Document:

Exhibit 10.32

 

GUARANTY AND COLLATERAL AGREEMENT

 

(APPLEBEE’S
HOLDINGS LLC)

 

THIS GUARANTY AND COLLATERAL AGREEMENT (this “Agreement”)
is made and entered into as of November 29, 2007, by and among APPLEBEE’S
HOLDINGS LLC, a Delaware limited liability company (the “Guarantor”),
APPLEBEE’S ENTERPRISES LLC, a Delaware limited liability company (the “Master
Issuer”) and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Indenture
Trustee”).

 

This Agreement constitutes the entire and
full agreement of the parties with respect to the subject matter hereof. Capitalized
terms used but not defined herein are defined in (or incorporated by reference
into) the Base Indenture (the “Base Indenture”), dated as of the date
hereof, by and among APPLEBEE’S RESTAURANTS NORTH LLC, a Delaware limited
liability company, APPLEBEE’S RESTAURANTS MID-ATLANTIC LLC, a Delaware limited
liability company, APPLEBEE’S RESTAURANTS WEST LLC, a Delaware limited
liability company, APPLEBEE’S RESTAURANTS VERMONT, INC., a Vermont
corporation, APPLEBEE’S RESTAURANTS TEXAS LLC, a Texas limited liability
company, APPLEBEE’S RESTAURANTS INC., a Kansas corporation, APPLEBEE’S
RESTAURANTS KANSAS LLC, a Kansas limited liability company (collectively, the “Restaurant
Holders”), the Master Issuer, APPLEBEE’S IP LLC, a Delaware limited
liability company (the “IP Holder”) (each of the Master Issuer, the IP
Holder and the Restaurant Holders is a “Co-Issuer” and are,
collectively, the “Co-Issuers”), and the Indenture Trustee, as amended
and supplemented by the series supplement relating to the Series 2007-1
Notes and any other Series of Notes issued pursuant thereto (each, a “Series Supplement”,
and together with the Base Indenture, the “Indenture”).

 

PRELIMINARY
STATEMENT

 

WHEREAS, the Co-Issuers may issue one or
more Series of Notes pursuant to the Indenture on and after the Closing
Date; and

 

WHEREAS, the issuance of any Series of
Notes pursuant to the Indenture is conditioned upon, among other things, the
Guarantor’s guaranty of the Co-Issuers’ obligations under the Indenture, the
Notes and the other Transaction Documents (other than Leases) to which the
Co-Issuers are parties as provided herein.

 

NOW, THEREFORE, in consideration of the
foregoing preliminary statement, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by the parties
hereto, it is hereby agreed as follows:

 

 

ARTICLE I

GUARANTY

 

Section 1.1                                      Guaranty. The Guarantor
hereby unconditionally and irrevocably guarantees (the “Guaranty”) the
obligations of each of the Co-Issuers under the Indenture, all Notes issued
thereunder and the other Transaction Documents (other than Leases) to
which the Co-Issuers are parties (the “Guaranteed
Obligations”). The Guaranty shall be a continuing and irrevocable guaranty
of payment of all amounts due by each of the
Co-Issuers of the Guaranteed Obligations, and the Guarantor shall remain liable on its obligations hereunder
until the payment in full of any amounts due thereunder. The Guarantor hereby
represents that it has all requisite limited liability company power and
authority to undertake its obligations set forth in this Section 1.1
and to guaranty the full and prompt payment of any of the Co-Issuers in respect
of the Guaranteed Obligations.

 

Section 1.2                                      Liability
of Guarantor Absolute. The
Guarantor agrees that its obligations under the Guaranty are irrevocable,
absolute, independent and unconditional and shall not be affected by any
circumstance that constitutes a legal or equitable discharge of a guarantor or
surety. In furtherance of the foregoing and without limiting the generality
thereof, the Guarantor agrees as follows: 
(a)  the obligations of the Guarantor hereunder are independent of
the obligations of the Co-Issuers under the Indenture, the Notes or any other
Transaction Documents; and (b) the obligations of the Guarantor hereunder
shall be valid and enforceable and shall not be subject to any reduction,
limitation, impairment, discharge or termination for any reason, including
without limitation, the occurrence of any of the following, whether or not the
Guarantor shall have had notice or knowledge of any of them:  (i) any failure or omission to assert or
enforce or agreement or election not to assert or enforce, or the stay or
enjoining, by order of court, by operation of law or otherwise, of the exercise
or enforcement of, any claim or demand or any right, power or remedy (whether
arising at law, in equity or otherwise) with respect to any failure of any of
the Co-Issuers under the Indenture or under any of the other Transaction
Documents; (ii) any rescission, waiver, amendment or modification of, or
any consent to departure from any of the terms or provisions (including,
without limitation, provisions relating to events of default) of the other
Transaction Documents; (iii) any amendment to the documents governing the
formation or organization and operation of the Securitization Entities or the
consent of any Co-Issuer to any such amendment; or (iv) any other act or
thing or omission, or delay to do any other act or thing, which may or
might in any manner or to any extent vary the risk of the Guarantor as an
obligor in respect of the Guaranteed Obligations.

 

Section 1.3                                      Waivers
by the Guarantor. The Guarantor
agrees not to assert, and hereby waives, all rights (whether by counterclaim,
set-off or otherwise) and defenses (including, without limitation, the defense
of fraud), whether acquired by subrogation, assignment or otherwise, to the
extent that such rights and defenses may be used by the Guarantor to avoid
performance hereunder, including but not limited to:  (a) any defense arising by reason of the
incapacity, lack of authority or any disability or other defense of any
Co-Issuer including, without limitation, any defense based on or arising out of
the lack of validity or the unenforceability of the Transaction Documents or by
cessation of liability of any Co-Issuer for any cause other than the full
performance of all obligations of such Co-Issuer set forth in the Transaction
Documents and payment in full of all amounts due thereunder; (b) any
defense based on any Co-Issuer’s errors or omissions in the performance of its
obligations or payment of amounts due under the Transaction Documents;  (c) any defenses or benefits that may be
derived from or afforded by law that would limit the liability of or exonerate
the Guarantor, (d) any legal or equitable discharge of the Guarantor’s
obligations hereunder; (e) the benefit of any statute of limitations
affecting the Guarantor’s liability hereunder or the enforcement hereof;  (f) notices, demands, presentments,
protests, notices of protest, notices of dishonor and notices of any action or
inaction, including acceptance of this Agreement, 

 

2

 

notices of default under any of the other Transaction Documents; and (g) any
rights to set-offs, recoupments and counterclaims.

 

Section 1.4                                      Payments,
Etc. No payment made by any of the Co-Issuers, the Guarantor, any other
guarantor or any other Person or received or collected by the Indenture Trustee
or any other Secured Party from any of the Co-Issuers, the Guarantor, any other
guarantor or any other Person by virtue of any action or proceeding or any set
off or appropriation or application at any time or from time to time in
reduction of or in payment of the Guaranteed Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of the Guarantor
which shall, notwithstanding any such payment (other than any payment made by
the Guarantor in respect of the Guaranteed Obligations or any payment received
or collected from the Guarantor in respect of the Guaranteed Obligations),
remain liable hereunder for the Guaranteed Obligations up to the maximum
liability of the Guarantor hereunder until all of the Notes and other
Guaranteed Obligations have been indefeasibly paid in full.

 

Section 1.5                                      No
Subrogation. Notwithstanding any payment made by the Guarantor hereunder or
any set off or application of funds of the Guarantor by the Indenture Trustee
or any other Secured Party, the Guarantor shall not be entitled to be
subrogated to any of the rights of the Indenture Trustee or any other Secured
Party against the Co-Issuers or any other guarantor or any collateral security
or guarantee or right of offset held by the Indenture Trustee or any other
Secured Party for the payment of the Guaranteed Obligations, nor shall the
Guarantor seek or be entitled to seek any contribution or reimbursement from
the Co-Issuers or any other guarantor in respect of payments made by the
Guarantor hereunder, until all of the Notes and other Guaranteed Obligations
have been indefeasibly paid in full. If any amount shall be paid to the
Guarantor on account of such subrogation, contribution or reimbursement rights
at any time when all of the Guaranteed Obligations shall not have been paid in
full, such amount shall be held by the Guarantor in trust for the Indenture
Trustee and the other Secured Parties, segregated from other funds of the
Guarantor, and shall, forthwith upon receipt by the Guarantor, be turned over
to the Indenture Trustee in the exact form received by the Guarantor (duly
endorsed by the Guarantor to the Indenture Trustee, if required), to be applied
against the Guaranteed Obligations, whether matured or unmatured, in such order
as the Indenture Trustee may determine in accordance with the Indenture.

 

Section 1.6                                      Reinstatement.
The guarantee contained in this ARTICLE I shall continue to be
effective, or be reinstated, as the case may be, if at any time payment,
or any part thereof, of any of the Guaranteed Obligations is rescinded or
must otherwise be restored or returned by the Indenture Trustee or any other
Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of any of the Co-Issuers or the Guarantor, or upon or as a
result of the appointment of a receiver, intervenor or conservator of, or
trustee or similar officer for, any of the Co-Issuers or the Guarantor or any
substantial part of its property, or otherwise, all as though such payments
had not been made.

 

ARTICLE II

PLEDGE

 

Section 2.1                                      Pledge.         To secure its obligations
under the Guaranty above, the Guarantor hereby pledges and collaterally grants
and assigns to the Indenture Trustee (the “Pledge”) a continuing
security interest in all of its assets, including its right, title and interest
in, to and under, in each case, whether now owned or existing, or hereafter
acquired or arising, in all securities, loans, investments, accounts, chattel
paper, money, deposit accounts, instruments, financial assets, documents,
investment property, general intangibles, letter of credit rights, and other
supporting obligations (in each case, as defined in the UCC), and other
property of any type or nature in which the Guarantor has an interest, 

 

3

 

relating thereto and all proceeds with respect to the foregoing (the “Pledged
Collateral”). Such Pledged Collateral shall include, but is not limited to
the Guarantor’s 100% membership interest in the Master Issuer.

 

Section 2.2                                      Further
Assurances. Prior to or concurrently with the execution of this Agreement,
and thereafter at any time and from time to time, the Guarantor shall execute
and deliver to the Indenture Trustee all financing statements, continuation
financing statements, assignments, certificates and documents of title,
affidavits, reports, notices, schedules of account, letters of authority,
further pledges, powers of attorney and all other documents (collectively, the “Perfection
Documents”) in form and substance reasonably satisfactory to the
Indenture Trustee, and take such other action which the Indenture Trustee may request,
to perfect and continue perfected and to create and maintain the first priority
status of the Indenture Trustee’s security interest hereunder in the Pledged
Collateral. The Guarantor hereby authorizes the Indenture Trustee to file any
financing statement it reasonably deems necessary or advisable to perfect the
security interests granted herein and such financing statements may describe
the collateral in any manner Indenture Trustee reasonably deems necessary or
advisable. Following the occurrence and during the continuance of an Event of
Default, the Guarantor hereby irrevocably makes, constitutes and appoints the
Indenture Trustee (and any of the Indenture Trustee’s officers or employees or
agents designated by the Indenture Trustee) as the Guarantor’s true and lawful
attorney with power to sign the name of the Guarantor on all or any of the
Perfection Documents which the Indenture Trustee determines must be executed,
filed, recorded or sent in order to perfect or continue perfected the Indenture
Trustee’s security interest hereunder in the Pledged Collateral in any
jurisdiction. Such power, being coupled with an interest, is irrevocable until
all of the Guaranteed Obligations have been indefeasibly paid in full or
otherwise terminated in accordance with the Indenture and/or the Notes.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

The Guarantor 
makes the following representations and warranties to the Indenture
Trustee which shall be continuing representations and warranties so long as any
Guaranteed Obligation shall remain outstanding and unsatisfied or could become
due or unsatisfied:

 

Section 3.1                                      Organization
and Good Standing. The Guarantor (i) is a limited liability company or
a corporation, duly formed and organized, validly existing and in good standing
under the laws of the State of Delaware, (ii) is duly qualified to do
business as a foreign limited liability company or corporation and in good
standing under the laws of each jurisdiction where the character of its
property, the nature of its business or the performance of its obligations
hereunder make such qualification necessary, except where the failure to be so
qualified could not reasonably be expected to have a Material Adverse Effect
and (iii) has the power and authority to own its properties and to conduct
its business as such properties are currently owned and such business is
currently conducted and to perform its obligations under this Agreement
and any other Transaction Document to which it is a party.

 

Section 3.2                                      Power
and Authority; No Conflicts. The
execution and delivery by the Guarantor of this Agreement and any other
Transaction Document to which it is a party and its performance of, and
compliance with, the terms hereof and any other Transaction Document to which
it is a party are within the power of the Guarantor and have been duly
authorized by all necessary limited liability company or corporate action on
the part of the Guarantor. Neither the execution and delivery of this
Agreement, nor the consummation of the transactions herein contemplated to be
consummated by the Guarantor, nor compliance with the provisions hereof, will
conflict with or result in a breach of, or constitute a default (or an event
which, with notice or lapse of time, or both, would constitute a breach or
default) under, any of the provisions of any law, governmental rule,
regulation, judgment, decree or order 

 

4

 

binding on the Guarantor or its properties, or the organizational
documents and agreements of the Guarantor, or any of the provisions of any
material indenture, mortgage, lease, contract or other instrument to which the
Guarantor is a party or by which it or its property is bound or result in the
creation or imposition of any lien, charge or encumbrance upon any of its
property pursuant to the terms of any such indenture, mortgage, leases,
contract or other instrument.

 

Section 3.3                                      Consents.
The Guarantor is not required to obtain the consent of any other party or the
consent, license, approval or authorization of, or, except for the filing of
financing statements, registration or declaration with, any Governmental
Authority in connection with the execution, delivery or performance by the
Guarantor of this Agreement and any other Transaction Document to which it is a
party, or the validity or enforceability of this Agreement and any other
Transaction Document to which it is a party.

 

Section 3.4                                      Due
Execution and Delivery. This Agreement and any other Transaction Document
to which it is a party has been duly executed and delivered by the Guarantor
and constitutes a legal, valid and binding instrument enforceable against the
Guarantor in accordance with its terms (subject to applicable insolvency laws
and to general principles of equity).

 

Section 3.5                                      Due
Qualification. The Guarantor has obtained or made all material licenses,
registrations, consents, approvals, waivers and notifications of creditors,
lessors and other Persons, in each case, in connection with the execution and
delivery of this Agreement and any other Transaction Document to which it is a
party by the Guarantor, and the consummation by the Guarantor of all the transactions
herein contemplated to be consummated by the Guarantor and the performance of
its obligations hereunder and under any other Transaction Document to which it
is a party.

 

Section 3.6                                      Good
Title. The Guarantor has good title to the Pledged Collateral pledged by
it, free and clear of all Liens and contractual restrictions other than
Permitted Liens and those in favor of the Indenture Trustee. None of the
Pledged Collateral shall be subject to any option to purchase or similar right
of any Person, expect as permitted under the Indenture, the Notes or any other
Transaction Documents. The security interest in the Pledged Collateral granted
to the Indenture Trustee pursuant to this Agreement constitutes a valid and
perfected first priority security interest and Lien subject to the Lien of no
other Person other than Permitted Liens.

 

Section 3.7                                      Equity
Interest. The capital stock, shares, securities, membership interests,
partnership interests and other ownership interests (collectively, the “Pledged
Equity Interests”) constituting the Pledged Collateral constitute and shall
at all times constitute one hundred percent (100%) of the issued and
outstanding capital stock, membership interests, partnership interests or other
ownership interests, as applicable, of the Guarantor in the Master Issuer.

 

Section 3.8                                      No
Restriction. There are no restrictions upon the creation and perfection of
a security interest on the Pledged Collateral as of the Closing Date that have
not been duly waived and the Guarantor has the power and authority and right to
create and perfect such security interest the Pledged Collateral owned by the
Guarantor free of any encumbrances other than Permitted Liens and without
obtaining the consent of any other Person which consent has not been duly obtained.

 

5

 

ARTICLE IV

COVENANTS

 

Section 4.1                                      No
Adverse Action. The Guarantor shall not take or permit to be taken any
action which could reasonably be expected to have a material adverse effect on
the aggregate value of the Pledged Collateral or on the security interests
created hereby.

 

Section 4.2                                      Defense.
The Guarantor shall defend the Pledged Collateral against all Persons at any
time claiming any interest therein.

 

Section 4.3                                      Compliance
with Law. The Guarantor shall comply with all applicable law in respect of
the Pledged Collateral unless any noncompliance would not individually or in
the aggregate result in a Material Adverse Effect.

 

Section 4.4                                      Taxes.
The Guarantor shall pay any and all material taxes, duties, fees or imposts of
any nature imposed by any Governmental Authority on any of the Pledged
Collateral, except (i) to the extent contested in good faith if a reserve
with respect thereto has been provided on its books in conformity with GAAP, where
applicable and (ii) other past due or delinquent taxes at any time in an
aggregate amount of less that $100,000.

 

Section 4.5                                      Additional
Collateral. To the extent, following the date hereof, the Guarantor
acquires additional assets constituting Pledged Collateral, such additional
Pledged Collateral shall be subject to the terms hereof and, upon such
acquisition, shall be deemed to be hereby pledged to the Indenture Trustee and
the Guarantor shall thereupon deliver to the Indenture Trustee any documents necessary
to implement the provisions and purposes of this Agreement as the Indenture
Trustee may reasonably request. Notwithstanding the foregoing, it is
understood and agreed that the security interest of the Indenture Trustee shall
attach to the Guarantor’s ownership interests to the extent provided in this
Agreement immediately upon the Guarantor’s acquisition of rights therein and
shall not be affected by the failure of the Guarantor to deliver any related
documentation as required hereby.

 

Section 4.6                                      No
Transfer; No Lien. During the term of this Agreement, the Guarantor shall
not (i) sell, assign, replace, convert, retire, transfer or otherwise
dispose of all or any portion of its Pledged Collateral in a manner that
violates this Agreement, provided that the Guarantor shall be permitted
at any time to distribute its interest in the IHOP Residual Certificate to
Applebee’s International, Inc., nor (ii) create, incur, assume or
suffer to exist any Lien on the Pledged Collateral except Permitted Liens and the
Indenture Trustee’s Lien granted by this Agreement.

 

Section 4.7                                      Indebtedness.
The Guarantor shall not incur Debt except as expressly permitted under the
terms and provisions of this Agreement, the Indenture and any other Transaction
Document.

 

Section 4.8                                      Maintenance
of Office. The Guarantor will maintain an office or agency (which may be
an office of the Indenture Trustee, the Registrar or co-registrar) in the
United States where notices and demands to or upon the Guarantor in respect of
this Agreement may be served. The Guarantor will give prompt written
notice to the Indenture Trustee and each Insurer of the location, and any
change in the location, of such office or agency. If at any time the Guarantor
shall fail to maintain any such required office or agency or shall fail to
furnish the Indenture Trustee and each Insurer with the address thereof, such
presentations, surrenders, notices and demands may be made or served c/o
the Indenture Trustee at the Corporate Trust Office and the Guarantor hereby designates
the applicable Corporate Trust Office as one such office or agency of the
Guarantor.

 

Section 4.9                                      Covenants
in Base Indenture. The Guarantor acknowledges the terms and provisions of
the Base Indenture and acknowledges that it is a Securitization Entity as
defined thereunder. The Guarantor, as a Securitization Entity, agrees to be
bound by the terms and provisions 

 

6

 

thereof which purport to limit the actions of the Securitization
Entities, to the same extent as if fully set forth herein, including without
limitation the covenants set forth in Sections 7.7, 7.8 and 7.9 of the Base
Indenture. The Guarantor further agrees to observe the covenants set forth in Section 7.13
of the Base Indenture to the same extent as if it were a Co-Issuer, including
without limitation the covenants regarding maintenance of separate existence,
and to take, or refrain from taking as the case may be, each action that
is required to be taken or not taken on its part in order for the
representations and warranties set forth in Section 7.12 of the Base
Indenture to be true and correct with respect to the Guarantor.

 

Section 4.10                                Further
Assurances.

 

(a)                                  The Guarantor will do such
further acts and things, and execute and deliver to the Indenture Trustee and
the Insurers, upon the request of the Aggregate Controlling Party, such
additional assignments, agreements, powers and instruments, as are necessary or
desirable to obtain or maintain the security interest of the Indenture Trustee
in the Pledged Collateral on behalf of the Secured Parties as a perfected
security interest subject to no prior Liens (other than Permitted Liens), to
carry into effect the purposes of this Agreement or the other Transaction
Documents or to better assure and confirm unto the Indenture Trustee and the
other Secured Parties their rights, powers and remedies hereunder including,
without limitation, the filing of any financing or continuation statements or
amendments under the UCC in effect in any jurisdiction with respect to the
liens and security interests granted hereby. The Guarantor intends the security
interests granted pursuant to this Agreement in favor of the Secured Parties to
be prior to all other Liens (other than Permitted Liens) in respect of the
Pledged Collateral, and the Guarantor shall take all actions necessary to
obtain and maintain, in favor of the Indenture Trustee for the benefit of the
Secured Parties, a first lien on and a first priority, perfected security
interest in the Pledged Collateral (except with respect to Permitted Liens). If
the Guarantor fails to perform any of its agreements or obligations under
this Section 4.10, the Indenture Trustee may perform such
agreement or obligation, and the expenses of the Indenture Trustee incurred in
connection therewith shall be payable by the Guarantor upon the Indenture
Trustee’s demand therefor. The Indenture Trustee is hereby authorized to
execute and file without the signature of the Guarantor to the extent permitted
by applicable law any financing statements, continuation statements, amendments
or other instruments necessary or appropriate to perfect or maintain the
perfection of the Indenture Trustee’s security interest in the Pledged
Collateral.

 

(b)                                 If
any amount payable under or in connection with any of the Pledged Collateral
shall be or become evidenced by any promissory note, chattel paper or other
instrument, such note, chattel paper or instrument shall be deemed to be held
in trust and immediately pledged and within two (2) Business Days
physically delivered to the Indenture Trustee hereunder, and shall, subject to
the rights of any Person in whose favor a prior Lien has been perfected, be
duly endorsed in a manner satisfactory to the Indenture Trustee and delivered
to the Indenture Trustee promptly.

 

Section 4.11                                Legal
Name, Location Under Section 9-301 or 9-307.  The Guarantor shall not change its location
(within the meaning of Section 9-301 or 9-307 of the applicable UCC) or
its legal name without at least thirty (30) days’ prior written notice to the
Indenture Trustee, each Insurer and the Rating Agencies with respect to each Series of
Notes Outstanding. In the event that a 
Guarantor desires to so change its location or change its legal name,
the Guarantor will make any required filings and prior to actually changing its
location or its legal name the Guarantor will deliver to the Indenture Trustee
and each Insurer (i) an Officer’s Certificate and an Opinion of Counsel
confirming that all required filings have been made to continue the perfected
interest of the Indenture Trustee on behalf of the Secured Parties in the
Pledged Collateral under Article 9 of the applicable UCC or other
applicable 

 

7

 

law in respect of the new location or new legal name of the Guarantor
and (ii) copies of all such required filings with the filing information
duly noted thereon by the office in which such filings were made.

 

Section 4.12                                Stamp,
Other Similar Taxes and Filing Fees. The Guarantor shall indemnify and hold
harmless the Indenture Trustee and each Secured Party from any present or
future claim for liability for any stamp, documentary or other similar tax and
any penalties or interest and expenses with respect thereto, that may be
assessed, levied or collected by any jurisdiction in connection with this
Agreement, any other Transaction Document or any Pledged Collateral. The
Guarantor shall pay, indemnify and hold harmless each Secured Party against,
any and all amounts in respect of, all search, filing, recording and
registration fees, taxes, excise taxes and other similar imposts that may be
payable or determined to be payable in respect of the execution, delivery,
performance and/or enforcement of this Agreement or any other Transaction Document.

 

ARTICLE V

REMEDIAL PROVISIONS

 

Section 5.1                                      Rights
of Aggregate Controlling Party and Indenture Trustee upon Event of Default.

 

(a)                                  Proceedings
To Collect Money. In case the Guarantor shall fail forthwith to
pay such amounts due on this Agreement upon such demand, the Indenture Trustee
(at the direction of the Aggregate Controlling Party), in its own name and as
trustee of an express trust, may institute a Proceeding for the collection
of the sums so due and unpaid, and may prosecute such Proceeding to
judgment or final decree, and may enforce the same against the Guarantor
and collect in the manner provided by law out of the property of the Guarantor,
wherever situated, the moneys adjudged or decreed to be payable.

 

(b)                                 Other
Proceedings. If and whenever an Event of Default shall have
occurred and be continuing, the Indenture Trustee, at the direction of the
Aggregate Controlling Party pursuant to an Aggregate Controlling Party Order,
shall:

 

(i)                                      proceed
to protect and enforce its rights and the rights of the other Secured Parties,
by such appropriate Proceedings as the Indenture Trustee (at the direction of
the Aggregate Controlling Party) or the Aggregate Controlling Party shall deem
most effective to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Agreement or any other
Transaction Document or in aid of the exercise of any power granted therein, or
to enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Agreement or any other Transaction Document or by
law, including any remedies of a secured party under applicable law;

 

(ii)                                   (A) direct
the Guarantor to exercise (and the Guarantor agrees to exercise) all rights,
remedies, powers, privileges and claims of the Guarantor against any party to
any Transaction Document arising as a result of the occurrence of such Event of
Default or otherwise, including the right or power to take any action to compel
performance or observance by any such party of its obligations to the
Guarantor, and any right of the Guarantor to take such action independent of
such direction shall be suspended, and (B) if (x) the Guarantor shall
have failed, within ten (10) Business Days of receiving the direction of
the Indenture Trustee (given at the direction of the Aggregate Controlling
Party), to take commercially reasonable action to accomplish such directions of
the Indenture Trustee, (y) the Guarantor refuses to take such action 

 

8

 

or (z) the Aggregate Controlling Party reasonably
determines that such action must be taken immediately, take such previously
directed action (and any related action as permitted under this Agreement
thereafter determined by the Indenture Trustee or the Aggregate Controlling
Party to be appropriate without the need under this provision or any other
provision under this Agreement to direct the Guarantor to take such action);

 

(iii)                                institute
Proceedings from time to time for the complete or partial foreclosure of this
Agreement or, to the extent applicable, any other Transaction Document, with
respect to the Pledged Collateral; provided that the Indenture Trustee
shall not be required to take title to any real property in connection with any
foreclosure or other exercise of remedies hereunder and title to such property
shall instead be acquired in an entity designated and (unless owned by a third
party) controlled by the Aggregate Controlling Party; and/or

 

(iv)                               sell
all or a portion of the Pledged Collateral at one or more public or private
sales called and conducted in any manner permitted by law; provided, however,
that the Indenture Trustee shall not proceed with any such sale without the
prior written consent of the Aggregate Controlling Party and the Indenture
Trustee will provide notice to the Guarantor and each Holder of Notes of a
proposed sale of Pledged Collateral.

 

(c)                                  Sale
of Pledged Collateral. In connection with any sale of the Pledged
Collateral hereunder (which may proceed separately and independently from
the exercise of remedies under the Indenture) or under any judgment, order or
decree in any judicial proceeding for the foreclosure or involving the
enforcement of this Agreement or any other Transaction Document:

 

(i)                                      the
Indenture Trustee and/or any other Secured Party may bid for and purchase
the property being sold, and upon compliance with the terms of the sale may hold,
retain, possess and dispose of such property in its own absolute right without
further accountability;

 

(ii)                                   the
Indenture Trustee (at the direction of the Aggregate Controlling Party) may make
and deliver to the purchaser or purchasers a good and sufficient deed, bill of
sale and instrument of assignment and transfer of the property sold;

 

(iii)                                all
right, title, interest, claim and demand whatsoever, either at law or in equity
or otherwise, of the Guarantor of, in and to the property so sold shall be
divested; and such sale shall be a perpetual bar both at law and in equity
against the Guarantor, its successors and assigns, and against any and all
Persons claiming or who may claim the property sold or any part thereof
from, through or under the Guarantor or its successors or assigns; and

 

(iv)                               the
receipt of the Indenture Trustee or of the officer thereof making such sale
shall be a sufficient discharge to the purchaser or purchasers at such sale for
his or their purchase money, and such purchaser or purchasers, and his or their
assigns or personal representatives, shall not, after paying such purchase
money and receiving such receipt of the Indenture Trustee or of such officer
therefor, be obliged to see to the application of such purchase money or be in
any way answerable for any loss, misapplication or non-application thereof.

 

(d)                                 Application of Proceeds. Any amounts obtained by the
Indenture Trustee on account of or as a result of the exercise by the Indenture
Trustee of any right hereunder shall be held by the Indenture Trustee as
additional collateral for the repayment of the Guaranteed Obligations, shall be
deposited into the Collection Account and shall be applied as provided in
Articles X and XI of the Base Indenture; provided, however, that
unless otherwise provided in this Article V or Article V to the Base
Indenture, with respect to any distribution to any Series of Notes,
notwithstanding the provisions of 

 

9

 

Articles X and XI of the Base Indenture, such amounts shall be
distributed sequentially in order of alphabetical designation and pro rata
among each Series of Notes of the same alphabetical designation based upon
the Outstanding Principal Amount of the Notes of each such Series.

 

(e)                                  Additional
Remedies. In addition to any rights and remedies now or
hereafter granted hereunder or under applicable law with respect to the Pledged
Collateral, the Indenture Trustee shall have all of the rights and remedies of
a secured party under the UCC and similar laws as enacted in any applicable
jurisdiction.

 

(f)                                    Proceedings. The
Indenture Trustee may maintain a Proceeding even if it does not possess
any of the Notes or does not produce any of them in the Proceeding, and any
such Proceeding instituted by the Indenture Trustee shall be in its own name as
trustee. All remedies are cumulative to the extent permitted by law.

 

(g)                                 Power
of Attorney. To the fullest extent permitted by applicable
law, the Guarantor hereby grants to the Indenture Trustee an absolute and
irrevocable power of attorney, upon the occurrence and during the continuance
of an Event of Default, (i) to sign the name of the Guarantor on all or
any of the Perfection Documents which the Indenture Trustee determines must be
executed, filed, recorded or sent in order to perfect or continue perfected the
Indenture Trustee’s security interest hereunder in the Pledged Collateral in
any jurisdiction, and (ii) to sign any document which may be required
by the United States Patent and Trademark Office, United States Copyright
Office, any similar office or agency in each foreign country in which any IP
Asset is located, or any other Governmental Authority in order to effect an
absolute assignment of all right, title and interest in or to any IP Asset, and
record the same.

 

Section 5.2                                      Waiver
of Appraisal, Valuation, Stay and Right to Marshaling. To the extent it may lawfully
do so, the Guarantor for itself and for any Person who may claim through
or under it hereby:

 

(a)                                  agrees
that neither it nor any such Person will step up, plead, claim or in any manner
whatsoever take advantage of any appraisal, valuation, stay, extension or
redemption laws, now or hereafter in force in any jurisdiction, which may delay,
prevent or otherwise hinder (i) the performance, enforcement or
foreclosure of this Agreement, (ii) the sale of any of the Pledged
Collateral or (iii) the putting of the purchaser or purchasers thereof
into possession of such property immediately after the sale thereof;

 

(b)                                 waives
all benefit or advantage of any such laws;

 

(c)                                  waives
and releases all rights to have the Pledged Collateral marshaled upon any
foreclosure, sale or other enforcement of this Agreement; and

 

(d)                                 consents
and agrees that, subject to the terms of this Agreement, all the Pledged
Collateral may at any such sale be sold by the Indenture Trustee as an
entirety or in such portions as the Indenture Trustee may (upon direction
by the Aggregate Controlling Party) determine.

 

Section 5.3                                      Limited
Recourse. Notwithstanding any other provision of this Agreement, any
Insurance Agreement or any other Transaction Document or otherwise, the
liability of the Guarantor to the Secured Parties under or in relation to this
Agreement, any Insurance Agreement or any 

 

10

 

other Transaction Document or otherwise, is limited in recourse to the
Pledged Collateral. The Pledged Collateral having been applied in accordance
with the terms hereof, none of the Secured Parties shall be entitled to take
any further steps against the Guarantor to recover any sums due but still
unpaid hereunder or under any of the other agreements or documents described in
this Section 5.3, all claims in respect of which shall be
extinguished.

 

Section 5.4                                      Optional
Preservation of the Pledged Collateral. If the maturity of the Outstanding
Notes of each Series has been accelerated pursuant to Section 5.4 of
the Base Indenture following an Event of Default and such declaration and its
consequences have not been rescinded and annulled, the Indenture Trustee, at
the direction of the Aggregate Controlling Party pursuant to an Aggregate
Controlling Party Order, shall elect to maintain possession of such portion, if
any, of the Pledged Collateral as the Aggregate Controlling Party shall in its
discretion determine.

 

Section 5.5                                      Control
by the Aggregate Controlling Party. Notwithstanding any other provision
hereof, the Aggregate Controlling Party may cause the institution of and
direct the time, method and place of conducting any proceeding for any remedy
available to the Indenture Trustee or exercise any trust or power conferred on
the Indenture Trustee; provided that:

 

(a)                                  such
direction of time, method and place shall not be in conflict with any rule of
law or with this Agreement;

 

(b)                                 the
Aggregate Controlling Party may take any other action deemed proper by the
Aggregate Controlling Party that is not inconsistent with such direction (as
the same may be modified by the Aggregate Controlling Party); and

 

(c)                                  such
direction shall be in writing;

 

provided
further that, subject to Section 6.1 of the Base Indenture, the
Indenture Trustee need not take any action that it determines might involve it
in liability unless it has received an indemnity for such liability as provided
in the Base Indenture. The Indenture Trustee shall take no action referred to
in this Section 5.5 unless instructed to do so by the Aggregate
Controlling Party.

 

Section 5.6                                      The
Indenture Trustee May File Proofs of Claim. The Indenture Trustee is
authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Indenture Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Indenture Trustee, its agents and counsel) and any other Secured Party
(as applicable) allowed in any judicial proceedings relative to the applicable
Insurer or the Guarantor, its creditors or its property, and shall be entitled
and empowered to collect, receive and distribute any money or other property
payable or deliverable on any such claim and any custodian in any such judicial
proceeding is hereby authorized by each Secured Party to make such payments to
the Indenture Trustee and, in the event that the Indenture Trustee shall
consent to the making of such payments directly to any other Secured Party, to
pay the Indenture Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Indenture Trustee, its agents and
counsel, and any other amounts due the Indenture Trustee under Section 6.6
of the Base Indenture. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Indenture Trustee, its agents and
counsel, and any other amounts due the Indenture Trustee under Section 6.6
of the Base Indenture out of the estate in any such proceeding, shall be denied
for any reason, payment of the same shall be secured by a Lien on, and shall be
paid out of, any and all distributions, dividends, money and other properties
which any other Secured Party may be entitled to receive in such 

 

11

 

proceeding whether in liquidation or under any plan of reorganization
or arrangement or otherwise. Nothing herein contained shall be deemed to
authorize the Indenture Trustee to authorize or consent to or accept or adopt
on behalf of any other Secured Party any plan of reorganization, arrangement,
adjustment or composition affecting the Guaranteed Obligations or the rights of
any other Secured Party, or to authorize the Indenture Trustee to vote in
respect of the claim of any Secured Parties in any such proceeding.

 

Section 5.7                                      Undertaking
for Costs. In any suit for the enforcement of any right or remedy under
this Agreement or in any suit against the Indenture Trustee for any action
taken or omitted by it as a Indenture Trustee, a court in its discretion may require
the filing by any party litigant in the suit of any undertaking to pay the
costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys’ fees, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant. This Section 5.7 does not apply to a
suit by the Indenture Trustee, a suit by the Aggregate Controlling Party, or a
suit by Noteholders of more than 10% of the Aggregate Outstanding Principal
Amount of all Series of Notes.

 

Section 5.8                                      Restoration
of Rights and Remedies. If the Indenture Trustee or any other Secured Party
has instituted any Proceeding to enforce any right or remedy under this
Agreement or any other Transaction Document and such Proceeding has been
discontinued or abandoned for any reason or has been determined adversely to
the Indenture Trustee or to such other Secured Party, then and in every such
case the Indenture Trustee and any such other Secured Party shall, subject to
any determination in such proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee and the other Secured Parties shall continue as though no
such Proceeding had been instituted.

 

Section 5.9                                      Rights
and Remedies Cumulative. No right or remedy herein conferred upon or
reserved to the Indenture Trustee or to any other Secured Party is intended to
be exclusive of any other right or remedy, and every right or remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given under this Agreement or any other Transaction Document or now
or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy under this Agreement or any other Transaction
Document, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

Section 5.10                                Delay
or Omission Not Waiver. No delay or omission of the Indenture Trustee, the
Aggregate Controlling Party or of any other Secured Party to exercise any right
or remedy accruing upon any Partial Amortization Event, Rapid Amortization
Event, Default or Event of Default shall impair any such right or remedy or
constitute a waiver of any such Partial Amortization Event, Rapid Amortization
Event, Default or Event of Default or an acquiescence therein. Every right and
remedy given by this ARTICLE V or by law to the Indenture Trustee,
the Aggregate Controlling Party or to any other Secured Party may be
exercised from time to time to the extent not inconsistent with the Indenture
or this Agreement, and as often as may be deemed expedient, by the
Indenture Trustee, the Aggregate Controlling Party or by any other Secured
Party, as the case may be.

 

Section 5.11                                Waiver
of Stay or Extension Laws. The Guarantor covenants (to the extent that it may lawfully
do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
wherever enacted, now or at any time hereafter in force, that may affect
the covenants or the performance of this Agreement or any other Transaction
Document; and the Guarantor (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantages of any such law, and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Indenture Trustee or the Aggregate Controlling 

 

12

 

Party, but will suffer and permit the execution of every such power as
though no such law had been enacted.

 

Section 5.12                                Remedies
with respect to Pledged Equity Interests.

 

(a)                                  The Guarantor hereby irrevocably
constitutes and appoints the Indenture Trustee as the proxy and attorney in
fact of the Guarantor with respect to the Pledged Collateral, including the
right, from and after an Event of Default, to vote the Pledged Equity
Interests, with full power of substitution to do so. The appointment of the
Indenture Trustee as proxy and attorney-in-fact is coupled with an interest and
shall be irrevocable until all Notes under the Indenture and all other
Guaranteed Obligations have been indefeasibly paid in full. In addition to the
right to vote the Pledged Equity Interests, the appointment of the Indenture
Trustee as proxy and attorney-in-fact shall include the right to exercise all
other rights, powers, privileges and remedies to which a holder of the Pledged
Equity Interests would be entitled (including giving or withholding written
consents of members, calling special meetings of members and voting at such
meetings). Such proxy shall be effective, automatically and without the
necessity of any action (including any transfer of any Pledged Equity Interests
on the record books of the issuer thereof) by any person (including the issuer
of the Pledged Equity Interests or any officer or the indenture trustee
thereof), upon the occurrence of an Event of Default. Notwithstanding the
foregoing, the Indenture Trustee shall not have any duty to exercise any such
right or to preserve the same and shall not be liable for any failure to do so
or for any delay in doing so.

 

(b)                                 If, at any time when the
Indenture Trustee shall determine to exercise its right to sell the whole or
any part of the Pledged Equity Interests hereunder and such Pledged Equity
Interests or the part thereof to be sold shall not, for any reason
whatsoever, be effectively registered under the Securities Act of 1933, as
amended (or any similar statute then in effect) (the “Act”), the
Indenture Trustee may, in accordance with applicable securities laws, proceed
to make such private sale notwithstanding that a registration statement for the
purpose of registering such Pledged Equity Interests or part thereof could
be or shall have been filed under said Act (or similar statute), (y) may approach
and negotiate with a single possible purchaser to effect such sale, and (z) may restrict
such sale to purchasers each of whom is an accredited investor under the Act
and who will represent and agree that such purchaser is purchasing for its own
account, for investment and not with a view to the distribution or sale of such
Pledged Equity Interests or any part thereof.

 

(c)                                  The Guarantor acknowledges that
any such private sale may result in prices and other terms less favorable
to the seller than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall not be deemed to have
been made in a commercially unreasonable manner solely by virtue of such sale
being private. The Indenture Trustee shall be under no obligation to delay a
sale of any of the Pledged Equity Interests for the period of time necessary to
permit any Pledged Entity to register such securities for public sale under the
Act, or under applicable state securities laws, even if the Guarantor and such
Pledged Entity would agree to do so.

 

ARTICLE VI

MISCELLANEOUS

 

Section 6.1                                      Third-Party
Beneficiary. Each Insurer shall constitute an express third-party
beneficiary of this Agreement.

 

Section 6.2                                      Effect
of Headings. The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.

 

13

 

Section 6.3                                      Successors
and Assigns. All covenants and agreements in this Agreement by the
Guarantor shall bind its successors and assigns, whether so expressed or not. Any
assignment of this Agreement without the written consent of each Series Controlling
Party shall be null and void.

 

Section 6.4                                      Separability.
In case any provision in this Agreement 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 6.5                                      Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO CHOICE OF LAW RULES (OTHER THAN SECTIONS 5-1401
AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

Section 6.6                                      Submission
to Jurisdiction. The parties hereto irrevocably submit to the nonexclusive
jurisdiction of any New York State or federal court sitting in the Borough of
Manhattan in The City of New York in any action or proceeding arising out of or
relating to this Agreement, and the parties hereto irrevocably agree that all
claims in respect of such action or proceeding may be heard and determined
in such New York State or federal court. The parties hereto irrevocably waive,
to the fullest extent that they may legally do so, the defense of an
inconvenient forum to the maintenance of such action or proceeding. The
Guarantor and Master Issuer each irrevocably consents to the service of any and
all process in any action or proceeding by the mailing or delivery of copies of
such process to it at the office of its Delaware registered agent. The parties
hereto agree that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.

 

Section 6.7                                      Counterparts.
This Agreement 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.

 

[SIGNATURE PAGE FOLLOWS]

 

14

 

IN WITNESS WHEREOF, the parties have caused this instrument to be
executed this 29th day of November, 2007.

 

	
   

  	
  APPLEBEE’S
  HOLDINGS LLC,

  
	
   

  	
  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carin Stutz

  
	
   

  	
  Name:

  	
  Carin Stutz

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S
  ENTERPRISES LLC,

  
	
   

  	
  as Master Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carin Stutz

  
	
   

  	
  Name:

  	
  Carin Stutz

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL

  
	
   

  	
  ASSOCIATION,

  
	
   

  	
  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Melissa Philibert

  
	
   

  	
  Name:

  	
  Melissa Philibert

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
				

 

[SIGNATURE PAGE TO GUARANTY]Exhibit 10.33

 

EXECUTION VERSION

 

 

CLASS A-1 NOTE PURCHASE AGREEMENT

 

(SERIES 2007-1 VARIABLE FUNDING SENIOR NOTES, CLASS A-1)

 

dated as of November 29, 2007

 

among

 

APPLEBEE’S ENTERPRISES LLC,

APPLEBEE’S IP LLC, and

the entities referred to herein as

the “RESTAURANT HOLDERS”

 

each as a Co-Issuer,

APPLEBEE’S SERVICES, INC.,

as Servicer,

CERTAIN FINANCIAL INSTITUTIONS,

each as a Committed Note Purchaser,

CERTAIN FUNDING AGENTS,

LEHMAN COMMERCIAL PAPER INC.,

as Swingline Lender,

and

LEHMAN COMMERCIAL PAPER INC.,

as Class A-1 Administrative Agent

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01
  Definitions

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II PURCHASE AND SALE OF CLASS A-1 NOTES

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01
  The Initial Advance Note Purchase

  	
   

  	
  2

  
	
  SECTION 2.02
  Advances

  	
   

  	
  3

  
	
  SECTION 2.03
  Borrowing Procedures

  	
   

  	
  4

  
	
  SECTION 2.04
  The Series 2007-1 Class A-1 Notes

  	
   

  	
  6

  
	
  SECTION 2.05
  Reduction in Commitments

  	
   

  	
  7

  
	
  SECTION 2.06
  Swingline Commitment

  	
   

  	
  11

  
	
  SECTION 2.07
  L/C Commitment

  	
   

  	
  15

  
	
  SECTION 2.08
  L/C Reimbursement Obligations

  	
   

  	
  18

  
	
  SECTION 2.09
  L/C Participations

  	
   

  	
  20

  
	
  SECTION 2.10
  Cash Collateralization of Existing Letters of Credit

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE III INTEREST AND FEES

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01
  Interest

  	
   

  	
  23

  
	
  SECTION 3.02
  Fees

  	
   

  	
  24

  
	
  SECTION 3.03
  Eurodollar Lending Unlawful

  	
   

  	
  25

  
	
  SECTION 3.04
  Deposits Unavailable

  	
   

  	
  26

  
	
  SECTION 3.05
  Increased Costs, etc.

  	
   

  	
  26

  
	
  SECTION 3.06
  Funding Losses

  	
   

  	
  27

  
	
  SECTION 3.07
  Increased Capital Costs

  	
   

  	
  27

  
	
  SECTION 3.08
  Taxes

  	
   

  	
  28

  
	
  SECTION 3.09
  Change of Lending Office

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV OTHER PAYMENT TERMS

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01
  Time and Method of Payment

  	
   

  	
  31

  
	
  SECTION 4.02
  Order of Distributions

  	
   

  	
  31

  
	
  SECTION 4.03
  L/C Cash Collateral

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE V THE CLASS A-1 ADMINISTRATIVE AGENT AND THE FUNDING
  AGENTS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01
  Authorization and Action of the Class A-1 Administrative Agent

  	
   

  	
  32

  
	
  SECTION 5.02
  Delegation of Duties

  	
   

  	
  33

  
	
  SECTION 5.03
  Exculpatory Provisions

  	
   

  	
  33

  
	
  SECTION 5.04
  Reliance

  	
   

  	
  34

  
	
  SECTION 5.05
  Non-Reliance on the Class A-1 Administrative Agent and Other Purchasers

  	
   

  	
  34

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 5.06
  The Class A-1 Administrative Agent in its Individual Capacity

  	
   

  	
  34

  
	
  SECTION 5.07
  Successor Class A-1 Administrative Agent

  	
   

  	
  34

  
	
  SECTION 5.08
  Authorization and Action of Funding Agents

  	
   

  	
  35

  
	
  SECTION 5.09
  Delegation of Duties

  	
   

  	
  36

  
	
  SECTION 5.10
  Exculpatory Provisions

  	
   

  	
  36

  
	
  SECTION 5.11
  Reliance

  	
   

  	
  36

  
	
  SECTION 5.12
  Non-Reliance on the Funding Agent and Other Purchasers

  	
   

  	
  36

  
	
  SECTION 5.13
  The Funding Agent in its Individual Capacity

  	
   

  	
  37

  
	
  SECTION 5.14
  Successor Funding Agent

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI REPRESENTATIONS AND WARRANTIES

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01
  The Co-Issuers

  	
   

  	
  37

  
	
  SECTION 6.02
  Servicer

  	
   

  	
  39

  
	
  SECTION 6.03
  Lender Parties

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII CONDITIONS

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01
  Conditions to Purchase and Effectiveness

  	
   

  	
  40

  
	
  SECTION 7.02
  Conditions to Initial Extensions of Credit

  	
   

  	
  41

  
	
  SECTION 7.03
  Conditions to Each Extension of Credit

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII COVENANTS

  	
   

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 8.01
  Covenants

  	
   

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX MISCELLANEOUS PROVISIONS

  	
   

  	
  45

  
	
   

  	
   

  	
   

  
	
  SECTION 9.01
  Amendments

  	
   

  	
  45

  
	
  SECTION 9.02
  No Waiver; Remedies

  	
   

  	
  46

  
	
  SECTION 9.03
  Binding on Successors and Assigns

  	
   

  	
  46

  
	
  SECTION 9.04
  Survival of Agreement

  	
   

  	
  47

  
	
  SECTION 9.05
  Payment of Costs and Expenses; Indemnification

  	
   

  	
  47

  
	
  SECTION 9.06
  Characterization as Transaction Document; Entire Agreement

  	
   

  	
  50

  
	
  SECTION 9.07
  Notices

  	
   

  	
  50

  
	
  SECTION 9.08
  Severability of Provisions

  	
   

  	
  51

  
	
  SECTION 9.09
  Tax Characterization

  	
   

  	
  51

  
	
  SECTION 9.10
  No Proceedings; Limited Recourse

  	
   

  	
  51

  
	
  SECTION 9.11
  Confidentiality

  	
   

  	
  52

  
	
  SECTION 9.12 GOVERNING LAW

  	
   

  	
  53

  
	
  SECTION 9.13 JURISDICTION

  	
   

  	
  53

  
	
  SECTION 9.14 WAIVER OF JURY TRIAL

  	
   

  	
  53

  
	
  SECTION 9.15
  Counterparts

  	
   

  	
  54

  
	
  SECTION 9.16
  Third Party Beneficiary

  	
   

  	
  54

  
	
  SECTION 9.17
  Assignment

  	
   

  	
  54

  

 

ii

 

SCHEDULES AND EXHIBITS

 

	
  SCHEDULE I

  	
   

  	
  Investor Groups and Commitments

  
	
  SCHEDULE II

  	
   

  	
  Notice Addresses for Lender Parties and Agents

  
	
  SCHEDULE III

  	
   

  	
  Additional Closing Conditions

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  Form of Advance Request

  
	
  EXHIBIT A-1

  	
   

  	
  Form of Swingline Loan Request

  
	
  EXHIBIT A-2

  	
   

  	
  Form of Voluntary Decrease Request

  
	
  EXHIBIT B

  	
   

  	
  Form of Assignment and Assumption Agreement

  
	
  EXHIBIT C

  	
   

  	
  Form of Investor Group Supplement

  

 

i

 

CLASS A-1 NOTE
PURCHASE AGREEMENT

 

THIS CLASS A-1 NOTE PURCHASE AGREEMENT, dated as
of November 29, 2007 (as amended, supplemented, restated or otherwise
modified from time to time in accordance with the terms hereof, this “Agreement”),
is made by and among:

 

(a)           Applebee’s Enterprises LLC, a Delaware
limited liability company (the “Master Issuer”), Applebee’s IP LLC, a
Delaware limited liability company (the “IP Holder”) and each of the
entities appearing in the definition of “Restaurant Holders” in Appendix A
to the Base Indenture (as defined below) (collectively, the “Restaurant Holders”
and together with the Master Issuer and the IP Holder, collectively, the “Co-Issuers”
and each, a “Co-Issuer”),

 

(b)           Applebee’s Services, Inc., a Kansas
corporation (“ASI” or the “Servicer”),

 

(c)           with respect to each Advance Sub-Class,
the several financial institutions listed on the portion of Schedule I
relating to such Advance Sub-Class as Committed Note Purchasers and their
respective permitted successors and assigns (each, a “Committed Note
Purchaser” and, collectively, the “Committed Note Purchasers”),

 

(d)           for each Investor Group with respect to
each Advance Sub-Class, the financial institution entitled to act on behalf of
the Investor Group set forth opposite the name of such Investor Group on the
portion of Schedule I relating to such Advance Sub-Class as
Funding Agent and its permitted successors and assigns (each, the “Funding
Agent” with respect to such Investor Group and, collectively, the “Funding
Agents”),

 

(e)           with respect to each Advance Sub-Class,
the commercial paper conduits, if any, accepting an assignment pursuant to Section 9.17
with respect to such Advance Sub-Class and made a party hereto and their
respective permitted successors and assigns (each, a “Conduit Investor”
and, collectively, the “Conduit Investors”),

 

(f)            with respect to the L/C Sub-Classes, the
L/C Provider, if any, that is made a party hereto pursuant to an amendment in
accordance with  Section 9.01
and its respective permitted successors and assigns (the “L/C Provider”).

 

(g)           LEHMAN COMMERCIAL PAPER INC., as Swingline
Lender, and

 

(h)           LEHMAN COMMERCIAL PAPER INC., in its
capacity as administrative agent for the Conduit Investors, the Committed Note
Purchasers, the Funding Agents, the L/C Provider and the Swingline Lender
(together with its permitted successors and assigns in such capacity, the “Class A-1
Administrative Agent”).

 

 

BACKGROUND

 

1.             Contemporaneously with the execution and
delivery of this Agreement, the Co-Issuers and Wells Fargo Bank, National
Association, as Indenture Trustee, are entering into the Series 2007-1
Supplement, of even date herewith (as the same may be amended, supplemented,
restated or otherwise modified from time to time in accordance with the terms
thereof, the “Series 2007-1 Supplement”), to the Base Indenture, of
even date herewith (as the same may be amended, supplemented, restated or
otherwise modified from time to time in accordance with the terms thereof,
exclusive of any Series Supplement, the “Base Indenture” and,
together with the Series 2007-1 Supplement and any other Series Supplement,
the “Indenture”), among the Co-Issuers and the Indenture Trustee,
pursuant to which the Co-Issuers will issue Series 2007-1 Class A-1
Notes (as defined in the Series 2007-1 Supplement).

 

2.             The Co-Issuers wish to (a) issue the
Series 2007-1 Class A-1 Advance Notes for each Advance Sub-Class to
the Funding Agent (or its designee) for each Investor Group with respect to
such Advance Sub-Class on behalf of the Investors in such Investor Group,
and obtain the agreement of the applicable Investors to make loans from time to
time (each, an “Advance” or a “Series 2007-1 Class A-1
Advance” and, collectively, the “Advances” or the “Series 2007-1
Class A-1 Advances”) that will constitute the purchase of Series 2007-1
Class A-1 Outstanding Principal Amounts on the terms and conditions set
forth in this Agreement; (b) issue the Series 2007-1 Class A-1
Swingline Notes to the Swingline Lender and obtain the agreement of the
Swingline Lender to make Swingline Loans on the terms and conditions set forth
in this Agreement; and (c) issue the Series 2007-1 Class A-1 L/C
Notes to the L/C Provider and obtain the agreement of the L/C Provider to
provide Letters of Credit on the terms and conditions set forth in this
Agreement.  ASI has joined in this
Agreement to confirm certain representations, warranties and covenants made by
it for the benefit of each Lender Party.

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01  Definitions.  As used in this Agreement and unless the
context requires a different meaning, capitalized terms used but not defined
herein (including the preamble and the recitals hereto) shall have the meanings
assigned to such terms in the Series 2007-1 Supplemental Definitions List
attached to the Series 2007-1 Supplement as Annex A or in the
Definitions attached to the Base Indenture as Appendix A, as
applicable.  Section 1.2 of the Base
Indenture is hereby incorporated by reference as if fully set forth
herein.  Unless otherwise specified
herein, all Article, Exhibit, Section or Subsection references herein
shall refer to Articles, Exhibits, Sections or Subsections of this
Agreement.

 

ARTICLE II

PURCHASE AND SALE OF CLASS A-1 NOTES

 

SECTION 2.01  The Initial Advance Note Purchase.  On the terms and conditions set forth in the
Indenture and this Agreement, and in reliance on the covenants, 

 

2

 

representations and
agreements set forth herein and therein, the Co-Issuers shall issue and shall
cause the Indenture Trustee to authenticate the initial Series 2007-1 Class A-1
Advance Notes for each Advance Sub-Class, which the Co-Issuers shall deliver to
the Funding Agent for each Investor Group with respect to such Advance Sub-Class on
behalf of the Investors in such Investor Group on the Series 2007-1
Closing Date.  Such initial Series 2007-1
Class A-1 Advance Note for each Advance Sub-Class for each Investor
Group shall be dated the Series 2007-1 Closing Date, shall be registered
in the name of the related Funding Agent or its nominee, as agent for the
related Investors, or in such other name as such Funding Agent may request,
shall have a maximum principal amount equal to the Maximum Investor Group
Principal Amount for such Investor Group, shall have an initial outstanding
principal amount equal to such Investor Group’s Commitment Percentage of the Series 2007-1
Class A-1 Initial Advance Principal Amount, and shall be duly
authenticated in accordance with the provisions of the Indenture.

 

SECTION 2.02  Advances.  (a)  Subject to the terms and conditions
of this Agreement and the Indenture, with respect to any Investor Group that (i) does
not have a Conduit Investor or (ii) has a Conduit Investor but such
Conduit Investor determines that it will not make (or it does not in fact make)
an Advance or any portion of an Advance pursuant to Section 2.02(b),
the Committed Note Purchasers with respect to such Investor Group shall, upon
the Co-Issuers’ request delivered in accordance with the provisions of Section 2.03
and the satisfaction of all of the conditions precedent thereto (or under the
circumstances and in accordance with the provisions set forth in Section 2.05,
2.06 or 2.08), make Advances from time to time during the
Commitment Term in the amounts determined pursuant to Section 2.02(c).

 

(b)           Subject to the terms and conditions of
this Agreement and the Indenture, with respect to any Investor Group that has a
Conduit Investor, such Conduit Investor may, upon the Co-Issuers’ request
delivered in accordance with the provisions of Section 2.03 and the
satisfaction of all of the conditions precedent thereto (or under the
circumstances and in accordance with the provisions set forth in Section 2.05,
2.06 or 2.08), make Advances from time to time during the
Commitment Term in the amounts determined pursuant to Section 2.02(c).  Notwithstanding anything herein or in any
other Transaction Document to the contrary, at no time will a Conduit Investor
be obligated to make Advances hereunder.

 

(c)           Any Advances made pursuant to Section 2.02(a) or
Section 2.02(b) shall be made ratably by each Investor Group
based on their respective Commitment Percentages and the portion of any such
Advance made by any Committed Note Purchaser in such Investor Group shall be
its Committed Note Purchaser Percentage of the Advances to be made by such
Investor Group (or the portion thereof not being made by any Conduit Investor
in such Investor Group); provided that no Advance shall be required or
permitted to be made by any Investor on any date if, after giving effect to
such Advance, (i) the related Investor Group Principal Amount would exceed
the related Maximum Investor Group Principal Amount, (ii) the Series 2007-1
Class A-1 Outstanding Principal Amount would exceed the Series 2007-1
Class A-1 Maximum Principal Amount, (iii) the Series 2007-1 Class A-1-A
Outstanding Principal Amount 

 

3

 

would exceed the Series 2007-1 Class A-1-A Maximum Principal
Amount or (iv) the Series 2007-1 Class A-1-X Outstanding
Principal Amount would exceed the Series 2007-1 Class A-1-X Maximum
Principal Amount.

 

(d)           Each of the Advances to be made on any
date shall be made as part of a single borrowing (each such single borrowing
being a “Borrowing”).  The
Advances made by each Investor Group as part of the initial Borrowing on the Series 2007-1
Closing Date will be evidenced by the Series 2007-1 Class A-1 Advance
Notes of the applicable Advance Sub-Class issued to such Investor Group in
connection herewith and will constitute purchases of Series 2007-1 Class A-1
Initial Advance Principal Amounts corresponding to the amount of such Advances
and allocated to the applicable Advance Sub-Class.  Each other Borrowing will constitute an
Increase, with the Advances made by each Investor Group as part of such
Borrowing being evidenced by the Series 2007-1 Class A-1 Advance
Notes of the applicable Advance Sub-Class issued to such Investor Group in
connection herewith and constituting purchases of Series 2007-1 Class A-1
Outstanding Principal Amounts corresponding to the amount of such Advances and
allocated to the applicable Advance Sub-Class.

 

(e)           In the event the Co-Issuers wish to
effect a Voluntary Decrease of the Series 2007-1 Class A-1
Outstanding Principal Amount, the Co-Issuers shall (i) deliver written
notice thereof in accordance with Section 3.2(b) of the Series 2007-1
Supplement in the form of Exhibit A-2 hereto (each, a “Voluntary
Decrease Request”) and (ii) follow the additional procedures for a
Voluntary Decrease set forth in Section 3.2(b) of the Series 2007-1
Supplement.   Each such Voluntary
Decrease in respect of any Advances shall be in an aggregate minimum principal
amount of $500,000 and integral multiples of $100,000 in excess thereof.

 

(f)            Subject to the terms of this Agreement
and the Series 2007-1 Supplement, the aggregate principal amount of the
Advances evidenced by the Series 2007-1 Class A-1 Advance Notes may
be increased by Borrowings or decreased by Voluntary Decreases from time to
time.

 

SECTION 2.03 
Borrowing Procedures.

 

(a)           Whenever the Co-Issuers wish a Borrowing
to be made, the Co-Issuers shall (or shall cause the Servicer to) notify the Class A-1
Administrative Agent (who shall promptly notify each Funding Agent (and each
Committed Note Purchaser) of its pro  rata share thereof and
notify the Indenture Trustee, the Series 2007-1 Class A Insurer, the
Swingline Lender and the L/C Provider in writing of such Borrowing) upon
irrevocable written notice in the form of an Advance Request delivered to the Class A-1
Administrative Agent no later than 12:00 p.m. (New York time) on the
Business Day (or, in the case of any Eurodollar Advances for purposes of Section 3.01(b),
on the third Business Day) prior to the date of Borrowing, which date of
Borrowing shall be a Business Day during the Commitment Term.  Each such notice shall be irrevocable and
shall in each case refer to this Agreement and specify (i) the Borrowing
date, (ii) the aggregate amount of the requested Borrowing to be made on
the Borrowing date, (iii) the amount of outstanding Swingline Loans and
Unreimbursed L/C 

 

4

 

Drawings to be repaid with the proceeds of such Borrowing on the
Borrowing date, which amount shall constitute all outstanding Swingline Loans
and Unreimbursed L/C Drawings outstanding on the date of such notice, and (iv) sufficient
instructions for application of the balance, if any, of the proceeds of such
Borrowing on the Borrowing date. 
Requests for any Borrowing may not be made in an aggregate principal
amount of less than $1,000,000 or in an aggregate principal amount which is not
an integral multiple of $500,000 in excess thereof (except as otherwise
provided herein with respect to Borrowings for the purpose of repaying then
outstanding Swingline Loans or Unreimbursed L/C Drawings or if such amount
would exceed the Series 2007-1 Class A-1 Maximum Principal
Amount).  The Co-Issuers agree to cause
requests for Borrowings to be made upon notice of any drawing under a Letter of
Credit, and in any event at least one time every three (3) Business Days
if any Swingline Loans or Unreimbursed L/C Drawings are outstanding, in amounts
at least sufficient to repay in full all Swingline Loans and Unreimbursed L/C
Drawings outstanding on the date of the applicable request.  Each Borrowing shall be ratably allocated
among the Investor Groups (and their respective Series 2007-1 Class A-1
Advance Notes) based on their respective Maximum Investor Group Principal
Amounts.  With respect to each Investor
Group, if any, that includes a Conduit Investor, each Funding Agent shall
promptly advise its related Conduit Investor, if any, of any notice given
pursuant to this Section 2.03(a)  and shall promptly
thereafter (but in no event later than 11:00 a.m. (New York time) on
the date of Borrowing) notify the Class A-1 Administrative Agent, the
Co-Issuers and the related Committed Note Purchaser(s) whether such
Conduit Investor has determined to make all or any portion of the Advances in
such Borrowing that are to be made by its Investor Group.  On the date of each Borrowing and subject to
the other conditions set forth herein and in the Series 2007-1 Supplement
(and, if requested by the Class A-1 Administrative Agent, confirmation
from the Swingline Lender and the L/C Provider, as applicable, as to (x) the
amount of outstanding Swingline Loans and Unreimbursed L/C Drawings to be
repaid with the proceeds of such Borrowing on the Borrowing date, (y) the
Undrawn L/C Face Amount of all Letters of Credit then outstanding and (z) the
principal amount of any other Swingline Loans or Unreimbursed L/C Drawings then
outstanding), the applicable Investors in each Investor Group shall make
available to the Class A-1 Administrative Agent the amount of the Advances
in such Borrowing that are to be made by such Investor Group by wire transfer
in U.S. Dollars of such amount in same day funds no later than 3:00 p.m.
(New York time) on the date of such Borrowing, and upon receipt thereof
the Class A-1 Administrative Agent shall immediately make such proceeds
available, first, to the Swingline Lender and the L/C Provider for
application to repayment of the amount of outstanding Swingline Loans and
Unreimbursed L/C Drawings as set forth in the applicable Advance Request,
ratably in proportion to such respective amounts, and, second, to the
Co-Issuers as instructed in the applicable Advance Request.

 

(b)           The failure of any
Committed Note
Purchaser to make the Advance to be made by it
as part of any Borrowing shall not relieve any other Committed Note
Purchaser (whether or not in the same Investor
Group) of its obligation, if any, hereunder to make its Advance on the date of
such Borrowing, but no Committed Note Purchaser shall be responsible for the failure of any other Committed Note
Purchaser to 

 

5

 

make the Advance to be made by such other Committed Note Purchaser on the date of any Borrowing.

 

(c)           Unless the Class A-1
Administrative Agent shall have received notice from a Funding Agent prior to
the date of any Borrowing that an applicable Investor in the related Investor
Group will not make available to the Class A-1 Administrative Agent such
Investor’s share of the Advances to be made by such Investor Group as part of
such Borrowing, the Class A-1 Administrative Agent may (but shall not be
obligated to) assume that such Investor has made such share available to the Class A-1
Administrative Agent on the date of such Borrowing in accordance with Section 2.02(c) and
the Class A-1 Administrative Agent may (but shall not be obligated to), in
reliance upon such assumption, make available to the Swingline Lender, the L/C
Provider and/or the Co-Issuers, as applicable, on such date a corresponding
amount, and shall, if such corresponding amount has not been made available by
the Class A-1 Administrative Agent, make available to the Swingline
Lender, the L/C Provider and/or the Co-Issuers, as applicable, on such date a
corresponding amount once such Investor has made such portion available to the Class A-1
Administrative Agent.  If and to the
extent that any Investor shall not have made such amount available to the Class A-1
Administrative Agent, such Investor and the Co-Issuers jointly and severally agree to repay (without duplication) to the Class A-1
Administrative Agent forthwith on demand such corresponding amount, together
with interest thereon, for each day from the date such amount is made available
to the Swingline Lender, the L/C Provider and/or the Co-Issuers, as applicable,
until the date such amount is repaid to the Class A-1 Administrative
Agent, at (i) in the case of the Co-Issuers, the interest rate applicable
at the time to the Advances comprising such Borrowing and (ii) in the case
of such Investor, the Federal Funds Rate and without deduction by such Investor
for any withholding taxes.  If such
Investor shall repay to the Class A-1 Administrative Agent such
corresponding amount, such amount so repaid shall constitute such Investor’s
Advance as part of such Borrowing for purposes of this Agreement.

 

SECTION 2.04  The Series 2007-1 Class A-1
Notes.  On each date an Advance or
Swingline Loan is funded or a Letter of Credit is issued hereunder, and on each
date the outstanding amount thereof is reduced, a duly authorized officer,
employee or agent of the related Series 2007-1 Class A-1 Noteholder
shall make appropriate notations in its books and records of the amount,
evidenced by the related Series 2007-1 Class A-1 Note, of such
Advance, Swingline Loan or Letter of Credit and the amount of such reduction,
as applicable.  The Co-Issuers hereby
authorize each duly authorized officer, employee and agent of such Series 2007-1
Class A-1 Noteholder to make such notations on the books and records as
aforesaid and every such notation made in accordance with the foregoing
authority shall be prima facie evidence of the accuracy of the information so
recorded; provided, however, that in the event of a discrepancy
between the books and records of such Series 2007-1 Class A-1
Noteholder and the records maintained by the Indenture Trustee pursuant to the
Indenture, such discrepancy shall be resolved by such Series 2007-1 Class A-1
Noteholder, the Series 2007-1 Class A Insurer and the Indenture
Trustee, and such resolution shall control in the absence of manifest error; provided
further that the failure of any such notation to be made, or any 

 

6

 

finding that a notation
is incorrect, in any such records shall not limit or otherwise affect the
obligations of the Co-Issuers under this Agreement or the Indenture.

 

SECTION 2.05  Reduction in Commitments.

 

(a)           The Co-Issuers may, with the prior
written consent of the Series 2007-1 Controlling Party, and upon three
Business Days’ notice to the Class A-1 Administrative Agent (who shall
promptly notify the Indenture Trustee, each Funding Agent and each Investor),
effect a permanent reduction in the Series 2007-1 Class A-1 Maximum
Principal Amount and a corresponding reduction, on a pro  rata
basis, in each of:  (i) the Series 2007-1
Class A-1-A Maximum Principal Amount and the Series 2007-1 Class A-1-X
Maximum Principal Amount and (ii) in each Commitment Amount and Maximum
Investor Group Principal Amount; provided that (i) any such
reduction will be limited to the undrawn portion of the Commitments, although
any such reduction may be combined with a Voluntary Decrease effected pursuant
to and in accordance with Section 3.2(b) of the Series 2007-1
Supplement, (ii) any such reduction must be in a minimum amount of
$10,000,000, (iii) after giving effect to such reduction, the Series 2007-1
Class A-1 Maximum Principal Amount equals or exceeds $50,000,000, unless
reduced to zero, and (iv) no such reduction shall be permitted if, after
giving effect thereto, (x) the aggregate Commitment Amounts would be less
than the Series 2007-1 Class A-1 Outstanding Principal Amount
(excluding any Undrawn L/C Face Amounts with respect to which cash collateral
is held by the L/C Provider pursuant to Section 4.03) or (y) the
aggregate Commitment Amounts would be less than the sum of the Swingline
Commitment and the L/C Commitment.  Any
reduction made pursuant to this Section 2.05(a) shall be made
ratably among the Investor Groups, and their respective Series 2007-1 Class A-1
Advance Notes, based on their respective Maximum Investor Group Principal
Amounts.

 

(b)           If any of the following events shall
occur, then the Commitments shall be automatically and permanently reduced on
the dates and in the amounts set forth below with respect to the applicable
event and the other consequences set forth below with respect to the applicable
event shall ensue (and the Co-Issuers shall give the Indenture Trustee, the Series 2007-1
Class A Insurer and the Class A-1 Administrative Agent prompt written
notice thereof):

 

(i)            (A) on the Business Day immediately preceding the
Series 2007-1 Adjusted Repayment Date, (x) the principal amount of
all then-outstanding Swingline Loans and Unreimbursed L/C Drawings shall be
repaid in full with proceeds of Advances made on such date (which proceeds
shall be ratably allocated among (i) the Series 2007-1 Class A-1
Swingline Notes of each Swingline Sub-Class based on their respective
Applicable Sub-Class Percentages and (ii) the Series 2007-1 Class A-1
L/C Notes of each L/C Sub-Class based on their respective Applicable Sub-Class Percentages,
as the case may be) (and the Co-Issuers agree to deliver such Advance Requests
under Section 2.03 as may be necessary to cause such Advances to be
made), and (y) the Swingline Commitment and the L/C Commitment shall both
be automatically and permanently reduced to zero; (B) on the Series 2007-1
Adjusted Repayment Date, 

 

7

 

(x) all
undrawn portions of the Commitments shall automatically and permanently
terminate (all Undrawn L/C Face Amounts having expired by their terms prior to
such date), and (y) the corresponding portions of the Series 2007-1 Class A-1
Maximum Principal Amount, the Series 2007-1 Class A-1-A Maximum
Principal Amount, the Series 2007-1 Class A-1-X Maximum Principal
Amount, the Commitment Amounts and the Maximum Investor Group Principal Amounts
shall be automatically and permanently reduced by a corresponding amount (which
such amounts shall be ratably allocated among the Investor Groups and their
respective Series 2007-1 Class A-1 Advance Notes); and (C) each
payment of principal on the Series 2007-1 Class A-1 Outstanding
Principal Amount occurring on or after the Series 2007-1 Adjusted
Repayment Date shall result automatically and permanently in a
dollar-for-dollar reduction of the Series 2007-1 Class A-1 Maximum
Principal Amount and a corresponding reduction, on a pro  rata
basis:  (i) in each of the Series 2007-1
Class A-1-A Maximum Principal Amount and the Series 2007-1 Class A-1-X
Maximum Principal Amount and (ii) in each Commitment Amount and Maximum Investor
Group Principal Amount;

 

(ii)           if a Rapid Amortization Event occurs prior to the Series 2007-1
Adjusted Repayment Date (but subject to the Rapid Amortization Cure Right, if
applicable), then (A) on the earliest of (1) the date the Rapid
Amortization Cure Right is no longer applicable, (2) in the case of any
Rapid Amortization Event that could be waived, the one-year anniversary of such
Rapid Amortization Event without it having been waived, and (3) the Series 2007-1
Adjusted Repayment Date (x) all portions of the Commitments in excess of
the Series 2007-1 Class A-1 Outstanding Principal Amount (excluding
any Undrawn L/C Face Amounts to the extent cash collateral is held with respect
thereto by the L/C Provider pursuant to Section 4.03) shall
automatically and permanently terminate, (y) the corresponding portions of
the Series 2007-1 Class A-1 Maximum Principal Amount, the Series 2007-1
Class A-1-A Maximum Principal Amount, the Series 2007-1 Class A-1-X
Maximum Principal Amount, the Commitment Amounts and the Maximum Investor Group
Principal Amounts shall be automatically and permanently reduced by a
corresponding amount (which such amount shall be ratably allocated among the
Investor Groups and their respective Series 2007-1 Class A-1 Advance
Notes), and (z) the Swingline Commitment and the L/C Commitment shall both
be automatically and permanently reduced to zero; (B) no later than the
second Business Day after the occurrence of such Rapid Amortization Event, the
principal amount of all then-outstanding Swingline Loans and Unreimbursed L/C
Drawings shall be repaid in full with proceeds of Advances (which proceeds
shall be ratably allocated among (i) the Series 2007-1 Class A-1
Swingline Notes of each Swingline Sub-Class based on their respective
Applicable Sub-Class Percentages and (ii) the Series 2007-1 Class A-1
L/C Notes of each L/C Sub-Class based on their respective Applicable Sub-Class Percentages,
as the case may be) (and the Co-Issuers agree to deliver such Advance Requests
under Section 2.03 as may be necessary to cause such Advances to be
made); and (C) each payment of principal on the Series 2007-1 Class A-1
Outstanding Principal Amount occurring on or after the date of such 

 

8

 

Rapid Amortization Event
(excluding the repayment of any outstanding Swingline Loans and Unreimbursed
L/C Obligations with proceeds of Advances pursuant to clause (B) above
but including payments that are used to cash collateralize any Undrawn L/C Face
Amounts) shall result automatically and permanently in a dollar-for-dollar
reduction of the Series 2007-1 Class A-1 Maximum Principal Amount and
a corresponding reduction, on a pro  rata basis, (i) in each
of the Series 2007-1 Class A-1-A Maximum Principal Amount and the Series 2007-1
Class A-1-X Maximum Principal Amount and (ii) in each Commitment
Amount and Maximum Investor Group Principal Amount;

 

(iii)          if a Change of Control occurs (unless the Class A
Insurer and if different, the Series 2007-1 Controlling Party, has provided
its prior written consent thereto), then (A) on the date such Change of
Control occurs, (x) all portions of the Commitments in excess of the Series 2007-1
Class A-1 Outstanding Principal Amount (excluding any Undrawn L/C Face
Amounts to the extent cash collateral is held with respect thereto by the L/C
Provider pursuant to Section 4.03) shall automatically and
permanently terminate, (y) the corresponding portions of the Series 2007-1
Class A-1 Maximum Principal Amount, the Series 2007-1 Class A-1-A
Maximum Principal Amount, the Series 2007-1 Class A-1-X Maximum
Principal Amount, the Commitment Amounts and the Maximum Investor Group
Principal Amounts shall be automatically and permanently reduced by a
corresponding amount, and (z) the Swingline Commitment and the L/C
Commitment shall both be automatically and permanently reduced to zero; (B) if
the Series 2007-1 Prepayment Date specified in the applicable Prepayment
Notice is scheduled to occur more than two Business Days after such occurrence,
then no later than the second Business Day after the occurrence of such Change
of Control, the principal amount of all then-outstanding Swingline Loans and
Unreimbursed L/C Drawings shall be repaid in full with proceeds of Advances
(which such proceeds shall be ratably allocated among (i) the Investor
Groups and their respective Series 2007-1 Class A-1 Advance Notes,
based on their respective Maximum Investor Group Principal Amounts, (ii) the
Series 2007-1 Class A-1 Swingline Notes of each Swingline Sub-Class based
on their respective Applicable Sub-Class Percentages and (iii) the Series 2007-1
Class A-1 L/C Notes of each L/C Sub-Class based on their respective
Applicable Sub-Class Percentages) (and the Co-Issuers agree to deliver
such Advance Requests under Section 2.03 as may be necessary to
cause such Advances to be made); and (C) on the Series 2007-1
Prepayment Date specified in the applicable Prepayment Notice, (x) the Series 2007-1
Class A-1 Maximum Principal Amount, the Series 2007-1 Class A-1-A
Maximum Principal Amount and the Series 2007-1 Class A-1-X Maximum
Principal Amount, the Commitment Amounts and the Maximum Investor Group
Principal Amounts shall all be automatically and permanently reduced to zero,
and (y) the Co-Issuers shall cause the Series 2007-1 Class A-1
Outstanding Principal Amount to be paid in full (or, in the case of any
then-outstanding Undrawn L/C Face Amounts, to be fully cash collateralized
pursuant to Sections 4.02 and 4.03), together with accrued
interest and fees and all other amounts then due and payable to the 

 

9

 

Lender Parties, the Class A-1
Administrative Agent and the Funding Agents under this Agreement and the other
Transaction Documents;

 

(iv)          if prepayments related to Series 2007-1 Monthly
Aggregate Extension Prepayment Amounts, Asset Disposition Prepayment Amounts,
Insurance Proceeds Amounts, Series 2007-1 Partial Amortization Amounts, or
Indemnification Amounts (collectively “Senior Payments”) are allocated
to and deposited in the applicable Series Distribution Account for the Series 2007-1
Notes in accordance with Section 4.7(c)(ii) through 4.7(c)(vii) of
the Series Supplement at a time when no Class A Senior Notes other
than Class A-1 Senior Notes are Outstanding, (x) the aggregate amount
of the Commitments shall be automatically and permanently reduced on the date
of such deposit by an amount (the “Series 2007-1 Class A-1
Allocated Payment Reduction Amount”) equal to the product of (A) the
portion, if any, of such Senior Payments remaining after depositing the
applicable portion thereof in the applicable Series Distribution Accounts
for all Classes of Class A Senior Notes other than any Class A-1
Senior Notes and (B) the percentage that the then-outstanding amount of
the Commitments bears to the aggregate amount of all then-outstanding
commitments to extend credit in respect of all Class A-1 Senior Notes; (y) the
corresponding portions of the Series 2007-1 Class A-1 Maximum
Principal Amount, the Series 2007-1 Class A-1-A Maximum Principal
Amount, the Series 2007-1 Class A-1-X Maximum Principal Amount, the
Commitment Amounts and the Maximum Investor Group Principal Amounts shall be
automatically and permanently reduced by a corresponding amount (which such
amount shall be ratably allocated among the Investor Groups and their
respective Series 2007-1 Class A-1 Advance Notes) on such date (and,
if after giving effect to such reduction the aggregate Commitment Amounts would
be less than the sum of the Swingline Commitment and the L/C Commitment, then
the aggregate amount of the Swingline Commitment and the L/C Commitment shall
be reduced by the amount of such difference (which such amount shall be ratably
allocated among (i) the Series 2007-1 Class A-1 Swingline Notes
of each Swingline Sub-Class based on their respective Applicable Sub-Class Percentages
and (ii) the Series 2007-1 Class A-1 L/C Notes of each L/C Sub-Class based
on their respective Applicable Sub-Class Percentages, as the case may be),
with such reduction to be allocated between them in accordance with the written
instructions of the Co-Issuers delivered prior to such date; provided
that after giving effect thereto the aggregate amount of the Swingline Loans
and the L/C Obligations do not exceed the Swingline Commitment and the L/C
Commitment, respectively, as so reduced; provided  further that in
the absence of such instructions, such reduction shall be allocated first to
the Swingline Commitment and then to the L/C Commitment); and (z) the Series 2007-1
Class A-1 Outstanding Principal Amount shall be repaid or prepaid in an
aggregate amount equal to such Series 2007-1 Class A-1 Allocated
Payment Reduction Amount (which such amount shall be ratably allocated among
the Investor Groups, and their respective Series 2007-1 Class A-1 Notes)
on the date and in the order required by Section 4.7 of the Series 2007-1
Supplement and Section 4.02 of this Agreement; or

 

10

 

(v)           if any Event of Default shall occur and be continuing
(and shall not have been waived in accordance with the Base Indenture) and as a
result the payment of the Series 2007-1 Class A-1 Notes is
accelerated pursuant to Section 5.4 of the Base Indenture (and such
acceleration shall not have been rescinded in accordance with the Base
Indenture), then in addition to the consequences set forth in clause (ii) above
in respect of the Rapid Amortization Event resulting from such Event of
Default, the Series 2007-1 Class A-1 Maximum Principal Amount, the Series 2007-1
Class A-1-A Maximum Principal Amount, the Series 2007-1 Class A-1-X
Maximum Principal Amount, the Commitment Amounts and the Maximum Investor Group
Principal Amounts shall all be automatically and permanently reduced to zero
upon such acceleration and the Co-Issuers shall immediately cause the Series 2007-1
Class A-1 Outstanding Principal Amount to be paid in full (or, in the case
of any then-outstanding Undrawn L/C Face Amounts, to be fully cash
collateralized pursuant to Sections 4.02 and 4.03), together
with accrued interest and fees and all other amounts then due and payable to
the Lender Parties, the Class A-1 Administrative Agent and the Funding
Agents under this Agreement and the other Transaction Documents.

 

SECTION 2.06  Swingline Commitment.

 

(a)           On the terms and conditions set forth in
the Indenture and this Agreement, and in reliance on the covenants,
representations and agreements set forth herein and therein, the Co-Issuers
shall issue and shall cause the Indenture Trustee to authenticate the initial Series 2007-1
Class A-1 Swingline Notes for each Swingline Sub-Class which the
Co-Issuers shall deliver to the Swingline Lender on the Series 2007-1
Closing Date.  Such initial Series 2007-1
Class A-1 Swingline Notes for each Swingline Sub-Class shall be dated
the Series 2007-1 Closing Date, shall be registered in the name of the
Swingline Lender or its nominee, or in such other name as the Swingline Lender
may request, shall have a maximum principal amount equal to the Applicable Sub-Class Percentage
for such Swingline Sub-Class of the Swingline Commitment, shall have an
initial outstanding principal amount equal to the Applicable Sub-Class Percentage
for such Swingline Sub-Class of the Series 2007-1 Class A-1
Initial Swingline Principal Amount, and shall be duly authenticated in
accordance with the provisions of the Base Indenture.  Subject to the terms and conditions hereof,
the Swingline Lender, in reliance on the agreements of the Committed Note
Purchasers set forth in this Section 2.06, agrees to make swingline
loans (each, a “Swingline Loan” or a “Series 2007-1 Class A-1
Swingline Loan” and, collectively, the “Swingline Loans” or the “Series 2007-1
Class A-1 Swingline Loans”) to the Co-Issuers from time to time during
the period commencing on the Series 2007-1 Closing Date and ending on the
date that is two Business Days prior to the Commitment Termination Date; provided
that the Swingline Lender shall have no obligation or right to make any
Swingline Loan if, after giving effect thereto, (i) the aggregate principal
amount of Swingline Loans outstanding would exceed the Swingline Commitment
then in effect (notwithstanding that the Swingline Loans outstanding at any
time, when aggregated with the Swingline Lender’s other outstanding Advances
hereunder, may exceed the Swingline Commitment then in effect), (ii) the Series 2007-1
Class A-1 Outstanding Principal Amount would exceed the 

 

11

 

Series 2007-1 Class A-1 Maximum Principal Amount, (iii) the
Series 2007-1 Class A-1-A Outstanding Principal Amount would exceed
the Series 2007-1 Class A-1-A Maximum Principal Amount or (iv) the
Series 2007-1 Class A-1-X Outstanding Principal Amount would exceed
the Series 2007-1 Class A-1-X Maximum Principal Amount.  Each such borrowing of a Swingline Loan will
constitute a corresponding Subfacility Increase, on a pro rata
basis, in the outstanding principal amount evidenced by the Series 2007-1 Class A-1
Swingline Notes based on their respective Applicable Sub-Class Percentages
in an aggregate amount corresponding to such borrowing.  Any such Subfacility Increase caused by a
borrowing of a Swingline Loan  pursuant
to this Section 2.06(a) shall be allocated ratably among the Series 2007-1
Class A-1 Swingline Notes of each Swingline Sub-Class based on their
respective Applicable Sub-Class Percentages.  Subject to the terms of this Agreement and
the Series 2007-1 Supplement, the outstanding principal amount evidenced
by the Series 2007-1 Class A-1 Swingline Notes may be increased by
borrowings of Swingline Loans or decreased by payments of principal thereon
from time to time.

 

(b)           Whenever the Co-Issuers desire that the
Swingline Lender make Swingline Loans they shall (or shall cause the Servicer
to) give the Swingline Lender and the Class A-1 Administrative Agent
irrevocable notice in writing not later than 12:00 p.m.
(New York time) on the proposed borrowing date, specifying (i) the
amount to be borrowed, (ii) the requested borrowing date (which shall be a
Business Day during the Commitment Term not later than the date that is two
Business Days prior to the Commitment Termination Date) and (iii) the
payment instructions for the proceeds of such borrowing (which shall be
consistent with the terms and provisions of this Agreement and the Indenture).  Such notice shall be in the form of a
Swingline Loan request in the form attached as Exhibit A-1 hereto
(a “Swingline Loan Request”). 
Promptly upon receipt of any Swingline Loan Request (but in no event
later than 1:00 p.m. on the date of such receipt), the Swingline Lender
shall promptly notify the Class A-1 Administrative Agent, the Indenture
Trustee and the Series 2007-1 Class A Insurer thereof in
writing.  Each borrowing under the
Swingline Commitment shall be in a minimum amount equal to $100,000.  Promptly upon receipt of any Swingline Loan
Request (but in no event later than 2:30 p.m. on the date of such
receipt), the Class A-1 Administrative Agent (based, with respect to any
portion of the Series 2007-1 Class A-1 Outstanding Subfacility Amount
held by any Person other than the Class A-1 Administrative Agent, solely
on written notices received by the Class A-1 Administrative Agent under
this Agreement) will inform the Swingline Lender whether or not, after giving
effect to the requested Swingline Loan, (i) the Series 2007-1 Class A-1
Outstanding Principal Amount would exceed the Series 2007-1 Class A-1
Maximum Principal Amount, (ii) the Series 2007-1 Class A-1-A
Outstanding Principal Amount would exceed the Series 2007-1 Class A-1-A
Maximum Principal Amount or (iii) the Series 2007-1 Class A-1-X
Outstanding Principal Amount would exceed the Series 2007-1 Class A-1-X
Maximum Principal Amount.  If the Class A-1
Administrative Agent confirms (i) that the Series 2007-1 Class A-1
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1
Maximum Principal Amount, (ii) the Series 2007-1 Class A-1-A Outstanding Principal
Amount would not exceed the Series 2007-1 Class A-1-A Maximum
Principal Amount and (iii) the Series 2007-1 Class A-1-X Outstanding
Principal Amount would not exceed the Series 2007-1 Class A-1-X
Maximum Principal 

 

12

 

Amount after giving effect to the requested Swingline
Loan, then not later than 3:00 p.m. (New York time) on the borrowing
date specified in the Swingline Loan Request, subject to the other conditions set forth herein and
in the Series 2007-1 Supplement, the Swingline Lender shall make available
to the Co-Issuers in accordance with the payment instructions set forth in such
notice an amount in immediately available funds equal to the amount of the requested Swingline Loan.

 

(c)           The Co-Issuers
hereby agree that each Swingline Loan made by the Swingline Lender to the
Co-Issuers pursuant to Section 2.06(a) shall constitute the
promise and obligation of the Co-Issuers jointly and severally to pay to the
Swingline Lender the aggregate unpaid principal amount of all Swingline Loans
made by such Swingline Lender pursuant to Section 2.06(a),  which amounts shall be due and payable (whether at maturity
or by acceleration) as set forth in the Indenture for Series 2007-1 Class A-1
Outstanding Principal Amount.

 

(d)           The Swingline Lender, at any time and
from time to time in its sole and absolute discretion, may, on behalf of the
Co-Issuers (which hereby irrevocably direct the Swingline Lender to act on
their behalf), on one Business Day’s notice given by the Swingline Lender to
the Class A-1 Administrative Agent (who shall promptly notify each Funding
Agent of its pro  rata share thereof and shall notify the
Indenture Trustee and the Series 2007-1 Class A Insurer of such
borrowing in writing) no later than 12:00 p.m. (New York  time),
request each Investor Group to make, and the applicable Investors in each
Investor Group hereby agree to make, Advances in an aggregate amount for each
Investor Group equal to such Investor Group’s Commitment Percentage of the
aggregate amount of the Swingline Loans (the “Refunded Swingline Loans”)
outstanding on the date of such notice, to repay the Swingline Lender.  Such Investors shall make the amount of such
Advances available to the Class A-1 Administrative Agent in immediately
available funds not later than 10:00 a.m. (New York  time) one
Business Day after the date of such notice and the proceeds of such Advances
shall be immediately made available by the Class A-1 Administrative Agent
to the Swingline Lender for application by the Swingline Lender to the
repayment of the Refunded Swingline Loans; provided that after giving
effect thereto, (i) the related Investor Group Principal Amount would not
exceed the related Maximum Investor Group Principal Amount, (ii) the Series 2007-1
Class A-1 Outstanding Principal Amount would not exceed the Series 2007-1
Class A-1 Maximum Principal Amount, (iii) the Series 2007-1 Class A-1-A
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1-A
Maximum Principal Amount and (iv) the Series 2007-1 Class A-1-X
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1-X
Maximum Principal Amount.

 

(e)           If prior to the time Advances would have
otherwise been made pursuant to Section 2.06(d), an Event of
Bankruptcy shall have occurred and be continuing with respect to any Co-Issuer
or Guarantor or if for any other reason, as determined by the Swingline Lender
in its sole and absolute discretion, Advances may not be made as contemplated
by Section 2.06(d), each Committed Note Purchaser with respect to
each Advance Sub-Class shall, on the date such Advances were to have been
made pursuant to the notice referred to in Section 2.06(d) (the
“Refunding Date”), 

 

13

 

purchase for cash an undivided participating interest in the then
outstanding Swingline Loans evidenced by the Series 2007-1 Class A-1
Swingline Note having the same alphanumeric label as such Advance Sub-Class (the
“Applicable Swingline Loans”) by paying to the Swingline Lender an
amount (the “Swingline Participation Amount”) equal to (i) its
Committed Note Purchaser Percentage of the related Investor Group’s Commitment
Percentage times (ii) the sum of the aggregate principal amount of
Swingline Loans then outstanding that were to have been repaid with such
Advances.

 

(f)            Whenever, at any time after the Swingline
Lender has received from any Investor such Investor’s Swingline Participation
Amount, the Swingline Lender receives any payment on account of the Applicable
Swingline Loans, the Swingline Lender will distribute to such Investor its
Swingline Participation Amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Investor’s
participating interest was outstanding and funded and, in the case of principal
and interest payments, to reflect such Investor’s pro  rata
portion of such payment if such payment is not sufficient to pay the principal
of and interest on all Swingline Loans then due); provided, however,
that in the event that such payment received by the Swingline Lender is
required to be returned, such Investor will return to the Swingline Lender any
portion thereof previously distributed to it by the Swingline Lender.

 

(g)           Each applicable Investor’s obligation to make the
Advances referred to in Section 2.06(d) and each Committed
Note Purchaser’s obligation to purchase participating interests pursuant to Section 2.06(e) shall
be absolute and unconditional and shall not be affected by any circumstance,
including (i) any setoff, counterclaim, recoupment, defense or other right
that such Investor, Committed Note Purchaser or the Co-Issuers may have against
the Swingline Lender, the Co-Issuers or any other Person for any reason
whatsoever; (ii) the occurrence or continuance of a Default or an Event of
Default or the failure to satisfy any of the other conditions specified in Article VII
other than at the time the related Swingline Loan was made; (iii) any
adverse change in the condition (financial or otherwise) of the Co-Issuers; (iv) any
breach of this Agreement or any other Indenture Document by any Co-Issuer or
any other Person; or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.

 

(h)           The Co-Issuers may, upon three Business
Days’ notice to the Class A-1 Administrative Agent and the Swingline
Lender, effect a permanent reduction in the Swingline Commitment; provided
that any such reduction will be limited to the undrawn portion of the Swingline
Commitment.  If requested by the
Co-Issuers in writing and with the prior written consent of the Class A-1
Administrative Agent, the Swingline Lender may (but shall not be obligated to)
increase the amount of the Swingline Commitment; provided that, after
giving effect thereto, the aggregate amount of the Swingline Commitment and the
L/C Commitment does not exceed the aggregate amount of the Commitments.  Any reduction or increase made pursuant to
this Section 2.06(h) shall be made ratably among the Series 2007-1
Class A-1 Swingline Notes of each Swingline Sub-Class based on their
respective Applicable Sub-Class Percentages.

 

14

 

(i)            The Co-Issuers may, upon notice to the
Swingline Lender (who shall promptly notify the Class A-1 Administrative
Agent and the Indenture Trustee thereof in writing), at any time and from time
to time, voluntarily prepay Swingline Loans in whole or in part without premium
or penalty; provided that (x) such notice must be received by the
Swingline Lender not later than 1:00 p.m. (New York time) on the date
of the prepayment, and (y) any such prepayment shall be in a minimum
principal amount of $100,000 or a whole multiple of $100,000 in excess thereof
or, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and
amount of such prepayment.  If such
notice is given, the Co-Issuers shall make such prepayment directly to the
Swingline Lender and the payment amount specified in such notice shall be due
and payable on the date specified therein. 
Any payment made pursuant to this Section 2.06(i) shall
be made ratably among the Series 2007-1 Class A-1 Swingline Notes of
each Swingline Sub-Class based on their respective Applicable Sub-Class Percentages.

 

SECTION 2.07  L/C Commitment.

 

(a)           Subject to the terms and conditions
hereof, the L/C Provider, in reliance on the agreements of the Committed Note
Purchasers set forth in Sections 2.08 and 2.09, agrees to
provide standby letters of credit (each, a “Letter of Credit” and,
collectively, the “Letters of Credit”) for the account of the Co-Issuers
on any Business Day during the period commencing on the Series 2007-1
Closing Date and ending on the date that is seven Business Days prior to the
Commitment Termination Date to be issued in accordance with Section 2.07(h) in
such form as may be approved from time to time by the L/C Provider; provided
that the L/C Provider shall have no obligation or right to provide any Letter
of Credit if, after giving effect to such issuance, (i) the L/C
Obligations would exceed the L/C Commitment, (ii) the Series 2007-1 Class A-1
Outstanding Principal Amount would exceed the Series 2007-1 Class A-1
Maximum Principal Amount, (iii) the Series 2007-1 Class A-1-A
Outstanding Principal Amount would exceed the Series 2007-1 Class A-1-A
Maximum Principal Amount or (iv) the Series 2007-1 Class A-1-X
Outstanding Principal Amount would exceed the Series 2007-1 Class A-1-X
Maximum Principal Amount.  Each Letter of
Credit shall (x) be denominated in Dollars, (y) have a face amount of
at least $100,000 (unless otherwise agreed by the L/C Provider) and (z) expire
no later than the earlier of (A) the first anniversary of its date of
issuance and (B) the date that is seven Business Days prior to the
Commitment Termination Date; provided that any Letter of Credit may
provide for the renewal thereof for additional periods not to exceed one year
(which shall in no event extend beyond the date referred to in clause (B) above).  The L/C Provider shall not at any time be
obligated to (I) provide any Letter of Credit hereunder if such issuance
would conflict with, or cause any L/C Issuing Bank to exceed any limits imposed
by, any applicable Requirement of Law or (II) amend any Letter of Credit
hereunder if (1) the L/C Provider would have no obligation at such time to
issue such Letter of Credit in its amended form under the terms hereof or (2) the
beneficiary of such Letter of Credit does not accept the proposed amendment to
such Letter of Credit.

 

(b)           On the terms and conditions set forth in
the Indenture and this Agreement, and in reliance on the covenants,
representations and agreements set forth 

 

15

 

herein and therein, the Co-Issuers shall issue and shall cause the
Indenture Trustee to authenticate the initial Series 2007-1 Class A-1
L/C Notes for each L/C Sub-Class which the Co-Issuers shall deliver to the
L/C Provider on the Series 2007-1 Closing Date.  Such initial Series 2007-1 Class A-1
L/C Notes for each L/C Sub-Class shall be dated the Series 2007-1
Closing Date, shall be registered in the name of the L/C Provider or its
nominee, or in such other name as the L/C Provider may request, shall have a
maximum principal amount equal to the Applicable Sub-Class Percentage for
such L/C Sub-Class of the L/C Commitment, shall have an initial
outstanding principal amount equal to the Applicable Sub-Class Percentage
for such L/C Sub-Class of the Series 2007-1 Class A-1 Initial
Aggregate Undrawn L/C Face Amount, and shall be duly authenticated in
accordance with the provisions of the Indenture.  Each issuance of a Letter of Credit after the
Series 2007-1 Closing Date will constitute a corresponding Subfacility
Increase, on a pro rata basis, in the outstanding principal amount evidenced by
the Series 2007-1 Class A-1 L/C Notes based on their respective
Applicable Sub-Class Percentages, in an aggregate amount corresponding to
the Undrawn L/C Face Amount of such Letter of Credit.  All L/C Obligations (whether in respect of
Undrawn L/C Face Amounts or Unreimbursed L/C Drawings) shall be deemed to be
principal outstanding under the Series 2007-1 Class A-1 L/C Notes
based on their respective Applicable Sub-Class Percentages for all
purposes of this Agreement, the Indenture and the other Transaction Documents
other than, in the case of Undrawn L/C Face Amounts, for purposes of accrual of
interest.  Any payment of such principal
in respect of Undrawn L/C Face Amounts shall be deposited into a cash
collateral account as provided in Sections 4.02 and 4.03.  Subject to the terms of this Agreement and
the Series 2007-1 Supplement, the outstanding principal amount evidenced
by the Series 2007-1 Class A-1 L/C Notes may be increased by
issuances of Letters of Credit or decreased by expirations thereof or payments
of drawings thereunder or other circumstances resulting in the permanent
reduction in any Undrawn L/C Face Amounts from time to time.  The L/C Provider and the Co-Issuers agree to
promptly notify the Class A-1 Administrative Agent and the Indenture
Trustee of any such decreases for which notice to the Class A-1
Administrative Agent is not otherwise provided hereunder.

 

(c)           The Co-Issuers may from time to time
request that the L/C Provider provide a Letter of Credit by delivering to the
L/C Provider at its address for notices specified herein an Application
therefor (in the form required by the applicable L/C Issuing Bank as notified
to the Co-Issuers by the L/C Provider), completed to the satisfaction of the
L/C Provider, and such other certificates, documents and other papers and
information as the L/C Provider may request on behalf of the L/C Issuing
Bank.  Upon receipt of any completed
Application, the L/C Provider shall notify the Class A-1 Administrative
Agent and the Indenture Trustee in writing of the amount, the beneficiary and
the requested expiration of the requested Letter of Credit which shall comply
with Section 2.07(a) and, subject to the other conditions set
forth herein and in the Series 2007-1 Supplement and upon receipt of
confirmation from the Class A-1 Administrative Agent (based, with respect
to any portion of the Series 2007-1 Class A-1 Outstanding Subfacility
Amount held by any Person other than the Class A-1 Administrative Agent,
solely on written notices received by the Class A-1 Administrative Agent
under this Agreement) that after giving effect to the requested issuance, (i) the
Series 2007-1 Class A-1 Outstanding Principal Amount would not exceed
the 

 

16

 

Series 2007-1 Class A-1 Maximum Principal Amount, (ii) the
Series 2007-1 Class A-1-A Outstanding Principal Amount would not
exceed the Series 2007-1 Class A-1-A Maximum Principal Amount and (iii) the
Series 2007-1 Class A-1-X Outstanding Principal Amount would not
exceed the Series 2007-1 Class A-1-X Maximum Principal Amount, the
L/C Provider will cause such Application to be processed and the certificates,
documents and other papers and information delivered in connection therewith in
accordance with the L/C Issuing Bank’s customary procedures and shall promptly
provide the Letter of Credit requested thereby (but in no event shall the L/C
Provider be required to provide any Letter of Credit earlier than three
Business Days after its receipt of the Application therefor and all such other
certificates, documents and other papers and information relating thereto) by
issuing the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed to by the L/C Provider and the Co-Issuers.  The L/C Provider shall furnish a copy of such
Letter of Credit to the Servicer (with a copy to the Class A-1
Administrative Agent) promptly following the issuance thereof.  The L/C Provider shall promptly furnish to
the Class A-1 Administrative Agent, which shall in turn promptly furnish
to the Funding Agents, the Investors, the Indenture Trustee and the Series 2007-1
Class A Insurer, written notice of the issuance of each Letter of Credit
(including the amount thereof).

 

(d)           The Co-Issuers shall jointly and
severally pay fees (the “L/C Monthly Fees”) with respect to each Letter
of Credit at a per annum rate equal to the L/C Monthly Fees Rate calculated on
the daily maximum amount then available to be drawn under such Letter of Credit
(whether or not such maximum amount is then in effect under such Letter of
Credit if such maximum amount increases periodically pursuant to the terms of
such Letter of Credit) during the applicable Interest Period, shared ratably
among the Committed Note Purchasers and payable in arrears on each Payment Date
in accordance with the applicable provisions of the Indenture.  In addition, under the circumstances set
forth in Section 4.4 of the Series 2007-1 Supplement, the Co-Issuers
shall jointly and severally pay contingent additional fees in respect of the
outstanding Letters of Credit in an amount equal to the Series 2007-1 Class A-1
Contingent Additional L/C Fees payable pursuant to such Section 4.4 and
shared ratably among the Committed Note Purchasers.

 

(e)           In addition, the Co-Issuers shall jointly
and severally pay to or reimburse the L/C Provider for the following amounts
for the account of the applicable L/C Issuing Bank: (i) fronting fees (the
“L/C Fronting Fees”) with respect to each Letter of Credit issued by it
at a per annum rate equal to the L/C Fronting Fees Rate calculated on the daily
maximum amount then available to be drawn under such Letter of Credit (whether
or not such maximum amount is then in effect under such Letter of Credit if
such maximum amount increases periodically pursuant to the terms of such Letter
of Credit) during the applicable Interest Accrual Period, payable in arrears on
each Payment Date in accordance with the applicable provisions of the
Indenture, and (ii) such normal and customary costs and expenses as are
incurred or charged by the L/C Issuing Bank in issuing, negotiating, effecting
payment under, amending or otherwise administering any Letter of Credit and
separately charged to account parties (the “L/C Additional Charges”).  Subject to the Priority of Payments, the L/C
Additional Charges are due and payable within ten (10) Business Days of
demand and are nonrefundable.

 

17

 

(f)            To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions
of this Article II, the provisions of this Article II
shall apply.

 

(g)           The Co-Issuers may, upon three Business
Days’ notice to the Class A-1 Administrative Agent and the L/C Provider,
effect a permanent reduction in the L/C Commitment; provided that any
such reduction will be limited to the unused portion of the L/C
Commitment.  If requested by the
Co-Issuers in writing and with the prior written consent of the Class A-1
Administrative Agent, the L/C Provider may (but shall not be obligated to)
increase the amount of the L/C Commitment; provided  further that,
after giving effect thereto, the aggregate amount of the Swingline Commitment
and the L/C Commitment does not exceed the aggregate amount of the
Commitments.  Any reduction or increase
made pursuant to this Section 2.07(g) shall be made ratably
among the Series 2007-1 Class A-1 L/C Notes of each L/C Sub-Class based
on their respective Applicable Sub-Class Percentages.

 

(h)           The L/C Provider shall have the right to satisfy its
obligations under this Section 2.07 with respect to providing any
Letter of Credit hereunder either by issuing such Letter of Credit itself or by
causing another Person selected by the L/C Provider to issue such Letter of
Credit (the L/C Provider in its capacity as the issuer of such Letter of Credit
or such other Person selected by the L/C Provider being referred to as the “L/C
Issuing Bank”); provided that the L/C Issuing Bank is a U.S.
commercial bank that has, at the time of such issuance, (i) a short-term
certificate of deposit rating of not less than “P-1” from Moody’s and “A-1”
from S&P and (ii) a long-term unsecured debt rating of not less than “Aa1”
from Moody’s and “A+” from S&P.

 

SECTION 2.08 
L/C Reimbursement Obligations.

 

(a)           For the purpose of reimbursing the
payment of any draft presented under any Letter of Credit, the Co-Issuers
jointly and severally agree to pay the L/C Provider for its own account (if it
has already reimbursed the applicable L/C Issuing Bank for the payment of such
draft) or for the account of the L/C Issuing Bank, as applicable, on the
Business Day after the Business Day on which the L/C Provider notifies the
Co-Issuers and the Class A-1 Administrative Agent by 10:00 a.m.
(New York time) (or, on the second Business Day after the Business Day on
which the L/C Provider notifies the Co-Issuers and the Class A-1
Administrative Agent after 10:00 a.m. (New York time)) (and in each
case the Class A-1 Administrative Agent shall promptly notify the Funding
Agents) of the date and amount of such draft an amount in Dollars equal to the
sum of (i) the amount of such draft so paid (the “L/C Reimbursement
Amount” and (ii) any taxes, fees, charges or other costs or expenses
(collectively, the “L/C Other Reimbursement Costs”) incurred by the L/C
Issuing Bank in connection with such payment.  Each drawing
under any Letter of Credit shall (unless an Event of Bankruptcy shall have
occurred and be continuing with respect to any Co-Issuer or Guarantor, in which
cases the procedures specified in Section 2.09 for funding by
Committed Note Purchasers shall apply) constitute a request by the Co-Issuers
to the Class A-1 Administrative Agent and each Funding Agent for a
Borrowing pursuant to Section 2.02 in the amount of the applicable
L/C Reimbursement Amount, and the 

 

18

 

Co-Issuers agree to make such request pursuant to the procedures set
forth in Section 2.03.  The
applicable Investors in each Investor Group hereby agree to make Advances in an
aggregate amount for each Investor Group equal to such Investor Group’s
Commitment Percentage of the L/C Reimbursement Amount to pay the L/C
Provider.  Each such Advance made
pursuant to this Section 2.08(a) shall be made ratably among
the Investor Groups and their respective Series 2007-1 Class A-1
Advance Notes.  The Borrowing date with
respect to such Borrowing shall be the first date on which a Borrowing could be
made pursuant to Section 2.02 if the Class A-1 Administrative
Agent had received a notice of such Borrowing at the time the Class A-1
Administrative Agent receives notice from the L/C Provider of such drawing
under such Letter of Credit.  Such
Investors shall make the amount of such Advances available to the Class A-1
Administrative Agent in immediately available funds not later than 3:00 p.m.
(New York time) on such Borrowing date and the proceeds of such
Advances shall be immediately made available by the Class A-1
Administrative Agent to the L/C Provider for application to the reimbursement
of such drawing; provided that after giving effect thereto, (i) the
related Investor Group Principal Amount would not exceed the related Maximum
Investor Group Principal Amount, (ii) the Series 2007-1 Class A-1
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1
Maximum Principal Amount, (iii) the Series 2007-1 Class A-1-A
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1-A
Maximum Principal Amount and (iv) the Series 2007-1 Class A-1-X
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1-X
Maximum Principal Amount.

 

(b)           The Co-Issuers’ obligations under Section 2.08(a) shall
be absolute and unconditional, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances and
irrespective of (i) any setoff, counterclaim or defense to payment that
the Co-Issuers may have or have had against the L/C Provider, the L/C Issuing
Bank, any beneficiary of a Letter of Credit or any other Person, (ii) any
lack of validity or enforceability of any Letter of Credit or this Agreement,
or any term or provision therein, (iii) payment by the L/C Issuing Bank
under a Letter of Credit against presentation of a draft or other document that
does not comply with the terms of such Letter of Credit, (iv) payment by
the L/C Issuing Bank under a Letter of Credit to any Person purporting to be a
trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including any arising
in connection with any proceeding under the Bankruptcy Code or any other
liquidation, conservatorship, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization or similar
debtor relief laws of any jurisdictions or (v) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, any Co-Issuer’s obligations
hereunder.  The Co-Issuers also agree
that the L/C Provider and the L/C Issuing Bank shall not be responsible for,
and the Co-Issuers’ Reimbursement Obligations under Section 2.08(a) shall
not be affected by, among other things, the validity or genuineness of
documents or of any endorsements thereon, even though such documents shall in
fact prove to be invalid, fraudulent or forged, or any dispute between or among
the Co-Issuers and any beneficiary of any Letter of Credit or 

 

19

 

any other party to which such Letter of Credit may be transferred or
any claims whatsoever of the Co-Issuers against any beneficiary of such Letter
of Credit or any such transferee. 
Neither the L/C Provider nor the L/C Issuing Bank shall be liable for
any error, omission, interruption, loss or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with any
Letter of Credit, except for direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Co-Issuers to the
extent permitted by applicable law) caused by errors or omissions found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of the L/C Provider or
the L/C Issuing Bank, as the case may be. 
The Co-Issuers agree that any action taken or omitted by the L/C
Provider or the L/C Issuing Bank, as the case may be, under or in connection
with any Letter of Credit or the related drafts or documents, if done in the
absence of gross negligence or willful misconduct and in accordance with the
standards of care specified in the UCC of the State of New York, shall be
binding on the Co-Issuers and shall not result in any liability of the L/C
Provider or the L/C Issuing Bank to the Co-Issuers.  As between the Co-Issuers and the L/C Issuing
Bank, the Co-Issuers hereby assume all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit.  In furtherance of the foregoing and without
limiting the generality thereof, the Co-Issuers agree with the L/C Issuing Bank
that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the L/C Issuing
Bank may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

 

(c)           If any draft shall be presented for payment under any
Letter of Credit, the L/C Provider shall promptly notify the Co-Issuers and the
Class A-1 Administrative Agent of the date and amount thereof.  The responsibility of the applicable L/C
Issuing Bank to the Co-Issuers in connection with any draft presented for
payment under any Letter of Credit shall, in addition to any payment obligation
expressly provided for in such Letter of Credit, be limited to determining that
the documents (including each draft) delivered under such Letter of Credit in
connection with such presentment are substantially in conformity with such
Letter of Credit and, in paying such draft, such L/C Issuing Bank shall not
have any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by such Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of any Person(s) executing or delivering any such document.

 

SECTION 2.09  L/C Participations.

 

(a)           The L/C Provider irrevocably agrees to
grant and hereby grants to each Committed Note Purchaser with respect to each
Advance Sub-Class, and, to induce the L/C Provider to provide Letters of Credit
hereunder (and, if the L/C Provider is not the L/C Issuing Bank for any Letter
of Credit, to induce the L/C Provider to agree to reimburse such L/C Issuing
Bank for any payment of any drafts presented thereunder), each Committed Note
Purchaser with respect to such Advance Sub-Class irrevocably and 

 

20

 

unconditionally agrees to accept and purchase and hereby accepts and
purchases from the L/C Provider, on the terms and conditions set forth below,
for such Committed Note Purchaser’s own account and risk, an undivided interest
in the Series 2007-1 Class A-1 L/C Note having the same alphanumeric
label as such Advance Sub-Class (the “Applicable L/C Note”) equal
to its Committed Note Purchaser Percentage of the related Investor Group’s
Commitment Percentage of the L/C Provider’s obligations and rights under and in
respect of each Letter of Credit provided hereunder and the L/C Reimbursement
Amount with respect to each draft paid or reimbursed by the L/C Provider in
connection therewith.  Each Committed
Note Purchaser with respect to each Advance Sub-Class unconditionally and
irrevocably agrees with the L/C Provider that, if a draft is paid under any
Letter of Credit for which the L/C Provider is not paid in full by the
Co-Issuers in accordance with the terms of this Agreement, such Committed Note
Purchaser shall pay to the Class A-1 Administrative Agent upon demand of
the L/C Provider an amount equal to its Committed Note Purchaser Percentage of
the related Investor Group’s Commitment Percentage of the L/C Reimbursement
Amount with respect to such Letter of Credit, or any part thereof, that is not
so paid, which payment shall constitute an undivided participating interest in
the Applicable L/C Note; provided that after giving effect thereto, (i) the
related Investor Group Principal Amount would not exceed the related Maximum
Investor Group Principal Amount, (ii) the Series 2007-1 Class A-1
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1
Maximum Principal Amount, (iii) the Series 2007-1 Class A-1-A
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1-A
Maximum Principal Amount and (iv) the Series 2007-1 Class A-1-X
Outstanding Principal Amount would not exceed the Series 2007-1 Class A-1-X
Maximum Principal Amount.  The Class A-1
Administrative Agent shall promptly forward such amounts to the L/C Provider.

 

(b)           If any amount required to be paid by any
Committed Note Purchaser to the Class A-1 Administrative Agent for
forwarding to the L/C Provider pursuant to Section 2.09(a) in
respect of any unreimbursed portion of any payment made or reimbursed by the
L/C Provider under any Letter of Credit is paid to the Class A-1
Administrative Agent for forwarding to the L/C Provider within three Business
Days after the date such payment is due, such Committed Note Purchaser shall
pay to the Class A-1 Administrative Agent for forwarding to the L/C
Provider on demand an amount equal to the product of (i) such amount,
times (ii) the daily average Federal Funds Rate during the period from and
including the date such payment is required to the date on which such payment
is immediately available to the L/C Provider, times (iii) a fraction the
numerator of which is the number of days that elapse during such period and the
denominator of which is 360.  If any such
amount required to be paid by any Committed Note Purchaser pursuant to Section 2.09(a) is
not made available to the Class A-1 Administrative Agent for forwarding to
the L/C Provider by such Committed Note Purchaser within three Business Days
after the date such payment is due, the L/C Provider shall be entitled to
recover from such Committed Note Purchaser, on demand, such amount with
interest thereon calculated from such due date at the Base Rate.  A certificate of the L/C Provider submitted
to any Committed Note Purchaser with respect to any amounts owing under this Section shall
be conclusive in the absence of manifest error. 
Such amounts payable under this Section 2.09(b) shall
be paid without any deduction for any withholding taxes.

 

21

 

(c)           Whenever, at any time after payment has
been made under any Letter of Credit and the L/C Provider has received from any
Committed Note Purchaser its pro  rata share of such payment in
accordance with Section 2.09(a), the Class A-1 Administrative
Agent or the L/C Provider receives any payment related to such Letter of Credit
(whether directly from the Co-Issuers or otherwise, including proceeds of
collateral applied thereto by the L/C Provider), or any payment of interest on
account thereof, the Class A-1 Administrative Agent or the L/C Provider,
as the case may be, will distribute to such Committed Note Purchaser its pro
rata share thereof; provided, however, that in the event
that any such payment received by the Class A-1 Administrative Agent or
the L/C Provider, as the case may be, shall be required to be returned by the Class A-1
Administrative Agent or the L/C Provider, such Committed Note Purchaser shall
return to the Class A-1 Administrative Agent for the account of the L/C
Provider the portion thereof previously distributed by the Class A-1
Administrative Agent or the L/C Provider, as the case may be, to it.

 

(d)           Each Committed Note Purchaser’s
obligation to make the Advances referred to in Section 2.08(a) and
to pay its pro  rata share of any unreimbursed draft pursuant to Section 2.09(a) shall
be absolute and unconditional and shall not be affected by any circumstance,
including (i) any setoff, counterclaim, recoupment, defense or other right
that such Committed Note Purchaser or the Co-Issuers may have against the L/C
Provider, any L/C Issuing Bank, the Co-Issuers or any other Person for any
reason whatsoever; (ii) the occurrence or continuance of a Default or an
Event of Default or the failure to satisfy any of the other conditions
specified in Article VII other than at the time the related Letter
of Credit was issued; (iii) an adverse change in the condition (financial
or otherwise) of the Co-Issuers; (iv) any breach of this Agreement or any
other Indenture Document by any Co-Issuer or any other Person; (v) any
amendment, renewal or extension of any Letter of Credit in compliance with this
Agreement or with the terms of such Letter of Credit, as applicable; or (vi) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.

 

SECTION 2.10  Cash Collateralization of Existing Letters
of Credit.  Notwithstanding anything
to the contrary herein, the Servicer and each Co-Issuer hereby agree that all
proceeds received from Borrowings on the Series 2007-1 Closing Date up to
an aggregate amount equal to $20,746,329 shall be allocated to Cash
Collateralize the outstanding amount of all letters of credit issued under
Applebee’s International’s existing credit agreement dated as of as of December 18,
2006 (as amended, restated, supplemented and/or otherwise modified prior to the
date hereof), and entered into by and among Applebee’s International, the
lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Bank
of America, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Chicago Branch, and
Citibank, N.A., as syndication agents, and J.P. Morgan Securities Inc. and Banc
of America Securities LLC, as joint lead arrangers and book runners (the “Existing
Letters of Credit”).

 

For purposes hereof, “Cash
Collateralize” means to deposit as directed by and for the benefit of
JPMorgan Chase Bank, N.A., as collateral for the Existing Letters of Credit,
cash or deposit account balances (“cash collateral”) pursuant to documentation 

 

22

 

in form and substance
reasonably satisfactory to JPMorgan Chase Bank, N.A.(which documents are hereby
consented to by the Servicer and each of the Co-Issuers).

 

ARTICLE III

INTEREST AND FEES

 

SECTION 3.01 
Interest.

 

(a)           Each Advance funded or maintained by a
Conduit Investor through the issuance of Commercial Paper shall bear interest
at the CP Rate applicable to such Conduit Investor; provided that if at
any time such Conduit Investor is not an Eligible Conduit Investor, (i) such
Conduit Investor shall promptly notify the Class A-1 Administrative Agent
(who shall promptly notify the related Funding Agent and the Co-Issuers)
thereof and (ii) the Co-Issuers shall have the right, exercisable upon
three Business Days’ prior written notice to the Class A-1 Administrative
Agent (who shall promptly notify the related Funding Agent) to cause such
Advance commencing as of the next Payment Date to bear interest at the Base
Rate or Eurodollar Rate, as applicable, in accordance with the following
sentence.  Each Advance funded or
maintained either (A) by a Conduit Investor through means other than the
issuance of Commercial Paper or (B) by a Committed Note Purchaser or a
Program Support Provider or to the extent provided in the preceding sentence
shall bear interest at (i) the Base Rate or (ii) if the required
notice has been given pursuant to Section 3.01(b) with respect
to such Advance for any Eurodollar Interest Period, the Eurodollar Rate
applicable to such Eurodollar Interest Period for such Advance, in each case
except as otherwise provided in the definition of Eurodollar Interest Period or
in Section 3.03 or 3.04. 
For the avoidance of doubt, no Conduit Investor shall be obligated to
fund or maintain an Advance through the issuance of Commercial Paper.  By (x) 11:00 a.m. (New York
time) on the second Business Day preceding each Accounting Date, each Funding
Agent shall notify the Class A-1 Administrative Agent of the applicable CP
Rate, if any, for each Advance made by its Investor Group that bears interest
at the CP Rate and is outstanding during all or any portion of the Interest
Accrual Period ending immediately prior to such Accounting Date and (y) 3:00 p.m.
on such date, the Class A-1 Administrative Agent shall notify the
Co-Issuers, the Servicer and the Funding Agents of such applicable CP Rate and
of the applicable interest rate for each other Advance for such Interest
Accrual Period.

 

(b)           With respect to any Advance (other than
one that bears interest at the CP Rate), so long no Rapid Amortization Period
or Event of Default has commenced and is continuing, the Co-Issuers may elect
that such Advance bear interest at the Eurodollar Rate for any Eurodollar
Interest Period while such Advance is outstanding to the extent provided in Section 3.01(a) by
giving notice thereof to the Funding Agents and the Class A-1
Administrative Agent prior to 12:00 p.m. (New York time) on the date
which is three Eurodollar Business Days prior to the commencement of such
Eurodollar Interest Period.  If such
notice is not given in a timely manner, such Advance shall bear interest at the
Base Rate.  Each such conversion to or continuation
of Eurodollar Advances for a new Eurodollar Interest Period in accordance with
this Section 3.01(b) shall be in an aggregate principal amount
of $1,000,000 or an integral multiple of $500,000 in excess thereof.

 

23

 

(c)           Any outstanding Swingline Loans and
Unreimbursed L/C Drawings shall bear interest at the Base Rate unless and until
repaid by a Eurodollar Advance or a CP Rate Advance.  By (x) 11:00 a.m. (New York
time) on the second Business Day preceding each Accounting Date, the Swingline
Lender shall notify the Class A-1 Administrative Agent in reasonable
detail of the amount of interest accrued on any Swingline Loans during the
Interest Accrual Period ending on such date and the L/C Provider shall notify
the Class A-1 Administrative Agent in reasonable detail of the amount of
interest accrued on any Unreimbursed L/C Drawings during such Interest Accrual
Period and the amount of fees accrued on any Undrawn L/C Face Amounts during
such Interest Accrual Period and (y) 3:00 p.m. on such date, the Class A-1
Administrative Agent shall notify the Co-Issuers and the Servicer of the amount
of such accrued interest and fees as set forth in such notices.

 

(d)           All accrued interest pursuant to Section 3.01(a) or
(c) shall be due and payable in arrears on each Payment Date in accordance
with the applicable provisions of the Indenture.

 

(e)           In addition, under the circumstances set
forth in Section 4.4 of the Series 2007-1 Supplement, the Co-Issuers
shall jointly and severally pay contingent additional interest in respect of
the Series 2007-1 Class A-1 Outstanding Principal Amount in an amount
equal to the Series 2007-1 Class A-1 Contingent Additional Interest
and the Series 2007-1 Class A-1 Post-ARD Monthly Contingent
Additional Interest payable pursuant to such Section 4.4.

 

(f)            All computations of interest at the CP
Rate and the Eurodollar Rate, all computations of Series 2007-1 Class A-1
Contingent Additional Interest and Series 2007-1 Class A-1 Post-ARD
Monthly Contingent Additional Interest (other than any accruing on any Base
Rate Advances) and all computations of fees shall be made on the basis of a
year of 360 days and the actual number of days elapsed.  All computations of interest at the Base Rate
and all computations of Series 2007-1 Class A-1 Contingent Additional
Interest or Series 2007-1 Class A-1 Post-ARD Monthly Contingent
Additional Interest, in each case accruing on any Base Rate Advances, shall be
made on the basis of a 365 (or 366, as applicable) day year and actual number
of days elapsed.  Whenever any payment of
interest, principal or fees hereunder shall be due on a day other than a
Business Day, such payment shall be made on the next succeeding Business Day
and such extension of time shall be included in the computation of the amount
of interest owed.  Interest shall accrue
on each Advance, Swingline Loan and Unreimbursed L/C Drawing from and including
the day on which it is made to but excluding the date of repayment thereof.

 

SECTION 3.02  Fees.

 

(a)           The Co-Issuers
jointly and severally shall pay to the Class A-1 Administrative Agent for
its own account the Class A-1 Administrative Agent Fees as provided in the Series 2007-1
Class A-1 VFN Fee Letter.

 

24

 

(b)           On each Payment Date on or prior to the
Commitment Termination Date, the Co-Issuers jointly and severally shall, in
accordance with Section 4.01, pay to each Funding Agent, for the
account of the related Committed Note Purchaser(s), undrawn commitment fees
(the “Undrawn Commitment Fees”) equal to the Undrawn Commitment Fees
Rate per annum of the related Investor Group’s Commitment Percentage of the
daily average amount by which (i) the aggregate Commitment Amounts exceed (ii) the
sum of (x) the aggregate principal amount outstanding of all Advances plus
(y) all L/C Obligations then outstanding during the related Interest
Accrual Period, payable in arrears in accordance with the applicable provisions
of the Indenture.  For the avoidance of
doubt, for purposes of calculating the Undrawn Commitment Fees only, no portion
of the Commitments shall be deemed drawn as a result of any outstanding
Swingline Loans.

 

(c)           The Co-Issuers jointly and severally
shall pay the fees required pursuant to Section 2.07 in respect of
Letters of Credit.

 

(d)           All fees payable pursuant to this Section 3.02
shall be calculated in accordance with Section 3.01(f) and
paid on the date due in accordance with the applicable provisions of the
Indenture.  Once paid, all fees shall be
nonrefundable under all circumstances.

 

SECTION 3.03  Eurodollar Lending Unlawful.  If any Investor or Program Support Provider
shall determine that any Change in Law makes it unlawful, or any Official Body
asserts that it is unlawful, for any such Person to fund or maintain any
Advance as a Eurodollar Advance, the obligation of such Person to fund or
maintain any such Advance as a Eurodollar Advance shall, upon such
determination, forthwith be suspended until such Person shall notify the Class A-1
Administrative Agent, the related Funding Agent and the Co-Issuers that the
circumstances causing such suspension no longer exist, and all then outstanding
Eurodollar Advances of such Person shall be automatically converted into Base
Rate Advances at the end of the then current Eurodollar Interest Period with
respect thereto or sooner, if required by such law or assertion.  If any suspension occurs under this Section 3.03
with respect to any Investor or Program Support Provider, the Co-Issuers may
replace every member (but not any subset thereof) of the entire related
Investor Group by giving written notice to each member of such Investor Group
and the Class A-1 Administrative Agent designating one or more Persons
that are willing and able to purchase each member of such Investor Group’s
rights and obligations under this Agreement for a purchase price that with
respect to each such member of such Investor Group will equal the amount owed
to each such member of such Investor Group with respect to the Series 2007-1
Class A-1 Advance Notes (whether arising under the Indenture, this
Agreement, the Series 2007-1 Class A-1 Advance Notes or otherwise,
including any Breakage Amounts).  Upon
receipt of such written notice, each member of such Investor Group shall assign
its rights and obligations under this Agreement pursuant to and in accordance with
Sections 9.17(a), (b),  (c), and (d) as
applicable, in consideration for such purchase price and at the reasonable
expense of the Co-Issuers (including, without limitation, the reasonable
documented fees and out-of-pocket expenses of counsel to each such member); provided,

 

25

 

however, that no member of such Investor Group
shall be obligated to assign any of its rights and obligations under this
Agreement if the purchase price to be paid to such member is not at least equal
to the amount owed to such member with respect to the Series 2007-1 Class A-1
Advance Notes (whether arising under the Indenture, this Agreement, the Series 2007-1
Class A-1 Advance Notes or otherwise, including any Breakage Amounts).

 

SECTION 3.04  Deposits Unavailable.  If the Class A-1 Administrative Agent
shall have determined that:

 

(a)           by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining the
interest rate applicable hereunder to the Eurodollar Advances; or

 

(b)           with respect to any interest rate otherwise applicable
hereunder to any Eurodollar Advances the Eurodollar Interest Period for which
has not then commenced, Investor Groups holding in the aggregate more than 50%
of the Eurodollar Advances have determined that such interest rate will not
adequately and fairly reflect the cost to them of funding, agreeing to fund or
maintaining such Eurodollar Advances for such Eurodollar Interest Period,

 

then, upon notice from the
Class A-1 Administrative Agent to the Funding Agents and the Co-Issuers,
the obligations of the Investors to fund or maintain any Advance as a
Eurodollar Advance after the end of the then current Eurodollar Interest
Period, if any, with respect thereto shall forthwith be suspended until the Class A-1
Administrative Agent has notified the Funding Agents and the Co-Issuers that
the circumstances causing such suspension no longer exist.

 

SECTION 3.05 
Increased Costs, etc.  The
Co-Issuers jointly and severally agree 
to reimburse each Investor and any Program Support Provider (each, an “Affected
Person”, which term, for purposes of Sections 3.07 and 3.08,
shall also include the Swingline Lender and the L/C Issuing Bank) for any
increase in the cost of, or any reduction in the amount of any sum receivable
by any such Affected Person, including reductions in the rate of return on such
Affected Person’s capital, in respect of funding or maintaining (or of its
obligation to fund or maintain) any Advances as Eurodollar Advances that arise
in connection with any Changes in Law, except for such Changes in Law with
respect to increased capital costs and taxes which are governed by Sections 3.07
and 3.08, respectively (whether or not amounts are payable thereunder in
respect thereof).  Each such demand shall
be provided to the related Funding Agent and the Co-Issuers in writing and
shall state, in reasonable detail, the reasons therefor and the additional
amount required fully to compensate such Affected Person for such increased
cost or reduced amount or return.  Such
additional amounts (“Increased Costs”) shall be payable by the
Co-Issuers to such Funding Agent and by such Funding Agent directly to such
Affected Person on or before 15 days after the Co-Issuers’ receipt of such
notice, and such notice shall, in the absence of manifest error, be conclusive
and binding on the Co-Issuers.  The
applicable Funding Agent shall give the Co-Issuers and the Servicer prompt
written notice of any event which results in Increased Costs (provided,
that such 

 

26

 

Funding Agent shall be obligated to deliver such
written notice only upon such Funding Agent’s obtaining actual knowledge of the
accurate and complete amount of such Increased Costs) and the Co-Issuers shall
have no liability for any Increased Costs which accrue more than 365 days prior
to the time the applicable Funding Agent gives such notice.

 

SECTION 3.06  Funding Losses.  In the event any Affected Person shall incur
any loss or expense (including any loss or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such
Affected Person to fund or maintain any portion of the principal amount of any
Advance as a Eurodollar Advance) as a result of:

 

(a)           any conversion, repayment, prepayment or redemption
(for any reason, including, without limitation, as a result of any Decrease,
the acceleration of the maturity of such Eurodollar Advance) or assignment
pursuant to Section 3.03 of the principal amount of any Eurodollar
Advance on a date other than the scheduled last day of the Eurodollar Interest
Period applicable thereto;

 

(b)           any Advance not being funded or maintained as a
Eurodollar Advance after a request therefor has been made in accordance with
the terms contained herein (for a reason other than the failure of such
Affected Person to make an Advance after all conditions thereto have been met);
or

 

(c)           any failure of the Co-Issuers to make a Decrease,
prepayment or redemption with respect to any Eurodollar Advance after giving
notice thereof pursuant to the applicable provisions of the Series 2007-1
Supplement;

 

then, upon the written notice of any Affected Person
to the related Funding Agent and the Co-Issuers, the Co-Issuers jointly and
severally shall pay to such Funding Agent and such Funding Agent shall pay
directly to such Affected Person, on or before 15 days after its receipt
thereof, such amount (“Breakage Amount” or “Series 2007-1 Class A-1
Breakage Amount”) as will (in the reasonable determination of such Affected
Person) reimburse such Affected Person for such loss or expense.  Such written notice (which shall include
calculations in reasonable detail) shall, in the absence of manifest error, be
conclusive and binding on the Co-Issuers.

 

SECTION 3.07  Increased Capital Costs.  If any Change in Law affects or would affect
the amount of capital required to be maintained by any Affected Person or any
Person controlling such Affected Person and such Affected Person determines
that the rate of return on its or such controlling Person’s capital as a
consequence of its commitment or the Advances, Swingline Loans or Letters of
Credit made or issued by such Affected Person is reduced to a level below that
which such Affected Person or such controlling Person would have achieved but
for the occurrence of any such circumstance, then, in any such case after
notice from time to time by such Affected Person (or in the case of an L/C
Issuing Bank, by the L/C Provider) to the related Funding Agent and the
Co-Issuers (or, in the case of the Swingline Lender or the L/C Provider, to the
Co-Issuers), the Co-Issuers jointly and severally shall pay to such Funding
Agent (or, in 

 

27

 

the case of the Swingline Lender or the L/C Provider,
directly to such Person) and such Funding Agent shall pay to such Affected
Person, on or before 15 days after the Co-Issuers’ receipt of such notice, such
amounts (“Increased Capital Costs”) as will be sufficient to compensate
such Affected Person or such controlling Person for such reduction in rate of
return.  A statement of such Affected
Person as to any such additional amount or amounts (including calculations
thereof in reasonable detail), in the absence of manifest error, shall be
conclusive and binding on the Co-Issuers. 
In determining such additional amount, such Affected Person may use any
method of averaging and attribution that it (in its reasonable discretion)
shall deem applicable so long as it applies such method to other similar
transactions.  The applicable Funding
Agent shall give the Co-Issuers and the Servicer prompt written notice of any
event which results in Increased Capital Costs (provided, that such
Funding Agent shall be obligated to deliver such written notice only upon such
Funding Agent’s obtaining actual knowledge of the accurate and complete amount
of such Increased Capital Costs) and the Co-Issuers shall have no liability for
any Increased Costs which accrue more than 365 days prior to the time the
applicable Funding Agent gives such notice.

 

SECTION 3.08  Taxes

 

(a)           Except as otherwise required by law, all
payments by the Co-Issuers of principal of, and interest on, the Advances, the
Swingline Loans and the L/C Obligations and all other amounts payable hereunder
(including fees) shall be made free and clear of and without deduction or
withholding for or on account of any present or future income, excise,
documentary, property, stamp or franchise taxes and other taxes, fees, duties,
withholdings or other charges of any nature whatsoever imposed by any taxing
authority including all interest, penalties or additions to tax and other
liabilities with respect thereto (all such taxes, fees, duties, withholdings
and other charges, and including all interest, penalties or additions to tax
and other liabilities with respect thereto, being called “Class A-1
Taxes”), but excluding in the case of any Affected Person (i) net
income, franchise (imposed in lieu of net income) or similar Class A-1
Taxes (and including branch profits or alternative minimum Class A-1
Taxes) imposed or levied on the Affected Person as a result of a connection
between the Affected Person and the jurisdiction of the governmental authority
imposing such Class A-1 Taxes or any political subdivision or taxing
authority thereof or therein (other than any such connection arising solely
from such Affected Person having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or any
other Transaction Document) and (ii) with respect to any Affected Person
organized under the laws of a jurisdiction other than the United States or any
state of the United States (“Foreign Affected Person”), any withholding
tax that is imposed on amounts payable to the Foreign Affected Person at the
time the Foreign Affected Person becomes a party to this Agreement (or
designates a new lending office), except to the extent that such Foreign
Affected Person (or its assignor, if any) was already entitled, at the time of the
designation of the new lending office (or assignment), to receive additional
amounts from the Co-Issuers with respect to withholding tax (such Class A-1
Taxes not excluded by (i) and (ii) above being called “Non-Excluded
Taxes”).  If any Class A-1 Taxes
are imposed and required by law to be deducted from any amount payable by the
Co-Issuers 

 

28

 

hereunder, then (x) if such Class A-1 Taxes are Non-Excluded
Taxes, the amount of the payment shall be increased so that such payment is
made, after withholding or deduction for or on account of such Non-Excluded
Taxes, in an amount that is not less than the amount provided for hereunder and
(y) the Co-Issuers shall withhold the amount of such Class A-1 Taxes
from such payment (as increased, if applicable, pursuant to the preceding clause
(x)) and shall pay such amount to the taxing authority imposing such Class A-1
Taxes in accordance with applicable law.

 

(b)           Moreover, if any Non-Excluded Taxes are
directly asserted against any Affected Person or its agent with respect to any
payment received by such Affected Person or its agent from the Co-Issuers or
otherwise in respect of any Transaction Document or the transactions
contemplated therein, such Affected Person or its agent may pay such
Non-Excluded Taxes and the Co-Issuers will jointly and severally, on or before
15 days after any Co-Issuer’s receipt of written notice stating the amount of
such Non-Excluded Taxes (including the calculation thereof in reasonable detail),
pay such additional amounts (collectively, “Increased Tax Costs,” which
term shall include all amounts payable by or on behalf of any Co-Issuer
pursuant to this Section 3.08) as is necessary in order that the
net amount received by such Affected Person or agent after the payment of such
Non-Excluded Taxes (including any Non-Excluded Taxes on such additional amount)
shall equal the amount such Person would have received had no such Non-Excluded
Taxes been asserted.

 

(c)           As promptly as practicable after the
payment of any Class A-1 Taxes, and in any event within thirty (30) days
of any such payment being due, the Co-Issuers shall furnish to each applicable
Affected Person or its agents a certified copy of an official receipt (or other
documentary evidence satisfactory to such Affected Person and agents)
evidencing the payment of such Class A-1 Taxes.  If the Co-Issuers fail to pay any Class A-1
Taxes when due to the appropriate taxing authority or fail to remit to the
Affected Persons or their agents the required receipts (or such other
documentary evidence), the Co-Issuers shall jointly and severally indemnify
each Affected Person and its agents for any incremental Class A-1 Taxes
that may become payable by any such Affected Person or its agents as a result
of any such failure to the extent such amounts were previously not paid to such
Affected Person.  For purposes of this Section 3.08,
a distribution hereunder by the agent for the relevant Affected Person shall be
deemed a payment by the Co-Issuers.

 

(d)           Each Affected Person (other than any
Affected Person that is not a Foreign Affected Person and is a corporation for
federal tax purposes whose name contains any of the following:  Incorporated, Inc., Corporation, Corp.,
P.C., Insurance Company, Reinsurance Company or Assurance Company) on or prior
to the date it becomes a party to this Agreement (from time to time thereafter
as soon as practicable after the obsolescence and prior to the date of  expiration or invalidity of any form or
document previously delivered) and to the extent permissible under then current
law, shall deliver to any Co-Issuer (or to more than one Co-Issuer, as the
Co-Issuers may reasonably request), a United States Internal Revenue Service Form W-8BEN,
Form W-8ECI or Form W-9, as applicable, or applicable successor form,
or such other forms or documents (or successor forms or documents),
appropriately completed and executed, as 

 

29

 

may be applicable to establish the extent to which a payment to such
Affected Person is exempt from withholding or deduction of United States
federal withholding taxes.  The
Co-Issuers shall not be required to pay any increased amount under Section 3.08(a) or
Section 3.08(b) to an Affected Person in respect of the
withholding or deduction of United States federal withholding taxes imposed as
the result of the failure of such Affected Person to comply with the
requirements set forth in this Section 3.08(d).  The Co-Issuers may rely on any form or
document provided pursuant to this Section 3.08(d) until
notified otherwise by the Affected Person that delivered such form or document.

 

(e)           If an Affected Person determines, in its
sole discretion, that it has received a refund of any Non-Excluded Taxes as to
which it has been indemnified pursuant to this Section 3.08 or as
to which it has been paid additional amounts pursuant to this Section 3.08,
it shall promptly notify a Co-Issuer in writing of such refund and shall,
within 30 days after receipt of a written request from the Co-Issuers, pay over
such refund to a Co-Issuer (but only to the extent of indemnity payments made
or additional amounts paid to such Affected Person under this Section 3.08
with respect to the Non-Excluded Taxes giving rise to such refund), net of all
out-of-pocket expenses (including the net amount of Taxes, if any, imposed on
or with respect to such refund or payment) of the Affected Person and without
interest (other than any interest paid by the relevant taxing authority that is
directly attributable to such refund of such Non-Excluded Taxes); provided
that the Co-Issuers, immediately upon the request of the Affected Person to any
Co-Issuer (which request shall include a calculation in reasonable detail of
the amount to be repaid), agree to repay the amount of the refund (and any
applicable interest) (plus any penalties, interest or other charges imposed by
the relevant taxing authority with respect to such amount) to the Affected
Person in the event the Affected Person or any other Person is required to
repay such refund to such taxing authority. This Section 3.08 shall
not be construed to require the Affected Person to make available its Tax
returns (or any other information relating to its Taxes which it deems
confidential) to the Co-Issuers or any other Person.

 

SECTION 3.09  Change of Lending Office.  Each Committed Note Purchaser agrees that,
upon the occurrence of any event giving rise to the operation of Section 3.05
or 3.07 or the payment of additional amounts to it under Section 3.08(a) or
(b) with respect to such Committed Note Purchaser, it will, if
requested by the Co-Issuers, use commercially reasonable efforts (subject to
overall policy considerations of such Committed Note Purchaser) to avoid the
need to pay, or reduce the amount of, any reimbursement obligations under such Section 3.05,
3.07, or 3.08 including, without limitation, designating another
lending office for any Advances affected by such event with the object of
avoiding the consequences of such event; provided that such designation
is made on terms that, in the sole reasonable judgment of such Committed Note
Purchaser, cause such Committed Note Purchaser and its lending office(s) or
its related Conduit Investor to suffer no economic, legal or regulatory
disadvantage; provided  further that nothing in this Section shall
affect or postpone any of the obligations of the Co-Issuers or the rights of
any Committed Note Purchaser pursuant to Section 3.05, 3.07
and 3.08.

 

30

 

ARTICLE IV

OTHER PAYMENT TERMS

 

SECTION 4.01  Time and Method of Payment.  Except as otherwise provided in Section 4.02,
all amounts payable to any Funding Agent or Investor hereunder or with respect
to the Series 2007-1 Class A-1 Advance Notes shall be made to the Class A-1
Administrative Agent for the benefit of the applicable Person, by wire transfer
of immediately available funds in Dollars not later than 1:00 p.m.
(New York time) on the date due. 
The Class A-1 Administrative Agent will promptly distribute to the
applicable Funding Agent for the benefit of the applicable Person, or upon the
order of the applicable Funding Agent for the benefit of the applicable Person,
its pro  rata share (or other applicable share as provided herein)
of such payment by wire transfer in like funds as received.  Except as otherwise provided in Section 4.02,
all amounts payable to the Swingline Lender or the L/C Provider hereunder or
with respect to the Swingline Loans and L/C Obligations shall be made to or
upon the order of the Swingline Lender or the L/C Provider, respectively, by
wire transfer of immediately available funds in Dollars not later than 3:00 p.m.
(New York time) on the date due. 
Any funds received after that time will be deemed to have been received
on the next Business Day. The Co-Issuers’ obligations hereunder in respect of
any amounts payable to any Investor shall be discharged to the extent funds are
disbursed by the Co-Issuers to the Class A-1 Administrative Agent as
provided herein or by the Indenture Trustee in accordance with Section 4.02
whether or not such funds are properly applied by such Class A-1
Administrative Agent or by the Indenture Trustee.  The Class A-1 Administrative Agent’s
obligations hereunder in respect of any amounts payable to any Investor shall
be discharged to the extent funds are disbursed by the Class A-1
Administrative Agent to the applicable Funding Agent as provided herein whether
or not such funds are properly applied by such Funding Agent.

 

SECTION 4.02 
Order of Distributions.  Any
amounts deposited into the Series 2007-1 Class A-1 Distribution
Account in respect of accrued interest, letter of credit fees or undrawn
commitment fees shall be distributed by the Indenture Trustee or the Paying
Agent, as applicable, on the date due and payable under the Indenture and in
the manner provided therein, to the Series 2007-1 Class A-1
Noteholders of record on the applicable Record Date, ratably in proportion to
the respective amounts due to such payees at each applicable level of the
Priority of Payments in accordance with the Monthly Servicer’s Certificate, the
applicable written report provided to the Indenture Trustee under the Series 2007-1
Supplement or as provided in Section 4.3(b) of the Series 2007-1
Supplement.  Any amounts deposited into
the Series 2007-1 Class A-1 Distribution Account in respect of
outstanding principal or face amounts shall be distributed by the Indenture
Trustee or the Paying Agent, as applicable, on the date due and payable under
the Indenture and in the manner provided therein, to the Series 2007-1 Class A-1
Noteholders of record on the applicable Record Date, in the following order of
priority in accordance with the Monthly Servicer’s Certificate, the applicable
written report provided to the Indenture Trustee under the Series 2007-1
Supplement or as provided in Section 4.3(b) of the Series 2007-1
Supplement:  first, to the
Swingline Lender and the L/C Provider in respect of outstanding Swingline Loans
and 

 

31

 

Unreimbursed L/C Drawings, ratably in proportion to the respective
amounts due to such payees and on a ratable basis among the various applicable
sub-classes; second, to the other Series 2007-1 Class A-1
Noteholders in respect of their outstanding Advances, ratably in proportion
thereto (or, in the case of an allocation of the payment of a Mandatory
Decrease resulting from a Series 2007-1 Class A-1 Excess Principal
Event relating to one or more Advance Sub-Classes, to the holders of the Series 2007-1
Advance Notes of such Advance Sub-Classes ratably in proportion to the
outstanding principal amounts thereof); and, third, any balance
remaining of such amounts (up to an aggregate amount not to exceed the amount
of any then Undrawn L/C Face Amounts) shall be paid to the L/C Provider, to be
deposited by the L/C Provider into a cash collateral account in the name of the
L/C Provider in accordance with Section 4.03.  Any amounts distributed to the Class A-1
Administrative Agent pursuant to the Priority of Payments in respect of any
other amounts shall be distributed by the Class A-1 Administrative Agent
in accordance with Section 4.01 on the date such amounts are due
and payable hereunder to the applicable Series 2007-1 Class A-1
Noteholders and/or the Class A-1 Administrative Agent for its own account,
as applicable, ratably in proportion to the respective aggregate of such
amounts due to such payees.

 

SECTION 4.03  L/C Cash Collateral.  All amounts to be deposited in a cash
collateral account pursuant to Section 4.02  shall be held by the L/C Provider as
collateral to secure the Co-Issuers’ Reimbursement Obligations with respect to
any outstanding Letters of Credit.  The
L/C Provider shall have exclusive dominion and control, including the exclusive
right of withdrawal, over such account. 
Other than any interest earned on the investment of such deposit in
Permitted Investments, which investments shall be made at the written
direction, and at the risk and expense of, of the Master Issuer (provided that
if an Event of Default has occurred and is continuing, such investments shall
be made solely at the option and sole discretion of the L/C Provider), such
deposits shall not bear interest. 
Interest or profits, if any, on such investments shall accumulate in
such account and all Taxes on such amounts shall be payable by the
Co-Issuers.  Moneys in such account shall
automatically be applied by such L/C Provider to reimburse it for any
Unreimbursed L/C Drawings and on a ratable basis among the various applicable
sub-classes.  Upon expiration of all then
outstanding Letters of Credit and payment in full of all Unreimbursed L/C
Drawings, any balance remaining in such account shall be paid over (i) if
the Base Indenture and any Series Supplement remains in effect, to the
Indenture Trustee to be deposited into the Collection Account and distributed
in accordance with the terms of the Base Indenture and (ii) otherwise to
the Master Issuer.

 

ARTICLE V

THE CLASS A-1 ADMINISTRATIVE AGENT AND THE FUNDING AGENTS

 

SECTION 5.01  Authorization and Action of the Class A-1
Administrative Agent.  Each of the
Lender Parties and the Funding Agents hereby designates and appoints Lehman
Commercial Paper Inc. as the Class A-1 Administrative Agent hereunder, and
hereby authorizes the Class A-1 Administrative Agent to take such actions
as agent on their behalf and to exercise such powers as are delegated to the Class A-1
Administrative Agent by the terms of this Agreement together with such powers
as 

 

32

 

are reasonably incidental
thereto.  The Class A-1
Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any Lender
Party or any Funding Agent, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities on the part of the Class A-1
Administrative Agent shall be read into this Agreement or otherwise exist for
the Class A-1 Administrative Agent. 
In performing its functions and duties hereunder, the Class A-1
Administrative Agent shall act solely as agent for the Lender Parties and the
Funding Agents and does not assume nor shall it be deemed to have assumed any
obligation or relationship of trust or agency with or for the Co-Issuers or any
of their successors or assigns.  The Class A-1
Administrative Agent shall not be required to take any action that exposes the Class A-1
Administrative Agent to personal liability or that is contrary to this
Agreement or any Requirement of Law.  The
appointment and authority of the Class A-1 Administrative Agent hereunder
shall terminate upon the indefeasible payment in full of the Series 2007-1
Class A-1 Notes and all other amounts owed by the Co-Issuers hereunder to
the Class A-1 Administrative Agent, the Investor Groups, the Swingline
Lender and the L/C Provider (the “Aggregate Unpaids”) and termination in
full of all Commitments, the Swingline Commitment and the L/C Commitment.

 

SECTION 5.02 
Delegation of Duties.  The Class A-1
Administrative Agent may execute any of its duties under this Agreement by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Class A-1 Administrative Agent shall
not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it in good faith.

 

SECTION 5.03 
Exculpatory Provisions. 
Neither the Class A-1 Administrative Agent nor any of its
directors, officers, agents or employees shall be (a) liable for any action
lawfully taken or omitted to be taken by it or them under or in connection with
this Agreement (except for its, their or such Person’s own gross negligence or
willful misconduct), or (b) responsible in any manner to any Lender Party
or any Funding Agent for any recitals, statements, representations or
warranties made by the Co-Issuers contained in this Agreement or in any
certificate, report, statement or other document referred to or provided for
in, or received under or in connection with, this Agreement for the due
execution, legality, value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other document furnished
in connection herewith, or for any failure of any Co-Issuer to perform its
obligations hereunder, or for the satisfaction of any condition specified in Article VII.  The Class A-1 Administrative Agent shall
not be under any obligation to any Investor or any Funding Agent to ascertain
or to inquire as to the observance or performance of any of the agreements or
covenants contained in, or conditions of, this Agreement, or to inspect the
properties, books or records of the Co-Issuers. 
The Class A-1 Administrative Agent shall not be deemed to have
knowledge of any Potential Rapid Amortization Event, Rapid Amortization Event,
Change of Control, Default or Event of Default unless the Class A-1
Administrative Agent has received notice of such event from any Co-Issuer, any
Lender Party or any Funding Agent.

 

33

 

SECTION 5.04  Reliance.  The Class A-1 Administrative Agent shall
in all cases be entitled to rely, and shall be fully protected in relying, upon
any document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon advice
and statements of legal counsel (including, without limitation, counsel to the
Co-Issuers), independent accountants and other experts selected by the Class A-1
Administrative Agent.  The Class A-1
Administrative Agent shall in all cases be fully justified in failing or
refusing to take any action under this Agreement or any other document
furnished in connection herewith unless it shall first receive such advice or
concurrence of any Lender Party or any Funding Agent as it deems appropriate or
it shall first be indemnified to its satisfaction by any Lender Party or any
Funding Agent; provided that unless and until the Class A-1
Administrative Agent shall have received such advice, the Class A-1
Administrative Agent may take or refrain from taking any action, as the Class A-1
Administrative Agent shall deem advisable and in the best interests of the
Lender Parties and the Funding Agents. 
The Class A-1 Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, in accordance with a request
of (i) Investor Groups holding more than 75% of the Commitments if any one
Investor Group holds more than 50% of the Commitments or (ii) Investor
Groups holding more than 50% of the Commitments if no one Investor Group holds
more than 50% of the Commitments, and such request and any action taken or
failure to act pursuant thereto shall be binding upon the Lender Parties and
the Funding Agents.

 

SECTION 5.05  Non-Reliance on the Class A-1 Administrative
Agent and Other Purchasers.  Each of
the Lender Parties and the Funding Agents expressly acknowledges that neither
the Class A-1 Administrative Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates has made any representations
or warranties to it and that no act by the Class A-1 Administrative Agent
hereafter taken, including, without limitation, any review of the affairs of
the Co-Issuers, shall be deemed to constitute any representation or warranty by
the Class A-1 Administrative Agent. 
Each of the Lender Parties and the Funding Agents represents and
warrants to the Class A-1 Administrative Agent that it has and will,
independently and without reliance upon the Class A-1 Administrative Agent
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, operations, property,
prospects, financial and other conditions and creditworthiness of the
Co-Issuers and made its own decision to enter into this Agreement.

 

SECTION 5.06  The Class A-1 Administrative Agent in
its Individual Capacity.  The Class A-1
Administrative Agent and any of its Affiliates may make loans to, accept
deposits from, and generally engage in any kind of business with the Co-Issuers
or any Affiliate of the Co-Issuers as though the Class A-1 Administrative
Agent were not the Class A-1 Administrative Agent hereunder.

 

SECTION 5.07  Successor Class A-1 Administrative
Agent.  The Class A-1
Administrative Agent may, upon 30 days written notice to the Co-Issuers and
each of the Lender Parties and the Funding Agents, and the Class A-1
Administrative Agent will, upon the direction of Investor Groups holding (i) more
than 75% of the Commitments or 

 

34

 

(ii) if any material
default has occurred with respect to the obligations of the Class A-1
Administrative Agent set forth in Section 2.09,  4.01 or 4.02,
at least 25% of the Commitments, resign as Class A-1 Administrative
Agent.  If the Class A-1
Administrative Agent shall resign, then the (i) Investor Groups holding
more than 75% of the Commitments or (ii) if any material default has
occurred with respect to the obligations of the Class A-1 Administrative
Agent set forth in Section 2.09, 4.01 or 4.02, the
non-defaulting Investor Groups holding at least 25% of the Commitments, during
such 30 day period, shall appoint a member or an Affiliate of a member of the
Investor Groups as a successor agent, subject to the consent of (i) the
Co-Issuers at all times other than while an Event of Default has occurred and
is continuing (which consent of the Co-Issuers shall not be unreasonably
withheld) and (ii) the Series 2007-1 Controlling Party.  If for any reason no successor Class A-1
Administrative Agent is appointed by the Investor Groups during such 30 day
period, then effective upon the expiration of such 30 day period, the
Co-Issuers shall make all payments in respect of the Aggregate Unpaids or under
any fee letter delivered in connection herewith directly to the Funding Agents
or the Swingline Lender or the L/C Provider, as applicable, and for all
purposes shall deal directly with the Funding Agents or the Swingline Lender or
the L/C Provider, as applicable, until such time, if any, as a successor agent
is appointed as provided above, and the Co-Issuers shall instruct the Indenture
Trustee in writing accordingly.  After
any retiring Class A-1 Administrative Agent’s resignation hereunder as Class A-1
Administrative Agent, the provisions of Section 9.05 and this Article V
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Class A-1 Administrative Agent under this Agreement.

 

SECTION 5.08  Authorization and Action of Funding Agents.  Each Investor is hereby deemed to have
designated and appointed its related Funding Agent set forth next to such
Investor’s name on Schedule I (or identified as such Investor’s
Funding Agent pursuant to any applicable Assignment and Assumption Agreement or
Investor Group Supplement) as the agent of such Person hereunder, and hereby
authorizes such Funding Agent to take such actions as agent on its behalf and
to exercise such powers as are delegated to such Funding Agent by the terms of
this Agreement together with such powers as are reasonably incidental thereto.
Each Funding Agent shall not have any duties or responsibilities, except those
expressly set forth herein, or any fiduciary relationship with the related
Investor Group, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities on the part of such Funding Agent shall be read into
this Agreement or otherwise exist for such Funding Agent.  In performing its functions and duties
hereunder, each Funding Agent shall act solely as agent for the related
Investor Group and does not assume nor shall it be deemed to have assumed any
obligation or relationship of trust or agency with or for the Co-Issuers, any
of their successors or assigns or any other Person.  Each Funding Agent shall not be required to
take any action that exposes such Funding Agent to personal liability or that
is contrary to this Agreement or any Requirement of Law.  The appointment and authority of the Funding
Agents hereunder shall terminate upon the indefeasible payment in full of the
Aggregate Unpaids of the Investor Groups and the termination in full of all the
Commitments.

 

35

 

SECTION 5.09  Delegation of Duties.  Each Funding Agent may execute any of its
duties under this Agreement by or through agents or attorneys-in-fact and shall
be entitled to advice of counsel concerning all matters pertaining to such
duties.  Each Funding Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it in good faith.

 

SECTION 5.10  Exculpatory Provisions.  Each Funding Agent and any of its directors,
officers, agents or employees shall not be (a) liable for any action
lawfully taken or omitted to be taken by it or them under or in connection with
this Agreement (except for its, their or such Person’s own gross negligence or
willful misconduct), or (b) responsible in any manner to the related
Investor Group for any recitals, statements, representations or warranties made
by the Co-Issuers contained in this Agreement or in any certificate, report,
statement or other document referred to or provided for in, or received under
or in connection with, this Agreement, or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other document furnished in connection herewith, or for any failure of the
Co-Issuers to perform its obligations hereunder, or for the satisfaction of any
condition specified in Article VII. 
Each Funding Agent shall not be under any obligation to the related
Investor Group to ascertain or to inquire as to the observance or performance
of any of the agreements or covenants contained in, or conditions of, this
Agreement, or to inspect the properties, books or records of the Co-Issuers.  Each Funding Agent shall not be deemed to
have knowledge of any Potential Rapid Amortization Event, Rapid Amortization
Event, Change of Control, Default or Event of Default unless such Funding Agent
has received notice of such event from any Co-Issuer or any member of the
related Investor Group.

 

SECTION 5.11  Reliance.  Each Funding Agent shall in all cases be
entitled to rely, and shall be fully protected in relying, upon any document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of
the Class A-1 Administrative Agent and legal counsel (including, without
limitation, counsel to the Co-Issuers), independent accountants and other
experts selected by such Funding Agent. 
Each Funding Agent shall in all cases be fully justified in failing or
refusing to take any action under this Agreement or any other document
furnished in connection herewith unless it shall first receive such advice or
concurrence of the related Investor Group as it deems appropriate or it shall
first be indemnified to its satisfaction by the related Investor Group; provided
that unless and until such Funding Agent shall have received such advice, such
Funding Agent may take or refrain from taking any action, as such Funding Agent
shall deem advisable and in the best interests of the related Investor
Group.  Each Funding Agent shall in all
cases be fully protected in acting, or in refraining from acting, in accordance
with a request of the related Investor Group and such request and any action
taken or failure to act pursuant thereto shall be binding upon the related
Investor Group.

 

SECTION 5.12  Non-Reliance on the Funding Agent and
Other Purchasers.  The related
Investor Group expressly acknowledges that its Funding Agent

 

36

 

and any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates has not made any
representations or warranties to it and that no act by such Funding Agent
hereafter taken, including, without limitation, any review of the affairs of the
Co-Issuers, shall be deemed to constitute any representation or warranty by
such Funding Agent.  The related Investor
Group represents and warrants to such Funding Agent that it has made and will
make, independently and without reliance upon such Funding Agent and based on
such documents and information as it has deemed appropriate, its own appraisal
of and investigation into the business, operations, property, prospects,
financial and other conditions and creditworthiness of the Co-Issuers and has
made its own decision to enter into this Agreement.

 

SECTION 5.13  The Funding Agent in its Individual
Capacity.  Each Funding Agent and any
of its Affiliates may make loans to, accept deposits from and generally engage
in any kind of business with the Co-Issuers or any Affiliate of the Co-Issuers
as though such Funding Agent were not a Funding Agent hereunder.

 

SECTION 5.14  Successor Funding Agent.  Any Funding Agent may resign as Funding Agent
upon 10 days written notice to the Class A-1 Administrative Agent, the
Co-Issuers and the members of the related Investor Group.  Each Funding Agent will, upon the direction
of the related Investor Group, resign as such Funding Agent.  If any Funding Agent shall resign, then the
related Investor Group shall appoint a member or an Affiliate of a member of
the related Investor Group as a successor agent (it being understood that such
resignation shall not be effective until such successor is appointed).  After any retiring Funding Agent’s
resignation hereunder as Funding Agent, subject to the limitations set forth
herein, the provisions of Section 9.05 and this Article V
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was the Funding Agent under this Agreement.

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

SECTION 6.01  The Co-Issuers.  The Co-Issuers jointly and severally
represent and warrant to each Lender Party, as of the Series 2007-1
Closing Date and the date of each Borrowing, that:

 

(a)           each of its representations and
warranties in the Indenture and the other Transaction Documents (other than a
Transaction Document relating solely to a Series of Notes other than the Series 2007-1
Notes) is true and correct in all material respects (unless stated to relate
solely to an earlier date, in which case such representations and warranties
shall be true and correct as of such earlier date);

 

(b)           no Potential Rapid Amortization
Event, Rapid Amortization Event, Default or Event of Default has occurred and
is continuing;

 

(c)           neither they nor or
any of their Affiliates, have, directly or through an agent, engaged in any
form of general solicitation or general advertising in 

 

37

 

connection with the offering of the Series 2007-1 Class A-1
Notes under the Securities Act or in any manner involving a public offering
within the meaning of Section 4(2) of the Securities Act including,
but not limited to, advertisements, articles, notices or other communications
published in any newspaper, magazine, or similar medium or broadcast over
television or radio or any seminar or meeting whose attendees have been invited
by any general solicitation or general advertising; provided that no
representation or warranty is made with respect to the Lender Parties and their
Affiliates or the Initial Purchaser and its Affiliates; and none of the
Co-Issuers nor any of their Affiliates has entered into any contractual
arrangement with respect to the distribution of the Series 2007-1 Class A-1
Notes, except for this Agreement and the other Transaction Documents, and the
Co-Issuers will not enter into any such arrangement;

 

(d)           neither they nor
any of their Affiliates (other than the Lender Parties in connection with the
transactions contemplated by this Agreement or the Initial Purchaser, in each
case about which no representation is made by the Co-Issuers) have, directly or
through any agent, sold, offered for sale, solicited offers to buy or otherwise
negotiated in respect of, any “security”
(as defined in the Securities Act) that is or will be integrated with the sale
of the Series 2007-1 Class A-1 Notes in a manner that would require
the registration of the Series 2007-1 Class A-1 Notes under Section 4(2) or
Rule 144A of the Securities Act or under the Investment Company Act;

 

(e)           neither
they nor any of their Affiliates have taken nor will take any action prohibited
by Regulation M under the Exchange Act, in connection with the offering of the Series 2007-1
Class A-1 Notes;

 

(f)            assuming each Lender Party is not
purchasing with a view toward further distribution and there has been no
general solicitation or general advertising within the meaning of Section 502(c) of
Regulation D under the Securities Act (including, but not limited to, advertisements,
articles, notices or other communications published in any newspaper, magazine,
or similar medium or broadcast over television or radio or any seminar or
meeting whose attendees have been invited by any general solicitation or
general advertising) by
the Lender Parties or their Affiliates, and further assuming that the
representations and warranties of each Lender Party set forth in Section 6.03
of this Agreement and the representations and warranties of the Initial
Purchaser in Section 2 of the Series 2007-1 Term Note Purchase
Agreement are true and correct, the offer and sale of the Series 2007-1 Class A-1
Notes in the manner contemplated by this Agreement is a transaction exempt from
the registration requirements of the Securities Act, and the Base Indenture is
not required to be qualified under the Trust Indenture Act; and

 

(g)           each Co-Issuer has furnished to the Class A-1
Administrative Agent true, accurate and complete copies of all other
Transaction Documents (excluding Series Supplements and other Transaction
Documents relating solely to a Series of Notes other than the Series 2007-1
Notes) to which it is a party as of 

 

38

 

the Series 2007-1
Closing Date, all of which Transaction Documents are in full force and effect as
of the Series 2007-1 Closing Date and no terms of any such agreements or
documents have been amended, modified or otherwise waived as of such date,
other than such amendments, modifications or waivers about which the Co-Issuers
have informed each Funding Agent, the Swingline Lender and the L/C Provider.

 

SECTION 6.02 
Servicer.  The Servicer
represents and warrants to each Lender Party, as of the Series 2007-1
Closing Date and the date of each Borrowing, that:

 

(a)           each representation and warranty made
by it in each Transaction Document (other than a Transaction Document relating
solely to a Series of Notes other than the Series 2007-1 Notes) to
which it is a party (including any representations and warranties made by it as
Servicer) is true and correct in all material respects (unless stated to relate
solely to an earlier date, in which  case
such representations and warranties shall be true and correct in all material
respects as of such earlier date); and

 

(b)           the audited combined balance
sheet of Applebee’s International and its Affiliates as of December 31, 2006 and the related
consolidated statements of income, stockholders equity and cash flows for
fiscal year ended December 31,
2006 have been prepared in accordance with GAAP and present fairly the financial
position of Applebee’s International and its Affiliates as of the date thereof
and the results of their operations and their cash flows for the periods
covered thereby.

 

SECTION 6.03  Lender Parties.  Each of the Lender Parties represents and
warrants to the Co-Issuers and the Servicer as of the date hereof (or, in the
case of a successor or assign of an Investor, as of the subsequent date on
which such successor or assign shall become a party hereto) that:

 

(a)           it has had an opportunity to discuss
the Co-Issuers’ and the Servicer’s business, management and financial affairs,
and the terms and conditions of the proposed purchase, with the Co-Issuers and
the Servicer and their respective representatives;

 

(b)           it is an “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D
under the Securities Act and a “qualified purchaser” within the meaning of Section 2(a)(51)
of the Investment Company Act and has sufficient knowledge and experience in
financial and business matters to be capable of evaluating the merits and risks
of investing in, and is able and prepared to bear the economic risk of
investing in, the Series 2007-1 Class A-1 Notes;

 

(c)           it is purchasing the Series 2007-1
Class A-1 Notes for its own account, or for the account of one or more “accredited
investors” within the meaning of Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities 

 

39

 

Act and “qualified
purchasers” within the meaning of Section 2(a)(51) of the Investment
Company Act that meet the criteria described in subsection (b) and
for which it is acting with complete investment discretion, for investment
purposes only and not with a view to distribution, subject, nevertheless, to
the understanding that the disposition of its property shall at all times be
and remain within its control, and neither it nor its Affiliates has engaged in
any general solicitation or general advertising within the meaning of the
Securities Act with respect to the Series 2007-1 Class A-1 Notes;

 

(d)           it understands that (i) the Series 2007-1
Class A-1 Notes have not been and will not be registered or qualified
under the Securities Act or any applicable state securities laws or the
securities laws of any other jurisdiction and are being offered only in a
transaction not involving any public offering within the meaning of the
Securities Act and may not be resold or otherwise transferred unless so
registered or qualified or unless an exemption from registration or qualification
is available, (ii) the Co-Issuers are not required to register the Series 2007-1
Class A-1 Notes, (iii) any transferee must be a “qualified purchaser”
within the meaning of Section 2(a)(51) of the Investment Company Act and (iv) any
transfer must comply with the provisions of Section 2.5 of the Base
Indenture and Section 9.03 or 9.17, as applicable, of this
Agreement;

 

(e)           it will comply with the requirements
of paragraph (d) above in connection with any transfer by it of the
Series 2007-1 Class A-1 Notes;

 

(f)            it understands that the Series 2007-1
Class A-1 Notes will bear the legend set out in the form of Series 2007-1
Class A-1 Notes attached to the Series 2007-1 Supplement and be
subject to the restrictions on transfer described in such legend; and

 

(g)           it will obtain for the benefit of the
Co-Issuers from any purchaser of the Series 2007-1 Class A-1 Notes
substantially the same representations and warranties contained in the
foregoing paragraphs.

 

ARTICLE VII

CONDITIONS

 

SECTION 7.01  Conditions to Purchase and Effectiveness.  Each Lender Party will have no obligation to
purchase the Series 2007-1 Class A-1 Notes hereunder on the Series 2007-1
Closing Date, and the Commitments, the Swingline Commitment and the L/C
Commitment will not become effective, unless:

 

(a)           the Base Indenture, the Series 2007-1
Supplement, the Guaranty and Collateral Agreements,
the Series 2007-1 Class A-1 VFN Fee Letter and the other Transaction
Documents shall be in full force and effect;

 

(b)           the Series 2007-1 Class A
Policy shall have been executed and delivered to the Indenture Trustee and
shall be in full force and effect;

 

40

 

(c)           on the Series 2007-1 Closing
Date, each Investor shall have received a letter, in form and substance
reasonably satisfactory to it, from each of Moody’s and S&P stating that
the applicable ratings required by Section 6.1(d) and (e) of the
Series 2007-1 Supplement have been assigned to the Series 2007-1 Class A-1
Notes;

 

(d)           each Lender Party shall have received
opinions of counsel from Skadden, Arps, Slate, Meagher & Flom LLP,
counsel to the Co-Issuers, the Guarantors and the Parent Companies (as defined in the Series 2007-1 Term
Note Purchase Agreement), and such
local, franchise, special and foreign counsel as the Class A-1
Administrative Agent shall reasonably request, dated as of the Series 2007-1
Closing Date and addressed to the Lender Parties, with respect to such matters
as the Class A-1 Administrative Agent shall reasonably request (including,
without limitation, company matters, appropriate opinions regarding
non-consolidation, UCC security interest, tax and no-conflicts matters,
appropriate opinions to the effect that property transferred to the respective
Securitization Entities are each a “true contribution” or other absolute
transfer and is not property of the bankruptcy estate of the respective
transferors and, from appropriate special counsel, appropriate opinions
regarding franchise law matters); and

 

(e)           at the time of such purchase and
effectiveness, the additional conditions set forth in Schedule III
and all other conditions to the issuance of the Series 2007-1 Class A-1
Notes under the Indenture shall have been satisfied or waived by such Lender
Party.

 

SECTION 7.02 
Conditions to Initial Extensions of Credit.  The election of each Conduit Investor to
fund, and the obligation of each Committed Note Purchaser to fund, the initial
Borrowing hereunder, and the obligations of the Swingline Lender and the L/C
Provider to fund the initial Swingline Loan or provide the initial Letters of
Credit hereunder, respectively, shall be subject to the satisfaction of the
conditions precedent that (a) each Funding Agent shall have received a
duly executed and authenticated Series 2007-1 Class A-1 Advance Note
registered in its name or in such other name as shall have been directed by
such Funding Agent and stating that the principal amount thereof shall not
exceed the Maximum Investor Group Principal Amount of the related Investor
Group, (b) each of the Swingline Lender and the L/C Provider shall have
received a duly executed and authenticated Series 2007-1 Class A-1-A
Swingline Note and Series 2007-1 Class A-1-X Swingline Note, Series 2007-1
Class A-1-A L/C Note and Series 2007-1 Class A-1-X L/C Note, as
applicable, registered in its name or in such other name as shall have been
directed by it and stating that the principal amount thereof shall not exceed
the Applicable Sub-Class Percentage of the Swingline Commitment or L/C
Commitment, respectively, and (c) the Co-Issuers shall have paid all fees
required to be paid by them on the Series 2007-1 Closing Date, including
all fees required hereunder.

 

SECTION 7.03  Conditions to Each Extension of Credit.  The election of each Conduit Investor to
fund, and the obligation of each Committed Note Purchaser to fund, any
Borrowing on any day (including the initial Borrowing but excluding any 

 

41

 

Borrowings to repay Swingline Loans or L/C Obligations
pursuant to Section 2.05, 2.06 or 2.08, as
applicable), and the obligations of the Swingline Lender to fund any Swingline
Loan (including the initial Swingline Loan) and of the L/C Provider to provide
any Letter of Credit (including the initial one), respectively, shall be
subject to the conditions precedent that on the date of such funding or
provision, before and after giving effect thereto and to the application of any
proceeds therefrom, the following statements shall be true (without regard to (x) any
waiver, amendment or other modification of Section 7.03, (d),
(e) or (f) or any definitions used therein consented to
by the Series 2007-1 Controlling Party unless (i) Investors holding
more than 75% of the Commitments if any one Investor Group holds more than 50%
of the Commitments or (ii) Investors holding more than 50% of the
Commitments if no one Investor Group holds more than 50% of the Commitments
have consented to such waiver, amendment or other modification for purposes of
this Section 7.03 or (y) any waiver, amendment or other
modifications of Section 7.03(a), (b) or (c) or
any definitions used therein consented to by the Series 2007-1 Controlling
Party unless either (A) the Series 2007-1 Controlling Party is the Series 2007-1
Class A Insurer or (B) (i) Investors holding more than 75% of
the Commitments if any one Investor Group holds more than 50% of the
Commitments or (ii) Investors holding more than 50% of the Commitments if
no one Investor Group holds more than 50% of the Commitments have consented to
such waiver, amendment or other modification for purposes of this Section 7.03;
provided, however, that if a Rapid Amortization Event has
occurred and is continuing, consent to such waiver, amendment or other
modification from all Investors as well as the Series 2007-1 Controlling
Party is required for purposes of this Section 7.03; provided
further that if the proviso to Section 9.01 is applicable to
such waiver, amendment or other modification, then consent to such waiver,
amendment or other modification from the Persons required by such proviso shall
also be required for purposes of this Section 7.03):

 

(a)           (i) the representations and
warranties of the Co-Issuers set out in this Agreement, (ii) the
representations and warranties of the Servicer set out in this Agreement and (iii) the
representations and warranties of the Co-Issuers and the Servicer set out in
the Base Indenture and the other Transaction Documents (other than Series Supplements
and Transaction Documents relating solely to a Series of Notes other than
the Series 2007-1 Notes) to which each is a party, in each such case,
shall be true and correct in all material respects as of the date of such
funding or issuance, with the same effect as though made on that date (unless
stated to relate solely to an earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date);

 

(b)           there shall be no Potential Rapid
Amortization Event, Rapid Amortization Event, Default or Event of Default in
existence at the time of, or after giving effect to, such funding or issuance,
and no Change of Control to which the Class A Insurer and, if different,
the Series 2007-1 Controlling Party has not provided its prior written
consent;

 

(c)           (i) on or after the third
Payment Date following the Series 2007-1 Closing Date but before the
nineteenth Payment Date following the Series 2007-1 Closing Date, the
Three-Month Adjusted DSCR  is at least
1.85x as of the most 

 

42

 

recent Payment Date after
giving effect to all payments of principal of all Series of Notes
Outstanding on such Payment Date without giving credit to any Retained
Collections Contribution; and (ii) on or after the nineteenth Payment Date
following the Series 2007-1 Closing Date, the Three-Month DSCR  is at least 1.85x as of the most recent Payment Date after
giving effect to all payments of principal of all Series of Notes
Outstanding on such Payment Date without giving credit to any Retained
Collections Contribution;

 

(d)           in the case of any Borrowing, the
Co-Issuers shall have delivered to the Class A-1 Administrative Agent an
executed advance request in the form of Exhibit A hereto with
respect to such Borrowing such that, after giving effect to any such Borrowing
or Borrowings made hereunder, the advance requests under Series 2007-1 Class A-1-A
Advance Notes and Series 2007-1 Class A-1-X Advance Notes are made
ratably among Series 2007-1 Class A-1-A Advance Notes and Series 2007-1
Class A-1-X Advance Notes (each such request, an “Advance Request”
or a “Series 2007-1 Class A-1 Advance Request”);

 

(e)           all conditions to such funding or
provision specified in Section 2.02, 2.03, 2.06 or 2.07,
as applicable, shall have been satisfied; and

 

(f)            the Series 2007-1 Class A
Policy shall be in full force and effect and no Insurer Default shall have
occurred and be continuing;

 

provided, however, that neither (b) nor (c) immediately
above shall apply for one or more Borrowings made after the date of any such
events, which amounts shall not exceed $15,000,000 in the aggregate to the
extent that the proceeds of such Borrowing or Borrowings, as the case may be,
are used by the Securitization Entities to pay amounts owed to third parties
for Advertising Fees for which there are insufficient funds in the National
Advertising Fund attributable to the Securitization Entities.

 

The giving of any notice pursuant to Section 2.03,
2.06 or 2.07, as applicable, shall constitute a representation
and warranty by the Co-Issuers and the Servicer that all conditions precedent
to such funding or provision have been satisfied.

 

ARTICLE VIII

COVENANTS

 

SECTION 8.01  Covenants.  Each of the Co-Issuers, jointly and
severally, and the Servicer, severally, covenants and agrees that, until all
Aggregate Unpaids have been paid in full and all Commitments, the Swingline
Commitment and the L/C Commitment have been terminated, it will:

 

(a)           unless waived in writing by the Series 2007-1
Controlling Party in accordance with the applicable provisions of the Base
Indenture, duly and timely perform all of its covenants (both affirmative and
negative) and obligations under each Transaction Document to which it is a
party other than this Agreement;

 

43

 

(b)           not amend, modify, waive or give any
approval, consent or permission under, any provision of the Base Indenture or
any other Transaction Document to which it is a party unless any such
amendment, modification, waiver or other action is in writing and made in
accordance with the terms of the Base Indenture or such other Transaction
Document, as applicable;

 

(c)           reasonably concurrently with the time
any report, notice or other document is provided to the Rating Agencies, the Series 2007-1
Class A Insurer and/or the Indenture Trustee, or caused to be provided, by
the Co-Issuers or the Servicer under the Base Indenture, or under the Series 2007-1
Supplement or this Agreement, provide the Class A-1 Administrative Agent
(who shall provide a copy thereof to the Lender Parties) with a copy of such
report, notice or other document; provided, however, that neither
the Servicer nor the Co-Issuers shall have any obligation under this Section 8.01(c) to
deliver to the Class A-1 Administrative Agent copies of any Monthly
Noteholders’ Reports which relate solely to a Series of Notes other than
the Series 2007-1 Notes;

 

(d)           at any time and from time to time,
following reasonable prior notice from the Class A-1 Administrative Agent,
and during regular business hours, permit such Class A-1 Administrative
Agent, any Funding Agent, the Swingline Lender or the L/C Provider, or any of
their respective agents, representatives or permitted assigns, at their own
expense, access to the offices of the Servicer, the Co-Issuers and the
Guarantors, (i) to examine and make copies of and abstracts from all
documentation relating to the Collateral on the same terms as are provided to
the Indenture Trustee under Section 7.13(b) of the Base Indenture,
and (ii) to visit the offices and properties of the Servicer, the Co-Issuers
and the Guarantors for the purpose of examining such materials described in clause
(i) in this clause (d), and to discuss matters relating to the
Collateral, or the administration and performance of the Base Indenture, the Series 2007-1
Supplement and the other Transaction Documents with any of the officers or
employees of, the Servicer, the Co-Issuers and/or the Guarantors, as
applicable, having knowledge of such matters; provided, however,
that the Class A-1 Administrative Agent is entitled to one such visit
(during which it may conduct such activities) per calendar year at the expense
of the Co-Issuers; provided  further that during the continuance
of a Potential Rapid Amortization Event, Rapid Amortization Event or an Event
of Default any such Person may visit and conduct such activities at any time
and all such visits and activities shall be at the Co-Issuers’ expense;

 

(e)           not take, or cause to be taken, any
action, including, without limitation, acquiring any Margin Stock, that could
cause the transactions contemplated by the Transaction Documents to fail to
comply with the regulations of the Board of Governors of the Federal Reserve
System, including Regulations T, U and X thereof;

 

(f)            not permit any amounts owed with
respect to the Series 2007-1 Class A-1 Notes to be secured, directly
or indirectly, by any Margin Stock;

 

44

 

(g)           promptly provide such additional
financial and other information with respect to the Transaction Documents
(other than Series Supplements and Transaction Documents relating solely
to a Series of Notes other than the Series 2007-1 Notes), the
Co-Issuers, the Servicer or the Guarantors as the Class A-1 Administrative
Agent may from time to time reasonably request; and

 

(h)           deliver to the Class A-1
Administrative Agent (who shall provide a copy thereof to the Lender Parties),
the financial statements prepared pursuant to Section 12.1 of the Base
Indenture reasonably contemporaneously with the delivery of such statements
under the Base Indenture.

 

ARTICLE IX

MISCELLANEOUS PROVISIONS

 

SECTION 9.01 
Amendments.  No amendment to
or waiver or other modification of any provision of this Agreement, nor consent
to any departure therefrom by the Servicer or the Co-Issuers, shall in any event
be effective unless the same shall be in writing and signed by the Servicer,
the Co-Issuers and the Series 2007-1
Class A Insurer (or, if an Insurer Default has occurred and is
continuing with respect to the Series 2007-1 Class A Insurer or the Series 2007-1
Class A Policy is not in effect, the Class A-1 Administrative Agent
with the consent of (i) Investors
holding more than 75% of the Commitments if any one Investor Group holds more
than 50% of the Commitments or (ii) Investors holding more than 50% of the
Commitments if no one Investor Group holds more than 50% of the Commitments); provided,
however, that, in addition, (i) the prior written consent of each
affected Investor shall be required in connection with any amendment,
modification or waiver that (x) increases the amount of the Commitment of
such Investor, extends the Commitment Termination Date, modifies the conditions
to funding such Commitment or otherwise subjects such Investor to any increased
or additional duties or obligations hereunder or in connection herewith, (y) reduces
the amount or delays the timing of payment of any principal, interest, fees or
other amounts payable to such Investor hereunder, or (z) would have an
effect comparable to any of those set forth in Section 8.2 of the
Base Indenture that require the consent of each Noteholder or each affected
Noteholder; (ii) any amendment, modification or waiver that affects the
rights or duties of any of the Swingline Lender, the L/C Provider, the Class A-1
Administrative Agent or the Funding Agents shall require the prior written
consent of such affected Person; and (iii) the prior written consent of
each Investor, the Swingline Lender, the L/C Provider, the Class A-1
Administrative Agent and each Funding Agent shall be required in connection
with any amendment, modification or waiver of this Section 9.01.  For purposes of any provision of any other Transaction
Document relating to any vote, consent, direction or the like to be given by
the Series 2007-1 Class A-1 Noteholders, such vote, consent,
direction or the like shall be given by the Holders of the Series 2007-1 Class A-1
Advance Notes only and not by the Holders of any Series 2007-1 Class A-1
Swingline Notes or Series 2007-1 Class A-1 L/C Notes except to the
extent that such vote, consent, direction or the like is to be given by each
affected Noteholder.

 

45

 

SECTION 9.02 
No Waiver; Remedies.  Any
waiver, consent or approval given by any party hereto shall be effective only
in the specific instance and for the specific purpose for which given, and no
waiver by a party of any breach or default under this Agreement shall be deemed
a waiver of any other breach or default. 
No failure on the part of any party hereto to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder, or any abandonment or
discontinuation of steps to enforce the right, power or privilege, preclude any
other or further exercise thereof or the exercise of any other right.  No notice to or demand on any party hereto in
any case shall entitle such party to any other or further notice or demand in
the same, similar or other circumstances. 
The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

 

SECTION 9.03  Binding on Successors and Assigns.

 

(a)           This
Agreement shall be binding upon, and inure to the benefit of, the Co-Issuers,
the Servicer, the Lender Parties, the Funding Agents, the Class A-1
Administrative Agent and their respective successors and assigns; provided,
however, that neither any of the Co-Issuers nor the Servicer may assign
its rights or obligations hereunder or in connection herewith or any interest
herein (voluntarily, by operation of law or otherwise) without the prior
written consent of each Lender Party; provided that nothing herein shall
prevent the Co-Issuers from assigning their rights (but none of their duties or
liabilities) to the Indenture Trustee under the Base Indenture and the Series 2007-1
Supplement; provided  further that none of the Lender Parties may
transfer, pledge, assign, sell participations in or otherwise encumber its
rights or obligations hereunder or in connection herewith or any interest
herein except as permitted under Section 6.03, Section 9.17
and this Section 9.03. 
Nothing expressed herein is intended or shall be construed to give any
Person other than the Persons referred to in the preceding sentence any legal
or equitable right, remedy or claim under or in respect of this Agreement
except as provided in Section 9.16.

 

(b)           Notwithstanding
any other provision set forth in this Agreement, each Investor may at any time
grant to one or more Program Support Providers a participating interest in or lien
on such Investor’s interests in the Advances made hereunder and such Program
Support Provider, with respect to its participating interest, shall be entitled
to the benefits granted to such Investor under this Agreement.

 

(c)           In
addition to its rights under Section 9.17, each Conduit Investor
may at any time assign its rights in the Series 2007-1 Class A-1
Advance Notes (and its rights hereunder and under the Transaction Documents) to
its related Committed Note Purchaser or, subject to Section 6.03
and Section 9.17(g), its related Program Support Provider or any
Affiliate of any of the foregoing, in each case in accordance with the
applicable provisions of the Indenture. 
Furthermore, each Conduit Investor may at any time grant a security
interest in and lien on, all or any portion of its interests under this
Agreement, its Series 2007-1 Class A-1 Advance Note and all
Transaction Documents to (i) its related Committed Note Purchaser, (ii) its
Funding Agent, (iii) any Program Support Provider who, at any time now or
in the future, provides program liquidity or 

 

46

 

credit enhancement, including without limitation, an insurance policy
for such Conduit Investor relating to the Commercial Paper or the Series 2007-1
Class A-1 Advance Notes, (iv) any other Person who, at any time now
or in the future, provides liquidity or credit enhancement for the Conduit
Investors, including without limitation, an insurance policy relating to the
Commercial Paper or the Series 2007-1 Class A-1 Advance Notes or (v) any
collateral trustee or collateral agent for any of the foregoing; provided,
however, any such security interest or lien shall be released upon
assignment of its Series 2007-1 Class A-1 Advance Note to its related
Committed Note Purchaser.  Each Committed
Note Purchaser may assign its Commitment, or all or any portion of its interest
under its Series 2007-1 Class A-1 Advance Note, this Agreement and
the Transaction Documents to any Person to the extent permitted by Section 9.17.  Notwithstanding any other provisions set
forth in this Agreement, each Committed Note Purchaser may at any time create a
security interest in all or any portion of its rights under this Agreement, its
Series 2007-1 Class A-1 Advance Note and the Transaction Documents in
favor of any Federal Reserve Bank in accordance with Regulation A of the F.R.S.
Board or any similar foreign entity.

 

SECTION 9.04 
Survival of Agreement.  All
covenants, agreements, representations and warranties made herein and in the Series 2007-1
Class A-1 Notes delivered pursuant hereto shall survive the making and the
repayment of the Advances, the Swingline Loans and the Letters of Credit and
the execution and delivery of this Agreement and the Series 2007-1 Class A-1
Notes and shall continue in full force and effect until all interest on and
principal of the Series 2007-1 Class A-1 Notes, and all other amounts
owed to the Lender Parties, the Funding Agents and the Class A-1
Administrative Agent hereunder and under the Series 2007-1 Supplement have
been paid in full, all Letters of Credit have expired or been fully cash
collateralized in accordance with the terms of this Agreement and the
Commitments, the Swingline Commitment and the L/C Commitment have been
terminated.  In addition, the obligations
of the Co-Issuers and the Lender Parties under Sections 3.05, 3.06,
3.07, 3.08, 9.05, 9.10 and 9.11 shall
survive the termination of this Agreement.

 

SECTION 9.05  Payment of Costs and Expenses;
Indemnification.

 

(a)           Payment
of Costs and Expenses.  The
Co-Issuers jointly and severally agree to pay, on the Series 2007-1
Closing Date (if invoiced on or before such date) or on or before 15 days after
written demand (in all other cases), all reasonable expenses of the Class A-1
Administrative Agent, each initial Funding Agent and each initial Lender Party
(including the reasonable fees and out-of-pocket expenses of counsel to each of
the foregoing, if any, as well as the fees and expenses of the Rating Agencies)
in connection with (i) the negotiation, preparation, execution, delivery
and administration of this Agreement and of each other Transaction Document,
including schedules and exhibits, whether or not the transactions contemplated
hereby or thereby are consummated, and (ii) any amendments, waivers,
consents, supplements or other modifications to this Agreement or any other
Transaction Document as may from time to time hereafter be proposed.  The Co-Issuers further jointly and severally
agree to pay, and to hold the Class A-1 Administrative Agent, each Funding
Agent and each Lender Party harmless from all liability for (x) any breach
by the Co-Issuers of their obligations under 

 

47

 

this Agreement, (y) all reasonable costs incurred by the Class A-1
Administrative Agent, such Funding Agent or such Lender Party in enforcing this
Agreement and (z) any Non-Excluded Taxes which may be payable in
connection with the execution or delivery of this Agreement, any Borrowing or
Swingline Loan hereunder, or the issuance of the Series 2007-1 Class A-1
Notes, any Letter of Credit or any other Transaction Documents.  The Co-Issuers also jointly and severally
agree to reimburse the Class A-1 Administrative Agent, such Funding Agent
and such Lender Party upon demand for all reasonable out-of-pocket expenses
incurred by the Class A-1 Administrative Agent, such Funding Agent and
such Lender Party in connection with (1) the negotiation of any
restructuring or “work-out”, whether or not consummated, of the Transaction
Documents and (2) the enforcement of, or any waiver or amendment requested
under or with respect to, this Agreement or any other of the Transaction
Documents.

 

                Notwithstanding the foregoing,
the Co-Issuers shall have no obligation to reimburse any Lender Party for any
of the fees and/or expenses incurred by such Lender Party with respect to its
sale or assignment of all or any part of its respective rights and obligations
under this Agreement and the Series 2007-1 Class A-1 Notes pursuant
to Section 9.17.

 

(b)           Indemnification
of the Lender Parties.  In
consideration of the execution and delivery of this Agreement by the Lender
Parties, the Co-Issuers hereby jointly and severally indemnify and hold each
Lender Party and each of their officers, directors, employees and agents
(collectively, the “Indemnified Parties”) harmless from and against any
and all actions, causes of action, suits, losses, liabilities and damages, and
reasonable costs and expenses incurred in connection therewith (irrespective of
whether any such Indemnified Party is a party to the action for which
indemnification hereunder is sought and including, without limitation, any
liability in connection with the offering and sale of the Series 2007-1 Class A-1
Notes), including reasonable attorneys’ fees and disbursements (collectively,
the “Indemnified Liabilities”), incurred by the Indemnified Parties or
any of them (whether in prosecuting or defending against such actions, suits or
claims) to the extent resulting from, or arising out of, or relating to:

 

(i)            any transaction financed or to be
financed in whole or in part, directly or indirectly, with the proceeds of any
Advance, Swingline Loan or Letter of Credit; or

 

(ii)           the entering into and performance of
this Agreement and any other Transaction Document by any of the Indemnified
Parties,

 

except for (x) any such Indemnified Liabilities
arising for the account of a particular Indemnified Party by reason of the
relevant Indemnified Party’s bad faith, gross negligence, willful misconduct or
breach of representation set forth herein and (y) any fees or expenses in
connection with the negotiation, preparation, execution and delivery of this
Agreement or any of the other Transaction Documents or any amendments, waivers,
consents, supplements or other modifications thereto (other than in connection
with any enforcement, restructuring or “work-out”).  If and to the extent that the foregoing
undertaking may be unenforceable for any reason, the Co-Issuers hereby 

 

48

 

jointly and severally agree to make the maximum
contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law. The indemnity set forth
in this Section 9.05(b) shall in no event include
indemnification for any Taxes which are covered by (or expressly excluded from)
the indemnification provided in Section 3.08 or for any transfer
taxes with respect to its sale or assignment of all or any part of its
respective rights and obligations under this Agreement and the Series 2007-1
Class A-1 Notes pursuant to Section 9.17.  The Co-Issuers shall give notice to the
Rating Agencies of any claim for Indemnified Liabilities made under this Section 9.05(b).

 

(c)           Indemnification of the Class A-1
Administrative Agent and each Funding Agent.

 

(i)            In consideration of the execution
and delivery of this Agreement by the Class A-1 Administrative Agent and
each Funding Agent, the Co-Issuers hereby jointly and severally indemnify and
hold the Class A-1 Administrative Agent and each Funding Agent and each of
their officers, directors, employees and agents (collectively, the “Agent
Indemnified Parties”) harmless from and against any and all actions, causes
of action, suits, losses, liabilities and damages, and reasonable costs and
expenses incurred in connection therewith (irrespective of whether any such
Agent Indemnified Party is a party to the action for which indemnification
hereunder is sought and including, without limitation, any liability in connection
with the offering and sale of the Series 2007-1 Class A-1 Notes),
including reasonable attorneys’ fees and disbursements (collectively, the “Agent
Indemnified Liabilities”), incurred by the Agent Indemnified Parties or any
of them (whether in prosecuting or defending against such actions, suits or
claims) to the extent resulting from, or arising out of, or relating to the
entering into and performance of this Agreement and any other Transaction
Document by any of the Agent Indemnified Parties, except for (x) any such
Agent Indemnified Liabilities arising for the account of a particular Agent
Indemnified Party by reason of the relevant Agent Indemnified Party’s bad
faith, gross negligence or willful misconduct and (y) any fees or expenses
in connection with the negotiation, preparation, execution and delivery of this
Agreement or any of the other Transaction Documents or any amendments, waivers,
consents, supplements or other modifications thereto (other than in connection
with any enforcement, restructuring or “work-out”).  If and to the extent that the foregoing
undertaking may be unenforceable for any reason, the Co-Issuers hereby jointly
and severally agree to make the maximum contribution to the payment and
satisfaction of each of the Agent Indemnified Liabilities which is permissible
under applicable law.  The indemnity set
forth in this Section 9.05(c)(i) shall in no event include
indemnification for any Taxes which are covered by (or expressly excluded from)
the indemnification provided in Section 3.08.  The Co-Issuers shall give notice to the
Rating Agencies of any claim for Agent Indemnified Liabilities made under this Section 9.05(c)(i).

 

(ii)           In consideration of the execution and
delivery of this Agreement by the Class A-1 Administrative Agent and the
related Funding Agent, each 

 

49

 

Committed Note Purchaser,
ratably according to its respective Commitment, hereby indemnifies and holds
the Class A-1 Administrative Agent and each of its officers, directors,
employees and agents (collectively, the “Administrative Agent 

Indemnified Parties”) and such Funding Agent and each of its
officers, directors, employees and agents (collectively, the “Funding Agent
Indemnified Parties,” and together with the Administrative Agent
Indemnified Parties, the “Applicable Agent Indemnified Parties”)
harmless from and against any and all actions, causes of action, suits, losses,
liabilities and damages, and reasonable costs and expenses incurred in
connection therewith  (solely to the
extent not reimbursed by or on behalf of the Co-Issuers) (irrespective of
whether any such Applicable Agent Indemnified Party is a party to the action
for which indemnification hereunder is sought and including, without
limitation, any liability in connection with the offering and sale of the Series 2007-1
Class A-1 Notes), including reasonable attorneys’ fees and disbursements
(collectively, the “Applicable Agent Indemnified Liabilities”), incurred
by the Applicable Agent Indemnified Parties or any of them (whether in
prosecuting or defending against such actions, suits or claims) to the extent
resulting from, or arising out of, or relating to the entering into and
performance of this Agreement and any other Transaction Document by any of the
Applicable Agent Indemnified Parties, except for any such Applicable Agent
Indemnified Liabilities arising for the account of a particular Applicable
Agent Indemnified Party by reason of the relevant Applicable Agent Indemnified
Party’s bad faith, gross negligence or willful misconduct.  If and to the extent that the foregoing
undertaking may be unenforceable for any reason, each Committed Note Purchaser,
ratably according to its respective Commitment, hereby agrees to make the
maximum contribution to the payment and satisfaction of each of the Applicable
Agent Indemnified Liabilities which is permissible under applicable law.  The indemnity set forth in this Section 9.05(c)(ii) shall
in no event include indemnification for any Taxes which are covered by (or
expressly excluded from) the indemnification provided in Section 3.08.

 

SECTION 9.06 
Characterization as Transaction Document; Entire Agreement.  This Agreement shall be deemed to be a
Transaction Document for all purposes of the Base Indenture and the other
Transaction Documents.  This Agreement,
together with the Base Indenture, the Series 2007-1 Supplement, the
documents delivered pursuant to Article VII and the other
Transaction Documents, including the exhibits and schedules thereto, contains a
final and complete integration of all prior expressions by the parties hereto
with respect to the subject matter hereof and shall constitute the entire
agreement among the parties hereto with respect to the subject matter hereof,
superseding all previous oral statements and other writings with respect
thereto.

 

SECTION 9.07 
Notices.  All notices,
amendments, waivers, consents and other communications provided to any party
hereto under this Agreement shall be in writing and addressed, delivered or
transmitted to such party at its address or facsimile number set forth in Section 7.15
of the Series 2007-1 Supplement, in the case of the Co-Issuers or the
Servicer, or on Schedule II, in the case of the Lender Parties, the
Class A-1 Administrative Agent and the Funding Agents, or in each case at
such other address or facsimile number as may be designated by such party in a
notice to the other parties.  

 

50

 

Any notice, if mailed and properly addressed with
postage prepaid or if properly addressed and sent by pre-paid courier service,
shall be deemed given when received; any notice, if transmitted by facsimile,
shall be deemed given when transmitted upon receipt of electronic confirmation
of transmission.

 

SECTION 9.08 
Severability of Provisions. 
Any covenant, provision, agreement or term of this Agreement that is
prohibited or is held to be void or unenforceable in any jurisdiction shall, as
to that jurisdiction, be ineffective to the extent of the prohibition or unenforceability
without invalidating the remaining provisions of this Agreement.

 

SECTION 9.09 
Tax Characterization.  Each
party to this Agreement (a) acknowledges that it is the intent of the
parties to this Agreement that, for accounting purposes and for all federal,
state and local income and franchise tax purposes, the Series 2007-1 Class A-1
Notes will be treated as evidence of indebtedness, (b) agrees to treat the
Series 2007-1 Class A-1 Notes for all such purposes as indebtedness
and (c) agrees that the provisions of the Transaction Documents shall be
construed to further these intentions.

 

SECTION 9.10 
No Proceedings; Limited Recourse.

 

(a)           The
Securitization Entities.  Each of the
parties hereto (other than the Co-Issuers) hereby covenants and agrees that,
prior to the date which is one year and one day after the payment in full of
the last maturing Note issued by the Co-Issuers pursuant to the Base Indenture,
it will not institute against, or join with any other Person in instituting
against, any Securitization Entity, Applebee’s Holdings II or any Liquor
License Holder, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings, under any federal or state
bankruptcy or similar law, all as more particularly set forth in Section 16.8
of the Base Indenture and subject to any retained rights set forth therein; provided,
however, that nothing in this Section 9.10(a) shall
constitute a waiver of any right to indemnification, reimbursement or other
payment from the Securitization Entities pursuant to this Agreement, the Series 2007-1
Supplement, the Base Indenture or any other Transaction Document.  In the event that a Lender Party (solely in
its capacity as such) takes action in violation of this Section 9.10(a),
each affected Securitization Entity and if affected, Applebee’s Holdings II and
any Liquor License Holder, shall file or cause to be filed an answer with the
bankruptcy court or otherwise properly contesting the filing of such a petition
by any such Person against such Securitization Entity, Applebee’s Holdings II
or Liquor License Holder, as applicable, or the commencement of such action and
raising the defense that such Person has agreed in writing not to take such
action and should be estopped and precluded therefrom and such other defenses,
if any, as its counsel advises that it may assert.  The provisions of this Section 9.10(a) shall
survive the termination of this Agreement. 
Nothing contained herein shall preclude participation by a Lender Party
in the assertion or defense of its claims in any such proceeding involving any
Securitization Entity, Applebee’s Holdings II or any Liquor License
Holder.  The obligations of the
Co-Issuers under this Agreement are solely the limited liability company
obligations of the Co-Issuers.

 

51

 

(b)           The
Conduit Investors.  Each of the
parties hereto (other than the Conduit Investors) hereby covenants and agrees
that it will not, prior to the date which is one year and one day after the
payment in full of the latest maturing Commercial Paper or other debt
securities or instruments issued by a Conduit Investor, if any, institute
against, or join with any other Person in instituting against, such Conduit
Investor, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any federal or state
bankruptcy or similar law; provided, however, that nothing in
this Section 9.10(b) shall constitute a waiver of any right to
indemnification, reimbursement or other payment from such Conduit Investor
pursuant to this Agreement, the Series 2007-1 Supplement, the Base
Indenture or any other Transaction Document. 
In the event that the Co-Issuers, the Servicer or a Lender Party (solely
in its capacity as such) takes action in violation of this Section 9.10(b),
such related Conduit Investor may file an answer with the bankruptcy court or
otherwise properly contesting the filing of such a petition by any such Person
against such Conduit Investor or the commencement of such action and raising
the defense that such Person has agreed in writing not to take such action and
should be estopped and precluded therefrom and such other defenses, if any, as
its counsel advises that it may assert. 
The provisions of this Section 9.10(b) shall survive
the termination of this Agreement. 
Nothing contained herein shall preclude participation by the Co-Issuers,
the Servicer or a Lender Party in assertion or defense of its claims in any
such proceeding involving a Conduit Investor. 
The obligations of the Conduit Investors under this Agreement are solely
the corporate obligations of the Conduit Investors.  No recourse shall be had for the payment of
any amount owing in respect of this Agreement, including any obligation or
claim arising out of or based upon this Agreement, against any stockholder,
employee, officer, agent, director, member, affiliate or incorporator of any
Conduit Investor; provided, however, nothing in this Section 9.10(b) shall
relieve any of the foregoing Persons from any liability which any such Person
may otherwise have for its gross negligence or willful misconduct.

 

SECTION 9.11 
Confidentiality.  Each
Lender Party agrees that it shall not disclose any Confidential Information to
any Person without the prior written consent of the Servicer and the
Co-Issuers, other than (a) to their Affiliates and their officers,
directors, employees, agents and advisors, including, without limitation, legal
counsel and accountants (it being understood that the Person to whom such
disclosure is made will be informed of the confidential nature of such
Confidential Information and instructed to keep it confidential), (b) to
actual or prospective assignees and participants, and then only on a
confidential basis (after obtaining such actual or prospective assignee’s or
participant’s agreement to keep such Confidential Information confidential in a
manner substantially similar to this Section 9.11), (c) as
requested by a Governmental Authority or self-regulatory organization or
required by any law, rule or regulation or judicial process of which the
Co-Issuers or the Servicer, as the case may be, has knowledge; provided
that each Lender Party may disclose Confidential Information as requested by a
Governmental Authority or self-regulatory organization or required by any law, rule or
regulation or judicial process of which the Co-Issuers or the Servicer, as the
case may be, does not have knowledge if such Lender Party is prohibited by law,
rule or regulation from disclosing such requirement to the Co-Issuers or
the Servicer, as the case may be, (d) to Program Support Providers (after
obtaining such Program Support 

 

52

 

Providers’ agreement to keep such Confidential
Information confidential in a manner substantially similar to this Section 9.11),
(e) to any Rating Agency providing a rating for any Notes, (f) to any
rating agency providing a rating for the debt of or for the benefit of any
Conduit Investor or (g) in the course of litigation with the Co-Issuers,
the Servicer, the Series 2007-1 Class A Insurer or such Lender Party
or (h) to the Series 2007-1 Class A Insurer.

 

“Confidential Information” means information
that the Co-Issuers or the Servicer furnishes to a Lender Party, but does not
include (i) any such information that is or becomes generally available to
the public other than as a result of a disclosure by a Lender Party or other
Person to which a Lender Party delivered such information, (ii) any such
information that was in the possession of a Lender Party prior to its being
furnished to such Lender Party by the Co-Issuers or the Servicer, or (iii) any
such information that is or becomes available to a Lender Party from a source
other than the Co-Issuers or the Servicer; provided that, with respect
to clauses (ii) and (iii) herein, such source is not (x) known
to a Lender Party to be bound by a confidentiality agreement with the
Co-Issuers, the Servicer or the Series 2007-1 Class A Insurer, as the
case may be, or (y) known to a Lender Party to be otherwise prohibited
from transmitting the information by a contractual, legal or fiduciary
obligation.

 

SECTION 9.12 
GOVERNING LAW.  THIS AGREEMENT AND ALL MATTERS ARISING UNDER
OR IN ANY MANNER RELATING TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK  WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES (OTHER THAN
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK).

 

SECTION 9.13 
JURISDICTION.  ALL JUDICIAL PROCEEDINGS
BROUGHT AGAINST ANY OF THE PARTIES HEREUNDER WITH RESPECT TO THIS AGREEMENT MAY BE
BROUGHT IN ANY STATE OR (TO THE EXTENT PERMITTED BY LAW) FEDERAL COURT OF
COMPETENT JURISDICTION SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW
YORK AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREUNDER
ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND
UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, AND
IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION
WITH THIS AGREEMENT.

 

SECTION 9.14 
WAIVER OF JURY TRIAL.  ALL PARTIES HEREUNDER HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS AGREEMENT, OR ANY 

 

53

 

COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE PARTIES IN CONNECTION HEREWITH OR
THEREWITH.  ALL PARTIES ACKNOWLEDGE AND
AGREE THAT THEY HAVE RECEIVED FULL AND SIGNIFICANT CONSIDERATION FOR THIS
PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR ALL PARTIES TO
ENTER INTO THIS AGREEMENT.

 

SECTION 9.15 
Counterparts.  This
Agreement may be executed in any number of counterparts (which may include
facsimile) and by the different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original, and all of which
together shall constitute one and the same instrument.

 

SECTION 9.16 
Third Party Beneficiary. 
The Series 2007-1 Class A Insurer is an express third party
beneficiary of this Agreement.

 

SECTION 9.17  Assignment.

 

(a)           Subject
to Sections 6.03 and 9.17(b), (d) and (g), any
Committed Note Purchaser may at any time sell all or any part of its rights and
obligations under this Agreement, the Series 2007-1 Class A-1 Advance
Notes and any other Transaction Documents to which it is a party, with the
prior written consent (not to be unreasonably withheld) of the Co-Issuers, the
Swingline Lender and the L/C Provider, to one or more financial institutions
(an “Acquiring Committed Note Purchaser”) pursuant to an assignment and
assumption agreement, substantially in the form of Exhibit B (the “Assignment
and Assumption Agreement”), executed by such Acquiring Committed Note
Purchaser, such assigning Committed Note Purchaser and the Funding Agent with
respect to such Committed Note Purchaser and, if applicable, the Co-Issuers,
the Swingline Lender and the L/C Provider, and delivered to the Class A-1
Administrative Agent; provided that no consent of the Co-Issuers, the
L/C Provider or the Swingline Lender shall be required for an assignment to
another Committed Note Purchaser or any Affiliate of a Committed Note
Purchaser; provided  further that no consent of the Co-Issuers
shall be required if an Event of Default has occurred and is continuing.

 

(b)           Without
limiting the foregoing, subject to Sections 6.03 and 9.17(g), any
Committed Note Purchaser may assign all or a portion of the Investor Group
Principal Amount with respect to such Committed Note Purchaser and its rights
and (to the extent applicable to Conduit Investors) obligations under this
Agreement, the Series 2007-1 Class A-1 Notes and any other
Transaction Documents to which it is a party to a Conduit Assignee with respect
to such Committed Note Purchaser, without the prior written consent of the
Co-Issuers or any other Person.  Upon
such assignment by a Committed Note Purchaser to a Conduit Assignee, (i) such
Conduit Assignee shall be the owner of the Investor Group Principal Amount or
such portion thereof with respect to such Committed Note Purchaser, (ii) the
Funding Agent for such Committed Note Purchaser will act as the Funding Agent
for such Conduit Assignee hereunder, with all corresponding rights and powers,
express or implied, granted to the Funding Agent hereunder or under the other
Transaction Documents, (iii) such Conduit Assignee and its 

 

54

 

liquidity support provider(s) and credit support provider(s) and
other related parties, in each case relating to the Commercial Paper and/or the
Series 2007-1 Class A-1 Notes, shall have the benefit of all the rights
and protections provided to such Committed Note Purchaser herein and in the
other Transaction Documents (including, without limitation, any limitation on
recourse against such Conduit Assignee as provided in this Agreement), (iv) such
Conduit Assignee shall assume all of the obligations of the Committed Note
Purchaser, if any, to the extent they are applicable to a Conduit Investor
hereunder or under the Base Indenture or under any other Transaction Document
with respect to such portion of the Investor Group Principal Amount and, except
as provided in the last sentence of this Section 9.17(b) such
Committed Note Purchaser shall be released from such obligations, (v) all
distributions in respect of the Investor Group Principal Amount or such portion
thereof with respect to such Committed Note Purchaser to the extent assigned to
the Conduit Assignee shall be made to the applicable Funding Agent on behalf of
such Conduit Assignee, (vi) the definition of the term “CP Rate” with
respect to the portion of the Investor Group Principal Amount with respect to
such Conduit Assignee, as applicable, funded or maintained with Commercial
Paper, if any, from time to time shall be determined in the manner set forth in
the definition of “CP Rate” applicable to such Conduit Assignee on the basis of
the costs referred to therein applicable to such Conduit Assignee (rather than
any other Conduit Investor), (vii) the Conduit Assignee shall be a Conduit
Investor that is part of the same Investor Group as the assigning Committed Note
Purchaser and the defined terms and other terms and provisions of this
Agreement and the other Transaction Documents shall be interpreted in
accordance with the foregoing, and (viii) if requested by the Funding
Agent with respect to such Conduit Assignee, the parties will execute and
deliver such further agreements and documents and take such other actions as
the Funding Agent may reasonably request to evidence and give effect to the
foregoing.  No assignment by any
Committed Note Purchaser to a Conduit Assignee of all or any portion of the
Investor Group Principal Amount with respect to such Committed Note Purchaser
shall in any way diminish the obligation of such Committed Note Purchaser under
Section 2.03 to fund any Increase not funded by such Conduit
Assignee.

 

(c)           Without
limiting the foregoing, subject to Sections 6.03 and 9.17(g),
and in addition to its rights under Section 9.03(c), each Conduit
Investor may assign all or a portion of the Investor Group Principal Amount
with respect to such Conduit Investor and its rights and obligations under this
Agreement, the Series 2007-1 Class A-1 Advance Notes and any other
Transaction Documents to which it is a party to a Conduit Assignee with respect
to such Conduit Investor, without the prior written consent of the Co-Issuers
or any other Person.  Upon such
assignment by a Conduit Investor to a Conduit Assignee, (i) such Conduit
Assignee shall be the owner of the Investor Group Principal Amount or such
portion thereof with respect to such Conduit Investor, (ii) the Funding
Agent for such Conduit Investor will act as the Funding Agent for such Conduit
Assignee hereunder, with all corresponding rights and powers, express or
implied, granted to the Funding Agent hereunder or under the other Transaction
Documents, (iii) such Conduit Assignee and its liquidity support provider(s) and
credit support provider(s) and other related parties, in each case
relating to the Commercial Paper and/or the Series 2007-1 Class A-1
Advance Notes, shall have the benefit of all the rights and protections
provided to such Conduit Investor herein and in the other Transaction 

 

55

 

Documents (including, without limitation, any limitation on recourse
against such Conduit Assignee as provided in this Agreement), (iv) such
Conduit Assignee shall assume all of such Conduit Investor’s obligations, if
any, hereunder or under the Base Indenture or under any other Transaction
Document with respect to such portion of the Investor Group Principal Amount
and such Conduit Investor shall be released from such obligations, (v) all
distributions in respect of the Investor Group Principal Amount or such portion
thereof with respect to such Conduit Investor shall be made to the applicable
Funding Agent on behalf of such Conduit Assignee, (vi) the definition of
the term “CP Rate” with respect to the portion of the Investor Group Principal
Amount with respect to such Conduit Assignee, as applicable, funded or
maintained with Commercial Paper, if any, from time to time shall be determined
in the manner set forth in the definition of “CP Rate” applicable to such
Conduit Assignee on the basis of the costs referred to therein applicable to
such Conduit Assignee (rather than any other Conduit Investor), (vii) the
defined terms and other terms and provisions of this Agreement and the other
Transaction Documents shall be interpreted in accordance with the foregoing,
and (viii) if requested by the Funding Agent with respect to such Conduit
Assignee, the parties will execute and deliver such further agreements and
documents and take such other actions as the Funding Agent may reasonably
request to evidence and give effect to the foregoing.  No assignment by any Conduit Investor to a
Conduit Assignee of all or any portion of the Investor Group Principal Amount
with respect to such Conduit Investor shall in any way diminish the obligation
of the Committed Note Purchasers in the same Investor Group as such Conduit
Investor under Section 2.03 to fund any Increase not funded by such
Conduit Investor or such Conduit Assignee.

 

(d)           Without
limiting any of the foregoing, subject to Sections 6.03 and 9.17(g),
any Conduit Investor and the related Committed Note Purchaser(s) may at
any time sell all or any part of their respective rights and obligations under
this Agreement, the Series 2007-1 Class A-1 Advance Notes and any
other Transaction Documents to which it is a party, with the prior written
consent (not to be unreasonably withheld) of the Co-Issuers, the Swingline
Lender and the L/C Provider, to a multi-seller commercial paper conduit, whose
Commercial Paper is rated by at least two of the Specified Rating Agencies and
is rated at least “A-1” from Standard & Poor’s, “P1” from Moody’s
and/or “F1” from Fitch, as applicable, and one or more financial institutions
providing support to such multi-seller commercial paper conduit (an “Acquiring
Investor Group”) pursuant to a transfer supplement, substantially in the
form of Exhibit C (the “Investor Group Supplement” or the “Series 2007-1
Class A-1 Investor Group Supplement”), executed by such Acquiring
Investor Group, the Funding Agent with respect to such Acquiring Investor Group
(including the Conduit Investor and the Committed Note Purchasers with respect
to such Investor Group), such assigning Conduit Investor and the Committed Note
Purchasers with respect to such Conduit Investor, and the Funding Agent with
respect to such assigning Conduit Investor and Committed Note Purchasers, and
if applicable, the Co-Issuers, the Swingline Lender and the L/C Provider, and
delivered to the Class A-1 Administrative Agent; provided that no
consent of the Co-Issuers, the L/C Provider or the Swingline Lender shall be
required for an assignment to another Committed Note Purchaser or any Affiliate
of a Committed Note Purchaser and its related Conduit Investor; provided
further that no consent of the Co-Issuers shall be required if an Event
of Default has occurred and is continuing.

56

 

(e)           Subject
to Sections 6.03 and 9.17(g), the Swingline Lender may at
any time assign all its rights and obligations hereunder and under each of the Series 2007-1
Class A-1 Swingline Notes, in whole but not in part, with the prior
written consent of the Co-Issuers and the Class A-1 Administrative Agent,
which consent shall not be unreasonably withheld, to a financial institution
pursuant to an agreement with, and in form and substance reasonably
satisfactory to, the Class A-1 Administrative Agent and the Co-Issuers,
whereupon the assignor shall be released from its obligations hereunder; provided
that no consent of the Co-Issuers shall be required if an Event of Default has
occurred and is continuing.

 

(f)            Subject
to Sections 6.03 and 9.17(g), the L/C Provider may at any
time assign all or any portion of its rights and obligations hereunder and
under each of the Series 2007-1 Class A-1 L/C Notes, with the prior
written consent of the Co-Issuers and the Class A-1 Administrative Agent,
which consent shall not be unreasonably withheld, to a financial institution
pursuant to an agreement with, and in form and substance reasonably
satisfactory to, the Class A-1 Administrative Agent and the Co-Issuers, a
copy of which shall be provided to the Series 2007-1 Class A Insurer,
whereupon the assignor shall be released from its obligations hereunder to the
extent so assigned; provided that no consent of the Co-Issuers shall be
required if an Event of Default has occurred and is continuing.

 

(g)           Any
assignment of the Series 2007-1 Class A-1 Notes shall be made in
accordance with the applicable provisions of the Indenture; provided however, if the holder of any Series 2007-1 Class A-1
Advance Note transfers, in whole or in part, its interest therein pursuant to
an Assignment and Assumption Agreement or an Investor Group Supplement, then
such holder will not be required to submit a certificate substantially in the
form of Exhibit F to the Base Indenture upon transfer of such interest.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

57

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed by their duly authorized officers and
delivered as of the day and year first above written.

 

	
   

  	
  APPLEBEE’S ENTERPRISES LLC, as Co-

  Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Carin Stutz

  
	
   

  	
   

  	
  Name: Carin L. Stutz

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S IP LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Carin Stutz

  
	
   

  	
   

  	
  Name: Carin L. Stutz

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS NORTH

     LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Carin Stutz

  
	
   

  	
   

  	
  Name: Carin L. Stutz

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS MID-

     ATLANTIC LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Carin Stutz

  
	
   

  	
   

  	
  Name: Carin L. Stutz

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS WEST

     LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Beverly Elving

  
	
   

  	
   

  	
  Name: Beverly Elving

  
	
   

  	
   

  	
  Title:

  

 

Signature Page to
Series 2007-1 Class A-1 Note Purchase Agreement

 

 

	
   

  	
  APPLEBEE’S RESTAURANTS

         VERMONT, INC., as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Rebecca Tilden

  
	
   

  	
   

  	
  Name: Rebecca R. Tilden

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  TEXAS

         LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Carin Stutz

  
	
   

  	
   

  	
  Name: Carin L. Stutz

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS INC., as

         Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Carin Stutz

  
	
   

  	
   

  	
  Name: Carin L. Stutz

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  KANSAS

         LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Carin Stutz

  
	
   

  	
   

  	
  Name: Crain L. Stutz

  
	
   

  	
   

  	
  Title:   President

  
	
   

  	
   

  	
   

  

 

Signature Page to Series 2007-1 Class A-1 Note
Purchase Agreement

 

 

	
   

  	
  APPLEBEE’S SERVICES,
  INC., as

         Servicer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Rebecca Tilden

  
	
   

  	
   

  	
  Name: Rebecca Tilden

  
	
   

  	
   

  	
  Title:   Secretary

  

 

Signature Page to
Series 2007-1 Class A-1 Note Purchase Agreement

 

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

        as Class A-1 Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Prezioso

  
	
   

  	
  Name: Frank Prezioso

  
	
   

  	
  Title: Managing Director

  
	
   

  	
  Address: 745 Seventh Avenue,

  
	
   

  	
   

  	
  13th Floor

  
	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
  Attention: Michelle Rosolinsky, Vice

                   President

  
	
   

  	
  Facsimile: 646-758-5015

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

        as Swingline Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Prezioso

  
	
   

  	
  Name: Frank Prezioso

  
	
   

  	
  Title: Managing Director

  
	
   

  	
  Address: 745 Seventh Avenue,

  
	
   

  	
   

  	
  13th Floor

  
	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
  Attention: Michelle Rosolinsky, Vice

                   President

  
	
   

  	
  Facsimile: 646-758-5015

  
	
   

  	
   

  
	
   

  	
  LEHMAN BROTHERS BANK, FSB, as

         Committed Note Purchaser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vincent Primiano

  
	
   

  	
  Name: Vincent Primiano

  
	
   

  	
  Title: Managing Director

  
	
   

  	
  Address: 745 Seventh Avenue,

  
	
   

  	
   

  	
  30th Floor

  
	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
  Attention: Errington Hibbert

                   Managing
  Director

  
	
   

  	
  Facsimile: 646-758-1007

  

 

Signature Page to
Series 2007-1 Class A-1 Note Purchase Agreement

 

 

	
   

  	
  LEHMAN BROTHERS BANK, FSB, as

        Funding Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Vincent Primiano

  
	
   

  	
   

  	
  Name: Vincent Primiano

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
  Address: 745 Seventh Avenue,

  
	
   

  	
   

  	
   

  	
  30th Floor

  
	
   

  	
   

  	
   

  	
  New York, NY 10019

  
	
   

  	
   

  	
  Attention: Errington Hibbert

                   Managing
  Director

  
	
   

  	
   

  	
  Facsimile: 646-758-1007

  

 

Signature Page to
Series 2007-1 Class A-1 Note Purchase Agreement

 

 

SCHEDULE I 

TO CLASS A-1 NOTE PURCHASE AGREEMENT

 

CLASS A-1-A:

INVESTOR GROUPS AND COMMITMENTS

 

	
  Class A-1-A

  Investor Group/

  Funding Agent

  	
   

  	
  Maximum

  Investor Group

  Principal Amount

  	
   

  	
  Conduit Investor

  (if any)

  	
   

  	
  Committed Note

  Purchaser(s)

  	
   

  	
  Commitment

  Amount

  	
   

  
	
  A-1-A

  GROUP/LEHMAN

  BROTHERS

  BANK, FSB

  	
   

  	
  $

  	
   30,000,000

  	
   

  	
  N/A

  	
   

  	
  LEHMAN

  BROTHERS

  BANK, FSB

  	
   

  	
  $

  	
   30,000,000

  	
   

  
												

 

CLASS A-1-X:

INVESTOR GROUPS AND COMMITMENTS

 

	
  Class A-1-X

  Investor Group/

  Funding Agent

  	
   

  	
  Maximum

  Investor Group

  Principal Amount

  	
   

  	
  Conduit Investor

  (if any)

  	
   

  	
  Committed Note

  Purchaser(s)

  	
   

  	
  Commitment

  Amount

  	
   

  
	
  A-1-X

  GROUP/LEHMAN

  BROTHERS

  BANK, FSB

  	
   

  	
  $

  	
   70,000,000

  	
   

  	
  N/A

  	
   

  	
  LEHMAN

  BROTHERS

  BANK, FSB

  	
   

  	
  $

  	
   70,000,000

  	
   

  
												

 

1

 

	
   

  	
  SCHEDULE II TO CLASS A-1

  
	
   

  	
  NOTE PURCHASE AGREEMENT

  

 

NOTICE ADDRESSES FOR LENDER PARTIES AND AGENTS

 

COMMITTED NOTE PURCHASERS:

 

Lehman Brothers Bank, FSB

745 Seventh Avenue, 13th Floor

New York, NY 
10019

Attention: 
Errington Hibbert, Managing

Phone:  (212) 526-5856

Fax:  [•]

 

FUNDING AGENTS:

 

Lehman Brothers Bank, FSB

745 Seventh Avenue, 13th Floor

New York, NY 
10019

Attention: 
Errington Hibbert, Managing

Phone:  (212) 526-5856

Fax:  [•]

 

CLASS A-1 ADMINISTRATIVE AGENT:

 

Lehman
Commercial Paper Inc.

Michelle Rosolinsky

Vice President

745 Seventh Avenue, 16th
Floor

New York, NY  10019

Phone: (212) 526-8275

Fax: (646) 758-5015

 

with a
copy to:

 

Maritza
Ospina

Assistant Vice President

745 Seventh Avenue, 16th
Floor

New York, NY  10019

Phone: (212) 526-4332

1

 

SCHEDULE II 

TO CLASS A-1 NOTE PURCHASE AGREEMENT

 

SWINGLINE LENDER:

 

Lehman
Commercial Paper Inc.

Michelle Rosolinsky

Vice President

745 Seventh Avenue, 16th
Floor

New York, NY  10019

Phone: (212) 526-8275

Fax: (646) 758-5015

 

with a
copy to:

 

Maritza
Ospina

Assistant Vice President

745 Seventh Avenue, 16th
Floor

New York, NY  10019

Phone: (212) 526-4332

 

2

 

	
   

  	
  SCHEDULE III TO
  CLASS A-1

  
	
   

  	
  NOTE PURCHASE
  AGREEMENT

  

 

ADDITIONAL CLOSING CONDITIONS(1)

 

The
following are the additional conditions to initial issuance and effectiveness
referred to in Section 7.01(e):

 

(a)           All
corporate proceedings and other legal matters incident to the authorization,
form and validity of each of the Transaction Documents, and all other legal
matters relating to the Transaction Documents and the transactions contemplated
thereby, shall be satisfactory in all material respects to the Lender Parties,
and the Co-Issuers, the Guarantors and the Parent Companies shall have
furnished to the Lender Parties all documents and information that the Lender
Parties or their counsel may reasonably request to enable them to pass upon
such matters.

 

(b)           The
Lender Parties shall have received evidence satisfactory to the Lender Parties
and their counsel, that on or before the Series 2007-1 Closing Date, all
existing liens (other than Permitted Liens) on the Indenture Collateral shall
have been released and UCC-1 financing statements and all assignments and other
instruments required to be filed on or prior to the Series 2007-1 Closing
Date pursuant to the Transaction Documents have been or are being filed.

 

(c)           The
Lender Parties shall have received an opinion of in-house counsel to Assured
Guaranty with respect to the Series 2007-1 Class A-1-A Notes, dated
the Series 2007-1 Closing Date and addressed to the Lender Parties, in
form and substance satisfactory to the Lender Parties and their counsel.

 

(d)           The
Lender Parties shall have received an opinion of Chapman and Cutler LLP,
counsel to the Indenture Trustee, dated the Series 2007-1 Closing Date and
addressed to the Lender Parties, in form and substance satisfactory to the
Lender Parties and their counsel.

 

(e)           The
Lender Parties shall have received an opinion of in-house counsel to the
Back-Up Manager, dated the Series 2007-1 Closing Date and addressed to the
Lender Parties, in form and substance satisfactory to the Lender Parties and
their counsel.

 

(f)            The
Lender Parties shall have received an opinion of special Vermont counsel to
Applebee’s Restaurants Vermont, Inc. (“Applebee’s Vermont”), dated
the Series 2007-1 Closing Date and addressed to the Lender Parties,
regarding the due organization of Applebee’s Vermont, the enforceability of the
Charter Documents of Applebee’s Vermont against Applebee’s Vermont, in form and
substance satisfactory to the Lender Parties and their counsel.

 

1

 

(g)           The
Lender Parties shall have received a certificate from each Co-Issuer executed
on behalf of such Co-Issuer by any two of the President, any Manager, the Chief
Executive Officer, any Vice President, the Chief Financial Officer, the
Secretary, any Assistant Secretary, the General Counsel or the Treasurer of such
Co-Issuer, provided that one such officer shall include the President, the
Chief Financial Officer or a Vice President, dated the Series 2007-1
Closing Date, to the effect that, to the best of each such officer’s knowledge (i) the
representations and warranties of such Co-Issuer in this Agreement are true and
correct on and as of the date hereof (to the extent made on and as of the date
hereof) and the Series 2007-1 Closing Date and the representations and
warranties of such Co-Issuer in any other Transaction Documents to which such
Co-Issuer is a party are true and correct on and as of the date hereof and the Series 2007-1
Closing Date; (ii) that such Co-Issuer has complied in all material
respects with all agreements and satisfied all conditions on such Co-Issuer’s
part to be performed or satisfied hereunder or under the Transaction Documents
at or prior to the Series 2007-1 Closing Date; (iii) subsequent to
the date as of which information is given in the Draft Offering Memorandum (as
defined in the Series 2007-1 Term Note Purchase Agreement), there has not
been any development in the general affairs, business, properties,
capitalization, condition (financial or otherwise) or results of operation of
such Co-Issuer except as set forth or contemplated in the Draft Offering
Memorandum or as described in such certificate or certificates that could
reasonably be expected to result in a Material Adverse Effect; and (iv) nothing
has come to such officer’s attention that would lead such officer to believe
that (A) as of the Series 2007-1 Closing Date, the Draft Offering
Memorandum did not present fairly, in all material respects, the business,
results of operations and financial condition of the Co-Issuers and the
Guarantors or (B) since the date of the Draft Offering Memorandum, any
event has occurred which should have been set forth in a supplement or
amendment to the Draft Offering Memorandum.

 

(h)           The
Lender Parties shall have received a certificate from each Parent Company
executed on behalf of such Parent Company by any two of the President, any
Manager, the Chief Executive Officer, any Vice President, the Chief Financial
Officer, the Secretary or any Assistant Secretary, the General Counsel or the
Treasurer of such Parent Company, provided that one such officer shall include
the President, the Chief Financial Officer or a Vice President, dated the Series 2007-1
Closing Date, to the effect that, to the best of each such officer’s knowledge (i) the
representations and warranties of such Parent Company in this Agreement are
true and correct on and as of the date hereof (to the extent made on and as of
the date hereof) and the Series 2007-1 Closing Date and the
representations and warranties of such Parent Company in any other Transaction
Documents to which such Parent Company is a party are true and correct on and
as of the date hereof and the Series 2007-1 Closing Date; (ii) the
representations and warranties of each Securitization Entity in any Transaction
Documents to which such Securitization Entity is a party are true and correct
on and as of the date hereof (to the extent made on and as of the date hereof)
and the Series 2007-1 Closing Date; (iii) the representations and
warranties with respect to each Applebee’s Entity and each IHOP Entity that is
neither a Securitization Entity nor a Parent Company (each a “Pre-Securitization
Entity”), in any Transaction Documents to which such Pre-Securitization
Entity is a party are true and correct on and as of the date hereof and the Series 2007-1
Closing Date; (iv) that such Parent Company has complied in all material 

 

2

 

respects with all agreements and satisfied all conditions on its part
to be performed or satisfied hereunder or under the Transaction Documents at or
prior to the Series 2007-1 Closing Date; (v) subsequent to the date
as of which information is given in the Draft Offering Memorandum, there has
not been any development in or affecting particularly the business or assets of
such Parent Company and their subsidiaries considered as a whole or in the
financial position or results of operations of such Parent Company and its
subsidiaries considered as a whole, otherwise than as set forth or contemplated
in the Draft Offering Memorandum or as described in such certificate or
certificates that could reasonably be expected to result in a Material Adverse
Effect; and (vi) nothing has come to such officer’s attention that would
lead such officer to believe that (A) as of the Series 2007-1 Closing
Date,  the Draft Offering Memorandum did not present fairly, in all
material respects, the business, results of operations and financial condition
of the Co-Issuers and the Guarantors or (B) since the date of the Draft
Offering Memorandum, any event has occurred which should have been set forth in
a supplement or amendment to the Draft Offering Memorandum so that it would
present fairly, in all material respects, the business, results of operations
and financial condition of the Co-Issuers and the Guarantors.

 

(i)            The
Lender Parties shall have received a certificate from each Securitization
Entity that is not a Co-Issuer signed by any two of the President, any Manager,
the Chief Executive Officer, any Vice President, the Chief Financial Officer,
the Secretary, any Assistant Secretary, the General Counsel or the Treasurer of
such Securitization Entity, provided that one such officer shall include the
President, the Chief Financial Officer or a Vice President, dated the Series 2007-1
Closing Date, in which each such officer shall state that, to the best of each
such officer’s knowledge (i) the representations and warranties of such
Securitization Entity in this Agreement are true and correct on and as of the Series 2007-1
Closing Date and the representations and warranties of such Securitization
Entity in any other Transaction Documents to which such Securitization Entity
is a party are true and correct on and as of the Series 2007-1 Closing
Date; (ii) that such Securitization Entity has complied in all material
respects with all agreements and satisfied all conditions on such
Securitization Entity’s part to be performed or satisfied hereunder or under
the Transaction Documents at or prior to the Series 2007-1 Closing Date
and (iii) subsequent to the date as of which information is given in the
Draft Offering Memorandum, there has not been any development in the general
affairs, business, properties, capitalization, condition (financial or
otherwise) or results of operation of such Securitization Entity except as set
forth or contemplated in the Draft Offering Memorandum or as described in such
certificate or certificates that could reasonably be expected to result in a
Material Adverse Effect.

 

(j)            The
Lender Parties shall have received a certificate from each Pre-Securitization
Entity, executed on behalf of such entity by any two of the President, any
Manager, the Chief Executive Officer, any Vice President, the Chief Financial
Officer, the Secretary, any Assistant Secretary, any Managing Director, any
Director, the General Counsel or the Treasurer of such entity, dated the Series 2007-1
Closing Date, to the effect that, to the best of each such officer’s knowledge (i) the
representations and warranties of such Pre-Securitization Entity in any
Transaction Documents to which such Pre-Securitization Entity is a party are
true and correct on and as of the Series 2007-1 

 

3

 

Closing Date; (ii) that such Pre-Securitization Entity has
complied in all material respects with all agreements and satisfied all
conditions on such Pre-Securitization Entity’s part to be performed or
satisfied hereunder or under the Transaction Documents at or prior to the Series 2007-1
Closing Date and (iii) subsequent to the date as of which information is
given in the Draft Offering Memorandum, there has not been any development in
the general affairs, business, properties, capitalization, condition (financial
or otherwise) or results of operation of such Pre-Securitization Entity except
as set forth or contemplated in the Draft Offering Memorandum or as described
in such certificate or certificates that could reasonably be expected to result
in a Material Adverse Effect.

 

(k)           The
Co-Issuers shall have delivered the $350,000,000 of Series 2007-1 Class A-2-I-X
Notes, $675,000,000 of Series 2007-1 Class A-2-II-A Notes, the
$650,000,000 of Series 2007-1 Class A-2-II-X and $119,000,000 of Series 2007-1
Class M-1 Notes to the Initial Purchaser on the Series 2007-1 Closing
Date.

 

All opinions, letters, evidence and certificates mentioned
above or elsewhere in this Agreement shall be deemed to be in compliance with
the provisions hereof only if they are in form and substance reasonably
satisfactory to counsel for the Class A-1 Administrative Agent.

 

4

 

	
   

  	
  EXHIBIT
  A TO CLASS A-1

  
	
   

  	
  NOTE
  PURCHASE AGREEMENT

  

 

ADVANCE REQUEST

 

APPLEBEE’S ENTERPRISES LLC, 

APPLEBEE’S IP LLC, and

the

“RESTAURANT HOLDERS”

 

SERIES 2007-1 VARIABLE FUNDING SENIOR NOTES, CLASS A-1

 

TO:

 

LEHMAN
COMMERCIAL PAPER INC., as Class A-1 Administrative Agent

747 Seventh Avenue

New York, NY  10019

Attention:  Michelle Rosolinsky

 

Ladies
and Gentlemen:

 

This Advance Request is
delivered to you pursuant to Section 2.03 of that certain Series 2007-1
Class A-1 Note Purchase Agreement, dated as of November 29, 2007 (as
amended, supplemented, restated or otherwise modified from time to time, the “Series 2007-1
Class A-1 Note Purchase Agreement”) among Applebee’s Enterprises LLC,
the other Co-Issuers named therein, Applebee’s Services, Inc., as
Servicer, the Conduit Investors, Committed Note Purchasers and Funding Agents
named therein, the L/C Provider named therein, Lehman Commercial Paper Inc., as
Swingline Lender (in such capacity, the “Swingline Lender”) and Lehman
Commercial Paper Inc., as Class A-1 Administrative Agent (in such
capacity, the “Class A-1 Administrative Agent”).

 

Unless otherwise defined herein or as the context
otherwise requires, terms used herein have the meaning assigned thereto under
or as provided in the Recitals and Section 1.01 of the Series 2007-1
Class A-1 Note Purchase Agreement.

 

The undersigned hereby
requests that Advances be made in the aggregate principal amount of $                    
on                     ,
20       , which such principal amount shall
be allocated ratably among the Series 2007-1 Class A-1-A Advance
Notes and the Series 2007-1 Class A-1-X Advance Notes according to
their respective portions of the Series 2007-1 Class A-1 Maximum
Principal Amount.

 

[IF CO-ISSUERS ARE ELECTING EURODOLLAR RATE FOR THESE
ADVANCES ON THE DATE MADE IN ACCORDANCE WITH SECTION 3.01(b) OF THE CLASS A-1
NOTE PURCHASE AGREEMENT, ADD THE FOLLOWING SENTENCE:  The undersigned hereby elects that the
Advances that are not funded at the CP Rate by a Conduit Investor shall be
Eurodollar Advances and the related Eurodollar Interest Period shall commence
on the date of such Eurodollar Advances and end on but excluding the second
Business Day before the next Accounting Date.]

 

A-1

 

The undersigned hereby acknowledges that the delivery
of this Advance Request and the acceptance by the undersigned of the proceeds
of the Advances requested hereby constitute a representation and warranty by
the undersigned that, on the date of such Advances, and before and after giving
effect thereto and to the application of the proceeds therefrom, all conditions
set forth in Section 7.03 of the Series 2007-1  Class A-1
Note Purchase Agreement have been satisfied and all statements set forth in Section 6.01
of the Series 2007-1 Class A-1 Note Purchase Agreement are true and
correct.

 

The undersigned agrees that if prior to the time of
the Advances requested hereby any matter certified to herein by it will not be
true and correct at such time as if then made, it will immediately so notify
both you and each Investor.  Except to
the extent, if any, that prior to the time of the Advances requested hereby you
and each Investor shall receive written notice to the contrary from the
undersigned, each matter certified to herein shall be deemed once again to be
certified as true and correct at the date of such Advances as if then made.

 

Please wire transfer the
proceeds of the Advances, first, $[              ]
to the Swingline Lender and $[               ]
to the L/C Provider for application to repayment of outstanding Swingline Loans
and Unreimbursed L/C Drawings, as applicable, and, second, pursuant to
the following instructions:

 

[insert any other payment instructions]

 

The undersigned has caused this Advance Request to be
executed and delivered, and the certification and warranties contained herein
to be made, by its duly Authorized Officer this           
day of           , 20     .

 

	
   

  	
  APPLEBEE’S ENTERPRISES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S IP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-2

 

	
   

  	
  APPLEBEE’S RESTAURANTS NORTH

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS WEST

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  TEXAS

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS INC., as

         Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  KANSAS

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  MID-

         ATLANTIC LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-3

 

	
   

  	
  APPLEBEE’S RESTAURANTS

         VERMONT, INC., as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-4

 

	
   

  	
  EXHIBIT
  A-1 TO CLASS A-1

  
	
   

  	
  NOTE
  PURCHASE AGREEMENT

  

 

SWINGLINE LOAN REQUEST

 

APPLEBEE’S ENTERPRISES LLC, 

APPLEBEE’S IP LLC, and

the “RESTAURANT HOLDERS”

 

SERIES 2007-1 VARIABLE FUNDING SENIOR NOTES, CLASS A-1

 

TO:

 

LEHMAN
COMMERCIAL PAPER INC., as Swingline Lender

747 Seventh Avenue

New York, NY 10019

Attention:  Michelle Rosolinsky

 

Ladies
and Gentlemen:

 

This Swingline Loan Request is delivered to you
pursuant to Section 2.06 of that certain Series 2007-1 Class A-1
Note Purchase Agreement, dated as of November 29, 2007 (as amended,
supplemented, restated or otherwise modified from time to time, the “Series 2007-1
Class A-1 Note Purchase Agreement”) among Applebee’s Enterprises LLC,
the other Co-Issuers named therein, Applebee’s Services, Inc., as
Servicer, the Conduit Investors, Committed Note Purchasers and Funding Agents
named therein, the L/C Provider named therein, Lehman Commercial Paper Inc., as
Swingline Lender (in such capacity, the “Swingline Lender”) and Lehman
Commercial Paper Inc., as Class A-1 Administrative Agent (in such
capacity, the “Class A-1 Administrative Agent”).

 

Unless otherwise defined herein or as the context
otherwise requires, terms used herein have the meaning assigned thereto under
or as provided in the Recitals and Section 1.01 of the Series 2007-1
Class A-1 Note Purchase Agreement.

 

The undersigned hereby requests that Swingline Loans
be made in the aggregate principal amount of $               
on                ,
20      which principal amount shall be allocated
ratably between the Series 2007-1 Class A-1-A Swingline Note and the Series 2007-1
Class A-1-X Swingline Note according to their respective Applicable Sub-Class Percentages.

 

The undersigned hereby acknowledges that the delivery
of this Swingline Loan Request and the acceptance by the undersigned of the
proceeds of the Swingline Loans requested hereby constitute a representation
and warranty by the undersigned that, on the date of such Swingline Loans, and
before and after giving effect thereto and to the application of the proceeds
therefrom, all conditions set forth in Section 7.03 of the Series 2007-1
Class A-1 Note Purchase Agreement have been satisfied and all statements
set forth in Section 6.01 of the Series 2007-1 Class A-1
Note Purchase Agreement are true and correct.

 

A-1-1

 

The undersigned agrees that if prior to the time of
the Swingline Loans requested hereby any matter certified to herein by it will
not be true and correct at such time as if then made, it will immediately so
notify you.  Except to the extent, if
any, that prior to the time of the Swingline Loans requested hereby you shall
receive written notice to the contrary from the undersigned, each matter
certified to herein shall be deemed once again to be certified as true and
correct at the date of such Swingline Loans as if then made.

 

Please wire transfer the proceeds of the Swingline
Loans pursuant to the following instructions:

 

[insert payment instructions]

 

The undersigned has caused this Swingline Loan Request
to be executed and delivered, and the certification and warranties contained
herein to be made, by its duly Authorized Officer this       
day of           , 20      .

 

	
   

  	
  APPLEBEE’S ENTERPRISES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S IP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS NORTH

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS WEST

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-1-2

 

	
   

  	
  APPLEBEE’S RESTAURANTS
  TEXAS

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS INC., as

         Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  KANSAS

         LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  MID-

         ATLANTIC LLC, as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS

         VERMONT, INC., as Co-Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

A-1-3

 

	
   

  	
  EXHIBIT A-2 TO CLASS A-1

  
	
   

  	
  NOTE PURCHASE AGREEMENT

  

 

VOLUNTARY DECREASE REQUEST

 

APPLEBEE’S ENTERPRISES LLC, 

APPLEBEE’S IP LLC, and

the “RESTAURANT HOLDERS”

 

SERIES 2007-1 VARIABLE FUNDING SENIOR NOTES, CLASS A-1

 

TO:  Addresses on Schedule I
Hereto

 

Ladies
and Gentlemen:

 

This Voluntary Decrease Request is delivered to you
pursuant to Section 3.2(b) of that certain Series 2007-1
Supplement, dated as of November 29, 2007 (as amended, supplemented,
restated or otherwise modified from time to time, the “Series 2007-1
Supplement”) among Applebee’s Enterprises LLC, the other Co-Issuers named
therein, and Wells Fargo Bank, National Association, as Indenture Trustee and Series 2007-1
Securities Intermediary (in such capacity, the “Indenture Trustee”).  All capitalized terms used herein shall have
the meanings described in Article I of the Series 2007-1 Supplement.

 

Pursuant to Section 3.2(b) of the Series 2007-1
Supplement, the undersigned hereby requests that a Voluntary Decrease of the Series 2007-1
Class A-1 Outstanding Principal Amount be made in the aggregate amount of
$                 
on                ,
20     .

 

In compliance therewith, the priority of payment for
this Voluntary Decrease should be as follows:

 

Outstanding Swingline Loans as of                        ,
20     :  $               

 

Unreimbursed L/C Drawings as of                        ,
20     :  $               

 

Net amount due to Class A-1 Noteholders (below)
on                        ,
20     :

 

[                                  :  $               ]

 

The undersigned has caused this Voluntary Decrease
Request to be executed and delivered by its duly Authorized Officer this          
day of             ,
20     .

 

	
   

  	
  APPLEBEE’S ENTERPRISES
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2-1

 

	
   

  	
  APPLEBEE’S IP LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS NORTH 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS WEST 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS TEXAS 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS INC., as 

  Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  KANSAS 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2-2

 

	
   

  	
  APPLEBEE’S RESTAURANTS
  MID-

  ATLANTIC LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS 

  VERMONT, INC., as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2-3

 

	
  INDENTURE
  TRUSTEE:

  
	
   

  
	
   

  	
  Wells Fargo Bank, National Association

  
	
   

  	
  6th & Marquette MAC [N9311-161]

  
	
   

  	
  Minneapolis, MN 55479

  
	
   

  	
  Attention:

  	
  Corporate Trust Services / Asset Backed 

  
	
   

  	
   

  	
  Administration

  
	
   

  	
  Facsimile:

  	
  (612) 667-3464

  
	
   

  	
   

  
	
  CLASS A-1
  ADMINISTRATIVE AGENT:

  
	
   

  
	
   

  	
  Lehman
  Commercial Paper Inc.

  
	
   

  	
  Michelle
  Rosolinsky

  
	
   

  	
  Vice President

  
	
   

  	
  745 Seventh
  Avenue, 16th
  Floor

  
	
   

  	
  New York, NY
  10019

  
	
   

  	
  Phone: (212)
  526-8275

  
	
   

  	
  Fax: (646)
  758-5015

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Maritza Ospina

  
	
   

  	
  Assistant Vice
  President

  
	
   

  	
  745 Seventh
  Avenue, 16th
  Floor

  
	
   

  	
  New York, NY
  10019

  
	
   

  	
  Phone: (212)
  526-4332

  
	
   

  
	
  COMMITTED
  NOTE PURCHASERS:

  
	
   

  
	
   

  	
  Lehman Brothers Bank, FSB

  
	
   

  	
  745 Seventh Avenue, 13th Floor

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Attention: Errington Hibbert, Managing

  
	
   

  	
  Phone: (212) 526-5856

  
	
   

  	
  Fax: [•]

  

 

A-2-4

 

[OTHER SERIES 2007-1 CLASS A-1 INVESTORS, IF
ANY]

 

	
  CLASS A
  INSURER:

  
	
   

  
	
  Assured Guaranty Corp.

  
	
  1325 Avenue of the Americas

  
	
  New York, NY 10019

  
	
  Attention:     Risk Management
  Dept.

  
	
  Re: Applebee’s Series 2007-1 Notes

  
	
  Policy No. D-2007-151

  
	
  Facsimile:     (212) 581-3268

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Sidley Austin LLP

  
	
  One South Dearborn
  Street

  
	
  Chicago, Illinois 60603

  
	
  Attention:
      Kevin Hochberg

  
	
  Facsimile:    (312) 853-7036

  

 

A-2-5

 

EXHIBIT B

TO CLASS A-1 NOTE PURCHASE AGREEMENT

 

ASSIGNMENT AND ASSUMPTION AGREEMENT,
dated as of [          ],
among [          ] (the “Transferor”),
each purchaser listed as an Acquiring Committed Note Purchaser on the signature
pages hereof (each, an “Acquiring Committed Note Purchaser”), the
Funding Agent with respect to such Acquiring Committed Note Purchaser listed on
the signature pages hereof (each, a “Funding Agent”), and, if
applicable, the Co-Issuers, Swingline Lender and L/C Provider listed on the
signature pages hereof.

 

W I T N E S S E T H:

 

WHEREAS, this Assignment and Assumption Agreement is
being executed and delivered in accordance with Section 9.17(a) of
the Series 2007-1 Class A-1 Note Purchase Agreement, dated as of November 29,
2007 (as from time to time amended, supplemented or otherwise modified in
accordance with the terms thereof, the “Series 2007-1 Class A-1
Note Purchase Agreement”; terms defined therein being used herein as
therein defined), among the Co-Issuers, the Conduit Investors, Committed Note
Purchasers and Funding Agents named therein, the L/C Provider and Swingline
Lender named therein, Applebee’s Services, Inc., as Servicer, and Lehman
Commercial Paper Inc., as Class A-1 Administrative Agent (in such
capacity, the “Class A-1 Administrative Agent”);

 

WHEREAS, each Acquiring Committed Note Purchaser (if it is not already an existing Committed Note Purchaser) wishes to
become a Committed Note Purchaser party to the Series 2007-1 Class A-1
Note Purchase Agreement; and

 

WHEREAS, the Transferor is selling and assigning to each Acquiring
Committed Note Purchaser, [all] [a portion of] its rights, obligations and
commitments under the Series 2007-1 Class A-1 Note Purchase
Agreement, the Series 2007-1 Class A-1 Advance Notes of the Advance
Sub-Class identified on Schedule I attached hereto, and each other
Transaction Document to which it is a party with respect to the percentage of
its Commitment Amount specified on such Schedule I.

 

NOW, THEREFORE, the parties hereto hereby agree as
follows:

 

Upon the execution and delivery of this Assignment and
Assumption Agreement by each Acquiring Committed Note Purchaser, each related
Funding Agent and the Transferor and, to the extent required by Section 9.17(a) of
the Series 2007-1 Class A-1 Note Purchase Agreement, the Co-Issuers,
the Swingline Lender and the L/C Provider (the date of such execution and
delivery, the “Transfer Issuance Date”), each Acquiring Committed Note
Purchaser shall be a Committed Note Purchaser party to the Series 2007-1 Class A-1
Note Purchase Agreement for all purposes thereof.

 

The Transferor acknowledges receipt from each
Acquiring Committed Note Purchaser of an amount equal to the purchase price, as
agreed between the Transferor and such Acquiring Committed Note Purchaser (the “Purchase
Price”), of the

 

B-1

 

portion being purchased by such Acquiring Committed
Note Purchaser (such Acquiring Committed Note Purchaser’s “Purchased
Percentage”) of (i) the Transferor’s Commitment under the Series 2007-1
Class A-1 Note Purchase Agreement and (ii) the Transferor’s Committed
Note Purchaser Percentage of the related Investor Group Principal Amount.  The Transferor hereby irrevocably sells,
assigns and transfers to each Acquiring Committed Note Purchaser, without
recourse, representation or warranty, and each Acquiring Committed Note
Purchaser hereby irrevocably purchases, takes and assumes from the Transferor,
such Acquiring Committed Note Purchaser’s Purchased Percentage of (x) the
Transferor’s Commitment under the Series 2007-1 Class A-1 Note
Purchase Agreement and (y) the Transferor’s Committed Note Purchaser
Percentage of the related Investor Group Principal Amount.

 

The Transferor has made arrangements with each
Acquiring Committed Note Purchaser with respect to [(i)] the portion, if
any, to be paid, and the date or dates for payment, by the Transferor to such
Acquiring Committed Note Purchaser of any program fees, undrawn facility fee,
structuring and commitment fees or other fees (collectively, the “Fees”)
[heretofore received] by the Transferor pursuant to Section 3.02 of
the Series 2007-1 Class A-1 Note Purchase Agreement prior to the
Transfer Issuance Date [and (ii) the portion, if any, to be paid, and the
date or dates for payment, by such Acquiring Committed Note Purchaser to the
Transferor of Fees or [                   ]
received by such Acquiring Committed Note Purchaser pursuant to the Series 2007-1
Supplement from and after the Transfer Issuance Date].

 

From and after the Transfer Issuance Date, amounts
that would otherwise be payable to or for the account of the Transferor
pursuant to the Series 2007-1 Supplement or the Series 2007-1 Class A-1
Note Purchase Agreement shall, instead, be payable to or for the account of the
Transferor and the Acquiring Committed Note Purchasers, as the case may be, in
accordance with their respective interests as reflected in this Assignment and
Assumption Agreement, whether such amounts have accrued prior to the Transfer
Issuance Date or accrue subsequent to the Transfer Issuance Date.

 

Each of the parties to this Assignment and Assumption
Agreement agrees that at any time and from time to time upon the written
request of any other party, it will execute and deliver such further documents
and do such further acts and things as such other party may reasonably request
in order to effect the purposes of this Assignment and Assumption Agreement.

 

By executing and delivering this Assignment and
Assumption Agreement, the Transferor and each Acquiring Committed Note
Purchaser confirm to and agree with each other and the other parties to the Series 2007-1
Class A-1 Note Purchase Agreement as follows:  (i) other than the representation and
warranty that it is the legal and beneficial owner of the interest being
assigned hereby free and clear of any adverse claim, the Transferor makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Series 2007-1
Supplement, the Series 2007-1 Class A-1 Note Purchase Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the 

 

B-2

 

Indenture, the Series 2007-1 Class A-1
Notes, the Transaction Documents or any instrument or document furnished
pursuant thereto; (ii) the Transferor makes no representation or warranty
and assumes no responsibility with respect to the financial condition of the Co-Issuers
or the performance or observance by the Co-Issuers of any of the Co-Issuer’s
obligations under the Indenture, the Series 2007-1 Class A-1 Note
Purchase Agreement, the Transaction Documents or any other instrument or
document furnished pursuant hereto; (iii) each Acquiring Committed Note
Purchaser confirms that it has received a copy of the Indenture, the Series 2007-1
Class A-1 Note Purchase Agreement and such other Transaction Documents and
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption
Agreement; (iv) each Acquiring Committed Note Purchaser will,
independently and without reliance upon the Class A-1 Administrative
Agent, the Transferor, the Funding Agent or any other Investor Group and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Series 2007-1 Class A-1 Note Purchase Agreement; (v) each
Acquiring Committed Note Purchaser appoints and authorizes the Class A-1
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Series 2007-1 Class A-1 Note Purchase Agreement
as are delegated to the Class A-1 Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto, all in
accordance with Article V of the Series 2007-1 Class A-1
Note Purchase Agreement; (vi) each Acquiring Committed Note Purchaser
appoints and authorizes the related Funding Agent to take such action as agent
on its behalf and to exercise such powers under the Series 2007-1 Class A-1
Note Purchase Agreement as are delegated to such Funding Agent by the terms
thereof, together with such powers as are reasonably incidental thereto, all in
accordance with Article V of the Series 2007-1 Class A-1
Note Purchase Agreement; (vii) each Acquiring Committed Note Purchaser
agrees that it will perform in accordance with their terms all of the obligations
which by the terms of the Series 2007-1 Class A-1 Note Purchase
Agreement are required to be performed by it as an Acquiring Committed Note
Purchaser; and (viii) the Acquiring Committed Note Purchaser hereby
represents and warrants to the Co-Issuers and the Servicer that the
representations and warranties contained in Section 6.03 of the Series 2007-1
Class A-1 Note Purchase Agreement are true and correct with respect to the
Acquiring Committed Note Purchaser on and as of the date hereof and the Acquiring
Committed Note Purchaser shall be deemed to have made such representations and
warranties contained in Section 6.03 of the Series 2007-1 Class A-1
Note Purchase Agreement on and as of the date hereof.

 

Schedule I hereto sets forth (i) the
Advance Sub-Class and the Purchased Percentage for each Acquiring
Committed Note Purchaser, (ii) the revised Commitment Amounts of the
Transferor and each Acquiring Committed Note Purchaser, and (iii) the
revised Maximum Investor Group Principal Amounts for the Investor Groups of the
Transferor and each Acquiring Committed Note Purchaser (it being understood
that if the Transferor was part of an Investor Group and the Acquiring
Committed Note Purchaser is intended to be part of the same Investor Group,
there will not be any change to the Maximum Investor Group Principal Amount for
that Investor Group) and 

 

B-3

 

(iv) administrative information with respect to
each Acquiring Committed Note Purchaser and its Funding Agent.

 

This Assignment and Assumption Agreement and all
matters arising under or in any manner relating to this Assignment and
Assumption Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York, and the obligations, rights and
remedies of the parties hereto shall be determined in accordance with such law.

 

B-4

 

IN WITNESS WHEREOF, the parties hereto have caused
this Assignment and Assumption Agreement to be executed by their respective
duly authorized officers as of the date first set forth above.

 

	
   

  	
  [·], as Transferor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [·], as Acquiring
  Committed Note Purchaser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [·], as Funding
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-5

 

	
   

  	
  [CONSENTED AND ACKNOWLEDGED 

  BY THE CO-ISSUERS:](2)

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S ENTERPRISES
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S IP LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS NORTH 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS WEST 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS TEXAS 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(2)   Note: Only
if required by Section 9.17.

 

B-6

 

	
   

  	
  APPLEBEE’S RESTAURANTS INC., as 

  Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  KANSAS 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  MID-

  ATLANTIC LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS 

  VERMONT, INC., as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

B-7

 

	
   

  	
  [CONSENTED BY:](3)

  
	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC., 

  as Swingline Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [·], as L/C
  Provider

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(3)   Note: Only
if required by Section 9.17.

 

B-8

 

	
   

  	
  SCHEDULE I TO ASSIGNMENT

  
	
   

  	
  AND ASSUMPTION AGREEMENT

  

 

LIST OF ADDRESSES FOR NOTICES

AND OF COMMITMENT AMOUNTS

 

[                                         ],
as

Transferor

 

Advance Sub-Class:   [          ]

 

Prior Commitment Amount:   $[          ]

 

Revised Commitment Amount:         $[          ]

 

Prior Maximum Investor Group

Principal
Amount:                   $[          ]

 

Revised Maximum Investor 

Group Principal Amount:        $[          ]

 

Related Conduit Investor 

(if applicable)                            [          ]

 

[                                                                      ],
as

Acquiring Committed Note Purchaser

 

Address:

 

Attention:

 

Telephone:            

Facsimile:               

 

Purchased Percentage of 

Transferor’s Commitment:       [          ]%

 

Prior Commitment Amount:     $[          ]

 

Revised Commitment Amount:           $[          ]

 

Prior Maximum Investor Group 

Principal
Amount:                      $[          ]

 

B-9

 

Revised
Maximum Investor 

Group Principal Amount:      $[          ]

 

Related Conduit Investor 

(if applicable)                          [          ]

 

[                                                                      ],
as

related Funding Agent

 

Address:

 

Attention:

 

Telephone:            

Facsimile:

 

B-10

 

	
   

  	
  EXHIBIT C TO CLASS A-1

  
	
   

  	
  NOTE PURCHASE AGREEMENT

  

 

INVESTOR GROUP SUPPLEMENT, dated
as of [         ], among (i) [           ]
(the “Transferor Investor Group”), (ii) [           ]
(the “Acquiring Investor Group”), (iii) the Funding Agent with
respect to the Acquiring Investor Group listed on the signature pages hereof
(each, a “Funding Agent”), and (iv), if applicable, the Co-Issuers, the
Swingline Lender and the L/C Provider listed on the signature pages hereof.

 

W I T N E S S E T H:

 

WHEREAS, this Investor Group Supplement is being
executed and delivered in accordance with Section 9.17(d) of
the Series 2007-1 Class A-1 Note Purchase Agreement, dated as of [November 29,
2007] (as from time to time amended, supplemented or otherwise modified in
accordance with the terms thereof, the “Series 2007-1 Class A-1
Note Purchase Agreement”; terms defined therein being used herein as
therein defined), among the Co-Issuers, the Conduit Investors, Committed Note
Purchasers and Funding Agents named therein, the L/C Provider and Swingline
Lender named therein, Applebee’s Services, Inc., as Servicer, and Lehman
Commercial Paper Inc., as Class A-1 Administrative Agent (in such
capacity, the “Class A-1 Administrative Agent”);

 

WHEREAS, the Acquiring Investor Group wishes to become
a Conduit Investor and [a] Committed Note Purchaser[s] with respect to such
Conduit Investor under the Series 2007-1 Class A-1 Note Purchase
Agreement; and

 

WHEREAS, the Transferor Investor Group is selling and assigning to the Acquiring
Investor Group [all] [a portion of] its respective rights, obligations and
commitments under the Series 2007-1 Class A-1 Note Purchase
Agreement, the Series 2007-1 Class A-1 Advance Notes of the Advance
Sub-Class identified on Schedule I attached hereto and each
other Transaction Document to which it is a party with respect to the
percentage of its Commitment Amount specified on Schedule I
attached hereto;

 

NOW, THEREFORE, the parties hereto hereby agree as
follows:

 

Upon the execution and delivery of this Investor Group
Supplement by the Acquiring Investor Group, each related Funding Agent with
respect thereto and the Transferor Investor Group and, to the extent required
by Section 9.17(d) of the Series 2007-1 Class A-1
Note Purchase Agreement, the Co-Issuers, the Swingline Lender and the L/C
Provider (the date of such execution and delivery, the “Transfer Issuance
Date”), the Conduit Investor and the Committed Note Purchaser[s] with
respect to the Acquiring Investor Group shall be parties to the Series 2007-1
Class A-1 Note Purchase Agreement for all purposes thereof.

 

The Transferor Investor Group acknowledges receipt
from the Acquiring Investor Group of an amount equal to the purchase price, as
agreed between the Transferor Investor Group and the Acquiring Investor Group
(the “Purchase Price”), of 

 

C-1

 

the portion being purchased by the Acquiring Investor
Group (the Acquiring Investor Group’s “Purchased Percentage”) of (i) the
aggregate Commitment[s] of the Committed Note Purchaser[s] included in the
Transferor Investor Group under the Series 2007-1 Class A-1 Note
Purchase Agreement and (ii) the aggregate related Committed Note Purchaser
Percentage[s] of the related Investor Group Principal Amount.  The Transferor Investor Group hereby
irrevocably sells, assigns and transfers to the Acquiring Investor Group,
without recourse, representation or warranty, and the Acquiring Investor Group
hereby irrevocably purchases, takes and assumes from the Transferor Investor
Group, such Acquiring Investor Group’s Purchased Percentage of (x) the
aggregate Commitment[s] of the Committed Note Purchaser[s] included in the
Transferor Investor Group under the Series 2007-1 Class A-1 Note
Purchase Agreement and (y) the aggregate related Committed Note Purchaser
Percentage[s] of the related Investor Group Principal Amount.

 

The Transferor Investor Group has made arrangements
with the Acquiring Investor Group with respect to [(i)] the portion, if
any, to be paid, and the date or dates for payment, by the Transferor Investor
Group to such Acquiring Investor Group of any program fees, undrawn facility
fee, structuring and commitment fees or other fees (collectively, the “Fees”)
[heretofore received] by the Transferor Investor Group pursuant to Section 3.02
of the Series 2007-1 Class A-1 Note Purchase Agreement prior to the
Transfer Issuance Date [and (ii) the portion, if any, to be paid, and the
date or dates for payment, by such Acquiring Investor Group to the Transferor
Investor Group of Fees or
[              ]
received by such Acquiring Investor Group pursuant to the Series 2007-1
Supplement from and after the Transfer Issuance Date].

 

From and after the Transfer Issuance Date, amounts
that would otherwise be payable to or for the account of the Transferor
Investor Group pursuant to the Series 2007-1 Supplement or the Series 2007-1
Class A-1 Note Purchase Agreement shall, instead, be payable to or for the
account of the Transferor Investor Group and the Acquiring Investor Group, as
the case may be, in accordance with their respective interests as reflected in
this Investor Group Supplement, whether such amounts have accrued prior to the
Transfer Issuance Date or accrue subsequent to the Transfer Issuance Date.

 

Each of the parties to this Investor Group Supplement
agrees that at any time and from time to time upon the written request of any
other party, it will execute and deliver such further documents and do such
further acts and things as such other party may reasonably request in order to
affect the purposes of this Investor Group Supplement.

 

By executing and delivering this Investor Group
Supplement, the Transferor Investor Group and the Acquiring Investor Group
confirm to and agree with each other and the other parties to the Series 2007-1
Class A-1 Note Purchase Agreement as follows:  (i) other than the representation and
warranty that it is the legal and beneficial owner of the interest being
assigned hereby free and clear of any adverse 

 

C-2

 

claim, the Transferor Investor Group makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Series 2007-1
Supplement, the Series 2007-1 Class A-1 Note Purchase Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Indenture, the Series 2007-1 Class A-1 Notes, the
Transaction Documents or any instrument or document furnished pursuant thereto;
(ii) the Transferor Investor Group makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the
Co-Issuers or the performance or observance by the Co-Issuers of any of the
Co-Issuers’ obligations under the Indenture, the Series 2007-1 Class A-1
Note Purchase Agreement, the Transaction Documents or any other instrument or
document furnished pursuant hereto; (iii) the Acquiring Investor Group
confirms that it has received a copy of the Indenture, the Series 2007-1 Class A-1
Note Purchase Agreement and such other Transaction Documents and other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Investor Group Supplement; (iv) the
Acquiring Investor Group will, independently and without reliance upon the Class A-1
Administrative Agent, the Transferor Investor Group, the Funding Agents or any
other Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Series 2007-1 Class A-1 Note Purchase
Agreement; (v) the Acquiring Investor Group appoints and authorizes the Class A-1
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Series 2007-1 Class A-1 Note Purchase Agreement
as are delegated to the Class A-1 Administrative Agent by the terms
thereof, together with such powers as are reasonably incidental thereto, all in
accordance with Article V of the Series 2007-1 Class A-1
Note Purchase Agreement; (vi) each member of the Acquiring Investor Group
appoints and authorizes the related Funding Agent, listed on Schedule I
hereto, to take such action as agent on its behalf and to exercise such powers
under the Series 2007-1 Class A-1 Note Purchase Agreement as are
delegated to such Funding Agent by the terms thereof, together with such powers
as are reasonably incidental thereto, all in accordance with Article V
of the Series 2007-1 Class A-1 Note Purchase Agreement; (vii) each
member of the Acquiring Investor Group agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the Series 2007-1
Class A-1 Note Purchase Agreement are required to be performed by it as a
member of the Acquiring Investor Group; and (viii) each member of the
Acquiring Investor Group hereby represents and warrants to the Co-Issuers and
the Servicer that the representations and warranties contained in Section 6.03
of the Series 2007-1 Class A-1 Note Purchase Agreement are true and
correct with respect to the Acquiring Investor Group on and as of the date
hereof and the Acquiring Investor Group shall be deemed to have made such
representations and warranties contained in Section 6.03 of the Series 2007-1
Class A-1 Note Purchase Agreement on and as of the date hereof.

 

Schedule I hereto sets forth (i) the
Advance Sub-Class and the Purchased Percentage for the Acquiring Investor
Group, (ii) the revised Commitment Amounts of the Transferor Investor
Group and the Acquiring Investor Group, and (iii) the revised Maximum
Investor Group Principal Amounts for the Transferor Investor Group and the 

 

C-3

 

Acquiring Investor Group and (iv) administrative
information with respect to the Acquiring Investor Group and its Funding Agent.

 

This Investor Group Supplement and all matters arising
under or in any manner relating to this Investor Group Supplement shall be
governed by, and construed in accordance with, the laws of the State of
New York, and the obligations, rights and remedies of the parties hereto
shall be determined in accordance with such law.

 

C-4

 

IN WITNESS WHEREOF, the parties hereto have caused
this Investor Group Supplement to be executed by their respective duly
authorized officers as of the date first set forth above.

 

	
   

  	
  [·], as Transferor
  Investor Group

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [·], as Acquiring
  Investor Group

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [·], as Funding
  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

C-5

 

	
   

  	
  [CONSENTED AND ACKNOWLEDGED 

  BY THE CO-ISSUERS:](4)

  
	
   

  	
   

  
	
   

  	
  APPLEBEE’S ENTERPRISES
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S IP LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS NORTH 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS WEST 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS TEXAS 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(4)   Note:  Only if required by Section 9.17.

 

C-6

 

	
   

  	
  APPLEBEE’S RESTAURANTS INC., as 

  Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  KANSAS 

  LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS
  MID-

  ATLANTIC LLC, as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  APPLEBEE’S RESTAURANTS 

  VERMONT, INC., as Co-Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [CONSENTED BY:](5)

  
	
   

  	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  as Swingline Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

(5)   Note:  Only if required by Section 9.17.

 

 

C-7

 

	
   

  	
  [·], as L/C Provider

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-8

 

	
   

  	
  SCHEDULE I TO

  
	
   

  	
  INVESTOR GROUP SUPPLEMENT

  

 

LIST OF
ADDRESSES FOR NOTICES

AND OF
COMMITMENT AMOUNTS

 

[                                        ],
as

Transferor Investor Group

 

Advance Sub-Class:    [          ]

 

Prior Commitment Amount:    $[          ]

 

Revised Commitment Amount:          $[          ]

 

Prior Maximum Investor Group

Principal
Amount:                    $[          ]

 

Revised Maximum Investor 

Group Principal Amount:         $[          ]

 

[                                                        ],
as

Acquiring Investor Group

 

Address:

 

Attention:

 

Telephone:

Facsimile:

 

Purchased Percentage of 

Transferor Investor Group’s Commitment:   [          ]%

 

Prior Commitment
Amount:    $[          ]

 

Revised Commitment Amount:           $[          ]

 

Prior Maximum Investor Group 

Principal
Amount:                    $[          ]

 

S-1

 

Revised Maximum Investor 

Group Principal Amount:      $[          ]

 

[                                                        ],
as

related Funding Agent

 

Address:

Attention:

 

Telephone:            

Facsimile:

 

 

S-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]