Document:

EX-4.2

 Exhibit 4.2 

 
  

FIRST SUPPLEMENTAL INDENTURE 

Dated as of October 30, 2020 
  

 
 between 

TRACTOR SUPPLY COMPANY 
 and 

REGIONS BANK 
 as Trustee 

 
  

Supplemental to the Indenture Dated as of October 30, 2020 

 
  

Creating a Series of Securities designated 1.750% Notes due November 1, 2030 

 FIRST SUPPLEMENTAL INDENTURE, dated as of October 30, 2020 (this “First
Supplemental Indenture”), between TRACTOR SUPPLY COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), having its principal office at 5401 Virginia Way, Brentwood,
Tennessee 37027, and REGIONS BANK, an Alabama banking corporation, as trustee (the “Trustee”). 
 W I T N E S S E T H: 

WHEREAS, the Company has heretofore executed and delivered an Indenture, dated as of October 30, 2020 (the “Base
Indenture”), as supplemented and amended by this First Supplemental Indenture (the Base Indenture as Supplemented by the First Supplemental Indenture, the “Indenture”), providing for the issuance from time to time of its
unsecured unsubordinated debentures, notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series as provided in the Base Indenture; 

WHEREAS, it is provided in Section 9.1 of the Base Indenture that, without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee may enter into indentures supplemental thereto (1) to add to, change or eliminate any of the provisions of the Indenture in respect of one or more series of Securities; provided that any such addition,
change or elimination (i) shall neither (A) apply to any Security of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (B) modify the rights of the Holder of any
such Security with respect to such provision or (ii) shall become effective only when there is no such Security Outstanding, (2) to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and
if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) and (3) to establish the form or terms of Securities of any
series as permitted by Sections 2.1 and 2.2 of the Base Indenture; 
 WHEREAS, the Company, in the exercise of the power and authority
conferred upon and reserved to it under the provisions of the Indenture and pursuant to appropriate Board Resolutions and actions of its authorized officers, has duly determined to make, execute and deliver to the Trustee this First Supplemental
Indenture in order to establish the form and terms of, and to provide for the creation and issuance of, a new series of Securities designated as its 1.750% Notes due November 1, 2030 (the “Notes”) in an aggregate Principal
Amount of $650,000,000; and 
 WHEREAS, all acts and requirements necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee or any authenticating agent and issued upon the terms and subject to the conditions of the Indenture against payment therefor, the valid, binding and legal obligations of the Company and to make this First
Supplemental Indenture a valid and legally binding supplement to the Indenture have been done. 
 NOW, THEREFORE, in order to establish the
form and terms of the Notes and for and in consideration of the premises and of the covenants contained in the Indenture and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, it is mutually
covenanted and agreed, for the equal and proportionate benefit of all Holders, as follows: 
 ARTICLE I 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

Section 1.01.    Definitions. For all purposes of the Base Indenture and this First Supplemental Indenture
relating to the Notes created hereby, except as otherwise expressly provided or unless the context otherwise requires, the terms used in this First Supplemental Indenture have the meanings assigned to them in this Article. Each capitalized term that
is used in this First Supplemental Indenture but not defined herein shall have the meaning specified in the Base Indenture. 

 “Attributable Debt” in respect of a Sale and Leaseback Transaction means,
at the time of determination, the present value, discounted at the rate of interest implicit in the terms of the lease (as determined in good faith by us), of the obligations of the lessee under such lease for net rental payments during the
remaining term of the lease (including any period for which such lease has been extended or may, at our option, be extended). 

“Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. The term
“Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 
 “Business
Day” means any day except a Saturday, a Sunday or a legal holiday in New York City or the place of payment on which banking institutions are authorized or required by law or regulation to close. 

“Change of Control” means the occurrence of any of the following: (a) the consummation of any transaction (including,
without limitation, any merger or consolidation) resulting in any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than the Company or one of its
Subsidiaries1) becoming the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly
or indirectly, of more than 50.0% of the Voting Stock of the Company or other Voting Stock into which Voting Stock of the Company is reclassified, consolidated, exchanged or changed, measured by voting power rather than the number of shares;
(b) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in a transaction or a series of related transactions, of all or substantially all of the assets of the Company and the
assets of its Subsidiaries, taken as a whole, to one or more “persons” (as that term is defined in the Indenture) (other than the Company or one of its Subsidiaries); (c) we consolidate with, or merge with or into, any person, or any
person consolidates with, or merges with or into, us, in any such event pursuant to a transaction in which any of our Voting Stock (or any other Voting Stock into which our Voting Stock is reclassified, consolidated, exchanged or changed) is
converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of our Voting Stock (or any other Voting Stock into which our Voting Stock is reclassified, consolidated, exchanged or changed)
outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person immediately after giving effect to such transaction; or (d) the adoption of a plan
relating to our liquidation or dissolution. Notwithstanding the foregoing, a transaction will not be deemed to be a Change of Control under clause (a) above if (i) the Company becomes a direct or indirect wholly-owned Subsidiary of a
holding company and (ii) (y) immediately following that transaction, the direct or indirect holders of the Voting Stock of the holding company are substantially the same as the holders of Voting Stock of the Company immediately prior to
that transaction or (z) immediately following that transaction, no Person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of the
holding company. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating
Event. 
 “Comparable Treasury Issue” means the U.S. Treasury security selected by the Quotation Agent as having a maturity
comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes (assuming for this purpose that the Notes matured on the par call date). 
 “Comparable Treasury
Price” means, with respect to any redemption date, (i) the average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if
the Company obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations, or (iii) if only one Reference Treasury Dealer Quotation is received, such quotation. 

 

	1 	 Defined in Base Indenture. 

  
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 “Consolidated Net Tangible Assets” means the aggregate amount of our assets
(less applicable reserves and other properly deductible items) and our consolidated Subsidiaries’ assets after deducting therefrom (i) all current liabilities (excluding any debt for money borrowed having a maturity of less than twelve
months from the date of our most recent consolidated balance sheet but which by its terms is renewable or extendable beyond twelve months from such date at the option of the borrower) and (ii) all goodwill, trade names, patents, unamortized
debt discount and expense and other like intangibles, all as set forth on our most recent consolidated balance sheet and computed in accordance with GAAP. 

“default” means any event that is, or, after notice or lapse of time or both, would be, an Event of Default. 

“Depositary” means, with respect to the Notes issuable in whole or in part in global form, DTC and any nominee thereof, until
a successor is appointed and becomes such pursuant to the applicable provisions of the Indenture, and thereafter “Depositary” shall mean or include such successor and any nominee thereof. 

“DTC” means The Depository Trust Company. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto, as
interpreted by the rules and regulations thereunder, all as the same may be in effect from time to time. 
 “Exchange Act”
means the Securities Exchange Act of 1934, as amended. 
 “Funded Debt” means all indebtedness for money borrowed having a
maturity of more than 12 months from the date as of which the amount thereof is to be determined or having a maturity of less than 12 months but by its terms being renewable or extendible beyond 12 months from such date at the option of the
borrower. 
 “GAAP” means generally accepted accounting principles in the United States applied on a consistent basis with
the most recent annual or quarterly financial statements of the Company. 
 “Hedging Agreements” means any interest rate
protection agreement or foreign currency exchange agreement. 
 “Global Note” means Notes issued in global form and
deposited with or on behalf of the Depositary, substantially in the form of Global Notes attached hereto as Exhibit A. 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company. 

“Lien” means, with respect to any property, shares of stock or evidences of indebtedness, any mortgage or deed of trust,
pledge, hypothecation, security interest, lien, encumbrance or other security arrangement of any kind or nature on or with respect to such property, shares of stock or evidences of indebtedness. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Note Interest Payment Date” has the meaning set forth in Section 2.03 of this First Supplemental Indenture. 

  
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 “par call date” means August 1, 2030. 

“Permitted Government Revenue Bond Indebtedness” means a revenue bond or bonds issued by a state or local governmental
authority, the proceeds of which are used to finance or refinance the acquisition, construction, equipping or improvement of facilities or property used by the Company or any Subsidiary, and any lease obligation (including deferred lease
obligations) of the Company or any of its Subsidiaries relating thereto; provided that (a) such revenue bonds are non-recourse to the Company and its Subsidiaries (unless and to the extent the Company or
a Subsidiary is the holder of such bonds), and (b) the principal of, interest on or costs relating to such revenue bonds are payable solely from (i) proceeds of such bonds when issued as a means of implementing government tax or economic
incentive programs, (ii) all or an incremental portion of sales, use, property and other generally applicable taxes (not including income taxes), whether generated by or levied on such facilities or property or the activities and business
conducted thereon or upon property located in a broader area, (iii) reserve funds created with proceeds of bonds described in (i) or with revenues described in (ii) or (iv) if the Company or a Subsidiary of the Company is the holder
of such bonds, payments made by the Company or such Subsidiary. 
 “Permitted Liens” means: 

(a)    Liens (other than Liens created or imposed under ERISA) for taxes, assessments or governmental charges or levies
not yet subject to penalties for non-timely payment or Liens for taxes being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been
established (and as to which the property or assets subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof); 

(b)    statutory Liens of landlords and Liens of mechanics, materialmen, warehousemen, carriers and suppliers and other
Liens imposed by law or pursuant to customary reservations or retentions of title arising in the ordinary course of business; provided that any such Liens which are material secure only amounts not yet due and payable or, if due and payable,
are unfiled and no other action has been taken to enforce the same or are being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established (and as to which the property or
assets subject to any such Lien is not yet subject to foreclosure, sale or loss on account thereof); 
 (c)    Liens
(other than Liens created or imposed under ERISA) incurred or deposits made by the Company and the Company’s Subsidiaries in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types
of social security, laws or regulations, or to secure the performance of tenders, statutory obligations, bids, leases, trade or government contracts, surety, indemnification, appeal, performance and return-of-money bonds, letters of credit, bankers acceptances and other similar obligations (exclusive of obligations for the payment of borrowed money), or as security for customs or import duties and
related amounts; 
 (d)    Liens in connection with attachments or judgments (including judgment or appeal bonds);
provided that the judgments secured shall, within 30 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall have been discharged within 30 days after the expiration of any such stay; 

(e)    Liens securing indebtedness (including capital leases) incurred to finance the purchase price or cost of
construction of property or assets (or additions, repairs, alterations or improvements thereto); provided that such Liens and the indebtedness secured thereby are incurred within twelve months of the later of acquisition or completion of
construction (or addition, repair, alteration or improvement) and full operation thereof; 
 (f)    Liens securing
industrial revenue bonds, pollution control bonds or similar types of tax-exempt bonds; 

  
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 (g)    Liens arising from deposits with, or the giving of any form of
security to, any governmental agency required as a condition to the transaction of business or exercise of any privilege, franchise or license; 

(h)    encumbrances, covenants, conditions, restrictions, easements, reservations and rights of way or zoning, building
code or other restrictions (including defects or irregularities in title and similar encumbrances), as to the use of real property, or Liens incidental to conduct of the business or to the ownership of the Company or the Company’s
Subsidiaries’ properties not securing debt that do not in the aggregate materially impair the use of said properties in the operation of the Company’s business, including the Company’s Subsidiaries, taken as a whole; 

(i)    leases, licenses, subleases or sublicenses granted to others not interfering in any material respect with the
Company’s business, including the Company’s Subsidiaries, taken as a whole; 
 (j)    Liens on property or
assets at the time such property or assets are acquired by the Company or any of its Subsidiaries; 
 (k)    Liens on
property or assets of any person at the time such person becomes one of the Company’s Subsidiaries; 
 (l)    Liens
on receivables from customers sold to third parties pursuant to credit arrangements in the ordinary course of business; 

(m)    Liens existing as of the date of the Indenture or any extensions, amendments, renewals, refinancings, replacements
or other modifications thereto; 
 (n)    Liens on any property or assets created, assumed or otherwise brought into
existence in contemplation of the sale or other disposition of the underlying property or assets, whether directly or indirectly, by way of share disposition or otherwise; 

(o)    Liens securing debt of a Subsidiary owed to the Company or to another one of the Company’s Subsidiaries; 

(p)    Liens in favor of the United States of America or any State thereof, or any department, agency or instrumentality
or political subdivision thereof, to secure partial, progress, advance or other payments; 
 (q)    Liens to secure debt
of joint ventures in which the Company or any of its Subsidiaries have an interest, to the extent such Liens are on property or assets of, or equity interests in, such joint ventures; 

(r)    normal and customary rights of setoff or other Liens upon deposits of cash in favor of banks or other depository
institutions or credit or debit card or check processors or other similar processors, in each case, in connection with the provision of such services; 

(s)    Liens arising from financing statement filings regarding operating leases; 

(t)    Liens on inventory held by the Company or any of its Subsidiaries under consignment or scan back arrangements
entered into in the ordinary course of business; 
 (u)    Liens in favor of customs and revenue authorities to secure
custom duties in connection with the importation of goods; 
 (v)    Liens securing the financing of insurance premiums
payable on insurance policies; provided that such Liens shall only encumber unearned premiums with respect to such insurance, interests in any state guarantee fund relating to such insurance and subject and subordinate to the rights and
interests of any loss payee, loss payments which shall reduce such unearned premiums; 

  
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 (w)    Liens securing cash management obligations (that do not
constitute indebtedness), or arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods and contractual rights of set-off relating to purchase orders and other
similar arrangements, in each case in the ordinary course of business; 
 (x)    Liens related to Permitted Government
Revenue Bond Indebtedness; provided that the Company or a Subsidiary of the Company is the holder of such Permitted Government Revenue Bond Indebtedness; 

(y)    Liens securing Hedging Agreements; and 

(z)    other Liens on the Company’s property or assets and the property or assets of the Company’s Subsidiaries
securing debt in an aggregate principal amount (together with the aggregate amount of all Attributable Debt in respect of Sale and Leaseback Transactions entered into in reliance on this clause) not to exceed, as of any date of incurrence of such
secured debt pursuant to this clause and after giving effect to such incurrence and the application of the proceeds therefrom, of 15.0% of the Company’s Consolidated Net Tangible Assets. 

“Principal Amount” of the Notes means the principal amount as set forth on the face of each respective Note. 

“Principal Property” means any building, structure or other facility, together with the land upon which it is erected and
fixtures comprising a part thereof, used primarily for selling farm supplies, pet and animal feed and supplies, clothing, tools, fencing products and other related products or the manufacturing, warehousing or distributing of the products, owned or
leased by the Company or any of the Company’s Subsidiaries. 
 “Quotation Agent” means any Reference Treasury Dealer
appointed by the Company. 
 “Rating Agencies” means (a) each of Moody’s and S&P and (b) if either of
Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the control of the Company, a “nationally recognized statistical rating organization” (as defined in
Section 3(a)(62) of the Exchange Act) selected by the Company as a replacement Rating Agency for a former Rating Agency. 

“Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies and the Notes are rated below an
Investment Grade Rating by each of the Rating Agencies on any day within the 60-day period (which 60-day period will be extended so long as the rating of the Notes is
under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the earlier of (a) the occurrence of a Change of Control and (b) public notice of the occurrence of a Change of Control or the
Company’s intention to effect a Change of Control; provided that a Rating Event will not be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Rating Event for purposes of the definition
of Change of Control Triggering Event) if each Rating Agency making the reduction in rating does not publicly announce or confirm or inform the Trustee in writing at the request of the Company that the reduction was the result, in whole or in part,
of any event or circumstance comprised of or arising as a result of, or in respect of, the Change of Control (whether or not the applicable Change of Control has occurred at the time of the Rating Event). The Trustee shall have no duty to monitor
the ratings on the notes. 
 “Reference Treasury Dealer” means each of (i) a Primary Treasury Dealer (as defined
herein) selected by Goldman Sachs & Co. LLC, (ii) a Primary Treasury Dealer selected by Wells Fargo Securities, LLC, (iii) a Primary Treasury Dealer selected by Regions Securities LLC and their respective successors;
provided, 

  
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however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will
substitute therefor another Primary Treasury Dealer, and (iv) any other Primary Treasury Dealer selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third
Business Day preceding such redemption date. 
 “Regular Record Date” has the meaning set forth in Section 2.03 of
this First Supplemental Indenture. 
 “S&P” means S&P Global Ratings, a business unit of S&P Global Inc. 

“Sale and Leaseback Transaction” means any arrangement pursuant to which the Company or any of its Subsidiaries, directly or
indirectly, becomes liable as lessee, guarantor or other surety with respect to any lease, whether an operating lease or a capital lease, of any property (whether real, personal or mixed), whether now owned or hereafter acquired (a) which the
Company or such Subsidiary has sold or transferred (or is to sell or transfer) to a person which is not the Company or any of its Subsidiaries or (b) which Company or such Subsidiary intends to use for substantially the same purpose as any
other property which has been sold or transferred (or is to be sold or transferred) by Company or such Subsidiary to another person which is not the Company or any of its Subsidiaries in connection with such lease. 

“Stated Maturity” has the meaning set forth in Section 2.02 of this First Supplemental Indenture. 

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price of such redemption date. 

“Voting Stock” means, with respect to any specified person (as that term is used in Section 13(d)(3) of the Exchange
Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

Section 1.02.    Section References. Each reference to a particular section set forth in this First
Supplemental Indenture shall, unless the context otherwise requires, refer to this First Supplemental Indenture. Each reference to a particular section of the Base Indenture shall refer to that particular section of the Base Indenture. 

ARTICLE II 
 THE NOTES

 Section 2.01.    Title and Amount of the Notes. The Company hereby creates the Notes pursuant to the
Indenture. The Notes shall be designated as the “1.750% Notes due November 1, 2030.” The aggregate Principal Amount of the Notes that may be authenticated and delivered under this First Supplemental Indenture is initially limited to
$650,000,000. The Notes may be reopened, without the consent of the Holders of the Notes, for the issuance of additional Notes. 

Section 2.02.    Stated Maturity. The Stated Maturity of the Notes shall be November 1, 2030. 

Section 2.03.    Interest and Payment. The Notes shall bear interest at 1.750% per annum beginning on the date
of issuance until the Notes are redeemed, paid or duly provided for. Interest on the Notes shall be paid semiannually in arrears on each May 1 and November 1 (each, a “Note Interest Payment Date”),

  
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commencing May 1, 2021, to the persons in whose names the Notes are registered at the close of business on the 15th calendar day immediately preceding the interest payment date (whether or
not a Business Day) (each, a “Regular Record Date”). If any interest payment date on the Notes falls on a day that is not a Business Day, the interest payment will be postponed to the next day that is a Business Day, and no
interest on that payment will accrue for the period from and after the Note Interest Payment Date. Payments of interest on the Notes shall include interest accrued to, but excluding, the respective Note Interest Payment Dates. Interest payments for
the Notes shall be computed on the basis of a 360-day year composed of twelve 30-day months. Payments of principal and interest to owners of book-entry interests shall
be made to Holders of the Notes on the respective Regular Record Dates in accordance with the procedures of DTC and its participants in effect from time to time. All payments of principal and interest shall be made by the Company in immediately
available funds except as set forth in the applicable Note. 
 Section 2.04.    Optional Redemption. 

(a)    At any time prior to August 1, 2030, the Notes will be redeemable, in whole at any time or in
part from time to time, at the Company’s option, at a redemption price, to be calculated by the Company, equal to the greater of: 

(i)    100% of the principal amount of the Notes to be redeemed; or 

(ii)    the sum of the present values of the remaining scheduled payments of principal and interest on such
Notes that but for the redemption would be due after the related redemption date through the par call date with respect to the Notes being redeemed, assuming such Notes matured on the par call date (not including any portion of such payments of
interest accrued as of the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate, plus 20 basis points with respect to the Notes; 
 plus, in each case, accrued and unpaid interest thereon to, but
excluding, the date of redemption. 
 (b)    On or after August 1, 2030, the Notes will be
redeemable, in whole at any time or in part from time to time, at the Company’s option, at par plus accrued and unpaid interest thereon to, but excluding, the date of redemption. 

(c)    Notwithstanding the foregoing, installments of interest on Notes that are due and payable on Note
Interest Payment Dates falling on or prior to a redemption date will be payable on the Note Interest Payment Date to the registered Holders as of the close of business on the relevant record date. 

(d)    Notice of any redemption will be given at least 10 days but not more than 60 days before the
Redemption Date to each registered Holder of the Notes to be redeemed. Unless the Company defaults in payment of the redemption price, on and after the applicable Redemption Date, interest will cease to accrue on the Notes or portions thereof called
for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected in accordance with the procedures of DTC. The Company will determine the redemption price and the Trustee shall have no duty to verify any
such determination. 
 Section 2.05.    Change of Control Offer to Purchase. 

(a)    If a Change of Control Triggering Event occurs, Holders of Notes may require the Company to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of their Notes at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any, on such Notes to, but excluding, the date
of purchase (unless a notice of redemption has been mailed within 30 days after such Change of Control Triggering Event stating that all of the 

  
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Notes will be redeemed as described in Section 2.04). The Company will be required to mail to Holders of the Notes (with a copy to the Trustee) a notice describing the transaction or
transactions constituting the Change of Control Triggering Event and offering to repurchase the Notes. The notice must be mailed within 30 days after any Change of Control Triggering Event, and the repurchase must occur no earlier than 30 days and
no later than 60 days after the date the notice is mailed. 
 (b)    On the date specified for repurchase
of the Notes, the Company will, to the extent lawful: 
 (i)    accept for purchase all properly tendered
Notes or portions of Notes; 
 (ii)    deposit with the paying agent the required payment for all
properly tendered Notes or portions of Notes; and 
 (iii)    deliver to the Trustee the repurchased
Notes, accompanied by an Officers’ Certificate stating, among other things, the aggregate principal amount of repurchased Notes. 

(c)    The Company will comply with the requirements of Rule 14e-1
under the Exchange Act, and any other securities laws and regulations applicable to the repurchase of the Notes. To the extent that these requirements conflict with the provisions requiring the repurchase of the Notes, the Company will comply with
such requirements instead of the repurchase provisions and will not be considered to have breached its obligations with respect to repurchasing the Notes. Additionally, if an Event of Default exists under the Indenture (which is unrelated to the
repurchase provisions of the Notes), including Events of Default arising with respect to other issues of debt securities, the Company will not be required to repurchase the Notes notwithstanding these repurchase provisions. 

(d)    The Company will not be required to comply with the obligations of this Section 2.05 if a third
party instead satisfies them. 
 Section 2.06.    Sale and Leaseback Transactions. The Company shall not,
and shall not permit any Subsidiary to, enter into any transaction involving the sale and subsequent leasing back by the Company or any of its Subsidiaries of any Principal Property, unless, after giving effect to the Sale and Leaseback Transaction,
the Company or such Subsidiary would be entitled, at the effective date of such Sale and Leaseback Transaction, to incur debt secured by a Lien on such Principal Property in an amount at least equal to the Attributable Debt in respect of such Sale
and Leaseback Transaction, without equally and ratably securing the notes pursuant to the covenant described under Section 2.07. This restriction will not apply to Attributable Debt with respect to any Sale and Leaseback Transaction, and such
obligations will be excluded in computing Attributable Debt for the purpose of this covenant, if: 

(a)    the lease in such transaction is for a period (including renewal rights) not exceeding three years,
or 
 (b)    the Company or a Subsidiary, within 180 days after the sale or transfer, applies an amount
not less than the greater of the net proceeds of the sale of the Principal Property leased under the arrangement or the fair market value of the Principal Property leased at the time of entering into the arrangement (as determined by the board of
directors) to, subject to certain restrictions, the retirement of the Company’s Funded Debt ranking on a parity with or senior to the notes or the retirement of Funded Debt of a Subsidiary, or 

(c)    such transaction is entered into before, at the time of, or within 30 months after the later of the
acquisition of the Principal Property or the completion of its construction, or 
 (d)    the lease in
the transaction secures or relates to obligations issued by a state, territory or possession of the United States, or any political subdivision thereof, or the District of Columbia, to finance the acquisition of or construction on property, and on
which the interest is not, in the Opinion of Counsel, includable in the gross income of the Holder, or 

  
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 (e)    the transaction is entered into between the
Company and a Subsidiary or between Subsidiaries. 
 Section 2.07.    Limitation on Liens. The Company shall
not, and shall not permit any of its Subsidiaries to, contract, create, incur, assume or permit to exist any Lien on (i) any Principal Property or (ii) the capital stock of any Subsidiary, to secure any indebtedness for borrowed money of
the Company, any Subsidiary or any other person without securing the notes equally and ratably with such indebtedness for so long as such indebtedness shall be so secured, except for Permitted Liens. 

Section 2.08.    Consolidation, Merger, Dissolution, etc. Without the consent of the Holders of the Notes, the
Company may consolidate with or merge into, or convey, transfer or lease its properties and assets, substantially as an entirety to, any corporation, partnership or trust organized under the laws of the United States of America, any State thereof or
the District of Columbia, as long as: 
 (a)    the successor assumes the obligations of the Company on
the Notes and under the Indenture; 
 (b)    after giving effect to the transaction, no Event of Default,
and no event that, after notice, lapse of time or both, would become an Event of Default, has occurred and is continuing; and 

(c)    the Company shall deliver or cause to be delivered to the Trustee an Officers’ Certificate and
Opinion of Counsel stating that such transaction complies with this Section 2.08. 

Section 2.09.    Events of Default 

The following are “Events of Default” with respect to the Notes: 

(a)    default for 30 days in payment when due of any interest on the notes; 

(b)    default in payment when due of principal or premium, if any, on the Notes; 

(c)    default or breach, for 60 days after notice from the Trustee or from the Holders of at least 25.0%
in aggregate principal amount of the Notes then outstanding, in the performance of any other covenant or warranty in the Notes and in this First Supplemental Indenture; 

(d)    default in the payment of principal when due or resulting in acceleration of other indebtedness of
the Company for borrowed money where the aggregate principal amount with respect to which the default or acceleration has occurred exceeds $25.0 million and the indebtedness is not discharged or acceleration is not rescinded or annulled within
ten days after written notice of the default to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25.0% in aggregate principal amount of the Notes then outstanding; provided that the Event of Default will
be deemed cured or waived if the default that resulted in the acceleration of the other indebtedness is cured or waived or the indebtedness is discharged; and 

(e)    the Company pursuant to or within the meaning of any Bankruptcy Law: 

(i)    commences a voluntary case; 

(ii)    consents to the entry of an order for relief against it in an involuntary case; 

  
 11 

 (iii)    consents to the appointment of a custodian of
it or for all or substantially all of its property; 
 (iv)    makes a general assignment for the benefit
of its creditors; 
 (v)    generally is unable to pay its debts as the same become due; 

(f)    a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(i)    is for relief against the Company in an involuntary case; 

(ii)    appoints a Custodian of the Company or for all or substantially all of its property; or 

(iii)    orders the liquidation of the Company,; 

and the order or decree remains unstayed and in effect for 90 days. 

The Trustee shall, within 90 days after obtaining actual knowledge of a default with respect to the Notes, give to the Holders of those Notes notice of all
uncured defaults known to it; provided that: 
 (a)    except in the case of default in payment of the
principal, premium, if any, or interest on the notes, the Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in the interest of the Holders of the notes, and 

(b)    no notice of a default made in the performance of any covenant or a breach of any warranty contained
in this First Supplemental Indenture will be given until at least 60 days after the occurrence thereof. 
 If an Event of Default with respect to the Notes
at the time outstanding occurs and is continuing, either the Trustee or the Holders of at least 25.0% in aggregate principal amount of the Notes may declare the Principal Amount of the Notes due and payable immediately. At any time after making a
declaration of acceleration with respect to Notes, but before obtaining a judgment or decree based on acceleration, the Holders of a majority in aggregate principal amount of outstanding notes may, in some circumstances, rescind and annul such
acceleration. 
 The Trustee shall be under no obligation to exercise any of the rights or powers under this First Supplemental Indenture at the request or
direction of any of the Holders, unless the Holders have offered indemnity satisfactory to the Trustee. Except as limited by the provisions for the indemnification of the Trustee and certain other circumstances, the Holders of a majority in
aggregate principal amount of the outstanding notes will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee, or exercising any trust or power conferred on the Trustee with respect
to the Notes. 
 The Company shall furnish annually to the Trustee a statement as to its performance of its obligations under this Indenture and as to any
default in its performance as provided in Section 4.2 of the Base Indenture. 
 Section 2.10.    Forms;
Denominations. The Notes shall be Registered Securities and shall be issued in minimum denominations of $2,000 and integral multiples of $1,000 thereafter. The certificates for the Notes shall be in substantially the form attached hereto as
Exhibit A. 

  
 12 

 Section 2.11.    Global Notes. 

(a)    Notes shall be issued initially in the form of one or more Global Notes in definitive fully
registered book-entry form without interest coupons, held by Regions Bank, at its Corporate Trust Office, as custodian for the Depositary and registered in the name of DTC or a nominee thereof, duly executed by the Company and authenticated by the
Trustee as provided in the Indenture. The aggregate Principal Amount of the Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary as hereinafter provided. 

(b)    Book-Entry Provisions. The Company shall execute and the Trustee will, in accordance with this
Section 2.11(b) and Section 2.3 of the Base Indenture, authenticate and deliver initially one or more Global Notes that (x) shall be registered in the name of the Depositary or its nominee, (y) shall be held by the Trustee as
custodian for the Depositary and (z) shall bear legends substantially to the following effect: 
 “UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO TRACTOR SUPPLY COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.” 

Section 2.12.    Applicability of Sinking Funds. The provisions of Sections 3.7, 3.8 and 3.9 of the Base
Indenture shall not apply to the Notes. 
 ARTICLE III 

ARTICLE III MISCELLANEOUS PROVISIONS 

Section 3.01.    Concerning the Indenture. Except as expressly amended hereby, the Base Indenture shall
continue in full force and effect in accordance with the provisions thereof and the Base Indenture is in all respects hereby ratified and confirmed. This First Supplemental Indenture and all its provisions shall be deemed a part of the Base
Indenture in the manner and to the extent herein and therein provided. 
 Section 3.02.    Severability. In
case any provision in this First Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 3.03.    Trust Indenture Act. If any provision in this First Supplemental Indenture limits, qualifies
or conflicts with any other provision hereof or of the Base Indenture, which provision is required to be included in the Base Indenture by any of the provisions of the Trust Indenture Act of 1939, as amended, such required provision shall control.

 Section 3.04.    Trustee. The recitals and statements herein are deemed to be those of the Company and
not of the Trustee. The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture. 

Section 3.05.    Governing Law. THIS FIRST SUPPLEMENTAL INDENTURE AND THE SECURITIES, INCLUDING ANY CLAIM OR
CONTROVERSY ARISING OUT OF OR RELATING TO THIS FIRST SUPPLEMENTAL INDENTURE OR THE NOTES, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 

  
 13 

 Section 3.06.    Multiple Originals; Execution and
Authentication. 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.
The execution and authentication of the Notes shall be effected by manual facsimile, or electronic signature and shall be deemed original signatures for all purposes hereunder for the Notes (other than the authentication of a Note by the Trustee).
The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Agreement or any document to be signed in connection with this Agreement shall be deemed to include
electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based
recordkeeping system, as the case may be, and the parties hereto consent to conduct the transactions contemplated hereunder by electronic means. 

Section 3.07.    Agreement Concerning Methods of Submitting Instructions or Directions Electronically or by
Facsimile. The Trustee shall be entitled to accept and act upon instructions or directions pursuant to this First Supplemental Indenture sent by unsecured e-mail, pdf, facsimile transmission or other
similar unsecured electronic methods; provided, however, that the Trustee shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such
designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. If the Company elects to give the Trustee e-mail or facsimile
instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling. The Trustee shall not be liable
for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding that such instructions conflict or are inconsistent with a subsequent written instruction.
The Company agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee. 

Section 3.08.    Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HERETO HEREBY IRREVOCABLY WAIVES ALL
RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS FIRST SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

[SIGNATURES APPEAR ON FOLLOWING PAGE] 

  
 14 

 IN WITNESS WHEREOF, the parties have caused this First Supplemental Indenture to be duly
executed. 
  

			
	TRACTOR SUPPLY COMPANY
		
	By:	 	 /s/ Kurt D. Barton

		 	Name: Kurt D. Barton
		 	 Title:   Executive Vice President – Chief

            Financial Officer and Treasurer

	
	REGIONS BANK, as Trustee
		
	By:	 	 /s/ Kristine Prall

		 	Name: Kristine Prall
		 	Title:   Vice President

 [Signature Page to First Supplemental Indenture] 

 Exhibit A 

FORM OF GLOBAL NOTE 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY. 

TRACTOR SUPPLY COMPANY 

[●]% Notes due [●], 20[●] 

GLOBAL SECURITY 
  

					
	 No.
	  	 	CUSIP No.	
		  	 	$	 
		  	 	Original Principal Amount	 

 Tractor Supply Company, a corporation duly organized and existing under the laws of the State of Delaware (herein called the
“Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or its registered assigns, the principal sum of
$                on [●], 20[●], at the office or agency of the Company referred to below, in such coin or currency of the United States of America as at the
time of payment is legal tender for the payment of public and private debts, and to pay interest thereon in like coin or currency from [●], 2020, or from the most recent interest payment date on which interest has been paid or duly provided
for, semiannually in arrears on [●] and [●] in each year, commencing [●], 2021, at the rate of [●]% per annum until the principal hereof is paid or made available for payment, and (to the extent lawful) to pay interest at the
same rate per annum on any overdue principal and premium and on any overdue installments of interest until paid. If any interest payment date falls on a day that is not a Business Day, the interest payment will be postponed to the next day that is a
Business Day, and no interest on that payment will accrue for the period from and after the interest payment date. 
 The interest so payable, and
punctually paid or duly provided for, on any interest payment date, as provided in the Indenture, dated as of [●], 2020 (the “Base Indenture”) between the Company and Regions Bank, as trustee (the “Trustee”), as
supplemented by the First Supplemental Indenture dated as of [●], 2020, between the Company and the Trustee (the “First Supplemental Indenture” and, the Base Indenture as supplemented by the First Supplemental Indenture,
the “Indenture”) shall be paid to the Person in whose name this Note is registered at the close of business on the 15th calendar day immediately preceding the interest payment date (whether or not a Business Day) (the “Regular
Record Date”). Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Person in whose name this Note is registered on such Regular Record Date and may either be paid to the Person in whose name
this Note is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed in accordance with Section 2.13 of the Base Indenture by the Trustee, notice whereof shall be given to the Person
in whose name this Note is registered not less than ten days prior to such special record date, or be paid at any time in any other lawful manner, all as more fully provided in the Indenture. In the event of any conflict between this Note and the
Indenture, the terms of the Indenture shall govern. 

 This Note is a “book-entry” note and is being registered in the name of Cede & Co. as
nominee of The Depository Trust Company (“DTC”), a clearing agency. Subject to the terms of the Indenture, this Note will be held by a clearing agency or its nominee, and beneficial interests will be held by beneficial owners through the
book-entry facilities of such clearing agency or its nominee in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 So
long as this Note is registered in the name of DTC or its nominee, the Trustee will make payments of principal of and interest on this Note by wire transfer of immediately available funds to DTC or its nominee. Notwithstanding the above, the final
payment on this Note will be made after due notice by the Trustee of the pendency of such payment and only upon presentation and surrender of this Note at its principal corporate trust office or such other office or agencies appointed by the Trustee
for that purpose and such other locations provided in the Indenture. 
 Payments of principal of (and premium, if any) and interest on this Note will be
made at the office or agency of the Company maintained for that purpose in such coin or currency of the United States of America as at the time of payment is legal tender for payments of public and private debts; provided, however,
that at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. 

This Note is one of a duly authorized series of notes of the Company, designated [●]% Notes due [●], 20[●] (the “Notes”),
initially limited in aggregate principal amount at any time outstanding to [●] DOLLARS ($[●]) which may be issued under the Indenture. This series of Notes may be reopened, without the consent of the holders of the Notes, for issuance of
additional Notes. Reference is hereby made to the Indenture and all indentures supplemental thereto which are applicable to the Notes for a statement of the respective rights, limitations of rights, duties, obligations and immunities thereunder of
the Company, the Trustee and the Holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in the
Indenture. The terms of this Note include those stated in the Indenture, and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as in effect on the date of the Indenture (the “TIA”). 

The Notes do not have the benefit of any sinking fund obligations. 

At any time prior to the date that is [●] months prior to [●], 20[●], the Notes will be redeemable, in whole at any time or in part from
time to time, at the Company’s option, at a redemption price, to be calculated by the Company, equal to the greater of: 
 (i) 100% of the principal
amount of the Notes to be redeemed; or 
 (ii) the sum of the present values of the remaining scheduled payments of principal and interest on such Notes
that but for the redemption would be due after the related redemption date through the par call date with respect to the Notes being redeemed, assuming such Notes matured on the par call date (not including any portion of such payments of interest
accrued as of the date of redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate (as defined in the Indenture), plus [●] basis points; 
 Plus, in each case, accrued and unpaid interest thereon to, but excluding, the
date of redemption. 
 On or after the date that is [●] months prior to [●], 20[●], the Notes will be redeemable, in whole at any time or
in part from time to time, at the Company’s option, at par plus accrued and unpaid interest thereon to, but excluding, the date of redemption. 

Notwithstanding the previous two paragraphs, installments of interest on Notes that are due and payable on interest payment dates falling on or prior to a
redemption date will be payable on the interest payment date to the registered holders as of the close of business on the relevant record date. 
 Notice of
any redemption will be given at least 10 days but not more than 60 days before the redemption date to each registered holder of the Notes to be redeemed. Unless the Company defaults in payment of the redemption price, on and after the redemption
date, interest will cease to accrue on the Notes or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected in accordance with the procedures of DTC. 

 Upon a Change of Control Triggering Event, the Company shall be required to make an offer to repurchase the
Notes on the terms set forth in the Indenture. 
 If an Event of Default shall occur and be continuing, the principal of all the Notes may be declared due
and payable in the manner and with the effect provided in the Indenture. 
 The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness of the Company under this Note and (b) certain restrictive covenants and the related defaults and Events of Default applicable to the Company, in each case, upon compliance by the Company with certain conditions set forth in
the Indenture, which provisions apply to this Note. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Notes under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the
Notes at the time Outstanding. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive compliance by
the Company with certain provisions of the Indenture and certain past Defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer thereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 

No reference herein to the Indenture and provisions of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of (and premium, if any) and interest on this Note at the times, place and rate, and in the coin or currency, as herein prescribed. 

As provided in the Indenture and subject to certain limitations on transfer of this Note by DTC or its nominee, the transfer of this Note is registrable in
the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company duly endorsed by, or accompanied by a written instrument of transfer in the form attached hereto duly executed by the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or transferees. 

The Notes are issuable only in registered form in minimum denominations of $2,000 and integral multiples of $1,000 thereafter. As provided in the Indenture
and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of Notes of different authorized denomination, as requested by the Holder surrendering the same. 

No service charge shall be made for any such registration of transfer or exchange of Notes, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Note for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and none of the Company, the Trustee or any such agent
shall be affected by notice to the contrary. 
 Interest on this Note shall be computed on the basis of a 360-day
year composed of twelve 30-day months. 
 The Company shall furnish to any Holder of record of Notes, upon written
request and without charge, a copy of the Indenture. 
 The Indenture and this Note each shall be governed by and construed in accordance with the laws of
the State of New York. 
 Unless the certificate of authentication hereon has been executed by the Trustee by manual, electronic or facsimile signature,
this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, TRACTOR SUPPLY COMPANY has caused this Note
to be signed by a duly elected or appointed, qualified and serving officer and attested by a duly elected or appointed, qualified and serving officer. 
  

			
	TRACTOR SUPPLY COMPANY
		
	By:	 	  

		 	Name:
		 	Title:

 Dated: October [●], 2020 

 

			
	Attest:	 	  

		 	Name:
		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

THIS IS ONE OF THE SECURITIES OF THE SERIES DESIGNATED THEREIN REFERRED TO IN THE WITHIN-MENTIONED INDENTURE. 

 

			
	REGIONS BANK as Trustee
		
	By:	 	  

		 	Authorized Officer

 
			
		
	Date:	 	  

 [Signature Page to Global Note] 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this Note, shall be construed as though they were written out in full according to
applicable laws or regulations: 
 TEN COM - tenants in common 

TEN ENT - tenants by the entireties 
 JT TEN - joint tenants with
right of survivorship and not as tenants in common 
 CUST - Custodian 

U/G/M/A or UNIF GIFT MIN ACT—Uniform Gifts to Minors Act 

Additional abbreviations may also be used though not in the above list. 

 FORM OF TRANSFER 

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

 
  
  

 
 (Please print or typewrite name and
address of assignee) 
  
  

(Please insert Social Security or other identifying Number of Assignee) 

the within Note of Tractor Supply Company and does hereby irrevocably constitute and appoint
                     , Attorney, to transfer the said Note on the books of the within named Tractor Supply
Company, with full power of substitution in the premises. 

Dated:                
                 
  

			
		 	  

		 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of this Note in every particular without alteration or enlargement or any change whatever.

  
  

SIGNATURE GUARANTEED: 
 The signature must be guaranteed by 

a member of the Securities Transfer 
 Agents Medallion Program.

 Notarized or witnessed signatures are not acceptable. 

 PAYMENT INSTRUCTIONS 

The assignee should include the following for purposes of payment: 

Payment shall be made, by wire transfer or otherwise, in immediately available funds, to
                , for the account of
                , account number, or, if mailed by check, to
                . 
 Applicable reports and
statements required to be physically delivered under the terms of the Indenture should be mailed to                 . This information is
provided by                 , the assignee named above, or
                , as its agent.ruth-ex101_7.htm

 

EXHIBIT 10.1

 

FIFTH AMENDMENT TO CREDIT AGREEMENT

 

THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of October 26, 2020, is by and among RUTH’S HOSPITALITY GROUP, INC., a Delaware corporation (the “Borrower”), the Guarantors party hereto, WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent on behalf of the Lenders under the Credit Agreement (as hereinafter defined) (in such capacity, the “Administrative Agent”), and the Lenders party hereto.  

 

W I T N E S E T H

 

WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent are parties to that certain Credit Agreement dated as of February 2, 2017 (as amended by that certain First Amendment to Credit Agreement dated as of September 18, 2019, as amended by that certain Second Amendment to Credit Agreement dated as of March 27, 2020, as amended by that certain Third Amendment to Credit Agreement dated as of May 7, 2020, as amended by that certain Fourth Amendment to Credit Agreement dated as of May 18, 2020, and as further amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement); 

 

WHEREAS, the Borrower has requested that the Lenders make certain other amendments to the Credit Agreement as set forth herein; and

 

WHEREAS, the Lenders have agreed to amend the Credit Agreement subject to the terms and conditions set forth herein.

 

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

 

 

ARTICLE I

AMENDMENT TO CREDIT AGREEMENT

 

As of the Fifth Amendment Effective Date (as hereinafter defined), the Credit Agreement is hereby amended in the following respects:

 

1.1Amendment to the definition of “Applicable Margin”.  The definition of “Applicable Margin” in Section 1.1 of the Credit Agreement are hereby amended by inserting the following new sentence at the end thereof:  

 

Notwithstanding the foregoing, with respect to the Fiscal Quarters ending on or about March 28, 2021, June 27, 2021 and September 26, 2021, for the purposes of calculating Consolidated Leverage Ratio, Consolidated EBITDA shall be determined based on the actual amounts for the applicable four consecutive Fiscal Quarter period (and not, for the avoidance of doubt, the Annualized EBITDA).

 

1.2Amendment to the definition of “Commitment”.  The last two sentences in the definition of “Commitment” in Section 1.1 of the Credit Agreement are hereby amended in their entireties to read as follows:

 

CHAR1\1754889v8

 

 

The aggregate Commitments of all the Lenders on the Fifth Amendment Effective Date shall be ONE HUNDRED TWENTY MILLION DOLLARS ($120,000,000).  The Commitment of each Lender as of the Fifth Amendment Effective Date is set forth opposite the name of such Lender on Schedule 1.1(b).

 

1.3Amendment to the definition of “Consolidated Leverage Ratio”.  The last sentence of the definition of “Consolidated Leverage Ratio” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Notwithstanding the foregoing, for purposes of calculating the Consolidated Leverage Ratio to determine compliance with Section 8.6(b) as of the end of the Fiscal Quarters ending on or about March 28, 2021, June 27, 2021 and September 26, 2021, Consolidated EBITDA included in clause (ii) above shall be calculated as (x) in the case of the Fiscal Quarter ending on or about March 28, 2021, actual Consolidated EBITDA for such Fiscal Quarter divided by 25%, (y) in the case of the Fiscal Quarter ending on or about June 27, 2021, actual Consolidated EBITDA for the period of two (2) consecutive Fiscal Quarters then ending divided by 50%, and (z) in the case of the Fiscal Quarter ending on or about September 26, 2021, actual Consolidated EBITDA for the period of three (3) consecutive Fiscal Quarters then ending divided by 75% (the “Annualized EBITDA”); provided that for all other purposes of calculating Consolidated Leverage Ratio (including, without limitation, determining access to, or the amounts of, various baskets set forth herein), Consolidated EBITDA included in clause (ii) above shall be determined based on the actual amounts for the applicable four consecutive Fiscal Quarter period (and not, for the avoidance of doubt, the Annualized EBITDA).

 

1.4Amendment to the definition of “Maturity Date”.  The definition of “Maturity Date” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:  

 

“Maturity Date” means the earliest to occur of (a) February 2, 2023, (b) the date of termination of the entire Commitment by the Borrower pursuant to Section 2.5, and (c) the date of termination of the Commitment pursuant to Section 9.2(a).

 

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

 

“Minimum Scheduled Cash” means:

 

(a) for each month commencing May 2020 through and including September 2020, (i) fifty percent (50%) of the Net Cash Proceeds of any Equity Issuances by the Borrower or any of its Subsidiaries effected during such period (excluding any amounts required to be used to make prepayments on the Loans pursuant to Section 2.4(f)) in an aggregate amount not to exceed $15,000,000, plus (ii) the following amount applicable for each month through September 2020:

 

		
	
May 2020
	
$34,000,000

	
June 2020
	
$29,000,000

	
July 2020
	
$21,000,000

	
August 2020
	
$19,000,000

	
September 2020
	
$15,000,000

 

2

CHAR1\1754889v8

 

and (b) for each month commencing October 2020 through and including March 2021:

 

		
	
October 2020
	
$44,000,000

	
November 2020
	
$44,000,000

	
December 2020
	
$53,000,000

	
January 2021
	
$55,000,000

	
February 2021
	
$56,000,000

	
March 2021
	
$58,000,000

 

1.6Amendment to the definition of “Pro Forma Basis”.  The definition of “Pro Forma Basis” in Section 1.1 of the Credit Agreement is hereby amended by inserting the following new sentence at the end thereof:  

 

Notwithstanding the foregoing, with respect to the Fiscal Quarters ending on or about March 28, 2021, June 27, 2021 and September 26, 2021, Consolidated EBITDA shall be determined based on the actual amounts for the applicable four consecutive Fiscal Quarter period (and not, for the avoidance of doubt, the Annualized EBITDA).

 

1.7Amendment to Section 1.1.  The following new definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order to read as follows:

 

“Annualized EBITDA” has the meaning set forth in the definition of “Consolidated Leverage Ratio”.

 

“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to LIBOR for U.S. dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

 

“Benchmark Replacement Adjustment” means, with respect to any replacement of LIBOR with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time.

 

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark 

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Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).

 

“Benchmark Replacement Date” means the earlier to occur of the following events with respect to LIBOR: 

(a)in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of LIBOR permanently or indefinitely ceases to provide LIBOR; and 

(b)in the case of clause (c) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.

 

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to LIBOR: 

(a)a public statement or publication of information by or on behalf of the administrator of LIBOR announcing that such administrator has ceased or will cease to provide LIBOR, permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR; 

(b)a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for LIBOR, a resolution authority with jurisdiction over the administrator for LIBOR or a court or an entity with similar insolvency or resolution authority over the administrator for LIBOR, which states that the administrator of LIBOR has ceased or will cease to provide LIBOR permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR; or 

(c)a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR announcing that LIBOR is no longer representative.

“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders.

 

“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to LIBOR and solely to the extent that LIBOR has not been replaced with a Benchmark Replacement, the period (a) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement 

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has replaced LIBOR for all purposes hereunder in accordance with Section 4.8(c) and (b) ending at the time that a Benchmark Replacement has replaced LIBOR for all purposes hereunder pursuant to Section 4.8(c).

 

“Early Opt-in Election” means the occurrence of: 

(a)(i) a determination by the Administrative Agent or (ii) a notification by the Required Lenders to the Administrative Agent (with a copy to the Borrower) that the Required Lenders have determined that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 4.8(c) are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace LIBOR, and 

(b)(i) the election by the Administrative Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders or by the Required Lenders of written notice of such election to the Administrative Agent.

 

“Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.

 

“Fifth Amendment Effective Date” means October 26, 2020.

 

“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

 

“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website.

 

“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

 

“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

1.8Amendment to Section 2.4.  Section 2.4 of the Credit Agreement is hereby amended by deleting clause (f) thereof in its entirety. 

 

1.9Amendment to Section 4.8:  Section 4.8 of the Credit Agreement is hereby amended by inserting the following new clause (c) at the end thereof:

 

	
 
	

	
(c)Effect of Benchmark Transition Event.  

(i)Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent and the Borrower may amend this Agreement to replace LIBOR with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such 

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proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment. No replacement of LIBOR with a Benchmark Replacement pursuant to this Section 4.8(c) will occur prior to the applicable Benchmark Transition Start Date. 

(ii)Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement. 

(iii)Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (A) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (B) the implementation of any Benchmark Replacement, (C) the effectiveness of any Benchmark Replacement Conforming Changes and (D) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 4.8(c), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 4.8(c). 

(iv)Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a LIBOR Rate Loan of, conversion to or continuation of LIBOR Rate Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period, the component of the Base Rate based upon LIBOR will not be used in any determination of the Base Rate.

 

1.10Amendment to Section 6.4.  The proviso at the end of Section 6.4 of the Credit Agreement is hereby amended and restated in its entirety to reach as follows:

 

; provided that, for purposes of this Section 6.4, only from the Fifth Amendment Effective Date until March 31, 2021, the impacts of the existing coronavirus pandemic on the business, operations, properties, assets, liabilities or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole that have already occurred and were disclosed in writing to the Administrative Agent and the Lenders prior to the Fifth Amendment Effective Date shall be disregarded for purposes of determining whether a Material Adverse Effect has occurred.  

 

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1.11Amendment to Section 7.1(xvii).  Section 7.1(xvii) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(xvii)Monthly Reports. As soon as practicable and in any event within ten (10) days after the end of each month (commencing with the month ended May 31, 2020 through the month ending March 31, 2021), (x) a same store sales report in comparative form, the corresponding figures for the corresponding month of the previous Fiscal Year and (y) a calculation of Liquidity and demonstrating compliance with Section 8.6(c) as of the end of such month, in each case, in form and detail reasonably acceptable to the Administrative Agent.

 

1.12Amendment to Section 8.5.  Section 8.5 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

SECTION 8.5  Restricted Junior Payments.  The Credit Parties shall not, and shall not permit any of their Subsidiaries to, directly or indirectly, declare, order, pay, make or set apart any sum for any Restricted Junior Payment; provided that, so long as no Event of Default shall have occurred and be continuing or shall be caused thereby, the Borrower may pay dividends on or repurchase shares of its common stock (i) in an aggregate amount for such dividends and repurchases during the period from the Closing Date to and including the Maturity Date not to exceed $100,000,000 if the Consolidated Leverage Ratio as of the end of the immediately preceding Fiscal Quarter (before and after giving effect to the proposed dividends and/or share repurchases on a Pro Forma Basis) is greater than or equal to 2.00:1.00 and (ii) in an unlimited amount if the Consolidated Leverage Ratio as of the end of the immediately preceding Fiscal Quarter (before and after giving effect to the proposed dividends and/or share repurchases on a Pro Forma Basis) is less than 2.00:1.00; provided further that, notwithstanding the foregoing, as of the Second Amendment Effective Date, no Restricted Junior Payments shall be permitted to be made hereunder to the extent that the Consolidated Leverage Ratio is greater than or equal to 2.50:1.00 (before and after giving effect to the proposed Restricted Junior Payments on a Pro Forma Basis) for the most recently ended Fiscal Quarter commencing with the second Fiscal Quarter of the 2020 Fiscal Year as determined based on the actual amount of Consolidated EBITDA for the applicable four consecutive Fiscal Quarter period then ended (and not, for the avoidance of doubt, the Annualized EBITDA).  

 

1.13Amendment to Section 8.6(b).  The last sentence of Section 8.6(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Notwithstanding the foregoing, the covenant in this Section 8.6(b) shall not be tested as of the end of the Fiscal Quarters ending on or about June 28, 2020, September 27, 2020 and December 27, 2020 (but otherwise shall be deemed to be in effect with respect to each such Fiscal Quarter end for all provisions under this Agreement and the other Loan Documents that refer to compliance or pro forma compliance with Section 8.6 (it being understood and agreed that the maximum Consolidated Leverage Ratio for such Fiscal Quarters for such purposes shall be 5.00 to 1.00)).

 

1.14Amendment to Section 8.6(c).  Section 8.6(c) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(c)Minimum Liquidity.  As of the last day of any month ending during the period commencing May 1, 2020 and ending March 31, 2021, permit Liquidity to be less than the Minimum Scheduled Cash. 

 

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1.15Amendment to Section 8.14.  Section 8.14 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

SECTION 8.14  Consolidated Capital Expenditures.  The Credit Parties shall not, and shall not permit their Subsidiaries to, make or incur Consolidated Capital Expenditures; provided, however, (i) the Credit Parties and their Subsidiaries may make Consolidated Capital Expenditures in any Fiscal Year in an amount not to exceed 75% of Consolidated EBITDA for the immediately preceding Fiscal Year if the Consolidated Leverage Ratio as of the end of the immediately preceding Fiscal Quarter (before and after giving effect to the proposed Consolidated Capital Expenditure on a Pro Forma Basis) is greater than or equal to 1.50:1.00 and (ii) the Credit Parties and their Subsidiaries may make Consolidated Capital Expenditures in any Fiscal Year in an unlimited amount if the Consolidated Leverage Ratio as of the end of the immediately preceding Fiscal Quarter (before and after giving effect to the proposed Consolidated Capital Expenditure on a Pro Forma Basis) is less than 1.50:1.00; provided further that, notwithstanding the foregoing, as of the Second Amendment Effective Date, no Consolidated Capital Expenditures (other than Consolidated Maintenance Capital Expenditures) shall be permitted to be made or incurred hereunder to the extent that the Consolidated Leverage Ratio is greater than or equal to 2.50:1.00 (before and after giving effect to the proposed Consolidated Capital Expenditures) for the most recently ended Fiscal Quarter commencing with the second Fiscal Quarter of the 2020 Fiscal Year as determined based on the actual amount of Consolidated EBITDA for the applicable four consecutive Fiscal Quarter period then ended (and not, for the avoidance of doubt, the Annualized EBITDA).  For the avoidance of doubt, nothing in the immediately foregoing proviso shall prevent any Credit Party from paying any invoice owed in respect of any Consolidated Capital Expenditure for work commenced prior to the Second Amendment Effective Date (to the extent otherwise permitted herein).  Notwithstanding the foregoing, during the period commencing on the Fifth Amendment Effective Date and ending on the date in which the Borrower demonstrates that the Consolidated Leverage Ratio is less than 2.50:1.00 as determined based on the actual amount of Consolidated EBITDA for the applicable four consecutive Fiscal Quarter period then ended (and not, for the avoidance of doubt, the Annualized EBITDA) as set forth above in this Section 8.14 (the “Capital Expenditure Basket Period”), the Credit Parties and their Subsidiaries may make Consolidated Capital Expenditures (other than Consolidated Maintenance Capital Expenditures) in any Fiscal Quarter (commencing with the Fiscal Quarter ending December 27, 2020) in an amount not to exceed 75% of the amount by which Consolidated EBITDA for the immediately preceding Fiscal Quarter exceeds $7,500,000; provided, that if the Credit Parties and their Subsidiaries do not utilize the entire amount of Consolidated Capital Expenditures permitted in any such Fiscal Quarter, the Credit Parties may carry forward such unutilized amount to increase the aggregate amount of Consolidated Capital Expenditures permitted to be made under this Section 8.14 during the Capital Expenditure Basket Period; and provided further, that nothing in this Section 8.14 will prohibit the Credit Parties and their Subsidiaries from making Consolidated Maintenance Capital Expenditures after the Fifth Amendment Effective Date.

 

1.16Amendment to Schedule 1.1(b).  Schedule 1.1(b) to the Credit Agreement is hereby amended and restated in its entirety to read as provided on Schedule 1.1(b) attached hereto.  

 

 

ARTICLE II

COMMITMENT REDUCTION

 

2.1Commitment Reduction.  Each Lender by its execution of this Amendment, hereby acknowledges, agrees and confirms its Commitment in the aggregate principal amount for such Lender as set forth on Schedule 1.1(b) attached hereto and its obligation to make its portion of the Revolving Credit 

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Loans to the Borrower from time to time in accordance with the provisions of the Credit Agreement.  Each Lender acknowledges, agrees and confirms that Schedule 1.1(b) attached hereto reflects the Commitments of the Lenders under the Credit Agreement as of the Fifth Amendment Effective Date after giving effect to this Amendment.  Pursuant to Section 3.1(c) herein, the Borrower shall repay to the Administrative Agent, for the account of the Lenders, the amount that the Revolving Credit Outstandings exceeds the Commitments after giving effect to the reduction of Commitments referenced in this Amendment on or prior to the Fifth Amendment Effective Date.

 

 

ARTICLE III

CONDITIONS

 

3.1Closing Conditions.  This Amendment shall be deemed effective as of the date set forth above (the “Fifth Amendment Effective Date”) upon satisfaction of the following conditions (in form and substance reasonably acceptable to the Administrative Agent):

 

(a)Executed Amendment.  The Administrative Agent shall have received a copy of this Amendment duly executed by each of the Credit Parties, the Administrative Agent and the Lenders.

 

(b)Closing Certificates; Etc.  The Administrative Agent shall have received each of the following:

 

(i)Officer’s Certificate.  A certificate from a Responsible Officer of the Borrower to the effect that (A) after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing and (B) each of the representations and warranties of the Credit Parties contained in Article VI of the Credit Agreement are true and correct in all material respects, except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true and correct in all respects, as of the date hereof (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date).

 

(ii)Organizational Documents.  The Administrative Agent shall have received a certificate from each Credit Party certifying that attached thereto is a true, correct and complete copy of (A) the articles or certificate of incorporation or formation of such Credit Party and all amendments thereto, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of incorporation or formation (or certifying that no changes have been made to such articles or certificate of incorporation or formation since the Closing Date (or such later date, if applicable, as such documents were delivered to the Administrative Agent)), (B) the bylaws or other governing document of such Credit Party as in effect on the Fifth Amendment Effective Date (or certifying that no changes have been made to such bylaws or governing document since the Closing Date (or such later date, if applicable, as such documents were delivered to the Administrative Agent)) and (C) resolutions duly adopted by the board of directors (or other governing body) of such Credit Party authorizing and approving the transactions contemplated by this Agreement and the execution, delivery and performance of this Agreement.

 

(iii)Certificates of Good Standing.  Certificates as of a recent date of the good standing of each Credit Party under the laws of its jurisdiction of organization.

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(c)Mandatory Repayment.  The Borrower shall repay to the Administrative Agent, for the account of the Lenders, the amount that the Revolving Credit Outstandings exceeds the Commitments after giving effect to the reduction of Commitments referenced in this Amendment.

 

(d)Amendment Fees.  The Administrative Agent shall have received, for the account of each Lender, an amendment fee in an amount equal to 15 basis points on the aggregate amount the Commitment of such Lender as of the Fifth Amendment Effective Date (after giving effect to this Amendment).

 

(e)Other Fees and Out of Pocket Costs.  The Borrower shall have paid any and all reasonable out-of-pocket costs incurred by the Administrative Agent (including the fees and expenses Moore & Van Allen PLLC as legal counsel to the Administrative Agent), and all other fees and other amounts payable to the Administrative Agent, in each case in connection with the negotiation, preparation, execution and delivery of this Amendment.

 

 

ARTICLE IV
MISCELLANEOUS

 

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

 

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

 

(a)Each Credit Party has all requisite power and authority and has taken all necessary corporate and other action, to authorize the execution, delivery and performance of this Amendment in accordance with its terms.  

 

(b)This Amendment has been duly executed and delivered by the duly authorized officers of each Credit Party that is a party hereto and constitutes the legal, valid and binding obligation of each Credit Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

(c)No consent or authorization of, filing with, or other act in respect of, an arbitrator or Governmental Authority and no consent of any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Amendment.

 

(d)After giving effect to this Amendment, the representations and warranties set forth in the Loan Documents are true and correct in all material respects as of the date hereof (except for (i) those which expressly relate to an earlier date and (ii) those that are qualified by materiality or reference to Material Adverse Effect, which are true and correct in all respects). 

 

(e)After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

 

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

 

(g)Except as specifically provided in this Amendment, the Obligations of the Credit Parties are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

 

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

 

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

 

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

 

4.6Expenses.  The Borrower agrees to pay all reasonable costs and expenses of Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Administrative Agent’s legal counsel.

 

4.7Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

 

4.8Counterparts; Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as delivery of a manually executed counterpart of this Amendment.

 

4.9GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

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

 

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4.11Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, services of process and waiver of jury trial provisions set forth in Sections 11.5 and 11.6 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

 

[Signature pages to follow]

 

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

 

BORROWER:RUTH’S HOSPITALITY GROUP, INC.

By: /s/ Arne G. Haak
Name: Arne G. Haak
Title:  SVP, Chief Financial Officer

GUARANTORS:RCSH OPERATIONS, INC.

By: /s/ Arne G. Haak
Name: Arne G. Haak
Title:  SVP, Chief Financial Officer

RCSH OPERATIONS, LLC

By: /s/ Arne G. Haak
Name: Arne G. Haak
Title:  SVP, Chief Financial Officer

RUTH’S CHRIS STEAK HOUSE BOSTON, LLC

By: /s/ Arne G. Haak
Name: Arne G. Haak
Title:  SVP, Chief Financial Officer

RUTH’S CHRIS STEAK HOUSE FRANCHISE, LLC

By: /s/ Arne G. Haak
Name: Arne G. Haak
Title:  SVP, Chief Financial Officer

RCSH MANAGEMENT, INC.

By: /s/ Arne G. Haak
Name: Arne G. Haak
Title:  SVP, Chief Financial Officer

RHGI GIFTCO, INC.

By: /s/ Arne G. Haak
Name: Arne G. Haak
Title:  SVP, Chief Financial Officer

 

 

CHAR1\1754889v8

 

 

 

 

AGENT AND LENDERS:WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Administrative Agent,

Swingline Lender, Issuing Lender and Lender

 

 

By: /s/ Denise Crouch
Name: Denise Crouch
Title:  Vice President

 

RUTH’S HOSPITALITY GROUP, INC.

FIFTH AMENDMENT

CHAR1\1754889v8

 

TD BANK, N.A.,

as Lender

 

 

By: /s/ Sterling Harrell
Name: Sterling Harrell
Title:  Director

 

 

 

 

 

RUTH’S HOSPITALITY GROUP, INC.

FIFTH AMENDMENT

CHAR1\1754889v8

 

JPMORGAN CHASE BANK, N.A.,

as Lender

 

 

By: /s/ Caroline Eagan
Name: Caroline Eagan
Title:  Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RUTH’S HOSPITALITY GROUP, INC.

FIFTH AMENDMENT

CHAR1\1754889v8

 

SCHEDULE 1.1(b)

 

Commitments and Commitment Percentages

 

 

			
	
Lender
	
Commitment
	
Commitment Percentage

	
Wells Fargo Bank, National Association
	
 

$46,666,666.67

 
	
38.888888889%

	
TD Bank, N.A.
	
 

$40,000,000.00

 
	
33.333333333%

	
JPMorgan Chase Bank, N.A.
	
 

$33,333,333.33

 
	
27.777777778%

	
Total:
	
 

$120,000,000.00

 
	
100.000000000%

 

 

 

RUTH’S HOSPITALITY GROUP, INC.

FIFTH AMENDMENT

CHAR1\1754889v8

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