or receivable by the holder of, or otherwise in respect of, the Pledged Shares; and

(B)           without affecting the obligations of the Pledgors under any provision prohibiting such action hereunder or under the Credit Agreement, in the event of any consolidation or merger involving the issuer of any Pledged Shares and in which such issuer is not the surviving entity, all Equity Interests of the successor entity formed by or resulting from such consolidation or merger.

(b)           Additional Shares.  (i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests owned by such Pledgor of any Person that hereafter becomes a Domestic Subsidiary and (ii) sixty-six percent (66%) (or, if less, the full amount owned by such Pledgor) (or if greater, such greater percentage owned by such Pledgor that, due to a change in applicable Law after the date hereof, in the good faith opinion of such Pledgor, could not reasonably be expected to cause any material adverse tax consequences to such Pledgor or its Affiliates, including the undistributed earnings of a Foreign Subsidiary, described below, to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent as determined for United States federal income tax purposes) of the Voting Equity and one hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the Non-Voting Equity owned by such Pledgor of any Person that hereafter becomes a Foreign Subsidiary directly owned by such Pledgor, including, without limitation, the certificates (or other agreements or instruments) representing such Equity Interests.

(c)           Accessions and Proceeds.  All Accessions and all Proceeds of any and all of the foregoing.

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

3.             Security for Secured Obligations.  The security interest created hereby in the Pledged Collateral of each Pledgor constitutes continuing collateral security for all of the Secured Obligations (subject to Section 23 hereof).

4.             Delivery of the Pledged Collateral.  Each Pledgor hereby agrees that:

(a)          Delivery of Certificates.  Each Pledgor shall deliver to the Administrative Agent (i) simultaneously with or promptly following execution and delivery of this Pledge Agreement, all certificates, if any, representing the Pledged Shares of such Pledgor and (ii) promptly upon the receipt thereof by or on behalf of a Pledgor, all other certificates and instruments constituting Pledged Collateral of a Pledgor.  Prior to delivery to the Administrative Agent, all such certificates and instruments constituting Pledged Collateral of a Pledgor shall be held in trust by

 

  

3

  

 

such Pledgor for the benefit of the Administrative Agent pursuant hereto.  All such certificates and instruments shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form provided in Exhibit 4(a) attached hereto.

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

(c)          Financing Statements.  Each Pledgor authorizes the Administrative Agent to file one or more financing statements (with a description of the Pledged Collateral contained herein) disclosing the Administrative Agent’s security interest in the Pledged Collateral.  Each Pledgor agrees to execute and deliver to the Administrative Agent such financing statements and other filings as may reasonably be requested by the Administrative Agent in order to perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor.

5.            Representations and Warranties.  Each Pledgor hereby represents and warrants to the Administrative Agent, for the benefit of the Secured Creditors, that so long as any of the Secured Obligations remains outstanding (other than any indemnity obligations that survive the termination of the commitments relating thereto) and until all of the commitments relating thereto have been terminated:

(a)          Authorization of Pledged Shares.  The Pledged Shares owned by such Pledgor are duly authorized and validly issued, are fully paid and nonassessable and are not subject to the preemptive rights of any Person.

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

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

(d)          Pledgor’s Authority.  No authorization, approval or action by, and no notice or filing with any Governmental Authority or with the issuer of any Pledged Collateral or any other Person is required either (i) for the pledge made by such Pledgor or for the granting of the security interest by such Pledgor pursuant to this Pledge Agreement (except as have been already obtained) or (ii) for the exercise by the Administrative Agent or the Secured Creditors of their

 

  

4

  

 

rights and remedies hereunder (except as may be required by the UCC or applicable foreign laws or laws affecting the offering and sale of securities).

(e)          Security Interest/Priority.  This Pledge Agreement creates a valid security interest in favor of the Administrative Agent for the benefit of the Secured Creditors, in the Pledged Collateral owned by such Pledgor.  The taking of possession by the Administrative Agent of the certificates representing the Pledged Shares and all other certificates and instruments constituting Pledged Collateral will perfect and establish the first priority of the Administrative Agent’s security interest in the Pledged Shares consisting of certificated securities of Domestic Subsidiaries and, when properly perfected by filing or registration, in all other Pledged Collateral represented by such Pledged Shares and instruments securing the Secured Obligations.  Except as set forth in this Section 5(e), no action is necessary to perfect or otherwise protect such security interest.

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

(g)          No Other Interests.  As of the date hereof, such Pledgor does not own any Equity Interests in any Subsidiary that are required by the Credit Agreement to be pledged to the Administrative Agent, for the benefit of the Secured Creditors, other than as set forth on Schedule 2(a) attached hereto.

6.            Covenants.  Each Pledgor hereby covenants, that so long as any of the Secured Obligations remain outstanding and until all of the commitments relating thereto have been terminated, such Pledgor shall:

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

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

(c)          Further Assurances.  Promptly execute and deliver at its expense all further instruments and documents and take all further action that may be reasonably necessary and desirable or that the Administrative Agent may reasonably request in order to (i) perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor (including, without limitation, any and all action necessary to satisfy the Administrative Agent that the Administrative Agent has obtained a first priority perfected security interest in all Pledged Collateral); (ii) enable the Administrative Agent to exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral of such Pledgor; and (iii) otherwise effect the purposes of this Pledge Agreement, including, without limitation and if requested by the Administrative Agent, delivering to the Administrative Agent upon its request after the occurrence of an Event of Default, irrevocable proxies in respect of the Pledged Collateral of such Pledgor.

  

5

  

 

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

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

(f)           Issuance or Acquisition of Equity Interests.  Not, without executing and delivering, or causing to be executed and delivered, to the Administrative Agent such agreements, documents and instruments as the Administrative Agent may reasonably request for the purpose of perfecting its security interest therein, issue or acquire any Equity Interests constituting Pledged Collateral consisting of an interest in a partnership or a limited liability company that (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a securities account or (v) constitutes a Security or a Financial Asset.

7.           Advances by Secured Creditors. On failure of any Pledgor to perform any of the covenants and agreements contained herein which constitutes an Event of Default and while such Event of Default is continuing, the Administrative Agent may, at its sole option and in its sole discretion, upon prior notice to the Pledgors, perform the same and in so doing may expend such sums as the Administrative Agent may deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all other expenditures that the Administrative Agent or the Secured Creditors may make for the protection of the security hereof or may be compelled to make by operation of law.  All such sums and amounts so expended shall be repayable by the Pledgors on a joint and several basis (subject to Section 23 hereof) promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are expended at the Default Interest rate.  No such performance of any covenant or agreement by the Administrative Agent or the Secured Creditors on behalf of any Pledgor, and no such advance or expenditure therefor, shall relieve the Pledgors of any default under the terms of this Pledge Agreement, the Loan Documents or any other documents relating to the Secured Obligations.

8.            Remedies.

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

(b)           Sale of Pledged Collateral.  Upon the occurrence of an Event of Default and during the continuation thereof, without limiting the generality of this Section 8 and without notice, the Administrative Agent may, in its sole discretion, sell or otherwise dispose of or realize upon the Pledged Collateral, or any part thereof, in one or more parcels, at public or private sale, at any exchange or broker’s board or elsewhere, at such price or prices and on such other terms as the Administrative Agent may deem commercially reasonable, for cash, credit or for future delivery or otherwise in accordance with applicable law.  To the extent permitted by law, any Secured Creditor may in such event, bid for the purchase of such securities.  Each Pledgor agrees that, to the extent notice of sale shall be required by law

 

  

6

  

 

and has not been waived by such Pledgor, any requirement of reasonable notice shall be met if notice, specifying the place of any public sale or the time after which any private sale is to be made, is personally served on or mailed, postage prepaid, to such Pledgor, in accordance with the notice provisions of Section 14 of this Pledge Agreement at least ten days before the time of such sale.  The Administrative Agent shall not be obligated to make any sale of Pledged Collateral of such Pledgor regardless of notice of sale having been given.  The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

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

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

(e)           Deficiency.  In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Administrative Agent or the Secured Creditors are legally entitled, the Pledgors shall be jointly and severally liable (subject to Section 23 hereof) for the deficiency, together with interest thereon at the Default Interest rate, together with the costs of collection and attorneys’ fees and expenses.  Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Pledgors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto.

9.           Rights of the Administrative Agent.

(a)           Power of Attorney.  Each Pledgor hereby designates and appoints the Administrative Agent, on behalf of the Secured Creditors, and each of its designees or agents, as attorney-in-fact of such Pledgor, irrevocably and with power of substitution, with authority to take any or all of the following actions upon the occurrence and during the continuation of an Event of Default:

  

7

  

 

(i)           to demand, collect, settle, compromise and adjust, and give discharges and releases concerning the Pledged Collateral, all as the Administrative Agent may deem appropriate;

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

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

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

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

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

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

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

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

(x)           to vote for a shareholder or member resolution, or to sign an instrument in writing, sanctioning the transfer of any or all of the Pledged Collateral into the name of the Administrative Agent or one or more of the Secured Creditors or into the name of any transferee to whom the Pledged Collateral or any part thereof may be sold pursuant to Section 8 hereof; and

(xi)          to do and perform all such other acts and things as the Administrative Agent may deem appropriate or convenient in connection with the Pledged Collateral.

This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations shall remain outstanding and until all of the commitments relating thereto shall have been terminated.  The Administrative Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Administrative Agent in this Pledge Agreement, and shall not be liable for any failure to do so or any delay in doing so.  The Administrative Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Administrative Agent solely to protect, preserve and realize upon its security interest in

 

  

8

  

 

the Pledged Collateral.  To the extent any Secured Creditor obtains or seeks to obtain any benefit from this Pledge Agreement or asserts or claims any interest in the Pledged Collateral shall be deemed to have agreed to appoint the Administrative Agent as its attorney-in-fact with all rights and powers conferred to the Administrative Agent under this Pledge Agreement.

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

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

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

(i)           So long as no Event of Default shall have occurred and be continuing, each Pledgor may exercise any and all voting and other consensual rights pertaining to the Pledged Collateral of such Pledgor or any part thereof for any purpose not inconsistent with the terms of this Pledge Agreement or the other Loan Documents; and

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

(e)          Dividend Rights in Respect of the Pledged Collateral.

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

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

(A)           all rights of a Pledgor to receive the dividends, distributions and interest payments that it would otherwise be authorized to receive and retain pursuant to paragraph (i) of this subsection shall cease and all such rights shall thereupon be vested in

 

  

9

  

 

the Administrative Agent, which shall then have the sole right to receive and hold as Pledged Collateral such dividends, distributions and interest payments; and

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

(f)           Release of Pledged Collateral.  To the extent permitted by and in accordance with the Credit Agreement, the Administrative Agent may release any of the Pledged Collateral from this Pledge Agreement or may substitute any of the Pledged Collateral for other Pledged Collateral without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Pledge Agreement as to any Pledged Collateral not expressly released or substituted, and this Pledge Agreement shall continue as a first priority lien on all Pledged Collateral not expressly released or substituted.  Notwithstanding the foregoing, the Administrative Agent may release any Lien on any Pledged Collateral granted to or held by the Administrative Agent under this Pledge Agreement (i) upon the termination of the Pledge Agreement in accordance with the terms hereof, (ii) that is transferred or to be transferred as part of or in connection with any transfer or other disposition permitted under the Loan Documents, or (iii) as approved in accordance with the Credit Agreement.

10.           Application of Proceeds.  After the occurrence of an Event of Default, any payments hereunder and any proceeds of the Pledged Collateral, when received by the Administrative Agent or any of the Secured Creditors in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in the Credit Agreement, and each Pledgor irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Administrative Agent shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the Administrative Agent’s sole discretion, notwithstanding any entry to the contrary upon its books and records.

 

11.           Continuing Agreement.

(a)           This Pledge Agreement shall be a continuing agreement in every respect and shall remain in full force and effect so long as any of the Secured Obligations remains outstanding and until all of the commitments relating thereto have been terminated.  Upon payment or other satisfaction of all Secured Obligations and termination of all commitments relating thereto, this Pledge Agreement shall be automatically terminated and the Administrative Agent and the Secured Creditors shall, upon the request and at the expense of the Pledgors, forthwith release all of its liens and security interests hereunder, shall return all certificates or instruments pledged hereunder and shall execute and deliver all UCC termination statements and/or other documents reasonably requested by the Pledgors evidencing such termination.  Notwithstanding the foregoing, all releases and indemnities provided hereunder shall survive termination of this Pledge Agreement.

(b)           This Pledge Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Secured Creditor as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by the Administrative Agent or

 

  

10

  

 

any Secured Creditor in defending and enforcing such reinstatement shall be deemed to be included as a part of the Secured Obligations.

12.           Amendments and Waivers.  This Pledge Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated except by a written notice instrument executed by each Pledgor and the Administrative Agent; provided, that the Administrative Agent may not amend, waive, modify, change, discharge or terminate any provision of this Pledge Agreement without the written consent of the Required Lenders.

13.           Successors in Interest.  This Pledge Agreement shall create a continuing security interest in the Pledged Collateral and shall be binding upon each Pledgor, its successors and assigns, and shall inure, together with the rights and remedies of the Administrative Agent and the Secured Creditors hereunder, to the benefit of the Administrative Agent and the Secured Creditors and their successors and permitted assigns; provided, however, that, except as provided in the Credit Agreement, none of the Pledgors may assign its rights or delegate its duties hereunder without the prior written consent of the requisite Lenders under the Credit Agreement.  To the fullest extent permitted by law, each Pledgor hereby releases the Administrative Agent and each Secured Creditor, and their respective successors and assigns, from any liability for any act or omission relating to this Pledge Agreement or the Pledged Collateral, except for any liability arising from the gross negligence or willful misconduct of the Administrative Agent or such holder, or their respective Related Parties.

14.           Notices.  All notices required or permitted to be given under this Pledge Agreement shall be given at the address specified below, or at such other address as may be designated in a written notice to the other parties hereto:

	
if to the Pledgors:

	
Ruby Tuesday, Inc.

	  	
150 West Church Avenue

	  	
Maryville, TN 37801

	  	
Attention: Chief Financial Officer

	  	
Telecopy: 865-379-6817

	  	  
	
if to the Administrative Agent:

	
Bank of America, N.A.

	  	
Agency Management

	  	
101 S. Tryon Street

	  	
Mailcode: NC1-002-15-36

	  	
Charlotte, NC 28255-0001

	  	
Attention:  Erik Truette

	  	
Telephone: 980-387-5451

	  	
Facsimile: 704-409-0015

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

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

17.           Governing Law; Submission to Jurisdiction; Venue.

(a)           THIS PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF GEORGIA WITHOUT REGARD TO

 

  

11

  

 

CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

(b)           ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF GEORGIA SITTING IN FULTON COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF GEORGIA, AND BY EXECUTION AND DELIVERY OF THIS PLEDGE AGREEMENT, EACH PLEDGOR AND THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH SECURED CREDITOR, CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH PLEDGOR AND THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH SECURED CREDITOR, IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING 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 ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHER LOAN DOCUMENT RELATED THERETO. EACH PLEDGOR AND THE ADMINISTRATIVE AGENT, ON BEHALF OF ITSELF AND EACH SECURED CREDITOR, WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

18.           Waiver of Right to Trial by Jury.

EACH PARTY TO THIS PLEDGE AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS PLEDGE AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

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

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

21.           Survival.  All representations and warranties of the Pledgors hereunder shall survive the execution and delivery of this Pledge Agreement, the other Loan Documents and the other documents relating to the Secured Obligations, the delivery of the Notes and the extension of credit thereunder or in connection therewith.

  

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

23.           Joint and Several Obligations of Pledgors.

(a)           Each of the Pledgors is accepting joint and several liability hereunder in consideration of the financial accommodation to be provided by the Secured Creditors, for the mutual benefit, directly and indirectly, of each of the Pledgors and in consideration of the undertakings of each of the Pledgors to accept joint and several liability for the obligations of each of them.

(b)           Each of the Pledgors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Pledgors with respect to the payment and performance of all of the Secured Obligations arising under this Pledge Agreement, the other Loan Documents and any other documents relating to the Secured Obligations, it being the intention of the parties hereto that all the Secured Obligations shall be the joint and several obligations of each of the Pledgors without preferences or distinction among them.

(c)           Notwithstanding any provision to the contrary contained herein, in any other of the Loan Documents or in any other documents relating to the Secured Obligations, the obligations of each Pledgor under the Credit Agreement, the other Loan Documents and the documents relating to the Secured Obligations shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under Debtor Relief Laws or any comparable provisions of any applicable state law.

24.           Joinder.  At any time after the date of this Pledge Agreement, one or more additional Persons may become party hereto by executing and delivering to the Administrative Agent a Pledge Supplement.  Immediately upon such execution and delivery of such Pledge Supplement (and without any further action), each such additional Person will become a party to this Pledge Agreement as a “Pledgor” and have all of the rights and obligations of a Pledgor hereunder, and this Pledge Agreement and the Schedules hereto shall be deemed amended by such Pledge Supplement.

 

[Signature Pages Follow]

 

  

13

  

 

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

 

	PLEDGORS: 	 	

RUBY TUESDAY, INC.,

a Georgia corporation

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Senior Vice President	 

 

	 	 	 	
RTBD, INC.

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	President	 

 

	 	 	 	

RT FINANCE, INC.,

a Delaware corporation

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RUBY TUESDAY GC CARDS, INC.,

a Colorado corporation

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RT NEW YORK FRANCHISE, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RT SOUTHWEST FRANCHISE, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

  

  

  

 

	 	 	 	

RT FRANCHISE ACQUISITION, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RT KENTUCKY RESTAURANT HOLDINGS, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RT FLORIDA EQUITY, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RTGC, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RUBY TUESDAY, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

	 	 	 	

RT LAS VEGAS FRANCHISE, LLC,

a Delaware limited liability company

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 /s/ Marguerite N. Duffy	 
	 	 	 	 	Name: 	Marguerite N. Duffy	 
	 	 	 	 	Title: 	Vice President	 

 

  

  

  

Accepted and agreed to as of the date first above written.

 

	

BANK OF AMERICA, N.A.,

as Administrative Agent

	 
	 	 	 	 
	By:	/s/ Erik M. Truette	 
	 	Name: 	Erik M. Truette	 
	 	Title: 	Assistant Vice President	 

  

  

  

  

 

SCHEDULE 2(a)

EQUITY INTERESTS

	
 

Pledgor

	
 

Issuer

	
Number of

Shares/Units

	
Certificate

Number

	
Percentage Ownership

	
Ruby Tuesday, Inc.

	
RTBD, Inc.

	
100

	
2

	
100% - Ruby Tuesday, Inc.

	
RTBD, Inc.

	
RT Finance, Inc.

	
N/A

	
N/A

	
100% - RTBD, Inc.

	
RTGC, LLC

	
Ruby Tuesday GC Cards, Inc.

	
N/A

	
N/A

	
100% - RTGC, LLC

	
RT Florida Equity, LLC

	
RT Tampa Franchise, L.P.

	
N/A

	
N/A

	
 1% - RT Tampa, Inc. (General Partner)

99%-RT Florida Equity, LLC

	
Ruby Tuesday, Inc.

	
RT Tampa, Inc.

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Orlando, Inc.

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT South Florida, Inc.

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT West Palm Beach, Inc.

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT One Percent Holdings, Inc.

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
RT Florida Equity, LLC

	
RT Orlando Franchise, L.P.

	
N/A

	
N/A

	
 1% - RT Orlando, Inc. (General Partner)

99% - RT Florida Equity, LLC

	
RT Florida Equity, LLC

	
RT South Florida Franchise, L.P.

	
N/A

	
N/A

	
 1% - RT South Florida, Inc. (Gen. Partner)

99% - RT Florida Equity, LLC

	
Ruby Tuesday, Inc.

	
RT New York Franchise, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
RT Franchise Acquisition, LLC

	
RT Southwest Franchise, LLC

	
N/A

	
N/A

	
 1% - RT One Percent Holdings, Inc.

99%- RT Franchise Acquisition, LLC

	
Ruby Tuesday, Inc.

	
RT Michiana Franchise, LLC

	
N/A

	
N/A

	
1% - RT One Percent Holdings, LLC

99% -Ruby Tuesday, Inc.

	
RTBD, Inc.

	
RT Franchise Acquisition, LLC

	
N/A

	
N/A

	
100% - RTBD, Inc.

	
RTBD, Inc.

	
RT Kentucky Restaurant Holdings, LLC

	
N/A

	
N/A

	
100% - RTBD, Inc.

	
Ruby Tuesday, Inc.

	
RT Florida Equity, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RTGC, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
RT Florida Equity, LLC

	
RT West Palm Beach Franchise, L.P.

	
N/A

	
N/A

	
1% - RT West Palm Beach, Inc. (Gen. Partner)

99% - RT Florida Equity, LLC

	
RT Franchise Acquisition, LLC

	
RT Michigan Franchise, LLC

	
N/A

	
N/A

	
100% - RT Franchise Acquisition, LLC

	
RT Franchise Acquisition, LLC

	
RT Detroit Franchise, LLC

	
N/A

	
N/A

	
100% - RT Franchise Acquisition, LLC

	
Ruby Tuesday, Inc.

	
Ruby Tuesday, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT New England Franchise, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Long Island Franchise, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Las Vegas Franchise, LLC

	
N/A

	
N/A

	
99% - RT One Percent Holdings, Inc.

1% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Minneapolis Franchise, LLC

	
N/A

	
N/A

	
50% - Ruby Tuesday, Inc.

50% - RT Minneapolis Holdings, LLC

	
Ruby Tuesday, Inc.

	
RT Denver Franchise, LP

	
N/A

	
N/A

	
99.9% - Ruby Tuesday, Inc. 0.1% - RT Denver, Inc.

 

  

  

  

 

	 	 	 	 	(General Partner)
	
Ruby Tuesday, Inc.

	
RT Omaha Franchise, LLC

	
N/A

	
N/A

	
50% - Ruby Tuesday,  Inc.

50% - RT Omaha Holdings, LLC

	
Ruby Tuesday, Inc.

	
RT KCMO Franchise, LLC

	
N/A

	
N/A

	
50% - RT One Percent Holdings, Inc.

50% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Portland Franchise, LLC

	
N/A

	
N/A

	
99% - RT One Percent Holdings, Inc.

1% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
Quality Outdoor Services, Inc.

	
90 shares

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Airport, Inc.

	
100 shares

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT One Percent Holdings, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Denver, Inc.

	
100 shares

	
1

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Louisville, Inc.

	
100 shares

	
1

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Restaurant Services, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
RT Franchise Acquisition, LLC

	
RT Louisville Franchise, LLC

	
N/A

	
N/A

	
99% - RT Franchise Acquisition, LLC

1% - RT Louisville, Inc.

	
Ruby Tuesday, Inc.

	
RT McGhee Tyson, LLC

	
N/A

	
N/A

	
99% - Ruby Tuesday, Inc.

1% - RT Airport, Inc.

	
RTBD, Inc.

	
RT Minneapolis Holdings, LLC

	
N/A

	
N/A

	
100% - RTBD, Inc.

	
RTBD, Inc.

	
RT Omaha Holdings, LLC

	
N/A

	
N/A

	
100% - RTBD, Inc.

	
RTBD, Inc.

	
RT  New Hampshire Restaurant Holdings, LLC

	
N/A

	
N/A

	
100% - RTBD, Inc.

	
RT Franchise Acquisition, LLC/RT Finance, Inc.

	
RT Northern California Franchise, LLC

	
N/A

	
N/A

	
99% - RT Franchise Acquisition, LLC

1% - RT Finance, Inc.

	
RTBD, Inc./RT Franchise Acquisition, LLC

	
RTTA, LP

	
N/A

	
N/A

	
1% - RTBD, Inc. (Gen. Partner)

99% - RT Franchise Acquisition, LLC

	
Ruby Tuesday, Inc.

	
Wok Hay 2, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

	
Ruby Tuesday, Inc.

	
RT Distributing, LLC

	
N/A

	
N/A

	
100% - Ruby Tuesday, Inc.

  

2

  

 

EXHIBIT 4(a)

FORM OF IRREVOCABLE STOCK POWER

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

 

the following shares of capital stock of ____________________, a ____________ ____________:

 

 

	
Number of Shares

	
Certificate Number

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

 

 

 

	 	 	 	
[HOLDER]

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 	 
	 	 	 	Name:  	 	 
	 	 	 	Title:  	 	 

 

  

  

  

SCHEDULE I

FORM OF PLEDGE SUPPLEMENT AGREEMENT

PLEDGE SUPPLEMENT AGREEMENT (this “Supplement”), dated as of ________ __, 20__ is by and between [________] (the “New Pledgor”) and BANK OF AMERICA, N.A., in its capacity as Administrative Agent under the Pledge Agreement dated as of May 14, 2012 (as amended or modified from time to time, the “Pledge Agreement”) among Ruby Tuesday, Inc., the other Pledgors party thereto and Bank of America, N.A., in its capacity as Administrative Agent.  Terms used but not otherwise defined herein shall have the meanings provided in the Pledge Agreement.

The New Pledgor hereby agrees as follows with the Administrative Agent, for the benefit of the Secured Creditors:

1.           The New Pledgor, as security for the Secured Obligations, hereby pledges and assigns to the Administrative Agent, for the benefit of the Secured Creditors, and grants to the Administrative Agent, for the benefit of the Secured Creditors, a continuing security interest in any and all right, title and interest of the New Pledgor in and to the Pledged Shares, including, without limitation, the Pledged Shares identified on Schedule A attached hereto and all of the Pledged Collateral relating thereto pursuant to the terms of the Pledge Agreement.  The information on the Schedule 2(a) to the Pledge Agreement is hereby amended to add the information shown on the attached Schedule A.  The New Pledgor intends that the Pledge Agreement be construed as if the Pledged Shares identified on Schedule A attached hereto had originally been included in Schedule 2(a) to the Pledge Agreement.

2.           The New Pledgor hereby represents and warrants to the Administrative Agent, for the benefit of the Secured Creditors, that (a) this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally, (b) the representations and warranties made by it as a Pledgor under the Pledge Agreement are true and correct on and as of the date hereof based upon the applicable information referred to in clause (c) of this Section and (c) the original stock certificate(s) evidencing the Pledged Shares identified on Schedule A attached hereto and executed stock power(s) with respect thereto in the form of Schedule B hereto accompany this Supplement.

3.           The New Pledgor authorizes the Administrative Agent to file one or more financing statements (with a description of the Pledged Collateral contained herein) disclosing the Administrative Agent’s security interest in the Pledged Collateral.  The New Pledgor agrees to execute and deliver to the Administrative Agent such financing statements and other filings as may be requested by the Administrative Agent in order to perfect and protect the security interest created hereby in the Pledged Collateral of such New Pledgor.

4.           The New Pledgor hereby acknowledges, agrees and confirms that by execution of this Supplement, the New Pledgor will be deemed to be a party to the Pledge Agreement and a “Pledgor” for all purposes thereunder and shall have all of the obligations of the Pledgors thereunder as though it had executed the Pledge Agreement.

5.           This Supplement may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute one contract.

6.           This Supplement shall be governed by and construed and interpreted in accordance with the laws of the State of Georgia.

[remainder of page intentionally left blank]

 

  

  

  

 

IN WITNESS WHEREOF, the New Pledgor has caused this Supplement to be duly executed by its authorized officer, and the Administrative Agent has caused the same to be accepted by its authorized officer, as of the day and year first above written.

 

 

	 	 	 	
[New Pledgor]

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 	 
	 	 	 	Name:  	 	 
	 	 	 	Title:  	 	 

Acknowledged and accepted:

 

 

	

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

	 
	 	 	 	 
	By:	 	 
	Name:  	 	 
	Title: 	 	 

 

  

2  

  

 

Schedule A

to

Pledge Supplement Agreement

EQUITY INTERESTS

	
 

Pledgor

	
 

Issuer

	
Number of

Shares/Units

	
Certificate

Number

	
Percentage Ownership

 

	  	  	  	  	  

  

3 

  

 

SCHEDULE B

FORM OF IRREVOCABLE STOCK POWER

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

the following shares of capital stock of ____________________, a ____________ ___________:

 

 

	
Number of Shares

	
Certificate Number

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

 

	 	 	 	
[HOLDER]

	 
	 	 	 	 	 	 	 
	 	 	 	By:	 	 
	 	 	 	Name:  	 	 
	 	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}]]