Document:

Exhibit

EXHIBIT 10.1

THIRD AMENDMENT TO CREDIT AGREEMENT 
THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), is entered into as of August 24, 2018 by and among LUBY’S, INC. (the “Borrower”), each other Credit Party party hereto, the Lenders party hereto and Wells Fargo Bank, National Association, as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”).  
W I T N E S S E T H:
WHEREAS, the Borrower is party to that certain Credit Agreement, dated as of November 8, 2016 (as amended by the Second Amendment to Credit Agreement dated as of April 20, 2018 and as previously amended, restated, supplemented or otherwise modified, the “Existing Agreement” and as amended by this Amendment and as may further be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among, inter alia, the Borrower, the other Credit Parties party thereto, the Administrative Agent and the Lenders from time to time party thereto, pursuant to which the Lenders have made certain loans and financial accommodations available to the Borrower; and
WHEREAS, the Borrower, the Administrative Agent and the Required Lenders are parties to that certain Consent and Waiver dated as of July 12, 2018 (the “July Consent”) and that certain Consent and Waiver dated as of August 10, 2018 (the “August Consent” and together with the July Consent, the “Consents”) pursuant to which, among other things, the Administrative Agent and Lenders waived the requirement that the Credit Parties comply with (1) the financial covenants set forth in Section 9.15 of the Credit Agreement that are tested for any period or time ending or occurring during the Compliance Waiver Period (as defined in the July Consent and as extended pursuant to the August Consent), and (2) the limits on Maintenance Capital Expenditures set forth in Section 9.3(c) of the Credit Agreement during the Compliance Waiver Period (as defined in the July Consent and as extended pursuant to the August Consent); and
WHEREAS, the Credit Parties have requested that the Administrative Agent and the Lenders amend certain provisions of the Existing Agreement which the Administrative Agent and the Lenders are willing to do pursuant to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the foregoing and for other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
1.Defined Terms.  Capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement. 

2.Amendments to Existing Agreement.  

(a)Amendments to Section 1.1 (Definitions).  

(i)Section 1.1 of the Existing Agreement is hereby amended by inserting the following new defined terms in the appropriate alphabetical order:

““July Consent” means that certain Consent and Waiver dated as of July 12, 2018 by and among the Borrower, the Administrative Agent and the Required Lenders.” 
““Third Amendment” means that certain Third Amendment to Credit Agreement dated as of August 24, 2018 by and among the Borrower, the Administrative Agent and the Lenders.”
““Third Amendment Effective Date” means the date the conditions to effectiveness set forth in the Third Amendment are satisfied.”
(ii)The definition of “Applicable Margin” is hereby amended to read in its entirety:
““Applicable Margin” means, during each time period set forth below, the corresponding percentages per annum as set forth below opposite such time period:
	
			
	Period
	LIBOR Rate Loans
	Base Rate Loans

	From the Third Amendment Effective Date through the date the Term Loan has been paid in full in cash
	6.50%
	5.50%

	From the date following the date the Term Loan has been paid in full in cash and thereafter
	5.50%
	4.50%

”
(iii)The definition of “Real Estate Collateral Documents” is hereby amended by inserting the following clause (vii) at the end thereof:

“(vii)    Mortgages.  All Mortgages obtained to secure the Obligations including those obtained pursuant to Section 8.22 of the Credit Agreement, Section 2(d) of the July Consent or Section 7 of the Third Amendment.”
(iv)The definition of “Revolving Credit Commitment” is hereby amended to read in its entirety:

““Revolving Credit Commitment” means (a) as to any Revolving Credit Lender, the obligation of such Revolving Credit Lender to make Revolving Credit Loans to, and to purchase participations in L/C Obligations and Swingline Loans for the account of, the Borrower hereunder in an aggregate principal amount at any time outstanding not to exceed the amount set forth opposite such Revolving Credit Lender’s name on the Register, as such amount may be modified at any time or from time to time pursuant to the terms hereof (including, without limitation, Sections 2.5, 2.6 or 10.2) and (b) as to all Revolving Credit Lenders, the aggregate commitment of all Revolving Credit Lenders to make Revolving Credit Loans, as such amount may be modified at any time or from time to time pursuant to the terms hereof.  The aggregate Revolving Credit Commitment of all the Revolving Credit Lenders on the Third Amendment Effective Date is $30,000,000.  The Revolving Credit Commitment of each Revolving Credit Lender as of the Third Amendment Effective Date is set forth opposite the name of such Lender on Schedule 1.1(a).”

(b)Section 8.1(e) of the Existing Agreement is hereby amended in its entirety to read as follows:

“(e)    Weekly Cash Flow and Cash Balance Reports.  The Borrower shall prepare and deliver to the Administrative Agent on or prior to the Second Amendment Effective Date (and on or before Tuesday of each week thereafter until the later of the Revolving Credit Maturity Date or the Term Loan Maturity Date) (x) a trailing thirteen (13) week consolidated cash flow statement for the Borrower and its Subsidiaries setting forth actual cash flows for such period, together with a comparison to projected cash flows for such period, and a comparison to the corresponding figures from the corresponding period in the prior fiscal year, together with an explanation for any material variances between such actual cash flows and the projected cash flows for such period and the cash flows for the corresponding period in the prior fiscal year, (y) a thirteen (13) week cash flow forecast for the thirteen (13) weeks following the week of such report, and (z) beginning after the Third Amendment Effective Date, a cash balance report showing the aggregate cash balance amount held in the accounts of the Credit Parties (including Excluded Accounts) as of close of business on Friday of the immediately prior week.”
(c)Section 9.3(c) of the Existing Agreement is hereby amended by deleting the proviso at the end thereof and inserting the following proviso:

“provided that beginning in fiscal year 2019, no additional Investments consisting of Maintenance Capital Expenditures shall be permitted pursuant to this Section 9.3(c) other than budgeted Maintenance Capital Expenditures in an aggregate amount not to exceed $8,500,000 in any fiscal year;”
(d)Amendments to Schedules and Exhibits to Existing Agreement.

(i)Schedule 1.1(a) to the Existing Agreement is hereby amended and restated in its entirety to read as set forth in Exhibit A hereto.

3.Waiver.  Subject to the terms and conditions hereof, and in reliance upon the representations, warranties and covenants of the Credit Parties contained in this Amendment, the Administrative Agent and the Required Lenders hereby waive the Events of Default existing under the Credit Agreement as of the Third Amendment Effective Date resulting from (a) any breach of the financial covenants set forth in Section 9.15 of the Credit Agreement or the limitations on Maintenance Capital Expenditures set forth in Section 9.3(c) of the Credit Agreement, in each case that may have occurred during the period from and including May 9, 2018 until the Third Amendment Effective Date, and (b) any related Events of Default under Section 10.1(c) of the Credit Agreement.

4.Compliance with Financial Covenants.  

(a)Subject to the terms and conditions hereof, and in reliance upon the representations, warranties and covenants of the Credit Parties contained in this Amendment, the Administrative Agent and the Required Lenders agree to waive the requirement that the Credit Parties comply with the financial covenants set forth in Section 9.15 of the Credit Agreement that would otherwise be tested for any period or time ending on or after the Third Amendment Effective Date  but on or prior to December 31, 2018 (such financial covenants, as used in this Amendment, the “Third Amendment Waiver Period Financial Covenants”) (the period from and including the Third Amendment Effective Date and ending on and including December 31, 2018, the “Third Amendment Compliance Waiver Period”).  For clarity, nothing herein shall be deemed to be a waiver of the requirements set forth in Section 8.1(b), Section 8.1(d) or Section 8.1(e) of the Credit Agreement with respect to any Measurement Period, Accounting Period or week, as applicable, ending during the Third Amendment Compliance Waiver Period or the requirement set forth in Section 8.2(a) of the Credit Agreement with respect to the delivery of the Officer’s Compliance Certificate in connection with the financial statements required to be delivered pursuant to Section 8.1(b) or Section 8.1(d) of the Credit Agreement during the Third Amendment Compliance Waiver Period; provided, that any such Officer’s Compliance Certificate delivered with respect to any Measurement Period or Accounting Period ending during the Third Amendment 

Compliance Waiver Period shall show the calculation of the Third Amendment Waiver Period Financial Covenants but shall include appropriate modification to reflect the fact that the Third Amendment Waiver Period Financial Covenants will not be tested for any Measurement Period or Accounting Period ending during the Third Amendment Compliance Waiver Period.  

(b)The Borrower, the Administrative Agent and the Required Lenders further agree to work in good faith to reset the financial covenants that will apply to any Measurement Period or Accounting Period ending after the Third Amendment Waiver Compliance Period; provided that the financial covenants set forth in Section 9.15 of the Existing Agreement shall apply to any Measurement Period or Accounting Period ending after the Third Amendment Waiver Compliance Period until such time as new financial covenants have been established.  

5.Asset Sale Proceeds Allocation.  The Borrower and its Subsidiaries shall continue to be permitted to make Asset Dispositions pursuant to Section 9.5(m) and Section 9.5(o) of the Credit Agreement; provided that so long as no Default or Event of Default has occurred and is continuing and notwithstanding the existing provisions of Section 4.4(b)(iii) of the Credit Agreement, from and after the Third Amendment Effective Date, the Borrower shall make mandatory principal prepayments of the Loans in amounts equal to:

(a)fifty percent (50%) of the first $12,000,000 of Net Cash Proceeds from Asset Dispositions received by the Borrower or any of its Subsidiaries from and after the Third Amendment Effective Date;

(b)seventy-five percent (75%) of the next $8,000,000 of Net Cash Proceeds from Asset Dispositions received by the Borrower or any of its Subsidiaries from and after the Third Amendment Effective Date; and 

(c)one hundred percent (100%) of all Net Cash Proceeds in excess of the first $20,000,000 of Net Cash Proceeds from Asset Dispositions received by the Borrower or any of its Subsidiaries from and after the Third Amendment Effective Date.

The obligation to make mandatory prepayments and allocation set forth in this Section 5 shall not apply to any Asset Disposition permitted pursuant to, and in accordance with, clauses (a) through (k) of Section 9.5 of the Credit Agreement; provided that such obligation to make mandatory prepayments and allocation shall apply to the portion, if any, of Net Cash Proceeds attributable to real estate assets included in any Asset Disposition permitted pursuant to, and in accordance with, clause (f) of Section 9.5 of the Credit Agreement. All prepayments under this Section 5 shall be made within two (2) Business Days after the date of receipt of the Net Cash Proceeds, and in the manner set forth in Section 4.4(b)(v) of the Credit Agreement.
6.Covenants. The Borrower shall: 

(a)continue to diligently pursue efforts to refinance the outstanding Obligations;

(b)on or before October 15, 2018, deliver to the Administrative Agent an indication of interest letter and attached term sheet reasonably acceptable to the Administrative Agent from a bona fide third party providing for the repayment of all of the Obligations in full in cash (the “Refinancing Transaction”) scheduled to close on or before May 1, 2019; 

(c)provide the Administrative Agent and the Lenders an update every week as to the status of ongoing real estate asset sales, which update may be delivered via email; and

(d)conduct a status update conference calls on the last Business Day of every other calendar week with the Administrative Agent, its advisors and the Lenders to discuss the status of the Borrower’s operations, asset sale efforts and efforts to close a Refinancing Transaction, which conference calls shall cover (without limitation) discussions of any term sheets, any commitment documents, any bids, and any purchase agreements received by the Borrower and the Borrower’s responses to any such term sheets, commitment documents, bids and purchase agreements, in each case, subject to any confidentiality restrictions; provided that, if the Administrative Agent in its sole discretion shall elect to forego any scheduled conference call hereunder, the Borrower’s failure to conduct such call shall not constitute an Event of Default.

Failure to comply with any covenant set forth in this Section 6 shall constitute an Event of Default under the Credit Agreement.
7.Real Estate Collateral.

(a)Real Estate Mortgages.  The Borrower and the other Credit Parties acknowledge and agree that the Administrative Agent has identified the properties set forth on Schedule 1 hereto in a Real Estate Collateral Notice and the Borrower and the Administrative Agent have agreed on a form of deed of trust to be used to grant a Lien on each such property in favor of the Administrative Agent, for the ratable benefit of the Secured Parties.  In addition, the Borrower and the other Credit Parties have agreed to grant to the Administrative Agent, for the ratable benefit of the Secured Parties, a deed of trust, using the same agreed on form of deed of trust, on that certain property referred to as Houston #29 located at 2400 South MacGregor Way, Houston, Texas (such deed of trust, together with each deed of trust on the properties identified on Schedule 1 hereto to be included in the term “Mortgages” upon execution thereof).   Notwithstanding anything to the contrary set forth in Section 8.22 of the Credit Agreement, the applicable Credit Parties shall, within three (3) Business Days, or such later date as agreed in writing by the Administrative Agent, of presentation to the applicable Credit Party for signature of such agreed upon deed of trust form completed to identify any such property, duly execute, have properly notarized and return to the Administrative Agent such deed of trust and promptly upon request take such other steps as shall permit the Administrative Agent to duly record such deed of trust in the appropriate land recording office or registry of deeds.  The Credit Parties agree that such deeds of trust for such properties may be submitted to the Credit Parties for signature collectively or individually as they are completed.

(b)Appraisals and Related Expenses. Notwithstanding anything to the contrary set forth in Section 8.22 of the Credit Agreement and in addition to the obligations set forth in Section 12.3 of the Credit Agreement, each Credit Party agrees (i) to deliver to the Administrative Agent updated appraisals of (A) any real estate property identified in the Real Estate Collateral Notice and (B) that certain property referred to as Houston #29 located at 2400 South MacGregor Way, Houston, Texas, in all cases, upon request of the Administrative Agent or the Required Lenders, or, in the alternative, that the Administrative Agent may, in its sole discretion, obtain appraisals of any such real estate property, and (ii) promptly upon request to pay or reimburse the Administrative Agent and the Lenders for any costs or expenses incurred or associated with such appraisals and with obtaining or preparing any Real Estate Collateral Documents including recording fees.    

8.Conditions and Effectiveness.  This Amendment shall become effective as soon as the following conditions precedent have been satisfied (the date on which such conditions have been satisfied, the “Third Amendment Effective Date”):

(a)The Administrative Agent shall have received counterpart signatures to this Amendment from each party hereto.

(b)The Borrower shall have delivered to the Administrative Agent and the Lenders completed marketing materials prepared by the Borrower and by Cowen and Company, LLC (the “Financial Advisor”), which marketing materials shall be used to promote the Refinancing Transaction.

(c)The Borrower shall have paid to Morgan Lewis & Bockius LLP in its capacity as counsel to the Administrative Agent all fees and expenses of Morgan, Lewis & Bockius LLP for which invoices have been presented prior to the effectiveness hereof.

9.Amendment Fees.  No later than the close of business on each of December 31, 2018 and March 31, 2019, the Borrower will pay to the Administrative Agent for the account of each Lender an amendment fee equal to 1.0% of the sum of such Lender’s Revolving Credit Commitment on such date plus the then-outstanding balance of the Term Loan advanced by such Lender outstanding on such date (respectively, the “December Amendment Fee” and the “March Amendment Fee” and collectively, the “Amendment Fees”).  In the event that the Revolving Credit Commitments are terminated or the required payment of the principal of the Term Loans is accelerated, in either case following the occurrence of an Event of Default, each Amendment Fee that was not previously calculated shall be calculated as of the date immediately prior to such termination or acceleration based on the amount of the Revolving Credit Commitments in effect and the aggregate principal amount of the Term Loans outstanding on such date and shall be due upon demand. The Amendment Fees shall be fully earned on the Third Amendment Effective Date.  Failure to pay any of the fees described in this Section 9 when due shall constitute an immediate Event of Default under the Credit Agreement.  

10.Other Expenses.  The Borrower shall pay the legal fees, costs and expenses of the counsel to the Administrative Agent no later than three (3) Business Days after receiving an invoice of such counsel’s legal fees, costs and expenses.  Failure to pay any of the fees described in this Section 10 when due shall constitute an immediate Event of Default under the Credit Agreement.

11.Representations and Warranties.   The Borrower hereby represents and warrants to the Administrative Agent and each Lender as follows:

(a)the execution, delivery and performance by the Borrower of this Amendment has been duly authorized by all necessary corporate action;

(b)after giving effect to the amendments set forth herein, no Default or Event of Default has occurred and is continuing or would result herefrom; and

(c)all representations and warranties contained in the Credit Agreement are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any portion of any representation and warranty that is already qualified or modified by materiality in the text thereof); provided that any such representations and warranties that by their express terms are made as of a specific date are true and correct in all material respects as of such specific date.

(d)the Credit Parties party hereto constitute all of the Subsidiaries of the Borrower required to be a Subsidiary Guarantor pursuant to the terms of the Credit Agreement.

12.Agreement in Full Force and Effect; Borrower Ratification of other Loan Documents.  Except as specifically amended hereby, the Existing Agreement shall remain in full force and effect and is hereby ratified and confirmed.  Except as expressly set forth herein, this Amendment shall not be deemed to be a waiver, amendment or modification of any provisions of the Existing Agreement or any Loan Document or any right, power or remedy of the Administrative Agent or the Lenders, or of any Default or Event of Default under any of the foregoing, in each case, whether arising before or after the date hereof or as a result of performance hereunder or thereunder.  Each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference herein or in any Loan Document to the “Credit Agreement” shall mean and be a reference to the Credit Agreement as amended hereby.   For the avoidance of doubt, this Amendment shall constitute a Loan Document for all purposes under the Credit Agreement.  All other Loan Documents to which the Borrower is a party remain in full force and effect, and the Borrower hereby ratifies all of its obligations thereunder.

13.Ratification of Guaranty.  Each of the undersigned Subsidiary Guarantors hereby acknowledges and consents to this Amendment, and agrees that its Guaranty Agreement in favor of the Administrative Agent for the benefit of the Secured Parties, and all other Loan Documents to which it is a party, remain in full force and effect, and each of the Subsidiary Guarantors hereby ratifies all of its respective obligations thereunder.

14.Release of Claims.  In order to induce the Administrative Agent and the Lenders to enter into this Amendment, each Credit Party, on behalf of itself and its respective Related Parties (collectively, the “Releasing Parties”), acknowledges and agrees that: (a) none of the Releasing Parties presently has any claim or cause of action against any of the Administrative Agent, any Lender or any of their respective Related Parties (collectively, the “Released Parties”) relating to or arising out of any Loan Document or any agreement entered into in connection therewith; (b) to the actual (and not constructive or imputed) knowledge of any officer of any Credit Party, none of the Releasing Parties presently has any offset right, counterclaim or defense of any kind against any of their respective Obligations, debt or liabilities to the Administrative Agent or any Lender; and (c) each of the Released Parties has heretofore properly performed and satisfied in a timely manner all of its obligations to the Credit Parties and their Subsidiaries under the Loan Documents to which it is a party.  Each of the Credit Parties wishes to eliminate any possibility that any past conditions, acts, omissions, events, circumstances or matters would impair or otherwise adversely affect any of the Administrative Agent or any Lenders’ rights, interests, contracts, or remedies under the Loan Documents, whether known or unknown, as applicable.  Therefore, each of the Credit Parties, on behalf of the Releasing Parties, unconditionally releases, waives and forever discharges (x) any and all liabilities, obligations, duties, promises or debt of any kind of the Administrative Agent and each Lender to the Releasing Parties, in each case, occurring, existing or arising on or prior to the date of this Amendment, and (y) all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which the Releasing Parties might otherwise have against any of the Released Parties for actions taken or not taken on or prior to the date of this Amendment, in each case under clause (x) or clause (y), (A) whether known or unknown, on account of any past or presently existing condition, act, omission, event, contract, liability, obligation, debt, claim, cause of action, defense, circumstance or matter of any kind, (B) other than any such liabilities, obligations, claims, causes of action or suits resulting from the gross negligence or willful misconduct of the Administrative Agent or any Lender, as determined by a court of competent jurisdiction in a final non-appealable judgment and (C) relating to or arising out of the Loan Documents or any agreement entered into in connection therewith.  The Released Parties shall not be liable with respect to, and each of the Credit Parties hereby waives, releases and agrees not to sue for, any special, indirect or consequential damages relating to the Loan Documents or arising out of activities in connection herewith or therewith (whether before, on or after the date hereof.  

15.Counterparts.  This Amendment may be executed by one or more of the parties to this Amendment and any number of separate counterparts, each of which when so executed, shall be deemed an original and all said counterparts when taken together shall be deemed to constitute but one and the same instrument.

16.Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the Borrower and its successors and assigns and the Administrative Agent and Lenders and their respective successors and assigns.

17.GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

18.Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment 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 provision or the remaining provisions of this Amendment.

19.ENTIRE AGREEMENT.  THE CREDIT AGREEMENT, AS AMENDED BY THIS AMENDMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

IN WITNESS WHEREOF, each of the undersigned has executed this Amendment as of the date set forth above.

BORROWER:

LUBY’S, INC.

By:    /s/ Christopher J. Pappas                                              
Christopher J. Pappas
President and Chief Executive Officer

SUBSIDIARY GUARANTORS:

LUBY'S FUDDRUCKERS RESTAURANTS, LLC

By:    /s/ Peter Tropoli                                        
Peter Tropoli
President and Chief Operating Officer

LUBY’S BEV I, LLC
LUBY’S BEV II, LLC

Each by:  /s/ Peter Tropoli                                    
  Peter Tropoli
  Manager

LUBY’S BEVCO, INC.

By:    /s/ Christopher J. Pappas                                              
Christopher J. Pappas 
President and CEO

Luby’s, Inc. - Signature Page to Third Amendment 

FUDDRUCKERS OF ANNAPOLIS, LLC
FUDDRUCKERS OF HOWARD COUNTY, LLC

FUDDRUCKERS OF BRANDYWINE, LLC

Each by Luby’s Bev II, LLC, as its Managing Member  

By:    /s/ Peter Tropoli                                        
Peter Tropoli
Manager

PARADISE CHEESEBURGERS, LLC

By: Luby’s Fuddruckers Restaurants, LLC, as its Manager

By:    /s/ Peter Tropoli                                        
Peter Tropoli
President and Chief Operating Officer

Luby’s, Inc. - Signature Page to Third Amendment 

PARADISE RESTAURANT GROUP, LLC
CHEESEBURGER OF NEWARK, LLC
CHEESEBURGER OF FT. MYERS, LLC
CHEESEBURGER OF SANDESTIN, L.L.C.
CHEESEBURGER OF DOWNERS GROVE, LLC
CHEESEBURGER OF ALGONQUIN, LLC
CHEESEBURGER OF EVANSVILLE, LLC
CHEESEBURGER OF FISHERS, LLC
CHEESEBURGER OF SOUTHPORT, LLC
CHEESEBURGER OF TERRE HAUTE, LLC
CHEESEBURGER OF KANSAS CITY, LLC
CHEESEBURGER OF PASADENA, LLC
CHEESEBURGER OF CALIFORNIA, LLC
CHEESEBURGER IN PARADISE OF ST. MARY’S COUNTY, LLC
CHEESEBURGER OF STERLING HEIGHTS, LLC
HIGH TIDES OF OMAHA, LLC
CHEESEBURGER OF SECAUCUS, LLC
CHEESEBURGER OF WALLKILL, LLC
CHEESEBURGER OF MYRTLE BEACH, LLC
CHEESEBURGER OF FREDERICKSBURG, LLC
CHEESEBURGER OF NEWPORT NEWS, LLC
CHEESEBURGER OF VIRGINIA BEACH, LLC
CHEESEBURGER OF WOODBRIDGE, LLC
CHEESEBURGER OF MIDDLETON, LLC

Each by:    /s/ Peter Tropoli                                    
Peter Tropoli
President 

CHEESEBURGER IN PARADISE OF ANNE ARUNDEL COUNTY, INC.

By:    /s/ Peter Tropoli                                        
Peter Tropoli
Authorized Representative

Luby’s, Inc. - Signature Page to Third Amendment

WELLS FARGO BANK, NATIONAL ASSOCIATION
as Lender and as Administrative Agent

By: /s/ Reginald T. Dawson         
Name: Reginald T. Dawson
Title: Senior Vice President

Luby’s, Inc. - Signature Page to Third Amendment

CADENCE BANK, N.A.
as Lender

By: /s/ Josh Taylor                  
Name: Josh Taylor
Title: Senior Vice President

Luby’s, Inc. - Signature Page to Third Amendment

TEXAS CAPITAL BANK, N.A.
as Lender

By: /s/ Joel Landis                             
Name: Joel Landis
Title: Executive Vice President

Luby’s, Inc. - Signature Page to Third Amendment

SCHEDULE 1

[Please see attached]

EXHIBIT A
SCHEDULE 1.1(A)

SCHEDULE OF REVOLVING CREDIT COMMITMENTS
AS OF THE THIRD AMENDMENT EFFECTIVE DATE

	
			
	Lender
	Revolving Credit Commitment
	Percentage

	Wells Fargo Bank, National Association
	$11,538,000
	38.460000%

	Texas Capital Bank, N.A.
	$9,231,000
	30.770000%

	Cadence Bank, N.A.
	$9,231,000
	30.770000%

	Total:
	$30,000,000
	100%

SCHEDULE OF TERM LOAN COMMITMENTS
AS OF THE CLOSING DATE

	
			
	Lender
	Term Loan Commitment
	Percentage

	Wells Fargo Bank, National Association
	$13,462,000
	38.462857%

	Texas Capital Bank, N.A.
	$10,769,000
	30.768571%

	Cadence Bank, N.A.
	$10,769,000
	30.768571%

	Total:
	$35,000,000
	100%ex_122889.htm

Exhibit 10.1

 

EIGHTH AMENDMENT TO CREDIT AGREEMENT

 

THIS EIGHTH AMENDMENT (this "Amendment"), dated as of August 24, 2018, amends and modifies a certain Credit Agreement, dated as of August 31, 2006, as amended by Amendments dated as of January 1, 2007, November 30, 2007, May 27, 2011, December 10, 2012, December 22, 2014, November 4, 2015 and December 6, 2016 (as so amended, the "Credit Agreement"), by and among MARTEN TRANSPORT, LTD., a Delaware corporation (the "Borrower"), the Banks named therein (U.S. Bank National Association being the sole Bank as of the date hereof), and U.S. BANK NATIONAL ASSOCIATION, as agent for the Banks (the "Agent"). Terms not otherwise expressly defined herein shall have the meanings set forth in the Credit Agreement.

 

FOR VALUE RECEIVED, the Borrower, the Banks and the Agent agree as follows:

 

ARTICLE I - AMENDMENT

 

1.1   Decrease to Revolving Commitment Amount. The Borrower has requested that the Aggregate Revolving Credit Amount shall be decreased from $40,000,000 to $30,000,000. U.S. Bank National Association, in its capacity as a Bank, has agreed to decrease its Revolving Commitment Amount by $10,000,000 to $30,000,000. Consequently, the Credit Agreement is amended by replacing Schedule 1.1.2 with Schedule 1.1.2 attached to this Amendment.

 

1.2   Definitions. Section 1.1 is amended as follows:

 

(a) The following definitions are amended to read as follows:

 

"'Letter of Credit Sublimit': $30,000,000."

 

"'LIBOR': The offered rate for deposits in United States Dollars for delivery of such deposits on the first day of an Interest Period of a LIBOR Advance, for the number of days comprised therein, quoted by the Agent from Reuters Screen LIBOR01 Page as of approximately 11:00 a.m., London time, on the day that is two Business Days preceding the first day of the Interest Period of such LIBOR Advance, or the rate for such deposits determined by the Agent at such time based on such other published service of general application as shall be selected by the Agent for such purpose. If LIBOR as so determined shall at any time be less than 0%, it shall be deemed for purposes of this Credit Agreement and the Notes to equal 0%, and the interest rate shall be calculated based on LIBOR (Reserve Adjusted) plus the Applicable Margin.

 

"'Sanctions': Sanctions administered or enforced from time to time by the U.S. government, including those administered by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority."

 

"'Termination Date': The earliest of (a) August 24, 2023, (b) the date on which the Revolving Commitments are terminated pursuant to Section 7.2 hereof or (c) the date on which the Revolving Commitment Amounts are reduced to zero pursuant to Section 2.15 hereof."

 

 

 

 

(b) The following definitions are added:

 

"'Beneficial Ownership Certification': A certification regarding beneficial ownership as required by the Beneficial Ownership Regulation."

 

"'Beneficial Ownership Regulation': 31 C.F.R. § 1010.230."

 

"Governmental Authority": The government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including, without limitation, any supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervisory Practices or any successor or similar authority to any of the foregoing).

 

(c) The definitions of "Sanctioned Country" and "Sanctioned Person" are deleted.

 

1.3   Replacement LIBOR Provision. Section 2.23 is amended to read as follows:

 

"Section 2.23 Interest Rate Not Ascertainable, Etc.

 

(a) If the Agent or the Required Banks determine that:

 

(a) deposits in dollars (in the applicable amount) are not being made available to the Banks in the relevant market for such Interest Period, or

 

(b) LIBOR (Reserve Adjusted) is not ascertainable or does not adequately and fairly reflect the cost to the Banks of funding or maintaining LIBOR Advances or Daily Floating LIBOR Advances,

 

such Bank shall forthwith give notice to the Borrower and the other Banks of such determination, whereupon the obligation of such Bank to make or continue, or to convert any Advances to, LIBOR Advances shall be suspended until such Bank notifies the Borrower and the Agent that the circumstances giving rise to such suspension no longer exist. While any such suspension continues, all further Advances by such Bank shall be made as Prime Rate Advances. No such suspension shall affect the interest rate then in effect during the applicable Interest Period for any LIBOR Advance outstanding at the time such suspension is imposed.

 

(b) Notwithstanding the foregoing, in the event the Agent determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth in Section 2.23(a) have arisen and such circumstances are unlikely to be temporary, (ii) ICE Benchmark Administration (or any Person that takes over the administration of such rate) discontinues its administration and publication of interest settlement rates for deposits in Dollars, or (iii) the supervisor for the administrator of the interest settlement rate described in clause (ii) of this Section 2.23(b) or a Governmental Authority having jurisdiction over the Agent has made a public statement identifying a specific date after which such interest settlement rate shall no longer be used for determining interest rates for loans, then the Agent and the Borrower shall seek to jointly agree upon an alternate rate of interest to the LIBOR Advances and Daily Floating LIBOR Advances that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and the Agent and the Borrower shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable. Notwithstanding anything to the contrary in Section 9.1, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Agent shall not have received, within five Business Days of the date notice of such alternate rate of interest is provided to the Banks, a written notice from the Required Banks stating that such Required Banks object to such amendment. Until an alternate rate of interest shall be determined in accordance with this Section 2.23(b), any request for a LIBOR Advances or Daily Floating LIBOR Advances that requests the conversion of any Advance to, or continuation of any Advance as, a LIBOR Advance or Daily Floating LIBOR Advance shall be ineffective and any such Advance shall be continued as or converted to, as the case may be, a Prime Rate Advance. If the alternate rate of interest determined pursuant to this Section 2.23(b) shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement."

 

2

 

 

1.4   Accordion Feature. Section 2.29 is amended to read as follows:

 

"Section 2.29 Accordion Feature. The Borrower may, from time to time, increase the Aggregate Revolving Commitment Amount hereunder, by giving notice to the Agent, specifying the dollar amount of the increase (which shall be in an integral multiple of $5,000,000, and which shall not result in the Aggregate Revolving Commitment Amount hereunder exceeding $60,000,000); provided, however, that an increase in the Aggregate Revolving Commitment Amount hereunder may only be made at a time when no Default or Event of Default shall have occurred and be continuing. The Borrower may increase the Aggregate Revolving Commitment Amount by either increasing a Revolving Commitment Amount with an existing Bank or obtaining a Revolving Commitment from a new financial institution, the selection of which shall require the consent of the Agent, not to be unreasonably withheld. The Borrower, the Agent and each Bank or other financial institution that is increasing its Revolving Commitment Amount or extending a new Revolving Commitment shall enter into an amendment to this Agreement setting forth the amounts of the Revolving Commitment Amount, as so increased, providing that any new financial institution extending a new Revolving Commitment shall be a Bank for all purposes under this Agreement. No such amendment shall require the approval or consent of any Bank whose Revolving Commitment Amount is not being increased and no Bank shall be required to increase its Revolving Commitment Amount unless it shall so agree in writing. Upon the execution and delivery of such amendment as provided above, this Agreement shall be deemed to be amended accordingly and the Agent shall adjust the funded amount of the Revolving Loans of the Banks so that each Bank (including the Banks with new or increased Revolving Commitment) shall hold their respective Revolving Percentages (as amended by such amendment) of the Revolving Loans outstanding and the unfunded Revolving Commitment Amount (and each Bank shall so fund any increased amount of Advances), and shall participate in the Letter of Credit obligations and have obligations to participate in Unrefunded Swing Line Loans in their respective Revolving Percentages (as amended by such amendment)."

 

3

 

 

1.5   Regulatory Provisions.

 

(a) Section 4.18 is amended to read as follows:

 

"Section 4.18 Anti-Corruption Laws; Sanctions. The Borrower, its Subsidiaries and their respective officers and employees and to the knowledge of the Borrower, its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. The Borrower has implemented and maintains in effect for itself and its Subsidiaries policies and procedures designed to facilitate compliance by the Borrower, its Subsidiaries, and their respective officers, employees, directors, and agents with Anti-Corruption Laws and applicable Sanctions. None of the Borrower, any of its Subsidiaries or, to the knowledge of the Borrower, any director, officer, employee, agent, or affiliate of the Borrower or any of its Subsidiaries is an individual or entity that is, or is 50% or more owned (individually or in the aggregate, directly or indirectly) or controlled by individuals or entities (including any agency, political subdivision or instrumentality of any government) that are (i) the target of any Sanctions or (ii) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions (currently Crimea, Cuba, Iran, North Korea, Sudan and Syria)."

 

(b) Section 5.1(i) is added following Section 5.1(h), and shall read as follows:

 

"5.1(i) Upon request of any Bank (i) information and documentation reasonably requested by Bank for purposes of compliance with applicable 'know your customer' requirements under the PATRIOT Act or other applicable anti-money laundering laws, and (ii) if the Borrower qualifies as a 'legal entity customer' under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Borrower."

 

(c) Section 5.8(c) is added, and shall read as follows:

 

"(c) The Borrower shall, and shall cause each Subsidiary to, provide such information and take such actions as are reasonably requested by the Bank in order to assist the Bank in maintaining compliance with anti-money laundering laws and regulations."

 

(d) Section 5.12(b) is amended to read as follows:

 

"(b) The Borrower will not request any Loan, and will not use, and the Borrower will ensure that its Subsidiaries will endeavor to ensure that its or their respective directors, officers, employees and agents shall not use, the proceeds of any Loan in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws. The Borrower will not, directly or indirectly, use the proceeds of the Loans or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Loans, whether as underwriter, advisor, investor, or otherwise)."

 

4

 

 

1.6   Revolving Note. The Revolving Loans shall continue to be evidenced by the Revolving Note dated as of November 4, 2015 in the amount of up to $75,000,000 (it being acknowledged that such amount is in excess of the Revolving Commitment Amount).

 

1.7   Construction. All references in the Credit Agreement to "this Agreement", "herein" and similar references shall be deemed to refer to the Credit Agreement as amended by this Amendment.

 

ARTICLE II - REPRESENTATIONS AND WARRANTIES

 

To induce the Banks and the Agent to enter into this Amendment and to make and maintain the Loans under the Credit Agreement as amended hereby, the Borrower hereby warrants and represents to the Banks and the Agent that it is duly authorized to execute and deliver this Amendment, and to perform its obligations under the Credit Agreement as amended hereby, and that this Amendment constitutes the legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to limitations as to enforceability which might result from bankruptcy, insolvency, moratorium and other similar laws affecting creditors' rights generally and subject to equitable principles.

 

ARTICLE III - CONDITIONS PRECEDENT

 

This Amendment shall become effective on the date first set forth above, provided, however, that the effectiveness of this Amendment is subject to the satisfaction of each of the following conditions precedent:

 

3.1   Warranties. Before and after giving effect to this Amendment, the representations and warranties in Article 4 of the Amended Credit Agreement shall be true and correct as though made on the date hereof, except for changes that are permitted by the terms of the Credit Agreement, as amended hereby and except to the extent such representations and warranties expressly refer to an earlier date.

 

3.2   Defaults. Before and after giving effect to this Amendment, no Default and no Event of Default shall have occurred and be continuing under the Amended Credit Agreement.

 

3.3   Documents. The Borrower shall have executed and delivered this Amendment and the Guarantor Subsidiaries shall have executed and delivered the Acknowledgement in the form attached hereto.

 

ARTICLE IV - GENERAL

 

4.1   Expenses. The Borrower agrees to reimburse the Agent upon demand for all reasonable expenses (including reasonable attorneys' fees and legal expenses) incurred by the Agent in the preparation, negotiation and execution of this Amendment and any other document required to be furnished herewith, and in enforcing the obligations of the Borrower hereunder, and to pay and save the Agent and the Banks harmless from all liability for, any stamp or other taxes which may be payable with respect to the execution or delivery of this Amendment, which obligations of the Borrower shall survive any termination of the Credit Agreement.

 

4.2   Counterparts. This Amendment may be executed in as many counterparts as may be deemed necessary or convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same instrument.

 

5

 

 

4.3   Severability. Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provisions in any other jurisdiction.

 

4.4   Law; Consent to Jurisdiction; Waiver of Jury Trial. This Amendment shall be a contract made under the laws of the State of Minnesota, which laws shall govern all the rights and duties hereunder. This Amendment shall be subject to the Consent to Jurisdiction and Waiver of Jury Trial provisions of the Credit Agreement.

 

4.5   Successors; Enforceability. This Amendment shall be binding upon the Borrower, the Banks and the Agent and their respective successors and assigns, and shall inure to the benefit of the Borrower, the Banks and the Agent and the successors and assigns of the Banks and the Agent. Except as hereby amended, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.

 

 

 

 

(signature page follows)

 

6

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed at Minneapolis, Minnesota by their respective officers thereunto duly authorized as of the date first written above.

 

	
			 

				
			U.S. BANK NATIONAL ASSOCIATION, as

			Agent and as a Bank

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Eric M. Herm

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			Title

				
			Officer

				
			 

			
	 	 	 	 
	 	 	 	 
	 	MARTEN TRANSPORT, LTD., as the Borrower	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ James J. Hinnendael	 
	 	 	James J. Hinnendael	 
	 	 	Title: Executive Vice President and	 
	 	 	Chief Financial Officer	 

 

 

7

 

     

Schedule 1.1.2

 

Commitments and Percentages

 

 

	Bank:	Revolving Commitment:	Revolving Percentage:
	 	 	 
	U.S. Bank	$30,000,000	100.000000000%

 

                              

 

 

 

GUARANTOR'S ACKNOWLEDGMENT

 

The undersigned (the "Guarantors") have each, by guaranties each dated as of January 1, 2007 (the "Guaranties") guaranteed payment and performance of obligations of MARTEN TRANSPORT, LTD. (the "Borrower") to the Banks and U.S. Bank National Association, as Agent, under the Credit Agreement, dated as of August 31, 2006 (as thereafter amended, the "Credit Agreement") among the Borrower, the Banks and the Agent. Each Guarantor acknowledges that such Guarantor has received a copy of the proposed Eighth Amendment to the Credit Agreement, to be dated on or about August 24, 2018 (the "Amendment"). Each Guarantor agrees and acknowledges that the Amendment shall in no way impair or limit the right of the Bank under its Guaranty, and confirms that by its Guaranty, such Guarantor continues to guaranty payment and performance of the obligations of the Borrower to the Bank specified in such Guaranty, including without limitation obligations under the Credit Agreement as amended pursuant to the Amendment. Each Guarantor hereby confirms that its Guaranty remains in full force and effect, enforceable against such Guarantor in accordance with its terms.

 

Dated as of August 24, 2018.

 

 

	
			 

				
			MARTEN TRANSPORT SERVICES, LTD.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ James J. Hinnendael

				
			 

			
	
			 

				
			 

				
			James J. Hinnendael

				
			 

			
	
			 

				
			 

				
			Title:   Chief Financial Officer

				
			 

			
	 	 	 	 
	 	 	 	 
	 	MARTEN TRANSPORT LOGISTICS, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ James J. Hinnendael	 
	 	 	James J. Hinnendael	 
	 	 	Title:   Chief Financial Officer	 
	 	 	 	 
	 	 	 	 
	 	MARTEN TRANSPORT HOLDINGS, LTD.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ James J. Hinnendael	 
	 	 	James J. Hinnendael	 
	 	 	Title:   Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]