Ex-10.37
GUARANTY
This GUARANTY is made as of the 25th
day of September 2006 by Bertucci’s Corporation, a Delaware
corporation (the “ Guarantor ”), in favor and
for the benefit of BUCA, Inc., a Minnesota corporation (the “
Creditor ”).
WHEREAS, the Creditor, BUCA
Restaurants 3, Inc. (the “ Company ”), Vinny
T’s Acquisition Corporation (the “ Debtor
”) and the Guarantor entered into that certain Stock Purchase
Agreement dated as of September 25, 2006 (the “ Stock
Purchase Agreement ”) whereby the Debtor will acquire all
of the issued and outstanding capital stock of the Company from the
Creditor (the “ Transaction ”);
WHEREAS, pursuant to the terms of
the Stock Purchase Agreement on the Closing Date (as defined in the
Stock Purchase Agreement), the Debtor will issue to the Creditor a
Promissory Note in the original principal amount of $3,800,000.00
(the “ Promissory Note ”);
WHEREAS, as a condition to the
consummation of the Transaction, the Creditor has required that the
Guarantor execute and deliver this Guaranty to the Creditor;
and
WHEREAS, the Guarantor desires to
see the Transaction consummated and is willing to execute and
deliver this Guaranty to the Creditor.
NOW THEREFORE, in consideration of
the consummation of the Transaction and other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the Guarantor unconditionally guarantees full and
prompt payment and due performance of all Obligations (as hereafter
defined) of the Debtor to the Creditor, its successors and assigns,
as herein provided.
Section
1.
Obligations Guaranteed.
This Guaranty is a guaranty of the
prompt payment and performance of all indebtedness, liabilities and
obligations of the Debtor to the Creditor, whether absolute or
contingent, due or to become due, now existing or hereafter
arising, under the Promissory Note, the Stock Purchase Agreement
and any other document, instrument or agreement now or hereafter
entered into supplementary thereto (the “ Obligations
”).
Section
2.
Nature of Liability.
The liability of the Guarantor
hereunder is direct, unconditional and continuing until
terminated in accordance with Section 10 hereof. It is a
guaranty of payment and performance and not of collection only, and
may be enforced without requiring the Creditor to resort to any
other person or entity (including, without limitation, the Debtor),
right, remedy or collateral. If for any reason any Obligation
shall not be paid or discharged promptly when due, the Guarantor
will forthwith pay or discharge such Obligation without regard to
any counterclaim, set-off,
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deduction or defense of any kind
which the Debtor or the Guarantor may have or assert, and without
abatement, suspension, deferment or reduction on account of any
occurrence whatsoever, provided however , that,
notwithstanding any other provision of this Guaranty, this third
sentence of Section 2 shall not apply if the Debtor or the
Guarantor has a counterclaim, set-off, deduction or defense in
connection with any breach of a representation, warranty, covenant
or agreement of the Creditor under the Stock Purchase Agreement or
any Ancillary Agreement (as defined in the Stock Purchase
Agreement).
Section
3.
Expenses.
If the Creditor incurs any costs,
expenses and/or attorneys’ fees to collect under or enforce
this Guaranty and the Creditor is successful in collecting under or
enforcing this Guaranty, the Guarantor hereby agrees to pay to
Creditor, in addition to the Obligations, all reasonable costs,
expenses and attorneys’ fees at any time paid or incurred by
the Creditor in endeavoring to collect under or enforce this
Guaranty, the Obligations or the underlying documents
evidencing the Obligations.
Section 4.
Limitation of Liability.
Notwithstanding anything in this
Guaranty, the Stock Purchase Agreement or the Promissory Note to
the contrary, the maximum liability of the Guarantor hereunder
shall be the Purchase Price (as defined in the Stock Purchase
Agreement), plus any reasonable costs, expenses and/or
attorneys’ fees owed under Section 3 of this
Guaranty.
Section
5.
Event of Default.
If there shall occur an Event of
Default (as defined in the Promissory Note), then all payment
Obligations under the Promissory Note shall, at the option of the
Creditor, immediately become due and payable as though such
Obligations had matured by their terms.
Section
6.
Consent.
The Guarantor agrees to the
provisions of any instrument or other writing evidencing or
securing the Obligations. The Guarantor hereby expressly
consents to the making, from time to time, and without any notice
to the Guarantor, of such extensions, renewals,
modifications, indulgences, postponements, settlements and
compromises as the Creditor and the Debtor may deem proper with
respect to any of the Obligations covered by this Guaranty,
including the substitution, exchange, taking or releasing of any or
all security or collateral and surrendering of documents and
releasing of any party liable directly, indirectly or as guarantor,
all without regard to the consideration therefor, and all without
notice to the Guarantor. The enforcement of this Guaranty
shall not be affected by the neglect or failure of the Creditor to
take any action with respect to any security, right, obligation,
endorsement or guaranty which it may at any time hold.
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Section
7.
Waiver of Defenses.
(a)
The Guarantor waives the following: notice of incurring of
indebtedness and obligations by the Debtor; acceptance of this
Guaranty by the Creditor; presentm