Document:

ex10-2.htm

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT dated as of May 26, 2017 (as amended, modified, restated or supplemented from time to time, the “Security Agreement”) is by and among the parties identified as “Grantors” on the signature pages hereto and such other parties as may become Grantors hereunder after the date hereof (individually a “Grantor,” and collectively the “Grantors”) and UBS AG, Stamford Branch, as administrative agent (in such capacity, the “Administrative Agent”) for the Secured Creditors (defined below). 

 

W I T N E S S E T H

 

WHEREAS, a credit facility has been established in favor of Ruby Tuesday, Inc., a Georgia corporation (the “Borrower”), pursuant to the terms of that certain Revolving Credit Agreement dated as of the date hereof (as amended, modified, supplemented or extended from time to time, the “Credit Agreement”) among the Borrower, the Guarantors, the Lenders from time to time party thereto and UBS AG, Stamford Branch, as Administrative Agent and Issuing Bank;

 

WHEREAS, the Lenders have required that the Grantors execute and deliver to the Administrative Agent, for the benefit of the Secured Creditors, this Security Agreement; 

 

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.     Definitions.

 

(a)     Capitalized terms used and not otherwise defined herein shall have the meanings provided in the Credit Agreement.

 

(b)     As used herein, the following terms shall have the meanings assigned thereto in the UCC: Accession, Account, As-Extracted Collateral, Bank, Chattel Paper, Commercial Tort Claim, Commodity Intermediary, Consumer Goods, Deposit Account, Document, Electronic Chattel Paper, Equipment, Farm Products, Fixtures, General Intangible, Goods, Instrument, Inventory, Investment Property, Letter-of-Credit Right, Manufactured Home, Proceeds, Securities Intermediary, Software, Supporting Obligation and Tangible Chattel Paper.

 

(c)     As used herein, the following terms shall have the meanings set forth below:

 

“Administrative Agent” has the meaning provided in the introductory paragraph hereto.

 

“Borrower” has the meaning provided in the Recitals hereof.

 

“Collateral” has the meaning provided in Section 2 hereof.

 

“Credit Agreement” has the meaning provided in the Recitals hereof.

 

“Control” means “control,” as such term is defined in Section 9-104 of the UCC.

 

“Copyright License” means any written agreement, naming any Grantor as licensee, with respect to any Copyright of another Person.

 

“Copyrights” means (a) all copyrights of the United States or any other country in all Works, now existing or hereafter created or acquired, all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, registrations, recordings and applications in the United States Copyright Office or in any similar office or agency of the United States, any state thereof or any other country or political subdivision thereof, and (b) all renewals thereof.

 

“Deposit Account Control Agreement” means any deposit account control agreement by and among the Borrower or any Guarantor, the applicable depository bank and the Administrative Agent, in each case in form and substance reasonably satisfactory to the Administrative Agent.

 

“Excluded Accounts” means all (i) Deposit Accounts maintained solely as payroll or other employee wage and benefit accounts (including withholding tax payments related thereto) and (ii) other Deposit Accounts with an aggregate closing daily balance not in excess of $150,000 in the aggregate for all such Deposit Accounts excluded pursuant to this clause (ii). 

 

“Grantor” and “Grantors” each has the meaning provided in the introductory paragraph hereof.

 

“Patent License” means any agreement, whether written or oral, providing for the grant to a Grantor of any right to manufacture, use or sell any invention or design covered by a Patent.

 

“Patents” means (a) all patents of the United States or any other country or any political subdivision thereof and all reissues, re-examinations and extensions thereof, and (b) all applications for patents of the United States or any other country and all divisions, continuations and continuations-in-part thereof.

 

“Secured Creditors” means the collective reference to the holders of the Secured Obligations and “Secured Creditor” means any one of them and including, without limitation, the Administrative Agent, the Arranger, the Lenders, the Issuing Bank and each counterparty to a Hedging Agreement or a Treasury Management Agreement if on the Closing Date or at the date of entering into such Hedging Agreement or Treasury Management Agreement such counterpary was the Administrative Agent or a Lender or an Affiliate of the Administrative Agent or a Lender. 

 

“Secured Obligations” means, without duplication, (i) all Obligations and (b) all costs and expenses incurred in connection with enforcement and collection of the Obligations, including fees, charges and disbursements of counsel.

 

“Trademark License” means any agreement, written or oral, providing for the grant to a Grantor of any right to use any Trademark.

 

“Trademarks” means (a) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers, and the goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States or any other country, any state thereof or any political subdivision thereof, or otherwise and (b) all renewals thereof.

 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that, at any time, if by reason of mandatory provisions of law, any or all of the perfection or priority of the Administrative Agent’s and the Secured Creditors’ security interest in any item or portion of the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect, at such time, in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions.

 

“Work” means any work that is subject to copyright protection pursuant to Title 17 of the United States Code.

 

2.     Grant of Security Interest in the Collateral. To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Grantor hereby grants, pledges and assigns to the Administrative Agent, for the benefit of the Secured Creditors, a continuing security interest in, and a right to set-off against, any and all right, title and interest of such Grantor in and to all of the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the “Collateral”):

 

all Accounts;

 

[Reserved];

 

all Chattel Paper;

 

those Commercial Tort Claims identified on Schedule 2(d) attached hereto;

 

all Copyrights;

 

all Copyright Licenses;

 

all Deposit Accounts;

 

all Documents;

 

all Equipment;

 

all Fixtures;

 

all General Intangibles;

 

all Goods;

 

all Instruments;

 

all Inventory;

 

all Investment Property;

 

all Letter-of-Credit Rights;

 

all Patents;

 

all Patent Licenses;

 

all Software;

 

all Supporting Obligations in respect of other Collateral;

 

all Trademarks;

 

all Trademark Licenses; and

 

to the extent not otherwise included, Accessions and all Proceeds of any and all of the foregoing.

 

Notwithstanding anything to the contrary contained herein, the security interests granted under this Security Agreement shall not extend to (i) any Excluded Property, (ii) any lease, license or other contract, or any other right thereunder, if the grant of a security interest in such lease, license or contract or right thereunder in the manner contemplated by this Security Agreement is prohibited by the terms of such lease, license, contract or right or by law or would result in the termination of such lease, license, or contract or right, but only to the extent that any such prohibition is not rendered ineffective pursuant to the UCC or any other applicable law (including any Debtor Relief Laws) and provided that in the event of the termination or elimination of any such prohibition to the extent sufficient to permit any such item to become Collateral hereunder, a security interest in such lease, license or contract or right thereunder shall be automatically and simultaneously granted hereunder and shall be included as Collateral hereunder or (iii) all Excluded Accounts except to the extent constituting or containing proceeds of Collateral.

 

The Grantors and the Administrative Agent, on behalf of the Secured Creditors, hereby acknowledge and agree that the security interest created hereby in the Collateral (i) constitutes continuing collateral security for all of the Secured Obligations, whether now existing or hereafter arising and (ii) is not and shall not be construed as a present assignment of title to any Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks or Trademark Licenses.

 

3.     Provisions Relating to Accounts.

 

(a)     Anything herein to the contrary notwithstanding, each of the Grantors shall remain liable under each of the Accounts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise to each such Account. Neither the Administrative Agent nor any Secured Creditor shall have any obligation or liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Security Agreement or the receipt by the Administrative Agent or any Secured Creditor of any payment relating to such Account pursuant hereto, nor shall the Administrative Agent or any Secured Creditor be obligated in any manner to perform any of the obligations of a Grantor under or pursuant to any Account (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts that may have been assigned to it or to which it may be entitled at any time or times.

 

(b)     At any time after the occurrence and during the continuation of an Event of Default, (i) the Administrative Agent shall have the right, but not the obligation, to make test verifications of the Accounts in any manner and through any medium that it considers advisable, and the Grantors shall furnish all such assistance and information as the Administrative Agent may require in connection with such test verifications, (ii) upon the Administrative Agent’s request and at the expense of the Grantors, the Grantors shall cause independent public accountants or others satisfactory to the Administrative Agent to furnish to the Administrative Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the Accounts and (iii) the Administrative Agent in its own name or in the name of others may communicate with account debtors on the Accounts to verify with them to the Administrative Agent’s satisfaction the existence, amount and terms of any Accounts.

 

4.     Representations and Warranties. Each Grantor hereby represents and warrants to the Administrative Agent, for the benefit of the Secured Creditors, that so long as any of the Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) remains outstanding and until all of the commitments relating thereto have been terminated:

 

Legal Name.

 

(i)     Each Grantor’s exact legal name is (and for the prior five years or, if shorter, since the date of its formation has been), federal taxpayer identification number and organization identification number are as set forth on Schedule 4(a)(i).

 

(ii)     Each Grantor’s state of formation is (and for the five years prior to the date hereof or since the date of its formation until the date hereof has been) as set forth on Schedule 4(a)(i).

 

(iii)     Other than as set forth on Schedule 4(a)(iii), no Grantor has been party to a merger, consolidation or other change in structure in the five years prior to the date hereof. Also set forth on Schedule 4(a)(iii) is a list of all other names used by each Grantor and all other names used by each Grantor on any filings with the Internal Revenue Service, in each case, at any time within the five years preceding the date hereof.

 

(iv)     Except for those purchases, acquisitions and other transactions described in Schedule 4(a)(iv), all of the Collateral has been originated by each Grantor in the ordinary course of business or consists of goods which have been acquired by such Grantor in the ordinary course of business from a person in the business of selling goods of that kind.

 

Ownership. Each Grantor is the legal and beneficial owner of its Collateral other than Excluded Property and has the right to pledge, sell, assign or transfer the same. 

 

Security Interest/Priority. This Security Agreement creates a valid security interest in favor of the Administrative Agent, for the benefit of the Secured Creditors, in the Collateral of such Grantor and, upon the filing of appropriate UCC financing statements in the appropriate filing offices in the jurisdictions of organization of the applicable Grantor and, as applicable, filings with the U.S. Patent and Trademark Office and the U.S. Copyright Office, shall constitute a valid, perfected first priority security interest in such Collateral, to the extent such security interest can be perfected by filing under the UCC and, as applicable, with the U.S. Patent and Trademark Office and the U.S. Copyright Office, free and clear of all Liens except for Permitted Liens.

 

Types of Collateral. None of the Collateral consists of, or is the Accessions or Proceeds of, As-Extracted Collateral, Consumer Goods, Farm Products, Manufactured Homes, or standing timber.

 

Copyrights, Patents and Trademarks.

 

(i)     Schedule 4(e) includes all Copyrights, all Copyright Licenses, all Patents, all Patent Licenses, all Trademarks and all Trademark Licenses, in each case, owned by any Grantor in its own name, or to which any Grantor is a party, as of the date hereof (other than with respect to off-the-shelf software and similar rights) and registered or pending registration in the name of such Grantor in the United States Copyright Office or the United States Patent and Trademark Office.

 

(ii)     No Grantor has made any assignment or agreement in conflict with the security interest in the (A) Copyrights, (B) Patents or (C) Trademarks or (D) other Intellectual Property of any Grantor hereunder (other than in connection with a Permitted Lien or as otherwise permitted under the Credit Agreement).

 

Commercial Tort Claims. Such Grantor has no commercial tort claims in excess of $1,000,000 other than (i) those listed on Schedule 2(d), or (ii) as to which the actions required by Section 5(i) have been taken.

 

Chief Executive Office. The chief executive office of each Grantor is located at the address set forth in Schedule 4(g) hereto.

 

Deposit Accounts. Schedule 4(i) is a true and complete list of all Deposit Accounts maintained by each Grantor and, in each case, including the name of each institution where each such Deposit Account is held, the name of each such Deposit Account and the name of each entity that holds each Deposit Account and stating if such Deposit Account is required to be subject to a Deposit Account Control Agreement pursuant hereto and, if such Deposit Account is not so required to be subject to a Deposit Account Control Agreement, the reason for such Deposit Account to be excluded from the Deposit Account Control Agreement requirement. The Administrative Agent has a security interest in each such Deposit Account (other than Excluded Accounts) which security interest is perfected by Control. 

 

5.     Covenants. Each Grantor covenants that, so long as any of the Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) remains outstanding and until all of the commitments relating thereto have been terminated, such Grantor shall:

 

Other Liens. Use commercially reasonable efforts to defend the Collateral against Liens therein other than Permitted Liens.

 

[Reserved].

 

Change in Structure, Location or Type. Not, without providing ten days prior written notice to the Administrative Agent (i) change its name or state of formation or (ii) be party to a merger, consolidation or other change in structure except as permitted by the Credit Agreement. In connection with any such change, the applicable Grantor shall take all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the Administrative Agent for the benefit of the Secured Creditors in the Collateral, if applicable, and such Grantor agrees to promptly provide the Administrative Agent with certified organizational documents reflecting any of the changes described in the preceding sentence.

 

Perfection of Security Interest. Upon the reasonable request of the Administrative Agent, execute and deliver to the Administrative Agent such agreements, assignments or instruments and do all such other things as the Administrative Agent may deem necessary, appropriate or convenient (i) to assure to the Administrative Agent the effectiveness, perfection and priority of its security interests in the Collateral hereunder, including (A) such instruments as the Administrative Agent may from time to time reasonably request in order to perfect and maintain the security interests granted hereunder in accordance with the UCC, (B) with regard to Copyrights, a Notice of Grant of Security Interest in Copyrights for filing with the United States Copyright Office in the form of Exhibit 5(d)(i) attached hereto, (C) with regard to Patents issued by the United States Patent and Trademark Office, a Notice of Grant of Security Interest in Patents for filing with the United States Patent and Trademark Office in the form of Exhibit 5(d)(ii) attached hereto and (D) with regard to Trademarks registered with the United States Patent and Trademark Office and all applications for Trademarks filed with the United States Patent and Trademark Office, a Notice of Grant of Security Interest in Trademarks for filing with the United States Patent and Trademark Office in the form of Exhibit 5(d)(iii) attached hereto, (ii) to consummate the transactions contemplated hereby and (iii) to otherwise protect and assure the Administrative Agent of its rights and interests hereunder. To that end, each Grantor authorizes the Administrative Agent to file one or more financing statements (with collateral descriptions broader, including without limitation “all assets” and/or “all personal property” collateral descriptions, and/or less specific than the description of the Collateral contained herein) disclosing the Administrative Agent’s security interest in any or all of the Collateral of such Grantor without such Grantor’s signature thereon, and further each Grantor also hereby irrevocably makes, constitutes and appoints the Administrative Agent, its nominee or any other Person whom the Administrative Agent may designate, as such Grantor’s attorney-in-fact with full power and for the limited purpose to sign in the name of such Grantor any such financing statements (including renewal statements), amendments and supplements, notices or any similar documents that in the Administrative Agent’s reasonable discretion would be necessary, appropriate or convenient in order to perfect and maintain perfection of the security interests granted hereunder, such power, being coupled with an interest, being and remaining irrevocable so long as the Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) remain unpaid and until the commitments relating thereto shall have been terminated. Each Grantor hereby agrees that a carbon, photographic or other reproduction of this Security Agreement or any such financing statement is sufficient for filing as a financing statement by the Administrative Agent without notice thereof to such Grantor wherever the Administrative Agent may in its sole discretion desire to file the same. In the event for any reason the law of any jurisdiction other than New York becomes or is applicable to the Collateral of any Grantor or any part thereof, or to any of the Secured Obligations, such Grantor agrees to execute and deliver all such instruments and to do all such other things as the Administrative Agent in its sole discretion deems necessary, appropriate or convenient to preserve, protect and enforce the security interests of the Administrative Agent under the law of such other jurisdiction (and, if a Grantor shall fail to do so promptly upon the request of the Administrative Agent, then the Administrative Agent may execute any and all such requested documents on behalf of such Grantor pursuant to the power of attorney granted hereinabove). If any Collateral is in the possession or control of a Grantor’s agents and the Administrative Agent so requests, such Grantor agrees to notify such agents in writing of the Administrative Agent’s security interest therein and, if an Event of Default has occurred and is continuing and the Administrative Agent so requests, instruct them to hold all such Collateral for the account of the Administrative Agent for the benefit of the Secured Creditors, subject to the Administrative Agent’s instructions. Each Grantor agrees to mark its books and records to reflect the security interest of the Administrative Agent in the Collateral. Notwithstanding any provision to the contrary in this Agreement or any other Loan Document, the Grantors shall not be required to obtain landlord waivers or consents with respect to any Collateral located on any real property leased by any Grantor.

 

Control. Execute and deliver (and use commercially reasonable efforts to cause third parties to execute and deliver) all agreements, assignments, instruments or other documents as the Administrative Agent shall reasonably request for the purpose of obtaining and maintaining control within the meaning of the UCC with respect to any Collateral consisting of Deposit Accounts. 

 

Collateral held by Warehouseman, Bailee, etc. If any Collateral is at any time in the possession or control of a warehouseman, bailee (other than carriers transporting Inventory and Equipment in the ordinary course of business), agent or processor of such Grantor and is expected to remain in possession and control of such third party, (i) notify the Administrative Agent of such possession or control and (ii) after the occurrence and during the continuation of an Event of Default, take such action as the Administrative Agent shall request, including without limitation, (A) notify such Person of the Administrative Agent’s security interest in such Collateral, (B) instruct such Person to hold all such Collateral for the account of the Administrative Agent on behalf of the Secured Creditors and subject to the Administrative Agent’s instructions and (C) obtain an acknowledgment from such Person that it is holding such Collateral for the benefit of the Administrative Agent.

 

Covenants Relating to Copyrights, Patents and Trademarks.

 

(i)     Not make any assignment or agreement in conflict with the security interest in the material Copyrights of each Grantor hereunder (other than in connection with a Permitted Lien or as otherwise permitted under the Credit Agreement).

 

(ii)     Not make any assignment or agreement in conflict with the security interest in the material Patents or Trademarks of each Grantor hereunder (other than in connection with a Permitted Lien or as otherwise permitted under the Credit Agreement).

 

Insurance. Such Grantor shall maintain insurance covering the Collateral in accordance with Section 6.8 of the Credit Agreement.

 

Commercial Tort Claims. 

 

(i)     Promptly notify the Administrative Agent in writing of the initiation of any Commercial Tort Claim in excess of $1,000,000 before any Governmental Authority by or in favor of such Grantor and grant to the Administrative Agent in such writing a security interest therein and in the Proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Administrative Agent. 

 

(ii)     Execute and deliver such statements, documents and notices and do and cause to be done all such things as the Administrative Agent may deem necessary, appropriate or convenient, or as are required by law, to create, perfect and maintain the Administrative Agent’s security interest in any Commercial Tort Claim in excess of $1,000,000.

 

6.     Advances by Secured Creditors. Upon the occurrence and during the continuation of an Event of Default and upon notice from the Administrative Agent, the Administrative Agent may, at its sole option and in its sole discretion, upon prior notice to the Grantors, perform the following and in so doing may expend such sums as the Administrative Agent may deem advisable in the performance thereof: the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all other expenditures that the Administrative Agent or the Secured Creditors may make for the protection of the security hereof or may be compelled to make by operation of law. All such sums and amounts so expended shall be repayable by the Grantors on a joint and several basis (subject to Section 22 hereof) promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are expended at the Default Interest rate. No such performance of any covenant or agreement by the Administrative Agent or the Secured Creditors on behalf of any Grantor, and no such advance or expenditure therefor, shall relieve the Grantors of any default under the terms of this Security Agreement, the other Loan Documents or any other documents relating to the Secured Obligations. The Administrative Agent may make any payment hereby authorized in accordance with any bill, statement or estimate procured from the appropriate public office or holder of the claim to be discharged, without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is being contested in good faith by a Grantor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP.

 

7.     Remedies.

 

(a)     General Remedies. Upon the occurrence of an Event of Default and during the continuation thereof, the Administrative Agent shall have, in addition to the rights and remedies provided herein, in the Loan Documents, in any other documents relating to the Secured Obligations, or by applicable law (including, without limitation, levy of attachment and garnishment), the rights and remedies of a secured party under the Uniform Commercial Code of the jurisdiction applicable to the affected Collateral and, further, the Administrative Agent may, with or without judicial process or the aid and assistance of others to the extent permitted by applicable law, (i) without breach of the peace, enter on any premises on which any of the Collateral may be located and, without resistance or interference by the Grantors, take possession of the Collateral, (ii) dispose of any Collateral on any such premises, (iii) require the Grantors to assemble and make available to the Administrative Agent at the expense of the Grantors any Collateral at any place and time designated by the Administrative Agent that is reasonably convenient to both parties, (iv) remove any Collateral from any such premises for the purpose of effecting sale or other disposition thereof, and/or (v) without demand and without advertisement, notice, hearing or process of law, all of which each of the Grantors hereby waives to the fullest extent permitted by law, at any place and time or times, sell and deliver any or all Collateral held by or for it at public or private sale, by one or more contracts, in one or more parcels, for cash, upon credit or otherwise, at such prices and upon such terms as the Administrative Agent deems advisable, in its sole discretion (subject to any and all mandatory legal requirements). Each of the Grantors acknowledges that any private sale referenced above may be at prices and on terms less favorable to the seller than the prices and terms that might have been obtained at a public sale. In addition to all other sums due the Administrative Agent and the Secured Creditors with respect to the Secured Obligations, the Grantors shall pay the Administrative Agent and each of the Secured Creditors all reasonable documented costs and expenses incurred by the Administrative Agent or any such Secured Creditor, in enforcing its remedies hereunder including, but not limited to, attorneys’ fees and court costs, in obtaining or liquidating the Collateral, in enforcing payment of the Secured Obligations, or in the prosecution or defense of any action or proceeding by or against the Administrative Agent or the Secured Creditors or the Grantors concerning any matter arising out of or connected with this Security Agreement, any Collateral or the Secured Obligations, including, without limitation, any of the foregoing arising in, arising under or related to a case under the Debtor Relief Laws. To the extent the rights of notice cannot be legally waived hereunder, each Grantor agrees that any requirement of reasonable notice shall be met if such notice is personally served on or mailed, postage prepaid, to the Borrower in accordance with the notice provisions of 11.1 of the Credit Agreement at least ten Business Days before the time of sale or other event giving rise to the requirement of such notice. The Administrative Agent shall not be obligated to make any sale or other disposition of the Collateral regardless of notice having been given. To the extent permitted by law, any Secured Creditor may be a purchaser at any such sale. To the extent permitted by applicable law, each of the Grantors hereby waives all of its rights of redemption with respect to any such sale. Subject to the provisions of applicable law, the Administrative Agent and the Secured Creditors may postpone or cause the postponement of the sale of all or any portion of the Collateral by announcement at the time and place of such sale, and such sale may, without further notice, to the extent permitted by law, be made at the time and place to which the sale was postponed, or the Administrative Agent may further postpone such sale by announcement made at such time and place.

 

(b)     Remedies relating to Accounts. Upon the occurrence of an Event of Default and during the continuation thereof, whether or not the Administrative Agent has exercised any or all of its rights and remedies hereunder, (i) each Grantor will promptly upon request of the Administrative Agent instruct all account debtors to remit all payments in respect of Accounts to a mailing location selected by the Administrative Agent and (ii) the Administrative Agent shall have the right to enforce any Grantor’s rights against its customers and account debtors, and the Administrative Agent or its designee may notify (or require any Grantor to notify) any Grantor’s customers and account debtors that the Accounts of such Grantor have been assigned to the Administrative Agent or of the Administrative Agent’s security interest therein, and may (either in its own name or in the name of a Grantor or both) demand, collect (including without limitation by way of a lockbox arrangement), receive, take receipt for, sell, sue for, compound, settle, compromise and give acquittance for any and all amounts due or to become due on any Account, and, in the Administrative Agent’s discretion, file any claim or take any other action or proceeding to protect and realize upon the security interest of the Secured Creditors in the Accounts. Each Grantor acknowledges and agrees that the Proceeds of its Accounts remitted to or on behalf of the Administrative Agent in accordance with the provisions hereof shall be solely for the Administrative Agent’s own convenience. The Administrative Agent and the Secured Creditors shall have no liability or responsibility to any Grantor for acceptance of a check, draft or other order for payment of money bearing the legend “payment in full” or words of similar import or any other restrictive legend or endorsement or be responsible for determining the correctness of any remittance. Each Grantor hereby agrees to indemnify the Administrative Agent and the Secured Creditors from and against all liabilities, damages, losses, actions, claims, judgments, costs, expenses, charges and attorneys’ fees suffered or incurred by the Administrative Agent or the Secured Creditors (each, an “Indemnified Party”) because of the maintenance of the foregoing arrangements except as relating to or arising out of the gross negligence or willful misconduct of an Indemnified Party or its officers, employees or agents. In the case of any investigation, litigation or other proceeding, the foregoing indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by a Grantor, its directors, shareholders or creditors or an Indemnified Party or any other Person or any other Indemnified Party is otherwise a party thereto.

 

(c)     Access. In addition to the rights and remedies hereunder, upon the occurrence of an Event of Default and during the continuation thereof, the Administrative Agent shall have the right, pursuant to a judicial process or without breach of the peace, to enter and remain upon the various premises of the Grantors without cost or charge to the Administrative Agent, and use the same, together with materials, supplies, books and records of the Grantors for the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether by foreclosure, auction or otherwise. In addition, the Administrative Agent may remove Collateral, or any part thereof, from such premises and/or any records with respect thereto, in order to effectively collect or liquidate such Collateral.

 

(d)     Nonexclusive Nature of Remedies. Failure by the Administrative Agent or the Secured Creditors to exercise any right, remedy or option under this Security Agreement, any other Loan Document, any other documents relating to the Secured Obligations, or as provided by law, or any delay by the Administrative Agent or the Secured Creditors in exercising the same, shall not operate as a waiver of any such right, remedy or option. No waiver hereunder shall be effective unless it is in writing, signed by the party against whom such waiver is sought to be enforced and then only to the extent specifically stated, which in the case of the Administrative Agent or the Secured Creditors shall only be granted as provided herein. To the extent permitted by applicable law, neither the Administrative Agent, the Secured Creditors, nor any party acting as attorney for the Administrative Agent or the Secured Creditors, shall be liable hereunder for any acts or omissions or for any error of judgment or mistake of fact or law other than their gross negligence or willful misconduct hereunder. The rights and remedies of the Administrative Agent and the Secured Creditors under this Security Agreement shall be cumulative and not exclusive of any other right or remedy that the Administrative Agent or the Secured Creditors may have.

 

(e)     Deficiency. In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Administrative Agent or the Secured Creditors are legally entitled, the Grantors shall be jointly and severally liable for the deficiency (subject to Section 22 hereof), together with interest thereon at the Default Interest rate, together with the costs of collection and attorneys’ fees and expenses. Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Grantors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto.

 

8.     Rights of the Administrative Agent.

 

(a)     Power of Attorney. Each Grantor hereby designates and appoints the Administrative Agent, on behalf of the Secured Creditors, and each of its designees or agents, as attorney-in-fact of such Grantor, irrevocably and with power of substitution, with authority to take any or all of the following actions upon the occurrence and during the continuation of an Event of Default:

 

(i)     to demand, collect, settle, compromise and adjust, and give discharges and releases concerning the Collateral, all as the Administrative Agent may deem appropriate;

 

(ii)     to commence and prosecute any actions at any court for the purposes of collecting any of the Collateral and enforcing any other right in respect thereof;

 

(iii)     to defend, settle or compromise any action brought and, in connection therewith, give such discharge or release as the Administrative Agent may deem appropriate;

 

(iv)     to receive, open and dispose of mail addressed to a Grantor and endorse checks, notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods giving rise to the Collateral on behalf of and in the name of such Grantor, or securing, or relating to such Collateral;

 

(v)     to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Collateral;

 

(vi)     to direct any parties liable for any payment in connection with any of the Collateral to make payment of any and all monies due and to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct;

 

(vii)     to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in respect of or arising out of any Collateral;

 

(viii)     to sell, assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in respect of, any Collateral or the goods or services that have given rise thereto, as fully and completely as though the Administrative Agent were the absolute owner thereof for all purposes;

 

(ix)     to adjust and settle claims under any insurance policy relating thereto;

 

(x)     to execute and deliver all assignments, conveyances, statements, financing statements, renewal financing statements, security and pledge agreements, affidavits, notices and other agreements, instruments and documents that the Administrative Agent may deem appropriate in order to perfect and maintain the security interests and liens granted in this Security Agreement and in order to fully consummate all of the transactions contemplated therein;

 

(xi)     to institute any foreclosure proceedings that the Administrative Agent may deem appropriate; and

 

(xii)     to do and perform all such other acts and things as the Administrative Agent may deem appropriate or convenient in connection with the Collateral.

 

This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) shall remain outstanding and until all of the commitments relating thereto shall have been terminated. The Administrative Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Administrative Agent in this Security Agreement, and shall not be liable for any failure to do so or any delay in doing so. The Administrative Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Administrative Agent solely to protect, preserve and realize upon its security interest in the Collateral.

 

(b)     The Administrative Agent’s Duty of Care. Other than the exercise of reasonable care to assure the safe custody of the Collateral while being held by the Administrative Agent hereunder and to account for all proceeds thereof, the Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that the Grantors shall be responsible for preservation of all rights in the Collateral, and the Administrative Agent shall be relieved of all responsibility for the Collateral upon surrendering it or tendering the surrender of it to the Grantors. The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property, which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it being understood that the Administrative Agent shall not have responsibility for taking any necessary steps to preserve rights against any parties with respect to any of the Collateral. In the event of a public or private sale of Collateral pursuant to Section 7 hereof, the Administrative Agent shall have no obligation to clean, repair or otherwise prepare the Collateral for sale.

 

(c)     Release of Collateral. To the extent permitted by and in accordance with the Credit Agreement, the Administrative Agent may release any of the Collateral from the liens created pursuant to this Security Agreement or may substitute any of the Collateral for other Collateral without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Security Agreement as to any Collateral not expressly released or substituted, and this Security Agreement shall continue as a lien on all Collateral not expressly released or substituted. Notwithstanding the foregoing, the Administrative Agent may release any Lien on any Collateral granted to or held by the Administrative Agent under this Security Agreement (i) upon the termination of the Security Agreement in accordance with the terms hereof, (ii) that is transferred or to be transferred (other than a transfer to another Grantor) as part of or in connection with any transfer or other disposition permitted under the Loan Documents, or (iii) as approved in accordance with the Credit Agreement.

 

9.     Application of Proceeds. After the occurrence of an Event of Default, any payments hereunder and any proceeds of the Collateral, when received by the Administrative Agent or any of the Secured Creditors in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in Section 9.2 of the Credit Agreement, and each Grantor irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Administrative Agent shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the Administrative Agent’s sole discretion, notwithstanding any entry to the contrary upon its books and records.

 

10.     Continuing Agreement.

 

(a)     This Security Agreement shall be a continuing agreement in every respect and shall remain in full force and effect so long as any of the Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) remains outstanding and until all of the commitments relating thereto have been terminated. Upon payment or other satisfaction of all Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) and termination of all commitments relating thereto, this Security Agreement shall be automatically terminated and the Administrative Agent shall, upon the request and at the expense of the Grantors, forthwith release all of its liens and security interests hereunder, shall return all certificates or instruments pledged hereunder and shall execute and deliver all UCC termination statements and/or other documents reasonably requested by the Grantors evidencing such termination. Notwithstanding the foregoing, all releases and indemnities provided hereunder shall survive termination of this Security Agreement.

 

(b)     This Security Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Secured Creditor as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by the Administrative Agent or any Secured Creditor in defending and enforcing such reinstatement shall be deemed to be included as a part of the Secured Obligations.

 

11.     Amendments and Waivers. This Security Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated except as set forth in Section 11.2 of the Credit Agreement.

 

12.     Successors in Interest. This Security Agreement shall create a continuing security interest in the Collateral and shall be binding upon each Grantor, its successors and assigns, and shall inure, together with the rights and remedies of the Administrative Agent and the Secured Creditors hereunder, to the benefit of the Administrative Agent and the Secured Creditors and their successors and permitted assigns; provided, however, that, except as provided in the Credit Agreement, none of the Grantors may assign its rights or delegate its duties hereunder without the prior written consent of the requisite Lenders under the Credit Agreement. To the fullest extent permitted by law, each Grantor hereby releases the Administrative Agent and each Secured Creditor, and their respective successors and assigns, from any liability for any act or omission relating to this Security Agreement or the Collateral, except for any liability arising from the gross negligence or willful misconduct of the Administrative Agent or such holder, or their respective Related Parties.

 

13.     Notices. All notices required or permitted to be given under this Security Agreement shall be given as provided in Section 11.1 of the Credit Agreement.

 

14.     Counterparts. This Security Agreement may be executed in any number of counterparts, each of which where so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Security Agreement to produce or account for more than one such counterpart.

 

15.     Headings. The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Security Agreement.

 

16.     Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial. The terms of Sections 11.5 and 11.6 of the Credit Agreement with respect to governing law, submission to jurisdiction, venue and waiver of jury trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.

 

17.     Severability. If any provision of this Security Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

 

18.     Entirety. This Security Agreement, the other Loan Documents and the other documents relating to the Secured Obligations represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to the Secured Obligations, or the transactions contemplated herein and therein.

 

19.     Survival. All representations and warranties of the Grantors hereunder shall survive the execution and delivery of this Security Agreement, the other Loan Documents and the other documents relating to the Secured Obligations, the delivery of the Revolving Credit Notes and the extension of credit thereunder or in connection therewith.

 

20.     Other Security. To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Collateral (including, without limitation, real property and securities owned by a Grantor), or by a guarantee, endorsement or property of any other Person, then to the maximum extent permitted by applicable law the Administrative Agent shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence and during the continuance of any Event of Default, and the Administrative Agent shall have the right, in its sole discretion, to determine which rights, security, liens, security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or any of the rights of the Administrative Agent or the Secured Creditors under this Security Agreement, under any of the other Loan Documents or under any other document relating to the Secured Obligations.

 

21.     Joint and Several Obligations of Grantors.

 

(a)     Each of the Grantors is accepting joint and several liability hereunder in consideration of the financial accommodation to be provided by the Secured Creditors, for the mutual benefit, directly and indirectly, of each of the Grantors and in consideration of the undertakings of each of the Grantors to accept joint and several liability for the obligations of each of them.

 

(b)     Each of the Grantors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Grantors with respect to the payment and performance of all of the Secured Obligations arising under this Security Agreement, the other Loan Documents and any other documents relating to the Secured Obligations, it being the intention of the parties hereto that all the Secured Obligations shall be the joint and several obligations of each of the Grantors without preferences or distinction among them.

 

(c)     Notwithstanding any provision to the contrary contained herein, in any other of the Loan Documents or in any other documents relating to the Secured Obligations, the obligations of each Guarantor under the Credit Agreement, the other Loan Documents and the other documents relating to the Secured Obligations shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under Debtor Relief Laws or any comparable provisions of any applicable state law.

 

22.     Joinder. At any time after the date of this Security Agreement, one or more additional Persons may become party hereto by executing and delivering to the Administrative Agent a Joinder Agreement. Immediately upon such execution and delivery of such Joinder Agreement (and without any further action), each such additional Person will become a party to this Security Agreement as a “Grantor” and have all of the rights and obligations of a Grantor hereunder, and this Security Agreement and the Schedules hereto shall be deemed amended by such Joinder Agreement. The execution and delivery of such Joinder Agreement shall not require the consent of any other Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor as a party to this Agreement.

 

[Signature Pages Follow]

Each of the parties hereto has caused a counterpart of this Security Agreement to be duly executed and delivered as of the date first above written.

 

	
			GRANTORS:

				
			RUBY TUESDAY, INC.

			RT AIRPORT, INC.

			RT DENVER, INC.

			RT DISTRIBUTING, LLC

			RT FINANCE, INC.

			RT FLORIDA EQUITY, LLC

			RT FRANCHISE ACQUISITION, LLC

			RT JONESBORO CLUB

			RT KENTUCKY RESTAURANT HOLDINGS, LLC

			RT LAS VEGAS FRANCHISE, LLC

			RT LOUISVILLE FRANCHISE, LLC

			RT LOUISVILLE, INC.

			RT MCGHEE TYSON, LLC

			RT MINNEAPOLIS FRANCHISE, LLC

			RT MINNEAPOLIS HOLDINGS, LLC

			RT NEW HAMPSHIRE RESTAURANT HOLDINGS, LLC

			RT NEW YORK FRANCHISE, LLC

			RT OMAHA HOLDINGS, LLC

			RT ONE PERCENT HOLDINGS, INC.

			RT ONE PERCENT HOLDINGS, LLC

			RT ORLANDO, INC.

			RT PORTLAND FRANCHISE, LLC

			RT RESTAURANT SERVICES, LLC

			RT SOUTH FLORIDA, INC.

			RT SOUTHWEST FRANCHISE, LLC

			RT TAMPA, INC.

			RT WEST PALM BEACH, INC.

			RTBD, INC.

			RTGC, LLC

			RTT TEXAS, INC.

			RTTA, LP

			RTTT, LLC

			RUBY TUESDAY GC CARDS, INC.

			RUBY TUESDAY OF BRYANT, INC.

			RUBY TUESDAY OF RUSSELLVILLE, INC.

			RUBY TUESDAY, LLC1

			
	 	 
	 	By:  /s/ Rhonda Parish
	 	Name: Rhonday Parish
	 	Title:   Authorized Signatory

 

 

 

 

	 	
			RT FL GIFT CARDS, INC.

			
	 	 
	 	 
	 	By:  /s/  James Vitrano
	 	
			Name: James Vitrano

			
	 	
			Title:   Authorized Signatory

			

 

 

 

 

Accepted and agreed to as of the date first above written.

 

 

	 	UBS AG, STAMFORD BRANCH,

			as Administrative Agent
	 	 
	 	 
	 	
			By:   /s/ Houssem Daly 

			
	 	Name: Houssem Daly

			Title:   Associate Director
	 	 
	 	 
	 	By:   /s/ Craig Pearson
	 	Name: Craig Pearson

			Title:   Associate Director

 

 

 

 

SCHEDULE 2(d)

 

COMMERCIAL TORT CLAIMS

 

●     ●In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation (E.D.N.Y. No. 05-MD-01729). Ruby Tuesday, Inc. seeks damages in the amount of approximately $8,000,000 as a member of a class of plaintiffs alleging overcharges related to credit card interchange fees. The final settlement in the amount of $7.2 billion has been approved in the Eastern District of New York and the settlement is currently pending on appeal in the Court of Appeals for the Second Circuit. Receipt of any amount by the Ruby Tuesday, Inc. is dependent upon the approval of the settlement by the Second Circuit as well as the Ruby Tuesday, Inc.’s pro rata share of the total settlement amount.

 

	
			●

				
			●In re: Polyurethane Foam Antitrust Litigation (N.D.OH No. 1:10-md-02196). Ruby Tuesday, Inc. seeks damages as a member of a class of plaintiffs alleging that manufacturers of polyurethane foam and polyurethane products colluded to fix prices. The final settlement in the amount of $151 million has been approved in the Northern District of Ohio and final appeal was dismissed. Receipt of any amount by the Ruby Tuesday, Inc. is dependent upon Ruby Tuesday, Inc.’s pro rata share of the total settlement amount.

			

 

	
			●

				
			●In re Cathode Ray Tube (CRT) Antitrust Litigation (MDL No 1917, N.D.Cal No. 3:07-cv-05944). Ruby Tuesday, Inc. seeks damages as a member of a class of plaintiffs alleging that manufacturers of Cathode Ray Tubes fixed the prices of the Cathode Ray Tubes. Eight settlements in the amount of $576.75 million have been approved in the Northern District of California. Receipt of any amount by the Ruby Tuesday, Inc. is dependent upon Ruby Tuesday, Inc.’s pro rata share of the total settlement amount.

			

 

SCHEDULE 4(a)(i)

 

LEGAL NAME; STATE OF FORMATION; TAXPAYER IDENTIFICATION NUMBER;

ORGANIZATIONAL IDENTIFICATION NUMBER

 

	
			Grantor

				
			State of Formation

				
			Federal Taxpayer Identification Number

				
			Organizational Identification Number

			
	
			Ruby Tuesday, Inc.

				
			Georgia

				
			63-0475239

				
			K603038

			
	
			RTBD, Inc.

				
			Delaware

				
			46-0486505

				
			3526052

			
	
			RT Finance, Inc.

				
			Delaware

				
			20-1187242

				
			3803064

			
	
			Ruby Tuesday GC Cards, Inc.

				
			Colorado

				
			20-8654931

				
			20061521180

			
	
			RT New York Franchise, LLC

				
			Delaware

				
			63-1231154

				
			3076062

			
	
			RT Southwest Franchise, LLC

				
			Delaware

				
			63-1189715

				
			2828413

			
	
			RT Franchise Acquisition, LLC

				
			Delaware

				
			62-1811438

				
			3185630

			
	
			RT Kentucky Restaurant Holdings, LLC

				
			Delaware

				
			72-1527435

				
			3526056

			
	
			RT Florida Equity, LLC

				
			Delaware

				
			20-1187159

				
			3803063

			
	
			RTGC, LLC

				
			Colorado

				
			82-0550770

				
			20021165715

			
	
			Ruby Tuesday, LLC

				
			Delaware

				
			62-1821391

				
			3234078

			
	
			RT Las Vegas Franchise, LLC

				
			Delaware

				
			63-1214969

				
			2960934

			
	
			RT Airport, Inc.

				
			Delaware

				
			62-1793509

				
			3090041

			
	
			RT Louisville Franchise, LLC

				
			Delaware

				
			72-1377151

				
			2768759

			
	
			RT McGhee-Tyson, LLC

				
			Delaware

				
			62-1793508

				
			3089659

			
	
			RT One Percent Holdings, Inc.

				
			Delaware

				
			62-1852817

				
			3362096

			
	
			RT One Percent Holdings, LLC

				
			Delaware

				
			62-1856689

				
			3397757

			
	
			RT Minneapolis Holdings, LLC

				
			Delaware

				
			62-1857189

				
			3397085

			
	
			RT Omaha Holdings, LLC

				
			Delaware

				
			74-3028647

				
			3492566

			
	
			RT Denver, Inc.

				
			Georgia

				
			63-1192623

				
			K745041

			
	
			RT Louisville, Inc.

				
			Georgia

				
			72-1381527

				
			K723008

			
	
			RT Orlando, Inc.

				
			Georgia

				
			62-1697231

				
			K721492

			
	
			RT South Florida, Inc.

				
			Georgia

				
			62-1697232

				
			K721420

			
	
			RT Tampa, Inc.

				
			Georgia

				
			72-1380574

				
			K721495

			
	
			RT West Palm Beach, Inc.

				
			Georgia

				
			63-1196980

				
			K745037

			
	
			RT New Hampshire Restaurant Holdings, LLC

				
			Delaware

				
			72-1527438

				
			3526058

			
	
			RT Restaurant Services, LLC

				
			Delaware

				
			20-1187283

				
			3798938

			
	
			RTTA, LP

				
			Texas

				
			20-2560035

				
			800460276

			
	
			RT Distributing, LLC

				
			Tennessee

				
			20-5696096

				
			000532083

			
	
			RTTT, LLC

				
			Texas

				
			20-5389194

				
			800694161

			
	
			RTT Texas, Inc.

				
			Texas

				
			20-5382461

				
			800694157

			
	
			RT Jonesboro Club

				
			Arkansas

				
			62-1852726

				
			100195279

			
	
			Ruby Tuesday of Russellville, Inc.

				
			Arkansas

				
			26-2721601

				
			800088273

			
	
			Ruby Tuesday of Bryant, Inc.

				
			Arkansas

				
			26-4146703

				
			800088275

			
	
			RT FL Gift Cards, Inc.

				
			Florida

				
			82-1582189

				
			P17000042314

			

 

SCHEDULE 4(a)(iii)

 

CHANGES IN STRUCTURE; OTHER NAMES USED ON FEDERAL INCOME TAX RETURNS

 

RT Jonesboro Club has an alternative name of RT Jonesboro Club, Inc. on federal income tax returns

SCHEDULE 4(a)(iv)

 

TRANSACTIONS OTHER THAN IN THE ORDINARY COURSE OF BUSINESS

 

None.

SCHEDULE 4(e)

 

INTELLECTUAL PROPERTY

 

Trademarks

 

	
			Grantor

				
			Mark

				
			Registration Number

				
			Registration Date

			
	
			RTBD, Inc.

				
			FRESH TASTE. FRESH PLACE.

				
			3970360

				
			05/31/11

			
	
			RTBD, Inc.

				
			RUBY T

				
			3496050

				
			09/02/08

			
	
			RTBD, Inc.

				
			RUBY MINIS

				
			3492660

				
			08/26/08

			
	
			RTBD, Inc.

				
			WOK HAY

				
			3248303

				
			05/29/07

			
	
			RTBD, Inc.

				
			RUBY TUESDAY’S SMART EATING

				
			2906632

				
			11/30/04

			
	
			RTBD, Inc.

				
			RUBY TUESDAY SIMPLE FRESH AMERICAN DINING

				
			4021117

				
			09/06/11

			
	
			RTBD, Inc.

				
			RUBYTUEGO

				
			3409948

				
			04/08/08

			
	
			RTBD, Inc.

				
			TALLCAKE

				
			2074191

				
			06/24/97

			
	
			RTBD, Inc.

				
			RUBY TUESDAY

				
			1879012

				
			02/14/95

			
	
			RTBD, Inc.

				
			RUBY TUESDAY

				
			1110690

				
			01/02/79

			
	
			RTBD, Inc.

				
			RUBY TUESDAY

				
			1879012

				
			11/15/72

			
	
			RTBD, Inc.

				
			COLOSSAL BURGER

				
			4926344

				
			03/29/16

			

 

 

Trademark Applications

 

	
			Grantor

				
			Title

				
			Application Number

				
			Application Date

			
	
			RTBD, Inc.

				
			R TIME RUBY TUESDAY

				
			Application No. 87250918

			(Pending ITU)

				
			11/29/2016

			
	
			RTBD, Inc.

				
			R TIME

				
			Application No. 87258474

			(Pending ITU)

				
			12/06/2016

			
	
			RTBD, Inc.

				
			RUBY RELAXER

				
			Application No. 87198238

				
			10/10/2016

			

 

 

 

Copyrights

 

	
			Grantor

				
			Title

				
			Registration Number

				
			Registration Date

			
	
			Ruby Tuesday, Inc.

				
			SIMPLY FRESH

				
			TX7476591

				
			12/12/11

			

 

Patents

 

None.

SCHEDULE 4(g)

 

CHIEF EXECUTIVE OFFICES

 

Ruby Tuesday, Inc.

333 East Broadway Avenue

Maryville, TN 37804

Attention: Chief Financial Officer

Telecopy: 865-379-6817

 

 

 

SCHEDULE 4(i)

 

Deposit Accounts

 

	
			Owner

				
			Type Of Account

				
			Bank

				
			Subject to control agreement?

			[Yes/No]

				
			Reason for Exclusion from Control Requirement

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Bank of America

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Fifth Third

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Regions

				
			Yes

				
			N/A

			
	
			RTBD, Inc.

				
			DDA

				
			Regions

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Regions

				
			Yes

				
			N/A

			
	
			RTTA Texas, Inc.

				
			DDA

				
			Regions

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			1st National Bank

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Chemung Canal

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Century National

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			First Commonwealth

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			PNC

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			US Bank

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			South Carolina

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			RTBD, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday of Russellville, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			RT Jonesboro Club

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday of Bryant, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			
	
			Ruby Tuesday, Inc.

				
			DDA

				
			Wells Fargo

				
			Yes

				
			N/A

			

 

EXHIBIT 5(d)(i)

 

NOTICE

OF

GRANT OF SECURITY INTEREST

IN

COPYRIGHTS

 

United States Copyright Office

 

Ladies and Gentlemen:

 

Please be advised that pursuant to the Security Agreement dated as of May 26, 2017 (as the same may be amended, modified, restated or supplemented from time to time, the “Security Agreement”) by and among the Grantors from time to time party thereto (each an “Grantor” and collectively, the “Grantors”) and UBS AG, Stamford Branch, as Administrative Agent (the “Administrative Agent”) for the Secured Creditors referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon, the copyrights and copyright applications shown on Schedule 1 attached hereto to the Administrative Agent for the ratable benefit of the Secured Creditors. The Grantors hereby acknowledge and affirm that the rights and remedies of the Administrative Agent with respect to the continuing security interest in and continuing lien referenced hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein.

 

The undersigned Grantor and the Administrative Agent, on behalf of the Secured Creditors, hereby acknowledge and agree that the security interest in the copyrights and copyright applications set forth on Schedule 1 attached hereto (i) may only be terminated in accordance with the terms of the Security Agreement and (ii) is not to be construed as a present assignment of title to any copyright or copyright application.

 

	
			 

				
			Very truly yours,

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 
	 	[Grantor]	 
	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name:

			Title:

				
			 

			
	 	 	 	 
	
			 

				
			[Address]

				
			 

			

 

 

 

 

 

Acknowledged and Accepted:

 

	
			 

				
			UBS AG, STAMFORD BRANCH,

			as Administrative Agent

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name:

				
			 

			
	
			 

				
			 

				
			Title:

				
			 

			
	 	 	 	 
	 	[Address]	 

 

 

 

 

EXHIBIT 5(d)(ii)

 

NOTICE

OF

GRANT OF SECURITY INTEREST

IN

PATENTS

 

United States Patent and Trademark Office

 

Ladies and Gentlemen:

 

Please be advised that pursuant to the Security Agreement dated as of May 26, 2017 (as the same may be amended, modified, restated or supplemented from time to time, the “Security Agreement”) by and among the Grantors from time to time party thereto (each an “Grantor” and collectively, the “Grantors”) and UBS AG, Stamford Branch, as Administrative Agent (the “Administrative Agent”) for the Secured Creditors referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon, the patents and patent applications set forth on Schedule 1 attached hereto to the Administrative Agent for the ratable benefit of the Secured Creditors. The Grantors hereby acknowledge and affirm that the rights and remedies of the Administrative Agent with respect to the continuing security interest in and continuing lien referenced hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein.

 

The undersigned Grantor and the Administrative Agent, on behalf of the Secured Creditors, hereby acknowledge and agree that the security interest in the patents and patent applications set forth on Schedule 1 attached hereto (i) may only be terminated in accordance with the terms of the Security Agreement and (ii) is not to be construed as a present assignment of title to any patent or patent application.

 

 

	
			 

				
			Very truly yours,

				
			 

			
	 	 	 
	 	 	 
	 	[Grantor]	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name:

			Title:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	[Address]	 

 

 

 

 

	
			Acknowledged and Accepted:

				
			 

				
			 

			
	 	 	 
	 	UBS AG, STAMFORD BRANCH,

			as Administrative Agent	 
	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ 

				
			 

			
	
			 

				
			 

				
			Name:

			Title:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	[Address]	 

 

 

 

 

EXHIBIT 5(d)(iii)

 

NOTICE

OF

GRANT OF SECURITY INTEREST

IN

TRADEMARKS

 

United States Patent and Trademark Office

 

Ladies and Gentlemen:

 

Please be advised that pursuant to the Security Agreement dated as of May 26, 2017 (as the same may be amended, modified, restated or supplemented from time to time, the “Security Agreement”) by and among the Grantors from time to time party thereto (each an “Grantor” and collectively, the “Grantors”) and UBS AG, Stamford Branch, as Administrative Agent (the “Administrative Agent”) for the Secured Creditors referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon, the trademarks and trademark applications set forth on Schedule 1 attached hereto to the Administrative Agent for the ratable benefit of the Secured Creditors. The Grantors hereby acknowledge and affirm that the rights and remedies of the Administrative Agent with respect to the continuing security interest in and continuing lien referenced hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein.

 

The undersigned Grantor and the Administrative Agent, on behalf of the Secured Creditors, hereby acknowledge and agree that the security interest in the trademarks and trademark applications set forth on Schedule 1 attached hereto (i) may only be terminated in accordance with the terms of the Security Agreement and (ii) is not to be construed as a present assignment of title to any trademark or trademark application.

 

	
			 

				
			Very truly yours,

				
			 

			
	 	 	 
	 	 	 
	 	[Grantor]	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name:

			Title: 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	[Address]	 

 

 

 

 

 

Acknowledged and Accepted:

 

	
			 

				
			UBS AG, STAMFORD BRANCH,

			as Administrative Agent

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name:

			Title:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	[Address]	 

 

 

1 To be replaced in the execution version.ex10-3.htm

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT dated as of May 26, 2017 (as amended, modified, restated or supplemented from time to time, the “Pledge Agreement”) is by and among the parties identified as “Pledgors” on the signature pages hereto and such other parties as may become Pledgors hereunder after the date hereof (individually a “Pledgor,” and collectively the “Pledgors”) and UBS AG, Stamford Branch, as administrative agent (in such capacity, the “Administrative Agent”) for the Secured Creditors (defined below).

 

W I T N E S S E T H

 

WHEREAS, a credit facility has been established in favor of Ruby Tuesday, Inc., a Georgia corporation (the “Borrower”), pursuant to the terms of that certain Revolving Credit Agreement dated as of the date hereof (as amended, modified, supplemented or extended from time to time, the “Credit Agreement”) among the Borrower, the Guarantors, the Lenders from time to time party thereto and UBS AG, Stamford Branch, as Administrative Agent and Issuing Bank; and

 

WHEREAS, the Lenders have required that the Pledgors execute and deliver to the Administrative Agent, for the benefit of the Secured Creditors, this Pledge Agreement;

 

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.     Definitions.

 

(a)     Capitalized terms used and not otherwise defined herein shall have the meanings provided in the Credit Agreement.

 

(b)     As used herein, the following terms shall have the meanings assigned thereto in the UCC: Accession, Financial Asset, Proceeds and Security.

 

(c)     As used herein, the following terms shall have the meanings set forth below:

 

“Administrative Agent” has the meaning provided in the introductory paragraph hereto.

 

“Borrower” has the meaning provided in the Recitals hereof.

 

“Credit Agreement” has the meaning provided in the Recitals hereof.

 

“Non-Voting Equity” has the meaning provided in Section 2 hereof.

 

“Pledged Collateral” has the meaning provided in Section 2 hereof.

 

“Pledged Shares” has the meaning provided in Section 2 hereof.

 

“Pledgor” and “Pledgors” each has the meaning provided in the introductory paragraph hereof.

 

“Secured Creditors” has the meaning provided in the Security Agreement and “Secured Creditor” means any one of them.

 

“Secured Obligations” means, without duplication, (i) all Obligations and (b) all costs and expenses incurred in connection with enforcement and collection of the Obligations, including fees, charges and disbursements of counsel.

 

“Securities Act” has the meaning provided in Section 8 hereof.

 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that, at any time, if by reason of mandatory provisions of law, any or all of the perfection or priority of the Administrative Agent’s and the Secured Creditors’ security interest in any item or portion of the Pledged Shares is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect, at such time, in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions.

 

“Voting Equity” has the meaning provided in Section 2 hereof.

 

2.     Pledge and Grant of Security Interest. To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Pledgor hereby grants, pledges and assigns to the Administrative Agent, for the benefit of the Secured Creditors, a continuing security interest in, and a right to set-off against, any and all right, title and interest of such Pledgor in and to the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the “Pledged Collateral”):

 

Pledged Shares. (i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests owned by such Pledgor of each Domestic Subsidiary set forth on Schedule 2(a) attached hereto and (ii) sixty-six percent (66%) of the issued and outstanding shares of Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Voting Equity”) and one hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) (“Non-Voting Equity”) owned by such Pledgor of each Foreign Subsidiary directly owned by such Pledgor set forth on Schedule 2(a) attached hereto, together, in the case of any such Equity Interests constituting “certificated securities” (within the meaning of Section 8-102(a)(4) of the UCC) with the certificates, if any, representing such Equity Interests, and all options and other rights, contractual or otherwise, with respect thereto (collectively, together with the Equity Interests described in Section 2(b) below, the “Pledged Shares”), including, but not limited to, the following:

 

(A)     all shares, securities, membership interests and other Equity Interests or other property representing a dividend or other distribution on or in respect of any of the Pledged Shares, or representing a distribution or return of capital upon or in respect of the Pledged Shares, or resulting from a stock split, revision, reclassification or other exchange therefor, and any other payments of principal or interest, dividends, distributions, subscriptions, warrants, cash, securities, instruments, rights, options or other property issued to or received or receivable by the holder of, or otherwise in respect of, the Pledged Shares; and

 

(B)     without affecting the obligations of the Pledgors under any provision prohibiting such action hereunder or under the Credit Agreement, in the event of any consolidation or merger involving the issuer of any Pledged Shares and in which such issuer is not the surviving entity, all Equity Interests of the successor entity formed by or resulting from such consolidation or merger.

 

Additional Shares. (i) One hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the issued and outstanding Equity Interests owned by such Pledgor of any Person that hereafter becomes a Domestic Subsidiary and (ii) sixty-six percent (66%) (or, if less, the full amount owned by such Pledgor) of the Voting Equity and one hundred percent (100%) (or, if less, the full amount owned by such Pledgor) of the Non-Voting Equity owned by such Pledgor of any Person that hereafter becomes a Foreign Subsidiary directly owned by such Pledgor, including, without limitation, the certificates (or other agreements or instruments) representing such Equity Interests.

 

Accessions and Proceeds. All Accessions and all Proceeds of any and all of the foregoing.

 

Without limiting the generality of the foregoing, it is hereby specifically understood and agreed that a Pledgor may from time to time hereafter deliver additional certificates evidencing Equity Interests that constitute “certificated securities” (within the meaning of Section 8-102(a)(4) of the UCC) to the Administrative Agent as collateral security for the Secured Obligations. Upon delivery to the Administrative Agent, such additional Equity Interests shall be deemed to be part of the Pledged Collateral of such Pledgor and shall be subject to the terms of this Pledge Agreement whether or not Schedule 2(a) is amended to refer to such additional Equity Interests.

 

3.     Security for Secured Obligations. The security interest created hereby in the Pledged Collateral of each Pledgor constitutes continuing collateral security for all of the Secured Obligations (subject to Section 22 hereof).

 

4.     Delivery of the Pledged Collateral. Each Pledgor hereby agrees that:

 

Delivery of Certificates. Each Pledgor shall deliver to the Administrative Agent (i) simultaneously with the execution and delivery of this Pledge Agreement, all certificates, if any, representing the Pledged Shares of such Pledgor that constitute “certificated securities” (within the meaning of Section 8-102(a)(4) of the UCC) and (ii) promptly (and in any event within 10 Business Days) upon the receipt thereof by or on behalf of a Pledgor, all other certificates constituting Pledged Collateral of a Pledgor that constitute “certificated securities” (within the meaning of Section 8-102(a)(4) of the UCC). Prior to delivery to the Administrative Agent, all such certificates constituting Pledged Collateral of a Pledgor shall be held in trust by such Pledgor for the benefit of the Administrative Agent pursuant hereto. All such certificates shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form provided in Exhibit 4(a) attached hereto.

 

Additional Securities. If such Pledgor shall receive (or become entitled to receive) by virtue of its being or having been the owner of any Pledged Collateral, any (i) certificate, including without limitation, any certificate representing a dividend or distribution in connection with any increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares or membership or other Equity Interests, stock splits, spin-off or split-off, promissory notes or other instruments; (ii) option or right, whether as an addition to, substitution for, conversion of, or an exchange for, any Pledged Collateral or otherwise in respect thereof; (iii) dividends payable in securities; or (iv) distributions of securities or other Equity Interests, cash or other property in connection with a partial or total liquidation, dissolution or reduction of capital, capital surplus or paid-in surplus in each case under clause through (iv) hereof, that constitutes a “certificated security” (within the meaning of Section 8-102(a)(4) of the UCC), then such Pledgor shall accept and receive each such certificate, in trust for the benefit of the Administrative Agent, shall segregate it from such Pledgor’s other property and shall deliver it forthwith to the Administrative Agent in the exact form received together with any necessary endorsement and/or appropriate stock power duly executed in blank, substantially in the form provided in Exhibit 4(a), to be held by the Administrative Agent as Pledged Collateral and as further collateral security for the Secured Obligations.

 

Financing Statements. Each Pledgor authorizes the Administrative Agent to file one or more financing statements (with a description of the Pledged Collateral contained herein) disclosing the Administrative Agent’s security interest in the Pledged Collateral. Each Pledgor agrees to execute and deliver to the Administrative Agent such financing statements and other filings as may reasonably be requested by the Administrative Agent in order to perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor.

 

5.     Representations and Warranties. Each Pledgor hereby represents and warrants to the Administrative Agent, for the benefit of the Secured Creditors, that so long as any of the Secured Obligations remains outstanding (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) and until all of the commitments relating thereto have been terminated:

 

Authorization of Pledged Shares. The Pledged Shares owned by such Pledgor are duly authorized and validly issued, are fully paid and nonassessable and are not subject to the preemptive rights of any Person.

 

Title. Such Pledgor has good and indefeasible title to the Pledged Collateral of such Pledgor and is the legal and beneficial owner of such Pledged Collateral free and clear of any Lien, other than Permitted Liens. There exists no “adverse claim” within the meaning of Section 8-102 of the UCC with respect to the Pledged Shares of such Pledgor other than Permitted Liens.

 

Exercising of Rights. The exercise by the Administrative Agent of its rights and remedies hereunder will not violate any law or governmental regulation or any material contractual restriction binding on or affecting such Pledgor or any of its property.

 

Pledgor’s Authority. No authorization, approval or action by, and no notice or filing with any Governmental Authority or with the issuer of any Pledged Collateral or any other Person is required either (i) for the pledge made by such Pledgor or for the granting of the security interest by such Pledgor pursuant to this Pledge Agreement (except as have been already obtained) or (ii) for the exercise by the Administrative Agent or the Secured Creditors of their rights and remedies hereunder (except as may be required by the UCC or applicable foreign laws or laws affecting the offering and sale of securities).

 

Security Interest/Priority. This Pledge Agreement creates a valid security interest in favor of the Administrative Agent for the benefit of the Secured Creditors, in the Pledged Collateral owned by such Pledgor. Each Pledgor represents and warrants that all certificates, agreements or instruments representing or evidencing Pledged Shares that constitute “certificated securities” (within the meaning of Section 8-102(a)(4) of the UCC) in existence on the date hereof have been delivered to the Administrative Agent in suitable form for transfer by delivery or accompanied by duly executed instruments of transfer or assignment in blank and that the Administrative Agent has a perfected first priority security interest therein, subject only to Permitted Liens. The filing of appropriate UCC financing statements in the appropriate filing offices in the jurisdictions of organization of the applicable Grantor and the taking of possession by the Administrative Agent of the certificates representing the Pledged Shares will perfect the Administrative Agent’s security interest in the Pledged Shares consisting of certificated securities (within the meaning of Section 8-102(a)(4) of the UCC) of Domestic Subsidiaries and, when properly perfected by filing or registration, in all other Pledged Collateral represented by such Pledged Shares securing the Secured Obligations. Except as set forth in this Section 5(e), no action is necessary to perfect or otherwise protect such security interest.

 

Partnership and Membership Interests. None of the Pledged Shares consisting of partnership or limited liability company interests owned by such Pledgor (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a securities account or (v) constitutes a Security or a Financial Asset.

 

No Other Interests. As of the date hereof, such Pledgor does not own any Equity Interests in any Subsidiary other than as set forth on Schedule 2(a) attached hereto.

 

6.     Covenants. Each Pledgor hereby covenants, that so long as any of the Secured Obligations remain outstanding (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) and until all of the commitments relating thereto have been terminated, such Pledgor shall:

 

Books and Records. Mark its books and records (and shall cause the issuer of the Pledged Shares of such Pledgor to mark its books and records) to reflect the security interest granted to the Administrative Agent, for the benefit of the Secured Creditors, pursuant to this Pledge Agreement.

 

Defense of Title. Warrant and defend title to and ownership of the Pledged Collateral of such Pledgor at its own expense against the claims and demands of all other parties claiming an interest therein, keep the Pledged Collateral free from all Liens, except for Permitted Liens, and not sell, exchange, transfer, assign, lease or otherwise dispose of Pledged Collateral of such Pledgor or any interest therein, except as permitted under the Loan Documents.

 

Further Assurances. Promptly execute and deliver at its expense all further instruments and documents and take all further action that may be reasonably necessary and desirable or that the Administrative Agent may reasonably request in order to (i) perfect and protect the security interest created hereby in the Pledged Collateral of such Pledgor (including, without limitation, any and all action necessary to satisfy the Administrative Agent that the Administrative Agent has obtained a first priority perfected security interest in all Pledged Collateral, subject only to Permitted Liens); (ii) enable the Administrative Agent to exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral of such Pledgor; and (iii) otherwise effect the purposes of this Pledge Agreement, including, without limitation and if requested by the Administrative Agent, delivering to the Administrative Agent upon its request after the occurrence of an Event of Default, irrevocable proxies in respect of the Pledged Collateral of such Pledgor.

 

Amendments. Not make or consent to any amendment or other modification or waiver with respect to any of the Pledged Collateral of such Pledgor or enter into any agreement or allow to exist any restriction with respect to any of the Pledged Collateral of such Pledgor other than pursuant hereto or as may be permitted under the Credit Agreement.

 

Compliance with Securities Laws. File all reports and other information now or hereafter required to be filed by such Pledgor with the United States Securities and Exchange Commission and any other state, federal or foreign agency in connection with the ownership of the Pledged Collateral of such Pledgor.

 

Issuance or Acquisition of Equity Interests. Not, without executing and delivering, or causing to be executed and delivered, to the Administrative Agent such agreements, documents and instruments as the Administrative Agent may reasonably request for the purpose of perfecting its security interest therein, issue or acquire any Equity Interests constituting Pledged Collateral consisting of an interest in a partnership or a limited liability company that (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a security governed by Article 8 of the UCC, (iii) is an investment company security, (iv) is held in a securities account or (v) constitutes a Security or a Financial Asset.

 

Pledgors as Issuers of Pledged Shares. In the case of each Pledgor which is an issuer of Pledged Shares, such Pledgor agrees to be bound by the terms of this Agreement relating to the Pledged Collateral issued by it and will comply with such terms insofar as such terms are applicable to it. In the case of each Pledgor which is a partner, shareholder or member, as the case may be, in a partnership, limited liability company or other entity, such Pledgor hereby consents to the extent required by the applicable organizational document to the pledge by each other Pledgor, pursuant to the terms hereof, of the Pledged Shares in such partnership, limited liability company or other entity and, upon the occurrence and during the continuance of an Event of Default, to the transfer of such Pledged Shares to the Administrative Agent or its nominee and to the substitution of the Administrative Agent or its nominee as a substituted partner, shareholder or member in such partnership, limited liability company or other entity with all the rights, powers and duties of a general partner, limited partner, shareholder or member, as the case may be.

 

7.     Advances by Secured Creditors. On failure of any Pledgor to perform any of the covenants and agreements contained herein which constitutes an Event of Default and while such Event of Default is continuing, the Administrative Agent may, at its sole option and in its sole discretion, upon prior notice to the Pledgors, perform the same and in so doing may expend such sums as the Administrative Agent may deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all other expenditures that the Administrative Agent or the Secured Creditors may make for the protection of the security hereof or may be compelled to make by operation of law. All such sums and amounts so expended shall be repayable by the Pledgors on a joint and several basis (subject to Section 22 hereof) promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are expended at the Default Interest rate. No such performance of any covenant or agreement by the Administrative Agent or the Secured Creditors on behalf of any Pledgor, and no such advance or expenditure therefor, shall relieve the Pledgors of any default under the terms of this Pledge Agreement, the Loan Documents or any other documents relating to the Secured Obligations.

 

8.     Remedies.

 

(a)     General Remedies. Upon the occurrence of an Event of Default and during the continuation thereof, the Administrative Agent and the Secured Creditors shall have, in addition to the rights and remedies provided herein, in the Loan Documents, in any other documents relating to the Secured Obligations, or by law (including, without limitation, levy of attachment and garnishment), the rights and remedies of a secured party under the Uniform Commercial Code of the jurisdiction applicable to the affected Pledged Collateral.

 

(b)     Sale of Pledged Collateral. Upon the occurrence of an Event of Default and during the continuation thereof, without limiting the generality of this Section 8 and without notice, the Administrative Agent may, in its sole discretion, sell or otherwise dispose of or realize upon the Pledged Collateral, or any part thereof, in one or more parcels, at public or private sale, at any exchange or broker’s board or elsewhere, at such price or prices and on such other terms as the Administrative Agent may deem commercially reasonable, for cash, credit or for future delivery or otherwise in accordance with applicable law. To the extent permitted by law, any Secured Creditor may in such event, bid for the purchase of such securities. Each Pledgor agrees that, to the extent notice of sale shall be required by law and has not been waived by such Pledgor, any requirement of reasonable notice shall be met if notice, specifying the place of any public sale or the time after which any private sale is to be made, is personally served on or mailed, postage prepaid, to such Pledgor, in accordance with the notice provisions of Section 11.1 of the Credit Agreement at least ten days before the time of such sale. The Administrative Agent shall not be obligated to make any sale of Pledged Collateral of such Pledgor regardless of notice of sale having been given. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(c)     Private Sale. Upon the occurrence of an Event of Default and during the continuation thereof, the Pledgors recognize that the Administrative Agent may be unable or deem it impracticable to effect a public sale of all or any part of the Pledged Shares or any of the securities constituting Pledged Collateral and that the Administrative Agent may, therefore, determine to make one or more private sales of any such Pledged Collateral to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such Pledged Collateral for their own account, for investment and not with a view to the distribution or resale thereof. Each Pledgor acknowledges and agrees that any such private sale may be at prices and on other terms less favorable than the prices and other terms that might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale shall not, by reason of being such a private sale, be deemed not to have been made in a commercially reasonable manner and that the Administrative Agent shall have no obligation to delay sale of any such Pledged Collateral for the period of time necessary to permit the issuer of such Pledged Collateral to register such Pledged Collateral for public sale under the Securities Act or under applicable state securities laws. Each Pledgor further acknowledges and agrees that any offer to sell such Pledged Collateral that has been publicly advertised on a bona fide basis in a newspaper or other publication of general circulation in the financial community of New York, New York (to the extent that such offer may be advertised without prior registration under the Securities Act of 1933, as amended (the “Securities Act”)) shall be deemed to involve a “public sale” under the UCC, notwithstanding that such sale may not constitute a “public offering” under the Securities Act, and the Administrative Agent may, in such event, bid for the purchase of such Pledged Collateral.

 

(d)     [Reserved]

 

(e)     Deficiency. In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Administrative Agent or the Secured Creditors are legally entitled, the Pledgors shall be jointly and severally liable (subject to Section 22 hereof) for the deficiency, together with interest thereon at the Default Interest rate, together with the costs of collection and attorneys’ fees and expenses. Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Pledgors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto.

 

9.     Rights of the Administrative Agent.

 

(a)     Power of Attorney. Each Pledgor hereby designates and appoints the Administrative Agent, on behalf of the Secured Creditors, and each of its designees or agents, as attorney-in-fact of such Pledgor, irrevocably and with power of substitution, with authority to take any or all of the following actions upon the occurrence and during the continuation of an Event of Default:

 

(i)     to demand, collect, settle, compromise and adjust, and give discharges and releases concerning the Pledged Collateral, all as the Administrative Agent may deem appropriate;

 

(ii)     to commence and prosecute any actions at any court for the purposes of collecting any of the Pledged Collateral and enforcing any other right in respect thereof;

 

(iii)     to defend, settle or compromise any action brought and, in connection therewith, give such discharge or release as the Administrative Agent may deem appropriate;

 

(iv)     to pay or discharge taxes, liens, security interests or other encumbrances levied or placed on or threatened against the Pledged Collateral;

 

(v)     to direct any parties liable for any payment in connection with any of the Pledged Collateral to make payment of any and all monies due and to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct;

 

(vi)     to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in respect of or arising out of any Pledged Collateral;

 

(vii)     to sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other documents relating to the Pledged Collateral;

 

(viii)     to execute and deliver all assignments, conveyances, statements, financing statements, renewal financing statements, security and pledge agreements, affidavits, notices and other agreements, instruments and documents that the Administrative Agent may deem appropriate in order to perfect and maintain the security interests and liens granted in this Pledge Agreement and in order to fully consummate all of the transactions contemplated therein;

 

(ix)     to exchange any of the Pledged Collateral or other property upon any merger, consolidation, reorganization, recapitalization or other readjustment of the issuer thereof and, in connection therewith, deposit any of the Pledged Collateral with any committee, depository, transfer agent, registrar or other designated agency upon such terms as the Administrative Agent may deem appropriate;

 

(x)     to vote for a shareholder or member resolution, or to sign an instrument in writing, sanctioning the transfer of any or all of the Pledged Collateral into the name of the Administrative Agent or one or more of the Secured Creditors or into the name of any transferee to whom the Pledged Collateral or any part thereof may be sold pursuant to Section 8 hereof; and

 

(xi)     to do and perform all such other acts and things as the Administrative Agent may deem appropriate or convenient in connection with the Pledged Collateral.

 

This power of attorney is a power coupled with an interest and shall be irrevocable for so long as any of the Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) shall remain outstanding and until all of the commitments relating thereto shall have been terminated. The Administrative Agent shall be under no duty to exercise or withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Administrative Agent in this Pledge Agreement, and shall not be liable for any failure to do so or any delay in doing so. The Administrative Agent shall not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful misconduct. This power of attorney is conferred on the Administrative Agent solely to protect, preserve and realize upon its security interest in the Pledged Collateral. To the extent any Secured Creditor obtains or seeks to obtain any benefit from this Pledge Agreement or asserts or claims any interest in the Pledged Collateral, it shall be deemed to have agreed to appoint the Administrative Agent as its attorney-in-fact with all rights and powers conferred to the Administrative Agent under this Pledge Agreement.

 

(b)     Assignment by the Administrative Agent. The Administrative Agent may from time to time assign the Pledged Collateral and any portion thereof to a successor agent in accordance with the Credit Agreement, and the assignee shall be entitled to all of the rights and remedies of the Administrative Agent under this Pledge Agreement in relation thereto.

 

(c)     The Administrative Agent’s Duty of Care. Other than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while being held by the Administrative Agent hereunder and to account for all proceeds thereof, the Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that the Pledgors shall be responsible for preservation of all rights in the Pledged Collateral, and the Administrative Agent shall be relieved of all responsibility for the Pledged Collateral upon surrendering it or tendering the surrender of it to the Pledgors. The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if such Pledged Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property, which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it being understood that the Administrative Agent shall not have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Pledged Collateral, whether or not the Administrative Agent has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any of the Pledged Collateral.

 

(d)     Voting Rights in Respect of the Pledged Collateral.

 

So long as no Event of Default shall have occurred and be continuing, each Pledgor may exercise any and all voting and other consensual rights pertaining to the Pledged Collateral of such Pledgor or any part thereof for any purpose not inconsistent with the terms of this Pledge Agreement or the other Loan Documents; and

 

Upon the occurrence and during the continuance of an Event of Default and upon notice to the applicable Pledgor from the Administrative Agent, all rights of a Pledgor to exercise the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to paragraph (i) of this subsection shall cease and all such rights shall thereupon become vested in the Administrative Agent, which shall then have the sole right to exercise such voting and other consensual rights.

 

(e)     Dividend Rights in Respect of the Pledged Collateral.

 

So long as no Event of Default shall have occurred and be continuing and subject to Section 4(b) hereof, each Pledgor may receive and retain any and all dividends and distributions (other than stock dividends and other dividends and distributions constituting Pledged Collateral addressed hereinabove) or interest paid in respect of the Pledged Collateral to the extent they are allowed under the Loan Documents.

 

Upon the occurrence and during the continuance of an Event of Default and notice by the Administrative Agent to the applicable Pledgor:

 

(A)     all rights of a Pledgor to receive the dividends, distributions and interest payments that it would otherwise be authorized to receive and retain pursuant to paragraph (i) of this subsection shall cease and all such rights shall thereupon be vested in the Administrative Agent, which shall then have the sole right to receive and hold as Pledged Collateral such dividends, distributions and interest payments; and

 

(B)     all dividends and interest payments that are received by a Pledgor contrary to the provisions of paragraph (A) of this subsection shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other property or funds of such Pledgor, and shall be forthwith paid over to the Administrative Agent as Pledged Collateral in the exact form received, to be held by the Administrative Agent as Pledged Collateral and as further collateral security for the Secured Obligations.

 

(f)     Release of Pledged Collateral. To the extent permitted by and in accordance with the Credit Agreement, the Administrative Agent may release any of the Pledged Collateral from this Pledge Agreement or may substitute any of the Pledged Collateral for other Pledged Collateral without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Pledge Agreement as to any Pledged Collateral not expressly released or substituted, and this Pledge Agreement shall continue as a first priority lien on all Pledged Collateral not expressly released or substituted. Notwithstanding the foregoing, the Administrative Agent shall release any Lien on any Pledged Collateral granted to or held by the Administrative Agent under this Pledge Agreement (i) upon the termination of the Pledge Agreement in accordance with the terms hereof, (ii) that is transferred or to be transferred (other than a transfer to another Pledgor) as part of or in connection with any transfer or other disposition permitted under the Loan Documents, or (iii) as approved in accordance with the Credit Agreement.

 

10.     Application of Proceeds. After the occurrence of an Event of Default, any payments hereunder and any proceeds of the Pledged Collateral, when received by the Administrative Agent or any of the Secured Creditors in cash or its equivalent, will be applied in reduction of the Secured Obligations in the order set forth in Section 9.2 of the Credit Agreement, and each Pledgor irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that the Administrative Agent shall have the continuing and exclusive right to apply and reapply any and all such payments and proceeds in the Administrative Agent’s sole discretion, notwithstanding any entry to the contrary upon its books and records.

 

11.     Continuing Agreement.

 

(a)     This Pledge Agreement shall be a continuing agreement in every respect and shall remain in full force and effect so long as any of the Secured Obligations (other than (x) Hedging Agreements entered into with a Hedging Bank, (y) Treasury Management Agreements entered into with Treasury Management Banks, or (z) contingent indemnification obligations or contingent expense reimbursement, indemnification, yield protection or tax gross-up obligations, in each case for which no claim has been made) remains outstanding and until all of the commitments relating thereto have been terminated. Upon payment or other satisfaction of all Secured Obligations and termination of all commitments relating thereto, this Pledge Agreement shall be automatically terminated and the Administrative Agent and the Secured Creditors shall, upon the request and at the expense of the Pledgors, forthwith release all of its liens and security interests hereunder, shall return all certificates or instruments pledged hereunder and shall execute and deliver all UCC termination statements and/or other documents reasonably requested by the Pledgors evidencing such termination. Notwithstanding the foregoing, all releases and indemnities provided hereunder shall survive termination of this Pledge Agreement.

 

(b)     This Pledge Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Secured Creditor as a preference, fraudulent conveyance or otherwise under any bankruptcy, insolvency or similar law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by the Administrative Agent or any Secured Creditor in defending and enforcing such reinstatement shall be deemed to be included as a part of the Secured Obligations.

 

12.     Amendments and Waivers. This Pledge Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated except as set forth in Section 11.2 of the Credit Agreement.

 

13.     Successors in Interest. This Pledge Agreement shall create a continuing security interest in the Pledged Collateral and shall be binding upon each Pledgor, its successors and assigns, and shall inure, together with the rights and remedies of the Administrative Agent and the Secured Creditors hereunder, to the benefit of the Administrative Agent and the Secured Creditors and their successors and permitted assigns; provided, however, that, except as provided in the Credit Agreement, none of the Pledgors may assign its rights or delegate its duties hereunder without the prior written consent of the requisite Lenders under the Credit Agreement. To the fullest extent permitted by law, each Pledgor hereby releases the Administrative Agent and each Secured Creditor, and their respective successors and assigns, from any liability for any act or omission relating to this Pledge Agreement or the Pledged Collateral, except for any liability arising from the gross negligence or willful misconduct of the Administrative Agent or such holder, or their respective Related Parties.

 

14.     Notices. All notices required or permitted to be given under this Pledge Agreement shall be given as provided in Section 11.1 of the Credit Agreement.

 

15.     Counterparts. This Pledge Agreement may be executed in any number of counterparts, each of which were so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Pledge Agreement to produce or account for more than one such counterpart.

 

16.     Headings. The headings of the sections and subsections hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Pledge Agreement.

 

17.     Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial. The terms of Sections 11.5 and 11.6 of the Credit Agreement with respect to governing law, submission to jurisdiction, venue and waiver of jury trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.

 

18.     Severability. If any provision of this Pledge Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

 

19.     Entirety. This Pledge Agreement, the other Loan Documents and the other documents relating to the Secured Obligations represent the entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to the Secured Obligations, or the transactions contemplated herein and therein.

 

20.     Survival. All representations and warranties of the Pledgors hereunder shall survive the execution and delivery of this Pledge Agreement, the other Loan Documents and the other documents relating to the Secured Obligations, the delivery of the Revolving Credit Notes and the extension of credit thereunder or in connection therewith.

 

21.     Other Security. To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Pledged Collateral (including, without limitation, real and other personal property owned by a Pledgor), or by a guarantee, endorsement or property of any other Person, then to the maximum extent permitted by applicable law the Administrative Agent shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence and during the continuance of any Event of Default, and the Administrative Agent shall have the right, in its sole discretion, to determine which rights, security, liens, security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or any of the rights of the Administrative Agent or the Secured Creditors under this Pledge Agreement, under any of the other Loan Documents or under any other document relating to the Secured Obligations.

 

22.     Joint and Several Obligations of Pledgors.

 

(a)     Each of the Pledgors is accepting joint and several liability hereunder in consideration of the financial accommodation to be provided by the Secured Creditors, for the mutual benefit, directly and indirectly, of each of the Pledgors and in consideration of the undertakings of each of the Pledgors to accept joint and several liability for the obligations of each of them.

 

(b)     Each of the Pledgors jointly and severally hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Pledgors with respect to the payment and performance of all of the Secured Obligations arising under this Pledge Agreement, the other Loan Documents and any other documents relating to the Secured Obligations, it being the intention of the parties hereto that all the Secured Obligations shall be the joint and several obligations of each of the Pledgors without preferences or distinction among them.

 

(c)     Notwithstanding any provision to the contrary contained herein, in any other of the Loan Documents or in any other documents relating to the Secured Obligations, the obligations of each Pledgor under the Credit Agreement, the other Loan Documents and the documents relating to the Secured Obligations shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under Debtor Relief Laws or any comparable provisions of any applicable state law.

 

23.     Joinder. At any time after the date of this Pledge Agreement, one or more additional Persons may become party hereto by executing and delivering to the Administrative Agent a Joinder Agreement. Immediately upon such execution and delivery of such Joinder Agreement (and without any further action), each such additional Person will become a party to this Pledge Agreement as a “Pledgor” and have all of the rights and obligations of a Pledgor hereunder, and this Pledge Agreement and the Schedules hereto shall be deemed amended by such Joinder Agreement. The execution and delivery of such Joinder Agreement shall not require the consent of any other Pledgor hereunder. The rights and obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the addition of any new Pledgor as a party to this Agreement.

 

[Signature Pages Follow]

Each of the parties hereto has caused a counterpart of this Pledge Agreement to be duly executed and delivered as of the date first above written.

 

	
			PLEDGORS:

				
			RUBY TUESDAY, INC.

			RT AIRPORT, INC.

			RT DENVER, INC.

			RT DISTRIBUTING, LLC

			RT FINANCE, INC.

			RT FLORIDA EQUITY, LLC

			RT FRANCHISE ACQUISITION, LLC

			RT JONESBORO CLUB

			
	 	
			RT KENTUCKY RESTAURANT HOLDINGS, LLC

			RT LAS VEGAS FRANCHISE, LLC

			RT LOUISVILLE FRANCHISE, LLC

			RT LOUISVILLE, INC.

			RT MCGHEE TYSON, LLC

			RT MINNEAPOLIS FRANCHISE, LLC

			RT MINNEAPOLIS HOLDINGS, LLC

			RT NEW HAMPSHIRE RESTAURANT HOLDINGS, LLC

			RT NEW YORK FRANCHISE, LLC

			RT OMAHA HOLDINGS, LLC

			RT ONE PERCENT HOLDINGS, INC.

			RT ONE PERCENT HOLDINGS, LLC

			RT ORLANDO, INC.

			RT PORTLAND FRANCHISE, LLC

			RT RESTAURANT SERVICES, LLC

			RT SOUTH FLORIDA, INC.

			RT SOUTHWEST FRANCHISE, LLC

			RT TAMPA, INC.

			RT WEST PALM BEACH, INC.

			RTBD, INC.

			RTGC, LLC

			RTT TEXAS, INC.

			RTTA, LP

			RTTT, LLC

			RUBY TUESDAY GC CARDS, INC.

			RUBY TUESDAY OF BRYANT, INC.

			RUBY TUESDAY OF RUSSELLVILLE, INC.

			RUBY TUESDAY, LLC1

			

 

	 	 

	 	By:  /s/ Rhonda Parish
	 	Name: Rhonda Parish

			Title:   Authorized Signatory

 

 

 

 

	 	
			 

			RT FL GIFT CARDS, INC.

			
	 	 
	 	By:  /s/ James Vitrano
	 	Name: James Vitrano

			Title:  Authorized Signatory

 

 

 

 

Accepted and agreed to as of the date first above written.

 

	
			 

				
			UBS AG, STAMFORD BRANCH,

			as Administrative Agent

			
	
			 

				
			 

			
	
			 

				
			 

			
	
			 

				
			By:  /s/ Houssem Daly 

			
	
			 

				
			Name: Houssem Daly

			Title:   Associate Director

			
	 	 
	 	 
	 	 
	 	By:  /s/  Craig Pearson
	 	
			Name: Craig Pearson

			
			Title:   Associate Director

			

			

 

 

 

 

Schedule 2(a)

 

EQUITY INTERESTS

 

	
			Pledgor

				
			Issuer

				
			Number of Shares/Units

				
			Certificate Number

				
			Percentage Ownership

			
	
			Ruby Tuesday, Inc.

				
			RTBD, Inc.

				
			100 shares

				
			2

				
			100% - Ruby Tuesday, Inc.

			
	
			RTBD, Inc.

				
			RT Finance, Inc.

				
			N/A

				
			N/A

				
			100% - RTBD, Inc.

			
	
			RTGC, LLC

				
			Ruby Tuesday GC Cards, Inc.

				
			N/A

				
			N/A

				
			100% - RTGC, LLC

			
	
			Ruby Tuesday, Inc.

				
			RT Tampa, Inc.

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT Orlando, Inc.

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT South Florida, Inc.

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT West Palm Beach, Inc.

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT One Percent Holdings, Inc.

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT New York Franchise, LLC

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			RT Franchise Acquisition, LLC /

			RT One Percent Holdings, Inc.

				
			RT Southwest Franchise, LLC

				
			N/A

				
			N/A

				
			1% - RT One Percent Holdings, Inc.

			99%- RT Franchise Acquisition, LLC

			
	
			RTBD, Inc.

				
			RT Franchise Acquisition, LLC

				
			N/A

				
			N/A

				
			100% - RTBD, Inc.

			
	
			RTBD, Inc.

				
			RT Kentucky Restaurant Holdings, LLC

				
			N/A

				
			N/A

				
			100% - RTBD, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT Florida Equity, LLC

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RTGC, LLC

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			Ruby Tuesday, LLC

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc. /

			RT One Percent Holdings, Inc.

				
			RT Las Vegas Franchise, LLC

				
			N/A

				
			N/A

				
			99% - RT One Percent Holdings, Inc.

			1% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc. /

			RT Minneapolis Holdings, LLC

				
			RT Minneapolis Franchise, LLC

				
			N/A

				
			N/A

				
			50% - Ruby Tuesday, Inc.

			50% - RT Minneapolis Holdings, LLC

			
	
			Ruby Tuesday, Inc. /

			RT One Percent Holdings, Inc.

				
			RT Portland Franchise, LLC

				
			N/A

				
			N/A

				
			99% - RT One Percent Holdings, Inc.

			1% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT Airport, Inc.

				
			100 shares

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT One Percent Holdings, LLC

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT Denver, Inc.

				
			100 shares

				
			1

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT Louisville, Inc.

				
			100 shares

				
			1

				
			100% - Ruby Tuesday, Inc.

			
	
			Ruby Tuesday, Inc.

				
			RT Restaurant Services, LLC

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			RT Franchise Acquisition, LLC /

			RT Louisville, Inc.

				
			RT Louisville Franchise, LLC

				
			N/A

				
			N/A

				
			99% - RT Franchise Acquisition, LLC

			1% - RT Louisville, Inc.

			
	
			Ruby Tuesday, Inc. /

			RT Airport, Inc.

				
			RT McGhee Tyson, LLC

				
			N/A

				
			N/A

				
			99% - Ruby Tuesday, Inc.

			1% - RT Airport, Inc.

			
	
			RTBD, Inc.

				
			RT Minneapolis Holdings, LLC

				
			N/A

				
			N/A

				
			100% - RTBD, Inc.

			
	
			RTBD, Inc.

				
			RT Omaha Holdings, LLC

				
			N/A

				
			N/A

				
			100% - RTBD, Inc.

			
	
			RTBD, Inc.

				
			RT New Hampshire Restaurant Holdings, LLC

				
			N/A

				
			N/A

				
			100% - RTBD, Inc.

			
	
			RTBD, Inc. /

			RT Franchise Acquisition, LLC

				
			RTTA, LP

				
			N/A

				
			N/A

				
			1% - RTBD, Inc.

			(Gen. Partner)

			99% - RT Franchise Acquisition, LLC

			
	
			Ruby Tuesday, Inc.

				
			RT Distributing, LLC

				
			N/A

				
			N/A

				
			100% - Ruby Tuesday, Inc.

			
	
			RTTT, LLC

				
			RTT Texas, Inc.

				
			100 shares

				
			1

				
			100% - RTTT, LLC

			
	
			RT Franchise Acquisition, LLC

				
			RTTT, LLC

				
			N/A

				
			N/A

				
			100% - RT Franchise Acquisition, LLC

			
	
			RT Western Missouri Franchise, LLC

				
			RT Jonesboro Club

				
			N/A

				
			N/A

				
			100% - RT Western Missouri Franchise, LLC

			
	
			RT Western Missouri Franchise, LLC

				
			Ruby Tuesday of Bryant, Inc.

				
			N/A

				
			N/A

				
			100% - RT Western Missouri Franchise, LLC

			
	
			RT Western Missouri Franchise, LLC

				
			Ruby Tuesday of Russellville, Inc.

				
			N/A

				
			N/A

				
			100% - RT Western Missouri Franchise, LLC

			
	
			Ruby Tuesday, Inc.

				
			RT FL Gift Cards, Inc.

				
			100 shares

				
			1

				
			100% - Ruby Tuesday, Inc.

			

 

EXHIBIT 4(a)

 

Form of Irrevocable Stock Power

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to the following shares of capital stock of ____________________, a ____________ ____________:

 

Number of Shares     Certificate Number

 

and irrevocably appoints __________________________________ its agent and attorney-in-fact to transfer all or any part of such capital stock and to take all necessary and appropriate action to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to act for him.

 

	
			 

				
			[HOLDER]

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 

				
			 

			
	
			 

				
			 

				
			Name:

				
			 

			
	
			 

				
			 

				
			Title: 

				
			 

			

 

 

 

1 to be dropped into the execution version.

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