Document:

Exhibit 10.1

 

EXECUTION VERSION

 

FIRST AMENDMENT TO CREDIT AGREEMENT AND
WAIVER

 

THIS FIRST AMENDMENT
TO CREDIT AGREEMENT AND WAIVER (this “Agreement”), dated as of May 29, 2020, is by and among RED ROBIN INTERNATIONAL,
INC., a Nevada corporation (the “Borrower”), RED ROBIN GOURMET BURGERS, INC., a Delaware corporation (the “Parent”),
the Guarantors, the Lenders party hereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative
agent on behalf of the Lenders under the Credit Agreement (as hereinafter defined) (in such capacity, the “Administrative
Agent”).

 

W I T N E S S E T H

 

WHEREAS, the Borrower,
the Parent, the other Guarantors, the Lenders from time to time party thereto, and the Administrative Agent are parties to that
certain Amended and Restated Credit Agreement dated as of January 10, 2020 (as amended, modified, extended, restated, replaced,
or supplemented from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed thereto in the Credit Agreement, as amended hereby);

 

WHEREAS, the Borrower
has informed the Administrative Agent that certain Events of Default have occurred and are continuing under the Credit Agreement
as a result of the Borrower’s failure to comply with (i) the Lease Adjusted Leverage Ratio financial covenant under Section
5.9(a) of the Credit Agreement as of the fiscal quarter ending on or about April 19, 2020 and (ii) the Fixed Charge Coverage Ratio
financial covenant under Section 5.9(b) of the Credit Agreement as of the fiscal quarter ending on or about April 19, 2020 (the
 “Existing Events of Default”);

 

WHEREAS, the Credit
Parties have requested that the Lenders (x) make certain amendments to the Credit Agreement and (y) waive the Existing Events of
Default, in each case, as set forth herein; and

 

WHEREAS, the Lenders
have agreed to (x) amend the Credit Agreement and (y) waive the Existing Events of Default, in each case, subject to the terms
and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

AMENDMENTS TO CREDIT AGREEMENT

 

1.1       Amendment
to “Applicable Percentage”. The definition of “Applicable Percentage” in Section 1.1 of the
Credit Agreement is hereby amended by:

 

(i) deleting the pricing grid
therein and replacing it with the following pricing grid:

 

	Level	Lease Adjusted Leverage Ratio	Base Rate Margin	LIBOR Rate Margin/Letter of Credit Fee	Commitment Fee
	I	<3.75 to 1.00	0.75%	1.75%	0.25%
	II	≥ 3.75 to 1.00 but

<4.00 to 1.00	1.00%	2.00%	0.30%
	III	≥ 4.00 to 1.00 but

<4.25 to 1.00	1.25%	2.25%	0.35%
	IV	≥ 4.25 to 1.00 but

 < 4.75 to 1.00	1.50%	2.50%	0.40%
	V	≥ 4.75 to 1.00	1.75%	2.75%	0.45%

 

     

     

    

 

and (ii) inserting
the following new sentence at the end thereof:

 

Notwithstanding
the foregoing, from the First Amendment Effective Date through the first Interest Determination Date occurring after the last day
of the fiscal quarter of the Parent ending on or about April 18, 2021, the Applicable Percentage shall be equal to (i) 3.25% with
respect to LIBOR Rate Loans, (ii) 3.25% with respect to Letter of Credit Fees, (iii) 2.25% with respect to Base Rate Loans and
(iv) 0.45% with respect to the Commitment Fee.

 

1.2       Amendment
to “Consolidated Cash on Hand”. The definition of “Consolidated Cash on Hand” in Section 1.1
of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Consolidated
Cash on Hand” means, as of any date of determination, the sum of the amount of cash and Cash Equivalents of the Credit
Parties and their Subsidiaries on a Consolidated basis (it being understood that such amount shall exclude in any event any cash
and Cash Equivalents identified as “restricted” on the balance sheet of the Parent (other than cash or Cash Equivalents
restricted in favor of the Administrative Agent) or otherwise subject to a security interest in favor of any other Person (other
than security interests under the Loan Documents)).

 

1.3       Amendment
to “Expansion Capital Expenditures”. The definition of “Expansion Capital Expenditures” in Section
1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Expansion
Capital Expenditures” shall mean, for any period, all capital expenditures of the Parent and its Subsidiaries on a consolidated
basis for such period (as determined in accordance with GAAP) relating to (i) the construction of new stores and/or distribution
centers to be operated by the Parent or any of its Subsidiaries, (ii) the Store Rebranding and Outfitting Program and (iii) discretionary
information technology and discretionary software update projects. The term “Expansion Capital Expenditures” shall
not include capital expenditures in respect of the reinvestment of proceeds derived from Recovery Events received by the Parent
and its Subsidiaries to the extent that such reinvestment is permitted under the Credit Documents.

 

1.4       Amendment
to “Lease Adjusted Leverage Ratio”. The definition of “Lease Adjusted Leverage Ratio” in Section
1.1 of the Credit Agreement is hereby amended by inserting the following new sentence at the end thereof:

 

Notwithstanding
the foregoing, for purposes of calculating the Lease Adjusted Leverage Ratio as of the end of the fiscal quarters of the
Parent ending on or about April 18, 2021, July 11, 2021 and October 3, 2021, Consolidated EBITDA shall be calculated as (x)
in the case of the fiscal quarter ending on or about April 18, 2021, actual Consolidated EBITDA for such fiscal quarter divided
by 33.9%, (y) in the case of the fiscal quarter ending on or about July 11, 2021, actual Consolidated EBITDA for the
period of two (2) consecutive fiscal quarters then ending divided by 59.1%, and (z) in the case of the fiscal quarter
ending on or about October 3, 2021, actual Consolidated EBITDA for the period of three (3) consecutive fiscal quarters then
ending divided by 73.6%.

 

     

     

    

 

1.5       Amendment
to “LIBOR”. The last sentence of the definition of “LIBOR” in Section 1.1 of the Credit Agreement
is hereby amended and restated in its entirety to read as follows:

 

Notwithstanding
the foregoing, (x) in no event shall LIBOR (including any Benchmark Replacement with respect thereto) be less than 1.00% and (y)
unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 2.14(c), in the event that
a Benchmark Replacement with respect to LIBOR is implemented then all references herein to LIBOR shall be deemed references to
such Benchmark Replacement.

 

1.6       Amendment
to “Net Cash Proceeds”. The definition of “Net Cash Proceeds” in Section 1.1 of the Credit Agreement
is hereby amended by (i) deleting “and” at the end of clause (a), (ii) replacing “.” with “, and”
at the end of clause (b) and (iii) and inserting the following new clause (c) at the end thereof:

 

(c) with
respect to any Equity Issuance by the Parent or Convertible Debt Issuance by the Parent or any of its Subsidiaries, the gross cash
proceeds received by the Parent or any of its Subsidiaries therefrom less all reasonable and customary out-of-pocket legal,
underwriting and other fees and expenses incurred in connection therewith.

 

1.7       Amendment
to “Permitted Acquisition”. The definition of “Permitted Acquisition” in Section 1.1 of the
Credit Agreement is hereby amended by inserting the following new sentence at the end thereof:

 

Notwithstanding
the foregoing, as of the First Amendment Effective Date, no Permitted Acquisitions shall be permitted to be made until the later
to occur of (x) delivery of a compliance certificate pursuant to Section 5.1(c) demonstrating compliance with the financial
covenants set forth in Section 5.9 for the fiscal quarter of the Parent ending on or about April 18, 2021 and (y) Lease Adjusted
Leverage Ratio is less than or equal to 5.00 to 1.00 based on the compliance certificate delivered pursuant to Section 5.1(c)
for the most recently ended fiscal quarter of the Parent.

 

1.8       Amendment
to “Permitted Investment”. Clause (xiii) of the definition of “Permitted Investment” in Section
1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(xiii)       in
addition to the Investments otherwise expressly permitted by this definition, other Investments by any Credit Party in an
aggregate amount not to exceed $40,000,000 during the term of this Agreement; provided that no Default or Event of
Default shall have occurred and be continuing at the time of such Investments or result therefrom; provided further,
as of the First Amendment Effective Date, no Investments shall be permitted to be made under this clause (xiii) until the
later to occur of (x) delivery of a compliance certificate pursuant to Section 5.1(c) demonstrating compliance with the
financial covenants set forth in Section 5.9 for the fiscal quarter of the Parent ending on or about July 11, 2021 and (y)
Lease Adjusted Leverage Ratio is less than or equal to 5.00 to 1.00 based on the compliance certificate delivered pursuant to
Section 5.1(c) for the most recently ended fiscal quarter of the Parent.

 

     

     

    

 

1.9       Amendment
to Section 1.1. Section 1.1 of the Credit Agreement is hereby amended by inserting the following new definitions in the appropriate
alphabetical order therein:

 

“Convertible
Debt Issuance” means any issuance by the Parent or the Borrower of unsecured Indebtedness of the Parent or the Borrower
that (a) as of the date of issuance thereof contains customary conversion or exchange rights (as determined by the board of directors
of the Parent or the Borrower, or a committee thereof, in good faith) and (b) is convertible or exchangeable into shares of common
stock of the Parent (or other securities following a merger event, reclassification or other change of the common stock of the
Parent), cash or a combination thereof (such amount of cash determined by reference to the price of the Parent’s common stock
or such other securities), and cash in lieu of fractional shares of common stock of the Parent (it being understood that any such
Indebtedness of the Parent for which any Credit Party or Subsidiary has corresponding obligations with the Parent shall be deemed,
without duplication, to be Indebtedness of the Credit Parties and their Subsidiaries hereunder), to the extent permitted pursuant
to Section 6.1 and on terms and conditions acceptable to the Administrative Agent, in its sole discretion.

 

“Equity
Issuance” means (a) any issuance by the Parent of shares of its Capital Stock to any Person that is not a Credit
Party (including in connection with the exercise of options or warrants or the conversion of any debt securities to equity) and
(b) any capital contribution from any Person that is not a Credit Party or a Subsidiary into any Credit Party or any Subsidiary
thereof.

 

“First
Amendment Effective Date” shall mean May 29, 2020.

 

“Liquidity”
means, as of any date of determination, an amount equal to the sum of (a) the Accessible Borrowing Availability as of such date
plus (b) Consolidated Cash on Hand as of such date.

 

“Minimum
Capital Event” means, following the First Amendment Effective Date, receipt by the Borrower of at least $25,000,000 in
the aggregate from Net Cash Proceeds of (i) Equity Issuances by the Parent (other than the exercise of stock options issued as
part of employee compensation) or (ii) Convertible Debt Issuances by the Parent or its Subsidiaries, in each case, in one or more
transactions.

 

1.10       Amendment
to Section 2.8(b). Section 2.8(b) of the Credit Agreement is hereby amended by inserting the following new clauses (vii) and
(viii) at the end thereof:

 

(vii)       Equity
Issuances or Convertible Debt Issuances. The Borrower shall make mandatory principal prepayments of the Loans and/or Cash
Collateralize the LOC Obligations in the manner set forth herein in an amount equal to fifty percent (50%) of the aggregate
Net Cash Proceeds from any Equity Issuances (other than the exercise price on stock options issued as part of employee
compensation) or Convertible Debt Issuances in excess of $50,000,000 in the aggregate (together with any other Equity
Issuances or Convertible Debt Issuances made after the First Amendment Effective Date). Any such prepayment pursuant to this
clause (vii) shall be made within five (5) Business Days after the date of receipt of the Net Cash Proceeds of any such
Equity Issuance or Convertible Debt Issuances and shall be applied (1) first to the outstanding Revolving Loans (with
a corresponding permanent reduction in the Revolving Committed Amount) until the Revolving Committed Amount is reduced to
$100,000,000 and (2) second to the Term Loans and the Incremental Term Loans (if any) in the inverse order of maturity
of the remaining amortization payments pursuant to Section 2.2(b)). Within the parameters of the applications set forth
above, prepayments shall be applied first to Base Rate Loans and then to LIBOR Rate Loans in direct order of Interest Period
maturities. All prepayments under this Section 2.8(b) shall be subject to Section 2.17 and be accompanied by
interest on the principal amount prepaid through the date of prepayment.

 

     

     

    

 

(viii)       Monthly
Revolving Loans Paydown. To the extent that the Consolidated Cash on Hand exceeds $30,000,000 at the end of any fiscal monthly
period, in connection with the delivery of the financial statements pursuant to Section 5.1(e), the Borrower shall make mandatory
principal prepayments on the outstanding Revolving Loans (without a corresponding permanent reduction in the Revolving Committed
Amount) in an amount equal to such excess.

 

1.11     Amendment
to Section 3.2. Section 3.2 of the Credit Agreement is hereby amended by inserting the following proviso at the end thereof:

 

; provided
that, for purposes of this Section 3.2, only from the First Amendment Effective Date until the date in which the Loan Parties are
required to deliver the financial statements and compliance certificate for the fiscal quarter of the Parent ending on or about
April 18, 2021 pursuant to Section 5.1(b) and Section 5.1(c) respectively, the impacts of the COVID-19 pandemic on the business,
operations, property or condition (financial or otherwise) of the Credit Parties and their Subsidiaries, taken as a whole, that
(x) occurred prior to the First Amendment Effective Date and were disclosed in public filings or in writing to the Administrative
Agent and the Lenders prior to the First Amendment Effective Date and (y) that were reasonably foreseeable (in consequence and
duration) in light of any event, development or circumstance described in the foregoing clause (x), shall in each case be disregarded.

 

1.12     Amendment
to Section 3.13. Section 3.13 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section
3.13     Ownership; Insurance. Each of the Credit Parties is the owner of, and has good and,
to the extent applicable, marketable title to, and adequate insurance coverage for, all of its respective assets that,
together with assets leased or licensed by the Credit Parties, represents all assets individually or in the aggregate
material to the conduct of the businesses of the Credit Parties taken as a whole, and none of such assets is subject to any
Lien other than Permitted Liens. Each Credit Party enjoys peaceful and undisturbed possession under all of its leases and all
such leases are valid and subsisting and in full force and effect other than exceptions to the foregoing that could not
reasonably be expected to have a Material Adverse Effect; provided that, for purposes of this sentence only, only from
the First Amendment Effective Date until the date in which the Loan Parties are required to deliver the financial statements
and compliance certificate for the fiscal quarter of the Parent ending on or about April 18, 2021 pursuant to Section 5.1(b)
and Section 5.1(c) respectively, the impacts of the COVID-19 pandemic on the business, operations, property or condition
(financial or otherwise) of the Credit Parties and their Subsidiaries, taken as a whole, that (x) occurred prior to the First
Amendment Effective Date and were disclosed in public filings or in writing to the Administrative Agent and the Lenders prior
to the First Amendment Effective Date and (y) that were reasonably foreseeable (in consequence and duration) in light of any
event, development or circumstance described in the foregoing clause (x), shall in each case be disregarded for the purposes
of determining whether a Material Adverse Effect has occurred under this sentence. The Credit Parties have delivered, or made
available for review, complete and accurate copies of all material leases to the Administrative Agent as of the Closing
Date.

 

     

     

    

 

1.13     Amendment
to Section 3.17. Section 3.17 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 3.17    Solvency.
As of the Closing Date, the fair saleable value of all Credit Parties’ assets, taken as a whole and measured on a going concern
basis, exceeds all probable liabilities of the Credit Parties, taken as a whole, including those to be incurred pursuant to this
Agreement. As of the Closing Date, the Credit Parties, on a consolidated basis, (a) do not have unreasonably small capital in relation
to the business in which they are or propose to be engaged or (b) have not incurred, or believe that they will incur after giving
effect to the transactions contemplated by this Agreement, debts beyond its ability to pay such debts as they become due.

 

1.14     Amendment
to Section 4.2(a). Section 4.2(a) of the Credit Agreement is hereby amended by and restated in its entirety to read as follows:

 

(a) Representations
and Warranties. The representations and warranties made by the Credit Parties herein, in the Security Documents or which are
contained in any certificate furnished at any time under or in connection herewith shall be true and correct in all material respects
on and as of the date of such Extension of Credit as if made on and as of such date, except for representations and warranties
expressly stated to relate to a specific earlier date; provided that, in each case, such materiality qualifier shall not
be applicable to any representation or warranty that is already qualified or modified by materiality or reference to Material Adverse
Effect in the text thereof.

 

1.15     Amendment
to Section 5.1(b). Section 5.1(b) of the Credit Agreement is hereby amended by inserting the following proviso at the end thereof:

 

; provided
that, with respect to the fiscal quarter of the Parent ending on or about April 19, 2020, (x) such financial statements referenced
herein shall be delivered to the Administrative Agent within ninety (90) days of such fiscal quarter end and (y) the draft version
of the consolidated balance sheet of the Parent and its consolidated Subsidiaries and related consolidated statements of income
and retained earnings and of cash flows for the Parent and its consolidated Subsidiaries for such quarterly period (along with
a calculation of the financial covenants set forth in Section 5.9), in form and substance reasonably satisfactory to the Administrative
Agent, shall be delivered to the Administrative Agent within forty-five (45) days of such fiscal quarter end;

 

1.16     Amendment
to Section 5.1. Section 5.1 of the Credit Agreement is hereby amended by inserting the following new clause (e) at the end
thereof:

 

(e)       Monthly
Financial Statements. As soon as practicable and in any event within twelve (12) Business Days after the end of each
fiscal monthly period (commencing with the fiscal monthly period ended June 14, 2020), (w) a consolidated gross same store
sales report of the Credit Parties and their Subsidiaries for such period, setting forth, in each case in comparative form,
the corresponding figures for the corresponding period of the previous fiscal year of the Parent, (x) a thirteen (13) week
forecast of cash flows for the Credit Parties and their Subsidiaries, on a Consolidated basis (including the amount of cash
and Cash Equivalents then on hand), (y) evidence of the Consolidated Cash on Hand as of the end of such fiscal monthly period
and an indication of the mandatory prepayment (if any) required to be made pursuant to Section 2.8(b)(viii) and (z) solely
during the Liquidity Measurement Period, a calculation of Liquidity for such period and demonstrating compliance with Section
9.15(c) as of such date of determination, in each case, in a form reasonably satisfactory to the Administrative Agent; provided
that the obligation to deliver the materials in clauses (w) and (x) shall only apply until the delivery of a compliance
certificate pursuant to Section 5.1(c) demonstrating compliance with the financial covenants set forth in Section 5.9
for the fiscal quarter of the Parent ending on or about December 26, 2021.

 

     

     

    

 

1.17     Amendment
to Section 5.9(a). Section 5.9(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(a)       Lease
Adjusted Leverage Ratio.

 

(i)       Prior
to the Minimum Capital Event, as of the last day of any fiscal quarter of the Parent ending during the periods specified below,
beginning with the fiscal quarter ending on or about October 4, 2020, the Lease Adjusted Leverage Ratio shall be less than or equal
to the corresponding ratio set forth below:

 

	Period	Maximum Ratio
	October 4, 2020 (the last day of the third fiscal quarter of the 2020 fiscal year of the Parent) through December 27, 2020 (the last day of the fourth fiscal quarter of the 2020 fiscal year of the Parent)	5.00 to 1.00
	December 28, 2020 (the first day of the first fiscal year of the 2021 fiscal year) through December 26, 2021 (the last day of the fourth fiscal quarter of the 2021 fiscal year of the Parent)	4.75 to 1.00
	December 27, 2021 (the first day of the first fiscal quarter of the 2022 fiscal year of the Parent) and thereafter	4.50 to 1.00

 

 

Notwithstanding
the foregoing, the covenant in clause (i) of this Section 5.9(a) shall not be tested as of the end of the fiscal quarter of the
Parent ending on or about July 12, 2020 (but otherwise shall be deemed to be in effect with respect to such fiscal quarter end
for all provisions under this Agreement and the other Loan Documents that refer to compliance or pro forma compliance with Section
5.9 (it being understood and agreed that the maximum Lease Adjusted Leverage Ratio for such fiscal quarter for such purposes shall
be 5.00 to 1.00)).

 

(ii)       Following
the Minimum Capital Event, as of the last day of any fiscal quarter of the Parent ending during the periods specified below, beginning
with the fiscal quarter ending on or about April 18, 2021, the Lease Adjusted Leverage Ratio shall be less than or equal to the
corresponding ratio set forth below:

 

	Period	Maximum Ratio
	April 18, 2021 (the last day of the first fiscal quarter of the 2021 fiscal year of the Parent)	5.50 to 1.00
	July 11, 2021 (the last day of the second fiscal quarter of the 2021 fiscal year of the Parent)	5.25 to 1.00
	October 3, 2021 (the last day of the third fiscal quarter of the 2021 fiscal year of the Parent)	5.00 to 1.00
	December 26, 2021 (the last day of the fourth fiscal quarter of the 2021 fiscal year of the Parent)	4.75 to 1.00
	December 27, 2021 (the first day of the first fiscal quarter of the 2022 fiscal year of the Parent) and thereafter	4.50 to 1.00

 

 

     

     

    

 

Notwithstanding
the foregoing, following the Minimum Capital Event, the covenant in clause (ii) this Section 5.9(a) shall not be tested as of the
end of the fiscal quarters of the Parent ending on or about July 12, 2020, October 4, 2020 and December 27, 2020 (but otherwise
shall be deemed to be in effect with respect to each such fiscal quarter end for all provisions under this Agreement and the other
Loan Documents that refer to compliance or pro forma compliance with Section 5.9 (it being understood and agreed that the maximum
Lease Adjusted Leverage Ratio for each such fiscal quarter for such purposes shall be 5.00 to 1.00)).

 

1.18     Amendment
to Section 5.9(b). Section 5.9(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(b)       Fixed
Charge Coverage Ratio. The Fixed Charge Coverage Ratio, as of the last day of each fiscal quarter of the Parent, shall be greater
than or equal to 1.25 to 1.0. Notwithstanding the foregoing, (i) the covenant in this Section 5.9(b) shall not be tested as of
the end of the fiscal quarter of the Parent ending on or about July 12, 2020 and (ii) following the Minimum Capital Event, the
covenant in this Section 5.9(b) shall not be tested as of the end of the fiscal quarters of the Parent ending on or about October
4, 2020 and December 27, 2020 (but, in each case, otherwise shall be deemed to be in effect with respect to each such fiscal quarter
end for all provisions under this Agreement and the other Loan Documents that refer to compliance or pro forma compliance with
Section 5.9). In addition, (x) for the fiscal quarter ending on or about April 18, 2021, the Fixed Charge Coverage Ratio shall
be determined for only the single fiscal quarter of the Parent then ended (rather than the period of four (4) consecutive fiscal
quarters of the Parent then ended), (y) for the fiscal quarter ending on or about July 11, 2021, the Fixed Charge Coverage Ratio
shall be determined for only the period of the two (2) consecutive fiscal quarters of the Parent then ended (rather than the period
of four (4) consecutive fiscal quarters of the Parent then ended) and (z) for the fiscal quarter ending on or about October 3,
2021, the Fixed Charge Coverage Ratio shall be determined for only the period of the three (3) consecutive fiscal quarters of the
Parent then ended (rather than the period of four (4) consecutive fiscal quarters of the Parent then ended).

 

1.19     Amendment
to Section 5.9. Section 5.9 of the Credit Agreement is hereby amended by inserting the following clause (c) at the end thereof:

 

(c)       Minimum
Liquidity. As of the last day of the fiscal monthly period of the Parent from the First Amendment Effective Date through March
21, 2021 (the “Liquidity Measurement Period”), Liquidity shall not be less than $25,000,000 plus fifty
percent (50%) of the Net Cash Proceeds of any Equity Issuances or Convertible Debt Issuances by the Parent or any of its Subsidiaries
in excess of $15,000,000 in the aggregate effected during the Liquidity Measurement Period (excluding any amounts required to be
used to make prepayments on the Loans pursuant to Section 2.8(b)(vii) and (viii)).

 

     

     

    

 

1.20     Amendment
to Article V. Article V of the Credit Agreement is hereby amended by inserting the following new Section 5.18 at the end thereof:

 

5.18 Advisor.
The Credit Parties hereby acknowledge and agree that the Administrative Agent may engage a financial advisor (the “Agent
Financial Advisor”) to, among other things, perform a review of the Credit Parties’ financial performance, financial
reporting, financial forecasts and short term liquidity.  To the extent that the Administrative Agent engages the Agent Financial
Advisor, the Credit Parties shall (a) provide the Agent Financial Advisor with reasonable access to the Credit Parties’ facilities,
members of management and financial information as is necessary to perform the services within the scope of the engagement and
(b) reimburse the Administrative Agent promptly upon demand for the reasonable fees and expenses incurred by the Administrative
Agent in connection with the engagement of the Agent Financial Advisor.

 

1.21     Amendment
to Section 6.11. Section 6.11 of the Credit Agreement is hereby amended by inserting the following new sentence at the end
thereof:

 

Notwithstanding
the foregoing, as of the First Amendment Effective Date, no Restricted Payments shall be permitted to be made under clause (c)
of this Section 6.11 until the later to occur of (x) delivery of a compliance certificate pursuant to Section 5.1(c) demonstrating
compliance with the financial covenants set forth in Section 5.9 for the fiscal quarter of the Parent ending on or about July 11,
2021 and (y) Lease Adjusted Leverage Ratio is less than or equal to 5.00 to 1.00 based on the compliance certificate delivered
pursuant to Section 5.1(c) for the most recently ended fiscal quarter of the Parent.

 

1.22     Amendment
to Article VI. Article VI of the Credit Agreement is hereby amended by inserting the following new Section 6.17 at the end
thereof:

 

6.17       Expansion
Capital Expenditures. The Credit Parties and their Subsidiaries shall be permitted to make, or become legally obligated to
make, Expansion Capital Expenditures so long as (x) no Default or Event of Default shall have occurred and be continuing at such
time or would result therefrom and (y) the Credit Parties will be in compliance on a Pro Forma Basis with the financial covenants
set forth in Section 5.9 after giving effect thereto. Notwithstanding the foregoing, as of the First Amendment Effective Date,
no Expansion Capital Expenditures shall be permitted to be made (other than Expansion Capital Expenditures for work commenced prior
to the First Amendment Effective Date in an aggregate amount not to exceed $3,000,000) until the later to occur of (x) delivery
of a compliance certificate pursuant to Section 5.1(c) demonstrating compliance with the financial covenants set forth in
Section 5.9 for the fiscal quarter of the Parent ending on or about July 11, 2021 and (y) Lease Adjusted Leverage Ratio is less
than or equal to 5.00 to 1.00 based on the compliance certificate delivered pursuant to Section 5.1(c) for the most recently
ended fiscal quarter of the Parent; provided that after the Minimum Capital Event, this sentence shall not prohibit the
Credit Parties and their Subsidiaries from making Expansion Capital Expenditures in an aggregate amount not to exceed $5,000,000.

 

1.23     Amendment
to Section 7.1(c). Section 7.1(c) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

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

 

     

     

    

 

ARTICLE II

WAIVER

 

2.1       Existing
Events of Default. Effective as of the First Amendment Effective Date, and subject to the terms and conditions set forth herein
and in reliance upon the representations and warranties set forth herein, the Administrative Agent and the Lenders hereby waive
the Existing Events of Default.

 

2.2       Financial
Covenants.

 

(a)       Effective
as of the First Amendment Effective Date, and subject to the terms and conditions set forth herein and in reliance upon the representations
and warranties set forth herein, the Administrative Agent and the Lenders hereby waive compliance by the Credit Parties with Section
5.9 of the Credit Agreement, solely for the fiscal quarter of the Parent ending on or about July 12, 2020 (and for this purpose
such waiver shall be interpreted as if the Credit Parties were not required to comply with Section 5.9 of the Credit Agreement
for the fiscal quarter of the Parent ending on or about July 12, 2020).

 

(b)       Subject
to the terms and conditions set forth herein and in reliance upon the representations and warranties set forth herein, it is acknowledged
and agreed that, upon the Minimum Capital Event, the Administrative Agent and the Lenders shall be deemed to have waived compliance
by the Credit Parties with Section 5.9 of the Credit Agreement, solely for the fiscal quarters of the Parent ending on or about
October 4, 2020 and December 27, 2020 (and for this purpose such waiver shall be interpreted as if the Credit Parties were not
required to comply with Section 5.9 of the Credit Agreement for the fiscal quarters of the Parent ending on or about October 4,
2020 and December 27, 2020).

 

2.3       Limited
Waiver. Each of the foregoing waivers is a one-time waiver and applies only to the specified circumstances and does not modify
or otherwise affect the Credit Parties’ obligations to comply with such provisions of the Credit Agreement or any other provision
of the Loan Documents, in each case, as amended hereby, in any other instance. Each of the foregoing waivers shall not be deemed
or otherwise construed to constitute a waiver of any other Default or Event of Default under the Credit Agreement and/or the other
Loan Documents that have occurred or that may occur from and after the date hereof or to prejudice any right, power or remedy which
the Administrative Agent or any Lender may not have or may have in the future under or in connection with the Credit Agreement
or any other Loan Document, all of which rights, powers and remedies are hereby expressly reserved by the Administrative Agent
and the Lenders. The agreements and consents set forth in this Article II are limited to the extent specifically set forth
herein and no other terms, covenants or provisions of the Credit Agreement or the other Loan Documents are intended to be affected
hereby.

 

     

     

    

 

ARTICLE III

CLOSING CONDITIONS

 

3.1       Closing Conditions.
This Agreement shall become effective as of the date hereof (the “First Amendment Effective Date”) upon the
satisfaction of the following conditions precedent:

 

(a)       Execution
of Agreement. The Administrative Agent shall have received a copy of this Agreement duly executed by the Borrower, the other
Credit Parties, the Administrative Agent and the Required Lenders.

 

(b)       Monthly
Reporting. The Administrative Agent shall have received, with respect to the fiscal monthly period ended May 17, 2020, (w)
a consolidated gross same store sales report of the Credit Parties and their Subsidiaries for such period, setting forth, in each
case in comparative form, the corresponding figures for the corresponding period of the previous fiscal year of the Parent, (x)
a thirteen (13) week forecast of cash flows for the Credit Parties and their Subsidiaries, on a Consolidated basis (including the
amount of cash and Cash Equivalents then on hand), (y) evidence of the Consolidated Cash on Hand as of the end of such fiscal monthly
period and (z) a calculation of Liquidity for such period, in each case, in a form reasonably satisfactory to the Administrative
Agent.

 

(c)       Revolving
Loans Paydown. To the extent that the Consolidated Cash on Hand exceeds $30,000,000 as of the First Amendment Effective Date,
immediately prior to the effectiveness of this Agreement (as certified by the Borrower in writing to be accurate within two (2)
Business Days prior to the First Amendment Effective Date), the Borrower shall make a mandatory principal prepayment on the outstanding
Revolving Loans (without a corresponding permanent reduction in the Revolving Committed Amount) in an amount equal to such excess.

 

(d)       Amendment
Fees. The Administrative Agent shall have received, for the account of each Lender consenting to this Agreement, an amendment
fee equal to 0.20% of the aggregate principal amount of such Lender’s Revolving Commitment and outstanding Term Loans, in
each case, as of the date hereof.

 

(e)       Other
Fees and Out of Pocket Costs. The Borrower shall have paid any and all reasonable, documented out-of-pocket costs incurred
by the Administrative Agent (including the fees and expenses Moore & Van Allen, PLLC as legal counsel to the Administrative
Agent) and all other fees and amounts required to be paid to the Administrative Agent in connection with this Agreement to the
extent invoiced prior to the date hereof.

 

 

ARTICLE
IV

MISCELLANEOUS

 

4.1       Amended Terms.
On and after the date hereof, all references to the Credit Agreement in each of the Credit Documents shall hereafter mean the Credit
Agreement as amended by this Agreement. Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby
ratified and confirmed and shall remain in full force and effect according to its terms.

 

4.2       Representations
and Warranties of Credit Parties. Each of the Credit Parties represents and warrants as follows:

 

(a)       Each
of the Credit Parties has full corporate power, authority and right to execute, deliver and perform this Agreement and has taken
all necessary limited liability company or corporate action to authorize the execution, delivery and performance by it of this
Agreement.

 

     

     

    

 

(b)       This
Agreement has been duly executed and delivered on behalf of each of the Credit Parties. This Agreement constitutes a legal, valid
and binding obligation of each of the Credit Parties, enforceable against such Credit Party in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

 

(c)       No
consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person
is required in connection with the execution, delivery or performance of this Agreement by the Credit Parties (other than those
which have been obtained) or with the validity or enforceability of this Agreement against the Credit Parties.

 

(d)       The
representations and warranties made by the Credit Parties in the Credit Agreement, in the Security Documents or which are contained
in any certificate furnished at any time under or in connection with the Credit Agreement are true and correct in all material
respects on and as of the date hereof as if made on and as of such date, except for representations and warranties expressly stated
to relate to a specific earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representation
or warranty that is already qualified or modified by materiality or reference to Material Adverse Effect in the text thereof.

 

(e)       After
giving effect to this Agreement, no Default or Event of Default has occurred and is continuing on the date hereof.

 

(f)       The
Security Documents continue to create a valid security interest in, and Lien upon, the Collateral purported to be covered thereby,
in favor of the Administrative Agent, for the benefit of the holders of the Secured Obligations, which security interests and Liens
are perfected in accordance with the terms of the Security Documents and prior to all Liens other than Permitted Liens.

 

(g)       The
Obligations of the Credit Parties are not reduced or modified by this Agreement (except as set forth herein) and, as of the date
hereof, are not subject to any offsets, defenses or counterclaims.

 

4.3       Reaffirmation
of Obligations. Each Credit Party hereby ratifies the Credit Agreement, as amended hereby, and each other Credit Document to
which it is a party and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement, as amended hereby,
and each other Credit Document to which it is a party applicable to it and (b) that it is responsible for the observance and full
performance of its respective obligations under the Credit Documents.

 

4.4       Release.
The Borrower and each of the other Credit Parties hereby releases and forever discharges the Administrative Agent, each Lender,
the Issuing Lender, the Swingline Lender and their respective predecessors, successors, assigns, attorneys and Related Parties
(each and every of the foregoing, a “Lender Party”) from any and all claims, counterclaims, demands, damages,
debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in connection
with any of the Credit Documents through the date hereof, whether arising at law or in equity, whether known or unknown, whether
liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether
or not heretofore asserted, which any Credit Party may have or claim to have against any Lender Party.

 

     

     

    

 

4.5       Credit Document.
This Agreement shall constitute a Credit Document under the terms of the Credit Agreement.

 

4.6       Entirety.
This Agreement and the other Credit Documents embody the entire agreement among the parties hereto and supersede all prior agreements
and understandings, oral or written, if any, relating to the subject matter hereof.

 

4.7       Expenses.
The Borrower agrees to pay all reasonable costs and expenses of the Administrative Agent in connection with the preparation, execution
and delivery of this Agreement, including without limitation the reasonable fees and expenses of the Administrative Agent’s
legal counsel.

 

4.8       Counterparts;
Electronic Execution. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of
an executed signature page of this Agreement by facsimile transmission or other electronic means shall be effective as delivery
of a manually executed counterparty hereof.

 

4.9       Governing
Law. This Agreement and the rights and obligations of the parties under this Agreement shall be governed by, and construed
and interpreted in accordance with, the law of the State of New York (INCLUDING SECTION 5-1401 AND SECTION 5-1402 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT REGARD TO CONFLICTS OR CHOICE OF LAW PRINCIPLES THAT WOULD REQUIRE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION.

 

4.10     Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted
successors and assigns.

 

4.11     Consent
to Jurisdiction; Service of Process; Waiver of Jury Trial. The jurisdiction, services of process and waiver of jury trial provisions
set forth in Section 9.14 and Section 9.17 of the Credit Agreement and the limitation of liability provisions of Section 9.5(b)
of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signature pages to follow]

 

     

     

    

 

IN WITNESS WHEREOF
the parties hereto have caused this Agreement to be duly executed on the date first above written.

 

	BORROWER:	RED ROBIN
    INTERNATIONAL, INC.,
	 	a Nevada corporation
	 	 
	 	By: 	/s/ Michael L. Kaplan

	 	Name:	Michael L. Kaplan
	 	Title:	Vice President and Secretary

 

	GUARANTORS:	RED ROBIN GOURMET BURGERS,
    INC.,
	 	a Delaware corporation
	 	 
	 	By:	 /s/ Michael L. Kaplan

	 	Name:	Michael L. Kaplan
	 	Title:	Executive Vice President, Chief Legal Officer and Secretary

 

	 	RED ROBIN WEST, INC.,
	 	a Nevada corporation
	 	 
	 	By:	 /s/ Michael L. Kaplan

	 	Name:	Michael L. Kaplan
	 	Title:	Vice President and Secretary

 

	 	WESTERN FRANCHISE DEVELOPMENT,
    INC.,
	 	a California corporation
	 	 
	 	By:	 /s/ Michael L. Kaplan      

	 	Name:	Michael L. Kaplan
	 	Title:	Vice President and Secretary

 

	 	RED ROBIN DISTRIBUTING
    COMPANY LLC,
	 	a Nevada limited liability
    company
	 	 
	 	By:	 /s/ Michael L. Kaplan      

	 	Name:	Michael L. Kaplan
	 	Title:	Manager
	 	 
	 	NORTHWEST ROBINS, L.L.C.,
	 	a Washington limited
    liability company

 

	 	By:	RED ROBIN INTERNATIONAL, INC.,
	 	 	Sole Member and Manager of Northwest Robins, L.L.C.

 

	 	 	By:	 /s/ Michael L. Kaplan

	 	 	Name:	Michael L. Kaplan
	 	 	Title:	Vice President and Secretary

 

	 	RED ROBIN EXPRESS, LLC,
	 	a Colorado limited liability company
	 	 
	 	By: 	/s/ Michael L. Kaplan

	 	Name:	Michael L. Kaplan
	 	Title:	Manager

 

	 	RED ROBIN NORTH HOLDINGS, INC.,
	 	a Nevada corporation
	 	 
	 	By: 	/s/ Michael L. Kaplan

	 	Name:	Michael L. Kaplan
	 	Title:	Vice President and Secretary

 

FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 RED ROBIN INTERNATIONAL, INC.

 

     

     

    

 

	ADMINISTRATIVE
    AGENT	 
	AND
    LENDERS:	WELLS
    FARGO BANK, NATIONAL ASSOCIATION,
	 	as Administrative Agent,
    Issuing Lender and as a Lender

 

	 	By:	/s/ Maureen Malphus
	 	Name:      Maureen Malphus
	 	Title:        Vice President

 

FIRST
AMENDMENT TO CREDIT AGREEMENT AND WAIVER

RED ROBIN INTERNATIONAL, INC.

 

     

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	as a Lender
	 	 
	 	By:	 /s/ Ann C. Araya
	 	Name:      Anna C. Araya
	 	Title:        Executive Director
	 	 
	 	JPMORGAN CHASE BANK, N.A., TORONTO BRANCH,
	 	as a Lender
	 	 
	 	By:	/s/ Deborah Booth
	 	Name:       Deborah Booth
	 	Title:         Executive Director

 

FIRST
AMENDMENT TO CREDIT AGREEMENT AND WAIVER

RED ROBIN INTERNATIONAL, INC.

 

     

     

    

 

	 	BANK OF AMERICA, N.A.,
	 	as a Lender
	 	 
	 	By:	 /s/ Anthony Luppino
	 	Name:    Anthony Luppino
	 	Title:      Senior Vice President

 

FIRST AMENDMENT TO CREDIT AGREEMENT
AND WAIVER

RED ROBIN INTERNATIONAL, INC.

 

     

     

    

 

	 	BBVA USA, an Alabama Banking Corporation,
	 	as a Lender
	 	 
	 	By:	/s/ Scott Donaldson
	 	Name:   Scott Donaldson
	 	Title:     Senior Vice President

 

FIRST AMENDMENT TO CREDIT AGREEMENT
AND WAIVER

RED ROBIN INTERNATIONAL, INC.

 

     

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as a Lender
	 	 
	 	By:	 /s/ Jeff Benedix
	 	Name:    Jeff Benedix
	 	Title:      Vice President

 

FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER

RED ROBIN INTERNATIONAL, INC.Exhibit 10.1

RCG Commodity Futures Customer Agreement

 

In
consideration of the RCG Division of Marex Spectron (“RCG”) accepting your account and its agreement to act as your
authorized broker, you agree to the following with respect to any of your accounts with RCG for the purchase and sale of securities,
monies, physical commodities, futures contracts, options on futures, foreign futures contracts, options on foreign futures, forward
contracts and foreign exchange contracts (collectively referred to as “commodities” or “property”):

 

		1.	You
                                         represent that you are a validly existing partnership/limited liability company (“LLC”),
                                         trust, or corporation and the sole owner of your account(s) and that no other person
                                         or entity, except as disclosed herein, has any interest therein. You agree to notify
                                         RCG of the identity of any other person or entity, who controls the trading of the account,
                                         has a financial interest of 25% or more in the account or the identity of any other account
                                         in which you control or have a 25% or more ownership interest. You shall maintain your
                                         account(s) in accordance with and shall be solely responsible for compliance with the
                                         rules, regulations and/or guidelines issued by any federal, state or administrative bodies
                                         having oversight or regulatory authority over your activities, and any statutes governing
                                         your activities. You also represent that the funds deposited into your account(s) are
                                         your own partnership/LLC, trust or corporate funds and that no funds from any other person
                                         or entity will be deposited into your account. You understand that RCG is relying on
                                         the representations contained herein with regard to the manner in which RCG will carry
                                         your account, and you agree to notify RCG immediately in writing in the event that these
                                         circumstances change.

 

		2.	All
                                         transactions for your account(s) shall be subject to the regulations of all applicable
                                         federal, state and self-regulatory agencies including the constitution, rules and customs,
                                         as the same may be constituted from time to time, of the exchanges, market or place (and
                                         the clearing associations, if any) where executed (collectively, “Applicable Law”),
                                         or if different, RCG’s house rules. This paragraph is solely for RCG’s protection
                                         and RCG’s failure to comply with any such regulations, constitutions, rules and/or
                                         customs shall not be a breach of this Agreement and shall not relieve you of any obligations
                                         under this Agreement.

 

		3.	You
                                         agree not to exceed the position limits of any federal agency or exchange for your account(s),
                                         acting alone or in concert with others. You will promptly notify RCG of positions for
                                         which you are required to file reports with the Commodity Futures Trading Commission
                                         (“CFTC”) or any exchange.

 

		4.	Upon
                                         entry into this Agreement RCG will notify you of the exchanges, products, size and number
                                         of open commodities positions (net or gross) that RCG will at any time execute, clear
                                         and/or carry for you (such size and number limitation, the “Position Limits”).
                                         You agree and acknowledge that RCG shall have the right,
                                         whenever in its sole discretion it deems it appropriate, with
                                         a minimum of one (1) business day’s prior written notice, to revise the Position
                                         Limits, provided that, if any such revision would require you to reduce open, existing
                                         positions, RCG shall afford you thirty (30) calendar days to do so, with it being understood
                                         that, if you have failed to do so by the end of the thirty (30) calendar day period RCG
                                         may liquidate positions that do not conform to the Position Limits. You understand and
                                         agree that RCG is under no obligation to accept, and may refuse, orders to establish
                                         commodities positions that do not conform to the Position Limits. Moreover, RCG may revise
                                         the Position Limits with immediate effect upon the occurrence of an Event of Default
                                         (defined below) or in emergency circumstances in which RCG reasonably deems it necessary
                                         to or is obligated by its regulators to reduce positions or risk exposure to certain
                                         markets on an immediate basis with general effect across its customers.

 

		5.	You
                                         understand that RCG acts as your agent and not as principal for your commodity futures
                                         and commodity options transactions, which are effected on exchanges. Consequently, RCG
                                         does not guarantee the performance of the obligations of any party to the futures or
                                         options contracts purchased and/or sold by its clients. You understand that RCG may act
                                         as principal in certain cash, forward, foreign commodity and foreign exchange transactions.

 

	Revised
                                         January 2019

	Page 1

    	 

    	 

    

		6.	Any
                                         property belonging to you that is held by RCG or any of its subsidiaries or affiliates
                                         or carried in any RCG accounts held in your name shall be subject to a general lien and
                                         security interest for the discharge of your obligations to RCG, wherever or however arising
                                         and without regard to whether or not RCG has made advances with respect to such property,
                                         and RCG is hereby authorized to sell and/or purchase any and all such property without
                                         notice to satisfy such general lien and security interest. You irrevocably appoint RCG
                                         as your attorney-in-fact with power of substitution to execute any documents for the
                                         perfection or registration of such general lien and security interest.

 

		7.	You
                                         agree to maintain such collateral and/or margin in an amount that is the greater of:
                                         (i) the amount required by Applicable Law (“AL Margin”) and (ii) an amount
                                         in excess of AL Margin as required by RCG in its sole discretion (“Excess Margin”
                                         and, together with AL Margin, “Margin”), provided that in no event will the
                                         amount of Excess Margin be more than two times (2x) the AL Margin and, provided further,
                                         that the amount of Excess Margin will in no event exceed the notional value of the particular
                                         commodities position to which it relates. Margin requirements are subject to change without
                                         notice and will be enforced retroactively and prospectively. You shall make deposits
                                         of Margin as RCG requests within a reasonable time after such request. It is agreed and
                                         understood that one hour may be deemed to be a reasonable time; provided, however, that
                                         RCG, in its sole and absolute discretion, may request that deposits be made in a lesser
                                         period of time. RCG's failure to require satisfaction of a Margin call within one hour,
                                         or any shorter time period, on any occasion shall not be deemed to be a waiver of its
                                         right to do so in the future. You shall provide RCG with the names of bank officers and
                                         information necessary for immediate verification of wire transfers.

 

		8.	If: (i) you fail to deposit
sufficient funds to pay for any commodities and/or to satisfy any demands for initial and/or variation margin, and such failure
is not cured within one (1) business day and was attributable solely to an operational or administrative issue or error; (ii)
you breach this Agreement (other than as contemplated by 8(i) immediately above), and such breach is not cured within fifteen(15)
days; (iii) you become bankrupt, insolvent, are dissolved, or in any other way terminate; (iv) any representation made by you,
if any, is not accurate and complete in any material respect when made or given; or (v) you default on any other obligation or
agreement with RCG (subject to any cure or grade period afforded thereto) and RCG takes steps to initiate (which, for the avoidance
of doubt, would include sending a notice that it will begin) a liquidation of, an acceleration of obligations under, or an early
termination of the relevant agreement (each of 8(i) – 8(v), an “Event of Default”), then RCG may, without
prior demand or notice and notwithstanding any rule of any exchange, liquidate the positions in your account(s), hedge and/or
offset those positions in the cash market, by an exchange for physicals transaction or otherwise, sell any property belonging
to you or in which you have an interest, cancel any open orders for the purchase and sale of any property, or borrow or buy any
property required to make delivery against any sales, including a short sale, on an exchange or off an exchange, effected for
you, all for your sole account and risk. Such sale or purchase may be public or private and may be made without advertising or
notice to you and in such a manner as RCG may, in its sole and absolute discretion, determine, and no demands, tenders or notices,
which RCG may make or give, shall invalidate your aforesaid waiver. You agree that RCG has no duty and is not required to liquidate
positions in your account(s) and that the provisions of this paragraph are solely for the protection of RCG. The proceeds of such
transactions, if any, are to be applied first to reduce any indebtedness owing by you to RCG and thereafter to your account.

 

		9.	RCG
                                         is authorized to transfer among your regulated commodity account(s) and any of your other
                                         account(s), including foreign secured account(s) and non-regulated account(s), and vice
                                         versa, such excess funds as may be required for any reason RCG deems appropriate in RCG's
                                         sole and absolute discretion. Any such transfer shall comply with the Commodity Exchange
                                         Act. It is understood that within a reasonable time after making such transfer RCG will
                                         confirm the same to you in writing.

 

		10.	You acknowledge that you
shall be liable for all losses in your account(s) whether or not your account(s) is liquidated and for any debts and deficiencies,
including, but not limited to, interest, costs, expenses and attorneys' fees, including all debts and deficiencies resulting from
a liquidation of your account(s).

 

	Revised
                                         January 2019

	Page 2

    	 

    	 

    

		11.	You agree to pay storage
and delivery charges and other service related fees charged to your account(s). You also agree to pay any give-up or give-in fees
that may be charged by any executing firm or broker whom you or your agents have authorized to execute transactions for your account(s).
You agree to pay such fees, brokerage and commission charges as RCG may impose or which may be imposed by any exchange or regulatory
organization. Unless otherwise agreed, RCG may charge exchange, clearing, brokerage, transaction, NFA and any other transaction
related fees as separate items for each transaction in your account(s). Such fees are subject to change without notice. In the
event a debit balance occurs in your account(s), RCG shall be entitled to receive and charge to your account(s) interest at the
rate determined by adding two percent (2%) to the rate announced from time to time by BMO Harris Bank or its successors or assigns
as its prime commercial rate for the entire period that such debit shall exist. You agree that any and all interest earned on
any available cash balances in your account(s) may accrue to, and may be retained by RCG. In the event that your account(s) is
transferred to another futures commission merchant, a reasonable transfer charge in addition to commissions and fees may be imposed
and charged against your account(s).

 

		12.	This Agreement may be terminated
by you or us immediately upon written notice to the other party, provided that if RCG terminates this Agreement, and so long as
an Event of Default has not occurred, you shall be afforded a minimum of thirty (30) days to liquidate your open, existing commodities
positions or transfer them to an alternate futures commission merchant, it being understood that, upon the expiry of the thirty-day
period, RCG shall have the right to liquidate any remaining open positions. Notwithstanding the foregoing, upon the occurrence
of an Event of Default we may terminate this Agreement immediately without prior notice to you. Notwithstanding any termination,
you shall satisfy all obligations to us arising thereunder ( including, but not limited to, payment of applicable debit balances,
commissions, fees, including fees with respect to the transfer of positions to another FCM). The termination of this Agreement
shall not affect the obligations of the parties arising from transactions entered into prior to such termination.

 

		13.	[Reserved.]

 

		14.	Written or electronically
provided confirmation of actual transactions and/or orders, purchase and sales notices, correction notices and statements of your
account(s) (collectively “statements”) shall be conclusive and deemed ratified by you unless RCG shall receive oral
notice from you to the contrary IMMEDIATELY upon your receipt thereof and thereafter confirmed by you in writing. If you retrieve
your statements electronically they shall be conclusive and deemed ratified by you if not objected to in writing prior to the
opening of the market on the next trading session. If you receive your statements via mail they shall be conclusive and deemed
ratified by you if not objected to in writing within THREE days after mailing to you by RCG. In the event that you fail to receive
statements for your account(s) by mail within three days from the date of a transaction in your account(s), such transaction shall
be conclusive and deemed ratified by you unless you notify RCG IMMEDIATELY in writing of your failure to receive such statements.
Communications mailed or electronically retrieved by you shall, until RCG receives notice in writing of a different address, be
deemed to have been personally delivered to you and you agree to waive all claims resulting from failure to receive such communications.
Oral notice shall be given to RCG by telephone at (312) 460-9200, Attention: Compliance Department. Written notice to RCG under
this paragraph shall be sent to the RCG Division of Marex Spectron (“RCG”) 216 West Jackson Boulevard, Suite 400,
Chicago, Illinois 60606, and Attention: Compliance Department. None of the provisions in this paragraph, however, will prevent
RCG, upon discovery of any error or omission, from correcting it. You agree that such errors, whether resulting in profit or loss,
will be corrected in your account(s), will be credited or debited so that your account is in the same position it would have been
if the error had not occurred. Whenever a correction is made, RCG will promptly make written or electronic notification to you.

 

		15.	You acknowledge and agree
that RCG may reduce all documentation evidencing your account(s), including the original signature documents executed by you in
the opening of your account with RCG, utilizing a printed media storage device. You agree to permit the records stored by such
printed media storage method to serve as a complete, true and genuine record of your account documents and signatures.

 

	Revised
                                         January 2019

	Page 3

    	 

    	 

    

		16.	You understand that RCG is
not responsible for any losses resulting directly or indirectly from any government restriction, exchange ruling, suspension of
trading, actions of independent floor brokers , or other persons beyond RCG’s control, clearing house failure, omnibus relationship
failure, war, strike, national disaster or wire malfunction, delay in mails electronic transmission or any other delay or inaccuracy
in the transmission of orders or the information because of a breakdown or failure of transmission or communication facilities.
All price quotations, commodity information, or trade reports given to you are also subject to change and errors, as well as delays
in reporting and you acknowledge that reliance upon such information is at your own risk. You understand that you are bound to
the actual executions of transactions on the exchange(s) and that RCG is not bound by erroneous reports of executions transmitted
to you.

 

		17.	You
                                         acknowledge that RCG is hereby specifically authorized for your account and benefit,
                                         from time to time and without notice to you, either separately or with others, to lend,
                                         pledge, re-pledge, hypothecate or re-hypothecate, either to RCG or to others, any and
                                         all property, including, but not limited to, metals, warehouse receipts, securities or
                                         other negotiable instrument(s) held by RCG in any of your account(s) and RCG shall not
                                         at any time be required to deliver to you identical property, but may fulfill its obligations
                                         to you by delivery of property of the same kind and amount.

 

		18.	If you initiate a transaction
on an exchange or in a market which margins or settles the position(s) in a currency different than the type held or deposited
in your account(s), RCG shall have the right to convert such currency from one type to another (e.g. U.S. currency to foreign
currency, foreign currency to U.S. currency, or foreign currency to another foreign currency) as RCG in its sole and absolute
discretion may determine at an exchange rate determined by RCG in its discretion based on prevailing money markets. Any profit
or loss from a fluctuation in the exchange rate of such currency will be for your sole account and risk. Unless you instruct RCG
otherwise, monies you deposit with RCG in currency other than U.S. dollars and unrealized profits in currency other than U.S.
dollars are not intended to margin, guarantee or secure transactions on United States contract markets.

 

		19.	THIS INFORMATION IS FURNISHED
TO YOU AND MUST BE ACKNOWLEDGED BY YOU IF YOU INTEND TO MAINTAIN FUNDS IN AN ACCOUNT DENOMINATED IN A FOREIGN CURRENCY WITH DEPOSITORIES
LOCATED INSIDE OR OUTSIDE THE UNITED STATES BECAUSE YOU ARE DOMICILED IN A FOREIGN COUNTRY OR BECAUSE THE FUNDS ARE HELD IN CONNECTION
WITH CONTRACTS PRICED AND SETTLED IN A FOREIGN CURRENCY.

 

Funds
of customers trading on United States contract markets may be held in accounts denominated in a foreign currency with depositories
located outside the United States or its territories if you are domiciled in a foreign country or if the funds are held in connection
with contracts priced and settled in a foreign currency. Such accounts are subject to the risk that events could occur which would
hinder or prevent the availability of these funds for distribution to you. Such accounts also may be subject to foreign currency
exchange rate risks.

 

You
authorize the deposit of funds into such foreign depositories if you are domiciled in the United States, this authorization permits
the holding of funds in regulated accounts offshore only if such funds are used to margin, guarantee, or secure positions in such
contracts or accrue as a result of such positions.

 

In
order to avoid the possible dilution of other customer funds, if you have funds held outside the United States you must further
agree that any claims based on such funds will be subordinated as described below in the unlikely event both of the following
conditions are met: (1) your futures commission merchant is placed in receivership or bankruptcy, and (2) there are insufficient
funds available for distribution denominated in foreign currency as to which you have a claim to satisfy all claims against those
funds.

 

You
agree that if both of the conditions listed above occur, your claim against the futures commission merchant’s assets
attributable to funds held overseas in a particular foreign currency may be satisfied out of segregated customer funds held
in accounts denominated in dollars or other foreign currencies only after each customer whose funds are held in dollars or in
such other foreign currencies receives its pro rata portion of such funds. It is further agreed that in no event may a
customer whose funds are held overseas receive more than his pro rata share of the aggregate pool consisting of funds held in
dollars, funds held in the particular foreign currency, and non- segregated assets of the futures commission
merchant.

 

	Revised
                                         January 2019

	Page 4

    	 

    	 

    

		20.	No provision of the Agreement
can be amended or waived except in writing signed by a registered Principal of RCG. No oral agreements or instructions contrary
to any provisions of this Agreement shall be recognized or enforceable. You agree to be bound by any amendments to this Agreement,
which you have not objected to in writing within three business days after receipt thereof. The failure of RCG to enforce, at
any time, any provision of this Agreement shall not be construed to be a waiver of such provision and shall not in any way affect
the validity of this Agreement or the right of RCG thereafter to enforce each and every provision of this Agreement. No waiver
or amendment shall be implied from RCG’s conduct, action or inaction.

 

		21.	You
                                         understand that some exchanges and clearing houses have established cutoff times for
                                         the tender of exercise instructions and that an option will become worthless if instructions
                                         are not received by RCG before such expiration time. You acknowledge full responsibility
                                         for taking action either to exercise or to prevent the automatic exercise of an option
                                         contract, as the case may be, and RCG is not required to take any action with respect
                                         to an option contract, including, without limitation, any action to exercise an option
                                         prior to its expiration date or to prevent its automatic exercise, except upon your express
                                         instructions. You further understand that RCG may establish exercise cutoff times, which
                                         may be different from the times established by exchanges and clearing houses. You understand
                                         that all short option positions are subject to assignment at any time including positions
                                         established on the same day that exercises are assigned, and assignment notices are allocated
                                         randomly from among all RCG’s Customers’ short options positions which are
                                         subject to assignment.

 

		22.	This Agreement shall ensure
to the benefit of RCG's present organization, and any successor organization, irrespective of any change or changes at any time
in the personnel thereof for any cause whatsoever, and to any of RCG's assigns. You agree that all of your rights and obligations
under this Agreement shall not be assigned, transferred, sold or otherwise conveyed, and any such attempted assignment, transfer,
sale or conveyance shall be null and void and of no force or effect. In any event, RCG may, subject to the applicable rules and
regulations of the CFTC and the National Futures Association, assign this Agreement and transfer your account(s) to another duly
registered futures commission merchant.

 

		23.	RCG
                                         is authorized to accept oral, telephonic or electronic orders as you or your authorized
                                         agent may give for transactions in your account(s). You hereby waive any defense that
                                         such order was not in writing or evidenced by a memorandum in writing as required by
                                         the Statute of Frauds or any other statute. Although authorized, RCG is not required
                                         to accept oral, electronic or telephonic orders. RCG is further authorized to record,
                                         whether by tape, wire or other method, with or without a periodic tone signal, any and
                                         all telephonic or other oral communications between us, with or without notice thereof.

 

		24.	If you use electronic trading
Accounts, RCG or the third party provider will assign you a unique confidential user identification name (“User ID”)
and password (“Password”) which must be used solely by you in order to access RCG through the System. You agree that
the User ID and Password may not be disclosed to, or used by, any other person or party, for any purpose whatsoever. You hereby
agree that all orders placed through and instructions given to RCG are your sole responsibility. You will save, defend, indemnify
and otherwise hold RCG harmless of, from and against any and all liability, costs or damages of any kind arising by virtue of
any unauthorized use of your User ID or Password. You will notify RCG immediately if you become aware of any loss, theft or unauthorized
use of your User ID or Password. You agree to immediately notify RCG in the event of any third party use of the User ID or Password.

 

It
is your duty, and not RCG’s to monitor the System trading screen while open orders and positions are pending. RCG is not
responsible for delays or errors. Whether electronic or “voice”, it is your obligation, and not RCG’s to monitor
the Account’s status and the status of any open orders or positions in the Account and to take appropriate action to minimize
loss or maximize gain.

 

	Revised
                                         January 2019

	Page 5

    	 

    	 

    

As
with any electronic system, it is possible that service could be interrupted. In that event, depending on the type of
failure, it may not be possible to access the System to enter new orders, and/or modify or cancel orders previously
entered.

 

RCG
shall not be liable for any loss resulting from System failure, breakdown of electronic or mechanical equipment or communication
lines, telephone or other interconnection problems, unauthorized access to your User ID or Password, your operating errors or
any other condition over which RCG does not otherwise control.

 

RCG
reserves the right to terminate your access to electronic trading at RCG’s sole discretion, for any reason whatsoever, including,
but not limited to, the unauthorized use of your User ID or Password and/or the breach of this agreement.

		25.	Should RCG become a party,
without fault on RCG’s part, to any action or proceeding arising out of your account(s) or orders given to RCG, you agree
to indemnify and save RCG harmless therefrom and to pay RCG such attorneys’ fees, which arise out of, or which in any manner
or way whatsoever are related to any representation made by you in this Agreement, or by your failure to perform any of your agreements
made herein, including, but not limited to, the failure to immediately pay any deficit balances which may arise in your account(s).

 

		26.	You consent to RCG’s
“affiliated persons” (as defined in 17 C.F.R. 155 et seq., as amended) or any floor broker acting on behalf of RCG
or its customers, taking, directly or indirectly, the other side of any order you place with RCG, in accordance with the rules
of the applicable futures exchanges. You give your consent to any such floor broker.

 

		27.	As
                                         required by the Customer Identification Program of the USA PATRIOT Act of 2001, RCG must
                                         obtain information and/or documentation to verify your identity. For individuals, this
                                         may mean credit reports, government-issued identification to verify your identity. For
                                         individuals, this may mean credit reports, government-issued identification, utility
                                         bills, or any other documentation as may be required by RCG Compliance. For entities,
                                         this may mean corporate, trust, LLC or partnership documents, individual identification
                                         information and/or documentation for principals and owners similar to those mentioned
                                         above or any other documentation as may be required by RCG Compliance. You authorize
                                         RCG to verify the information contained in your application and in other documents, which
                                         may be required in connection with this Agreement. You authorize any third party to provide
                                         to RCG any and all information and documentation that RCG requests, including but not
                                         limited to, income, bank, money market or other similar account balances and verification
                                         of credit history.

 

		28.	If you elect to retrieve
confirmation statements of actual transactions and/or orders, purchase and sale notices, correction notices (“daily and
monthly statements”) of your account(s) electronically by indicating such election in your RCG account application, you
agree that no printed copy of such daily or monthly information will be sent to you by mail or by other means. This consent shall
remain in effect until revoked by you in writing. In the event you do not elect to retrieve your statements electronically, your
account will be charged the RCG monthly statement fee then in effect.

 

		29.	RCG, in its sole and absolute
discretion and without notice, may delegate any of its rights, powers or duties under this agreement to the introducing broker
or futures commission merchant who introduced your account to RCG.

 

		30.	This Agreement has been made
and delivered at Chicago, Illinois. Its validity, construction and enforcement shall be governed and construed in accordance with
the substantive laws of the State of Illinois without reference to its principles of conflicts of law. This Agreement constitutes
the entire understandings among the parties with respect to the subject matte hereof. Wherever possible, each portion of this
Agreement shall be interpreted in such a manner to be valid and effective under applicable law, but if any provision of this Agreement
shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity
without invalidating the remainder of such provisions or the remaining provisions of this Agreement.

 

YOU
AGREE NOT TO COMMENCE ANY LEGAL OR ADMINISTRATIVE PROCEEDING AGAINST RCG UNTIL ANY DEFICIT BALANCE IN YOUR ACCOUNT(S) IS SATISFIED.

 

	Revised
                                         January 2019

	Page 6

    	 

    	 

    

		31.	You agree that no lawsuit,
arbitration, proceeding or other claim or action relating to this Agreement or the transactions in your account may be initiated
by you unless commenced within one (1) year from the date of the disputed transaction, provided however that any action brought
under the provisions of Section 14 of the Commodity Exchange Act may be brought within two (2) years after the cause of action
accrues.

		32.	All actions, disputes, claims
or proceedings, including but not limited to any arbitration proceeding, including National Futures Association (“NFA”)
arbitrations, arising directly or indirectly in connection with, out of, or related to or from the Customer Agreement, any other
agreement between the Customer and RCG, or any orders entered or transactions effected for your account(s), whether or not initiated
by RCG, shall be adjudicated only in courts or other dispute resolution forums whose situs is within the City of Chicago, State
of Illinois, and Customer hereby specifically consents and submits to the jurisdiction of any state or federal court or arbitration
proceedings located within the City of Chicago, State of Illinois.

 

Customer waives any claim
Customer may have that (a) Customer is not personally subject to the jurisdiction of any state or federal court or arbitration
proceedings located within the State of Illinois, (b) Customer is immune from any legal process (whether through service or notice,
attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to Customer or Customer’s
property, (c) any such suit, action or proceeding is brought in an inconvenient forum, (d) the venue of any such suit, action
or proceeding is improper or this consent or the Customer Agreement between Customer and RCG may not be enforced in or by such
court or arbitration proceeding.

 

BY
SIGNING THE AGREEMENT CONTAINING THIS CONSENT TO JURISDICTION, CUSTOMER ACKNOWLEDGES ASSENT TO JURISDICTION AS SET FORTH ABOVE
AND FURTHER ACKNOWLEDGES THAT THESE CLAUSES WERE FREELY AND KNOWINGLY NEGOTIATED BETWEEN THE PARTIES.

 

IF
YOU HAVE ALSO SIGNED A TRANSLATION OF THIS AGREEMENT, THE ENGLISH VERSION OF THIS AGREEMENT, SHOULD THERE BE ANY CONFLICT, IS
CONTROLLING.

 

THIS
COMMODITY CUSTOMER AGREEMENT CONTAINS A CONTRACTUAL AGREEMENT. DO NOT SIGN UNTIL YOU HAVE READ IT CAREFULLY. BY SIGNING IN
THE SECTION PROVIDED THEREFOR, THE UNDERSIGNED REPRESENTS AND WARRANTS THAT ALL INFORMATION CONTAINED HEREIN, OR IN ANY OTHER
ACCOUNT FORM OR OTHER DOCUMENT FROM THE UNDERSIGNED IS TRUE AND CORRECT AND THAT IF ANY CHANGES TO SUCH INFORMATION OCCUR,
THE UNDERSIGNED WILL IMMEDIATELY INFORM RCG, IN WRITING, OF SUCH CHANGES. BY SIGNING BELOW, THE UNDERSIGNED ACKNOWLEDGES THAT
CUSTOMER HAS READ AND UNDERSTANDS ALL OF THE TERMS AND CONDITIONS OF THE COMMODITY CUSTOMER AGREEMENT AND SHALL BE BOUND BY
THEM. THIS IS A CONTRACTUAL AGREEMENT. PLEASE READ IT CAREFULLY BEFORE SIGNING.

 

BY
SIGNING THIS AGREEMENT, YOU REPRESENT AND WARRANT TO RCG THAT ALL INFORMATION CONTAINED HEREIN OR IN ANY OTHER ACCOUNT FORM IS
TRUE AND ACCURATE, AND THAT YOU SHALL INFORM RCG IN WRITING OF ANY CHANGES TO SUCH INFORMATION WHEN SUCH CHANGES OCCUR. I (WE)
HEREBY REQUEST THAT RCG OPEN A COMMODITY TRADING ACCOUNT IN THE NAME(S) SET FORTH IN THIS APPLICATION. I (WE) HAVE READ AND UNDERSTOOD
THE TERMS AND CONDITIONS OF THE CUSTOMER AGREEMENT GOVERNING THE ACCOUNT AND AGREE TO BE BOUND BY THEM AS CURRENTLY IN EFFECT.

 

	Revised
                                         January 2019

	Page 7

    	 

    	 

    

	Name of Corporation	 

 

	X	 	X
	President Signature	 	Secretary Signature
	 	 	 
	Date	 	Date
	 	 	 
	X	 	X
	Vice President Signature	 	Officer Signature
	 	 	 
	 Date	 	Date

 

	Name of
    Partnership/LLC	 

	 	 	 
	Note: All General
    Partners/Members must sign this Agreement.
	 	 	 
	X	 	X
	General Partner/Member
    Signature	 	General Partner/Member
    Signature
	 	 	 
	Date	 	Date
	 	 	 
	X	 	X
	General Partner/Member
    Signature	 	General Partner/Member
    Signature
	 	 	 
	Date	 	Date

 

	Name of
    Trust	 

	 	 	 
	Note: All Trustees must
    sign this Agreement.	 	 
	 	 	 
	X	 	X
	Trustee Signature	 	Trustee Signature
	 	 	 
	Date	 	Date
	 	 	 
	X	 	X
	Trustee Signature	 	Trustee Signature
	 	 	 
	Date	 	Date

 

	Revised
                                         January 2019

	Page 8

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