Document:

SECOND SUPPLEMENTAL INDENTURE

        SECOND SUPPLEMENTAL INDENTURE, dated as of August 29, 2000 (the
"Second Supplemental Indenture"), between and among SHONEY'S, INC., a
corporation duly organized and existing under the laws of the State of
Tennessee (the "Company"), TPI RESTAURANTS, INC., a corporation duly
organized and existing under the laws of the State of Tennessee (the
"Guarantor"), and THE BANK OF NEW YORK, a New York banking corporation, as
trustee (the "Trustee")

                         W I T N E S S E T H:

        WHEREAS, TPI Enterprises, Inc., a corporation duly organized under
the laws of the State of New Jersey ("Enterprises"), the Guarantor and the
Trustee executed that certain Indenture dated as of July 15, 1992 (the
"Original Indenture"), providing for the issuance of certain subordinated and
unsecured debentures in the principal amount of up to Fifty-One Million,
Seven Hundred Fifty Thousand and 00/100 Dollars ($51,750,000), which are
designated the 8-1/4% Convertible Subordinated Debentures Due 2002 (the
"Securities"), of which an aggregate principal amount of Fifty-One Million,
Five Hundred Sixty-Three Thousand and 00/100 Dollars ($51,563,000) are
currently issued and Outstanding;

        WHEREAS, the Securities are fully guaranteed as to the payment of
principal and interest, but on a subordinated basis, by the Guarantor;

        WHEREAS, in connection with the acquisition by the Company of the
assets of Enterprises substantially as an entirety, the Company assumed the
obligations of Enterprises under the Indenture and with respect to the
Securities pursuant to that certain First Supplemental Indenture dated as of
September 9, 1996 (the "First Supplemental Indenture," and together with the
Original Indenture, the "Existing Indenture"), between and among Enterprises,
the Guarantor, the Trustee and the Company, pursuant to which the Company was
substituted for Enterprises under the Indenture and Enterprises was relieved
of all obligations and covenants under the Indenture and the Securities;

        WHEREAS, the Company is offering to purchase for cash, on the terms
and subject to the conditions set forth in the Purchase Offer and Consent
Solicitation Statement dated July 18, 2000 (as it may be supplemented or
amended from time to time, the "Purchase Offer"), and the related Letter of
Transmittal and Consent (as it may be supplemented or amended from time to
time, the "Letter of Transmittal and Consent," and together with the Purchase
Offer, the "Company Tender Offer"), all of the Outstanding Securities;

        WHEREAS, Section 1002 of the Existing Indenture provides that, when
authorized by a Board Resolution, indentures supplemental thereto may be
executed and delivered by the Company, the Guarantor and the Trustee for the
purpose of amending the Indenture with the consent of the Holders of not less
than a majority in principal amount of the Securities at the time Outstanding
(or in certain cases with the consent of each Holder of the Securities
affected thereby);

        WHEREAS, the Holders of a majority of the principal amount of the
Securities at this time Outstanding have delivered to The Bank of New York as
depositary (the "Depositary") for the Company in the Company Tender Offer
Acts evidencing the consents thereof to the amendments to the Existing
Indenture on the terms set forth in this Second Supplemental Indenture;

        WHEREAS, the Depositary has, on behalf of the Company, delivered to
the Trustee Acts evidencing the requisite consents of the Holders of a
majority of the principal amount of the Securities at this time Outstanding
to amend the Existing Indenture on the terms set forth in this Second
Supplemental Indenture;

        WHEREAS, all other acts and proceedings necessary have been done to
make this Second Supplemental Indenture, when executed and delivered by the
Company, the Guarantor and the Trustee, the legal, valid and binding
agreement of the Company and the Guarantor in accordance with its terms.

        NOW, THEREFORE, for good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

        Section 1. Confirmation of the Indenture; Definitions.  Except as
amended and supplemented hereby, the Existing Indenture is hereby confirmed
and reaffirmed in all particulars.  Anything in the Existing Indenture or
herein to the contrary notwithstanding, all recitals, definitions and
provisions contained in this Second Supplemental Indenture shall take
precedence over the recitals, definitions and provisions of the Existing
Indenture to the extent of any conflict between the two.  Unless otherwise
defined herein, terms defined in the Existing Indenture and used herein shall
have the meanings given to them in the Existing Indenture.

        Section 2. Amendment of Article One. (a) From and as of the
Operational Time, Article One of the Indenture shall be amended by deleting
the following defined terms and the definitions thereof:

        "Cash Equivalent"
        "Consent"
        "Consent Payment"
        "EEP"
        "EEP Partnership Interest"
        "Enterprises Guaranty"
        "Existing Subsidiary"
        "FCC Permits"
        "Investment"
        "Maxcell"
        "PP&E Amount"
        "Restaurants Business"
        "Restaurants Notes"
        "Restaurants Notes Indenture"
        "Restricted Payment"
        "Tender Offer"
        "TPI Entertainment"

        (b) From and as of the Operational Time, Article One of the Indenture
shall be amended by deleting the definitions for the following terms and
replacing them with the following definitions:

                "Company" means Shoney's, Inc., provided that if another
        Person is the surviving entity of any merger with the Company,
        thereafter the reference to Shoney's, Inc. in this definition shall
        be deemed to refer to such other Person.

                "Guarantor" means TPI Restaurants, Inc., provided that if
        another Person is the surviving entity of any merger with the
        Guarantor, thereafter the reference to TPI Restaurants, Inc. in this
        definition shall be deemed to refer to such other Person.

                                    2

        Section 3. Amendment of Article Six. From and as of the Operational
Time, Section 601 of the Indenture shall be amended to read in its entirety
as follows:

        "Event of Default," wherever used herein, means any one of the
        following events (whatever the reason for such Event of Default and
        whether it shall be occasioned by the provisions of Article Fourteen
        or be voluntary or involuntary or be effected by operation of law or
        pursuant to any judgment, decree or order of any court or any order,
        rule or regulation of any administrative or governmental body):

                 (1) default in the payment of any interest upon any
            Security when it becomes due and payable, and the continuance
            of such default for a period of 30 days; or

                 (2) default in the payment of the principal of (or
            premium, if any, on) any Security at its Maturity; or

                 (3) default in the payment of the Repurchase Price
            (as defined in Section 1501 in respect of any Security on
            the Repurchase Date (as defined in Section 1501) therefor in
            accordance with the provisions of Article Fifteen; or

                 (4) default in the performance, or breach, of any
            covenant or agreement of the Company or the Guarantor in this
            Indenture (other than a covenant or agreement a default in
            performance or breach of which is specifically addressed
            elsewhere in this Indenture) when such default or breach shall
            have continued for a period of 60 days after there has been
            given, by registered or certified mail, to the Company and the
            Guarantor by the Trustee or to the Company and the Guarantor
            and the Trustee by the Holders of at least 25% in principal
            amount of the Outstanding Securities a written notice specifying
            such default or breach and requiring it to be remedied and
            stating that such notice is a "Notice of Default" hereunder; or

                  (5) "[Intentionally Omitted.]"

                  (6) "[Intentionally Omitted.]"

                  (7) the entry by a court having jurisdiction in the
            premises of (A) a decree or order for relief in respect of
            the Company or any Significant Subsidiary in an involuntary
            case or proceeding under any applicable Federal or State
            bankruptcy, insolvency, reorganization or other similar law
            or (B) a decree or order adjudging the Company or any
            Significant Subsidiary a bankrupt or insolvent, or approving
            as properly filed a petition seeking reorganization,
            arrangement, adjustment or composition of or in respect of
            the Company or any Significant Subsidiary under any
            applicable Federal or State law, or appointing a custodian,
            receiver, liquidator, assignee, trustee, sequestrator or
            other similar official of the Company or any Significant
            Subsidiary, as the case may be, or of any substantial part
            of its property, or ordering the winding up or liquidation
            of its affairs, and the continuance of any such decree or
            order for relief or any such other decree or order unstayed
            and in effect for a period of 60 consecutive days; or

                  (8) the commencement by the Company or any
            Significant Subsidiary of a voluntary case or proceeding
            under any applicable Federal or State bankruptcy,
            insolvency, reorganization or other similar law or of any
            other case or proceeding, to be adjudicated a bankrupt or
            insolvent, or the consent by it to the entry of a decree or
            order for relief in respect of the Company or any
            Significant Subsidiary in an involuntary case or

                                    3

            proceeding under any organization or other similar law or to
            the commencement of any bankruptcy or insolvency case or
            proceeding against the Company or any Significant
            Subsidiary, or the filing by the Company or any Significant
            Subsidiary of a petition or answer or consent seeking
            reorganization or relief under any applicable Federal or
            State law, or the consent by it to the filing of such
            petition or to the appointment of or taking possession by a
            custodian, receiver, liquidator, assignee, trustee,
            sequestrator or other similar official of the Company or any
            Significant Subsidiary, as the case may be, or of any
            substantial part of their property, or the making by the
            Company or any Significant Subsidiary of an assignment for
            the benefit of creditors, or the admission by it in writing
            of its inability to pay its debts generally as they become
            due, or the taking of corporate action by the Company or any
            Subsidiary, as the case may be, in furtherance of such
            action; or

                  (9) the Guarantee shall for any reason (other than
            pursuant to its terms) cease to be in full force and effect.

        Section 4. Amendment of Section 901 of Article Nine. From and as of
the Operational Time, Section 901 of the Indenture shall be amended to read
in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 5. Amendment of Section 902 of Article Nine. From and as of
the Operational Time, Section 902 of the Indenture shall be amended to read
in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 6. Amendment of Section 903 of Article Nine. From and as of
the Operational Time, Section 903 of the Indenture shall be amended to read
in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 7. Amendment of Section 904 of Article Nine. From and as of
the Operational Time, Section 904 of the Indenture shall be amended to read
in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 8. Amendment of Section 1105 of Article Eleven. From and as
of the Operational Time, Section 1105 of the Indenture shall be amended to
read in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 9. Amendment of Section 1106 of Article Eleven. From and as
of the Operational Time, Section 1106 of the Indenture shall be amended to
read in its entirety as follows:

                "[Intentionally Omitted.]"

                                      4

        Section 10. Amendment of Section 1107 of Article Eleven. From and as
of the Operational Time, Section 1107 of the Indenture shall be amended to
read in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 11. Amendment of Section 1108 of Article Eleven. From and as
of the Operational Time, Section 1108 of the Indenture shall be amended to
read in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 12. Amendment of Section 1109 of Article Eleven. From and as
of the Operational Time, Section 1109 of the Indenture shall be amended to
read in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 13. Amendment of Section 1110 of Article Eleven. From and as
of the Operational Time, Section 1110 of the Indenture shall be amended to
read in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 14. Amendment of Section 1111 of Article Eleven. From and as
of the Operational Time, Section 1111 of the Indenture shall be amended to
read in its entirety as follows:

                "[Intentionally Omitted.]"

        Section 15. Conditions to Effectiveness of Second Supplemental
Indenture and to Operation of Amendments Made Hereby.  This Second
Supplemental Indenture shall become effective immediately upon its execution
by the Trustee, the Company and the Guarantor (the "Effective Time"),
provided, however, the amendments effected by Sections 2 through and
including Section 14 of this Second Supplemental Indenture shall only become
operational at such time (the "Operational Time") as the Company gives oral
or written notice to the Depositary of the Company's acceptance for payment
of validly tendered Securities pursuant to the Company Tender Offer.

        Section 16. Severability. In case any provision in this Second
Supplemental Indenture shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not
in any way be effected or impaired thereby.

        Section 17. Counterparts.  This Second Supplemental Indenture may be
executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

                                     5

        Section 18. Governing Law.  This Second Supplemental Indenture shall
be governed by and construed in accordance with the laws of the State of New
York, without regard to principles of conflicts of laws.

        IN WITNESS WHEREOF, the parties hereto have caused this Second
Supplemental Indenture to be duly executed, all as of the date first above
written.

                                        THE COMPANY:

                                        SHONEY'S, INC.
ATTEST:

/s/ Richard D. Schafstall               By: /s/ F.E. McDaniel, Jr.
-------------------------------             ------------------------------

Title:  Secretary                       Title:  Vice President
      -------------------------               ----------------------------

                                        THE GUARANTOR:

                                        TPI RESTAURANTS, INC.
ATTEST:

/s/ Richard D. Schafstall               By: /s/ F.E. McDaniel, Jr.
-------------------------------             -----------------------------

Title:  Assistant Secretary             Title:  President
      -------------------------               ---------------------------

                                        THE TRUSTEE:

                                        THE BANK OF NEW YORK
ATTEST:

/s/                                     By: /s/ Mary LaGumina
-------------------------------            ------------------------------

Title: Vice President                   Title:  Vice President

                                    6FIRST SUPPLEMENTAL INDENTURE

       FIRST SUPPLEMENTAL INDENTURE, dated as of August 29, 2000 (the "First
Supplemental Indenture"), by and between SHONEY'S, INC., a corporation duly
organized and existing under the laws of the State of Tennessee (the
"Corporation"), and THE BANK OF NEW YORK, a New York banking corporation, as
trustee (the "Trustee"), as successor trustee to Sovran Bank/Central South
(the "Original Trustee")

                        W I T N E S S E T H:

       WHEREAS, the Corporation and the Original Trustee executed that
certain Indenture dated as of April 1, 1989 (the "Existing Indenture"),
providing for the issuance of certain Liquid Yield Option Notes in the
principal amount of up to Two Hundred One Million, Two Hundred Fifty Thousand
and 00/100 Dollars ($201,250,000), which are designated the Corporation's
Liquid Yield Option Notes Due 2004 (Zero Coupon - Subordinated) (the
"Securities"), of which an aggregate principal amount of One Hundred Seventy-
Seven Million, Three Hundred Fifty-Eight Thousand and 00/100 Dollars
($177,358,000) are currently issued and outstanding;

       WHEREAS, The Bank of New York has succeeded to the Original Trustee
as trustee under the Existing Indenture;

       WHEREAS, the Corporation is offering to purchase for cash, on the
terms and subject to the conditions set forth in the Purchase Offer and
Consent Solicitation Statement dated July 18, 2000 (as it may be supplemented
or amended from time to time, the "Purchase Offer"), and the related Letter
of Transmittal and Consent (as it may be supplemented or amended from time to
time, the "Letter of Transmittal and Consent," and together with the Purchase
Offer, the "Corporation Tender Offer"), all of the outstanding Securities;

       WHEREAS, Section 9.02 of the Existing Indenture provides that
indentures supplemental thereto may be executed and delivered by the
Corporation and the Trustee for the purpose of amending the Indenture with
the consent of the Holders of not less than a majority in principal amount of
the Securities at the time outstanding (or in certain cases with the consent
of each Holder of the Securities affected thereby);

       WHEREAS, the Holders of a majority of the principal amount of the
Securities at this time outstanding have delivered to The Bank of New York as
depositary (the "Depositary") for the Corporation in the Corporation Tender
Offer evidences of the consents thereof to the amendments to the Existing
Indenture on the terms set forth in this First Supplemental Indenture;

       WHEREAS, the Depositary has, on behalf of the Corporation, delivered
to the Trustee evidences of the requisite consents of the Holders of a
majority of the principal amount of the Securities at this time outstanding
to amend the Existing Indenture on the terms set forth in this First
Supplemental Indenture;

       WHEREAS, all other acts and proceedings necessary have been done to
make this First Supplemental Indenture, when executed and delivered by the
Corporation and the Trustee, the legal, valid and binding agreement of the
Corporation in accordance with its terms.

       NOW, THEREFORE, for good and valuable consideration, the sufficiency
and receipt of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

       Section 1. Confirmation of the Indenture; Definitions.  Except as
amended and supplemented hereby, the Existing Indenture is hereby confirmed
and reaffirmed in all particulars.  Anything in the Existing Indenture or
herein to the contrary notwithstanding, all recitals, definitions and
provisions contained in this First Supplemental Indenture shall take
precedence over the recitals, definitions and provisions of the Existing
Indenture to the extent of any conflict between the two.  Unless otherwise
defined herein, terms defined in the Existing Indenture and used herein shall
have the meanings given to them in the Existing Indenture.

       Section 2. Amendment of Section 5.01 of Article 5. From and as of the
Operational Time, Section 5.01 of the Indenture shall be amended to read in
its entirety as follows:

       "[Intentionally Omitted.]"

       Section 3. Amendment of Section 11.14 of Article 11. From and as of
the Operational Time, the first paragraph of Section 11.14 of the Indenture
shall be amended to read in its entirety as follows:

       If the Corporation shall consolidate with or merge into, or convey,
       transfer or lease all or substantially all its assets to, another
       person, or is a party to a merger or binding share exchange which
       reclassifies or changes its outstanding Common Stock, the person
       obligated to deliver securities, cash or other assets upon conversion
       of Securities shall enter into a supplemental indenture. If the
       issuer of securities deliverable upon conversion of Securities is an
       Affiliate of the Corporation, that issuer shall join in the
       supplemental indenture.

       Section 4. Conditions to Effectiveness of First Supplemental
Indenture and to Operation of Amendments Made Hereby.  This First
Supplemental Indenture shall become effective immediately upon its execution
by the Trustee and the Corporation (the "Effective Time"), provided, however,
the amendments effected by Sections 2 through and including Section 3 of this
First Supplemental Indenture shall only become operational at such time (the
"Operational Time") as validly tendered Securities are purchased by or on
behalf of the Corporation pursuant to the Corporation Tender Offer.

       Section 5. Counterparts.  This First Supplemental Indenture may be
executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

       Section 6. Severability. In case any provision in this First
Supplemental Indenture shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not
in any way be effected or impaired thereby.

       Section 7. Governing Law.  This First Supplemental Indenture shall
be governed by and construed in accordance with the laws of the State of New
York.

                                    2

       IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed, all as of the date first above
written.

                                   THE CORPORATION:

                                   SHONEY'S, INC.
ATTEST:

/s/ Richard D. Schafstall          By: /s/ David L. Gilbert
----------------------------          ----------------------------

Title:  Secretary                  Title: Executive Vice President

                                   THE TRUSTEE:

                                   THE BANK OF NEW YORK
ATTEST:

/s/                                By: /s/ Mary LaGumina
----------------------------           ----------------------------

Title:  Vice President             Title:  Vice President

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