Document:

ex10-3_termination.htm

NOTICE OF DIRECTION AND TERMINATION

December 1, 2010

Bank of America, N.A., as Collateral Agent

Agency Management

231 South LaSalle Street

Mail Code: IL1-231-10-41

Chicago, Illinois 606004

 

We reference that certain Intercreditor Agreement dated as of May 21, 2008 (the “Intercreditor Agreement”) among Bank of America, N.A., in its capacity as Collateral Agent, Bank of America, N.A., in its capacity as administrative agent under the Revolving Credit Facility Agreement on behalf of itself and each of the Revolving Credit Facility Secured Creditors, Bank of America, N.A., in its capacity as servicer under the Franchise Loan Facility Agreement on behalf of itself and each of the Franchise Loan Facility Secured Creditors, each of the institutional investors listed on Schedule 1 attached thereto,  Ruby Tuesday, Inc., a Georgia corporation, as Company and certain affiliates of the Company as Guarantors.  All defined terms used herein shall have the meanings ascribed to such terms in the Intercreditor Agreement unless otherwise defined herein.

 

The Company represents to the Collateral Agent that the signatories party hereto collectively constitute the Requisite Creditors necessary under Section 5.3, Section 5.5 and Section 7.3 of the Intercreditor Agreement to (i) authorize and direct the Collateral Agent to terminate the security interests of the Collateral Agent held for the benefit of the Creditors and (ii) terminate the Intercreditor Agreement.  Pursuant to the authority granted the Requisite Creditors under the Intercreditor Agreement including, without limitation, the above-referenced provisions, the undersigned hereby direct the Collateral Agent that upon receipt of this Notice of Direction and Termination:

 

(a)           Collateral Agent shall acknowledge by execution of this Notice of Direction and Termination that all liens, security interests, mortgages and other encumbrances, all of any kind, nature or description, whenever and however arising, in favor of Collateral Agent in connection with the Security Documents and the Senior Secured Obligations on any of the assets and property, real or personal, tangible or intangible, of the Company or the Guarantors are thereby terminated;

(b)           Collateral Agent shall acknowledge by execution of this Notice of Direction and Termination that each of the Security Documents is thereby terminated other than those provisions which expressly survive termination thereof;

(c)           Collateral Agent shall, at the cost of the Company, thereupon file, or authorize Company to file, such UCC terminations, releases or other documents necessary to terminate of record any and all financing statements naming Company or any Guarantor, as Debtor, and Collateral Agent, as Secured Party, that have been filed for the purpose of perfecting liens securing the Senior Secured Obligations;

(d)           Collateral Agent shall, at the cost of the Company, promptly deliver to Company any possessory collateral that have been held by it for the purpose of perfecting liens securing the Senior Secured Obligations;

 

CHAR2\1284155v3

  

  

  

 

(e)           Collateral Agent shall, at the cost of the Company, promptly execute and deliver or cause to be executed and delivered such documents and agreements and take or cause to be taken such action, in each instance, as Company shall reasonably request to effectuate the agreements and purposes of this Notice of Direction and Termination; and

(f)           Collateral Agent shall, upon satisfaction of the foregoing directives, be released and discharged from its duties as Collateral Agent.

 

 

Each of the undersigned agrees that as of the date of this Notice of Direction and Termination, the Intercreditor Agreement is terminated and of no further force and effect other than with respect to the indemnities in favor of the Collateral Agent contained in Section 4.6 which shall survive termination of the Intercreditor Agreement.

CHAR2\1284155v3

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this Notice of Direction and Termination to be duly executed as an Instrument under seal by their authorized representatives as of the date first written above.

	
  

	
Bank of America, N.A., as Revolving Credit Facility Agent

	
  

	
 

	 By   /s/ John H. Schmidt

    Name:  John H. Schmidt

    Title:    Vice President

	
  

	
Bank of America, N.A., as Franchise Loan Facility Servicer

	
  

	 	
By   /s/ John H. Schmidt

    Name:  John H. Schmidt

    Title:    Vice President

 

 

RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

 

  

  

  

	
  

	
The Prudential Insurance Company of America, as a Noteholder

	
  

	
By   /s/ Jason Boe

         Vice President

	
  

	
Prudential Retirement Insurance and Annuity Company, as a Noteholder

	
  

	 	
By:    Prudential Investment Management, Inc.

as Investment Manager

	
  

	
By   /s/ Jason Boe

         Vice President

	
  

	
Pruco Life Insurance Company, as a Noteholder

	
  

	
By   /s/ Jason Boe

         Assistant Vice President

	
  

	
Gibraltar Life Insurance Co., Ltd. , as a Noteholder

	
  

	 	
By:    Prudential Investment Management    (Japan), Inc., as Investment Manager

	
  

	 	
By:    Prudential Investment Management, Inc.,    as Sub-Adviser

	
  

	
By   /s/ Jason Boe

         Vice President

RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

  

  

  

	
  

	
Zurich American Insurance Company, as a Noteholder

	
  

	
By:  Prudential Private Placement Investors,    L.P. (as Investment Advisor)

	
  

	
By:  Prudential Private Placement Investors, Inc.    (as its General Partner)

	
  

	
By   /s/ Jason Boe

         Vice President

RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

  

  

  

	
  

	
Nationwide Life Insurance Company, as a Noteholder

	
  

	
Nationwide Life and Annuity Insurance Company, as a Noteholder

	
  

	
Nationwide Life Insurance Company of America, as a Noteholder

	
  

	
Nationwide Mutual Fire Insurance Company, as a Noteholder

	
  

	
By   /s/ Mary Beth Cadle

    Name:  Mary Beth Cadle

    Title:     Authorized Signatory

RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

  

  

  

	
  

	
Modern Woodmen of America, as a Noteholder

	
  

	
By   /s/ Douglas A. Pannier

    Name:  Douglas A. Pannier

    Title:    Portfolio Mgr. – Private Placements

RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

  

  

  

	
  

	
Assurity Life Insurance Company, as a Noteholder

	
  

	
By   /s/ Victor Weber

    Name:  Victor Weber

    Title:    Senior Director - Investments

   RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

  

  

  

	
  

	
MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.,  as a Noteholder

	
  

	
By   /s/  Erik S. Grossman

    Name:  Erik S. Grossman

    Title:     Vice President

   

­ 
RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

  

  

  

By execution hereof, Collateral Agent acknowledges and accepts the direction set forth herein.

	
  

	
Bank of America, N.A., as Collateral Agent

	
  

	
By   /s/ William A. Cessna

    Name:  William A. Cessna

    Title:     Vice President

RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATION

  

  

  

 

Acknowledged and Agreed:

Ruby Tuesday, Inc., a Georgia corporation

By:           /s/ Marguerite N. Duffy                                                                

Name:  Marguerite N. Duffy

Title:    Senior Vice President

RUBY TUESDAY, INC.

NOTICE OF DIRECTION AND TERMINATIONex10-4_noticeandpayoffonlf.htm

December 1, 2010

 

Ruby Tuesday, Inc.

150 West Church Avenue

Maryville, TN 37801

Attention: Marguerite Duffy

	
Re:

	
(i) Amended and Restated Loan Facility Agreement and Guaranty, dated as of November 19, 2004 (as amended, amended and restated, supplemented, extended or otherwise modified from time to time, the “Loan Facility Agreement”), among Ruby Tuesday, Inc., a Georgia corporation, as sponsor (the “Sponsor”), the Participants party thereto and Bank of America, N.A., as servicer (the “Servicer”) and (ii) Revolving Credit Agreement, dated as of December 1, 2010 (the “New Credit Agreement”), among the Sponsor, as borrower, the lenders party thereto and Bank of America, N.A., as administrative agent, servicer, issuing bank and swingline lender.  Capitalized terms used but not otherwise defined herein have the meanings provided in the Loan Facility Agreement.

Dear Margie:

The Sponsor has advised the Servicer that the Sponsor intends to repay in full all accrued and unpaid interest, letter of credit fees and commitment fees owing by the Sponsor under the Loan Facility Agreement and the other Operative Documents (the “Obligations”).  The Sponsor and the Servicer (on behalf of the Participants) acknowledge and agree that, upon receipt by the Servicer of (a) an original or facsimile transmission of this letter, countersigned by the Sponsor, (b) the Payoff Amount (as defined below) from or on behalf of the Sponsor and (c) satisfactory evidence that all loans and letters of credit advanced by the Servicer and the Participants pursuant to the Loan Facility Agreement have been refinanced in full by the Lenders under the New Credit Agreement (clauses (a), (b) and (c) collectively, the “Payoff Conditions”), all of the Obligations shall have been paid in full, except as described in paragraph 1(b) below:

 

1.           The aggregate amount of Obligations owing by the Sponsor under the Operative Documents (the “Payoff Amount”) is as follows:

 

(a)           If payment in full of the Obligations is received by the Servicer prior to 3:00 p.m. Eastern time on December 1, 2010:

	  	  	  
	
Adjusted LIBO Rate Loans – Interest

	
$5,448.61

	  
	
Commitment fees

	
$6,791.65

	  
	
Total Payoff Amount

	
$12,240.26

	  

(b)           The calculation of the Payoff Amount does not include any breakage fees with respect to Adjusted LIBO Rate Participant Fundings.  Notwithstanding the delivery of the Payoff Amount by the Sponsor, the Sponsor will remain obligated to pay to the Servicer, for distribution to the Participants, as appropriate, all applicable breakage fees pursuant to the provisions of the Loan Facility Agreement.  The Sponsor shall promptly pay such breakage fees to the Servicer upon receipt of notice(s) from the Servicer specifying the amount thereof.

2.           The Payoff Amount shall be paid to the Servicer by wire transfer of immediately available funds as set forth on Schedule A attached hereto.

 

  

  

  

3.           The Sponsor agrees that all advances and letters of credit extended by the Servicer and the Participants under the Loan Facility Agreement shall, to the extent outstanding on the Closing Date (as defined in the New Credit Agreement), be refinanced by Franchisee Loan Fundings (as defined in the New Credit Agreement) advanced by the Lenders under the New Credit Agreement on the Closing Date.

4.           Upon the Sponsor’s acceptance of this letter (as evidenced by the Sponsor’s countersignature hereto), all of the Servicer’s and the Participants’ commitments to extend further credit to the Sponsor under the Operative Documents shall terminate, and upon the satisfaction of the Payoff Conditions, all Operative Documents (other than the Pledge Agreement and the Intercreditor Agreement, the termination of which is governed by the Notice of Direction and Termination) shall terminate; provided that the foregoing shall not apply to any obligations of the Borrower and the Subsidiary Loan Parties that expressly survive termination of the Operative Documents.  It is agreed that the termination of the Pledge Agreement and the Intercreditor Agreement and the release of the liens thereunder are being separately addressed in a Notice of Direction and Termination dated as of the date hereof (the “Notice of Direction and Termination”) executed by Bank of America, N.A. as revolving credit facility agent, franchise loan facility servicer and collateral agent and by the holders of the Senior Notes.

5.           This letter agreement (a) shall be governed by, and construed in accordance with, the law of the State of Georgia, (b) may be executed in one or more counterparts, all of which, taken together, shall constitute one and the same instrument, (c) sets forth the entire agreement among the parties relating to the subject matter pertaining hereto, and no term or provision hereof may be amended, changed, waived, discharged or terminated orally or otherwise, except in writing signed by each such party, and (d) shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery by any party hereto of an executed counterpart of this letter by facsimile shall be effective as such party’s original executed counterpart.

[Signatures on Following Page(s)]

CHAR1\1191156v4

  RUBY TUESDAY LOAN FACILITY AGREEMENT

PAYOFF LETTER

  

  

Very truly yours,

BANK OF AMERICA, N.A.,

as Servicer

By:/s/ John H. Schmidt

Name:  John H. Schmidt

Title:    Vice President

    RUBY TUESDAY LOAN FACILITY AGREEMENT 
PAYOFF LETTER

  

  

 

ACKNOWLEDGED AND AGREED:

RUBY TUESDAY, INC.,

a Georgia corporation

 

By:/s/ Marguerite N. Duffy

Name: Marguerite N. Duffy

Title:   Senior Vice President

RUBY TUESDAY LOAN FACILITY AGREEMENT

PAYOFF LETTER

  

  

  

Schedule A

Wire Transfer Information

Bank of America, N.A.

New York, NY

Attn: Corporate Credit Services

ABA #:  026009593

Account #:  1366212250600

Please reference: Ruby Tuesday

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