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APPLEBEE'S INTERNATIONAL, INC. | BANK ONE, NA | BANK OF AMERICA, N.A. | FLEET NATIONAL BANK | SUNTRUST BANK | U.S. BANK NATIONAL ASSOCIATION. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
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EXECUTION COPY
3-YEAR REVOLVING CREDIT AGREEMENT
DATED AS OF NOVEMBER 5, 2001
AMONG
APPLEBEE'S INTERNATIONAL, INC.
as the Borrower
THE LENDERS FROM TIME TO TIME PARTIES HERETO,
BANK ONE, NA (MAIN OFFICE CHICAGO),
as Administrative Agent
and
BANK OF AMERICA, N.A. and FLEET NATIONAL BANK,
as Documentation Agents
and
SUNTRUST BANK and U.S. BANK NATIONAL ASSOCIATION,
as Syndication Agents
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BANC ONE CAPITAL MARKETS, INC.,
as Sole Lead Arranger and Sole Book Runner
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SIDLEY AUSTIN BROWN & WOOD
Bank One Plaza
10 South Dearborn Street
Chicago, Illinois 60603
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TABLE OF CONTENTS
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ARTICLE I DEFINITIONS............................................................................................1
1.1. Certain Defined Terms.......................................................................1
1.2. References.................................................................................18
ARTICLE II THE CREDITS..........................................................................................19
2.1. Commitment.................................................................................19
2.2. Swing Line Loans...........................................................................19
2.2.1. Amount of Swing Line Loans........................................................19
2.2.2. Borrowing Notice..................................................................19
2.2.3. Making of Swing Line Loans........................................................20
2.2.4. Repayment of Swing Line Loans.....................................................20
2.3. Required Payments; Termination.............................................................21
2.3.1. Required Payments.................................................................21
2.3.2. Termination.......................................................................21
2.4. Ratable Loans..............................................................................21
2.5. Types of Advances..........................................................................21
2.6. Commitment Fee; Reductions in Aggregate Commitment; Increases in Aggregate Commitment......21
2.6.1. Commitment Fee....................................................................21
2.6.2. Reductions in Aggregate Commitment................................................21
2.6.3. Increase of Aggregate Commitment..................................................22
2.7. Minimum Amount of Each Advance.............................................................24
2.8. Optional Principal Payments................................................................24
2.9. Method of Selecting Types and Interest Periods for New Advances; Method of Borrowing.......25
2.9.1. Method of Selecting Types and Interest Periods for New Advances...................25
2.9.2. Method of Borrowing...............................................................25
2.10. Conversion and Continuation of Outstanding Advances........................................25
2.11. Changes in Interest Rate, etc..............................................................26
2.12. Rates Applicable After Default.............................................................26
2.13. Method of Payment..........................................................................27
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2.14. Noteless Agreement; Evidence of Indebtedness...............................................27
2.15. Telephonic Notices.........................................................................28
2.16. Interest Payment Dates; Interest and Fee Basis.............................................28
2.17. Notification of Advances, Interest Rates, Prepayments and Commitment Reductions............29
2.18. Lending Installations......................................................................29
2.19. Non-Receipt of Funds by the Administrative Agent...........................................29
2.20. Replacement of Lender......................................................................30
2.21. Facility LCs...............................................................................30
2.21.1. Issuance; Transitional Facility LCs...............................................30
2.21.2. Participations....................................................................31
2.21.3. Notice............................................................................31
2.21.4. LC Fees...........................................................................32
2.21.5. Administration; Reimbursement by Lenders..........................................32
2.21.6. Reimbursement by Borrower.........................................................33
2.21.7. Obligations Absolute..............................................................33
2.21.8. Actions of LC Issuers.............................................................34
2.21.9. Indemnification...................................................................34
2.21.10. Lenders' Indemnification..........................................................35
2.21.11. Facility LC Collateral Account....................................................35
2.21.12. Rights as a Lender................................................................35
ARTICLE III YIELD PROTECTION; TAXES.............................................................................35
3.1. Yield Protection...........................................................................35
3.2. Changes in Capital Adequacy Regulations....................................................36
3.3. Availability of Types of Advances..........................................................37
3.4. Funding Indemnification....................................................................37
3.5. Taxes......................................................................................37
3.6. Lender Statements; Survival of Indemnity...................................................39
ARTICLE IV CONDITIONS PRECEDENT.................................................................................40
4.1. Initial Credit Extension...................................................................40
4.2. Each Credit Extension......................................................................41
ARTICLE V REPRESENTATIONS AND WARRANTIES........................................................................42
5.1. Existence and Standing.....................................................................42
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5.2. Authorization and Validity.................................................................42
5.3. No Conflict; Government Consent............................................................42
5.4. Financial Statements.......................................................................43
5.5. Material Adverse Change....................................................................43
5.6. Taxes......................................................................................43
5.7. Litigation and Contingent Obligations......................................................44
5.8. Subsidiaries...............................................................................44
5.9. Accuracy of Information....................................................................44
5.10. Regulation U...............................................................................44
5.11. Material Agreements........................................................................44
5.12. Compliance With Laws.......................................................................45
5.13. Ownership of Properties....................................................................45
5.14. ERISA; Foreign Pension Matters.............................................................45
5.15. Plan Assets; Prohibited Transactions.......................................................45
5.16. Environmental Matters......................................................................45
5.17. Investment Company Act.....................................................................46
5.18. Public Utility Holding Company Act.........................................................46
5.19. Insurance..................................................................................46
ARTICLE VI COVENANTS............................................................................................46
6.1. Financial Reporting........................................................................46
6.2. Use of Proceeds............................................................................48
6.3. Notice of Default..........................................................................48
6.4. Conduct of Business........................................................................48
6.5. Taxes......................................................................................49
6.6. Insurance..................................................................................49
6.7. Compliance with Laws.......................................................................49
6.8. Maintenance of Properties..................................................................49
6.9. Inspection; Keeping of Books and Records...................................................49
6.10. Addition of Guarantors.....................................................................49
6.11. Dividends and Distributions................................................................50
6.12. Capital Expenditures.......................................................................50
6.13. Merger.....................................................................................50
6.14. Sale of Assets.............................................................................50
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6.15. Investments and Acquisitions...............................................................51
6.16. Liens......................................................................................53
6.17. Transactions with Affiliates...............................................................54
6.18. Financial Contracts........................................................................54
6.19. ERISA......................................................................................54
6.20. Environmental Compliance...................................................................55
6.21. Financial Covenants........................................................................55
6.21.1. Maximum Leverage Ratio............................................................55
6.21.2. Minimum Fixed Charge Coverage Ratio...............................................55
6.21.3. Maximum Ratio of Indebtedness to Total Capitalization.............................55
ARTICLE VII DEFAULTS............................................................................................55
7.1. Breach of Representations or Warranties....................................................55
7.2. Failure to Make Payments When Due..........................................................55
7.3. Breach of Covenants........................................................................56
7.4. Other Breaches.............................................................................56
7.5. Default as to Other Indebtedness...........................................................57
7.6. Voluntary Bankruptcy; Appointment of Receiver; Etc.........................................57
7.7. Involuntary Bankruptcy; Appointment of Receiver; Etc.......................................57
7.8. Custody or Control of Property.............................................................57
7.9. Judgments..................................................................................58
7.10. Unfunded Liabilities.......................................................................58
7.11. Other ERISA Liabilities....................................................................58
7.12. Environmental Matters......................................................................58
7.13. Change in Control..........................................................................58
7.14. The Guaranty...............................................................................58
7.15. The Loan Documents.........................................................................59
ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES.....................................................59
8.1. Acceleration...............................................................................59
8.2. Amendments.................................................................................60
8.3. Preservation of Rights.....................................................................61
ARTICLE IX GENERAL PROVISIONS...................................................................................61
9.1. Survival of Representations................................................................61
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9.2. Governmental Regulation....................................................................61
9.3. Headings...................................................................................62
9.4. Entire Agreement...........................................................................62
9.5. Several Obligations; Benefits of this Agreement............................................62
9.6. Expenses; Indemnification..................................................................62
9.7. Numbers of Documents.......................................................................63
9.8. Accounting.................................................................................63
9.9. Severability of Provisions.................................................................63
9.10. Nonliability of Lenders....................................................................64
9.11. Confidentiality............................................................................64
9.12. Lenders Not Utilizing Plan Assets..........................................................64
9.13. Nonreliance................................................................................64
9.14. Disclosure.................................................................................65
9.15. Subordination of Intercompany Indebtedness.................................................65
ARTICLE X THE AGENTS............................................................................................66
10.1. Appointment; Nature of Relationship........................................................66
10.2. Powers.....................................................................................66
10.3. General Immunity...........................................................................67
10.4. No Responsibility for Loans, Recitals, etc.................................................67
10.5. Action on Instructions of Lenders..........................................................67
10.6. Employment of Agents and Counsel...........................................................67
10.7. Reliance on Documents; Counsel.............................................................68
10.8. Agents' Reimbursement and Indemnification..................................................68
10.9. Notice of Default..........................................................................68
10.10. Rights as a Lender.........................................................................69
10.11. Lender Credit Decision.....................................................................69
10.12. Successor Agents...........................................................................69
10.13. Agent and Arranger Fees....................................................................70
10.14. Delegation to Affiliates...................................................................70
10.15. Release of Guarantors......................................................................70
ARTICLE XI SETOFF; RATABLE PAYMENTS.............................................................................70
11.1. Setoff.....................................................................................70
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11.2. Ratable Payments...........................................................................71
ARTICLE XII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS...................................................71
12.1. Successors and Assigns; Designated Lenders.................................................71
12.1.1. Successors and Assigns............................................................71
12.1.2. Designated Lenders................................................................72
12.2. Participations.............................................................................73
12.2.1. Permitted Participants; Effect....................................................73
12.2.2. Voting Rights.....................................................................73
12.2.3. Benefit of Certain Provisions.....................................................74
12.3. Assignments................................................................................74
12.3.1. Permitted Assignments.............................................................74
12.3.2. Effect; Effective Date............................................................74
12.3.3. The Register......................................................................75
12.4. Dissemination of Information...............................................................75
12.5. Tax Treatment..............................................................................76
ARTICLE XIII NOTICES............................................................................................76
13.1. Notices....................................................................................76
13.2. Change of Address..........................................................................76
ARTICLE XIV COUNTERPARTS........................................................................................76
ARTICLE XV CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.........................................77
15.1. CHOICE OF LAW..............................................................................77
15.2. CONSENT TO JURISDICTION....................................................................77
15.3. WAIVER OF JURY TRIAL.......................................................................77
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EXHIBITS
Exhibit A-1....... - Form of Borrower's and Guarantors' Counsel's Opinion
Exhibit A-2....... Form of Administrative Agent's Counsel's Opinion
Exhibit B......... - Form of Compliance Certificate
Exhibit C......... - Form of Assignment Agreement
Exhibit D......... - Form of Loan/Credit Related Money Transfer Instruction
Exhibit E......... - Form of Promissory Note (if requested)
Exhibit F......... - List of Closing Documents
Exhibit G......... - Form of Designation Agreement
Exhibit H......... - Form of Guaranty
Exhibit I......... - Form of Commitment and Acceptance
SCHEDULES
Pricing Schedule
Commitment Schedule
Schedule 2.21..... - Existing Letters of Credit
Schedule 5.8...... - Subsidiaries
Schedule 5.16..... - Environmental Matters
Schedule 6.15..... - Existing Investments
Schedule 6.16..... - Existing Liens
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3-YEAR REVOLVING CREDIT AGREEMENT
This 3-Year Revolving Credit Agreement, dated as of November 5, 2001, is
among APPLEBEE'S INTERNATIONAL, INC., the institutions from time to time parties
hereto as Lenders (whether by execution of this Agreement or an assignment
pursuant to Section 12.3), BANK ONE, NA, a national banking association having
its principal office in Chicago, Illinois, as Swing Line Lender, LC Issuer and
Administrative Agent, SUNTRUST BANK and U.S. BANK NATIONAL ASSOCIATION, as
Syndication Agents, and BANK OF AMERICA, N.A. and FLEET NATIONAL BANK, as
Documentation Agents. The parties hereto agree as follows:
ARTICLE I
DEFINITIONS
1.1. Certain Defined Terms. As used in this Agreement:
"Accounting Changes" is defined in Section 9.8 hereof.
"Acquisition" means any transaction, or any series of related
transactions, consummated on or after the date of this Agreement, by which the
Borrower or any of its Subsidiaries (i) acquires any going business or all or
substantially all of the assets of any Person, or division thereof, whether
through purchase of assets, merger or otherwise or (ii) directly or indirectly
acquires (in one transaction or as the most recent transaction in a series of
transactions) at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors
(other than securities having such power only by reason of the happening of a
contingency) or a majority (by percentage of voting power) of the outstanding
ownership interests of a partnership or limited liability company.
"Administrative Agent" means Bank One in its capacity as contractual
representative of the Lenders pursuant to Article X, and not in its individual
capacity as a Lender, and any successor Administrative Agent appointed pursuant
to Article X.
"Advance" means a borrowing hereunder consisting of the aggregate
amount of several Loans (i) made by some or all of the Lenders on the same
Borrowing Date, or (ii) converted or continued by the Lenders on the same date
of conversion or continuation, consisting, in either case, of the aggregate
amount of the several Loans of the same Type and, in the case of Eurodollar
Loans, for the same Interest Period. The term "Advance" shall include Swing Line
Loans unless otherwise expressly provided.
"Affected Lender" is defined in Section 2.20.
"Affiliate" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person is the
"beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of ten percent (10%) or more of any class of voting securities (or
other voting interests) of the controlled Person or possesses, directly or
indirectly, the power to direct or cause the direction of the management or
policies of the controlled Person, whether through ownership of voting
securities, by contract or otherwise. Notwithstanding the previous sentence, any
institutional investors who purchase their interest in the Borrower in a public
market shall not be considered Affiliates of the Borrower.
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"Agent" means any of the Administrative Agent, the Syndication Agents
and the Documentation Agents, as appropriate, and "Agents" means, collectively,
the Administrative Agent, the Syndication Agents and the Documentation Agents.
"Aggregate Commitment" means the aggregate of the Commitments of all
the Lenders, as may be adjusted from time to time pursuant to the terms hereof.
The initial Aggregate Commitment is $150,000,000.
"Aggregate Outstanding Credit Exposure" means, at any time, the
aggregate of the Outstanding Credit Exposure of all the Lenders.
"Agreement" means this 3-Year Revolving Credit Agreement, as it may be
amended, restated, supplemented or otherwise modified and as in effect from time
to time.
"Agreement Accounting Principles" means generally accepted accounting
principles as in effect in the United States from time to time, applied in a
manner consistent with that used in preparing the financial statements of the
Borrower referred to in Section 5.4; provided, however, that except as provided
in Section 9.8, with respect to the calculation of financial ratios and other
financial tests required by this Agreement, "Agreement Accounting Principles"
means generally accepted accounting principles as in effect in the United States
as of the date of this Agreement, applied in a manner consistent with that used
in preparing the financial statements of the Borrower referred to in Section 5.4
hereof.
"Alternate Base Rate" means, for any day, a rate of interest per annum
equal to the higher of (i) the Prime Rate for such day and (ii) the sum of (a)
the Federal Funds Effective Rate for such day and (b) one-half of one percent
(0.5%) per annum.
"Applicable Fee Rate" means, at any time, the percentage rate per annum
at which Commitment Fees are accruing on the unused portion of the Aggregate
Commitment at such time as set forth in the Pricing Schedule.
"Applicable Margin" means, with respect to Advances of any Type at any
time, the percentage rate per annum which is applicable at such time with
respect to Advances of such Type as set forth in the Pricing Schedule.
"Arranger" means Banc One Capital Markets, Inc., a Delaware
corporation, and its successors, in its capacity as Lead Arranger and Sole Book
Runner.
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"Article" means an article of this Agreement unless another document is
specifically referenced.
"Assignment Agreement" is defined in Section 12.3.1.
"Authorized Officer" means any of the chief executive officer, chief
financial officer, chief accounting officer or treasurer of the Borrower, acting
singly.
"Available Aggregate Commitment" means, at any time, the Aggregate
Commitment then in effect minus the Aggregate Outstanding Credit Exposure at
such time.
"Bank One" means Bank One, NA, a national banking association having
its principal office in Chicago, Illinois, in its individual capacity, and its
successors.
"Borrower" means Applebee's International, Inc., a Delaware
corporation, and its permitted successors and assigns (including, without
limitation, a debtor-in-possession on its behalf).
"Borrowing Date" means a date on which an Advance is made hereunder.
"Borrowing Notice" is defined in Section 2.9.1.
"Business Day" means (i) with respect to any borrowing, payment or rate
selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on
which banks are not authorized or required to close in Chicago, Illinois or New
York City for the conduct of substantially all of their commercial lending
activities, interbank wire transfers can be made on the Fedwire system and
dealings in United States dollars are carried on in the London interbank market
and (ii) for all other purposes, a day (other than a Saturday or Sunday) on
which banks are not authorized or required to close in Chicago, Illinois or New
York City for the conduct of substantially all of their commercial lending
activities and interbank wire transfers can be made on the Fedwire system.
"Buying Lender" is defined in Section 2.6.3(ii).
"Capital Expenditures" means, without duplication, any expenditures for
any purchase or other acquisition of any asset which would be classified as a
fixed or capital asset on a consolidated balance sheet of the Borrower and its
Subsidiaries prepared in accordance with Agreement Account Principles, excluding
(i) Permitted Acquisitions, (ii) expenditures of insurance proceeds to rebuild
or replace any asset after a casualty loss and (iii) leasehold improvement
expenditures for which the Borrower or a Subsidiary is reimbursed promptly by
the lessor.
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"Capitalized Lease" of a Person means any lease of Property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.
"Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.
"Capital Stock" means (i) in the case of a corporation, corporate
stock, (ii) in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership, partnership
interests (whether general or limited) and (iv) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person.
"Cash Equivalent Investments" means, as to any Person, (i) securities
issued or directly and fully guaranteed or insured by the United States or any
agency or instrumentality thereof (provided that the full faith and credit of
the United States is pledged in support thereof) having maturities of not more
than one year from the date of acquisition, (ii) time deposits and certificates
of deposit of any investment grade commercial bank having, or which is the
principal banking subsidiary of an investment grade bank holding company
organized under the laws of the United States, any State thereof, the District
of Columbia or any foreign jurisdiction having capital, surplus and undivided
profits aggregating in excess of $500,000,000, with maturities of not more than
one year from the date of acquisition by such Person, (iii) repurchase
obligations with a term of not more than ninety (90) days for underlying
securities of the types described in clause (i) above entered into with any bank
meeting the qualifications specified in clause (ii) above, provided that such
repurchase obligations are secured by a first priority security interest in such
underlying securities which have, on the date of purchase thereof, a fair market
value of at least 100% of the amount of the repurchase obligations, (iv)
commercial paper issued by any Person incorporated in the United States rated at
least A-1 by S&P or P-1 by Moody's and in each case maturing not more than 270
days after the date of acquisition by such Person, (v) investments in money
market funds substantially all of the