Exhibit 10.1

 

AMENDMENT NUMBER ONE

TO CREDIT AGREEMENT AND WAIVER

 

This AMENDMENT NUMBER ONE TO CREDIT AGREEMENT AND WAIVER (this “Amendment”) is
entered into as of April 15, 2005, by the lenders identified on the signature
pages hereof (the “Lenders”), WELLS FARGO FOOTHILL, INC., a California
corporation, as the arranger and administrative agent for the Lenders (in such
capacity, together with its successors and assigns, if any, in such capacity,
“Agent”; and together with the Lenders, the “Lender Group”), BUCA, INC., a
Minnesota corporation (“Parent”), and each of Parent’s Subsidiaries identified
on the signature pages hereof (such Subsidiaries, together with Parent, are
referred to hereinafter each individually as a “Borrower”, and individually and
collectively, jointly and severally, as the “Borrowers”), with reference to the
following:

 

WHEREAS, Borrowers and the Lender Group are parties to that certain Credit
Agreement, dated as of November 15, 2004 (as amended, restated, supplemented, or
otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, the Parent has informed the Lender Group that (a) it intends to restate
its financial statements for fiscal years 2000 through 2003, for the first three
fiscal quarters of fiscal year 2004 and for the November 2004 monthly fiscal
period (the “Superceded Financial Statements”) to correct for errors in the
application of existing generally accepted accounting principles and for other
reasons previously disclosed to the Lender Group, and has prepared new
Projections in light of such anticipated restatements and changes in outlook for
the Borrowers and their Subsidiaries, copies of which new Projections (the “New
Projections”) were delivered to the Lender Group on March 2, 2005, and (b) the
Superceded Financial Statements and the Projections delivered to the Lender
Group prior to March 2, 2005 (the “Superceded Projections”) should no longer be
relied upon;

 

WHEREAS, the following unwaived Events of Default have occurred and are
continuing under the Credit Agreement (the “Existing Events of Default”):

 

(a) Borrowers failed to maintain or achieve EBITDA, measured on a quarter-end
basis, of at least $4,700,000 for the 3 month period ending December 26, 2004 as
required by Section 6.16(a)(i) of the Credit Agreement;

 

(b) Borrowers failed to maintain or achieve a Fixed Charge Coverage Ratio,
measured on a quarter-end basis, of at least 2.25:1.0 for the 3 month period
ending December 26, 2004 as required by Section 6.16(a)(ii) of the Credit
Agreement;

 

(c) Borrowers have not satisfied on a timely basis the covenant set forth in
Section 5.16 of the Credit Agreement with respect to BUCA (Minneapolis), Inc., a
newly formed Subsidiary of BUCA Restaurants 2, Inc.;

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(d) Borrowers have not satisfied the conditions subsequent set forth in Sections
3.3(g) and 3.3(h) of the Credit Agreement within the time periods required
thereby;

 

(e) Borrowers have failed to maintain a system of accounting that enables them
to produce financial statements in accordance with GAAP as required by Section
5.1 of the Credit Agreement;

 

(f) Borrowers have disposed of the parcel of Real Property in Tuscany, Italy
during the continuance of an Event of Default in violation of Sections 6.3(c)
and 6.4 of the Credit Agreement;

 

(g) Borrowers and their Subsidiaries have made certain intercompany
distributions and/or have repaid certain intercompany debt during the
continuance of an Event of Default in violation of Section 4 of the Intercompany
Subordination Agreement and in violation of Section 6(h)(ii) of the Security
Agreement;

 

(h) Borrowers and their Subsidiaries have failed to deliver to Agent, with a
copy to each Lender: (i) audited financial statements and the related Compliance
Certificate required by Section 5.3 of the Credit Agreement for fiscal year 2004
within 90 days after the end of such fiscal year, (ii) the quarterly reports
required by Section 5.2 of the Credit Agreement for the fourth fiscal quarter of
fiscal year 2004 within 45 days after the end of such fiscal quarter, (iii)
unaudited financial statements and the other monthly reports required by Section
5.3 of the Credit Agreement for the December 2004, January 2005 and February
2005 monthly fiscal periods within 30 days (or 45 days, as the case may be)
after the end of such monthly fiscal periods, and (iv) the monthly reports
required by Section 5.2 of the Credit Agreement for the December 2004, January
2005, February 2005 and March 2005 monthly fiscal periods within 10 days after
the end of such monthly fiscal periods; and

 

(i) The representations regarding the Superceded Financial Statements and the
Superceded Projections contained in Sections 4.11 and 4.18 of the Credit
Agreement are incorrect.

 

WHEREAS, Borrowers have requested that the Lender Group agree to amend the
Credit Agreement and waive the Existing Events of Default, as set forth herein;
and

 

WHEREAS, subject to the terms and conditions set forth herein, the Lender Group
is willing to make the amendments and grant the waiver requested by Borrowers.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

 

1. Defined Terms. Capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed to them in the Credit Agreement, as amended
hereby.

 

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2. Amendments to Credit Agreement.

 

(a) Section 2.6(a)(iii) of the Credit Agreement is hereby deleted and amended
and restated in its entirety as follows:

 

“(iii) if the relevant Obligation is the Term Loan B, (A) during the period from
and including the Closing Date through and including January 31, 2005, at a per
annum rate equal to the Base Rate plus 4.75 percentage points, and (B) during
the period from and including February 1, 2005 through and including the
Maturity Date, at a per annum rate equal to the Base Rate plus 6.75 percentage
points; provided that, commencing with the fiscal quarter ending March 26, 2006,
if TTM EBITDA of Borrowers is greater than $12,400,000 as of the end of any
fiscal quarter, the per annum rate shall be equal to the Base Rate plus 5.75
percentage points during the period from and including the first day of the
fiscal quarter immediately following such fiscal quarter through and including
the Maturity Date, and”

 

(b) Section 3.3(g) of the Credit Agreement is hereby amended by (i) deleting
“within 90 days of the Closing Date,” from the first line thereof and replacing
it with “on or before April 30, 2005,” and (ii) adding the following immediately
after the first proviso thereof:

 

“provided further that, Administrative Borrower shall provide or cause to be
provided to Agent and Term Loan B Representative a weekly report setting forth
in, reasonable detail, Borrowers’ efforts in obtaining such third party consents
required to effect such transactions (including those of the Minneapolis City
Counsel and the landlord of the Minneapolis, Minnesota Restaurant);”

 

(c) [Intentionally Omitted]

 

(d) Section 5.1 of the Credit Agreement is hereby deleted and amended and
restated in its entirety as follows:

 

“5.1 Accounting System. Maintain at all times from and after June 26, 2005 a
system of accounting that enables Borrowers to produce financial statements in
accordance with GAAP and maintain records pertaining to the Collateral that
contain information as from time to time reasonably may be requested by Agent.”

 

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(e) Section 6.16(a)(i) of the Credit Agreement is hereby amended by deleting the
first 9 rows of the table set forth therein and replacing such rows with the
following:

 

Applicable Amount

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Applicable Period

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$ 1,900,000   the 3 month period ending March 27, 2005 $ 4,700,000   the 6 month
period ending June 26, 2005 $ 5,900,000   the 9 month period ending September
25,2005 $ 10,300,000   the 12 month period ending December 25, 2005 $ 10,600,000
  the 12 month period ending March 26, 2006 $ 10,800,000   the 12 month period
ending June 25, 2006 $ 11,200,000   the 12 month period ending September 24,
2006 $ 12,400,000   the 12 month period ending December 31, 2006

 

(f) Section 6.16(a)(ii) of the Credit Agreement is hereby amended by deleting
the first 9 rows of the table set forth therein and replacing such rows with the
following:

 

Applicable Ratio

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Applicable Period

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1.10:1.0   the 3 month period ending March 27, 2005 1.10:1.0   the 6 month
period ending June 26, 2005 .85:1.0   the 9 month period ending September 25,
2005 1.10:1.0   the 12 month period ending December 25, 2005 1.10:1.0   the 12
month period ending March 26, 2006 1.10:1.0   the 12 month period ending June
25, 2006 1.10:1.0   the 12 month period ending September 24, 2006 1.10:1.0   the
12 month period ending December 31, 2006

 

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(g) Section 7.7 of the Credit Agreement is hereby deleted and amended and
restated in its entirety as follows:

 

“7.7 If one or more judgments, orders or awards (or any settlement of any claim
that, if breached, could result in a judgment, order or award) involving an
aggregate amount of $500,000, or more (except (a) to the extent fully covered by
insurance pursuant to which the insurer has accepted liability therefor in
writing, or (b) the settlement of the Class Action Lawsuit in an aggregate
amount not to exceed $2,800,000 (inclusive of legal fees and disbursements))
shall be entered or filed against any Borrower or any Subsidiary of a Borrower
or with respect to any of their respective assets, and the same is not released,
discharged, bonded against, or stayed pending appeal before the earlier of 30
days after the date it first arises or 5 days prior to the date on which such
asset is subject to being forfeited by the applicable Borrower or the applicable
Subsidiary;”

 

(h) Schedule 1.1 to the Credit Agreement is hereby amended by adding the
following definitions in proper alphabetical order:

 

““Class Action Lawsuit” means the lawsuit captioned Buca, Inc. adv. Tosto,
Bolton, Los Angeles Superior Court, Case number BC316879 and filed in the Orange
County Superior Court, California, on March 4, 2004 and subsequently transferred
to the Los Angeles Superior Court.”

 

““Common Stock Penalty” has the meaning set forth in the definition of
“EBITDA”.”

 

““D&O Costs” has the meaning set forth in the definition of “EBITDA”.”

 

““First Amendment” means Amendment Number One to Credit Agreement and Waiver
dated as of April 15, 2005 entered into by and among the Lenders, the Agent and
the Borrowers.”

 

““First Amendment Fees and Expenses” has the meaning set forth in the definition
of “EBITDA”.”

 

““Investigations” has the meaning set forth in that certain letter agreement
dated as of April 15, 2005 executed by the Lender Group in favor of the
Borrowers.”

 

““Investigations Expenses” has the meaning set forth in the definition of
“EBITDA”.”

 

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(i) Schedule 1.1 to the Credit Agreement is hereby amended by deleting the
definitions of “Borrowing Base”, “EBITDA”, and “TTM EBITDA” and restating such
definitions in their entirety as follows:

 

““Borrowing Base” means:

 

(a) As of any date of determination during the period from and including the
Closing Date through and including December 31, 2005 (other than with respect to
the period referenced in clause (b) of this definition), an amount equal to the
result of:

 

(i) the lesser of (A) (x) 2.75 times TTM EBITDA for the most recently ended 12
consecutive monthly periods for which financial statements have been delivered
pursuant to Section 5.3, minus (y) $20,000,000, and (B) (x) 60% of the most
recently determined Enterprise Value, minus (y) $20,000,000;

 

minus

 

(ii) the sum of (A) the Bank Product Reserve, and (B) the aggregate amount of
reserves, if any, established by Agent under Section 2.1(b).

 

(b) As of any date of determination during the period from and including January
1, 2006 through but excluding the Maturity Date, an amount equal to the result
of:

 

(i) the lesser of (A) (x) 2.50 times TTM EBITDA for the most recently ended 12
consecutive monthly periods for which financial statements have been delivered
pursuant to Section 5.3, minus (y) $20,000,000, and (B) (x) 60% of the most
recently determined Enterprise Value, minus (y) $20,000,000;

 

minus

 

(ii) the sum of (A) the Bank Product Reserve, and (B) the aggregate amount of
reserves, if any, established by Agent under Section 2.1(b).”

 

““EBITDA” means, with respect to any fiscal period, in each case as determined
in accordance with GAAP, Parent’s and its Subsidiaries’ consolidated net
earnings (or loss), minus extraordinary gains and interest income for such
period, plus:

 

(a) interest expense, income taxes, depreciation and amortization, and
Restaurant Pre-Opening Expenses for such period;

 

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(b) for the fourth fiscal quarter of fiscal year 2004 only: (i) lease
termination charges in an aggregate amount not to exceed $759,000 related to the
Charlotte, NC and Jenkintown, PA Restaurants, (ii) non-cash early termination of
debt charges in an aggregate amount not to exceed $1,724,000 incurred in
connection with transactions contemplated by the Agreement, (iii) charges
related to acceleration of a consulting fee owed to the previous owner of the
Vinny T’s of Boston Restaurants in an aggregate amount not to exceed $300,000,
(iv) transition expenses associated with the hiring of executive officers in an
aggregate amount not to exceed $300,000, (v) costs and expenses (including legal
fees and disbursements) incurred in connection with the settlement of a sexual
harassment claim in an aggregate amount not to exceed $182,000, and (vi) costs
and expenses (including legal fees and disbursements) incurred in connection
with the Class Action Lawsuit in an aggregate amount not to exceed $1,800,000;

 

(c) for the month of December in fiscal year 2004 only: (i) non-cash asset
impairment charges in an aggregate amount not to exceed $22,200,000 (consisting
of (A) $11,800,000 related to Vinny T’s of Boston Restaurants, (B) $135,000
related to obsolete CD and warehouse inventory, (C) $9,724,000 related to other
Restaurants (Tampa, Kansas City-Plaza, Dallas-Park Lane, Wynnewood, Denver,
Natick, Chicago-Clark Street, Des Moines and Houston-Buffalo Speedway), and (D)
$541,000 related to new Restaurant sites (Lakewood, Southhills, Fresno, Rancho
Mirage, Atlantic Station, Charlotte, Deerfield and Springfield)), (ii)
compensation expenses associated with stock options issued to consultants in
2004 in an aggregate amount not to exceed $4,100, and (iii) non-cash deferred
rent expense in an aggregate amount not to exceed $45,000;

 

(d) for fiscal year 2005 only: (i) non-cash asset impairment charges related to
the Long Beach, CA Restaurant in an aggregate amount not to exceed $400,000,
(ii) non-cash expenses that might be incurred in the event that the First
Amendment triggers extinguishment accounting for the Borrowers in accordance
with the proper application of GAAP, (iii) charges for amendment or waiver fees
paid to any member of the Lender Group in connection with the First Amendment
and for the payment or reimbursement of any costs or expenses incurred by

 

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any member of the Lender Group or the Borrowers in connection with the First
Amendment (the “First Amendment Fees and Expenses”), and (iv) additional costs
of D&O insurance above the original budgeted amount of $450,000 per year, in an
amount not to exceed $62,500 per month (the “D&O Costs”);

 

(e) for the months of April 2005 through and including February 2006 only, fees,
in an amount not to exceed $130,000 per month, paid to the holders of the common
Stock of the Parent purchased under that certain Securities Purchase Agreement
dated as of February 24, 2004 among the Parent and the investors named therein
for each month that such holders are not permitted to sell that Stock pursuant
to an effective registration statement (the “Common Stock Penalty”);

 

(f) for fiscal year 2005 through and including fiscal year 2006 only, legal fees
and disbursements incurred in connection with any of the Investigations, charges
relating to the reimbursement of witnesses in any of the Investigations, and
fees and disbursements of forensic accountants retained by the Borrowers in
connection with any of the Investigations, in an aggregate amount not to exceed
$1,000,000 (the “Investigations Expenses”); and

 

(g) for any fiscal year after fiscal year 2004 through and including fiscal year
2006, charges not to exceed $1,000,000 (inclusive of legal fees and
disbursements) in the aggregate for amounts, if any, in excess of the remaining
reserve therefor paid during such period under the settlement of the Class
Action Lawsuit;

 

provided that any reversal of charges set forth in the foregoing clauses (b)
through (g) shall not be included in EBITDA.”

 

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““TTM EBITDA” means, as of any date of determination, EBITDA of Parent and its
Subsidiaries for the 12 consecutive monthly fiscal periods most recently ended;
provided that for the monthly periods set forth in the below table, EBITDA shall
be the amount set forth in such table opposite thereto for the purposes of
calculating TTM EBITDA:

 

Applicable Monthly Fiscal Period

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  EBITDA

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  October, 2003   $ 26,000   November, 2003   $ 41,000   December, 2003   $
4,972,000   January, 2004   $ 754,000   February, 2004   $ 400,000   March, 2004
  $ 2,636,000   April, 2004   $ (526,000 ) May, 2004   $ 831,000   June, 2004  
$ 2,593,000   July, 2004   $ (212,000 ) August, 2004   $ 508,000  
September, 2004   $ 512,000   October, 2004   $ 455,000   November, 2004   $
(42,000 )

 

(j) The definition of “Excess Cash Flow” in Schedule 1.1 to the Credit Agreement
is hereby amended by deleting the “and” before “(D)” and the “and” before “(F)”
and adding the following before the period of such definition:

 

“, (G) for any fiscal year after fiscal year 2004 through and including fiscal
year 2006 only, amounts, not to exceed $2,800,000 (inclusive of legal fees and
disbursements) in the aggregate, paid in cash during such period under the
settlement of the Class Action Lawsuit, (H) for fiscal year 2005 through and
including fiscal year 2006 only, amounts, not to exceed $1,000,000 in the
aggregate, paid in cash during such period in respect of any Investigations
Expenses, (I) in the case of fiscal year 2005 only, (x) amounts paid in cash
during such period in respect of the First Amendment Fees and Expenses, and (y)
amounts, not to exceed $62,500 per month, paid in cash during such period in
respect of the D&O Costs, and (J) for fiscal years 2005 and 2006 only, amounts,
not to exceed $130,000 per month, paid in cash during the period from April 2005
through and including February 2006 in respect of the Common Stock Penalty”

 

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(k) The definition of “Permitted Dispositions” in Schedule 1.1 to the Credit
Agreement is hereby amended by (i) restating clauses (f) and (g) thereof in
their entirety to read as follows:

 

“(f) dispositions to plan participants in the KESOP (or their dependents or
permitted transferees), upon the exercise of options granted under the KESOP, of
(i) Investments made by Parent prior to the Closing Date to hedge its
obligations under the KESOP or options granted under the KESOP or (ii)
Investments made by Parent after the Closing Date that are permitted under
clause (e) of the definition of Permitted Investments, (g) dispositions of
Investments made by Parent prior to the Closing Date to hedge its obligations
under the KESOP or options granted under the KESOP, provided that the proceeds
of such dispositions are used by the Parent to make Investments permitted under
clause (e) of the definition of Permitted Investments,”

 

, and (ii) deleting the “and” before “(j)” and adding the following before the
period of such definition:

 

“, and (k) the sale or other disposition of the lease of the
Charlotte-University site.”

 

(l) Exhibit B-1 to the Credit Agreement is hereby deleted and amended and
restated in its entirety to read as set forth on Exhibit B-1 hereto.

 

3. Waiver. The Agent and each Lender hereby agree to waive, and hereby do waive,
the Existing Events of Default so long as: (a) the audited financial statements
of the Parent and its Subsidiaries and the related Compliance Certificate for
fiscal year 2004 are delivered to the Agent, with a copy to each Lender, on or
before August 31, 2005, (b) the Parent files with the SEC its Annual Report on
Form 10-K for fiscal year 2004 and its Quarterly Report on Form 10-Q for the
first fiscal quarter of fiscal year 2005 no later than August 31, 2005, (c)
copies of the restatements of the Superceded Financial Statements (other than
for the November 2004 monthly fiscal period) are delivered to the Agent, with a
copy to each Lender, no later than August 31, 2005, (d) copies of the quarterly
reports required by Section 5.2 of the Credit Agreement for the fourth fiscal
quarter of fiscal year 2004 are delivered to the Agent, with a copy to each
Lender, no later than 45 days after the end of the March 2005 monthly fiscal
period, and (e) copies of all unaudited financial statements and other monthly
reports required by Sections 5.2 and 5.3 of the Credit Agreement for the
December 2004, January 2005, February 2005 and March 2005 monthly fiscal periods
are delivered to Agent, with a copy to each Lender, no later than (subject to
the provisions of Section 4(e) hereof) 45 days after the end of the March 2005
monthly fiscal period.

 

4. Conditions Precedent to Amendment. The satisfaction of each of the following
shall constitute conditions precedent to the effectiveness of this Amendment
(the date of such effectiveness being herein called the “Amendment Effective
Date”) and each and every provision hereof:

 

(a) Agent shall have received this Amendment, duly executed by the parties
hereto, and the same shall be in full force and effect.

 

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(b) Agent shall have received a reaffirmation and consent substantially in the
form attached hereto as Exhibit A, duly executed and delivered by each
Guarantor.

 

(c) Borrowers shall have paid to Agent, for WFF’s sole and separate account, an
amendment fee of $100,000, which amendment fee shall be fully earned and paid in
full by charging such fee to Borrowers’ Loan Account on the Amendment Effective
Date.

 

(d) Borrowers shall have paid to Agent, for Ableco’s sole and separate account,
an amendment fee of $300,000, which amendment fee shall be fully earned and paid
in full by charging such fee to Borrowers’ Loan Account on the Amendment
Effective Date.

 

(e) Agent and Term Loan B Representative shall have received (i) copies of the
restatements of the Superceded Financial Statements for the November 2004
monthly fiscal period, (ii) unaudited consolidated income statements, balance
sheets and cash flow statements for the December monthly fiscal period in fiscal
year 2004 and the January and February monthly fiscal periods in fiscal year
2005, and (iii) certificates detailing TTM EBITDA for the 12 consecutive monthly
fiscal periods ended on the last day of each such period.

 

(f) The representations and warranties herein and in the Credit Agreement and
the other Loan Documents shall be true and correct in all material respects on
and as of the date hereof (but after giving effect to that certain letter
agreement dated as of the date hereof executed by the Lender Group in favor of
the Borrowers), as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date). For purposes
of determining satisfaction of this condition, no representations or warranties
shall be deemed to have been made under the Loan Documents regarding the
Superceded Financial Statements or the Superceded Projections.

 

(g) No Default or Event of Default (other than the Existing Events of Default
and any other Default or Event of Default that would exist but for the
provisions of that certain letter agreement dated as of the date hereof executed
by the Lender Group in favor of the Borrowers)) shall have occurred and be
continuing on the date hereof, nor shall result from the consummation of the
transactions contemplated herein.

 

(h) No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein shall have been issued and remain in force by any
Governmental Authority against any Borrower, any Guarantor, Agent, or any
Lender.

 

5. Limitation. Except as expressly amended, modified or waived under Sections 2
and 3 above, all of the representations, warranties, terms, covenants and
conditions under or of the

 

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Credit Agreement and any other Loan Document shall remain unwaived or unmodified
by the terms hereof and shall continue to be, and shall remain, in full force
and effect in accordance with their respective terms. The waiver set forth
herein shall be limited precisely as provided for herein, and shall not be
deemed to be a waiver of, amendment of, consent to or modification of any other
term, provision or Default or Event of Default under the Credit Agreement or of
any term of any other Loan Document, instrument or agreement referred to therein
or herein or of any further or, except as expressly set forth herein, future
transaction or action on the part of Borrowers that would require the consent of
the Agents and Lenders under the Credit Agreement or any other Loan Document.

 

6. Release. Each Borrower hereby waives, releases, remises and forever
discharges each member of the Lender Group, each of their respective Affiliates,
and each of their respective officers, directors, employees, and agents
(collectively, the “Releasees”), from any and all claims, demands, obligations,
liabilities, causes of action, damages, losses, costs and expenses of any kind
or character, known or unknown, past or present, liquidated or unliquidated,
suspected or unsuspected, which any Borrower ever had, or now has against any
such Releasee which relates, directly or indirectly, to the Credit Agreement or
any other Loan Document, or to any acts or omissions of any such Releasee with
respect to the Credit Agreement or any other Loan Document, or to the
lender-borrower relationship evidenced by the Loan Documents. As to each and
every claim released hereunder, each Borrower hereby represents that it has
received the advice of legal counsel with regard to the releases contained
herein, and having been so advised, each Borrower specifically waives the
benefit of the provisions of Section 1542 of the Civil Code of California which
provides as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

 

As to each and every claim released hereunder, each Borrower also waives the
benefit of each other similar provision of applicable federal or state law, if
any, pertaining to general releases after having been advised by its legal
counsel with respect thereto.

 

7. Costs and Expenses. Borrowers agree to pay all reasonable out-of-pocket costs
and expenses of each member of the Lender Group (including, without limitation,
the reasonable fees and disbursements of Navigant Consulting and outside counsel
to each member of the Lender Group) in connection with the preparation,
execution and delivery of this Amendment and the review of all documents
incidental thereto.

 

8. Representations and Warranties. Each Borrower represents and warrants to the
Lender Group that (a) the execution, delivery, and performance of this Amendment
and of the Credit Agreement, as amended hereby, (i) are within its corporate or
limited partnership powers, (ii) have been duly authorized by all necessary
corporate or limited partnership action on its part, and (iii) are not in
contravention of any law, rule, or regulation applicable to it, or any order,
judgment, decree, writ, injunction, or award of any arbitrator, court, or
Governmental Authority binding on it, or of the terms of its Governing
Documents, or of any material contract or

 

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undertaking to which it is a party or by which any of its properties may be
bound or affected; (b) this Amendment and the Credit Agreement, as amended
hereby, are legal, valid and binding obligations of each Borrower, enforceable
against each Borrower in accordance with their respective terms (except as
enforcement may be limited by equitable principles or by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors
rights generally); and (c) no Default or Event of Default has occurred and is
continuing on the date hereof or as of the date upon which the conditions
precedent set forth herein are satisfied (other than the Existing Events of
Default and any other Default or Event of Default that would exist but for the
provisions of that certain letter agreement dated as of the date hereof executed
by the Lender Group in favor of the Borrowers)..

 

9. Choice of Law. The validity of this Amendment, its construction,
interpretation and enforcement, the rights of the parties hereunder, shall be
determined under, governed by, and construed in accordance with the laws of the
State of New York.

 

10. Counterpart Execution. This Amendment may be executed in any number of
counterparts, all of which when taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Amendment by signing
any such counterpart. Delivery of an executed counterpart of this Amendment by
telefacsimile or electronic mail shall be equally as effective as delivery of an
original executed counterpart of this Amendment. Any party delivering an
executed counterpart of this Amendment by telefacsimile or electronic mail also
shall deliver an original executed counterpart of this Amendment, but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Amendment.

 

11. Effect on Loan Documents.

 

(a) The Credit Agreement and each of the other Loan Documents, as amended,
modified or waived hereby, shall be and remain in full force and effect in
accordance with their respective terms and hereby are ratified and confirmed in
all respects. The execution, delivery, and performance of this Amendment shall
not operate, except as expressly set forth herein, as a modification or waiver
of any right, power, or remedy of Agent or any Lender under the Credit Agreement
or any other Loan Document. The waivers, consents, and modifications herein are
limited to the specifics hereof, shall not apply with respect to any facts or
occurrences other than those on which the same are based, shall not excuse
future non-compliance with the Loan Documents, and shall not operate as a
consent to any further or other matter under the Loan Documents.

 

(b) Upon and after the effectiveness of this Amendment, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words
of like import referring to the Credit Agreement, and each reference in the
other Loan Documents to “the Credit Agreement”, “thereunder”, “therein”,
“thereof” or words of like import referring to the Credit Agreement, shall mean
and be a reference to the Credit Agreement as modified and amended hereby.

 

13

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(c) To the extent that any terms and conditions in any of the Loan Documents
shall contradict or be in conflict with any terms or conditions of the Credit
Agreement, after giving effect to this Amendment, such terms and conditions are
hereby deemed modified or amended accordingly to reflect the terms and
conditions of the Credit Agreement as modified or amended hereby.

 

(d) This Amendment is a Loan Document.

 

14

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12. Entire Agreement. This Amendment embodies the entire understanding and
agreement between the parties hereto with respect to the subject matter hereof
and supersedes any and all prior or contemporaneous agreements or understandings
with respect to the subject matter hereof, whether express or implied, oral or
written.

 

[signature page follows]

 

15

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IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date
first above written.

 

BUCA, INC.

a Minnesota corporation

By:

 

/s/ Wallace B. Doolin

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

Title:

 

Chairman, CEO, President

BUCA RESTAURANTS, INC.

a Minnesota corporation

By:

 

/s/ Wallace B. Doolin

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

Title:

 

Chairman, CEO, President

BUCA TEXAS RESTAURANTS, L.P.

a Texas limited partnership

By:

 

Buca Restaurants, Inc.,

its general partner

   

By:

 

/s/ Wallace B. Doolin

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

   

Title:

 

Chairman, CEO, President

BUCA RESTAURANTS 3, INC.

a Minnesota corporation

By:

 

/s/ Wallace B. Doolin

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

Title:

 

Chairman, CEO, President

BUCA (KANSAS), INC.

a Kansas corporation

By:

 

/s/ Wallace B. Doolin

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

Title:

 

Chairman, CEO, President

 

A-1

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

BUCA RESTAURANTS 2, INC.

a Minnesota corporation

By:

 

/s/ Wallace B. Doolin

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

Title:

 

Chairman, CEO, President

BUCA (MINNEAPOLIS), INC.

a Minnesota corporation

By:

 

/s/ Wallace B. Doolin

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

Title:

 

Chairman, CEO, President

WELLS FARGO FOOTHILL, INC.

a California corporation, as Agent and as a Lender

By:

 

/s/ Dena Seki

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

Title:

 

Vice President

ABLECO FINANCE LLC

a Delaware limited liability company, as a Lender,

on behalf of itself and its affiliate assigns

By:

 

/s/ Kevin Genda

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

Title:

 

SVP

 

A-2