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Acquisition Revolving Credit Agreement

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Exhibit 10.58


EXECUTION COPY
-------------- - --------------------------------------------------------------------------------


ACQUISITION REVOLVING CREDIT AGREEMENT


dated as of December 24, 1998


among


NATIONAL RESTAURANT ENTERPRISES, INC.,
AMERIKING, INC.


and


BANKBOSTON, N.A.
and those other lending institutions listed on Schedule 1 hereto
-------- -


and


BANKBOSTON, N.A., as Agent


with


BANCBOSTON ROBERTSON STEPHENS INC.,
acting as Arranger


- --------------------------------------------------------------------------------


TABLE OF CONTENTS


1. DEFINITIONS AND RULES OF INTERPRETATION..................................................................... 1
----------- --- ----- -- --------------
1.1. Definitions....................................................................................... 1
-----------
1.2. Rules of Interpretation........................................................................... 3
----- -- -------------- 2. THE REVOLVING CREDIT FACILITY............................................................................... 4
--- --------- ------ --------
2.1. Commitment to Lend................................................................................ 4
---------- -- ----
2.2. Commitment Fee.................................................................................... 5
---------- ---
2.3. Reduction of Total Commitment..................................................................... 5
--------- -- ----- ----------
2.3.1. Right of Borrower......................................................................... 5
----- -- --------
2.3.2. Automatic Reductions...................................................................... 5
--------- ----------
2.4. The Revolving Credit Notes........................................................................ 5
--- --------- ------ -----
2.5. Interest on Revolving Credit Loans................................................................ 6
-------- -- --------- ------ -----
2.6. Requests for Revolving Credit Loans............................................................... 6
-------- --- --------- ------ -----
2.7. Conversion Options................................................................................ 7
---------- -------
2.7.1. Conversion to Different Type of Revolving Credit Loan..................................... 7
---------- -- --------- ---- -- --------- ------ ----
2.7.2. Continuation of Type of Revolving Credit Loan............................................. 7
------------ -- ---- -- --------- ------ ----
2.7.3. Eurodollar Rate Loans..................................................................... 8
---------- ---- -----
2.8. Funds for Revolving Credit Loan................................................................... 8
----- --- --------- ------ ----
2.8.1. Funding Procedures........................................................................ 8
------- ----------
2.8.2. Advances by Agent......................................................................... 8
-------- -- ----- 3. REPAYMENT OF THE REVOLVING CREDIT LOANS..................................................................... 9
--------- -- --- --------- ------ -----
3.1. Maturity.......................................................................................... 9
--------
3.2. Mandatory Repayments of Revolving Credit Loans.................................................... 9
--------- ---------- -- --------- ------ -----
3.3. Optional Repayments of Revolving Credit Loans..................................................... 9
-------- ---------- -- --------- ------ ----- 4. [Intentionally omitted.].................................................................................... 10
------------- ------- 5. CERTAIN GENERAL PROVISIONS.................................................................................. 10
------- ------- ----------
5.1. Closing Fee....................................................................................... 10
------- ---
5.2. Agent's Fee....................................................................................... 10
------- ---
5.3. Funds for Payments................................................................................ 10
----- --- --------
5.3.1. Payments to Agent......................................................................... 10
-------- -- -----
5.3.2. No Offset, etc............................................................................ 10
-- ------- ---
5.4. Computations...................................................................................... 10
------------
5.5. Inability to Determine Eurodollar Rate............................................................ 11
--------- -- --------- ---------- ----
5.6. Illegality........................................................................................ 11
----------
5.7. Additional Costs, etc............................................................................. 11
---------- ------ ---
5.8. Capital Adequacy.................................................................................. 14
------- --------
5.9. Certificate....................................................................................... 14
-----------
5.10. Indemnity....................................................................................... 14
---------
5.11. Interest on Overdue Amounts..................................................................... 15
-------- -- ------- -------
5.12. Replacement Banks............................................................................... 15
----------- ----- 6. COLLATERAL SECURITY AND GUARANTEES.......................................................................... 15
---------- -------- --- ----------


-ii-


6.1. Security of Borrower and Subsidiaries; Guaranty of Subsidiaries.................... 16
-------- -- -------- --- ------------- -------- -- ------------
6.2. Guaranties and Security of Holdings................................................ 16
---------- --- -------- -- -------- 7. REPRESENTATIONS AND WARRANTIES............................................................... 17
--------------- --- ---------- 8. AFFIRMATIVE COVENANTS........................................................................ 17
----------- --------- 9. CERTAIN NEGATIVE COVENANTS................................................................... 17
------- -------- --------- 10. FINANCIAL COVENANTS......................................................................... 18
--------- --------- 11. CLOSING CONDITIONS.......................................................................... 18
------- ---------- 12. CONDITIONS TO ALL BORROWINGS................................................................ 18
---------- -- --- ----------
12.1. Representations True; No Event of Default......................................... 18
--------------- ---- -- ----- -- -------
12.2. No Legal Impediment............................................................... 18
-- ----- ----------
12.3. Governmental Regulation........................................................... 19
------------ ----------
12.4. Proceedings and Documents......................................................... 19
----------- --- ---------
12.5. Acquisition Documents............................................................. 19
----------- ---------
12.6. Pro Forma Compliance.............................................................. 19
--- ----- ----------
12.7. Use of Proceeds................................................................... 19
--- -- --------
12.8. Disbursement Instructions......................................................... 19
------------ ------------
12.9. Incurrence Test................................................................... 19
---------- ---- 13. EVENTS OF DEFAULT; ACCELERATION; ETC........................................................ 19
------ -- -------- ------------- ---
13.1. Events of Default and Acceleration................................................ 19
------ -- ------- --- ------------
13.2. Termination of Commitments........................................................ 20
----------- -- -----------
13.3. Remedies.......................................................................... 20
--------
13.4. Distribution of Collateral Proceeds............................................... 20
------------ -- ---------- -------- 14. SETOFF...................................................................................... 21
------ 15. THE AGENT................................................................................... 22
--- -----
15.1. Authorization..................................................................... 22
-------------
15.2. Employees and Agents.............................................................. 22
--------- --- ------
15.3. No Liability...................................................................... 23
-- ---------
15.4. No Representations................................................................ 23
-- ---------------
15.5. Payments.......................................................................... 23
--------
15.5.1. Payments to Agent........................................................ 23
-------- -- -----
15.5.2. Distribution by Agent.................................................... 24
------------ -- -----
15.5.3. Delinquent Banks......................................................... 24
---------- -----
15.6. Holders of Revolving Credit Notes................................................. 24
------- -- --------- ------ -----
15.7. Indemnity......................................................................... 24
---------
15.8. Agent as Bank..................................................................... 25
----- -- ----
15.9. Resignation....................................................................... 25
-----------
15.10. Notification of Defaults and Events of Default................................... 25
------------ -- -------- --- ------ -- -------
15.11. Duties in the Case of Enforcement................................................ 25
------ -- --- ---- -- ----------- 16. EXPENSES.................................................................................... 26
-------- 17. INDEMNIFICATION............................................................................. 26
---------------- 18. SURVIVAL OF COVENANTS, ETC.................................................................. 26
-------- -- ---------- --- 19. ASSIGNMENT AND PARTICIPATION................................................................ 27
---------- --- -------------
19.1. Conditions to Assignment by Banks................................................. 27
---------- -- ---------- -- -----


-iii-


19.2. Certain Representations and Warranties; Limitations; Covenants...................... 27
------- --------------- --- ----------- ------------ ---------
19.3. Register............................................................................ 29
--------
19.4. New Revolving Credit Notes.......................................................... 29
--- --------- ------ -----
19.5. Participations...................................................................... 29
--------------
19.6. Disclosure.......................................................................... 30
----------
19.7. Assignee or Participant Affiliated with the Borrower................................ 30
-------- -- ----------- ---------- ---- --- --------
19.8. Miscellaneous Assignment Provisions................................................. 30
------------- ---------- ----------
19.9. Assignment by Borrower.............................................................. 31
---------- -- -------- 20. NOTICES, ETC.................................................................................. 31
-------- --- 21. GOVERNING LAW................................................................................. 31
--------- --- 22. HEADINGS...................................................................................... 32
-------- 23. COUNTERPARTS.................................................................................. 32
------------ 24. ENTIRE AGREEMENT, ETC......................................................................... 32
------ ---------- --- 25. WAIVER OF JURY TRIAL.......................................................................... 32
------ -- ---- ----- 26. CONSENTS, AMENDMENTS, WAIVERS, ETC............................................................ 33
--------- ----------- -------- --- 27. SEVERABILITY.................................................................................. 33
------------ 28. SURVIVAL OF REVOLVER CREDIT AGREEMENT......................................................... 33
-------- -- -------- ------ ---------


EXHIBITS
--------


Exhibit A Form of Revolving Credit Note
Exhibit B Form of Revolving Credit Loan Request
Exhibit C Form of Assignment and Acceptance
Exhibit D Exemption Certificate


SCHEDULES
---------


Schedule 1 Commitments


ACQUISITION REVOLVING CREDIT AGREEMENT
----------- --------- ------ ---------


This ACQUISITION REVOLVING CREDIT AGREEMENT is made as of December 24, 1998, by and among AMERIKING, INC. ("Holdings"), a Delaware corporation, NATIONAL RESTAURANT ENTERPRISES, INC. (the "Borrower"), a Delaware corporation having its principal place of business at 2215 Enterprise Drive, Suite 1502, Westchester, Illinois 60154 and BANKBOSTON, N.A., a national banking association and the other lending institutions listed on Schedule 1 and BANKBOSTON, N.A. as
-------- - agent for itself and such other lending institutions.


1. DEFINITIONS AND RULES OF INTERPRETATION.
----------- --- ----- -- --------------


1.1. Definitions. Capitalized terms used herein without definition and
----------- defined in the Revolver Credit Agreement shall have the meanings set forth in the Revolver Credit Agreement. The following terms shall have the meanings set forth in this (S)1 or elsewhere in the provisions of this Credit Agreement referred to below:


Acquisition Loan Documents. This Credit Agreement and the Revolving Credit
----------- ---- --------- Notes.


Affected Bank. See (S)5.12 hereof.
-------- ----


Agent's Fee. See (S)5.2 hereof.
------- ---


Assignment and Acceptance. See (S)19.1 hereof.
---------- --- ----------


Banks. BKB and the other lending institutions listed on Schedule 1 hereto
----- -------- - and any other Person who becomes an assignee of any rights and obligations of a Bank pursuant to (S)19.


Base Rate Loans. Revolving Credit Loans bearing interest calculated by
---- ---- ----- reference to the Base Rate.


Borrower. As defined in the preamble hereto.
--------


Commitment. With respect to each Bank, the amount set forth on Schedule 1
---------- -------- - hereto as the amount of such Bank's commitment to make Revolving Credit Loans to the Borrower, as the same may be reduced from time to time; or if such commitment is terminated pursuant to the provisions hereof, zero.


Commitment Percentage. With respect to each Bank, the percentage set forth
---------- ---------- on Schedule 1 hereto as such Bank's percentage of the aggregate Commitments of
-------- - all of the Banks.


Conversion Request. A notice given by the Borrower to the Agent of the
---------- ------- Borrower's election to convert or continue a Revolving Credit Loan in accordance with (S)2.7.


Credit Agreement. This Acquisition Revolving Credit Agreement, including
------ --------- the Schedules and Exhibits hereto.


-2-


Default. See (S)13.1 hereof.
-------


Delinquent Bank. See (S)15.5.3 hereof.
---------- ----


Drawdown Date. The date on which any Revolving Credit Loan is made or is
-------- ---- to be made, and the date on which any Revolving Credit Loan is converted or continued in accordance with (S)2.7.


Event of Default. See (S)13.1 hereof.
----- -- -------


Holdings. As defined in the preamble thereto.
--------


Interest Payment Date. (a) As to any Base Rate Loan, the last day of the
-------- ------- ---- calendar quarter which includes the Drawdown Date thereof; and (b) as to any Eurodollar Rate Loan in respect of which the Interest Period is (i) 3 months or less, the last day of such Interest Period and (ii) more than 3 months, the date that is 3 months from the first day of such Interest Period and, in addition, the last day of such Interest Period.


Interest Period. With respect to each Revolving Credit Loan (a) initially,
-------- ------ the period commencing on the Drawdown Date of such Revolving Credit Loan and ending on the last day of one of the periods set forth below, as selected by the Borrower in a Loan Request (i) for any Base Rate Loan, the last day of the calendar quarter; and (ii) for any Eurodollar Rate Loan, 1, 2, 3, or 6 months; and (b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such Revolving Credit Loan and ending on the last day of one of the periods set forth above, as selected by the Borrower in a Conversion Request; provided that all of the foregoing provisions relating to
-------- Interest Periods are subject to the following:


(i) if any Interest Period with respect to a Eurodollar Rate Loan
would otherwise end on a day that is not a Eurodollar Business Day, that
Interest Period shall be extended to the next succeeding Eurodollar
Business Day unless the result of such extension would be to carry such
Interest Period into another calendar month, in which event such Interest
Period shall end on the immediately preceding Eurodollar Business Day;


(ii) if any Interest Period with respect to a Base Rate Loan would
end on a day that is not a Business Day, that Interest Period shall end on
the next succeeding Business Day;


(iii) if the Borrower shall fail to give notice as provided in
(S)2.7, the Borrower shall be deemed to have requested a conversion of the
affected Eurodollar Rate Loan to a Base Rate Loan and the continuance of
all Base Rate Loans as Base Rate Loans on the last day of the then current
Interest Period with respect thereto;


(iv) any Interest Period relating to any Eurodollar Rate Loan that
begins on the last Eurodollar Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month
at the end of


-3-


such Interest Period) shall end on the last Eurodollar Business Day of a
calendar month; and


(v) any Interest Period relating to any Eurodollar Rate Loan that
would otherwise extend beyond the Revolving Credit Loan Maturity Date shall
end on the Revolving Credit Loan Maturity Date.


Loan Documents. The Acquisition Loan Documents and the Revolver Loan
---- --------- Documents.


Loan Request. See (S)2.6 hereof.
---- -------


outstanding. With respect to the Revolving Credit Loans, the aggregate
----------- unpaid principal thereof as of any date of determination.


Record. The grid attached to a Revolving Credit Note, or the continuation
------ of such grid, or any other similar record, including computer records, maintained by any Bank with respect to any Revolving Credit Loan referred to in such Revolving Credit Note.


Revolver Credit Agreement. The Fourth Amended and Restated Credit
-------- ------ --------- Agreement dated as of the date hereof among the parties hereto and as may be amended from time to time.


Revolver Loans. "Revolving Credit Loans" as defined in the Revolver Credit
-------- ----- Agreement.


Revolver Notes. The "Revolving Credit Notes" as defined in the Revolver
-------- ----- Credit Agreement.


Revolver Outstandings. The aggregate unpaid principal amount of Revolver
-------- ------------ Loans.


Revolver Total Commitment. The "Total Commitment" as defined in the
-------- ----- ---------- Revolver Credit Agreement.


Revolving Credit Loans. Revolving credit loans made or to be made by the
--------- ------ ----- Banks to the Borrower pursuant to (S)2.


Revolving Credit Notes. See (S)2.4 hereof.
--------- ------ -----


Total Commitment. The sum of the Commitments of the Banks, as in effect
----- ---------- from time to time.


1.2. Rules of Interpretation.
----- -- --------------


(a) A reference to any document or agreement shall include such
document or agreement as amended, modified or supplemented from time to
time in accordance with its terms and the terms of this Credit Agreement.


-4-


(b) The singular includes the plural and the plural includes the
singular.


(c) A reference to any law includes any amendment or modification to
such law.


(d) A reference to any Person includes its permitted successors and
permitted assigns.


(e) Accounting terms not otherwise defined herein have the meanings
assigned to them by generally accepted accounting principles applied on a
consistent basis by the accounting entity to which they refer.


(f) The words "include", "includes" and "including" are not limiting.


(g) All terms not specifically defined herein or by generally
accepted accounting principles, which terms are defined in the Uniform
Commercial Code as in effect in the Commonwealth of Massachusetts, have the
meanings assigned to them therein, with the term "instrument" being that
defined under Article 9 of the Uniform Commercial Code.


(h) Reference to a particular "(S)" refers to that section of this
Credit Agreement unless otherwise indicated.


(i) The words "herein", "hereof", "hereunder" and words of like
import shall refer to this Credit Agreement as a whole and not to any
particular section or subdivision of this Credit Agreement.


2. THE REVOLVING CREDIT FACILITY.
--- --------- ------ --------


2.1. Commitment to Lend. Subject to the terms and conditions set forth in
---------- -- ---- this Credit Agreement (including, but not limited to those requirements set forth in (S)2.6 below), each of the Banks severally agrees to lend to the Borrower and the Borrower may borrow, repay, and reborrow from time to time between the Closing Date and the Revolving Credit Loan Maturity Date upon notice by the Borrower to the Agent given in accordance with (S)2.6, such sums as are requested by the Borrower up to a maximum aggregate amount outstanding (after giving effect to all amounts requested) at any one time equal to such Bank's Commitment, provided that the sum of the outstanding amount of the Revolving
-------- Credit Loans (after giving effect to all amounts requested) shall not at any time exceed the Total Commitment. The Revolving Credit Loans shall be made pro rata in accordance with each Bank's Commitment Percentage. Each request for a Revolving Credit Loan hereunder shall constitute a representation and warranty by the Borrower that the conditions set forth in (S)11 and (S)12, in the case of the initial Revolving Credit Loans to be made on the Closing Date, and (S)12, in the case of all other Revolving Credit Loans, have been satisfied on the date of such r
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