Document:

UTEK Form 10-Q

 

EXHIBIT 10.1

LICENSE AGREEMENT

     This Agreement is effective as of the latest date of signing below and is
by and between Brookhaven Science Associates LLC, (“Licensor”), operator of
Brookhaven National Laboratory, Upton, New York 11973, under contract with the
U.S. Department of Energy, and UTEK Corporation, (“Licensee”) having a
principal place of business at 202 South Wheeler Street, Plant City, Florida.

     Licensor represents that it is the owner by assignment of all rights,
title and interest in the patent properties covering Mini-Lidar Stand-Off
Sensor Device.

     Licensor represents that it has the right to grant licenses under said
patent properties, subject to a non-exclusive, non-transferable, irrevocable,
paid-up license heretofore granted to the U.S. Government to practice or have
practiced the invention(s) covered by said patent properties for or on behalf
of the United States Government.

     Licensor desires to have said patent properties utilized in the public
interest and is willing to grant a license thereunder on the terms and
conditions set forth herein.

     Licensee desires to secure an exclusive license under said patent
properties on the terms and conditions set forth herein.

     Licensee intends to assign, in writing, all rights granted to it under
this License Agreement to Circle Group Holdings, Inc., immediately upon
execution of this Agreement.

     Accordingly, in consideration of the premises and the mutual covenants of
this Agreement, the parties hereto agree as follows:

I — DEFINITIONS

     (a)     The term “Patent Rights” shall mean:

          1.     U.S. Patent Application serial No. 09/659,202 filed in the names of
Mark Ray, et al., entitled “Mini-Lidar Sensor for the Remote Stand-Off Sensing
of Chemical/Biological Substances and Method of Sensing Same”, and any
continuations, continuations-in-part, or divisionals of said
application, and any patents or reissue of patents that issue thereon.

Page 1 of 12

 

     (b)     The term “Valid Claim” means and includes a claim contained in the
Patent Rights which has not expired, which has not been held invalid or
unenforceable by final decision of a court or other governmental agency of
competent jurisdiction, unappealable or unappealed within the time allowed for
appeal, and which has not been admitted to be invalid or unenforceable through
reissue, disclaimer or otherwise.

     (c)     The term “Licensed Products” shall mean any products covered by a
Valid Claim in the Patent Rights, and any product the manufacture, use or sale
of which is covered by a Valid Claim in the Patent Rights.

     (d)     The term “Net Sales Proceeds” shall mean the actual price at which
each Licensed Product is sold by Licensee, f.o.b. Licensee’s place of business,
less the following sums actually paid or credited by Licensee:

		
	 	     I.     sales or other excise taxes directly imposed with reference to
particular sales;
	 
	 	     ii.     outbound transportation charges prepaid or allowed;
	 
	 	     iii.     insurance coverage for such outbound transportation;
	 
	 	     iv.     amounts allowed or credited on returns;
	 
	 	     v.     amounts allowed as customary trade discounts.

II — GRANT

     Subject to the rights of the U.S. Government, defined in Public Law 98-620
and the related implementing regulations at 37 CFR Part 401, Licensor hereby
grants to Licensee an exclusive license under the Patent Rights to make, have
made, use, and/or sell Licensed Products.

III – LICENSE CONSIDERATION

     As partial consideration for the granting of this license, Licensee agrees
to issue to Licensor unregistered shares of Circle Group Holdings, Inc., 1011
Campus Dr., Mundelein, IL, (OTCBB symbol CRGQ) stock with a total valuation of
seventy five thousand U.S. Dollars (U.S. $75,000.00). The actual number of
shares to be issued to Licensor will be based on the closing price of CRGQ
stock on the day
prior to the effective date of this Agreement. Said shares shall be delivered
by Licensee to Licensor within thirty (30) days of the effective date of this
Agreement.

Page 2 of 12

 

IV — REIMBURSEMENT OF LICENSOR’S PATENT COSTS

     (a)     As partial consideration for the granting of this license,
Licensee will pay to Licensor
seventy five hundred U.S. dollars (U.S. $7,500.00) as reimbursement for
Licensor’s existing patent costs for said Patent Rights. This payment will be
made by Licensee to Licensor within thirty (30) days of the effective date of
this Agreement.

     (b)     Licensee will reimburse Licensor for all costs incurred after 3/26/03
in connection with the filing, prosecution, and maintenance of all patents and
patent applications included in the Patent Rights. Licensor will submit
periodic invoices to Licensee covering such expenses and Licensee will
reimburse Licensor for these expenses within thirty (30) days of receipt of an
invoice.

V — REPORTS AND ROYALTIES

     (a)     Commencing in the calendar year 2004, Licensee agrees to make written
reports to Licensor biannually, within sixty (60) days after the first day of
each January and July during the life of this Agreement, and, as of such dates,
stating in each such report the total Net Sales Proceeds during the preceding
six calendar months. The first such report shall include all Net Sales
Proceeds from the effective date of this Agreement to the date of said report.
Such bi-annual reports shall provide the particulars of the business conducted
by Licensee during the preceding six (6) month period under this license
Agreement as are pertinent to a royalty accounting. These shall include at
least the following:

	 	1.	 	all Licensed Products manufactured, used, sold or otherwise
disposed of;
	 
	 	2.	 	total billings for Licensed Products sold, used or otherwise
disposed of;
	 
	 	3.	 	deductions applicable, if any; and
	 
	 	4.	 	total royalties due.

     (b)     Concurrently with the making of each such report required by
paragraph (a) of this Article
V, Licensee will pay to Licensor royalties at the rate of 3% percent of Net
Sales Proceeds.

     (c)     Beginning in the calendar year 2004 Licensee agrees to pay
annual minimum royalties
(“Minimum Royalties”) as follows:

	 	•	 	Calendar year 2004: ten thousand United States Dollars (U.S.
$10,000).

Page 3 of 12

 

	 	•	 	Calendar year 2005 and for each year thereafter
until the termination or expiration of
this Agreement: fifteen thousand United States Dollars (U.S. $15,000).

In the event that the Running Royalties paid under paragraph (b) of this
Article (V) with respect to a calendar year exceed the applicable Minimum
Royalty for that year, it is understood that no separate Minimum Royalty is to
be paid for that year. In the event that the actual Running Royalties paid
with respect to a calendar year are less than the applicable Minimum Royalty
for that year, Licensee shall be obligated to pay within sixty (60) days after
the end of each such year the difference between the actual royalties it paid
with respect to said year and the Minimum Royalty for that year to satisfy this
Minimum Royalty payment provision.

     (d)     Licensee agrees to make a written report to Licensor within sixty (60)
days after the date of any termination of this Agreement, which shall identify
all Net Sales Proceeds and sublicensing share realized prior to termination of
this Agreement. Concurrently with the making of this report, Licensee will pay
to Licensor all royalties due on the basis of this report at the rates defined
in paragraphs (b) and (c) of this Article and all sublicensing income due.

     (e)     All monies payable hereunder shall be paid in United States Dollars.

VI — SUBLICENSES

     (a)     The grant under Article II above includes the right to grant
sublicenses. Any sublicense granted by Licensee shall be subject to the terms
and conditions of this Agreement, including the insurance requirement in
Article VIII hereof, and shall contain an express provision to that effect. No
sublicense shall relieve Licensee of any of its obligations under this
Agreement. Licensee agrees to forward to Licensor a fully executed copy of
each sublicense agreement it enters into within thirty (30) days after
execution thereof.

     (b)     Licensee agrees to include in its reports required in Article V above
an accounting of all consideration received by Licensee from its sublicensees.
Licensee agrees to pay Licensor, in addition to
all of the amounts provided for in Article V above, fifty percent (50%) of
all consideration of any nature, including, for example, license fees, earned
royalties, and minimum royalties, received by Licensee from its sublicensees.

Page 4 of 12

 

     (c)     Upon the termination of this Agreement for any cause, any and all
existing sublicenses hereunder shall thereupon automatically terminate. This
shall be made a condition of any sublicense that may be granted by Licensee.

VII — AUDITING

     (a)     Licensee agrees to keep for a period of three years the records used
to prepare the reports required by Article V hereof. Such records shall be in
sufficient detail to enable the royalties and licensing fees payable hereunder
by Licensee to be clearly and fully determined. Licensee further agrees to
permit such records to be examined from time to time to the extent necessary to
verify the reports provided for in Article VI hereof, such examination to be
made at the expense of Licensor by an auditor appointed by Licensor, or at the
option and expense of Licensee, by an independent Certified Public Accountant
who shall be appointed by Licensee and who shall be acceptable to Licensor.

     (b)     Licensor agrees to use its best efforts to maintain in confidence the
information reported to it in Licensee’s biannual sales reports and any
confidential information it obtains through its audit rights. Licensor will
use its best efforts to neither disclose this information outside of its
organization nor use this information for any purpose other than collection of
royalties from Licensee under this Agreement.

     (c)     Licensee agrees that the confidentiality and use provisions of this
Article shall not apply to the following:

          (1)     any information which appears in printed publications or which
otherwise is or becomes generally known in the trade other than through the
fault of Licensor;

          (2)     any information which Licensor can show by written records was in its
possession prior to the disclosure hereunder; or

          (3)     any information which comes into the possession of Licensor without
covenants of secrecy from another party who is under no obligation to Licensee
to maintain the confidentiality of the
information.

VIII — DISCLAIMER, INDEMNIFICATION, HOLD HARMLESS AND INSURANCE

     (a)     Licensor makes no representation or warranty, either expressed or
implied, and no

Page 5 of 12

 

representation or warranty shall be implied, with respect to
the License herein granted other than that Licensor has the right to grant said
license.

     (b)     Nothing in this Agreement shall be construed as:

          (1)     a warranty or representation by Licensor as to the validity or
scope of any Patent Rights;

          (2)     a warranty or representation that any product made, used, sold
or otherwise disposed of or any method practiced under any license
granted under this Agreement is or will be free from infringement or
claims of infringement of patents, copyrights or any other property right
of third parties; or

          (3)     granting by implication, estoppel or otherwise any licenses or
rights under patents or other property rights of Licensor other than said
Patent Rights, regardless of whether such patents are dominant or
subordinate to any Patent Rights.

     (c)     Licensor shall not be liable for any injury, losses or damages,
including special or consequential damages or losses incurred by Licensee, nor
for claims for such damages, losses or other injuries asserted or levied
against Licensee, arising out of Licensee’s practice of the Grant set forth in
Article II of this Agreement. Licensee shall indemnify and hold harmless
Licensor and the U.S. government from any claims, actions, judgements or awards
arising out of Licensee’s practice of the Grant set forth in Article II, or out
of Licensee’s manufacture, use, sale or disposition of Licensed Products.

     (d)     Licensee shall, at the time of signing of this Agreement, deliver to
Licensor: a certificate of liability insurance showing Licensor as a named
insured and evidencing that Licensee maintains insurance, in an amount of at
least one million dollars ($1,000,000.00), for all liabilities, obligations or
claims arising out of the manufacture, use, sale or disposition of Licensed
Products and the indemnification, hold harmless and other obligations
undertaken by Licensee under this Agreement. Licensee agrees that it will provide such certification of insurance at no
expense to Licensor. Licensee further agrees to periodically provide evidence
of its continuing to maintain substantively and fiscally equivalent liability
insurance for the term of this Agreement and for twenty (20) years thereafter.
The specified minimum amount of insurance coverage shall not be construed to
create a limitation on the obligation of Licensee.

Page 6 of 12

 

IX — INFRINGEMENT OF LICENSOR’S PATENT RIGHTS BY THIRD PARTIES

     (a)     Should Licensor or Licensee become aware of any infringement or
alleged infringement in the United States, its territories and possessions, of
any of the Patent Rights, that party shall promptly notify the other party in
writing of the name and address of the alleged infringer and of the alleged
acts of infringement, and provide any available evidence of the alleged acts of
infringement.

     (b)     Neither Licensor nor Licensee shall be obligated to institute suit
against any alleged infringer of any of the Patent Rights.

     (c)     Licensee shall have the right to bring legal action against an alleged
infringer of any of the Patent Rights in its own name or in the joint name of
the Licensee and Licensor. In the event that Licensee elects to initiate an
infringement action in its own name, or in the joint name of Licensee and
Licensor, any and all expenses, judgments or sanctions incurred in connection
with such legal action shall be borne solely by Licensee, who shall retain for
itself, any and all monies or other benefits derived from such legal action,
except for monies due to Licensor under this License Agreement.

     (d)     Licensor and Licensee hereby agree to cooperate with each other in the
prosecution of any legal infringement action or settlement discussions and each
agrees to provide the other with all pertinent data and evidence which may be
helpful in the prosecution of such action of which it may have knowledge or
which may be readily available to it without incurring substantial expense.

     (e)     Should Licensee commence a suit under the provisions of this Article
and thereafter elect to abandon this suit, it shall give timely notice to the
Licensor who may, if it so desires, continue prosecution of such suit, provided
however that the sharing of expenses and any recovery in such continued suit
shall be as agreed upon between Licensor and Licensee.

     (f)     If, at any time during this Agreement, Licensor or Licensee shall be
unable to uphold the validity of any of the Patent Rights against any alleged
infringer, Licensee shall not have or assert any damage claim or a claim for
refund or reimbursement against Licensor.

X — SUCCESSOR RIGHTS

     (a)     The obligations of Licensee hereunder, including the obligations to
make reports and pay

Page 7 of 12

 

royalties, shall run in favor of the successors, assigns
or other legal representatives of Licensor.

     (b)     Licensee’s rights under this Agreement and the license herein granted
shall not be assigned for the benefit of creditors of Licensee or otherwise,
nor shall such rights or license pass to any receiver of Licensee’s assets,
except for a person or corporation succeeding to the entire business and good
will of Licensee in the manufacture and sale of Licensed Products as the result
of a sale, consolidation, reorganization or otherwise, provided such person or
corporation shall, without delay, accept in writing the provisions of this
Agreement and agree to become in all respects bound thereby in the place and
stead of Licensee. Licensee’s rights under this Agreement and the license
herein granted shall not be otherwise transferred without the written consent
of Licensor.

XI — UNITED STATES GOVERNMENT EXPORT CONTROL REGULATIONS

     (a)     The Export Control Regulations of the U.S. Department of Commerce
prohibit, except under a special validated license, the exportation from the
United States of technical data relating to certain commodities listed in the
Regulations, unless the exporter has received certain written assurance from
the foreign importer. In order to facilitate the exchange of technical
information under this Agreement, Licensee therefor hereby gives its assurance
to Licensor that it will comply with all of the requirements of the U.S. Export
Control Regulations.

     (b)     Violation of the U.S. Export Control laws or regulations by Licensee
shall constitute grounds for Licensor, in its sole discretion, to terminate
this license agreement. Failure to obtain any needed export control license
may result in criminal liability under the United States law.

XII — TERM AND TERMINATION

     (a)     Unless previously terminated in accordance with the following
provisions of this Article
XII, this Agreement shall become effective as of the date set forth at the
outset of this Agreement and shall run to the end of the term of the last to
expire patent in the Patent Rights licensed hereunder, and shall thereupon
expire.

     (b)     If Licensee shall at any time default in the payment of any license
fee or royalty or in the making of any report hereunder, or shall commit any
breach of any covenant herein contained, and shall fail

Page 8 of 12

 

to remedy any such
default or breach within thirty (30) days after written notice thereof by
Licensor, then Licensor may, at its option, terminate the license and all other
rights herein granted, by giving notice to Licensee in writing to such effect.

     (c)     After two years from the effective date of this Agreement, Licensee
shall have the right to terminate the prospective effect of the license
hereunder at any time by written notice given to the Licensor at least six (6)
months prior to the date when such termination is to become effective.

     (d)     Any termination or expiration of this Agreement shall not relieve
Licensee from its obligations under Article V hereof to make a terminal report
and maintain records, or from its liability for payment of royalties on
Licensed Products sold or otherwise disposed of hereunder prior to the date of
such termination or expiration, or for payment of annual minimum royalties due,
and shall not prejudice the right of Licensor to recover any royalty or other
sums or consideration due or accrued at the time of such termination or
expiration and shall not prejudice any cause of action or claim of Licensor
accrued on account of any breach or default by Licensee.

     (e)     Any termination or expiration of this Agreement shall not prejudice
the right of Licensor to conduct a final audit of the records of Licensee in
accordance with the provisions of Article VII hereof.

XIII — ADVERTISING

     Neither the granting of the license herein granted by Licensor nor the
acceptance of the license fee or royalties hereunder by Licensor shall
constitute Licensor’s approval of, or acquiescence in, advertising or other
business practices of Licensee or Licensee’s sublicensees, nor an approval of
or acquiescence in any use of the corporate name of Licensor, or any use of the
name Brookhaven National Laboratory, or any use of the name(s) of the inventors
of the Patent Rights licensed, or of the names of any agencies of the
U.S. Government, in connection with the manufacture, advertising, use,
sale or sublicensing of Licensed Products, and Licensor hereby expressly
reserves all rights of actions with respect thereto.

XIV — NOTICES

     (a)     Any notice pursuant to this Agreement shall be sufficiently made or
given on the date of

Page 9 of 12

 

mailing if sent to a party by certified mail, postage
prepaid, addressed to it at its address below:

     For Licensor:

	 	Margaret C. Bogosian

Manager

Office of Industrial Partnerships and Intellectual Property

Brookhaven National Laboratory

Building No. 475D

P.O. Box 5000

Upton, New York 11973-5000

Tel 631-344-7338

Fax 631-344-3729

     For Licensee:

	 	Sam Reiber

UTEK Corporation

202 South Wheeler Street

Plant City, Florida 33563

Tel 813-754-4330

Fax 813-754-2383

 

	 	Cc:

 

	 	Greg Halpern

Circle Group Holdings, Inc.

1011 Campus Drive

Mundelein, Illinois 60060

Tel: 847-549-6002

     Alternatively, such notices may be delivered to such other address or
addresses as either Licensor or Licensee, respectively, may later establish by
written notice to the other.

Page 10 of 12

 

     (b)     Any payments due from Licensee to Licensor hereunder shall be made as
follows:

	 	 	 
	CHECK PAYABLE TO:	 	
Brookhaven Science Associates, LLC

	 
	CHECK MAILED TO:	 	
Margaret C. Bogosian

Manager

Office of Industrial Partnerships and Intellectual Property

Brookhaven National Laboratory

Bldg. 475D, P.O. Box 5000

Upton, NY 11973-5000

XV — APPLICABLE LAW

     This Agreement shall be construed, interpreted and applied in accordance
with the laws of the United States and of the State of New York.

XVI – LICENSEE’S DILIGENCE

Licensee agrees to use commercially reasonable efforts to promote the
development and marketing of Licensed Products.

XVII — PREFERENCE FOR UNITED STATES INDUSTRY

     Consistent with the provisions of 35 USC 204, Licensee agrees that any
products embodying technology covered by the Patent Rights or produced through
the use of technology covered by the Patent Rights that are sold in the United
States, will be substantially manufactured in the United States.

XVIII — ENTIRE UNDERSTANDING

     This Agreement constitutes the entire understanding between the parties
hereto with respect to the subject matter hereof, and any modification of this
Agreement shall be in writing and shall be signed by a duly authorized
representative of each party. There are no understandings, representations or
warranties with respect to the subject matter hereof, except as herein
expressly set forth, and no rights are granted hereunder except as expressly
set forth herein.

Page 11 of 12

 

		
	 	     The parties hereto have duly executed this Agreement.

LICENSOR:

		
	 	     BROOKHAVEN SCIENCE ASSOCIATES, LLC

By: /s/ Margaret Bogosian

Name: Margaret Bogosian

Title: Patent Council

Date: March 26, 2003

LICENSEE:

		
	 	     UTEK Corporation

By: /s/ Sam Reiber

Name: Sam Reiber

Title: Vice President

Date: March 26, 2003

Page 12 of 12<PAGE>
                                                                  EXHIBIT 10.12

                 AMENDMENT NO. 5 TO REVOLVING CREDIT AGREEMENT

                            Dated as of May 14, 2003

         This AMENDMENT NO. 5 TO REVOLVING CREDIT AGREEMENT, dated as of May
14, 2003 (this "Amendment"), amends that certain Revolving Credit Agreement,
dated as of December 22, 1997 (as amended and in effect from time to time, the
"Credit Agreement"), by and among PERKINS FAMILY RESTAURANTS, L.P., a Delaware
limited partnership ("Perkins"), THE RESTAURANT COMPANY, a Delaware corporation
("TRC"), PERKINS RESTAURANTS, INC., a Minnesota corporation ("PRI"), and
PERKINS MANAGEMENT COMPANY, INC., a Delaware corporation ("PMC"), and PERKINS
FINANCE CORP., a Delaware corporation (together with TRC, PRI and PMC, the
"Original Guarantors"), FLEET NATIONAL BANK (f/k/a BankBoston, N.A.), a
national banking association and the other lending institutions listed on
Schedule 1 thereto (the "Banks"), FLEET NATIONAL BANK (f/k/a BankBoston, N.A.),
as agent and administrative agent for the Banks (the "Agent"), and BANK OF
AMERICA, N.A. (f/k/a Nationsbank, N.A.), as Syndication Agent (the "Syndication
Agent"). All capitalized terms used herein without definitions shall have the
meanings given such terms in the Credit Agreement.

         WHEREAS, pursuant to the Joinder and Amendment No. 2, dated as of
December 20, 1999, by and among Perkins, the Original Guarantors, the Banks,
the Agent and the Syndication Agent, TRC joined the Credit Agreement and the
Loan Documents and agreed to become a Borrower under the Credit Agreement and
to comply with and be bound by all of the terms, conditions and covenants of
the Credit Agreement and Loan Documents applicable to it as a Borrower;

         WHEREAS, as of the Merger Date, Perkins, PRI and PMC merged with and
into TRC such that TRC became the sole Borrower under the Credit Agreement (TRC
is hereinafter referred to as the "Borrower");

         WHEREAS, pursuant to a Guaranty, dated as of December 20, 1999, by The
Restaurant Holding Corporation ("TRHC") in favor of the Agent and the Banks,
TRHC has guaranteed all of the Borrower's obligations to the Banks and the
Agent under or in respect of the Credit Agreement and the other Loan Documents
and became a Guarantor under the Credit Agreement;

         WHEREAS, pursuant to a Guaranty, dated as of September 30, 2000, by
The Restaurant Company of Minnesota ("TRCM") in favor of the Agent and the
Banks, TRCM has guaranteed all of the Borrower's obligations to the Banks and
the Agent under or in respect of the Credit Agreement and the other Loan
Documents and became a Guarantor under the Credit Agreement;

         WHEREAS, pursuant to a Guaranty, dated as of September 30, 2000, by
TRC Realty LLC in favor of the Agent and the Banks, TRC Realty LLC has
guaranteed all of the Borrower's obligations to the Banks and the Agent under
or in respect of the Credit Agreement and the other Loan Documents and became a
Guarantor under the Credit Agreement;

<PAGE>

                                      -2-

         WHEREAS, the Borrower has requested, among other things, that the
Banks and the Agent agree to waive any Event of Default resulting from the
Borrower's failure to comply with the covenant set forth in ss.11.4 of the
Credit Agreement (as in effect immediately prior to giving effect to this
Amendment) for the fiscal quarter ended April 20, 2003;

         WHEREAS, the Banks and the Agent are willing, subject to the terms and
conditions set forth herein, to, among other things, waive any Event of Default
resulting from the Borrower's failure to comply with the covenant set forth in
ss.11.4 of the Credit Agreement (as in effect immediately prior to giving
effect to this Amendment) for the fiscal quarter ended April 20, 2003; and

         WHEREAS, the parties have agreed to amend the Credit Agreement as
provided herein;

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

         SS.1.    AMENDMENTS TO CREDIT AGREEMENT.

         SS.1.1.  DEFINITIONS. Section 1.1 of the Credit Agreement is hereby
amended as follows:

         (a)      The definition of "Applicable Margin" set forth in ss.1.1 of
the Credit Agreement is hereby amended by deleting the table set forth in such
definition and substituting in lieu thereof the following table:

<TABLE>
<CAPTION>
                  -----------------------------------------------------------------------------------------------
                                                                 Base Rate            Eurodollar Rate Loans
                        Level             Leverage Ratio           Loans              and Letters of Credit
                  -----------------------------------------------------------------------------------------------
                        <S>               <C>                   <C>                   <C>

                  -----------------------------------------------------------------------------------------------
                          I                  <2.75:1               0.50%                      2.50%
                  -----------------------------------------------------------------------------------------------

                  -----------------------------------------------------------------------------------------------
                          II               >2.75:1 and             1.00%                      3.00%
                                           -
                                             <3.50:1
                  -----------------------------------------------------------------------------------------------

                  -----------------------------------------------------------------------------------------------
                         III               >3.50:1 and             1.50%                      3.50%
                                           -
                                             <3.75:1
                  -----------------------------------------------------------------------------------------------

                  -----------------------------------------------------------------------------------------------
                          IV                 >3.75:1               1.75%                      3.75%
                                             -
                  -----------------------------------------------------------------------------------------------
</TABLE>

         (b)      The definition of "Consolidated EBITDA" set forth in ss.1.1
of the Credit Agreement is hereby amended and restated in its entirety to read
as follows:

                  "Consolidated EBITDA. For any period, the sum of (a) the
         Consolidated Net Income of the Borrower and its Subsidiaries for such
         period, plus (b) income of a non-wholly-owned Subsidiary of the
         Borrower which is properly attributable to minority interest and which
         has been deducted in the calculation of Consolidated Net Income but
         which has not been distributed by such Subsidiary,

<PAGE>

                                      -3-

         plus (c) Consolidated Total Interest Expense for such period, plus (d)
         to the extent deducted in the calculation of Consolidated Net Income,
         income tax expense for such period, plus (e) to the extent deducted in
         the calculation of Consolidated Net Income, depreciation and
         amortization for such period, plus (f) to the extent deducted in the
         calculation of Consolidated Net Income and without duplication, other
         non-cash charges of the Borrower and its Subsidiaries for such period,
         plus (g) to the extent deducted in the calculation of Consolidated Net
         Income and without duplication, nonrecurring noncapitalized
         transaction expenses relating to the Repurchase and the transactions
         contemplated hereby, plus (h) without duplication, to the extent
         deducted in the calculation of Consolidated Net Income for such
         period, and only to the extent such interest is not paid or payable in
         cash during such period, interest on the Discount Notes for such
         period, plus (i) without duplication, to the extent deducted in the
         calculation of Consolidated Net Income for such period, for purposes
         of calculating the financial covenants set forth in ss.11 hereof, up
         to (but not exceeding) one million dollars ($1,000,000) in the
         aggregate of the Borrower's termination costs in connection with the
         Borrower's termination of the airplane lease, dated November 9, 1999,
         between TRC Realty LLC and General Electric Capital Corporation."

         (c)      The definition of "Revolving Credit Commitment" set forth in
ss.1.1 of the Credit Agreement is hereby amended and restated in its entirety
to read as follows:

                  "Revolving Credit Commitment. With respect to each Bank, the
         amount set forth on Schedule 1 hereto as the amount of such Bank's
         commitment to make Revolving Credit Loans to the Borrower, as the same
         may be increased pursuant to ss.21.10 or reduced from time to time; or
         if such commitment is terminated pursuant to the provisions hereof,
         zero."

         (d)      The following new definitions are added in alphabetical
order:

         "Acceding Lender. See ss.21.10."

         "Instrument of Accession. See ss.21.10."

         SS.1.2.  COMMITMENT FEE. The Credit Agreement is hereby further
amended by deleting ss.2.2 in its entirety and substituting in lieu thereof the
following new ss.2.2:

                  "2.2.    COMMITMENT FEE. The Borrower agrees to pay to the
         Agent for the accounts of the Banks in accordance with their
         respective Revolving Credit Commitment Percentages a commitment fee at
         an annual rate equal to (a) if the Applicable Margin corresponds to
         Level I or II in the table set forth in the definition of "Applicable
         Margin", one-half of one percent (0.50%), (b) if the Applicable Margin
         corresponds to Level III in the table set forth in the definition of
         "Applicable Margin", three-quarters of one percent (0.75%) and (c) if
         the Applicable Margin corresponds to Level IV in the table set forth
         in the definition of "Applicable Margin", one and one-quarter of one
         percent (1.25%), in each case on the average daily amount during each
         calendar quarter or portion thereof from the Closing Date

<PAGE>

                                      -4-

         to the Revolving Credit Loan Maturity Date by which the Total
         Revolving Credit Commitment exceeds the sum of (i) the Outstanding
         amount of Revolving Credit Loans, plus (ii) the Maximum Drawing
         Amount, plus (iii) all Unpaid Reimbursement Obligations during such
         calendar quarter. The commitment fee shall be payable quarterly in
         arrears on the last day of each calendar quarter for the calendar
         quarter then ending, with a final payment on the Revolving Credit Loan
         Maturity Date or any earlier date on which the Revolving Credit
         Commitments shall terminate."

         SS.1.3.  LEVERAGE RATIO. The Credit Agreement is hereby further
amended by deleting the table set forth in ss.11.1 thereof and substituting in
lieu thereof the following table:

<TABLE>
<CAPTION>
                   -------------------------------------------------------------------------------------------
                                      Period                                         Ratio
                   -------------------------------------------------------------------------------------------
                              <S>                                                   <C>

                   -------------------------------------------------------------------------------------------
                                12/31/99 - 10/7/01                                  3.75:1
                   -------------------------------------------------------------------------------------------
                                10/8/01 -- 4/21/02                                  4.50:1
                   -------------------------------------------------------------------------------------------
                                 4/22/02 - 7/14/02                                  4.40:1
                   -------------------------------------------------------------------------------------------
                                7/15/02 -- 10/6/02                                  4.30:1
                   -------------------------------------------------------------------------------------------
                                10/7/02 -- 12/29/02                                 4.20:1
                   -------------------------------------------------------------------------------------------
                                12/30/02 - 12/28/03                                 4.00:1
                   -------------------------------------------------------------------------------------------
                                12/29/03 -- 4/18/04                                 3.50:1
                   -------------------------------------------------------------------------------------------
                              4/19/04 and thereafter                                3.25:1
                   -------------------------------------------------------------------------------------------
</TABLE>

         SS.1.4.  INTEREST COVERAGE RATIO. The Credit Agreement is hereby
further amended by deleting the table set forth in ss.11.4 thereof and
substituting in lieu thereof the following table:

<TABLE>
<CAPTION>
                   -------------------------------------------------------------------------------------------
                                      Period                                         Ratio
                   -------------------------------------------------------------------------------------------
                              <S>                                                   <C>

                   -------------------------------------------------------------------------------------------
                                12/31/99 - 12/30/01                                 2.50:1
                   -------------------------------------------------------------------------------------------
                                12/31/01 - 12/29/02                                 2.25:1
                   -------------------------------------------------------------------------------------------
                                12/30/02 - 12/28/03                                 2.25:1
                   -------------------------------------------------------------------------------------------
                              12/29/03 and thereafter                               2.75:1
                   -------------------------------------------------------------------------------------------
</TABLE>

         SS.1.5.  CAPITAL EXPENDITURES. The Credit Agreement is hereby further
amended by deleting ss.11.5 thereof and substituting in lieu thereof the
following new ss.11.5:

                  "11.5.   CAPITAL EXPENDITURES. The Borrower will not make,
         and will not permit any of its Subsidiaries to make, Capital
         Expenditures during any fiscal year that exceed, in the aggregate, an
         amount equal to the lesser of (a) Consolidated EBITDA for such fiscal
         year minus Consolidated Total Interest Expense for such fiscal year
         and (b) (i) for the fiscal year ending December 29, 2002, $16,000,000,
         (ii) for the fiscal year ending December 28, 2003, $13,000,000, and
         (iii) for the fiscal year ending December 26, 2004, $18,000,000.
         Notwithstanding the foregoing and subject to the proviso set forth at
         the end of this sentence, for purposes of determining compliance with
         this ss.11.5 for any fiscal year, "Capital Expenditures" shall not
         include Capital Expenditures made during such fiscal year with the

<PAGE>

                                      -5-

         proceeds of any asset sale within one hundred eighty (180) days from
         the date of such asset sale; provided that the aggregate amount of
         Capital Expenditures so excluded shall not exceed (A) $10,000,000 for
         the period from the Closing Date to the Revolving Credit Loan Maturity
         Date and (B) $3,000,000 in any fiscal year."

         SS.1.6.  ACCEDING LENDERS. The Credit Agreement is hereby further
amended by adding the following new ss.21.10 in the correct numerical sequence
thereof and by adding Exhibit E thereto in the form of Exhibit A hereto:

                  "21.10.  ACCEDING LENDERS. Except as otherwise provided
         herein and only if the Leverage Ratio for each of the previous two
         consecutive fiscal quarters is less than 3.00:1, one or more
         commercial banks, other financial institutions or other Persons
         approved by the Agent (each such commercial bank, other financial
         institution or other Person, an "Acceding Lender") may, at the request
         of the Borrower and with the consent of the Agent, become a party to
         this Credit Agreement by entering into an Instrument of Accession in
         substantially the form of Exhibit E hereto (an "Instrument of
         Accession") with the Borrower, the Guarantors and the Agent and
         assuming thereunder Revolving Credit Commitment(s) in an amount to be
         agreed upon by the Borrower, the Guarantors, such Acceding Lender and
         the Agent, to make Revolving Credit Loans and participate in the risk
         relating to Letters of Credit, as the case may be, pursuant to the
         terms hereof, and the Total Revolving Credit Commitment shall
         thereupon be increased by the amount of such Acceding Lender's
         Revolving Credit Commitment; provided that:

                           (i) the Agent shall have given its prior written
                  consent to such accession in its capacity as Agent, such
                  consent not to be unreasonably withheld; and

                           (ii) in no event shall the Total Revolving Credit
                  Commitment be increased under any one or more of such
                  Instruments of Accession so as to exceed, in the aggregate,
                  $35,000,000 minus any previously effected reduction of the
                  Total Revolving Credit Commitment pursuant to ss.2.3 made
                  after May 14, 2003. On the effective date specified in any
                  Instrument of Accession, Schedule 1 hereto shall be deemed to
                  be amended to reflect (A) the name, address, Revolving Credit
                  Commitment, and Revolving Credit Commitment Percentage of
                  such Acceding Lender, (B) the Total Revolving Credit
                  Commitment as increased by such Acceding Lender's Revolving
                  Credit Commitments, and (C) the changes to the other Bank's
                  respective Revolving Credit Commitment Percentage and any
                  changes to the other Bank's respective Revolving Credit
                  Commitments (in the event such Bank is also the Acceding
                  Lender) resulting from such assumption and such increased
                  Total Revolving Credit Commitment."

         SS.1.7.  SCHEDULE 1. At the Borrower's request in order to reduce the
Total Revolving Credit Commitment as provided in such amended Schedule 1, the
Credit Agreement is hereby further amended by deleting Schedule 1 attached
thereto and substituting in lieu thereof the Schedule 1 attached hereto.

<PAGE>

                                      -6-

         SS.2.    CONFIRMATORY WAIVER. (a) Subject to the satisfaction of the
conditions set forth in ss.5, the Agent and the Banks confirm that they will
have waived, by the consequent amendment to ss.11.4 of the Credit Agreement as
contemplated hereby, any Event of Default resulting from the Borrower's failure
to comply with the covenant set forth in ss.11.4 of the Credit Agreement (as in
effect immediately prior to giving effect to this Amendment) for the fiscal
quarter ended April 20, 2003.

         (b)      The waiver referred to in ss.2(a) shall not extend to (i) any
failure of the Borrower to comply with ss.11.4 of the Credit Agreement after
giving effect to this Amendment and (ii) any other Default or Event of Default
or other departure or deviation from the terms and conditions of the Credit
Agreement not expressly referred to in ss.2(a).

         SS.3.    REPRESENTATIONS AND WARRANTIES. The Borrower and each of the
Guarantors jointly and severally represent and warrant to the Banks and the
Agent as follows:

         (a)      Representations and Warranties in Credit Agreement. The
representations and warranties of the Borrower and the Guarantors contained in
the Credit Agreement, each as amended by this Amendment, (i) were true and
correct in all material respects when made, and (ii) except to the extent such
representations and warranties by their terms are made solely as of a prior
date, continue to be true and correct in all material respects on the date
hereof.

         (b)      Authority, Etc. The execution and delivery by the Borrower
and the each of the Guarantors of this Amendment and the performance by the
Borrower and each of the Guarantors of all of their agreements and obligations
under this Amendment and the Credit Agreement as amended hereby (i) are within
the corporate authority of the Borrower and each of the Guarantors, (ii) have
been duly authorized by all necessary corporate proceedings by the Borrower and
each of the Guarantors, (iii) do not conflict with or result in any breach or
contravention of any provision of law, statute, rule or regulation to which the
Borrower or any of the Guarantors is subject or any judgment, order, writ,
injunction, license or permit applicable to the Borrower or any of the
Guarantors, and (iv) do not conflict with any provision of any corporate
charter or by-laws of, or any agreement or other instrument binding upon, the
Borrower or any Guarantor.

         (c)      Enforceability of Obligations. This Amendment, and the Credit
Agreement as amended hereby, constitute the legal, valid and binding
obligations of the Borrower and each of the Guarantors enforceable against each
such Person in accordance with their respective terms. Immediately prior to and
immediately after and after giving effect to this Amendment, no Default or
Event of Default exists under the Credit Agreement or any other Loan Document.

         SS.4.    AFFIRMATION OF BORROWER AND THE GUARANTORS.

         (a)      The Borrower hereby affirms its absolute and unconditional
promise to pay to each Bank and the Agent the Obligations due under the Notes,
the Credit Agreement as amended hereby, and the other Loan Documents, at the
times and in the amounts provided for therein. The Borrower confirms and agrees
that (i) the Obligations of the Borrower to

<PAGE>

                                      -7-

the Banks and the Agent under the Credit Agreement as amended hereby are
secured by and entitled to the benefits of the Security Documents and (ii) all
references to the term "Credit Agreement" in the Security Documents shall
hereafter refer to the Credit Agreement as amended hereby.

         (b)      Each of the Guarantors hereby acknowledges that it has read
and is aware of the provisions of this Amendment. Each of the Guarantors hereby
reaffirms its absolute and unconditional guaranty of the Borrower's payment and
performance of the Obligations to the Banks and the Agent under the Credit
Agreement, as amended hereby. Each of the Guarantors hereby confirms and agrees
that the Guaranty shall hereafter constitute a guaranty of the Obligations
under the Credit Agreement as amended hereby.

         SS.5.    CONDITIONS TO EFFECTIVENESS. This Amendment shall be
effective as of the date hereof upon the satisfaction of each of the following
conditions precedent:

         (a)      The Agent shall have received an original counterpart
signature to this Amendment, duly executed and delivered by the Borrower, the
Guarantors, the Banks and the Agent; and

         (b)      The Borrower shall have paid to the Agent, for the pro rata
account of each Bank that executes and delivers a copy of this Amendment to the
Agent on or prior to 5:00 p.m. (Eastern Standard Time) on May 14, 2003, a
non-refundable amendment fee in an amount equal to thirty-seven and one-half
hundredths of one percent (0.375%) on such Bank's Revolving Credit Commitment
(after giving effect to this Amendment).

         SS.6.    MISCELLANEOUS PROVISIONS. (a) Except as otherwise expressly
provided by this Amendment, all of the terms, conditions and provisions of the
Credit Agreement shall remain the same. It is declared and agreed by each of
the parties hereto that the Credit Agreement, as amended hereby, shall continue
in full force and effect, and that this Amendment and the Credit Agreement
shall be read and construed as one instrument. Nothing contained in this
Amendment (i) shall be construed to imply a willingness on the part of the
Banks or the Agent to grant any similar or other future amendment of any of the
terms and conditions of the Credit Agreement or the other Loan Documents and
(ii) shall in any way prejudice, impair or effect any rights or remedies of the
Banks and the Agent under the Credit Agreement or the other Loan Documents.

         (b)      THIS AMENDMENT IS INTENDED TO TAKE EFFECT AS AN AGREEMENT
UNDER SEAL AND SHALL BE CONSTRUED ACCORDING TO AND GOVERNED BY THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS.

         (c)      This Amendment may be executed in any number of counterparts,
but all such counterparts shall together constitute but one instrument. In
making proof of this Amendment it shall not be necessary to produce or account
for more than one counterpart signed by each party hereto by and against which
enforcement hereof is sought.

         (d)      Headings or captions used in this Amendment are for
convenience of reference only and shall not define or limit the provisions
hereof.

<PAGE>

                                      -8-

         (e)      The Borrower hereby agrees to pay to the Agent, on demand by
the Agent, all reasonable out-of-pocket costs and expenses incurred or
sustained by the Agent in connection with the preparation of this Amendment
(including reasonable legal fees and expenses).

                            [SIGNATURE PAGES FOLLOW]

<PAGE>

                                      -9-

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
an agreement under seal as of the date first written above.

                                     THE RESTAURANT COMPANY

                                     By: /s/ Michael P. Donahoe
                                        --------------------------------------
                                         Name: MICHAEL P. DONAHOE
                                         Title: EXECUTIVE VICE PRESIDENT &
                                                CHIEF FINANCIAL OFFICER

                                     THE RESTAURANT HOLDING
                                      CORPORATION, as Guarantor

                                     By: /s/ Michael P. Donahoe
                                        --------------------------------------
                                         Name: MICHAEL P. DONAHOE
                                         Title: EXECUTIVE VICE PRESIDENT &
                                                CHIEF FINANCIAL OFFICER

                                     PERKINS FINANCE CORP., as Guarantor

                                     By: /s/ Michael P. Donahoe
                                        --------------------------------------
                                         Name: MICHAEL P. DONAHOE
                                         Title: VICE PRESIDENT & TREASURER

                                     THE RESTAURANT COMPANY OF
                                      MINNESOTA, as Guarantor

                                     By: /s/ Michael P. Donahoe
                                        --------------------------------------
                                         Name: MICHAEL P. DONAHOE
                                         Title: VICE PRESIDENT & TREASURER

                                     TRC REALTY LLC, as Guarantor

                                     By: /s/ Michael P. Donahoe
                                        --------------------------------------
                                         Name: MICHAEL P. DONAHOE
                                         Title: VICE PRESIDENT & TREASURER

<PAGE>

                                     -10-

                                     FLEET NATIONAL BANK (f/k/a BankBoston,
                                      N.A.), individually and as Agent

                                     By: /s/ Robert W. MacElhiney
                                        --------------------------------------
                                         Name: Robert W. MacElhiney
                                         Title: Director

                                     BANK OF AMERICA, N.A. (f/k/a
                                      Nationsbank, N.A.), individually and as
                                      Syndication Agent

                                     By: /s/ Chitt Swamidasan
                                        --------------------------------------
                                         Name: Chitt Swamidasan
                                         Title: Principal

                                     AMSOUTH BANK (f/k/a First American
                                      National Bank)

                                     By: /s/ Elizabeth H. Vaughn
                                        --------------------------------------
                                         Name: Elizabeth H. Vaughn
                                         Title: Vice President

                                     SUNTRUST BANK

                                     By: /s/ Emily Y. Weinstein
                                        --------------------------------------
                                         Name: Emily Y. Weinstein
                                         Title: Portfolio Manager

<PAGE>

                                                                     SCHEDULE 1

<TABLE>
<CAPTION>
----------------------------------------------- --------------------------------- -----------------------------
                                                                                        REVOLVING CREDIT
                                                       REVOLVING CREDIT                    COMMITMENT
                    BANK                                  COMMITMENT                       PERCENTAGE
---------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                              <C>

---------------------------------------------------------------------------------------------------------------
FLEET NATIONAL BANK                                        $9,000,000                         36%
100 Federal Street
Boston, MA 02110
Tel:    617.434.7068
Fax:    617.434.0637
Attn: Robert W. MacElhiney
---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------
BANK OF AMERICA, N.A.                                      $8,500,000                         34%
100 North Tryon Street
Charlotte, NC 28255
Tel:    704.386.6642
Fax:    704.388.8268
Attn: Chitt Swamidasan, CFA
---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------
SUNTRUST BANK                                              $4,500,000                         18%
303 Peachtree, N.E.
Atlanta, GA  30308
Tel:    404.588.7715
Fax:    404.588.7189
Attn: Charles Johnson
---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------
AMSOUTH BANK                                               $3,000,000                         12%
6000 Poplar Avenue, Suite 300
Memphis, TN   38119
Tel:    901.762.5671
Fax:    901.762.5665
Attn: Elizabeth H. Vaughn
---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------
TOTAL                                                     $25,000,000                         100%
---------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

           EXHIBIT A TO AMENDMENT NO. 5 TO REVOLVING CREDIT AGREEMENT

                                                                      EXHIBIT E

                                    FORM OF
                            INSTRUMENT OF ACCESSION

                        Dated as of [________ __, 200_]

         Reference is hereby made to the Revolving Credit Agreement, dated as
of December 22, 1997 (as amended, modified, supplemented or restated and in
effect from time to time, the "Credit Agreement"), by and among PERKINS FAMILY
RESTAURANTS, L.P., a Delaware limited partnership, THE RESTAURANT COMPANY, a
Delaware corporation ("Borrower"), PERKINS RESTAURANTS, INC., a Minnesota
corporation, and PERKINS MANAGEMENT COMPANY, INC., a Delaware corporation, and
PERKINS FINANCE CORP., a Delaware corporation, FLEET NATIONAL BANK (f/k/a
BankBoston, N.A.), a national banking association and the other lending
institutions listed on Schedule 1 thereto (the "Banks"), FLEET NATIONAL BANK
(f/k/a BankBoston, N.A.), as agent and administrative agent for the Banks (the
"Agent"), and BANK OF AMERICA, N.A. (f/k/a Nationsbank, N.A.), as Syndication
Agent. Capitalized terms used herein and not otherwise defined shall have the
meanings assigned to such terms in the Credit Agreement.

         Pursuant to the terms of Section 21.10 of the Credit Agreement, the
Borrower, the Guarantors, the Agent and [ ] (the "Acceding Lender") hereby
agree as follows:

         1.       Subject to the terms and conditions of this Accession
Agreement, the Acceding Lender hereby agrees to assume, without recourse to the
Banks or the Agent, on the Effective Date (as defined below), a Revolving
Credit Commitment of [$____________], in accordance with the terms and
conditions set forth in the Credit Agreement. Upon such assumption, the Total
Revolving Credit Commitment shall be automatically increased by the amount of
such assumption. The Acceding Lender hereby agrees to be bound by, and hereby
requests the agreement of the Borrower, the Guarantors and the Agent that the
Acceding Lender shall be entitled to the benefits of, all of the terms,
conditions and provisions of the Credit Agreement as if the Acceding Lender had
been one of the lending institutions originally executing the Credit Agreement
as a Bank; provided that nothing herein shall be construed as making the
Acceding Lender liable to the Borrower or the Banks in respect of any acts or
omissions of any party to the Credit Agreement or in respect of any other event
occurring prior to the Effective Date (as defined below) of this Accession
Agreement.

         2.       The Acceding Lender (a) represents and warrants that (i) it
is duly and legally authorized to enter into this Accession Agreement, (ii) the
execution, delivery and performance of this Accession Agreement do not conflict
with any provision of law or of the charter or by-laws of the Acceding Lender,
or of any agreement binding on the

<PAGE>

                                      -2-

Acceding Lender, (iii) all acts, conditions and things required to be done and
performed and to have occurred prior to the execution, delivery and performance
of this Accession Agreement, and to render the same the legal, valid and
binding obligation of the Acceding Lender, enforceable against it in accordance
with its terms, have been done and performed and have occurred in due and
strict compliance with all applicable laws; (b) confirms that it has received a
copy of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to ss.ss.8.4 and 9.4 thereof and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Accession Agreement; (c) agrees that
it will, independently and without reliance upon the Banks or the Agent and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Agreement; (d) represents and warrants that it is eligible to
become a party to this Accession Agreement under the terms and conditions of
the Credit Agreement; (e) appoints and authorizes the Agent to take such action
as Agent on its behalf and to exercise such powers under the Credit Agreement
and the other Loan Documents as are delegated to the Agent by the terms
thereof, together with such powers as are reasonably incidental thereto; (f)
agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement are required to be
performed by it as a Bank; and acknowledges that it has made arrangements with
the Agent satisfactory to the Acceding Lender with respect to its pro rata
share of Letter of Credit Fees in respect of outstanding Letters of Credit.

         3.       The Acceding Lender hereby requests that the Borrower issue a
new Revolving Credit Note payable to the order of the Acceding Lender in the
principal amount of [$___________]. In the event the Acceding Lender is also a
Bank party to the Credit Agreement immediately prior to the Effective Date (as
defined below) of this Accession Agreement, that such Acceding Lender agrees to
deliver to the Borrower, as soon as reasonably practicable after the Effective
Date (as defined below), the prior Revolving Credit Note held by it prior to
the issuance of the new Revolving Credit Note, marked "Cancelled".

         4.       The effective date for this Accession Agreement shall be
[________ __, 200_] (the "Effective Date"). Following the execution of this
Accession Agreement by the Borrower, the Guarantors and the Acceding Lender, it
will be delivered to the Agent for acceptance. Upon acceptance by the Agent,
Schedule 1 to the Credit Agreement shall thereupon be replaced as of the
Effective Date by the Schedule 1 annexed hereto. The Agent shall thereafter
notify the other Banks of the revised Schedule 1 and the arrangements proposed
to ensure that the outstanding amount of Loans made by each Bank will
correspond to its respective Revolving Credit Commitment Percentage after
giving affect to the accession contemplated hereby.

         5.       Upon such acceptance, from and after the Effective Date, the
Borrower shall make all payments in respect of the Acceding Lender's Revolving
Credit Commitment (including payments of principal, interest, fees and other
amounts) to the Agent for the account of the Acceding Lender.

<PAGE>

                                      -3-

         6.       THIS ACCESSION AGREEMENT SHALL FOR ALL PURPOSES BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF
MASSACHUSETTS (WITHOUT REFERENCE TO CONFLICTS OF LAW).

         7.       This Accession Agreement may be executed in any number of
counterparts which shall together constitute but one and the same agreement.

<PAGE>

                                      -4-

         IN WITNESS WHEREOF, intending to be legally bound, each of the
undersigned has caused this Accession Agreement to be executed on its behalf by
its officer thereunto duly authorized, to take effect as of the date first
above written.

                                     THE RESTAURANT COMPANY, as
                                     Borrower

                                     By:
                                        ---------------------------------------
                                         Name
                                         Title:

                                     THE RESTAURANT HOLDING
                                      CORPORATION, as Guarantor

                                     By:
                                        ---------------------------------------
                                         Name:
                                         Title:

                                     PERKINS FINANCE CORP., as Guarantor

                                     By:
                                        ---------------------------------------
                                         Name:
                                         Title:

                                     THE RESTAURANT COMPANY OF
                                      MINNESOTA, as Guarantor

                                     By:
                                        ---------------------------------------
                                         Name:
                                         Title:

                                     TRC REALTY LLC, as Guarantor

                                     By:
                                        ---------------------------------------
                                         Name:
                                         Title:

<PAGE>

                                      -5-

                                     FLEET NATIONAL BANK (f/k/a
                                     BankBoston, N.A.), as Agent

                                     By:
                                        --------------------------------------
                                         Name
                                         Title:

                                     [INSERT NAME OF ACCEDING LENDER]

                                     By:
                                        --------------------------------------
                                         Name
                                         Title:

<PAGE>

                     SCHEDULE 1 TO INSTRUMENT OF ACCESSION

                             BANKS AND COMMITMENTS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]